Post Broker Questions

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Questions and Answers – Post Broker Course

 

MODULE ONE    
1. A licensee who is paid in a lump sum and who is personally responsible for paying his or her own taxes is probably a(n): independent contractor.
2. Which of the following statements best explains the meaning of this sentence: “To recover a commission for brokerage services, a broker must be employed as the agent of the seller”? The broker must have asked the seller the price of the property and then found a ready, willing and able buyer.
3. When acting as an employee rather than an independent contractor, a salesperson is obligated to: assume responsibilities assigned by the broker.
4. The real estate business is driven by small business.
5. The MLS was created in the 60s
6. In the 1950s, buyers were pretty much on their own.
7. The nature of real estate brokerage services, particularly those provided in residential sales transactions, has changed significantly in recent years.
8. To be successful, a licensee has to know not only his or her product (real estate) but also how to run a business.
9. Whether a salesperson is associated with a broker as an employee or as an independent contractor is important: for income tax purposes.
10. Jo is a licensed salesperson who completed a difficult transaction. Jo may accept a bonus from: her own broker
11. At their regular monthly meeting, a group of local brokers agree that the introduction of “discount brokerages” in their area would be bad for business. Thus, they informally agree to charge commission rates no lower than 6 percent for the coming year; there was, however, no limit placed on the amount of commission above that figure the brokers could charge. This type of “friendly” agreement is: against the law.
12. A real estate broker is said to earn a commission from a seller when: the sale is closed.
13. It is illegal for a broker to represent both the buyer and seller in the same transaction unless: the broker obtains the prior consent of both parties.
14. The type of agency a real estate broker and seller enter into when they execute a listing agreement is generally considered to be: a special agency.
15. The relationship created between the real estate broker and the principal places the broker in the position of: a fiduciary.
16. A statement made by a broker to a buyer that “This apartment has one of the most fantastic views of the city,” when, in fact, the apartment has only poor, partial views, would be an example of: puffing.
17. Bob is a salesperson employed by Tomorrow Realty. Helen is a salesperson employed by Condominium Sales Realty. Tomorrow Realty and Condominium Sales Realty are members of the same multiple-listing service. Helen secures a listing for Condominium Sales Realty. It is placed with the multiple-listing service, and Bob produces the sale for Tomorrow Realty. Bob can collect a commission from: Tomorrow Realty
18. Condominium Sales Realty employs Paul as a salesperson. It does not require him to attend sales meetings or spend certain hours in the office. Paul is not reimbursed for normal expenses and is responsible for paying his own income and social security taxes. His status is best described as that of: an independent contractor.
19. The listing broker discovered that the seller’s house was infested with termites. However, the seller was unaware of the problem. The broker knowingly failed to disclose it to a buyer. In this situation: the broker can be held liable for damages.
20. A broker must obey all lawful instructions given to him or her by the principal. If any such instructions violate the law, the broker should: withdraw from the transaction.
21. A broker has established the following office policy:  “All listings taken by any salesperson associated with this real estate brokerage must include compensation based on a 7 percent commission.  No lower commission rate is acceptable.”  If the broker attempts to impose this uniform commission requirement, which of the following statements is true? The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm.
22. Jim and Ruth are both salespersons who work for NMN Realty.  One afternoon, they agree to divide their town into a northern region and a southern region.  Jim will handle listings in the northern region, and Ruth will handle listings in the southern region.  Which of the following statements is true regarding this agreement? The agreement between Jim and Ruth does not violate antitrust laws.
23. After a particularly challenging transaction finally closes, the client gives the listing agent, Louise, a check for $500 “for all your extra work.”  Which of the following statements is accurate? Louise may receive compensation only from her broker.
24. Jim and Ruth are both salespersons who work for NMN Realty.  One afternoon, they agree to divide their town into a northern region and a southern region.  Jim will handle listings in the northern region, and Ruth will handle listings in the southern region.  Which of the following statements is true regarding this agreement? The agreement between Jim and Ruth does not violate antitrust laws.
25. A broker would have the right to dictate which of the following to an independent contractor? Commission rate the person would receive
26. A real estate broker learns that her neighbor wishes to sell his house.  The broker knows the property well and is able to persuade a buyer to make an offer for the property.  The broker then asks the neighbor if the broker can present an offer from the prospective buyer, and the neighbor agrees.  At this point, which of the following statements is true? The neighbor is not obligated to pay the broker a commission.
27. The goal of planning is to ensure that the right things happen in the organization. This statement is true.
28. “Customer” shall mean that person not represented in a real estate transaction. It may be the buyer, seller, landlord or tenant.  
29. “Customer” shall mean that person not represented in a real estate transaction. It may be the buyer, seller, landlord or tenant.  
30. An ___________ is needed by any business that retains employees EIN
31. Which of these is NOT a way to get business? Solicit your strengths
32. When a client or customer asks that we recommend a service provider, always; Recommend three and let them follow up
33. What is the most proven method of building and growing a successful real estate practice? A method based around asking for and being given referrals
34. What would be a good first marketing activity to ‘touch’ your Circle of Influence? Mail them a personal note telling them about your new career choice
35. What best describes a “Circle of Influence?” A list of people over whom I have influence
36. Which of the following would most buyers and sellers consider important in selecting a real estate professional? Trust
37. Define: Public Relations Taking advantage of free press coverage to promote your firm, especially when someone in your organization has made some admirable social contribution that benefits the community, such as organizing or attending a philanthropic event
38. Potential clients received through the agent’s good will and treatment of current clients Referrals
39. Which groups should be included in your “sphere of influence?” Union officials

Postal workers

Personnel managers

40. Often considered the most effective way to advertise homes and your brokerage to the public on a daily or weekly basis. Newspapers/ Internet
41. A time-tested step-by-step method used in writing ads; this formula gets the job done AIDA – Attention, Interest, Desire, and Action
42. Title companies derive directions for closing from which of the following documents? The purchase contract

The sale contract

The closing instructions Amendments to the purchase and sale contract

43. If the purchase is not completed due to a default by the seller and the earnest money deposit is returned to the buyer, the seller’s broker may seek compensation, if any, from: seller
44. __________ is the preferred business. referral business
45. A plan can be a great motivator, but only as long as the goals are attainable. True
46. If an owner refuses to pay the broker an earned commission, the broker may properly seek relief by: bringing court action
47. Broker Betty at an open house meets a young couple looking to purchase their first home. The couple asked if the Broker thought they had enough income to qualify for a loan to purchase the property. Realizing this information is of a confidential nature Broker Betty makes the agency disclosure that her office policy and State statute require. The buyers are very skeptical about making a commitment and have been coached by family members not to sign anything. They refuse to sign the signature block on the Brokerage Disclosure to Buyer form. Betty should: make a note of the date and time the disclosure was made and reference the fact that the buyers declined to sign the form – then have the discussion.
48. Associate Broker Jane Holmes is a party to which executory contract? None of these
49. Common law independent contractors are not entitled to sick pay or to participate in the broker’s pension and profit sharing plans, wage continuation plans, health and accident insurance plans or qualified group insurance programs unless permitted by the broker to pay premiums to participate in group health insurance. True
50. ________ advertising is illegal Blind
51. A broker may not pay the license fees or membership dues of independent contractor salespeople although he or she is free to pay those of employees and statutory independent contractors. True
52. Because salespeople have their own motives for working, their individual views of success and what you need for the company may be different. True
53. Buyer Wilson and Seller Smith have a voided sales contract. They have both agreed to disperse the funds, against the suggestions from Broker Bob. Broker Bob should: disperse the escrowed money, as directed by seller, and as agreed between buyer and seller
54. Earnings on the IREBEA accounts may be made available to or utilized by a broker. False
55. There are federal, state and local legal considerations concerning the hiring of a personal assistant. True
56. Who is not subject to the truth in lending act? Lenders that aren’t advertising
57. One requirement for valid transfer of title to property by deed is words of conveyance
58. Creates a Voidable Contract – Match CONTINGENCIES
59.    
60.    
61. “IREBEA” means Interest on Real Estate Broker Escrow Accounts True
62. Mr. Ackerman leased a property for five years to Mr. Bones. During this term, Mr. Ackerman died and then Mr. Bones discovered that Mr. Ackerman’s interest was a life estate. The owner of the property was correct in advocating which of the following? Mr. Bones’ interest was terminated upon Mr. Ackerman’s demise
63. No common law independent contractor may be required by the broker to attend sales training, instruction and indoctrination courses. This statement is very true.
64. Which of these in NOT the best advertising policy to stimulate the most interest? give away minimal amounts of information initially
65. Which of the following deeds contains no express or implied warranties, or covenants? Quitclaim deed
66. When soliciting listings of homes in an area where minorities had recently purchased homes, Broker A told his salespeople to solicit only Caucasian owners for listings as they will likely want to leave the area. This action would be regarded as blockbusting
67. All of the following forms of discrimination are prohibited under the 1968 federal fair housing act except sexual orientation.
68. In compliance with the ADA, all architectural barriers in existing facilities must be removed: if removal is “readily achievable”
69. The word improvement refers to: Streets

Sidewalks

sewage and drainage systems

70. Under the law of agency, a real estate broker owes all of the following duties to the principal except: advertising
71. If a Seller is in default of the terms of the Contract to Buy & Sell: The buyer may cancel or sue for specific damages.
72. Just as an architect could not build a structure successfully without a plan, the operations manual must have a plan. True
73. All of the following are characteristics of an independent contractor relationship with a broker EXCEPT : you do not need a license
74. The practical essentials of a valid contract are: offer, acceptance, consideration, competent parties, legality of the object
75. A buyer wishes to give a post-dated check with an offer. The broker should: inform the seller as to the form of the deposit
76. _______________is an agreement (written, verbal, or inferred from conduct) among competitors that raises, lowers, or stabilizes prices or competitive terms. Price fixing
77. The likelihood of policy and procedures problems increases when the broker is wearing two hats. True
78. Working or prospect in an area of interest is also known as ______? Farming
79. A referral is also known as_______chain? Endless
80. At its most basic, real estate brokerage is about matching a home seller with a home buyer.
81. A requirement that a salesperson accept floor time assignments from the broker is not consistent with the independent contractor status. True
82. Centers of influence are called _________. Bird Dogs
83. In order to compete in modern markets, competitors sometimes need to collaborate.
84. Market power is defined as: The power of a firm to control the market price of its product.
85. An offer from Fred has been accepted by seller Tom. Fred decided to put his work tools into the garage before the transaction closed.   What should Fred’s agent tell him? Remove the tools.
86. Agent Carol just received her third low offer on one of her listings this morning. She believes the Seller will not accept any of them. What should Agent carol do? Present all offers as soon as practicable.
87. Buyer Tom’s offer has been accepted by the seller. Buyer Tom has requested entry to the property so that he can paint it before his family moves in. What should his agent tell Tom? He cannot have access to the property before it closes and is recorded.
88. When is a broker relieved of presenting an offer? When the offer is obviously frivolous and the agent is acting on instructions from the seller.
89. Under the law of agency, a real estate broker owes all of the following duties to the principal except: advertising
90. The duty owned from the agent to his/her client is fiduciary duties.
91. The law that requires contracts in real estate to be in writing is Statute of Frauds
92. It is not a good practice to let a buyer take possession of the property before closing.
93. The type of agency a real estate broker and seller enter into when they execute a listing agreement is generally considered to be: a special agency.
94. The relationship created between the real estate broker and the principal places the broker in the position of: a fiduciary.
95. Generally, assistants will be considered employees if the broker or salesperson hiring them retains the right to control what the assistants do and how it is done. True
96. The way to manage independent contractors is to encourage them and show how they will benefit from your suggestions.
97. Earnest money deposits should be deposited into a trust account by the end of the next business day.
98. A dual agency is in effect when both the buyer and seller accept dual agency and acknowledge the dual agency agreement in writing.
99. Which of the following uniform transparent accounting standards must be used in regard to trust accounts? Standard Accounting Practice
100. The phrase, “procuring cause” is most important to real estate agents in a Open Listing.
101. Under federal fair housing laws, it is legal to prohibit which of the following in a housing unit? Drugs
102. Which is an example of an agent’s fiduciary responsibilities? Accounting

Disclosure

Confidentiality

103. The effective date of the MAR contract is the date: On which the buyer or seller last signs the contract
104. The expiration, suspension or revocation of a responsible broker’s license shall automatically suspend the license of every real estate licensee currently under the supervision of that broker. In such cases a licensee may transfer to another responsible broker.
105. a licensee may transfer to another responsible broker. new disclosure forms will be acknowledged by all parties involved.
106. In dual agency the buyer shall give his/her consent by signing the MREC Dual Agency Confirmation Form which shall be attached to the offer to purchase
107. “Fiduciary Responsibility” are those duties due the principal (client) in a real estate transaction are Loyalty, Obedience, Disclosure, Confidentiality, Reasonable Skill, Care and Diligence and Full Accounting.
108. Each person is in charge of his or her own behavior, and everyone else is a bystander. True
109. “Disclosed Dual Agent” is when an agent representing both parties to a real estate transaction with the informed consent of both parties, with written understanding of specific duties and representation to be afforded each party.
110. Special situations, where unusual facts exist or where one or more parties involved are especially vulnerable, could require additional disclosures not contemplated. In such cases, brokers should seek legal advice prior to entering into an agency relationship.
111. f a broker, as escrow agent, accepts a check and later finds that such check has not been honored by the bank on which it was drawn, the broker shall immediately notify all parties involved in the transaction.
112. Monies received in a trust account on behalf of clients or customers are not assets of the broker; however, a broker may deposit and keep in each escrow account or rental account some personal funds for the express purpose of covering service charges and other bank debits related to each account.
113. An agent made real estate signs to put in the front yard of his client’s home. He did not put the name of his responsible broker or name of his real estate firm on the sign. This is a “Blind Ad” and is in violation.
114. In addition to disclosing their licensed status on all advertisements, licensees are required to disclose their license status on all contracts for real estate in which they have an ownership interest.
115. A real estate broker must keep on file following its consummation complete records relating to any real estate transaction for three years.
116.    
117. The Commission mandated disclosure form may be duplicated in content and size but not altered. True
118. Every contract must reflect whom the broker represents by statement over the signatures of the parties to the contract.
119. The responsible broker must hang in the office all licenses of the licensees he is responsible for
120. No licensee shall pay any part of a fee, commission or other compensation received by such licensee in buying, selling, exchanging, leasing, auctioning or renting any real estate No licensee shall pay any part of a fee, commission or other compensation received by such licensee in buying, selling, exchanging, leasing, auctioning or renting any real estate
121. A responsible broker must maintain an office and display the license therein. If the broker has more than one office the broker shall display a branch office license in each branch office.
122. When advertising a property shared by an out of state broker he name of the Mississippi broker must be listed.
123. Brokers may give legal advice Never.
124. The following may be exempt from having a license Receiver, trustee, administrator and public Officers.

