BARNEY FLETCHER FINAL EXAM 2024 ACTUAL EXAM 2
VERSIONS (VERSION A AND B) COMPLETE 250 QUESTIONS
WITH DETAILED VERIFIED ANSWERS AND RATIONALES
/ALREADY GRADED A+
Question 1
A seller wants to list their property with a broker but wants to ensure they pay no commission
if they find the buyer themselves. Which type of listing contract should the seller avoid signing
to meet this objective?
A. an exclusive agency listing
B. an exclusive right to sell listing
C. an open listing
D. a net listing
E. a multiple listing
Correct Answer: B) an exclusive right to sell listing
Rationale: An exclusive right to sell listing guarantees the broker a commission
regardless of who sells the property, including the owner. An exclusive agency
listing allows the seller to avoid commission if they find the buyer themselves, and
an open listing only pays the broker who procures the buyer.
Question 2
Mr. Davis listed his house with Broker Nancy. Although Davis did not explicitly state it, Nancy
observed that Davis appeared to be in poor health and overheard a conversation suggesting he
might need a quick sale due to health issues. What should Nancy tell potential buyers?
A. Tell them of the illness only if they specifically ask about the seller's health.
B. Tell them of the potential need for a quick sale to encourage offers.
C. Do not disclose the seller's health condition or the perceived need to sell quickly.
D. Disclose the illness to ensure transparency and prevent future disputes.
E. Inform them that the seller's health could affect the closing timeline.
Correct Answer: C) Do not disclose the seller's health condition or the perceived
need to sell quickly.
Rationale: A licensee's duty of confidentiality extends to the client's personal
circumstances (such as health) and motivations for selling (such as a desperate
need for a quick sale), unless the client explicitly authorizes disclosure or it's a
,known material fact about the property itself. This is confidential information that
could disadvantage the seller in negotiations.
Question 3
In a cooperative sale where the listing broker and the selling broker both represent the seller,
the selling broker has which of the following relationships with the listing broker?
A. agent of the listing broker
B. subagent of the listing broker
C. dual agent of the listing broker
D. special agent of the listing broker
E. general agent of the listing broker
Correct Answer: A) agent of the listing broker
Rationale: In a cooperative sale where both brokers represent the seller, the selling
broker is typically acting as an agent of the listing broker, extending the listing
broker's representation to the seller. They are not a subagent of the buyer in this
scenario.
Question 4
A broker had an exclusive right-to-sell listing contract. In order to collect the commission, the
broker must primarily:
A. prove he was the procuring cause of the sale.
B. prove he had a ready, willing, and able buyer who met the seller's terms.
C. have a valid, written exclusive right-to-sell listing agreement and be licensed at the time of
the sale.
D. demonstrate that he actively marketed the property.
E. show that the buyer acted in good faith.
Correct Answer: C) have a valid, written exclusive right-to-sell listing agreement and
be licensed at the time of the sale.
Rationale: With an exclusive right-to-sell listing, the broker is entitled to a
commission if the property sells during the listing period, regardless of who found
the buyer. The key requirements are a valid written contract and proper licensure.
,Question 5
A broker estimated the property lines by stating it ran "about ten feet past the old oak tree" in
the backyard. After closing, the buyer discovered the actual line was over fifteen feet further
away than estimated. Is the broker liable?
A. No, he gave an estimate, and the buyer should have obtained a survey.
B. No, property lines are complex, and verbal estimates are not binding.
C. Yes, he made a statement of fact which he should have verified or stated as an opinion.
D. Yes, the broker should have surveyed the property himself before making such a claim.
E. No, because the buyer's attorney should have caught the discrepancy.
Correct Answer: C) Yes, he made a statement of fact which he should have verified
or stated as an opinion.
Rationale: A broker should never make definitive statements about property
boundaries without a survey. Providing a specific, but incorrect, estimate can be
construed as misrepresentation, as a reasonable buyer would rely on such a
statement from a professional.
