1. A sales associate takes a listing in the name of a sponsoring broker. When a dispute arises between the sales associate and the seller,
A. the broker must terminate the listing.
B. the sales associate has breached a fiduciary duty.
C. the sales associate is the only responsible party.
D. the sponsoring broker may be responsible for the sales associate's actions. Correct
Explanation
The listing is in the broker's name, creating vicarious liability. The broker is legally responsible for the associate's actions within the scope of employment. The broker may seek recourse from the associate but remains primarily liable to the seller.
2. A real estate brokerage advertises specifically for buyers who wish to purchase using VA loans. Do these advertisements violate veterans' rights or the advertising rules of the Federal Fair Housing Act?
A. Yes, because such advertising falsely implies that only military veterans can qualify to purchase.
B. Yes, because such advertising discriminates against individuals who have not served in the military.
C. No, because brokers are entitled to direct property advertisements to any specific segment of the population.
D. No, because veterans from all protected classes can qualify for VA loans. Correct
Explanation
VA loans are available to eligible veterans regardless of race, color, religion, sex, or other protected classes. Targeting VA loan users is marketing to a financing preference, not a protected class. Such advertising does not violate fair housing laws.
3. Which of the following listings would allow more than one brokerage firm to work simultaneously to sell the owner's property and claim the full commission?
A. an exclusive listing
B. a written listing
C. an open listing Correct
D. an exclusive right-to-sell listing
Explanation
An open listing allows multiple brokers to compete, and the first to procure a ready, willing buyer earns the full commission. Exclusive listings limit authority to one broker. The owner may sell independently without owing commission.
4. Which of the following is a form of multiple ownership in which each owner possesses an undivided proportional interest in the entire property, although the ownership shares need not be equal?
A. tenancy by the entirety
B. tenancy at will
C. joint tenancy
D. tenancy in common Correct
Explanation
Tenancy in common allows unequal shares with undivided interest in the whole. No survivorship right exists. Joint tenancy requires equal shares and survivorship. Tenancy by entirety is for married couples only.
5. To identify possible encroachments, a buyer should insist upon
A. a plat.
B. a survey. Correct
C. title insurance.
D. a special warranty deed.
Explanation
A survey physically locates boundaries, improvements, and encroachments. Title insurance covers defects in title, not physical issues. A plat shows lot layout but not current conditions. Special warranty deed limits seller liability.