AGEC 3713 Exam 2 Review Questions with Correct Answers| Latest Update
Guaranteed Success
How do you write legal descriptions using the rectangular coordinate / fractional description
system and using the metes and bounds system? (Put another way -you'll get to write some
legal descriptions of property) - Starts with a system of baselines(running east and west) and
principal meridians (running north and south)
- Lines parallel to these baseline and principle meridians are laid out every six miles
** Line running parallel to baseline= "township"
** Line running parallel to principle meridian= "range"
- Townships are divided into one square mile pieces called sections
- Serpentine numbering systems always starts at northeast corner of section
- After establishing township, you can establish the section number
- After establishing township, range and section; identify the specific parcel
What do the letters "I.M." and "C.M" mean? If you see them, what does that imply about the
property being described? - I.M.- Indian meridian
- C.M.- Cimarron meridian
With respect to brokerage agreements for buying and selling real estate:
a. What are the types of brokerage agreements
b. Which ones involve a broker, and
c. Who gets the commission in the sale? For sale by owner (FBSO)- no agent involved
Open listing- broker will be paid commission by seller when a ready, willing and able buyer is
found to pay the asked price
Exclusive agency- only one broker is authorized to sell the property and get commission. The
seller can still sell- the property and the broker would not get commission.
Exclusive right to sell- only the broker is authorized to sell property and entitled to commission
no matter who sells property
b. which ones involve a broker, and
, open listing
exclusive agency
exclusive right to sell
c. who gets the commission in the sale?
For sale by owner- owner
open listing- broker
exclusive agency- broker/seller
exclusive right to sell- broker
Open listing- broker
What provisions that should be included in a land sale contract, ESPECIALLY"Ferrell's Top Four?"
- A clear description of the parties
- The purchase price and how it is to be paid
- A complete and accurate legal description
- Signature of parties
What is the meaning of "marketable title" as an implied promise in a land sale contract? -
Title acquired by adverse possession is never marketable UNLESS you have a judicial
determination of title.
- There are no encumbrances on the property (no liens, mortgages)
- A violation of the zoning ordinance at the time of the sale makes title unmarketable
Must also have all requirements of contract:
- Legally competent parties
- Proper subject matter
- Offer
- Acceptance
- Consideration
Guaranteed Success
How do you write legal descriptions using the rectangular coordinate / fractional description
system and using the metes and bounds system? (Put another way -you'll get to write some
legal descriptions of property) - Starts with a system of baselines(running east and west) and
principal meridians (running north and south)
- Lines parallel to these baseline and principle meridians are laid out every six miles
** Line running parallel to baseline= "township"
** Line running parallel to principle meridian= "range"
- Townships are divided into one square mile pieces called sections
- Serpentine numbering systems always starts at northeast corner of section
- After establishing township, you can establish the section number
- After establishing township, range and section; identify the specific parcel
What do the letters "I.M." and "C.M" mean? If you see them, what does that imply about the
property being described? - I.M.- Indian meridian
- C.M.- Cimarron meridian
With respect to brokerage agreements for buying and selling real estate:
a. What are the types of brokerage agreements
b. Which ones involve a broker, and
c. Who gets the commission in the sale? For sale by owner (FBSO)- no agent involved
Open listing- broker will be paid commission by seller when a ready, willing and able buyer is
found to pay the asked price
Exclusive agency- only one broker is authorized to sell the property and get commission. The
seller can still sell- the property and the broker would not get commission.
Exclusive right to sell- only the broker is authorized to sell property and entitled to commission
no matter who sells property
b. which ones involve a broker, and
, open listing
exclusive agency
exclusive right to sell
c. who gets the commission in the sale?
For sale by owner- owner
open listing- broker
exclusive agency- broker/seller
exclusive right to sell- broker
Open listing- broker
What provisions that should be included in a land sale contract, ESPECIALLY"Ferrell's Top Four?"
- A clear description of the parties
- The purchase price and how it is to be paid
- A complete and accurate legal description
- Signature of parties
What is the meaning of "marketable title" as an implied promise in a land sale contract? -
Title acquired by adverse possession is never marketable UNLESS you have a judicial
determination of title.
- There are no encumbrances on the property (no liens, mortgages)
- A violation of the zoning ordinance at the time of the sale makes title unmarketable
Must also have all requirements of contract:
- Legally competent parties
- Proper subject matter
- Offer
- Acceptance
- Consideration