Those dealing in oil/gas leases and mineral rights.

125. It is unlawful to carry out the business of a broker or salesperson without a license.
126. Who are exempt from having a real estate license? A Public Official holding an auction.
127. A tenant who executed a lease is the lessee
128. When you do venture onto the sales floor with a contest, be prepared to monitor the salespeople very carefully. True
129. A written listing agreement must have: a definite expiration date and may not be renewed automatically.

show the price and terms the seller will accept.

indicate the amount of the broker’s commission.

130. Which of the following would cancel a listing agreement? Property owner’s death.
131. A buyer depended on his agent’s information that the property the buyer is considering making an offer on is in a tax area of the lowest taxes in the city. Based on that information, an offer was made.   Before the transaction closed the buyer found out the taxes in that area are some of the highest in the state.   The buyer may seek to rescind the contract based on misrepresentation.
132. One day after a broker’s listing on a property expired, the seller hired a new agent and that agent put the property on the MLS. A third agent called the broker with the expired listing and asked to see the property.   The broker should respond by telling the third agent who called to see the property that he no longer is the agent for the seller.
133. Inducing panic selling in a neighborhood is blockbusting.
134. A buyer wants to make an offer based on complex financing. The agent should suggest the buyer consult an attorney to furnish the wording.
135. When taking a listing, the agent should verify square footage.
136. The client would like to sell his house after owning it for one year. The client let the agent know that the property was treated for termites 14 months ago. What should the agent do? Tell the client to disclose that information.
137. A written agreement between a buyer and seller when the buyer wants to buy and the seller wants to sell is called a contract.
138. A dual agency is in effect when both the buyer and seller accept dual agency and acknowledge the dual agency agreement in writing.
139. The most important duty a property manager has is increasing the property owner’s net income.
140. A property manager’s duties typically include all of the following except investing the property owners funds.
141. The phrase, “procuring cause” is most important to real estate agents in a Open Listing.
142. Which deed is typically used to cure a defect on title? Quitclaim deed
143. A grantor signed a deed and then a notary acknowledged the document. The notary is making sure the person signing is she or he claim to be and that their signature is? Voluntary
144. The seller of a property purchased the property when he was single. He is now married and would like to sell that property. What type of deed would the new spouse need to sign to convey their inchoate (incomplete) interest in the property? Quitclaim
145. A rental agent has allowed a person dependent on a wheelchair to make necessary, minor changes to a rental property, these changes are referred to as? Reasonable accommodations or modifications
146. Which laws provide guidance for making public facilities accessible? ADA
147. The city acquires a tract of land for a highway. What power will they exercise? Eminent Domain
148. Outdated plumbing fixtures are an example of? Curable functional obsolescence
149. What is a requirement of a universal agent? An executed power of attorney agreement
150. An agent had an exclusive right to sell listing agreement with a client on a home listed for $100,000.   The agent knew that the seller would actually take $92,000 for the house due to the seller being under duress.   During an open house, a buyer came to view the property. The potential buyer loved the house but could not afford more than $90,000.   The agent encouraged the buyer to submit an offer. The agent also informed the buyer to offer $90k because she knew the seller would accept $92,000. Did the agent violate her agency relationship with the seller? Yes. Regardless of intent, an agent can never reveal the lowest amount a seller will take for a property.
151. A seller had her house listed. Her agent received an offer on the property in which she presented to the seller.   While the seller was considering the offer, the agent received a second offer on the property.   According to the agent’s office policy, the agent does not present the second offer until the seller has accepted or rejected the first offer. In this scenario, the agent’s actions are? Not allowed as all offers are to be presented to the seller upon the agent receiving them
152. Megan’s Law requires which of the following? The disclosure of convicted sex offenders in a community.
153. A buyer hired an agent under an exclusive buyer’s agency agreement. The buyer client wanted to submit an offer on a house that had been stigmatized by a recent murder-suicide. What is the agent’s ethical responsibility to her client? Disclose it prior to signing any offer to purchase.
154. A seller had a fire in their kitchen one year ago. The burned joists were treated and sealed.   Will the seller have to disclose these repairs? Yes, known latent defects still must be disclosed.
155. Who is responsible for completing the Property Condition Disclosure Statement? The seller
156. A tenant choose to purchase an orchard on an installment land contract for deed with a 15 year term loan. During the 15 years, what type of title does the vendee have in the orchard? Equitable
157. A purchaser submitted an offer to purchase on a house with the stipulation that the sellers pay for the termite inspection. This stipulation is considered? A contingency
158. An exclusive right to sell contract is considered a unilateral contract and? An employment contract.
159. A buyer had an offer accepted by the seller. On Feb. 10, both parties agreed to an amendment extending the closing. The transaction was completed on March 15.   What is the status of the contact on March 16th? Executed
160. A seller gave an agent an exclusive right to sell for a 6 month period. Two weeks later, the seller signed an open listing with another agent who produced the buyer. Who does the seller owe a commission to? Both agents.
161. A salesperson listed a client’s home under an exclusive right to sale contract. Which of the following is true? The listing belongs to the salesperson’s broker.
162. A broker presented an offer to a seller with an additional stipulation that the seller provide a $5000 flooring allowance. The seller refused the offer. Can the broker collect his earned commission? No, there was not a meeting of the minds.
163. A listing agent and seller knew that the HVAC unit was about to burn up. The buyer did not disclose it on the Property Condition Disclosure Statement. The seller’s agent made no comments to the condition of the HVAC unit. The property was listed “as is”. Are they free from liability on a failure to disclose a material fact with an “as is” provision? No, “as is” does not clear them from liability on a known material defects.
164. Of the following listings, which one is a broker guaranteed a commission regardless of who sells the property? Exclusive right to sell listing
165. The broker protection clause in a listing agreement states? The broker is entitled to a commission if the broker introduced the buyer to the property after the expiration of the contract and within the protection clause timeframe.
166. Which of the following would not terminate a listing with a broker? A sharp rise in the interest rate
167. A contract that has no legal object is considered? Void
168. Of the following, what constitutes an open listing? The seller can employ any number of brokers.
169. A seller and an agent have an open listing, what type of agreement is this? Unilateral
170. You order dinner at a fine dining restaurant. What type of ‘contract’ do you have in reference to your actions? Implied
171. What is the duty of a listing agent upon receiving several offers on a property they have listed? Deliver each offer to the seller immediately upon receipt.
172. On a For Sale By Owner, the owner of the property gives a buyer an option to purchase the property.   While the option is in effect, the option is considered? A unilateral contract
173. A broker presented an offer to her seller. The Seller rejected it. The broker presented a second offer. Prior to the seller accepting or countering the second offer, the buyer calls the agent and rescinds the offer. At this point in time, there is?  
174. MATCH: Ratification A method of creating an agency relationship in which the principal confirms the conduct of someone who initially acted without authority.
175. Everything in real estate has to be in writing according to the? Statute of Frauds
176. When qualifying a prospective buyer or renter, a licensee may question the prospect about rental history.
177. Which of the following is a broker who attempts to find a buyer for a property listed by another broker. cooperating broker
178. The federal law (often referred to as the Fair Housing Act) that prohibited discrimination in housing based on race, creed, or national origin Civil Rights Act of 1968
179. A real estate broker appointed by a buyer to find property for the buyer. buyer’s agent.
180. Which is an example of an agent’s fiduciary responsibilities? Both accounting and disclosure
181. What type of listing could create the most competition between the owner and listing agent selling the home? An exclusive agency agreement
182. To create Agency, there must be delegated authority and consent to act.
183. MATCH: Subagent The agent of an agent; associated salesperson or cooperating broker in relation to the principal.
184. A real estate broker wants to end racial segregation. As an office policy, the broker requires that salespersons show prospective buyers from racial or ethnic minority groups only properties that are in certain areas of town where few members of their groups currently live. The broker has prepared a map illustrating the appropriate neighborhoods for each racial or ethnic group. Through this policy, the broker hopes to achieve racial balance in residential housing. Which of the following statements is true regarding this broker’s policy? Because the effect of the broker’s policy is discriminatory, it constitutes illegal steering regardless of the broker’s intentions.
185. There are financial challenges to running any operation, as well as personnel issues such as how many people to hire and in what capacity. True
186. Which of the following would not be permitted under the federal Fair Housing Act? The owner of a 20-unit residential apartment building rents to men only.
187. The act of directing home seekers toward or away from particular areas either to maintain or to change the character of the neighborhood is: Steering.
188. Match: Special agent An agent who is authorized to represent the principal in one specific transaction or business activity only.
189. MATCH: Ready, willing and able buyer One who is prepared to buy property on the seller’s terms, is ready to take positive steps to consummate the transaction and has the financial ability to do so.
190. Match: Puffing Exaggerated or superlative comments or opinions not made as representations of fact.
191. MATCH: Listing agreement A contract between a property owner and a real estate broker by which the broker is employed as agent to sell the owner’s real estate on the owner’s terms within a set period of time.
192. The IRS does not require the broker to pay social security or withhold tax for an independent contractor. As a salesperson, though, the licensee may not open an escrow account or take a listing in his or her own name. True
193. MATCH: Law of agency The body of law that governs the rights and duties of principals, agents and third parties.
194. MATCH: General agent An agent who is authorized to represent the principal in a specified range of matters.
195. MATCH: Fiduciary One who is placed in a position of trust and confidence, as an agent is to his or her principal.
196. MATCH: Express agreement An oral or written contract in which the parties state the contract’s terms and express their intentions in words.
197. Through the 1950s, real estate brokerage firms were primarily one-office, minimally staffed, family-run operations. True
198. MATCH: Fraud The intentional misrepresentation of a material fact so as to harm or take advantage of another person.
199. MATCH: Commission Payment to a broker for services rendered, such as in the sale or purchase of real property; usually a flat fee or a percentage of the selling price.
200. Shown by their intentions in WORDS EXPRESS CONTRACT – MATCH
201. BREACH OF CONTRACT – MATCH Violation of any of the terms or conditions of a contract without legal excuse
202. DISCLOSURE – Match Part of Sales Contract
203. After a particularly challenging transaction finally closes, the client gives the listing agent, Louise, a check for $500 “for all your extra work.” Which of the following statements is accurate? Louise may receive compensation only from her broker.
204. Jim and Ruth are both salespersons who work for NMN Realty. One afternoon, they agree to divide their town into a northern region and a southern region. Jim will handle listings in the northern region, and Ruth will handle listings in the southern region. Which of the following statements is true regarding this agreement? The agreement between Jim and Ruth does not violate antitrust laws.
205. A dual agency is legal and in violation of the fiduciary duty of loyalty unless both parties give their prior consent based on full knowledge of all the facts. False
206. A real estate broker learns that her neighbor wishes to sell his house. The broker knows the property well and is able to persuade a buyer to make an offer for the property. The broker then asks the neighbor if the broker can present an offer from the prospective buyer, and the neighbor agrees. At this point, which of the following statements is true? The neighbor is not obligated to pay the broker a commission.
207. If the broker advertises and attempts to make a sale but does not sell the property, he or she has not fully performed the listing agreement with the seller. Although the broker will usually collect commission at closing, it is generally said that the broker earns the commission when a ready, willing and able buyer is produced. True
208. Which of the following statements best explains the meaning of this sentence: “To recover a commission for brokerage services, a broker must be employed as the agent of the seller”? The broker must have asked the seller the price of the property and then found a ready, willing and able buyer.
209. If a licensee buys real property, which of the following statements is (are) true? The seller should be given a “Working with a Real Estate Broker” form.
210. One of the best sources for verifying information about an owner’s correct legal name and a property’s legal description is: A copy of the deed
211. Some states has a licensing authority—a commission, a department, a division, a board or an agency—for real estate brokers and salespersons. False
212. Joe may receive compensation only from her own broker. The grateful seller should send the bonus to the broker, who will pass it all on to Joe or retain some of it for office expenses, according to their agreement. True
213. The relationship between a broker and a seller as evidenced by a listing agreement is a special agency—the broker is retained to perform only those services and for the length of time specified in the agreement. General agencies are entered into so that an agent can perform a broad range of activities on behalf of a principal. An ostensible agency is a form of implied, rather than expressed, agency. True
214. A broker, as agent of his or her principal, is a fiduciary and owes the principal certain duties and obligations. For example, an agent learns many personal facts about his or her principal and may not disclose any confidential matters without the approval of the principal. true
Module TWO    
215. If an owner refuses to pay the broker an earned commission, the broker may properly seek relief by: bringing court action
216. One important element of an estate held in joint tenancy is: ownership has to be equal
217. When a grantor does not wish to convey certain rights of ownership, he or she: may note the exceptions on the deed
218. William Boyd and his daughter Jane Boyds buy a tract of land for cash, and the property is deeded to them with rights of survivorship. William and Jane are: joint tenants
219. The remnant of an estate that the grantor holds after he’s granted a life estate to another person, if the estate will return to the grantor, is called: reversionary interest
220. Which of the following deeds contains no express or implied warranties, or covenants? Quitclaim deed
221. When a property is sold and several removable fixtures are sold, such as refrigerators and radiator covers, upon delivery of the deed, the seller should also deliver a(n): bill of sale
222. If a Seller is in default of the terms of the Contract to Buy & Sell: The buyer may cancel or sue for specific damages.
223. All of the following are forms of evidence of title EXCEPT abstract and attorney’s opinion
224. A buyer wishes to give a post-dated check with an offer. The broker should: inform the seller as to the form of the deposit
225. Another name for personal property is chattel
226. A promissory note requires payments to be made as agreed upon.
227. A trust deed and note are personal property
228. Who determines how title should be vested on a deed? The buyer
229. The buyer and seller must be present for the closing at the same time It is not necessary.
230. A Bill of Sale is used when personal property is involved in the transaction.
231. The information from a lender on the assumption of a mortgage should be compared with the Purchase Agreement
232. It is the escrow agent’s job to determine when possession is scheduled.
233. In a 1031 exchange escrow, an escrow agent certifies that the escrow qualifies for a 1031 tax free exchange.
234. The act of improperly segregating the funds belonging to the agent from the funds received and held on behalf of another; the mixing of separate and community property. commingling
235. A buyer made an offer on a property and refused to present an earnest money deposit Earnest money deposits are not required.
236. Date of possession is used in the closing to determine the date used for prorations.
237. What is a client level duty relating to account of earnest money, actions, etc. Accounting
238. Which of the following is not a function of the antitrust laws? stop price fixing
239. Earnest money deposits should be deposited into a trust account by the end of the next business day.
240. What is a Bill of Sale? A document used to convey personal property
241. A prospective Buyer has the legal right to demand the return of his earnest money deposit back before the offer is accepted.
242. An escrow agent has the responsibility to review the following, with the parties involved in a real estate transaction the Title Report
243. An Earnest Money Agreement usually does not reveal the following title exceptions.
244. The closing attorney or escrow agent must report the details of the closing on? 1099S
245. After an accepted offer, the buyer was unable to obtain a mortgage.   Both parties agreed to cancel the contract. Who does the earnest money deposit belong to? The purchaser is entitled to the entire amount of the earnest money.
246. What is the minimum number of parties to an escrow? 3
247. Whenever money is put into a Broker’s Trust Account, the broker must keep detailed accurate records.
248. Usury Law is defines as the maximum amount of interest which can be charged on a security instrument
249. Which of the following uniform transparent accounting standards must be used in regard to trust accounts? Standard Accounting Practice
250. Before the close of escrow, who most likely will order the survey? the closing agent
251. When is it necessary to have closing documents recorded prior to disbursement of escrow funds? in almost all situations
252. An escrow is an arrangement that: Holds documents

