1. One of the things a real estate sales contract MUST contain to be legally binding is:
A. Termite clause
B. List of personal property
C. Property description Correct
D. Commission provision
Explanation
A legally binding real estate sales contract must include a clear property description to identify the subject property uniquely, ensuring all parties understand what is being transferred. A termite clause is not universally required, though it may be included in some regions. A list of personal property is optional and only included if personal items are part of the sale. A commission provision relates to the broker's agreement, not the sales contract itself.
2. A tract of land 80 feet wide and 175 feet deep sold for $4 per square foot, plus $12 for each front foot. What was the price of the land?
A. $56,960 Correct
B. $58,100
C. $168,320
D. $168,960
Explanation
To determine the price, the area is first calculated as 80 ft × 175 ft, which equals 14,000 square feet. At $4 per square foot, the area cost is 14,000 × $4, resulting in $56,000. The front foot cost is calculated as 80 ft × $12, which equals $960. The total price is then $56,000 + $960, equaling $56,960. Based on this calculation, options B, C, and D are incorrect, and option A is the closest to the computed value.
3. In order to advertise a property through social media, a licensee MUST:
A. Place a copyright notice on all property pictures
B. Obtain written authorization from the seller Correct
C. Ensure the advertisements are mobile-compliant
D. Include links to the sales team's website
Explanation
A licensee must obtain written authorization from the seller before advertising a property to ensure compliance with the listing agreement and agency law. Copyright notices are not required for advertising photos. Mobile compliance is a best practice but not a legal requirement. Including links to a website is optional and not mandated.
4. A buyer emails the buyer's agent a copy of the buyer's W-2 form and paystubs containing the buyer's date of birth and social security number. The buyer's agent forwards the entire email to the seller's agent. Which of the following statements is accurate?
A. The buyer's agent may be liable for disclosing confidential information. Correct
B. The buyer's agent is not liable for disclosing confidential information because the communication is electronic.
C. The seller's agent may be liable for disclosing confidential information.
D. The real estate commission will automatically place the seller's agent and the buyer's agent licenses on probation.
Explanation
The buyer's agent may be liable for disclosing sensitive personal information, such as a Social Security number, without the buyer's consent, violating confidentiality obligations under agency law and privacy regulations. Electronic communication does not exempt liability (B). The seller's agent is not responsible for the disclosure (C). The real estate commission does not automatically place licenses on probation without an investigation (D).
5. A portable storage shed MAY NOT be removed when a property is sold if:
A. Was on the property at the time of the listing
B. Was included in the listing contract and purchase agreement Correct
C. Was on the property when the seller bought it
D. Is a trade fixture that must remain
Explanation
If the shed is explicitly included in the listing contract and purchase agreement, it is considered part of the real property and must remain. Being on the property at listing (A) or when the seller bought it (C) does not inherently make it non-removable. Trade fixtures (D) are typically removable by tenants, not applicable here.