CRAM Exam 3 Questions with Correct Answers 100% Pass
Sales associate, Tim, received a signed contract from a buyer and mailed it to the seller. The seller
agreed to the terms and the escrow deposit was deposited safely in the broker's escrow account. Tim
has a disagreement with his broker and quits. The broker refuses to pay a commission since Tim was not
in their employ when the contract was actually received and signed. What should Tim do? - Answers Sue
the broker
Who is the principal, or employer? - Answers The one who engages the broker in a single agency
relationship
Homeowner Owen signed an exclusive right of sale listing with Bob, a registered broker. The listing
states that Bob is employed to find a purchaser and that Owen agrees to pay a 10% commission to Bob
or any person, partnership, corporation, or firm that sells the property. The remainder of the listing
deals with the terms and conditions of the sale and duration of the listing. While Owen was away on
vacation, Percy made a written offer to purchase the property at the listed price, terms, and conditions.
Bob, on behalf of owner Owen, accepted Percy's offer and signed it for Owen. Which statement is
correct? - Answers The listing did not give Bob the right to obligate Owen to Percy's offer
Sales associate John attends a cocktail party with his friend Bill, where he introduces Bill to another
friend, Jack. It turns out that Jack has a house for sale, and Bill agrees to purchase it. Sales associate John
makes it clear that he wants no commission, but John's broker demands a commission. Which statement
is correct? - Answers The broker is not entitled to a commission
. A broker, while looking for a deal for his best friend, gets a listing. The seller must sell because of a
family emergency. What should the broker say to his best friend? - Answers Say nothing about the
seller, and ask the buyer to make an offer
. If an oral offer is made to a broker on a property the broker has listed, what should be the broker's
response? - Answers Submit the offer to the seller
If a broker is aware of a construction lien on a piece of property, what should they do? - Answers Tell the
buyer before going to contract
A broker lists a property for $30,000. The broker learns of a new development that will be built beside
the listed property. The broker purchases the property from the seller for the full listed price and
discloses the fact that he is a licensed broker. The broker then sells the property to the developer for
$50,000. Which statement is correct? - Answers The broker is guilty of concealment.
Which township is immediately west of T1N, R1E? - Answers T1N, R1W
John Smith is the broker of ABC Realty. He is preparing to open a branch office. All of the following items
are required on the branch office sign, EXCEPT: - Answers Branch office
, Broker Jones takes a listing on a condominium from Mr. Charles. Mr. Charles notifies Jones that the roof
leaks. Jones negotiates the sale of the condominium to Smith without disclosing the leak. Smith, a year
later, sells the condominium for a profit. Which statement applies? - Answers The broker could be
disciplined for concealment.
What limits the actions of brokers? - Answers Law of agency
To help his customers sell their property a mortgage broker agrees to hold an open house and prepares
an offer to purchase on a standard contract for a fee of $250. Which statement is correct? - Answers He
is guilty of a third-degree felony.
A broker's principal is away on vacation. The broker receives an offer of $75,000 for his principal's
property. Before the principal returns, the broker receives a second offer of $72,000. What should the
broker do? - Answers Submit both offers to the principal
Broker Brown lists Smith's property for $20,000. Broker Brown hears from a friend on the planning
commission that they are intending to put a highway right next to Mr. Smith's property, making his lot a
corner lot. He tells another friend about what he has heard, and the friend buys the property for
$20,000. Which statement is correct? - Answers Broker Brown's license may be suspended for not telling
Smith.
A seller lists a property at $75,000 but tells the broker he will go as low as $72,000. Which statement is
correct? - Answers The broker cannot tell the buyer of the lower price.