Holds funds

Creates documents to affect a transfer of interest in property.

253. It is most important to follow the accounting procedures for escrow accounts that are established by The company’s broker.
254. If a broker, as escrow agent, accepts a check and later finds that such check has not been honored by the bank on which it was drawn, the broker shall immediately notify all parties involved in the transaction.
255. The determination of whether a client’s funds are nominal in amount or to be held for a short period of time rest in the sound judgment of each broker, and no charge of ethical impropriety or other breach of professional conduct shall attend a broker’s exercise of judgment in that regard.
256. An earnest money deposit pertaining to a cooperative agreement must be held in escrow by the Mississippi broker unless both the buyer and seller agree in writing to relieve the Mississippi broker of this responsibility.
257. When is an escrow account required? For higher-priced mortgage loans secured by a first lien on the borrowers principal dwelling.

For conforming conventional loans for greater than 80% of the appraised property value.

For higher-priced mortgage loans secured by a first lien on the borrowers principal dwelling.

 

258. One of the best sources for verifying information about an owner’s correct legal name and a property’s legal description is: A copy of the deed
259. The minimum description requirement in a contract for a platted subdivision includes the subdivision name and all of the following except: The number of acres in the parcel
260. The effective date of the MAR contract is the date: On which the buyer or seller last signs the contract
261. Which of the following statements is (are) true of a buyer’s earnest money deposit? While a postdated check is not illegal, the broker must note clearly on the deposit receipt that the check is postdated, and he must get the seller’s approval before the contract is signed
262. A bulk sale involves the sale of inventory
263. One deed of trust covering two or more parcels of land located in different counties must be recorded in all appropriate counties
264. A tenant who executed a lease is the lessee
265. Preparing documents or escrow provisions that go beyond the customary duties of an escrow officer may constitute the unlawful practice of law
266. The third person under a deed of trust who holds the legal title for the purpose of carrying out the terms of the deed of trust, and only for that purpose, is called the trustee
267. When a judgment debtor pays off a judgment, he is entitled to a satisfaction of judgment
268. The adjustment of prepaid items and accrued unpaid items in an escrow between the principals is known as prorations
269. Earnest money deposits should be deposited into a trust account by the end of the next business day.
270. Which of the following uniform transparent accounting standards must be used in regard to trust accounts? Standard Accounting Practice
271. Whenever money is put into a Broker’s Trust Account, the broker must keep detailed accurate records.
272. The closing attorney or escrow agent must report the details of the closing on? 1099S
273. A deed MUST be signed by the? Grantor
274. Title transfers to the grantee when the deed is? Delivered and accepted
275. After an accepted offer, the buyer was unable to obtain a mortgage.   Both parties agreed to cancel the contract. Who does the earnest money deposit belong to? The purchaser is entitled to the entire amount of the earnest money.
276. The money in the broker’s escrow account can hold the earnest money deposits of the buyer.
277. The act of improperly segregating the funds belonging to the agent from the funds received and held on behalf of another; the mixing of separate and community property. commingling
278. Before the close the Seller has LEGAL TITLE
279. It is most important to follow the accounting procedures for escrow accounts that are established by The state’s licensing law.
280. The closing agent must provide a form 1099-S to the seller of a residence at closing: In all cases.
281. Broker Dean employs Martha as his bookkeeper. Martha is responsible for maintaining the brokerage’s accounting ledgers. She also prepares and signs all checks disbursed from Dean’s escrow and operating accounts. Which of the following statements is true of this situation? Dean does not need to sign the checks; however, he must be an authorized signatory on the account.
282. A broker has deposited $100 of her personal funds in her escrow account to cover monthly bank servicing fees. Which of the following statements is(are) true of this situation? The broker must account for the $100 on her monthly accounting records.
283. Today is April 1.   Salesperson Rebecca has just received investor Teresa’s earnest money check dated April 7th. Furthermore, the check is made payable to Bob Wilson, Attorney Trust Account. Which of the following is the best wording to include in the Contract to Purchase and Sell Real Estate? Receipt is hereby acknowledged of the sum of $5,000 dated April 7 payable to Bob Wilson, Attorney Trust Account (by check) as an earnest money deposit.
284. Investor Teresa made an offer on one of salesperson Rebecca’s listings. The Contract to Purchase and Sell Real Estate indicated that Teresa was depositing $5,000 as an earnest money deposit, payable to Bob Wilson, Attorney Trust Account. Which of the following statements is true of this situation? The situation describes an acceptable arrangement for handling escrow funds.
285. Salesperson Rebecca receives an earnest money deposit from a prospective buyer on Monday, late in the evening. She turns it over to Martha, the bookkeeper, on Tuesday morning. Assuming no legal holidays are involved, when must the check be deposited in broker Dean’s escrow account? The check must be deposited into the escrow account no later than the end of the banking day on Wednesday.
286. An earnest money deposit pertaining to a cooperative agreement must be held in escrow by the Mississippi broker unless both the buyer and seller agree in writing to relieve the Mississippi broker of this responsibility.
287. If a buyer signs an offer to purchase property contingent on first selling his current home, the seller’s agent would be wise to suggest: Keeping the seller’s property on the market and giving the buyer a 24-hour right of first refusal.
288. If a contract does not set a closing date, which of the following statements is (are) true? The parties have a reasonable time for closing.
289. Which of the following statements is (are) true of personal property to be included in the sale of a building? It should be inventoried in the contract.

Incorrect descriptions of chattels may invalidate a contract.

The seller must have ownership to transfer.

290. Which of the following statements is (are) true of a buyer’s earnest money deposit? While a postdated check is not illegal, the broker must note clearly on the deposit receipt that the check is postdated, and he must get the seller’s approval before the contract is signed
Module Three    
291. Cost of sales is All of the transaction expenses.
292. When structuring the commission program for your salespeople, considering parity with the competition is important because The salespeople evaluate your program for fairness in comparison with other brokers.
293. It is most important to follow the accounting procedures for escrow accounts that are established by The company’s broker.
294. The person who is responsible for determining how the company charges for its services is The salesperson who is negotiating with the client.
295. A loan application portfolio normally includes a letter of introduction, a personal financial statement, a budget and A business plan.
296. When estimating your capital requirements, you should budget for at least how many months of operating expenses? Six months
297. Broker Arthur was interviewing Sandi Diaz about a position with the firm. He may ask which of the following questions? “Do you have an active real estate license?”
298. Broker Jane needed to staff his five offices in Hattiesburg, so he opened a proprietary real estate school to generate new recruits. ON the first and last nights of every course, just before the second break, he spoke to the students about his company’s growth and the benefits of associating with Jane Realty.   In this situation, which of the following statements is true? Jane’s visits to the class are illegal, even if he speaks to the group after the class session has ended for the evening
299. Which brokerage office expense category typically varies in direct proportion to the income? Commissions paid to salespersons
300. An example of a fixed cost includes: rent
301. Businesses often fail because The brokers devote 100 percent of their time to sales.
302. The document that provides a company’s mission statement and serves as the long-range blueprint for the company’s operation is the: business plan
303. What is the FTC’s competition mission? To enforce the rules of the competitive marketplace
304. Which of the following is not on the business startup checklist? Taxes
305. The federal income tax is a pay-as-you-go tax.
306. An ___________ is needed by any business that retains employees EIN number
307. New businesses are usually required by the lender to furnish a projected balance sheet with their loan application. True
308. Before you start applying for loans, you should get some basic documentation together. True
309. While every loan program has specific forms you need to fill out and documents you need to submit, you will likely need to submit much of the same information for different loan packages. True
310. According to Truth in Lending, your bank must disclose which of the following? APR
311. Truth in lending is a disclosure of the true cost of a loan and contains? Trigger terms
312. If you have employees, you will need to obtain workers compensation insurance. True
313. A retired Air Force officer purchased a home using his VA loan. Several years later he sold the property and with the lender’s approval the buyer assumed the loan. The buyer defaulted on the loan 6 months later. What is the responsibility of the retired Air Force officer? No longer responsible for anything regarding the property or the loan.
314. Hypothecation means? Retaining possession of the property while making payments.
315. Which of the following uniform transparent accounting standards must be used in regard to trust accounts? Standard Accounting Practice
Module Four    
316. MATCH: Earnings A spending or consuming; disbursement, expenditure.
317. An idea or opinion someone gives you to help you make a decision. advice
318. Can be calculated as the difference between assets and liabilities. Equity
319. MATCH: Mission Statement expresses the specific aspirations of a company and the major goals it will try to reach
320. The process of gathering, analyzing and presenting data relevant to marketing. Marketing Research
321. The operating expenses that a business must pay regardless of how many sales are made. Fixed Operating Expenses
322. The definition of Competition Rival businesses competing for the dollars your target market spends.
323. What is the definition of a Business Opportunity? A consumer need or want that can be potentially met by a new business.
324. When a business’s expenses and sales equal zero because the business has sold exactly enough units to cover its fixed expenses. Break-Even Point
325. What is the work of keeping something in good condition? maintenance

 

326. People who start businesses? entrepreneurs
327. A business entity consisting of one or more general partners and one or more limited partners. Limited partnership
328. MATCH: Franchisor The person/company that grants the franchisee the right to do business under their trademark or trade name
329. An association of two or more persons for the purpose of jointly conducting a business, each being responsible for all the debts incurred in the conducting of that business, each having the power to bind the other(s) in transactions, and each being entitled to receive a share of the profits in the amount agreed upon by the parties. General partnership
330. Can one person be the only stockholder, only member of the board of directors, and fill all of the officer positions in a corporation for profit? YES
331. MATCH: Franchising A method of business expansion characterized by a trademark license, payment of fees, and significant assistance and/or control
332. The _________________ elect the members of the board of directors. Stockholders
333. MATCH: Franchise A license that describes the relationship between the franchisor and franchisee including use of trademarks, fees, support, and control
334. ___________________ manages the corporation. (Corporation for profit) Board of Directors
335. __________________ own the corporation. (In corporation for profit) Stockholders
336. What are the 3 components of a corporation for profit? board of directors

