VTRES - Vermont Real Estate Salesperson

Question 21: A buyer gives a seller three days to accept an offer, but on the second day, before the seller has responded, the buyer's agent telephones the seller's agent and withdraws the offer entirely. What is the legal effect of this communication?

The offer must stay open

A binding contract now exists

The offer is terminated

The seller may still accept

Question 22: A listing agreement is generally discharged if the employing broker or the property seller dies or becomes incapacitated during its term. However, one very similar event does not end the agreement at all. Which occurrence leaves a valid listing intact?

Death of the employing broker

Incapacity of the seller

Bankruptcy of the seller

Death of the sales associate

Question 23: A buyer and seller shook hands on the sale of a house and even agreed on a price, but they never signed any document. When the seller changes his mind, which fact most directly prevents the buyer from enforcing the deal?

The price was never fixed

No written contract was signed

The buyer paid no deposit

The seller lacked legal capacity

Question 24: A broker holding an exclusive right-to-sell listing wishes to hand the entire listing over to a colleague working at another firm. Because the agreement rests on that particular broker's unique professional efforts, what must occur before it can be transferred?

The broker may assign it freely

A court order is required

The principal must consent in writing

The buyer must approve the transfer

Question 25: Before any buyer appears, a listed house is destroyed by fire and the parcel's permitted use is changed by a government zoning action beyond the owner's control. Apart from a completed sale, which of these outcomes terminates the listing agreement?

Destruction of the property

The sales associate resigns

A cooperating broker withdraws

The buyer changes lenders

Question 26: An owner offers a prospective purchaser the right to buy a property at a fixed price within a set period, and only the optionee may enforce the arrangement by choosing to exercise it. Which type of contract does an option represent?

Bilateral contract

Executed contract

Implied contract

Unilateral contract

Question 27: A buyer signs an agreement committing to work with only a single brokerage throughout the property search, while that same brokerage remains free to represent other buyer-clients at the same time. Which type of buyer representation agreement does this describe?

An exclusive buyer representation agreement

A nonexclusive representation agreement

An open buyer listing

A dual agency agreement

Question 28: No one signs anything and no terms are spoken aloud, yet the parties' actions and conduct clearly show that they intend to be bound to an agreement. When intention is demonstrated this way, which type of contract has been formed?

Express contract

Implied contract

Executed contract

Bilateral contract

Question 29: A listing includes a clause providing that if the owner transfers the property within a set number of days after the listing expires to a buyer the broker originally introduced, the owner still owes a commission. This clause is known as what?

An automatic extension clause

A liquidated damages clause

An escape clause

A broker protection clause

Question 30: In most states, failing to include a specific ending date in an exclusive listing can lead to suspension or revocation of a broker's license, and clauses that renew the listing automatically are widely prohibited. Why do regulators require a definite termination date?

To guarantee the broker a commission

To satisfy the statute of frauds

To protect the seller from indefinite obligation

To allow assignment to another broker

Question 31: In an owner-financed sale, the seller extends credit and the buyer pays the purchase price in installments over time under an agreement sometimes called a contract for deed, bond for title, or installment contract. What is the general name for this agreement?

A land contract

An option contract

A purchase money mortgage

An escrow agreement

Question 32: A tenant signs a lease that also grants her the right to buy the rented property at a preset price at any point during the lease term if she chooses. Which common arrangement combines a rental with the right to purchase?

A land contract

A lease with option to purchase

A net listing

A novation of the lease

Question 33: When making an offer to purchase a home, a buyer typically includes a check as a good-faith deposit that shows serious intent and helps compensate the seller for taking the property off the market. What is this good-faith deposit called?

Liquidated damages

A retainer fee

Option consideration

Earnest money

Question 34: For an option to purchase real estate to be valid and binding, the prospective buyer must give something of value to secure the owner's promise to hold the property available at the fixed price. What does the optionee typically provide for this right?

A signed promise to buy

A recorded deed

A fee as consideration

A mortgage on the property

Question 35: A property owner grants a prospective purchaser the right to buy the property at a set price at any time within the next six months, in exchange for a fee. Which contract gives the purchaser this right without obligating a purchase?

A land contract

A purchase money mortgage

An installment sales contract

An option contract

Question 36: An agent's fiduciary duties to the principal spring from a relationship of trust and confidence and are enforced by law rather than being merely moral or ethical expectations. Among the following, which one is a recognized common-law fiduciary duty owed to the principal?

Puffing

Loyalty

Procuring cause

Ratification

Question 37: An agent is empowered to do anything the principal could lawfully do in person, with authority that is virtually unlimited in scope, such as a court-appointed guardian caring for both the ward's person and property. Which classification of agent holds this broadest authority?

