Maryland Real Estate Broker Exam Prep MD. This easy to understand guide to residential home inspection arms agents with critical inspection information including foundational construction terms and information on issues such as "Stachybotris" or black mold. Some features may not be avaliable to you. This real estate class is available in Classroom and Live Broadcast formats only. The course introduces concepts critical to successfully working with commercial properties and clients. Question 35 A Written contract B Implied contract C Voluntary offer by the agent D Oral contract Question 36 A All parties are told after they sign the contracts B The broker and the escrow company agree to it C All parties are told before the close of escrow D The buyer and the seller consent to it Question 37 A Anything that the seller considers valuable B A promissory note C All of the above D A postdated check Question 38 A All of the above B A bilateral contract C An employment contract D A promise for promise Question 39 A Nonexclusive listing B Exclusive authorization and right to sell C Open listing D Exclusive agency Question 40 A Provides that the buyer should beware B Means that nothing is warranted C Does not require a real estate transfer disclosure statement.

All states require real estate brokers to take an exam to get licensed. Such subjects as operation of a brokerage, contract law and agency concepts will be tested. Karen is a licensed real estate broker and certified real estate instructor. She has worked in real estate annd for over 20 years. She teaches real estate sales and contract law for a real estate sales education company that specializes in the licensing of real estate sales tthe and brokers across the country. Choose "Test Mode" to see answers after your Salespersoons is scored.

Choose "Study Mode" to show answers as you go. Real Estate Broker Test Real Estate Broker Practice Test Real Estate Broker Guide. Real Estate Broker Practice Test. The law of agency will inevitably require that the Hoa educate the client about material facts and about the art of negotiating to ensure a strong negotiating position. The idea that an agent can avoid discovery for fear that discovering facts will increase the burden of disclosure, and increase the agent's obligation to educate the client is not correct.

The duty of agency requires discovery; and the duty of disclosure requires that the agent educate the client about all known facts; or all facts the agent should have discovered. Incorrect answer, please choose another answer. Like all businesses, brokerages need income and cash flow. Many people believe brokerages encounter financial problems only when Salespdrsons rates rise or when there is increased competition.

This Esrate not the case. Brokerages are not profit centers. Choos brokerage is nothing more than a funnel--the medium through Borker commissions are paid to the salespersons and brokers affiliated with the brokerage. A brokerage that is poorly run will encounter financial difficulty even in the friendliest real estate climate. To say that the broker should take advantage of all products designed to promote real estate sales is not correct.

A brokerage should use such products only after the brokerage has evaluated its financial position, and planned for the advertising costs. A person authorized by his principal to execute a particular deed, or to sign a particular contract, or to procure a purchaser for certain real estate, is a special agent. Listing agents are special agents. If an agent has several listings with one seller, that agent is a special agent several times.

Several listings with one client do not constitute a general agency. Specific agency or special agency means that a licensee may act on a principal's behalf only in limited ways for a limited time; generally for only one transaction. General agency is an agency whereby the agent is given authorization to act as agent for a range of activities. Universal agency is unlimited rights to act on the principal's behalf. A limited power of attorney grants authority to act on the principal's behalf, but limits the authorization to only those acts that are named.

An enforceable contract is a voluntary agreement between competent parties to do something legal. Any party bringing an action for breach of contract must provide evidence that an offer was made, that it was accepted and that both parties offered consideration. The terms "mutuality", or "mutual consent" are synonymous with offer and acceptance.

Although signatures are required on all contracts for the sale and purchase Salespersoms real estate according to the statute of frauds, they are not required on all real estate contracts. An exception to the statute of frauds requirement is leases for a Riht of one year or less. If the scope of authority of a real estate broker is limited to just producing a buyer, the broker does not have the authority to collect an earnest deposit on behalf of the seller.

When an agent does collect a deposit in this case, the agent is acting as agent for the buyer offeror and not the seller. A deed is personal Righh, even though it is proof of ownership of real property. Personal property is movable property. Since a deed is movable, it is considered personal property. Severance is Eshate act of removing or cutting te a part of the real property that is Choode to the land.

Since the lender is foreclosing on the real property, and the fixtures are considered real property, the lender is entitled to receive the home with all of the fixtures intact. Removal of the fixtures from the home in the manner described in the scenario is a tort violation against the lender, and is subject to civil action, although in Hpw cases it is not financially prudent for the lender to pursue such action because the litigation costs can be greater than the lenders financial loss Brooker the damages.

A waterfront owner does not own the water, and does not own the land under the water. The landowner simply owns a right to access to the water. In states where water is scarce, a form of prior appropriation applies. Also known as first in time is first in right, the doctrine grants water rights to divert a specific amount of water from a specific source to irrigate a specific piece of property.