Stockholders

officers

337. MATCH: Franchise Disclosure Document (FDD) The format for the disclosure document which provides information about the franchisor and franchise system to the franchisee
338. In a Corporation for Profit, the ___________________ can protect the individual within the business from personal liability for the debts and obligations of the corporation. Corporate Veil
339. A ___________ consists of one or more adult persons and is considered by law to be an artificial person. Corporation
340. MATCH: Royalty The regular payment made by the franchisee to the franchisor, usually based on a percentage of the franchisee’s gross sales.
341. This identifies the name, life, and powers of the corporation for profit. Charter
342. What is the name of this type of business? Separate and distinct legal entity. This type of company can get a tax ID number, open a bank account, and do business all under this company name. One of the benefits is the owners/members under most circumstances are not personally liable for the debts and liabilities of the company. For example, if this type of company is forced into bankruptcy, then the members will not be required to pay the company’s debts with their own money. If the assets of the company are not enough to cover the debts and liabilities, creditors cannot look to the owners for payment. The debt is with the company, not the owners or members. Limited Liability Company (LLC)
343. MATCH: Franchisee The format for the disclosure document which provides information about the franchisor and franchise system to the franchisee
344. Can a sole proprietorship buy and sell real estate, hold title in his or her name, and have a broker real estate license? Yes
345. MATCH: Trademark The marks/brand name and logo that identify a franchise which is licensed to the franchisee
346. It is most important to follow the accounting procedures for escrow accounts that are established by The state’s licensing law.
347. One of the broker’s most challenging tasks is is recruiting good salespersons.
348. Independence means lower overhead.
349. When starting a business, you should look for a CPA (Certified Public Accountant) that specializes in small businesses. True
350. An example of a fixed cost includes: rent
351. The document that provides a company’s mission statement and serves as the long-range blueprint for the company’s operation is the: business plan
352. Why You Should Establish a Web Presence? More people than ever search the internet for real estate.
353. Lock box prices increase as the security technology is enhanced.
354. The federal income tax is a pay-as-you-go tax.
355. An ___________ is needed by any business that retains employees EIN number
356. Which of these is NOT a way to get business? Solicit your strengths
357. Which of the following is not on the business startup checklist? Taxes
358. Broker Arthur was interviewing Sandi Rodriguez about a position with the firm. He may ask which of the following questions? “Do you have an active real estate license?”
359. Broker Jane needed to staff his five offices in Hattiesburg, so he opened a proprietary real estate school to generate new recruits. ON the first and last nights of every course, just before the second break, he spoke to the students about his company’s growth and the benefits of associating with Juna Realty.   In this situation, which of the following statements is true? Jane’s visits to the class are illegal, even if he speaks to the group after the class session has ended for the evening
360. Broker Sigrid has three employees and five independent contractors. What is the significance of January 31 regarding required reporting? She must give each employee a W-2 form or each independent contractor a 1099-Misc. form, and she must file the annual federal unemployment tax return
361. Broker Jackson wants to make sure 12 salespersons stay with his firm. Because other brokers are trying to recruit them, he is considering offering the salespersons a hospitalization insurance plan for which he will contribute half the premium.   None of the other firms offers such a plan, and he believes this will eliminate the competition. Based on this information, which of the following statements is true? The IRS probably will classify his salespersons as employees
362. Which brokerage office expense category typically varies in direct proportion to the income? Commissions paid to salespersons
Module Five    
363. A decision, which you have carefully considered the outcome of each choice. Good decision
364. To accept how your decision will affect yourself and other people. Personal responsibility
365. Beliefs that you consider to be of great importance. Values
366. The way people think, feel, and act. Character
367. A force that affects your choices when you have a decision to make. Influence
368. The result of an action that you take. Consequence
369. An action to avoid negative consequences. Precaution
370. Something that you want and are willing to work for. Goal
371. How you feel about yourself as a person and how much you value yourself. Self-esteem
372. The achievement of your goal. Success
373. A map that outlines the steps for reaching your goal. Action plan
374. The commitment to keep working toward your goal even when things happen that make you want to quit. Persistence
375. Methods for expressing your thoughts and listening to what others say. Communication skills
376. Not only hearing what someone says but also showing that you understand what that person is communicating. Active listening
377. The process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities Strategic planning
378. The process of evaluating each market segment’s attractiveness and selecting one or more segments to enter; Market targeting
379. When a company pays be associated with a specific event Public Relations
380. One-on-one interaction between a representative of a company and a customer Personal Selling
381. MATCH: Marketing The process of creating, promoting, and presenting a product to meet the needs and wants of consumers.
382. Involves Advertising, Public Relations, Publicity, Sales Promotion, and Personal Selling Promotion
383. Broker Dean employs Martha as his bookkeeper. Martha is responsible for maintaining the brokerage’s accounting ledgers. She also prepares and signs all checks disbursed from Dean’s escrow and operating accounts. Which of the following statements is true of this situation? Dean does not need to sign the checks; however, he must be an authorized signatory on the account.
384. Investor Teresa made an offer on one of salesperson Rebecca’s listings. The Contract to Purchase and Sell Real Estate indicated that Teresa was depositing $5,000 as an earnest money deposit, payable to Bob Wilson, Attorney Trust Account. Which of the following statements is true of this situation? The situation describes an acceptable arrangement for handling escrow funds.
385. A broker has deposited $100 of her personal funds in her escrow account to cover monthly bank servicing fees. Which of the following statements is(are) true of this situation? The broker must account for the $100 on her monthly accounting records.
386. It is unlawful to carry out the business of a broker or salesperson without a license.
387. The responsible broker must hang in the office all licenses of the licensees he is responsible for
388. A real estate broker must keep on file following its consummation complete records relating to any real estate transaction for three years.
389. Monies received in a trust account on behalf of clients or customers are not assets of the broker; however, a broker may deposit and keep in each escrow account or rental account some personal funds for the express purpose of covering service charges and other bank debits related to each account.
390. “Disclosed Dual Agent” is when An agent representing both parties to a real estate transaction with the informed consent of both parties, with written understanding of specific duties and representation to be afforded each party.
391. Brokers who practice disclosed dual agency should do so with the utmost caution to protect consumers and themselves from inadvertent violation of demanding common law standards of disclosed dual agency.
392. The person who is responsible for determining how the company charges for its services is The salesperson who is negotiating with the client.
393. Which of the following is not a function of the antitrust laws? Regulate trust accounts
394. The Sherman Act outlaws “unfair methods of competition” and “unfair or deceptive acts or practices.”

mergers and interlocking directorates

395. What is the FTC’s competition mission? To enforce the rules of the competitive marketplace
396. At their regular monthly meeting, a group of local brokers agree that the introduction of “discount brokerages” in their area would be bad for business. Thus, they informally agree to charge commission rates no lower than 6 percent for the coming year; there was, however, no limit placed on the amount of commission above that figure the brokers could charge. This type of “friendly” agreement is: against the law.
397. the _______________ require that each company establish prices and other terms on its own, without agreeing with a competitor. antitrust laws
398. If an owner refuses to pay the broker an earned commission, the broker may properly seek relief by: bringing court action
399. Title companies derive directions for closing from which of the following documents? The purchase contract

The closing instructions Amendments to the purchase and sale contract

The sale contract

400. Often considered the most effective way to advertise homes and your brokerage to the public on a daily or weekly basis. Radio

Television

Newspapers/ Internet

401. What is the most proven method of building and growing a successful real estate practice? A method based around asking for and being given referrals
402. When a client or customer asks that we recommend a service provider, always; Recommend three and let them follow up
403. Which of these is NOT a way to get business? Solicit your strengths
404.        An ___________ is needed by any business that retains employees EIN number
405. Why You Should Establish a Web Presence People search the internet for real estate.
Module Six    
406. Which of these is NOT a way to get business? Approach Someone
407. When a client or customer asks that we recommend a service provider, always; Recommend three and let them follow up
408. What is the most proven method of building and growing a successful real estate practice? A method based around asking for and being given referrals
409. Potential clients received through the agent’s good will and treatment of current clients Referrals
410. Why are holding open houses beneficial to you as an agent? All of these
411. ________ advertising is illegal Blind
412. Who is not subject to the truth in lending act? Lenders that aren’t advertising
413. The broker makes the rules by first establishing a philosophy for doing business. True
414. Which of these in NOT the best advertising policy to stimulate the most interest? give away minimal amounts of information initially
415. When soliciting listings of homes in an area where minorities had recently purchased homes, Broker A told his salespeople to solicit only Caucasian owners for listings as they will likely want to leave the area. This action would be regarded as blockbusting
416. All of the following forms of discrimination are prohibited under the 1968 federal fair housing act except sexual orientation
417. If the manager has a problem with something a salesperson has done, the manager should address the problem with the salesperson and agree on a solution.
418. Who does not have to display an Equal Opportunity Housing sign? An owner selling his own property
419. A buyer wishes to give a post-dated check with an offer. The broker should: inform the seller as to the form of the deposit
420. Which of the following is true about using praise as an incentive? Praise is effective because it enhances self-esteem.
421. Antitrust Laws prohibit all except dual representation.
422. An important ingredient in professional development today is technology training. True
423. It is illegal for a broker to represent both the buyer and seller in the same transaction unless: the broker obtains the prior written consent of both parties.
424. A plan can be a great motivator, but only as long as the goals are attainable.
425. Some salespeople are fast learners and become highly productive in a relatively short time. True
426. Just as an architect could not build a structure successfully without a plan, the operations manual must have a plan.
427. Salespeople can be a high-strung, competitive group of human beings, which means there’s bound to be conflict. True
428. Earnest money deposits should be deposited into a trust account by the end of the next business day.
429. When a salesperson walks into your office and announces that she or he is leaving, it’s usually too late to convince that person to do otherwise. True
430. Everything in real estate has to be in writing according to the? Statute of Frauds
431. The work culture or environment that you create to recruit salespeople is the same environment you expect will retain them. True
432. If a sales agent leaves a real estate brokerage. What happens to the listings of that agent? The listings remain with the broker.
433. The purpose of a performance interview is for you and the salesperson to discuss the person’s progress. True
434. One of the most interesting ways to conduct performance reviews is to ask people to do self-evaluations. True
435. Before you can conduct a review you need to identify the criteria by which each person will be evaluated. True
436. Today is April 1.   Salesperson Rebecca has just received investor Teresa’s earnest money check dated April 7th. Furthermore, the check is made payable to Bob Wilson, Attorney Trust Account. Which of the following is the best wording to include in the Contract to Purchase and Sell Real Estate? Receipt is hereby acknowledged of the sum of $5,000 dated April 7 payable to Bob Wilson, Attorney Trust Account (by check) as an earnest money deposit.
437. Broker Dean employs Martha as his bookkeeper. Martha is responsible for maintaining the brokerage’s accounting ledgers. She also prepares and signs all checks disbursed from Dean’s escrow and operating accounts. Which of the following statements is true of this situation? Dean does not need to sign the checks; however, he must be an authorized signatory on the account.
438. Performance reviews not only help people know where they stand, but they also tell management what it needs to be doing. True
439. The person who is responsible for determining how the company charges for its services is The salesperson who is negotiating with the client.
440. Negative incentives can do more harm than good. True
441. Special situations, where unusual facts exist or where one or more parties involved are especially vulnerable, could require additional disclosures not contemplated. In such cases, brokers should seek legal advice prior to entering into an agency relationship.
442. An agent made real estate signs to put in the front yard of his client’s home. He did not put the name of his responsible broker or name of his real estate firm on the sign. This is a “Blind Ad” and is in violation.
443. Parental- or dictatorial-style managers may see fear, embarrassment, punishment, reprimand and criticism as incentives for people to change their behavior. True
444. Graduated commission programs are the most common, tangible incentives. True
445. In addition to disclosing their licensed status on all advertisements, licensees are required to disclose their license status on all contracts for real estate in which they have an ownership interest.
446. A real estate broker must keep on file following its consummation complete records relating to any real estate transaction for three years.
447. Each person is in charge of his or her own behavior, and everyone else is a bystander. True
448. A manager who coaches performance empowers salespeople to direct their activities in constructive ways to satisfy the company’s goals. True
449. The responsible broker must hang in the office all licenses of the licensees he is responsible for.
450. No licensee shall pay any part of a fee, commission or other compensation received by such licensee in buying, selling, exchanging, leasing, auctioning or renting any real estate except to a licensee through the licensee’s responsible broker.
451. The contemporary view of a manager’s job is to energize and empower people, rather than dominate them. True
452. An “Unlicensed Personal Assistant” who works exclusively for a licensee will ordinarily be an employee rather than an independent contractor under Mississippi and Federal tax, unemployment and workers’ compensation law. True
453. When advertising a property shared by an out of state broker the name of the Mississippi broker must be listed.
454. Brokers may give legal advice Never.
455. Generally, assistants will be considered employees if the broker or salesperson hiring them retains the right to control what the assistants do and how it is done. True
456. A broker has established the following office policy: “All listings taken by any salesperson associated with this real estate brokerage must include compensation based on a 7 percent commission. No lower commission rate is acceptable.” If the broker attempts to impose this uniform commission requirement, which of the following statements is true? The broker may, as a matter of office policy, legally set the minimum commission rate acceptable for the firm.
457. A state has recently updated its Rules and Regulations for the Real Estate Profession. Assuming this state is like all other states and provinces, which of the following statements is true regarding this publication? The rules and regulations are state laws enacted by the legislature.
Module Seven    
458. The__________________ prosecutes cases of identity theft and fraud under a variety of federal statutes. The__________________ prosecutes cases of identity theft and fraud under a variety of federal statutes.
459. Protecting personal information not only makes good business sense, it can also help you avoid legal problems.
460. Which of the following is not an example of identifying information? Hair Color
461. What should you do if you are unsure if something is confidential or not? Do not reveal any information.
462. Why is confidentiality important? To protect the privacy of the individual.

To prevent unauthorized access to records.

To ensure safety and confidentiality of records.

