MTRES - Montana Real Estate Salesperson

Question 1: A vendee has faithfully paid installments on a contract for deed for eight years but still lacks any recorded deed. Which statement BEST captures the title situation between the vendor and the vendee before the final payment finally clears?

Both hold legal title jointly

Vendee holds legal, vendor holds equitable

Neither holds any title yet

Vendor holds legal, vendee holds equitable

Question 2: A seventeen-year-old, below the age of contractual capacity, signs a contract to buy a condo, and every other element of the deal is properly present. Considering that only the minor may choose to disaffirm it, which description BEST fits this contract?

Voidable

Void

Valid and binding

Unenforceable

Question 3: A listing contract is created using a forged owner's signature, so a genuine essential element was never actually present. Considering how the law treats an agreement that was never legally formed at all, which description BEST fits this contract in the eyes of a court?

Voidable

Unenforceable

Executory

Void

Question 4: A broker in Missoula advances funds toward a development and, as part of the deal, becomes a part-owner of the very property he is engaged to sell. When the other owner tries to cancel unilaterally, which principle BEST protects the broker's authority?

Gratuitous agency doctrine

Ostensible agency by estoppel

Agency coupled with an interest

Ratification of the agency

Question 5: A broker in Helena has been advising a buyer for weeks when the buyer decides to offer on a condominium the broker's own firm has listed, so the broker would represent both principals at once. Which statement BEST captures the core limitation this dual agency imposes?

The broker owes no duties anymore

Only the seller retains fiduciary protection

Confidentiality no longer applies to either

Undivided loyalty cannot serve both principals

Question 6: A buyer and seller negotiate and sign a Belgrade purchase agreement entirely online using electronic signatures, never printing a page. Under modern federal and state law governing electronic transactions, how are these electronic signatures and records generally treated compared with ink on paper?

As legally valid and enforceable

As valid only if notarized

As inherently unenforceable

As mere letters of intent

Question 7: A seller's agent in Missoula knows the home rests on a hidden landfill that would not be revealed by an ordinary inspection, a condition affecting safety. What must the agent do regarding this latent defect toward a prospective buyer who is a customer?

Keep it confidential for the seller

Reveal it only if asked

Disclose the known material defect

Cover it under puffing

Question 8: A seller breaches a valid contract by refusing to convey a unique historic property, and the buyer does not want money but asks the court to force the seller to complete the sale and transfer title as promised. Which remedy is the buyer seeking?

Liquidated damages

Compensatory damages

Punitive damages

Specific performance

Question 9: A seller's agent in Helena helps set a realistic listing price, markets the property diligently, and carefully reviews offers, using the skill and knowledge expected of a competent professional throughout the transaction. Which fiduciary duty is the agent primarily fulfilling through this competent performance?

Reasonable care

Obedience

Accounting

Confidentiality

Question 10: A tenant pays a nonrefundable fee for the right, but not the obligation, to buy the property she rents at a set price within one year. The owner must sell only if she chooses to exercise. What kind of contract is this?

A bilateral sales contract

A binding purchase agreement

A unilateral option contract

A right of first refusal

Question 11: A purchase contract for a Kalispell condo states that if the buyer defaults without good reason, the seller may keep the earnest money deposit as the seller's sole and agreed compensation. This predetermined amount agreed upon in advance is known as which of the following?

Punitive damages

Compensatory damages

Specific performance

Liquidated damages

Question 12: When a buyer assumes a seller's existing mortgage and the lender formally releases the original borrower, substituting the buyer as the party primarily liable through an entirely new agreement, which term describes this substitution of a new contract for the old one?

Assignment

Novation

Rescission

Delegation

Question 13: The parties to a contract wish to cancel their agreement entirely and be restored to the exact financial positions they held before signing, so any money or property that changed hands must be returned. This remedy that unwinds the contract is known as which term?

Novation

Assignment

Rescission

Liquidated damages

Question 14: While representing a seller in Helena, an agent learns that a prospective purchaser is willing to pay considerably more than the current offer and is closely related to the agent. Which fiduciary duty requires the agent to inform the seller of these material facts?

Disclosure

Confidentiality

Obedience

Accounting

Question 15: After both parties sign, a seller in Kalispell gets a higher offer and refuses to convey the property to the original buyer. The buyer wants the court to force completion of the sale as agreed. Which remedy is the buyer pursuing?

A suit for liquidated damages

A suit for specific performance

Rescission of the contract

A suit for the purchase price

Question 16: A broker in Missoula wants to purchase a home she has listed, buying it for her own account, and she must first reveal her personal interest and obtain the seller's consent before doing so. Which fiduciary duty most directly governs this situation?

Accounting

Disclosure to customers

Reasonable care

Loyalty

Question 17: An instructor explains that any well-drafted contingency clause must spell out three specific things so that both parties know exactly how it operates. Which set correctly lists those three required elements of a contingency provision found in a sales contract?

