1. A property is listed for $219,900. An offer of $210,000 is submitted to the listing licensee. The offer includes a free-standing stove and refrigerator. The seller accepts the price and the refrigerator, but is not willing to leave the stove. The listing licensee makes the change in the contract to exclude the stove. The seller signs and initials the change. The listing licensee contacts the buyer’s licensee by phone regarding the change. The buyers orally accept the change. Which of the following is true regarding this situation?
A. The original offer was rejected and the seller’s counteroffer must be accepted in writing. Correct
B. Neither the seller nor his licensee has a right to make any changes to the original offer.
C. The offer has been signed and accepted by all parties and creates a valid contract.
D. The buyer’s licensee can sign the change regarding the stove on behalf of the buyer.
Explanation
Changing terms creates a counteroffer that rejects the original. Real estate contracts require written acceptance under statute of frauds. Oral acceptance is invalid. Licensee cannot sign for buyer.
2. Under the terms of a land contract, the buyer is entitled to an executed deed to the property upon
A. acceptance of the purchase offer.
B. taking possession of the property.
C. making the down payment.
D. making final payment to the seller. Correct
Explanation
Land contract gives equitable title during payments. Legal title transfers only when full payment is made. Possession and down payment do not convey deed.
3. Planned unit development zoning is also termed
A. buffer zoning.
B. luster zoning.
C. downzoning. Correct
D. exclusionary zoning.
Explanation
PUD allows mixed uses and flexibility, often called cluster zoning to group buildings. Buffer separates uses. Downzoning reduces density. Exclusionary limits types.
4. In preparing for a listing presentation for a newly constructed home, an agent needs to know all but which one of the following on comparable homes?
A. date of most recent sale
B. sale price
C. assessor’s value Correct
D. square footage
Explanation
CMA uses actual sales data: date, price, size. Assessor’s value is not market-based and often outdated or formula-driven.
5. A listing agent who intentionally conceals a material defect may be liable to the buyer for
A. falsification.
B. fraud. Correct
C. misrepresentation.
D. negligence.
Explanation
Intentional concealment of known material fact is fraud. Misrepresentation can be innocent. Negligence is careless. Falsification is altering documents.