Real Estate Sales Exam Multiple Choice Questions 4

Question 1

A broker holds a buyer's earnest money deposit in a separate account distinct from the broker's operating funds. This practice is called:

Accepted Answer

Segregation (trust accounting)

Answer

Proper trust accounting requires brokers to keep client funds in a separate escrow or trust account, preventing commingling with business funds.

Question 2

An owner wants to sell but refuses to list with a broker who brings an offer. Under an open listing, the owner owes a commission only if:

Accepted Answer

The broker is the procuring cause of the sale

Answer

Under an open listing, commission is owed only to the broker who is the procuring cause—the one whose efforts directly led to the sale.

Question 3

Which appraisal approach is MOST appropriate for a special-purpose property like a church or school?

Accepted Answer

Cost approach

Answer

The cost approach—estimating land value plus the depreciated cost to replace improvements—is most reliable for special-purpose properties that rarely sell and produce no income.

Question 4

A contract signed by a minor is generally considered:

Accepted Answer

Voidable at the minor's option

Answer

Contracts with minors are voidable—the minor may disaffirm the contract, but the adult party is bound unless the minor elects to void it.

Question 5

Which federal law requires lenders to provide borrowers with a Loan Estimate within three business days of a loan application?

Accepted Answer

TILA/RESPA Integrated Disclosure (TRID)

Answer

The TILA-RESPA Integrated Disclosure (TRID) rule, effective 2015, replaced the GFE and TIL disclosure with a Loan Estimate delivered within 3 business days.

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Multiple Choice Questions 4