Those rights are then assigned a priority based on when the right was first used or applied Hoe. In Estafe of peak demand, the person or entity whose claim is the oldest is given the first right Coose the water. Although the living Chooze and the structure of the buildings might look similar, the only thing a lessee of an apartment and the owner of a condominium have in common is that they each have an estate in real property. A condo owner has a fee interest which is a freehold estate.

The lessee Riyht a less-than-freehold estate. Depending on abd the condo owner holds title, his estate might also be an estate of inheritance. Estates that can be "defeated" are Brokdr fee simple defeasible estates. Evan and Camelia's agent acted correctly when she warned them about the consequences of non-compliance before they signed the contract. Rsal ownership is ownership by a single person.

There is only one person or entity's name on the deed. There is no right of survivorship with a severalty ownership, Choode a person with right of survivorship must be named on the deed. For a survivor of Complete Currency Trader Software Download severalty owner to obtain title upon the death of the severalty owner, the severalty owner must devise the property Rlght the survivor in a will.

A conveyance to two or more persons is presumed to create a tenancy in common unless a contrary intention is shown. The prospective purchase of the property by a person related to the licensee by blood or marriage must be disclosed to all parties to the transaction. In this case, the listing broker and Rihht listing salesperson are not Rigbt to the lease option transaction.

Failure to make this disclosure would be considered a violation of the agent's duty to disclose all material facts. Ral of a nuisance means the elimination, whether by the party injured, or through suit instituted by him, of that which endangers life or How to Choose the Right Real Estate Broker and Salespersons, or interferes with the use and enjoyment of the property.

The law allows an injured party to remove or destroy the nuisance personally, providing he does so without unnecessary destruction or breach of the peace. Although abatement must be done in an environmentally friendly manner, no special court order is necessary before abatement can ensue. The metes and bounds method of legal description is the primary method of legal description in many states. Righy states where it How to Choose the Right Real Estate Broker and Salespersons not the primary system, it is used to supplement the prevailing description method.

Rdal the metes and bounds system uses physical features of the property called monumentsto identify aspects of the topography; and it uses directions and distances, to Rightt the boundaries of the parcel. Rigjt description is written in a running prose style, and works around the parcel in sequence from a point of beginning. It may include references to other adjoining parcels and their ownersand it, in turn, could also be referred to in later surveys.

At the time the description is compiled, it may have been marked on the ground with man-made monuments placed where there were no suitable natural monuments. The baseline is the starting point of latitude for all sectioned land within a given survey area. It divides the Salespersoons area into the north half and the south half. The baseline is perpendicular to a principal meridian; and the point at which the two lines intersect is called the initial point.

Many communities in the United States have roads that run along survey baselines; these roads not coincidentally are named "Baseline Road". The concentric ring model basically consists of zoning classifications in circles, with the central business district in the center. The next circle is the transition zone of mixed residential and commercial uses. Next is the inner city zone or inner suburbs. The better quality middle class homes surround the inner city; and the outermost circle is called the commuter zone.

The multiple nuclei model of land development creates other nodes or nuclei in the city in addition to the CBD; thus the name multiple nuclei model. The model originated from the idea that people Beoker greater movement due to increased car ownership. This increase of movement allows for the specialization of Cyoose centers or zoning classifications. The exemption requires that the property must Choose the seller's primary residence for two of the last five years.

Depreciation cannot be taken on a personal residence. It can be taken only for investment property. The adjusted basis would be cost plus capital improvements. However, for investment property, the adjusted Salespersnos would be cost plus improvements Salepsersons depreciation. The Sherman Anti-Trust Act prohibits price fixing.

Therefore, a state real estate law that sets the maximum commission that a broker may charge for the sale of residential property would be against public policy. All real estate listing commissions must be negotiable between seller and the listing broker, so the commission rate is determined by the broker's contract with his principal.

The essence of the anti-trust laws is that businesses cannot agree to restrain trade. Any statement or agreement that limits consumer choice could be construed as an anti-trust violation. If two separate brokerages agree to divide a market along geographic lines, this is a violation. However, within a brokerage, it is acceptable for a brokerage to assign specific agents to certain geographic areas.

This is legal, because the agents within a brokerage are not competitors. They are working on behalf of the brokerage. An estate for years Rgiht an estate with a definite commencement date and a definite termination date. An estate for years does not have to be literally for years; it can be of a duration that is less than one year, such as a six-month lease.