463. ________about the principal’s personal affairs is a key element of loyalty. Confidentiality
464. William Alberts and his daughter Jane Alberts buy a tract of land for cash, and the property is deeded to them with rights of survivorship. William and Jane are: William Alberts and his daughter Jane Alberts buy a tract of land for cash, and the property is deeded to them with rights of survivorship. William and Jane are:
465. A broker may execute a contract on behalf of his principal when he is a(an): attorney-in-fact
466. The type of agency a real estate broker and seller enter into when they execute a listing agreement is generally considered to be: a special agency
467. The relationship created between the real estate broker and the principal places the broker in the position of: a fiduciary.
468. It is illegal for a broker to represent both the buyer and seller in the same transaction unless: the broker obtains the prior written consent of both parties.
469. One of the best sources for verifying information about an owner’s correct legal name and a property’s legal description is: A copy of the deed
Module Eight    
470. If no other formal training is given by the broker, the manual at least serves to give new salespeople the orientation they need.
471. In training new salespeople, the operations manual is an essential tool. The most important essential tool.
472. Many brokers practice management by crisis and not the wiser method of management by objectives. It is always the preferred method.
473. A broker cannot exercise certain controls over salespersons who are employees. False
474. A licensee who is paid in a lump sum and who is personally responsible for paying his or her own taxes is probably a(n): independent contractor
475. Acting as an employee rather than an independent contractor, a salesperson is obligated to: assume responsibilities assigned by the broker.
476. The type of agency a real estate broker and seller enter into when they execute a listing agreement is generally considered to be: a special agency.
477. The relationship created between the real estate broker and the principal places the broker in the position of: a fiduciary.
478. Some salespeople are fast learners and become highly productive in a relatively short time. True
479. Generally, assistants will be considered employees if the broker or salesperson hiring them retains the right to control what the assistants do and how it is done.
480. When you know you are competing with another Agent for a listing; Never make a disparaging comment about your competition
481. What best describes a “Circle of Influence?” A list of people over whom I have influence
482. Title companies derive directions for closing from which of the following documents? All of these
483. All of the following are characteristics of an independent contractor relationship with a broker EXCEPT : you do not need a license
484. For federal tax purposes the form a broker will give an agent to file their taxes is 1099misc
485. A real estate salesperson? Is responsible primarily to their responsible broker.
486. If a sales agent leaves a real estate brokerage. What happens to the listings of that agent? The listings remain with the broker.
487. A licensee who is paid in a lump sum and who is personally responsible for paying his or her own taxes is probably a(n): independent contractor
488. A broker would have the right to dictate which of the following to an independent contractor? Commission rate the person would receive
489. When acting as an employee rather than an independent contractor, a salesperson is obligated to: assume responsibilities assigned by the broker.
490. For federal tax purposes the form a broker will give an agent to file their taxes is 1099 misc
491. When supervising independent contractors, you can expect that they comply with laws that affect your business.
492. Peggy, a salesperson for broker Bob listed and sold a property. Before being paid for that executed transaction, Peggy changed responsible brokers. Broker Bob can pay Peggy her commission directly.
493. What is a requirement of a universal agent? An executed power of attorney agreement
494. What is a Real Estate Independent Contractor Agreement? An Agreement between the licensee and the broker putting any agreements they may have made in writing.
495. When changing responsible brokers The Commission shall issue a new license for a period of one year and when the agent completes the mandatory hours of continuing education will issue a license for 4 more years.
496. If a sales agent leaves a real estate brokerage. What happens to the listings of that agent? The listings remain with the broker.
497. When within 3 days a salesperson notifies the Commission of a change of broker. The salesperson must give the name of his responsible broker and the name of the principal broker into whose agency the salesperson is about to enter.
498. A broker would have the right to dictate which of the following to an independent contractor? Number of hours the person would have to work
499. Notice in writing shall be given to the Commission by any real estate salesperson with a change of responsible broker within 3 days
500. All licenses issued to a real estate salesperson or broker salesperson shall designate the responsible broker of such salesperson or broker salesperson.
501. When acting as an employee rather than an independent contractor, a salesperson is obligated to: assume responsibilities assigned by the broker.
502. A licensee who is paid in a lump sum and who is personally responsible for paying his or her own taxes is probably a(n): independent contractor.
503. Broker Arthur was interviewing Sandi Rodriguez about a position with the firm. He may ask which of the following questions? “Do you have an active real estate license?”
504. MATCH: Subagent The agent of an agent; associated salesperson or cooperating broker in relation to the principal.
505. Match: Special agent An agent who is authorized to represent the principal in one specific transaction or business activity only.
506. MATCH: Independent contractor Someone who is retained to perform a certain act but who is subject to the control and direction of another only as to the end result and not to the way in which the act is performed. Unlike an employee, an independent contractor usually pays for his or her own expenses and the employer does not withhold social security payments and income taxes.
507. Implied agreement A contract that is inferred by the actions and conduct of the parties
508. General agent An agent who is authorized to represent the principal in a specified range of matters.
509. MATCH: Express agreement An oral or written contract in which the parties state the contract’s terms and express their intentions in words.
510. MATCH: Employee Someone who works under the direct control of an employer. The employer is obligated by federal law to withhold income taxes and social security taxes from the compensation of employees. Compare with independent contractor.
511. When a salesperson walks into your office and announces that he or she is leaving the company, you should inquire about the reason for leaving.
512. If the manager has a problem with something a salesperson has done, the manager should address the problem with the salesperson and agree on a solution.
513. A broker would have the right to dictate which of the following to an independent contractor? Commission rate the person would receive
514. The primary purpose of a performance interview is to discuss a person’s progress.
515. A broker would have the right to dictate which of the following to an independent contractor? Commission rate the person would receive
516. When acting as an employee rather than an independent contractor, a salesperson is obligated to: assume responsibilities assigned by the broker.
517. When acting as an employee rather than an independent contractor, a salesperson is obligated to: assume responsibilities assigned by the broker.
518. When changing responsible brokers A new license shall thereupon be issued by the Commission to such salesperson for the unexpired term of the original license upon the return to the Commission of the license previously issued.
519. When within 3 days a salesperson notifies the Commission of a change of broker. The salesperson must give the name of his responsible broker and the name of the principal broker into whose agency the salesperson is about to enter.
520. Notice in writing shall be given to the Commission by any real estate salesperson with a change of responsible broker within 3 days
521. If the manager has a problem with something a salesperson has done, the manager should address the problem with the salesperson and agree on a solution.
522. One of the major challenges for a manager when evaluating people’s performance is to be fair and objective with each person.
523. The way to manage independent contractors is to encourage them and show how they will benefit from your suggestions.
524. When supervising independent contractors, you can expect that they comply with laws that affect your business.
525. M is a licensed real estate salesperson. M’s written contract with broker G specifies that M is not an employee. In the last year, just less than half of M’s income from real estate transactions came from sales commissions. The remainder was based on an hourly wage paid by G. Using these facts, it is likely that the IRS would classify M as which of the following for federal income tax purposes? Independent contractor
526. A licensee who is paid in a lump sum and who is personally responsible for paying his or her own taxes is probably a(n): Independent contractor.
Module Nine    
527. Contracting out business functions involving the use of third-party specialist businesses. MATCH: Outsourcing
528. Is a worker under an employer’s control. MATCH: Employee
529. Exercises control over employees, has responsibility for payment of wages and holds the power to dismiss employees MATCH: Employer
530. The management of the total relationship between an employer and employee MATCH: Human Resource Management
531. One element in the total work process that can be performed separately from other work elements in the process. MATCH: Task
532. A workplace where sexual innuendo jokes are tolerated and/or permitted. If only one person is uncomfortable in the situation and everyone else is ok with the situation; this is still a hostile work environment. MATCH: Hostile Work Environment
533. Are designed to reveal information about a potential employees’ honesty. MATCH: Honesty Test
534. Checks personality traits and qualities. They are used for customer relations and sales positions. MATCH: Personality Test
535. To check to see if the candidate has necessary skills for the position. MATCH: Skill Tests
536. Going outside the organization to attract people to apply for a job position. MATCH: External Recruiting
537. The process of attracting qualified applicants to job positions within an organization. MATCH: Recruitment
538. Indirect compensation plans are usually at least 25% more of the employee’s salary. MATCH: Fringe Benefits
539. Based on work performed for a specific number of hours. Wages do not change as productivity changes. MATCH: Straight Salary
540. To ensure that a real estate salesperson is an independent contractor, the federal tax laws require that the salesperson must Have a written agreement.
541. When conducting a formal employment interview, it is important to Sell the company to the candidate.
542. The primary purpose of preliminary interviews and application forms is to Gather basic information to decide whether to pursue applicants.
543. One of the reasons that some education institutions do not permit brokers or managers to solicit their students for recruiting purposes is students expect to be educated and not recruited.
544. One of the most effective ways for managers to recruit is by concentrating on Increasing their visibility in the industry.
545. Which of the following is not a primary consideration when salespeople are selecting a brokerage firm? Whether they will be an employee
546. When salespeople “shop” the competition, interviewing with several firms, before selecting a firm with whom to work, the firms should Encourage people to be satisfied with their decisions.
547. One of the most pressing questions prospective salespeople ask is “How do I select the right broker?”
548. Treating people differently because of characteristics that have nothing to do with their ability to perform.. Discrimination
549. Which of the following is NOT part of Organizational demands? Labor force trends
550. Ensuring Employees have the necessary knowledge, skills, abilities and other talents to achieve work objectives falls under which of the following categories? Managing Employee Competencies
551. Howard is a division manager at Here Comes the Sun, where you are the HR representative. Howard is extremely frustrated with the new performance appraisal system in which all employees are ranked in comparison to each other, some employees must be rated low, even if their performance is objectively good. What type of performance appraisal system are you using at Here Comes the Sun? Forced comparison
552. Managing change is an ongoing process whose objectives are all but: create time schedules for employees
553. Total Quality Management as a part of the group problem-solving focus is concerned with: employee empowerment
554. The information revolution will change everything; this will include: technology.
555. What is the most proven method of building and growing a successful real estate practice? A method based around asking for and being given referrals
556. Which of the following best describes Empowerment? Providing employees with the skills and authority to make decisions that would traditionally be made by managers.
557. A broker has deposited $100 of her personal funds in her escrow account to cover monthly bank servicing fees. Which of the following statements is(are) true of this situation? The broker must account for the $100 on her monthly accounting records.
558. What best describes a “Circle of Influence?” A list of people over whom I have influence
559. Investor Carol made an offer on one of salesperson Rebecca’s listings. The Contract to Purchase and Sell Real Estate indicated that Teresa was depositing $5,000 as an earnest money deposit, payable to Bob Wilson, Attorney Trust Account. Which of the following statements is true of this situation? The situation describes an acceptable arrangement for handling escrow funds.
560. The law that requires accessibility to employment, goods, and services for individuals with disabilities: ADA
561. A broker may execute a contract on behalf of his principal when he is a(an): attorney-in-fact
562. All of the following are defined and protected under familial status according to the 1988 amendment of the federal Fair Housing Law of 1968 EXCEPT : an eighteen year old domiciled with her mother
563. Plain agreements among competitors to divide sales territories or assign customers are almost always Illegal
564. Our company monitors competitors’ ads, and we sometimes offer to match special discounts or sales incentives for consumers. Is this a problem? No. Matching competitors’ pricing may be good business.
565. Which of the following fees are addressed under Antitrust laws All of them
566. When competitors agree to restrict competition, the result is often higher prices.
567. Government Regulation aimed at improving health and safety Social Regulations
568. Which of the following defines the Sherman Act? the Federal antitrust law of 1890 that makes monopoly and conspiracies to restrain trade criminal offenses
569. If the manager has a problem with something a salesperson has done, the manager should address the problem with the salesperson and agree on a solution.
570. Which of the following is true about using praise as an incentive? Praise is effective because it enhances self-esteem.
571. This federal act that prohibits discrimination against persons with disabilities, where “disability” is defined as “a physical or mental impairment that substantially limits a major life activity.” Americans with Disabilities Act
572. When structuring the commission program for your salespeople, considering parity with the competition is important because The salespeople evaluate your program for fairness in comparison with other brokers.
Module Ten    
573. The company’s top producer has violated a company policy. You have had several discussions with the person about this and the salesperson agreed to ways to prevent this from happening again. When you find the problem has reoccurred, your next step is to consider whether it’s appropriate to terminate the salesperson.
574. When a salesperson walks into your office and announces that he or she is leaving the company, you should inquire about the reason for leaving
575. If the manager has a problem with something a salesperson has done, the manager should ignore the problem if the salesperson is an independent contractor.
576. The primary purpose of a performance interview is to discuss a person’s progress.
577. One of the major challenges for a manager when evaluating people’s performance is to be fair and objective with each person
578. Which of the following incentives is most likely to be favored by a dictatorial manager? Negative
579. Which of the following is true about using contests and award programs as incentives? They can be harmful unless everyone has a chance to win or be recognized.
580. The way to manage independent contractors is to encourage them and show how they will benefit from your suggestions.
581. When supervising independent contractors, you can expect that they comply with laws that affect your business.
582. The increasing rate of change in the business environment is a major factor in this new emphasis on leadership True
583. Leaders that focus on task and organizing groups Autocratic
584. Able to recover from misfortune; able to withstand adversity Resilient
585. Type of management in which the leader assigns the task and the follower does it with no further instructions. Delegating
586. The avoidance of providing for one’s own comfort and personal advancement at the expense of others. Selflessness
587. Weighing the facts and possible solutions on which to base a sound decision. Judgment
588. A quality of seeing what has to be done and taking the necessary action in the absence of clearly defined orders. Initiative
589. The display of sincere interest exuberance in the performance of duties. Enthusiasm
590. Being able to perform one’s duties in an appropriate manner Dependability
591. Where can the definition of spirituality be found for a particular person? Only within that person.
592. Effective leadership is exemplified by values, confidence in employees, and a sense of security in the face of uncertainty. This aspect of leadership is known as: self-awareness
593. Leadership is founded on what concept? Trust
594.                       What is the term used to describe a combo of task and relationship behaviors used to influence people to accomplish goals? Leadership styles
595. What is the term for interpersonal process of participation? Followership
596. What is the term that means giving people authority, responsibility and freedom to act on their knowledge and skills? Empowerment
597. The ability to gain the trust and influence of one’s followers Personal Power
598. Dictating or asserting authority to one’s followers Autocratic
599. Reaching decisions by way of consensus in the group Democratic
600. Openness to Experience, Conscientiousness, Extraversion, Agreeableness Good Traits of a Follower
601. Self-Confidence, Ambition, Realism, Good Example, Bearing, Courage, Integrity Good Traits of a Leader
602. A person who influences the behavior of individuals or groups Leader
603. The art of influencing people to progress toward accomplishing a specific goal Leadership
604. When a client or customer asks that we recommend a service provider, always; Recommend three and let them follow up
605. When you know you are competing with another Agent for a listing; Never make a disparaging comment about your competition
606. What is the most proven method of building and growing a successful real estate practice? A method based around asking for and being given referrals
607. What would be a good first marketing activity to ‘touch’ your Circle of Influence? Mail them a personal note telling them about your new career choice
608. What best describes a “Circle of Influence?” A list of people over whom I have influence
609. Which of the following would most buyers and sellers consider important in selecting a real estate professional? Trust
610. Potential clients received through the agent’s good will and treatment of current clients Referrals
611. Why are holding open houses beneficial to you as an agent? All of these
612. Which groups should be included in your “sphere of influence?” All of these
613. A time-tested step-by-step method used in writing ads; this formula gets the job done AIDA – Attention, Interest, Desire, and Action
614. Title companies derive directions for closing from which of the following documents? The purchase contract,

