FREE Real Estate Sales MCQ Question and Answers Flashcards

A buyer signs a purchase agreement that is contingent on obtaining financing within 30 days. If the buyer fails to secure a loan within the specified period, what is the most likely outcome?

Answer: The buyer may terminate the contract and receive their earnest money back

A financing contingency protects the buyer by allowing contract termination and return of earnest money if financing cannot be obtained within the stated timeframe.

Which of the following best describes the concept of 'commingling' in real estate?

Answer: Mixing client funds with a broker's personal or business funds

Commingling occurs when a broker illegally mixes client trust funds with their own personal or operating accounts, which violates fiduciary duties.

Under the Fair Housing Act, which of the following actions by a landlord would constitute illegal discrimination?

Answer: Refusing to rent to a tenant with children under 18 in a non-exempt property

The Fair Housing Act prohibits discrimination based on familial status, which includes refusing to rent to families with children under 18, unless the property qualifies as housing for older persons.

A property listed at $400,000 sells for $380,000. The listing agreement specifies a 6% commission split equally between the listing and selling brokers. What is the selling broker's commission?

Answer: $11,400

The commission is calculated on the actual sale price: $380,000 x 6% = $22,800 total, split equally gives the selling broker $11,400.

Which type of deed provides the LEAST amount of protection to the buyer?

Answer: Quitclaim deed

A quitclaim deed transfers only whatever interest the grantor may have, if any, and provides no warranties or guarantees of title quality.

An appraiser is using the sales comparison approach to value a residential property. The subject property lacks a garage, but the comparable sale has a two-car garage valued at $25,000. How should the appraiser adjust?

Answer: Subtract $25,000 from the comparable sale's price

In the sales comparison approach, adjustments are always made to the comparable property; since the comparable has a feature the subject lacks, its price is adjusted downward.