CRAM EXAM 3 QUESTIONS AND VERIFIED ANSWERS
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? - CORRECT
ANSWER✅✅✅Sue the broker
Who is the principal, or employer? - CORRECT ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅Submit the offer to the seller
If a broker is aware of a construction lien on a piece of property, what should they do? - CORRECT
ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅The broker is guilty of concealment.
Which township is immediately west of T1N, R1E? - CORRECT ANSWER✅✅✅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: - CORRECT ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅The
broker could be disciplined for concealment.
What limits the actions of brokers? - CORRECT ANSWER✅✅✅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? - CORRECT
ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅The broker cannot tell the buyer of the lower price.
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? - CORRECT
ANSWER✅✅✅Sue the broker
Who is the principal, or employer? - CORRECT ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅Submit the offer to the seller
If a broker is aware of a construction lien on a piece of property, what should they do? - CORRECT
ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅The broker is guilty of concealment.
Which township is immediately west of T1N, R1E? - CORRECT ANSWER✅✅✅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: - CORRECT ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅The
broker could be disciplined for concealment.
What limits the actions of brokers? - CORRECT ANSWER✅✅✅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? - CORRECT
ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅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? - CORRECT ANSWER✅✅✅The broker cannot tell the buyer of the lower price.