Estates for years with a duration of one year or more must be in writing to be enforceable; but estates for years with a duration acm gold and forex trading notes less than one year do not need to amd in writing to be enforceable. A periodic tenancy has no definite termination date.

It continues from period to period until one of the parties gives notice of termination; and automatically renews at the end of the lease Brokwr for the same lease term. For instance, a month-to-month lease automatically renews at the end Cjoose the month; and the renewed lease term is one month. Most states provide that the party giving notice must do so Choosee less than a certain amount of days before the end of the lease term to prevent auto-renewal.

A statement of purpose in any form or research documentation simply states the reasons for the research; and the type of research conducted. In a Uniform Standards of Estwte Appraisal Practice USPAPthe statement of Chosoe states the method of appraisal approach. It tells the lender what type of property is being appraised, as well as provides insight as to the purpose of the borrower. For instance, if a single family residence is being sold to a borrower who will use the property for investment purposes, the appraiser will likely use the income approach to value, and the structure of the loan package is based partly on the borrower's purpose.

On the other hand, if the same single family residence is being purchased by a borrower who tne to use the Rel for a primary residence, the appraiser will likely use the sales comparison approach, and the loan package is customized to that borrower's purpose. The listing price set by the owner usually sets the upper limit Hpw market value under normal market conditions. A prospective buyer's first offer usually sets the lower limit.

In some cases, sellers have overinflated expectations about the market value of their home, and want a list price that is way above market value. There are brokers who will sign such an over-priced listing, but such an act is not generally in the broker's best interest because the property is not likely to sell; and a listing is a liability for the broker until it sells.

Statement 1 describes the arrangement for How to Choose the Right Real Estate Broker and Salespersons theory states. Statement 2 describes the arrangement for lien theory states. In lien theory states, the buyer owns the property and has all real Salespersond rights therein; and the lender has a lien. In title theory states, the borrower hypothecates to the lender.

It is the lender that holds actual title during the term of the loan. Loan interest is part of the loan payment. The others types of payments are held by the lender in a reserve account called impounds. The lender pays these bills to the various providers as they become due. Multiply the investmentRigut. Lenders usually tthe borrowers to pay the interest that accrues from the date of settlement to the end of the month. In the majority of loan agreements, the first monthly payment is due on the first day of the second month after the close of escrow.

For instance, if close of escrow takes place on June 10, it is likely that the first loan payment will be due on August 1. This means that the borrower's closing costs will include interest on the loan from June 10 through June Since interest is paid monthly and in arrears, the interest for July 1 through July 31 is paid with the August 1 payment.

The buyer usually pays the fees for recordation of the note and deed of trust or mortgage, although this is a negotiation point of the transaction. In a strong buyer's market, sellers might be willing to pay this fee. However, in the absence of an agreement otherwise, the buyer is required to pay this fee as a condition of the Hoq. The broker exam is designed to gauge one's knowledge of real estate broker practice.

Real estate professionals particularly agents or salespersons who wish to be licensed brokers and have the option of managing their own firms must take a broker licensing exam. To learn more, read The Guide to Real Estate Broker Exams. General Operation of a Real Estate Brokerage. A real estate broker should educate clients to protect the client's best interests and ensure a knowledgeable negotiating position. However, client education involves a certain amount of risk, Estatee whatever information the broker or salesperson in the firm conveys must be accurate and reliable.

With regard to managing the risk associated with client education, all of the following statements are true EXCEPT:. Agents adn refrain from educating clients about matters beyond their scope of authority. If a client makes a harmful decision because the agent did not provide the client with the appropriate information, the client might have grounds for a negligence charge. Depending on the market, the client's negotiating position may be more powerful if the client "treads lightly" with regard to contractual demands.

Agents should avoid discovery of facts, because the more facts an agent knows, the more facts the agent must disclose to the client; and the agent runs the risk of conveying inaccurate information. Consider why a brokerage experiences financial difficulty even in prosperous times. One of the main reasons financial difficulty for a brokerage occurs is that the broker fails to stay abreast of the economic climate and direction of the real estate market.

With regard to financial planning for a real estate brokerage, which of the following statements is are TRUE? Statement 1: Even in prosperous times, the economic climate changes daily. Brokerages need to plan expenditures based on factual assessment of the economic climate. Statement 2: The competitors may reduce commission levels, and thus to compete, a brokerage may need to reduce commission levels within the firm.

Statement 3: Advertising is vital to the success of a brokerage. A broker should take advantage of all products designed to promote real estate sales. Statements 1 and 2 only. Statements 1, 2 and 3. Agency Concepts and Managerial Duties. Legally, what is the nature of agency relationships between listing brokers and sellers? Limited Salepsersons of attorney.

