1. When Jimmy bought his first home, he signed a promissory note to his lender. What was Jimmy agreeing to when he signed that?
A. Jimmy was promising not to dispute any foreclosure actions taken by the lender in the event of default.
B. Jimmy was temporarily conveying title to the lender.
C. Jimmy was acknowledging the debt he was taking on and agreeing to the terms of the note. Correct
D. Jimmy was securing the loan with the home.
Explanation
A promissory note is like a signed promise to repay a debt, outlining the loan's terms. Jimmy agreed to repay the lender according to the note's conditions, distinct from foreclosure disputes, title transfers, or securing the loan, which involve other documents like a mortgage or deed of trust.
2. What should an agent do if their agency relationship changes during a real estate transaction?
A. disclose the change within one week
B. disclose the change only if a tricky situation that warrants disclosure arises
C. disclose the change immediately to their clients and obtain new informed consent, if applicable Correct
D. not disclose the change; they are already in an agency agreement, so changes are irrelevant
Explanation
Transparency is key in agency relationships, like keeping clients informed during a deal. Immediate disclosure of changes ensures trust and compliance, often requiring new consent, unlike delayed, conditional, or non-disclosure, which could breach fiduciary duties.
3. Janay lives in and is licensed as a salesperson in North Carolina but wants to practice real estate in Virginia. Which of the following is true?
A. The REB does not recognize or transfer licenses from other states, so Janay will need to complete all salesperson pre-licensure requirements. Correct
B. Janay only needs to take and pass the state portion of the licensing exam.
C. The REB requires real estate professionals to have residency in the state of Virginia, so Janay cannot practice in Virginia.
D. The REB will require Janay to take a special licensing course for out-of-state residents.
Explanation
Virginia's Real Estate Board treats out-of-state licensees like new applicants, requiring Janay to complete all pre-licensure steps, like starting from scratch. Residency isn't mandatory, and there's no special course or state-only exam option for license transfer.
4. Which of these can serve as a legal remedy for a breach of contract?
A. novation
B. specific performance Correct
C. assignment
D. accord and satisfaction
Explanation
Specific performance is like a court ordering a party to fulfill a contract, such as completing a sale, as a remedy for breach. Novation replaces contracts, assignment transfers rights, and accord and satisfaction settle disputes, but only specific performance directly enforces the original agreement.
5. In terms of the scope of authority granted, what are the three classifications of agency?
A. special, general, and universal Correct
B. special, general, and complete
C. special, implied, and universal
D. implied, general, and universal
Explanation
Agency classifications are like levels of trust: special (limited tasks), general (broad authority), and universal (full authority). Implied or complete aren't standard categories, making the trio of special, general, and universal the clear framework.