Action, time frame, and who pays

Price, deposit, and closing date

Buyer, seller, and broker names

Deed type, survey, and taxes

Question 18: A couple wants to buy a larger lakefront property near Flathead Lake but must first sell their current house to raise the needed funds. They add a clause making the new purchase conditional on that earlier sale. Which contingency protects them here?

A financing contingency

An appraisal contingency

A sale-of-home contingency

An inspection contingency

Question 19: During a listing in Helena, the agent decides she no longer wishes to represent the seller and formally withdraws from the relationship before the term ends, while the seller had done nothing to cancel it. Which term describes the agent's unilateral withdrawal?

Renunciation by the agent

Revocation by the principal

Mutual agreement to cancel

Termination by operation of law

Question 20: A buyer under contract on a Billings condo includes a provision allowing cancellation without penalty if the lender's appraiser values the unit below the agreed purchase price. Which contingency does this provision describe, tying the deal to a valuation outcome?

An inspection contingency

An appraisal contingency

A financing contingency

A sale-of-home contingency

MTRES Montana Real Estate Salesperson - Set 4 - Part 1

Question 1: A vendee has faithfully paid installments on a contract for deed for eight years but still lacks any recorded deed. Which statement BEST captures the title situation between the vendor and the vendee before the final payment finally clears?

Question 2: A seventeen-year-old, below the age of contractual capacity, signs a contract to buy a condo, and every other element of the deal is properly present. Considering that only the minor may choose to disaffirm it, which description BEST fits this contract?

Question 3: A listing contract is created using a forged owner's signature, so a genuine essential element was never actually present. Considering how the law treats an agreement that was never legally formed at all, which description BEST fits this contract in the eyes of a court?

Question 4: A broker in Missoula advances funds toward a development and, as part of the deal, becomes a part-owner of the very property he is engaged to sell. When the other owner tries to cancel unilaterally, which principle BEST protects the broker's authority?

Question 5: A broker in Helena has been advising a buyer for weeks when the buyer decides to offer on a condominium the broker's own firm has listed, so the broker would represent both principals at once. Which statement BEST captures the core limitation this dual agency imposes?

Question 7: A seller's agent in Missoula knows the home rests on a hidden landfill that would not be revealed by an ordinary inspection, a condition affecting safety. What must the agent do regarding this latent defect toward a prospective buyer who is a customer?

Question 8: A seller breaches a valid contract by refusing to convey a unique historic property, and the buyer does not want money but asks the court to force the seller to complete the sale and transfer title as promised. Which remedy is the buyer seeking?

Question 10: A tenant pays a nonrefundable fee for the right, but not the obligation, to buy the property she rents at a set price within one year. The owner must sell only if she chooses to exercise. What kind of contract is this?

Question 11: A purchase contract for a Kalispell condo states that if the buyer defaults without good reason, the seller may keep the earnest money deposit as the seller's sole and agreed compensation. This predetermined amount agreed upon in advance is known as which of the following?

Question 12: When a buyer assumes a seller's existing mortgage and the lender formally releases the original borrower, substituting the buyer as the party primarily liable through an entirely new agreement, which term describes this substitution of a new contract for the old one?

Question 13: The parties to a contract wish to cancel their agreement entirely and be restored to the exact financial positions they held before signing, so any money or property that changed hands must be returned. This remedy that unwinds the contract is known as which term?

Question 14: While representing a seller in Helena, an agent learns that a prospective purchaser is willing to pay considerably more than the current offer and is closely related to the agent. Which fiduciary duty requires the agent to inform the seller of these material facts?

Question 15: After both parties sign, a seller in Kalispell gets a higher offer and refuses to convey the property to the original buyer. The buyer wants the court to force completion of the sale as agreed. Which remedy is the buyer pursuing?

Question 16: A broker in Missoula wants to purchase a home she has listed, buying it for her own account, and she must first reveal her personal interest and obtain the seller's consent before doing so. Which fiduciary duty most directly governs this situation?

Question 17: An instructor explains that any well-drafted contingency clause must spell out three specific things so that both parties know exactly how it operates. Which set correctly lists those three required elements of a contingency provision found in a sales contract?

Question 18: A couple wants to buy a larger lakefront property near Flathead Lake but must first sell their current house to raise the needed funds. They add a clause making the new purchase conditional on that earlier sale. Which contingency protects them here?

Question 19: During a listing in Helena, the agent decides she no longer wishes to represent the seller and formally withdraws from the relationship before the term ends, while the seller had done nothing to cancel it. Which term describes the agent's unilateral withdrawal?

Question 20: A buyer under contract on a Billings condo includes a provision allowing cancellation without penalty if the lender's appraiser values the unit below the agreed purchase price. Which contingency does this provision describe, tying the deal to a valuation outcome?

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