FINC 371 ACTUAL COMPREHENSIVE EXAM
QUESTIONS AND ANSWERS SURE A+
✔✔Carl is a real estate broker who has agreed to act as an agent for Sandra and help
her sell her home. They sign an exclusive agency listing agreement that gives Carl 90
days to search for a buyer. After 75 days, no buyer has signed a contract to purchase
the property and Sandra asks Carl to cancel the listing agreement. Reluctantly, Carl
agrees and they go their separate ways. Two days later, Carl learns that Sandra has
just signed a contract with a buyer who viewed the home with Carl while the listing
agreement was active. Is Carl entitled to compensation if he pursued this matter through
the legal system?
a. Only if he is a licensed real estate sales associate.
b. Only if Sandra is herself a real estate broker.
c. Most likely, yes.
d. Most likely, no. - ✔✔C
✔✔The primary purpose of a listing agreement is to define the relationship between
A. the property owner and the real estate broker.
B. the real estate broker and potential buyers.
C. the property owner and potential buyers.
D. the real estate broker and sales associates and broker associates. - ✔✔A
, ✔✔The process of evaluating a potential buyer's ability to purchase a listed property is
called - ✔✔qualifying
✔✔An agent does not owe the duty of
A. loyalty to the customer's best interests.
B. none of the above
C. loyalty to the principal's best interests.
D. following the principal's directions. - ✔✔A
✔✔A local brokerage firm that pays an initial fee plus a percentage of gross receipts in
order to be affiliated with a national firm is called a - ✔✔franchise
✔✔the property owner can sell his/her property while also giving multiple brokers
permission to advertise the listing - ✔✔open listing
✔✔the seller has picked one agent to list the property, but the seller reserves the right
to find a buyer themselves - ✔✔exclusive agency
✔✔the seller has picked one agent to list the property and that agent has the exclusive
right to sell the property; even if the property owner finds the buyer, the agent will still
receive a commission. - ✔✔exclusive right to sell
✔✔a deceptive act done intentionally by one party in order to influence the other party
to enter into a contract - ✔✔fraud
✔✔the unintentional representation of a misstatement, made innocently by one party,
which persuades the other party to enter into a contract. - ✔✔misrepresentation
✔✔the value of a property to a typical investor - ✔✔market value
✔✔the value of a property to a particular investor. - ✔✔investment value
✔✔The value that real estate appraisers generally estimate is market value, which is
synonymous with
A. reproduction cost.
B. most probable selling price.
C. investment value.
D. value in use. - ✔✔B
✔✔The principle of substitution is the basis for which approach to valuation?
QUESTIONS AND ANSWERS SURE A+
✔✔Carl is a real estate broker who has agreed to act as an agent for Sandra and help
her sell her home. They sign an exclusive agency listing agreement that gives Carl 90
days to search for a buyer. After 75 days, no buyer has signed a contract to purchase
the property and Sandra asks Carl to cancel the listing agreement. Reluctantly, Carl
agrees and they go their separate ways. Two days later, Carl learns that Sandra has
just signed a contract with a buyer who viewed the home with Carl while the listing
agreement was active. Is Carl entitled to compensation if he pursued this matter through
the legal system?
a. Only if he is a licensed real estate sales associate.
b. Only if Sandra is herself a real estate broker.
c. Most likely, yes.
d. Most likely, no. - ✔✔C
✔✔The primary purpose of a listing agreement is to define the relationship between
A. the property owner and the real estate broker.
B. the real estate broker and potential buyers.
C. the property owner and potential buyers.
D. the real estate broker and sales associates and broker associates. - ✔✔A
, ✔✔The process of evaluating a potential buyer's ability to purchase a listed property is
called - ✔✔qualifying
✔✔An agent does not owe the duty of
A. loyalty to the customer's best interests.
B. none of the above
C. loyalty to the principal's best interests.
D. following the principal's directions. - ✔✔A
✔✔A local brokerage firm that pays an initial fee plus a percentage of gross receipts in
order to be affiliated with a national firm is called a - ✔✔franchise
✔✔the property owner can sell his/her property while also giving multiple brokers
permission to advertise the listing - ✔✔open listing
✔✔the seller has picked one agent to list the property, but the seller reserves the right
to find a buyer themselves - ✔✔exclusive agency
✔✔the seller has picked one agent to list the property and that agent has the exclusive
right to sell the property; even if the property owner finds the buyer, the agent will still
receive a commission. - ✔✔exclusive right to sell
✔✔a deceptive act done intentionally by one party in order to influence the other party
to enter into a contract - ✔✔fraud
✔✔the unintentional representation of a misstatement, made innocently by one party,
which persuades the other party to enter into a contract. - ✔✔misrepresentation
✔✔the value of a property to a typical investor - ✔✔market value
✔✔the value of a property to a particular investor. - ✔✔investment value
✔✔The value that real estate appraisers generally estimate is market value, which is
synonymous with
A. reproduction cost.
B. most probable selling price.
C. investment value.
D. value in use. - ✔✔B
✔✔The principle of substitution is the basis for which approach to valuation?
