Real Estate Sales Exam Practice Questions 2

Question 1

A buyer makes an offer on a home with a financing contingency. The lender denies the loan. What happens to the earnest money?

Accepted Answer

It is returned to the buyer

Answer

A valid financing contingency protects the buyer's earnest money if they cannot obtain the specified loan.

Question 2

Which type of listing agreement gives the broker the exclusive right to sell AND earn a commission regardless of who finds the buyer?

Accepted Answer

Exclusive right-to-sell listing

Answer

An exclusive right-to-sell listing guarantees the broker a commission even if the seller finds the buyer independently.

Question 3

Under RESPA, a kickback arrangement between a title company and a real estate broker is:

Accepted Answer

Prohibited regardless of disclosure

Answer

RESPA Section 8 prohibits kickbacks and unearned fee splitting in federally related mortgage transactions regardless of disclosure.

Question 4

A property is listed at $320,000. The seller agrees to accept $305,000. The buyer offers $298,000. At this point there is:

Accepted Answer

No contract — the offer was rejected

Answer

Because the buyer's offer did not match the seller's acceptable price, no contract exists and the seller is free to reject.

Question 5

The term 'procuring cause' in real estate refers to:

Accepted Answer

The agent whose efforts directly resulted in the sale

Answer

Procuring cause determines which broker is entitled to a commission by identifying whose continuous efforts led to the completed transaction.

Real Estate Sales Exam Practice Test