Real Estate Sales Exam Practice Questions 5

Question 1

An agent inadvertently tells a buyer that the neighborhood has 'great schools' without verifying this. If the schools are actually rated poorly, the agent may be liable for:

Accepted Answer

Negligent misrepresentation

Answer

Negligent misrepresentation occurs when an agent makes a false statement without reasonable basis, even if not intentionally deceptive.

Question 2

A listing agreement expires before the property sells. The seller then sells directly to a buyer who was introduced by the former broker during the listing period. The broker:

Accepted Answer

May be entitled to a commission if a protection clause was in the listing

Answer

A safety clause (protection period) in a listing agreement entitles the broker to a commission if the property sells to a buyer the broker introduced during the listing period.

Question 3

In a mortgage transaction, the document that creates the debt obligation and promises repayment is the:

Accepted Answer

Promissory note

Answer

The promissory note is the borrower's written promise to repay the loan under stated terms; the mortgage or deed of trust is the security instrument.

Question 4

Which type of deed provides the greatest protection to the buyer?

Accepted Answer

General warranty deed

Answer

A general warranty deed contains covenants warranting title against all defects, even those arising before the seller owned the property.

Question 5

A property manager neglects to make required repairs, causing a tenant to break their lease and vacate. This is known as:

Accepted Answer

Constructive eviction

Answer

Constructive eviction occurs when the landlord's failure to maintain habitable conditions effectively forces the tenant to leave.

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Practice Questions 5