The closing instructions Amendments to the purchase and sale contract,

The sale contract

615. __________ is the preferred business. referral business
616. ________ advertising is illegal Blind
617. Which of these in NOT the best advertising policy to stimulate the most interest? give away minimal amounts of information initially
618. When soliciting listings of homes in an area where minorities had recently purchased homes, Broker A told his salespeople to solicit only Caucasian owners for listings as they will likely want to leave the area. This action would be regarded as blockbusting
619. All of the following forms of discrimination are prohibited under the 1968 federal fair housing act except sexual orientation.
620. Actions that are illegal by federal and state fair housing laws include: refusing to show certain residential property to non-English speaking home seekers
621. A person seeking intervention, who believes that they have been subject to discriminatory housing practice, must: file a written complaint with HUD within 1 year
622. The provisions of the 1968 Federal Fair Housing Act apply: in all states
623. In compliance with the ADA, all architectural barriers in existing facilities must be removed: if removal is “readily achievable”
624. Blockbusting is an acceptable practice: under no circumstance
625. Many people think of on-the-job training when we mention one-on-one training. one-on-one training.
626. The law that requires accessibility to employment, goods, and services for individuals with disabilities: ADA
627. Who does not have to display an Equal Opportunity Housing sign? An owner selling his own property
628. All of the following are defined and protected under familial status according to the 1988 amendment of the federal Fair Housing Law of 1968 EXCEPT : an eighteen year old domiciled with her mother
629. Plain agreements among competitors to divide sales territories or assign customers are almost always Illegal
630. Our company monitors competitors’ ads, and we sometimes offer to match special discounts or sales incentives for consumers. Is this a problem? No. Matching competitors’ pricing may be good business.
631. Training is intended to cause people to behave in certain ways
632. Which of the following fees are addressed under Antitrust laws Present or future prices,