Complete the sentence. A fiduciary relationship is one of: - Answers Trust and confidence when
accepted
Can a broker be entitled to two commissions when consummating an exchange? - Answers Yes,
providing both parties are advised and approve
A seller listed their property at a price that the broker knew was below market value. The broker had his
wife buy the property in her maiden name and subsequently resold the property at a profit. What could
the broker be charged with? - Answers Concealment and fraud
In a real estate transaction, what type of relationship can a buyer and seller expect to have? - Answers
An arm's length relationship
What is a licensee with full representation to both parties in the same transaction referred to as? -
Answers Dual agent
Which of the following documents not only recommends that the principal sign it, but requires it? -
Answers Consent to Transition to Transaction Broker
Which term refers to the misstatement, omission, or concealment of a factual matter? - Answers
Misrepresentation
Sales associate, Tim, received a signed contract from a buyer and mailed it to the seller. The seller
agreed to the terms and the escrow deposit was deposited safely in the broker's escrow account. Tim
has a disagreement with his broker and quits. The broker refuses to pay a commission since Tim was not
in their employ when the contract was actually received and signed. What should Tim do? - Answers Sue
the broker
Who is the principal, or employer? - Answers The one who engages the broker in a single agency
relationship
Homeowner Owen signed an exclusive right of sale listing with Bob, a registered broker. The listing
states that Bob is employed to find a purchaser and that Owen agrees to pay a 10% commission to Bob
or any person, partnership, corporation, or firm that sells the property. The remainder of the listing
deals with the terms and conditions of the sale and duration of the listing. While Owen was away on
vacation, Percy made a written offer to purchase the property at the listed price, terms, and conditions.
Bob, on behalf of owner Owen, accepted Percy's offer and signed it for Owen. Which statement is
correct? - Answers The listing did not give Bob the right to obligate Owen to Percy's offer
Sales associate John attends a cocktail party with his friend Bill, where he introduces Bill to another
friend, Jack. It turns out that Jack has a house for sale, and Bill agrees to purchase it. Sales associate John
makes it clear that he wants no commission, but John's broker demands a commission. Which statement
is correct? - Answers The broker is not entitled to a commission
. A broker, while looking for a deal for his best friend, gets a listing. The seller must sell because of a
family emergency. What should the broker say to his best friend? - Answers Say nothing about the
seller, and ask the buyer to make an offer
. If an oral offer is made to a broker on a property the broker has listed, what should be the broker's
response? - Answers Submit the offer to the seller
If a broker is aware of a construction lien on a piece of property, what should they do? - Answers Tell the
buyer before going to contract
A broker lists a property for $30,000. The broker learns of a new development that will be built beside
the listed property. The broker purchases the property from the seller for the full listed price and
discloses the fact that he is a licensed broker. The broker then sells the property to the developer for
$50,000. Which statement is correct? - Answers The broker is guilty of concealment.
Which township is immediately west of T1N, R1E? - Answers T1N, R1W
John Smith is the broker of ABC Realty. He is preparing to open a branch office. All of the following items
are required on the branch office sign, EXCEPT: - Answers Branch office
, Broker Jones takes a listing on a condominium from Mr. Charles. Mr. Charles notifies Jones that the roof
leaks. Jones negotiates the sale of the condominium to Smith without disclosing the leak. Smith, a year
later, sells the condominium for a profit. Which statement applies? - Answers The broker could be
disciplined for concealment.
What limits the actions of brokers? - Answers Law of agency
To help his customers sell their property a mortgage broker agrees to hold an open house and prepares
an offer to purchase on a standard contract for a fee of $250. Which statement is correct? - Answers He
is guilty of a third-degree felony.
A broker's principal is away on vacation. The broker receives an offer of $75,000 for his principal's
property. Before the principal returns, the broker receives a second offer of $72,000. What should the
broker do? - Answers Submit both offers to the principal
Broker Brown lists Smith's property for $20,000. Broker Brown hears from a friend on the planning
commission that they are intending to put a highway right next to Mr. Smith's property, making his lot a
corner lot. He tells another friend about what he has heard, and the friend buys the property for
$20,000. Which statement is correct? - Answers Broker Brown's license may be suspended for not telling
Smith.
A seller lists a property at $75,000 but tells the broker he will go as low as $72,000. Which statement is
correct? - Answers The broker cannot tell the buyer of the lower price.
Complete the sentence. A fiduciary relationship is one of: - Answers Trust and confidence when
accepted
Can a broker be entitled to two commissions when consummating an exchange? - Answers Yes,
providing both parties are advised and approve
A seller listed their property at a price that the broker knew was below market value. The broker had his
wife buy the property in her maiden name and subsequently resold the property at a profit. What could
the broker be charged with? - Answers Concealment and fraud
In a real estate transaction, what type of relationship can a buyer and seller expect to have? - Answers
An arm's length relationship
What is a licensee with full representation to both parties in the same transaction referred to as? -
Answers Dual agent
Which of the following documents not only recommends that the principal sign it, but requires it? -
Answers Consent to Transition to Transaction Broker
Which term refers to the misstatement, omission, or concealment of a factual matter? - Answers
Misrepresentation