Universal agent

General agent

Special agent

Designated agent

Question 38: A real estate professional helps both the buyer and the seller complete the paperwork and ministerial tasks needed to transfer ownership, but represents neither party's interests and negotiates for no one. Which role best describes this professional in the transaction?

Dual agent

Seller's subagent

Nonagent or transaction broker

Designated agent

Question 39: A buyer wants a broker to locate a suitable property and to represent the buyer's interests throughout the purchase, so the two enter a contract that stipulates the activities and responsibilities expected of the broker. Which agreement establishes this buyer-broker agency relationship?

A listing agreement

A buyer representation agreement

A property management agreement

A cooperating broker agreement

Question 40: Several events can bring a real estate agency relationship to an end before or without a completed sale. Considering the recognized ways an agency terminates, which of the following would properly end the agency relationship between a broker and principal?

A price reduction by the seller

The buyer changing lenders

Expiration of the agreement's term

An open house drawing no offers

VTRES Vermont Real Estate Salesperson - Set 4 - Part 2

Question 21: A buyer gives a seller three days to accept an offer, but on the second day, before the seller has responded, the buyer's agent telephones the seller's agent and withdraws the offer entirely. What is the legal effect of this communication?

Question 22: A listing agreement is generally discharged if the employing broker or the property seller dies or becomes incapacitated during its term. However, one very similar event does not end the agreement at all. Which occurrence leaves a valid listing intact?

Question 23: A buyer and seller shook hands on the sale of a house and even agreed on a price, but they never signed any document. When the seller changes his mind, which fact most directly prevents the buyer from enforcing the deal?

Question 24: A broker holding an exclusive right-to-sell listing wishes to hand the entire listing over to a colleague working at another firm. Because the agreement rests on that particular broker's unique professional efforts, what must occur before it can be transferred?

Question 25: Before any buyer appears, a listed house is destroyed by fire and the parcel's permitted use is changed by a government zoning action beyond the owner's control. Apart from a completed sale, which of these outcomes terminates the listing agreement?

Question 26: An owner offers a prospective purchaser the right to buy a property at a fixed price within a set period, and only the optionee may enforce the arrangement by choosing to exercise it. Which type of contract does an option represent?

Question 27: A buyer signs an agreement committing to work with only a single brokerage throughout the property search, while that same brokerage remains free to represent other buyer-clients at the same time. Which type of buyer representation agreement does this describe?

Question 28: No one signs anything and no terms are spoken aloud, yet the parties' actions and conduct clearly show that they intend to be bound to an agreement. When intention is demonstrated this way, which type of contract has been formed?

Question 29: A listing includes a clause providing that if the owner transfers the property within a set number of days after the listing expires to a buyer the broker originally introduced, the owner still owes a commission. This clause is known as what?

Question 30: In most states, failing to include a specific ending date in an exclusive listing can lead to suspension or revocation of a broker's license, and clauses that renew the listing automatically are widely prohibited. Why do regulators require a definite termination date?

Question 31: In an owner-financed sale, the seller extends credit and the buyer pays the purchase price in installments over time under an agreement sometimes called a contract for deed, bond for title, or installment contract. What is the general name for this agreement?

Question 32: A tenant signs a lease that also grants her the right to buy the rented property at a preset price at any point during the lease term if she chooses. Which common arrangement combines a rental with the right to purchase?

Question 33: When making an offer to purchase a home, a buyer typically includes a check as a good-faith deposit that shows serious intent and helps compensate the seller for taking the property off the market. What is this good-faith deposit called?

Question 34: For an option to purchase real estate to be valid and binding, the prospective buyer must give something of value to secure the owner's promise to hold the property available at the fixed price. What does the optionee typically provide for this right?

Question 35: A property owner grants a prospective purchaser the right to buy the property at a set price at any time within the next six months, in exchange for a fee. Which contract gives the purchaser this right without obligating a purchase?

Question 36: An agent's fiduciary duties to the principal spring from a relationship of trust and confidence and are enforced by law rather than being merely moral or ethical expectations. Among the following, which one is a recognized common-law fiduciary duty owed to the principal?

Question 37: An agent is empowered to do anything the principal could lawfully do in person, with authority that is virtually unlimited in scope, such as a court-appointed guardian caring for both the ward's person and property. Which classification of agent holds this broadest authority?

Question 38: A real estate professional helps both the buyer and the seller complete the paperwork and ministerial tasks needed to transfer ownership, but represents neither party's interests and negotiates for no one. Which role best describes this professional in the transaction?

Question 39: A buyer wants a broker to locate a suitable property and to represent the buyer's interests throughout the purchase, so the two enter a contract that stipulates the activities and responsibilities expected of the broker. Which agreement establishes this buyer-broker agency relationship?

Question 40: Several events can bring a real estate agency relationship to an end before or without a completed sale. Considering the recognized ways an agency terminates, which of the following would properly end the agency relationship between a broker and principal?

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