Pricing policies,

Promotions

633. A basic sales training program is a prime opportunity to foster a demeanor that will advance the professional image the industry desires. is a prime opportunity to foster a demeanor that will advance the professional image the industry desires.
634. When competitors agree to restrict competition, the result is often higher prices.
635. The _______________ require that each company establish prices and other terms on its own, without agreeing with a competitor. antitrust laws
636. A specific area with definite boundaries that is being worked by an agent is also known as a __________farm. Geographic
637. _______________is an agreement (written, verbal, or inferred from conduct) among competitors that raises, lowers, or stabilizes prices or competitive terms. Plain agreement
638. Working or prospect in an area of interest is also known as ______? Farming
639. A referral is also known as_______chain? Endless
640. Prospecting from home to home is also known as ________canvassing? Door to Door
641. Price-fixing is an   ___________ unreasonable restraint of trade. per se
642. Centers of influence are called _________. Bird Dogs
643. Sales managers also should attend the sales training program. sales training program.
644. Which of the following defines the Sherman Act? the Federal antitrust law of 1890 that makes monopoly and conspiracies to restrain trade criminal offenses
645. Some companies don’t give much thought to management training because their primary focus is sales training.
646. The federal antitrust laws are enforced by the Department of Justice.
647. Predatory pricing occurs when: a firm prices products below cost to drive out competitors.
648. What is the last step in the selling process? sale
649. What is a benefit of direct-mail prospecting? Inexpensive method for reaching many prospects
650. Call reluctance: is experienced by all salespeople at some point.
651. The first step in the selling process is: prospecting.
652. An offer from Fred has been accepted by seller Tom. Fred decided to put his work tools into the garage before the transaction closed.   What should Fred’s agent tell him? Remove the tools.
653. Agent Carol just received her third low offer on one of her listings this morning. She believes the Seller will not accept any of them. What should Agent carol do? Present all offers as soon as practicable.
654. Buyer Tom’s offer has been accepted by the seller. Buyer Tom has requested entry to the property so that he can paint it before his family moves in. What should his agent tell Tom? He cannot have access to the property before it closes and is recorded.
655. A buyer withdraws his offer to purchase a property before it was accepted. His agent should return the earnest money deposit check back to the buyer.
656. When is a broker relieved of presenting an offer? When the offer is obviously frivolous and the agent is acting on instructions from the seller.
657. The seller’s broker can fill out the property condition disclosure never.
658. What is a client level duty relating to account of earnest money, actions, etc. Accounting
659. Blockbusting is an acceptable practice: under no circumstances.
660. The duty owned from the agent to his/her client is fiduciary duties.
661. The law that requires contracts in real estate to be in writing is Statute of Frauds
662. It is not a good practice to let a buyer take possession of the property before closing.
663. Twice each year, the manager announces a meeting for the sales staff to discuss ways the company can improve its marketing and advertising program. This is an example of a which type of a meeting. Brainstorming.
664. It is most appropriate to hold a sales meeting when there is a clear objective for having one.
665. Good, professional trainers are effective at training because they help people transfer learning into application.
666. When teaching adults, it is important to remember that they are likely to have physical changes that should be considered.
667. When deciding how to deliver training, you can send people to programs conducted by professional associations, franchises or local educational institutions. One of the major drawbacks to these modes of delivery is they are not normally tailored to your company’s philosophies and procedures.
668. One of the problems with the modeling approach to sales training is it teaches a script rather than preparing people to think.
669. Before designing in-house training programs, it is necessary to determine if the managers have the skills to do training.
670. The primary purpose of training programs is to develop skills people need to do their jobs.
671. The difference between education and training is that training develops skill and education builds knowledge.
672. It is illegal for a broker to represent both the buyer and seller in the same transaction unless: he broker obtains the prior written consent of both parties.
673. Not all brokers agree on the value of sales contests.
674. The way to manage independent contractors is to encourage them and show how they will benefit from your suggestions.
675. Earnest money deposits should be deposited into a trust account by the end of the next business day.
676. A buyer wants to make an offer based on complex financing. The agent should suggest the buyer consult an attorney to furnish the wording.
677. If the manager has a problem with something a salesperson has done, the manager should address the problem with the salesperson and agree on a solution.
678. Which of the following is true about using praise as an incentive? Praise is effective because it enhances self-esteem.
679. e Buyer has the legal right to demand the return of his earnest money deposit back before the offer is accepted.
680. A dual agency is in effect when both the buyer and seller accept dual agency and acknowledge the dual agency agreement in writing.
681. Antitrust Laws prohibit all except dual representation
682. The phrase, “procuring cause” is most important to real estate agents in a Open Listing.
683. An agent had an exclusive right to sell listing agreement with a client on a home listed for $100,000.   The agent knew that the seller would actually take $92,000 for the house due to the seller being under duress.   During an open house, a buyer came to view the property. The potential buyer loved the house but could not afford more than $90,000.   The agent encouraged the buyer to submit an offer. The agent also informed the buyer to offer $90k because she knew the seller would accept $92,000. Did the agent violate her agency relationship with the seller? Yes, regardless of intent, an agent can never reveal the lowest amount a seller will take for a property.
684. Who is responsible for completing the Property Condition Disclosure Statement? The seller
685. Everything in real estate has to be in writing according to the? Statute of Frauds
686. Which is an example of an agent’s fiduciary responsibilities? Accounting
687. After a particularly challenging transaction finally closes, the client gives the listing agent, Louise, a check for $500 “for all your extra work.” Which of the following statements is accurate? Louise may receive compensation only from her broker.
688. The company’s top producer has violated a company policy. You have had several discussions with the person about this and the salesperson agreed to ways to prevent this from happening again.   When you find the problem has reoccurred, your next step is to consider whether it’s appropriate to terminate the salesperson.
689. The number one job of a salesperson is to? prospect
690. What is the preferred business? referral business
691. When supervising independent contractors, you can expect that they comply with laws that affect your business.
692. One of the best sources for verifying information about an owner’s correct legal name and a property’s legal description is: A copy of the deed
693. Which of the following statements is (are) true of a buyer’s earnest money deposit? While a postdated check is not illegal, the broker must note clearly on the deposit receipt that the check is postdated, and he must get the seller’s approval before the contract is signed
694. Failure to renew your license on time will result in a penalty of double fee. 30 days late, will result in the license being cancelled.
695. The responsible broker must report any licensee for whom that broker is responsible to the commission if he/she believes that a licensee has violated laws rules or regulations.
696. he/she believes that a licensee has violated laws rules or regulations. a licensee may transfer to another responsible broker.
697. vent the agency relationship changes between the parties to a real estate transaction new disclosure forms will be acknowledged by all parties involved.
698. In dual agency the buyer shall give his/her consent by signing the MREC Dual Agency Confirmation Form which shall be attached to the offer to purchase
699. “Fiduciary Responsibility” are those duties due the principal (client) in a real estate transaction are Loyalty, Obedience, Disclosure, Confidentiality, Reasonable Skill, Care and Diligence and Full Accounting.
700. Brokers who practice disclosed dual agency should do so with the utmost caution to protect consumers and themselves from inadvertent violation of demanding common law standards of disclosed dual agency.
701. Dual Agency is not practiced by some brokers because There may be situations where disclosed dual agency presents conflicts of interest that cannot be resolved without breach of duty to one party or another.
702. Special situations, where unusual facts exist or where one or more parties involved are especially vulnerable, could require additional disclosures not contemplated. In such cases, brokers should seek legal advice prior to entering into an agency relationship.
703. If a Broker as escrow agent, accepts a check and later finds that such check has not been honored by the bank on which it was drawn, the broker shall immediately notify all parties involved in the transaction.
704. An agent made real estate signs to put in the front yard of his client’s home. He did not put the name of his responsible broker or name of his real estate firm on the sign. This is a “Blind Ad” and is in violation.
705. In addition to disclosing their licensed status on all advertisements, licensees are required to disclose their license status on all contracts for real estate in which they have an ownership interest.
706. When a licensee is advertising their own property for sale, purchase or exchange which is not listed with a broker, the licensee must The licensee must indicate he or she is licensed.
707. A salesperson wants to advertise on an internet web page. All advertising must be under the direct supervision and in the name of the responsible broker or in the name of the real estate firm.
708. The use of any copyrighted term or insignia on stationary, office signs, or in advertisement by any licensee not authorized to do so, will be considered as “substantial misrepresentation” and cause for refusal, suspension, or revocation of the license.
709. Every contract must reflect whom the broker represents by statement over the signatures of the parties to the contract.
710. The responsible broker must hang in the office all licenses of the licensees he is responsible for
711. The MLS was created in the 60s
712. A broker would have the right to dictate which of the following to an independent contractor? Commission rate the person would receive
713. An important ingredient in professional development today is technology training. True
714. The goal of planning is to ensure that the right things happen in the organization. This statement is true.
715. When a salesperson walks into your office and announces that he or she is leaving the company, you should nquire about the reason for leaving.
716. If a buyer asks for early occupancy, which of the following statements describe(s) the best way to protect the seller? The best protection is to avoid the early occupancy, if possible.
Module Eleven    
717. Which of the following costs of homeownership may be deducted on Federal Income Taxes? Mortgage loan origination fees, mortgage loan interest and local property taxes
718. Section 1031 of the IRS code allows for? The seller to defer their capital gains tax
719. The federal income tax is a pay-as-you-go tax.
720. Is interest on a home equity line of credit deductible as a second mortgage? Yes
721. I have a mortgage for land that I intend to build a home on. Can I deduct the interest for the mortgage? No
Module Twelve    
722. A borrower with a very high credit rating likely will: Get the best credit terms and the fastest loan processing.
723. What is (are) the benefit(s) to a retail chain store in a sale-leaseback transaction? It can deduct the full lease payment for federal income tax purposes.
724. A partially amortized mortgage ends with a(n): Balloon payment.
725. William stopped making payments on his mortgage six months ago when his business began experiencing financial problems. What clause in the mortgage allows the bank to call the entire amount due to prepare for foreclosure? Acceleration
726. Magnolia Bank makes a loan to John Smith. John signs a note for the bank, thanks the loan officer and leaves. The bank has made a/an? Unsecured loan.
727. The documented evidence that a person or organization has ownership of real property. Title
728. The process in which a mortgage company works with a delinquent homeowner to sell the house by a real estate agent prior to the foreclosure sale. Short Sale
729. A homeowner promises to pay down past-due amounts on a mortgage over a specified time period while still making regular monthly payments. Repayment Plan
730. The transfer of title from a homeowner to the mortgage company to satisfy the mortgage debt and avoid foreclosure, also called a Deed-in-Lieu of Foreclosure or a voluntary conveyance. Refinance
731. The transfer of title from a homeowner to the mortgage company to satisfy the mortgage debt and avoid foreclosure. Deed-in-Lieu of Foreclosure
732. Typically is required if the homeowner’s down payment is less than 20% of the purchase price. Mortgage Insurance
733. Which of the following is the lender who originated your mortgage may or may not service your loan. Mortgage Company
734. A legal document that pledges property to the mortgage company as security for the repayment of the loan. The term is also used to refer to the loan itself. Mortgage
735. Loan to value is a calculation frequently used by mortgage companies when qualifying borrowers for a mortgage. It is calculated by dividing the mortgage balance by the home’s current market value. Modification
736. It is calculated by dividing the mortgage balance by the home’s current market value. Loan-to-Value
737. The owner of the loan on a property. Investor
738. A property not considered to be a primary residence that is purchased by an investor in order to generate income, gain profit from reselling or to gain tax benefits. Investment Property
739. A mortgage where the homeowner pays only the interest on the loan for a specified amount of time. Interest-Only Mortgage
740. A way of borrowing money against the equity or assets that the homeowner has in the home to pay for things such as home repairs, college education, or other personal uses. Home Equity Line of Credit
741. Insurance coverage that pays for the loss or damage on a person’s home or property. Hazard Insurance
742. Steps by which the mortgage company works with the homeowner to find a permanent solution to resolve an existing or impending loan delinquency. Foreclosure Prevention
743. The legal process by which a property may be sold and the proceeds of the sale applied to the mortgage debt Foreclosure
744. An agreement to temporarily suspend or reduce monthly mortgage payments for a specific period of time. The mortgage company will then postpone legal action when a homeowner is delinquent Forbearance
745. A mortgage loan in which the interest rate remains the same for the life of the loan. Fixed-Rate Mortgage
746. Ownership interest in a property. This is the difference between the home’s market value and the outstanding balance of the mortgage loan (as well as any other liens on the property). Equity
747. Failure to make a payment when it is due. Delinquency
748. Payments that are authorized to be postponed as part of a workout process to avoid foreclosure. Deferred Payments
749. A legal document under which ownership of a property is conveyed. Deed
750. A calculation frequently used by mortgage companies when qualifying borrowers for a mortgage or a workout solution to resolve delinquency. It is calculated by comparing how much you pay on your mortgage(s) to your gross monthly income. Debt-to-Income (DTI)
751. An Adjustable-Rate Mortgage loan that can be converted into a fixed-rate mortgage during a certain time period. Convertible ARM
752. A mortgage loan in which one party pays an initial lump sum in order to reduce the homeowner’s monthly payments. Buy-down Mortgage
753. Which of the following best describes a mortgage loan with initially low interest payments, but that requires one large payment due upon maturity (for example, at the end of five or seven years). Balloon Mortgage
754. Which best describes a mortgage loan with an interest rate that can change at any time, usually in response to the market or Treasury Bill rates. These types of loans usually start off with a lower interest rate comparable to a fixed-rate mortgage. Adjustable-Rate Mortgage
755. Paying off a debt by making regular installment payments over a set period of time, at the end of which the loan balance is zero. Amortize
756. How long does a foreclosure stay on a person’s credit report? 7 to 10 years
757. I have an adjustable-rate mortgage (ARM) that’s about to reset. Can I refinance through Fannie Mae? No. Fannie Mae does not offer loans directly to consumers.
758. We work with mortgage companies (i.e., mortgage lenders and servicers) and housing counselors to help homeowners who may be experiencing hardships. Fannie Mae
759. Which of the following best describes the sale of one mortgage note to more than one investor? The sale of one mortgage note to more than one investor.
760. A loan to a straw or non-existent buyer, on a non-existent property would be which of the following? An air loan
761. All of the following are red flags for mortgage fraud, except; A first time homebuyer secured an FHA loan.
762. A loan to an individual, company, or government. Debt
763. An asset that represents a promise to distribute cash flows at some future time. Financial asset
764. A physical observable, or touchable item. Real asset
765. The concept that we should improve the quality of life of all stakeholders for all generations, current and future. Sustainability
766. The worth of the future cash flows, stated in current dollars, that an asset is expected to generate during its lifetime. Value
767. The closing date is determined by: the mutual agreement of the buyer and the seller on the contract to buy and sell real estate
768. The discipline that deals with decisions concerning how money is raised and used by businesses, governments, and individuals. Finance
769. A loan program that allows older homeowners to use part of the equity in their property as tax free income without having to sell is known as? Reverse mortgage
770. In the typical mortgage transaction, there is contract between the parties. The debtor gives two things to the creditor.   A promise to repay the debt and a lien on property to secure the debt. The creditor gives money or credit to the debtor. Because there is a contract, all of the traditional contracts issues are relevant. contract law in mortgages
771. A buyer wants to make an offer based on complex financing. The agent should suggest the buyer consult an attorney to furnish the wording.
772. Theory whereby the borrower pledges the property without giving up ownership or possession of the property. hypothecation
773. Additional time allowed to perform an act or make a payment before default occurs grace period
774. Denial of a mortgage would be allowed if the denial was based on? Lack of income
775. A debt that is completely paid off at the end of a specific number of even payments, each containing interest and a portion toward reducing the principal fully amortized loan
776. After an accepted offer, the buyer was unable to obtain a mortgage.   Both parties agreed to cancel the contract. Who does the earnest money deposit belong to? The purchaser is entitled to the entire amount of the earnest money.
777. Of the following, which allows for payments of interest only with a balloon payment of principal at maturity? Straight
778. The interest or value that an owner has in property over and above any mortgage indebtedness and other liens. equity
779. A personal judgment levied against the mortgagor when a foreclosure sale does not produce sufficient funds to pay the mortgage debt in full. deficiency judgment
780. With a conventional loan, all of the following are correct except? It is never insured by a private agency.
781. The nonperformance of a duty, whether arising under a contract or otherwise; failure to meet an obligation when due default
782. Which of the following is not true of the FHA (Federal Housing Administration)? The FHA provides the money for the mortgage
783. In foreclosure, a borrower who retains possession but is still responsible for all junior liens to the property as well as liable to the IRS for tax on the debt that is forgiven; in this situation, a debtor in possession will seek a workout with a lender whenever possible debtor in possession
784. What is not true of a VA loan? The loan is insured.
785. Hypothecation means? Retaining possession of the property while making payments
786. Regarding FHA loans, which of the following is false? FHA mortgages are not assumable
787. The evidence of a personal debt that is secured by a mortgage or other lien on real estate bond
788. A loan that is paid in 26 half (biweekly) payments each year, resulting in an earlier payoff and lower interest costs over the life of the loan. biweekly mortgage
789. Which of the following may not be a requirement of an FHA loan? Make a 15% down payment
790. Complete disclosure of the total cost of credit on a loan is required by? Regulation Z
791. The final payment of a mortgage loan that is considerably larger than the required periodic payments because the loan amount was not fully amortized. balloon payment
792. Funds for a VA loan are provided by which of the following? Approved lenders
793. Rate of interest charged on a loan, calculated to take into account up-front loan fees and points. Usually higher than the contract interest rate. annual percentage rate
794. A loan in which the principal as well as the interest is payable in monthly or other periodic installments over the term of the loan. amortized loan
795. Usury laws prohibit which of the following? Charging interest rates higher than allowed by law
796. A retired Air Force officer purchased a home using his VA loan. Several years later he sold the property and with the lender’s approval the buyer assumed the loan. The buyer defaulted on the loan 6 months later. What is the responsibility of the retired Air Force officer? No longer responsible for anything regarding the property or the loan
797. the clause in a mortgage stating that the balance of the secured debt becomes immediately due and payable at the mortgagee’s option if the property is sold alienation clause
798. A mortgage loan in which the interest rate may increase or decrease at specific intervals, following an economic indicator. adjustable-rate mortgage
799. Truth in lending is a disclosure of the true cost of a loan and contains? Trigger terms
800. According to Truth in Lending, your bank must disclose which of the following? According to Truth in Lending, your bank must disclose which of the following?
801. The clause in a note or mortgage that can be enforced to make the entire debt due immediately if the mortgagor defaults acceleration clause
802. As a cost of obtaining a real estate loan, one point equals 1 percent of the Loan amount.
803. The annual rate that is charged for borrowing, expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan NPA
804. A loan taken out on a valuable item, usually a property with the property being used as security Mortgage
805. GNMA are the initials for: ______________________ Government National Mortgage Association
806. An interest rate that moves up and down based on the changes of an underlying interest rate index Variable interest rate
807. FHLMC are the initials for: _____________________ Federal Home Loan Mortgage Corporation
808. An interest rate that is set and does not change over a specific period Fixed interest rate
809. FNMA are the initials for: ______________________ Federal National Mortgage Association
810. One who owes money; a borrower Debtor
811. Usury Law is defines as the maximum amount of interest which can be charged on a security instrument
812. Any item of economic value owned by an individual or corporation, especially that which could be converted to cash Asset
813. The difference between the value of the assets/interest and the cost of something owned Equity
814. A professional opinion of the market value of a property, such as a home, business or other asset Appraisal
815. The final transaction between a buyer and seller of real estate property. The closing
816. An entity (person or institution) that extends credit by giving another entity permission to borrow money if it is paid back at a later date Creditor
817. The part of the purchase price paid in cash up front, reducing the amount of the loan or mortgage. Equity
818. A situation in which a homeowner is unable to make full principal and interest payments on his/her mortgage, which allows the lender to seize the property, evict the homeowner and sell the home. Foreclosure
819. The charge for the privilege of borrowing money, usually expressed as annual percentage rate. Interest
820. Denial of a mortgage would be allowed if the denial was based on? Lack of income
821. When a property is not worth the amount of mortgage owed on it, the mortgage on that property is referred to as being a/an? Underwater mortgage
822. A loan program that allows older homeowners to use part of the equity in their property as tax free income without having to sell is known as? Reverse mortgage
823. A down payment for an FHA loan can go as low as? 20%
824. When a buyer has a poor credit history the bank will charge a higher interest rate due to the risk of the loan not being paid back. This is an example of a? Subprime loan
825. According to Truth in Lending, your bank must disclose which of the following? APR
826. Truth in lending is a disclosure of the true cost of a loan and contains? Trigger terms
827. A retired Air Force officer purchased a home using his VA loan. Several years later he sold the property and with the lender’s approval the buyer assumed the loan. The buyer defaulted on the loan 6 months later. What is the responsibility of the retired Air Force officer? No longer responsible for anything regarding the property or the loan.
828. Usury laws prohibit which of the following? Charging interest rates higher than allowed by law
829. Charging interest rates higher than allowed by law Approved lenders
830. Complete disclosure of the total cost of credit on a loan is required by? Regulation Z
831. Which of the following may not be a requirement of an FHA loan? Make a 15% down payment
832. Regarding FHA loans, which of the following is false? FHA mortgages are not assumable.
833. What is not true of a VA loan? The loan is insured.
834. Which of the following is not true of the FHA (Federal Housing Administration)? The FHA provides the money for the mortgage
835. The secondary money market has the following participants except? FDIC
836. Of the following, which allows for payments of interest only with a balloon payment of principal at maturity? Straight
837. All of the following about a promissory notes are true except? It is evidence of title to the property
838. Which of the following statements regarding real estate financing is false? A promissory note is security for the mortgage
839. If a mortgage lender discriminates against a loan applicant on the basis of marital status, it violates what law? ECOA
840. A lender’s refusal to lend money to potential homeowners attempting to purchase properties located in predominantly African American neighborhoods is known as: Redlining.
841. As a cost of obtaining a real estate loan, one point equals 1 percent of the Loan amount.
Module Thirteen    
842. Failure to renew your license on time will result in a penalty of double fee. 30 days late, will result in the license being cancelled.
843. The extent of cooperation of reciprocity with other states. varies.
844. Every applicant for a resident license as a real estate salesperson shall be 8 years of age or older and be a bona fide resident of the state of Mississippi prior to filing his application.
845. The responsible broker must report any licensee for whom that broker is responsible to the commission if he/she believes that a licensee has violated laws rules or regulations.
846. A person who offers a timeshare plan located outside of Mississippi in a national publication or by electronic media, which is not directed to or targeted to any individual located in Mississippi and contains appropriate disclaimers is exempt from the registration requirements.
847. Any seller of a timeshare plan with the state of Mississippi must be a licensed Real Estate Broker or Real Estate Salesperson except the developer and his regular employees.
848. The expiration, suspension or revocation of a responsible broker’s license shall automatically suspend the license of every real estate licensee currently under the supervision of that broker. In such cases a licensee may transfer to another responsible broker.
849. Every licensee shall notify the Real Estate Commission of any adverse court decisions in which the licensee appeared as a defendant within 10 days
850. The Commission mandated disclosure form may be duplicated in content and size but not altered.
851. In the event one or more parties are not available to sign one or more disclosures forms, the disclosure will be accomplished orally. The applicable form will be so noted by the broker and said forms will be forwarded for signatures as soon as possible. written electronic transmission will fulfill this requirement.
852. In the event the agency relationship changes between the parties to a real estate transaction new disclosure forms will be acknowledged by all parties involved.
853. In dual agency the buyer shall give his/her consent by signing the MREC Dual Agency Confirmation Form which shall be attached to the offer to purchase
854. “Fiduciary Responsibility” are those duties due the principal (client) in a real estate transaction are Loyalty, Obedience, Disclosure, Confidentiality, Reasonable Skill, Care and Diligence and Full Accounting.
855. Brokers who practice disclosed dual agency should do so with the utmost caution to protect consumers and themselves from inadvertent violation of demanding common law standards of disclosed dual agency.
856. Dual Agency is not practiced by some brokers because There may be situations where disclosed dual agency presents conflicts of interest that cannot be resolved without breach of duty to one party or another.
857. “Disclosed Dual Agent” is when an agent representing both parties to a real estate transaction with the informed consent of both parties, with written understanding of specific duties and representation to be afforded each party.
858. Special situations, where unusual facts exist or where one or more parties involved are especially vulnerable, could require additional disclosures not contemplated. In such cases, brokers should seek legal advice prior to entering into an agency relationship.
859. If a broker, as escrow agent, accepts a check and later finds that such check has not been honored by the bank on which it was drawn, the broker shall immediately notify all parties involved in the transaction.
860. Monies received in a trust account on behalf of clients or customers are not assets of the broker; however, a broker may deposit and keep in each escrow account or rental account some personal funds for the express purpose of covering service charges and other bank debits related to each account.
861. When the broker is agent for the seller and for any reason the seller fails or is unable to consummate the transaction, the broker has no right to any portion of the money deposited by the purchaser, even if the commission has been earned. The money must be returned to the purchaser and the broker should look to the seller for compensation.
862. When a broker is agent for the seller and for any reason the seller fails or is unable to consummate the transaction, the broker has no right to any portion of the money deposited by the purchaser even if the commission was earned.
863. Earnest money accepted by the broker or any licensee for which the broker is responsible and upon acceptance of a mutually agreeable contract is required to deposit the money into a trust account prior to the close of business of the next banking day.
864. An agent made real estate signs to put in the front yard of his client’s home. He did not put the name of his responsible broker or name of his real estate firm on the sign. This is a “Blind Ad” and is in violation.
865. In addition to disclosing their licensed status on all advertisements, licensees are required to disclose their license status on all contracts for real estate in which they have an ownership interest.
866. When a licensee is advertising their own property for sale, purchase or exchange which is not listed with a broker, the licensee must The licensee must indicate he or she is licensed.
867. A salesperson wants to advertise on an internet web page. All advertising must be under the direct supervision and in the name of the responsible broker or in the name of the real estate firm.
868. The use of any copyrighted term or insignia on stationary, office signs, or in advertisement by any licensee not authorized to do so, will be considered as “substantial misrepresentation” and cause for refusal, suspension, or revocation of the license.
869. A real estate broker must keep on file following its consummation complete records relating to any real estate transaction for three years.
870. Every contract must reflect whom the broker represents by statement over the signatures of the parties to the contract.
871. Broker Bob received an offer this morning for a property he has listed. Bob promptly called his client and then faxed the offer to his client. Later that day Bob received a second offer that was lower and had bad credit terms for financing. What should Broker Bob do? Present the second offer because the seller has not accepted the first offer and any other written offer received by the broker in a sale shall be presented to the owner.
872. All exclusive buyer representation agreements shall be in writing and properly identify the terms and conditions under which the buyer will rely on the broker for the purchase of real estate including the sales price, the considerations to be paid, the nature of all parties to the agreement and a definite date of expiration. The buyer may terminate the agreement upon fifteen (15) calendar days written notice to the buyer’s exclusive agent.
873. All exclusive listing agreements shall be in writing, properly identify the property to be sold and contain all of the terms and conditions under which the transaction is to be consummated including the sales price, the considerations to be paid, the signatures of all parties to the agreement and a definite date of expiration.
874. A real estate licensee shall deliver a true and correct copy of any instrument to any party or parties executing the same Immediately (at the time of signing).
875. When an offer is made on a property owned by a party with whom the broker has entered into a listing agreement, such broker shall document and date an acceptance or rejection of the offer and upon written request, shall provide a copy of such document to the person making the offer.
876. A real estate broker or salesperson in the ordinary course of his business may give an opinion as to the price of real estate for the purpose of a prospective listing or sale, however this opinion as to the listing price or sale price must not refer to this as an appraisal.
877. Any licensee who fails in a timely manner to respond to official Mississippi Real Estate Commission written communication or who fails or neglects to abide by Mississippi Real Estate Commission Rules and Regulations shall be deemed prima facie, to be guilty of improper dealing.
878. Peggy, a salesperson for broker Bob listed and sold a property. Before being paid for that executed transaction, Peggy changed responsible brokers. Broker Bob can pay Peggy her commission directly.
879. The responsible broker must hang in the office all licenses of the licensees he is responsible for
880. No licensee shall pay any part of a fee, commission or other compensation received by such licensee in buying, selling, exchanging, leasing, auctioning or renting any real estate No licensee shall pay any part of a fee, commission or other compensation received by such licensee in buying, selling, exchanging, leasing, auctioning or renting any real estate
881. A responsible broker must maintain an office and display the license therein. If the broker has more than one office A responsible broker must maintain an office and display the license therein. If the broker has more than one office
882. When advertising a property shared by an out of state broker the name of the Mississippi broker must be listed.
883. The non resident broker can not place any sign on real property located in Mississippi without the written consent of the cooperating Mississippi broker. When both brokers place signs on the property. They should be placed side by side in a prominent place and in close proximity
884. How many copies of a cooperative agreement must a Mississippi broker file with the Mississippi Real Estate Commission? two
885. When there is a cooperative agreement with a non resident broker, the listing or property management agreement for the Mississippi property must remain in the name of the Mississippi broker.
886. A separate cooperating agreement must be filed for each property, prospective user or transaction with said writing reflecting the compensation to be paid to the Mississippi licensed broker.
887. A licensed Mississippi broker may cooperate with a broker licensed in another state who does not hold a Mississippi license through the use of a cooperative agreement.
888. When an agent transfers to a new broker and within 3 days gives written notice to the Commission the name of the principal broker into whose agency he is about to enter mails his license to the Commission and a new license will be issued for the unexpired term of the original license.
889. A change of responsible broker requires the salesperson to within 3 days give written notice to the Commission.
890. Applicants for a real estate license may take the exam but has ten days to find a responsible broker.
891. An affiliated broker can not act independently of his employing broker without the full consent and knowledge of his employing broker
892. It is not the duty of the responsible broker to make sure each agent has completed their post licensing education and kept their license current.
893. A salesperson has a listing with his responsible broker, Broker A.   The salesperson decided to transfer to a new broker before the listing expires. When the agent moves to the new broker, who owns the listing? Broker A
894. A nonmaterial fact which need not be disclosed is A felony committed on the property.
895. Real Estate Transfer Disclosures are needed for residential stock cooperatives of one to four units when a real estate professional is involved.
896. Any person who willfully and negligently does not deliver the needed disclosures shall be liable in the amount of actual damages suffered by a transferee
897. Delivery to a spouse of a transferee Shall be deemed delivery to the transferee unless provided otherwise in the contracts.
898. An agent without personal knowledge will not be held responsible for an error when the error was by a Any and or all of these.
899.   if the error, inaccuracy or omission was not within their personal knowledge.
900. If any disclosure, or any material amendment of any disclosure, required to be made is delivered after the execution of an offer to purchase the transferee shall have three (3) days after delivery in person or five (5) days after delivery by deposit in mail to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferor’s agent.
901. Real Estate Transfer Disclosures are needed for residential stock cooperatives of one to four units when a real estate professional is involved.
902. An agent without personal knowledge will not be held responsible for an error when the error was by a Any and or all of these.
903. Neither the transferor nor any listing or selling agent shall be liable for an error, inaccuracy or omission of information delivered  