Question 6
Ms. Chen has an exclusive listing with Broker David for $300,000. David finds a buyer who
wants representation and David represents both Chen and the buyer, verbally disclosing that he
is now representing both as clients. Has David violated license law in Georgia?
A. Yes, because this is permitted only with a written dual agency agreement.
B. Yes, because this is an example of undisclosed dual agency.
C. No, because he disclosed to all parties that neither had to consent to dual agency.
D. No, because he disclosed to all parties that his actions may be adverse to either party,
however he would not divulge confidential information.
E. No, as long as he acts impartially.
Correct Answer: B) Yes, because this is an example of undisclosed dual agency.
Rationale: In Georgia, dual agency must always be disclosed to all parties in writing,
and all parties must consent in writing. A verbal disclosure is insufficient and
constitutes a violation.
, Question 7
A buyer and seller initially sign a contract to close on June 15th, but later agree to change the
closing date to June 30th due to unforeseen delays. This change is formalized through a(n):
A. addendum
B. special stipulation
C. amendment
D. rider
E. covenant
Correct Answer: C) amendment
Rationale: An amendment is used to change an existing term in an already signed
contract. An addendum adds new terms to a contract, typically before or at the
time of signing.
Question 8
When a person, upon payment of a consideration, has an obligation to buy land at a fixed price
within a specified period of time, his right could be described as:
A. a right of first refusal
B. an option
C. a sales contract
D. either A or B
E. a lease with option to purchase
Correct Answer: B) an option
Rationale: An option contract gives the optionee (buyer) the right, but not the
obligation, to purchase a property at a predetermined price within a specified
timeframe, in exchange for a fee (consideration). The optionor (seller) is obligated
to sell if the optionee exercises the right.
Question 9
Sarah has a listing with broker Tom. A week into the listing, Sarah receives a call from broker
Lisa stating that the listing is now with her firm. Can this legally happen?
A. It's permissible if the original contract allowed for assignment.
B. It's permissible if the brokers have a written agreement to transfer the listing.
VERSIONS (VERSION A AND B) COMPLETE 250 QUESTIONS
WITH DETAILED VERIFIED ANSWERS AND RATIONALES
/ALREADY GRADED A+
Question 1
A seller wants to list their property with a broker but wants to ensure they pay no commission
if they find the buyer themselves. Which type of listing contract should the seller avoid signing
to meet this objective?
A. an exclusive agency listing
B. an exclusive right to sell listing
C. an open listing
D. a net listing
E. a multiple listing
Correct Answer: B) an exclusive right to sell listing
Rationale: An exclusive right to sell listing guarantees the broker a commission
regardless of who sells the property, including the owner. An exclusive agency
listing allows the seller to avoid commission if they find the buyer themselves, and
an open listing only pays the broker who procures the buyer.
Question 2
Mr. Davis listed his house with Broker Nancy. Although Davis did not explicitly state it, Nancy
observed that Davis appeared to be in poor health and overheard a conversation suggesting he
might need a quick sale due to health issues. What should Nancy tell potential buyers?
A. Tell them of the illness only if they specifically ask about the seller's health.
B. Tell them of the potential need for a quick sale to encourage offers.
C. Do not disclose the seller's health condition or the perceived need to sell quickly.
D. Disclose the illness to ensure transparency and prevent future disputes.
E. Inform them that the seller's health could affect the closing timeline.
Correct Answer: C) Do not disclose the seller's health condition or the perceived
need to sell quickly.
Rationale: A licensee's duty of confidentiality extends to the client's personal
circumstances (such as health) and motivations for selling (such as a desperate
need for a quick sale), unless the client explicitly authorizes disclosure or it's a
,known material fact about the property itself. This is confidential information that
could disadvantage the seller in negotiations.
Question 3
In a cooperative sale where the listing broker and the selling broker both represent the seller,
the selling broker has which of the following relationships with the listing broker?