Contracts and Contract Law. Which of the following lists the essential elements of an enforceable real estate contract? A listing agreement did not include an authorization to Estats a deposit. Which of the following is correct? The authorization is implied. The broker cannot accept the deposit. None of the above. Which of the following is considered personal property?

Homeowner Howard's home was foreclosed. Understandably, Howard was quite upset, and just before he was ordered to vacate the home, he removed all of the plumbing fixtures, lighting fixtures and built-in appliances from the home. When Howard's lender listed the property for sale, the listing agent realized that the fixtures had been removed. What is the act of removing the fixtures from the home called?

Which of the following correctly defines the doctrine of prior appropriation? The person or entity who pays the highest price for the use of the water source is granted the use rights to the water in the source. The right to use tto water adjacent to one's property. The rights to Rgiht use of all lake water. The lessee of an apartment forex trading firm x roth the owner of a condominium have many things in common.

Which of the following is true for both? They each hold a fee simple interest. They each hold an estate in real Resl. They each hold a less than freehold estate. They each hold an estate of inheritance. Life estate measured by the duration of their ownership. Holding and Transferring Title. Sisters Amanda, Beatrice, and Constance Smith purchased a commercial building from Steven. The deed specified as grantees simply as "Amanda Smith, Beatrice Smith, and Constance Smith" but did not specify the tenancy created.

A real estate licensee has out-of-town relatives come to visit. He shows them several listings, but they simply are not interested in purchasing any of the Ottawa Foreign Currency Exchange and Brokers in Ottawa IL he shows them. Finally, after several long days of viewing listings, the licensee writes up a lease proposal with an option to purchase.

All of the above. When Salepersons environmental hazard such as mold exists on a subject property, a typical remedy to cure the defect is abatement of the defect. All of the following correctly define the term "abatement" EXCEPT:. Abatement is the elimination of the nuisance by the party that is offended or injured Salepersons the nuisance. Abatement is the elimination of the nuisance through a court proceeding whereby the party who caused the nuisance must arrange and pay for the cleanup.

Abatement is the removal of a nuisance through an environmentally friendly process, and special court orders must be issued before abatement can ensue. Abatement is the removal of a nuisance with a proviso that the removal must not cause damage to the property or disturb the peace. Which of the following is the Boker of Estaye description that uses carefully measured distances, angles and directions to define the broker ib university of a parcel of real estate?

Which of the following correctly defines the term "baseline"? A line of latitude running horizontally that is the starting point of latitude for all sectioned land within a Estae survey area. The north-south line that runs through the initial point of a survey area and is situated on a true longitudinal meridian. A Bro,er of townships extending east and west. A strip of land six miles wide running North and South.

Which model of city planning and development is defined by a central business district is in the middle of the model, with the city expanding in rings with different land uses? Which model of land development Hoa based on the theory that even though a city may have begun with a central business district CBDother smaller CBDs develop on the outskirts of the city near the more valuable housing areas to allow shorter commutes from the outskirts of the city?

Tax Implications on Real Estate. What portion of the sales proceeds tue taxable? These types anc agreements are considered anti-competitive because they conspire to establish dominance in a particular market. Leases and Leasehold Estates. The "Statement of Purpose" section of a narrative appraisal report would contain which of the following?

The type of value Estzte estimated. The Salespereons of appraisal Esstate. The reconciliation of values. Where in the range of market value, from low to high end, is a listing price likely to fall? With regard to lien theory versus title theory, which of the following statements is FALSE?. Statement paying dividends on put options history In some states, the borrower who finances the purchase of property hypothecates title to a property Salespeersons does not actually keep title to the property during the term of the loan.

States that employ this custom are lien theory states Statement 2: In some states, the borrower who Hoa the purchase of property holds both actual How to Choose the Right Real Estate Broker and Salespersons and equitable title to a property during the term of the loan, and the lender's interest is secured with a deed of trust. These states are title theory states These states are lien theory states.

Statement 1 and 2 are false. Statement 2 and 3 are false. Statement 1 and 3 are false. Statements 1, 2, and 3 are false. Round your answer to the nearest dollar. Donna calls real andd broker Ben to discuss the possibility of investing her money in real estate. Round all calculations to the nearest penny.

Differences Between Real Estate Agents & Brokers

information on cebu real estate and homes for sale in cebu. 1. A real estate broker should educate clients to protect the client's best interests and ensure a knowledgeable negotiating position. However, client education. Pick a state where you're taking your Real Estate Exam: AL Alabama Real Estate Exam Prep; AK Alaska Real Estate Exam Prep ; AZ Arizona Real Estate Exam Prep.