If the error, inaccuracy or omission was not within their personal knowledge.

904. Delivery of the Real Estate Transfer Disclosure is mandatory in all of the following cases except a transfer to a government entity.
905. The transferor shall indicate delivery of the Property Disclosure Statement on either or both.
906. In the case of transfer by a real property sales contract, or by a lease together with an option to purchase, or a ground lease coupled with improvements, delivery of the Transfer Disclosure Statement is delivered as soon as practicable before the execution of the contract.
907. The transferor of a duplex shall deliver to the prospective transferee the written property disclosure statement as soon as practicable before the transfer of title.
908. Transfer Disclosures are mandatory for all of the following except A transfer from one co owner to one or more other co owners.
909. Participation in IREBEA is accomplished by broker written notice to an authorized financial institute.
910. The interest in a IREBEA account for nominal or short term deposits shall be made quarterly to the Mississippi Housing Opportunity Fund.
911. The determination of whether a client’s funds are nominal in amount or to be held for a short period of time est in the sound judgment of each broker, and no charge of ethical impropriety or other breach of professional conduct shall attend a broker’s exercise of judgment in that regard.
912. IREBEA (Interest on Real Estate Broker’s Escrow Accounts) is voluntary
913. A broker wants to pay his neighbor a referral fee for sending the broker the neighbor’s sister who purchased a home through that broker. The broker can not pay his neighbor a fee unless the neighbor is a licensed real estate agent and then the broker would need to pay his broker.
914. No fee, commission or other valuable consideration may be paid to a person for real estate brokerage activities unless the person provides evidence of a license or a cooperating agreement.
915. Monies from the “real estate license fund” are used for to the “real estate license fund”.
916. Licensees who do not show proof of E and O Insurance have 30 days to correct the deficiency. If the deficiency is not corrected within the 30 days the licensees licenses will be placed on inactive status.
917. the licensees licenses will be placed on inactive status. fund Mississippi Real Estate Commission operations.
918. Any person taking appeal shall post a satisfactory bond in the amount of _________dollars for the payment of any costs which may be adjudged against him. $500
919. Any person charged with a violation shall be given____________days notice of the hearing upon the charges filed, together with a copy of the complaint. Fifteen days
920. Any applicant or licensee or person aggrieved shall have the right of appeal from any adverse or order or decision the Commission to the circuit court of the county of the residence of the applicant, licensee or person or of the First Judicial District of Hinds County within ___________days from the service of notice of the action of the Commission. thirty
921. Real Estate Commissioners are from each congressional district and one at large.
922. All license fee funds must be submitted to the State Treasury with detailed explanation on a weekly basis.
923. Commissioners are vested with power of court to issue and enforce subpoenas, levy fines and levy jail terms.
924. All (5) five commissioners appointed by the Governor with advise and consent of the Senate Must be a resident for 6 years and a managing broker for 5 years.
925. Licensees may obtain errors and omissions coverage independently if the coverage contained in the policy follows the minimum requirement of a per claim limit is not less than $100,000.
926. Brokers may give legal advice Never.
927. When changing responsible brokers The Commission shall issue a new license for a period of one year and when the agent completes the mandatory hours of continuing education will issue a license for 4 more years.
928. When within 3 days a salesperson notifies the Commission of a change of broker. The salesperson must give the name of his responsible broker and the name of the principal broker into whose agency the salesperson is about to enter.
929. Notice in writing shall be given to the Commission by any real estate salesperson with a change of responsible broker within 3 days
930. All licenses issued to a real estate salesperson or broker salesperson shall designate the responsible broker of such salesperson or broker salesperson.
931. An earnest money deposit pertaining to a cooperative agreement must be held in escrow by the Mississippi broker unless both the buyer and seller agree in writing to relieve the Mississippi broker of this responsibility.
932. When both the non resident broker and the Mississippi broker have their company signs on a property listed together, the signs should have equal prominence and be placed side by side.
933. When a broker has an agreement with a non resident broker, involving a property located in Mississippi all advertising must have the name and telephone number of the Mississippi broker. and the Mississippi broker shall be given equal prominence.
934. Whenever a Mississippi broker enters into a cooperating agreement with a non resident broker, the Mississippi broker must file two copies of the cooperating agreement within 10 days with the Mississippi Real Estate Commission.
935. Licensee following notification of action resulting from a Commissioner hearing has 30 days to appeal any ruling and post a required $500 bond for any costs which may be adjudged against him.
936. Licensee following notification of action resulting from a Commissioner hearing has 30 days to appeal any ruling and post a required $500 bond for any costs which may be adjudged against him.
937. The following may be exempt from having a license All of these
938. It is unlawful to carry out the business of a broker or salesperson without a license.
939. A non resident may apply for a nonresident’s license in Mississippi All of these
940. A broker applicant who has not held a salesperson license for a period of 12 months immediately prior to submitting an application, must have successfully completed 150 classroom hours in real estate courses, which courses are acceptable for credit toward a degree at a college or university as approved by the Southern Association of Colleges and Schools.
941. Who are exempt from having a real estate license? A Public Official holding an auction.
942. Who does not have to display an Equal Opportunity Housing sign? An owner selling his own property
943. A dual agency is in effect when both the buyer and seller accept dual agency and acknowledge the dual agency agreement in writing.
944. Who is responsible for completing the Property Condition Disclosure Statement? The seller
945. “Customer” shall mean that person not represented in a real estate transaction. It may be the buyer, seller, landlord or tenant. Not represented in a transaction.
946. As a disclosed dual agent, the licensee shall not represent the interests of one party to the exclusion or detriment of the interests of the other party. True
947. A seller can enter into a “listing agreement” with a real estate firm authorizing the firm and its agent(s) to represent the seller in finding a buyer for his property. True
948.    
949.    
950.    
951.    
952.    
953.    
954.    
955.    
956.    
957.    
958.    
959.    
960.    
961.    
962.    
963.    
964.    
965.    
966.    
967.    
968.    
969.    
970.    
971.    
972.    
973.