MTRES - Montana Real Estate Salesperson

Question 21: Buyers of an older log home near Bigfork include a clause letting them hire a professional to examine the structure, wiring, and septic system, and to cancel if serious defects appear. Which contingency gives them this right to walk away?

A financing contingency

An appraisal contingency

An inspection contingency

A title contingency

Question 22: During negotiations for a Livingston warehouse, both the buyer and the seller genuinely and honestly believe the building sits on a particular lot, when in fact it does not. This shared, honest error about a material fact is best identified as which defect in consent?

Fraud

Duress

Undue influence

Mutual mistake

Question 23: A seller who listed a commercial building in Bozeman files for bankruptcy, and title to the property passes to a court-appointed receiver before any buyer is found. Under national agency principles, how is the listing agreement affected by this event?

Suspended until bankruptcy is resolved

Terminated by operation of law

Automatically assigned to the receiver

Converted into a dual agency

Question 24: An elderly, dependent seller relies completely on a trusted caretaker, who uses that close relationship to pressure the seller into an agreement that mainly benefits the caretaker. When one party abuses a position of trust to overcome another's free will, which defect is present?

Duress

Fraud

Undue influence

Mutual mistake

Question 25: A property owner signs a listing agreement only after the other party threatens him with physical harm unless he signs immediately. Because his agreement was compelled by unlawful threats rather than given freely, which defect in the reality of consent has occurred?

Duress

Undue influence

Fraud

Unilateral mistake

Question 26: An owner in Missoula stands by silently while another person repeatedly tells buyers he is authorized to sell her ranch, allowing those buyers to reasonably rely on that appearance of authority. Which doctrine may prevent the owner from later denying that an agency existed?

Agency by ratification

Gratuitous agency

Express agency

Agency by estoppel

Question 27: A buyer and seller both sign a contract for a log home outside Kalispell, but closing is six weeks away and no deed has yet changed hands. During this interval, what interest in the property does the buyer now hold?

Equitable title

Legal title

A leasehold interest

No interest until closing

Question 28: A seller deliberately conceals a known cracked foundation and lies about it, and the buyer, relying on those false statements, signs a contract for a Butte cottage. This intentional deception that induced the buyer's agreement is best described by which term?

Duress

Fraud

Undue influence

Mutual mistake

Question 29: A sales associate negotiates terms on a Bozeman condominium before the owner has actually signed any listing, and the owner, upon learning of the completed work, later accepts and approves those unauthorized acts. Which method of creating agency does the owner's after-the-fact approval illustrate?

Agency by estoppel

Express agency

Implied agency

Agency by ratification

Question 30: Two parties sign a fully detailed, mutually agreed contract, exchange valuable consideration, and are both competent adults, but the agreement's actual objective is to carry out an illegal activity. Despite meeting the other requirements, why can this agreement never be a valid contract?

It lacks consideration

It lacks mutual assent

It lacks a legal purpose

It lacks competent parties

Question 31: Two parties reach a purely oral agreement for the sale of a parcel of Montana ranchland, and later one side backs out. Because a certain law requires real estate sale agreements to be written and signed, why can a court not enforce this oral deal?

The statute of frauds bars it

It lacks valid consideration

Both parties were incompetent

It serves an illegal purpose

Question 32: When discussing compensation with a seller, a broker states that the commission rate is set only by that broker's firm and is open to negotiation, never fixed by agreement among competing firms. In every real estate transaction, how is a broker's commission properly characterized?

It is set by local custom

It is always negotiable

It is fixed by the trade association

It is regulated to a standard rate

Question 33: An agent wants to make cold calls to generate new seller leads across the Kalispell area. Before dialing consumers at home, federal telemarketing rules require her to check the phone numbers against which registry to avoid contacting people who have opted out?

The multiple listing service

The HUD complaint database

The E&O policy roster

The National Do Not Call Registry

Question 34: A broker holds an exclusive right-to-sell listing on a Bozeman home, and the transaction closes with title transferring to the buyer during the listing term. Regarding the listing agreement between the broker and the seller, what happens once the sale closes?

It automatically renews for ninety days

It converts to an open listing

It terminates; its purpose is fulfilled

It remains in force indefinitely

Question 35: A Montana broker is legally responsible for overseeing the professional activities of the salespeople licensed under her, ensuring their transactions and trust accounts comply with the law. This ongoing duty to monitor and direct affiliated licensees is best described as what?

Vicarious liability

Antitrust compliance

Errors and omissions coverage

Broker supervision

Question 36: A real estate professional working on commission is engaged solely to find and sign tenants for a managed apartment building and has no responsibility for maintaining or otherwise operating the property. Which property management role does this person fill?