A. agent of the listing broker
B. subagent of the listing broker
C. dual agent of the listing broker
D. special agent of the listing broker
E. general agent of the listing broker
Correct Answer: A) agent of the listing broker
Rationale: In a cooperative sale where both brokers represent the seller, the selling
broker is typically acting as an agent of the listing broker, extending the listing
broker's representation to the seller. They are not a subagent of the buyer in this
scenario.
Question 4
A broker had an exclusive right-to-sell listing contract. In order to collect the commission, the
broker must primarily:
A. prove he was the procuring cause of the sale.
B. prove he had a ready, willing, and able buyer who met the seller's terms.
C. have a valid, written exclusive right-to-sell listing agreement and be licensed at the time of
the sale.
D. demonstrate that he actively marketed the property.
E. show that the buyer acted in good faith.
Correct Answer: C) have a valid, written exclusive right-to-sell listing agreement and
be licensed at the time of the sale.
Rationale: With an exclusive right-to-sell listing, the broker is entitled to a
commission if the property sells during the listing period, regardless of who found
the buyer. The key requirements are a valid written contract and proper licensure.
,Question 5
A broker estimated the property lines by stating it ran "about ten feet past the old oak tree" in
the backyard. After closing, the buyer discovered the actual line was over fifteen feet further
away than estimated. Is the broker liable?
A. No, he gave an estimate, and the buyer should have obtained a survey.
B. No, property lines are complex, and verbal estimates are not binding.
C. Yes, he made a statement of fact which he should have verified or stated as an opinion.
D. Yes, the broker should have surveyed the property himself before making such a claim.
E. No, because the buyer's attorney should have caught the discrepancy.
Correct Answer: C) Yes, he made a statement of fact which he should have verified
or stated as an opinion.
Rationale: A broker should never make definitive statements about property
boundaries without a survey. Providing a specific, but incorrect, estimate can be
construed as misrepresentation, as a reasonable buyer would rely on such a
statement from a professional.
Question 6
Ms. Chen has an exclusive listing with Broker David for $300,000. David finds a buyer who
wants representation and David represents both Chen and the buyer, verbally disclosing that he
is now representing both as clients. Has David violated license law in Georgia?
A. Yes, because this is permitted only with a written dual agency agreement.
B. Yes, because this is an example of undisclosed dual agency.
C. No, because he disclosed to all parties that neither had to consent to dual agency.
D. No, because he disclosed to all parties that his actions may be adverse to either party,
however he would not divulge confidential information.
E. No, as long as he acts impartially.
Correct Answer: B) Yes, because this is an example of undisclosed dual agency.
Rationale: In Georgia, dual agency must always be disclosed to all parties in writing,
and all parties must consent in writing. A verbal disclosure is insufficient and
constitutes a violation.
, Question 7
A buyer and seller initially sign a contract to close on June 15th, but later agree to change the
closing date to June 30th due to unforeseen delays. This change is formalized through a(n):
A. addendum
B. special stipulation
C. amendment
D. rider
E. covenant
Correct Answer: C) amendment
Rationale: An amendment is used to change an existing term in an already signed
contract. An addendum adds new terms to a contract, typically before or at the
time of signing.
Question 8
When a person, upon payment of a consideration, has an obligation to buy land at a fixed price
within a specified period of time, his right could be described as:
A. a right of first refusal
B. an option
C. a sales contract
D. either A or B
E. a lease with option to purchase
Correct Answer: B) an option
Rationale: An option contract gives the optionee (buyer) the right, but not the
obligation, to purchase a property at a predetermined price within a specified
timeframe, in exchange for a fee (consideration). The optionor (seller) is obligated
to sell if the optionee exercises the right.
Question 9
Sarah has a listing with broker Tom. A week into the listing, Sarah receives a call from broker
Lisa stating that the listing is now with her firm. Can this legally happen?
A. It's permissible if the original contract allowed for assignment.
B. It's permissible if the brokers have a written agreement to transfer the listing.