An asset manager

A leasing agent

A resident building manager

A corporate property manager

Question 37: An investment property owner and a professional manager sign a written contract that authorizes the manager to operate the property, make many day-to-day decisions, and act as the owner's general agent. Which contract creates this relationship between owner and manager?

A management agreement

A listing agreement

A net listing

A leasing agent agreement

Question 38: An agent phones homeowners on a Great Falls block, warning that families of a certain race are moving in and property values will soon plummet, urging them to list quickly before prices fall. This profit-driven scare tactic is known as what?

Steering

Redlining

Blockbusting

Conciliation

Question 39: A Helena agent shows minority buyers homes only in certain neighborhoods and white buyers homes only in others, guiding each group toward areas he thinks suit them. This practice of channeling buyers toward or away from areas based on protected class is called what?

Blockbusting

Steering

Redlining

Puffing

Question 40: A prospective purchaser hires a broker under a written contract whose purpose is to locate a suitable property and represent the purchaser's interests throughout the search and negotiation. Like a listing, what kind of contract is this buyer representation agreement?

A sales contract

An option contract

An employment contract

A property management agreement

MTRES Montana Real Estate Salesperson - Set 4 - Part 2

Question 21: Buyers of an older log home near Bigfork include a clause letting them hire a professional to examine the structure, wiring, and septic system, and to cancel if serious defects appear. Which contingency gives them this right to walk away?

Question 22: During negotiations for a Livingston warehouse, both the buyer and the seller genuinely and honestly believe the building sits on a particular lot, when in fact it does not. This shared, honest error about a material fact is best identified as which defect in consent?

Question 23: A seller who listed a commercial building in Bozeman files for bankruptcy, and title to the property passes to a court-appointed receiver before any buyer is found. Under national agency principles, how is the listing agreement affected by this event?

Question 24: An elderly, dependent seller relies completely on a trusted caretaker, who uses that close relationship to pressure the seller into an agreement that mainly benefits the caretaker. When one party abuses a position of trust to overcome another's free will, which defect is present?

Question 25: A property owner signs a listing agreement only after the other party threatens him with physical harm unless he signs immediately. Because his agreement was compelled by unlawful threats rather than given freely, which defect in the reality of consent has occurred?

Question 26: An owner in Missoula stands by silently while another person repeatedly tells buyers he is authorized to sell her ranch, allowing those buyers to reasonably rely on that appearance of authority. Which doctrine may prevent the owner from later denying that an agency existed?

Question 27: A buyer and seller both sign a contract for a log home outside Kalispell, but closing is six weeks away and no deed has yet changed hands. During this interval, what interest in the property does the buyer now hold?

Question 28: A seller deliberately conceals a known cracked foundation and lies about it, and the buyer, relying on those false statements, signs a contract for a Butte cottage. This intentional deception that induced the buyer's agreement is best described by which term?

Question 31: Two parties reach a purely oral agreement for the sale of a parcel of Montana ranchland, and later one side backs out. Because a certain law requires real estate sale agreements to be written and signed, why can a court not enforce this oral deal?

Question 32: When discussing compensation with a seller, a broker states that the commission rate is set only by that broker's firm and is open to negotiation, never fixed by agreement among competing firms. In every real estate transaction, how is a broker's commission properly characterized?

Question 33: An agent wants to make cold calls to generate new seller leads across the Kalispell area. Before dialing consumers at home, federal telemarketing rules require her to check the phone numbers against which registry to avoid contacting people who have opted out?

Question 34: A broker holds an exclusive right-to-sell listing on a Bozeman home, and the transaction closes with title transferring to the buyer during the listing term. Regarding the listing agreement between the broker and the seller, what happens once the sale closes?

Question 35: A Montana broker is legally responsible for overseeing the professional activities of the salespeople licensed under her, ensuring their transactions and trust accounts comply with the law. This ongoing duty to monitor and direct affiliated licensees is best described as what?

Question 36: A real estate professional working on commission is engaged solely to find and sign tenants for a managed apartment building and has no responsibility for maintaining or otherwise operating the property. Which property management role does this person fill?

Question 37: An investment property owner and a professional manager sign a written contract that authorizes the manager to operate the property, make many day-to-day decisions, and act as the owner's general agent. Which contract creates this relationship between owner and manager?

Question 38: An agent phones homeowners on a Great Falls block, warning that families of a certain race are moving in and property values will soon plummet, urging them to list quickly before prices fall. This profit-driven scare tactic is known as what?

Question 39: A Helena agent shows minority buyers homes only in certain neighborhoods and white buyers homes only in others, guiding each group toward areas he thinks suit them. This practice of channeling buyers toward or away from areas based on protected class is called what?

Question 40: A prospective purchaser hires a broker under a written contract whose purpose is to locate a suitable property and represent the purchaser's interests throughout the search and negotiation. Like a listing, what kind of contract is this buyer representation agreement?

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