Section 12 Unit 1 Exam

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Question #1

You’re a new licensee who’s thrilled to be working with five different buyer clients. Under what circumstances is it appropriate for you to determine the earnest money amount for your clients?

A When the buyer’s target is a second home.

B If the buyer is a first-time buyer.

C If the buyer is elderly.

D In none of these circumstances.

Question #2

In the buyer’s investigation of property section of the sample sales contract you reviewed, the ___________ is obligated to cover the cost of any damages caused by inspection.

A Home inspector

B Buyer

C Seller

D Broker

Question #3

Amy is about to complete her very first sales contract. What should she do to prepare?

A Have a drink. It’s time to celebrate!

B Review the contract and make sure she understands what each section means.

C Nothing. The sales contract will write itself.

D Grab waters for herself and her clients.

Question #4

Which section of the sample purchase agreement you reviewed explains how and when the balance of the buyer’s down payment is to be made?

A Purchase Price section

B Settlement section

C Finance Terms section

D Financing section

Question #5

Daisy is a buyer who made an offer for an older house on three acres. Daisy reviewed the seller disclosures and ordered a professional home inspection. Based on the results of the inspection, which showed a number of latent defects that made Daisy uncomfortable, she decided to exercise her contractual right to cancel the agreement. What’s NOT true about this situation?

A Daisy is entitled to receive her earnest money back as long as she’s formally canceled the purchase agreement within the time period specified in the contract contingency.

B Daisy is obligated to give the seller a copy of the inspection report at no cost.

C The seller is obligated to repair the defects identified in the inspection report before accepting any other offer.

D If Daisy hadn’t decided to cancel the agreement, she could have exercised her contractual right to request the seller make repairs to the property based on the inspection reports.

Question #6

In the sample sales contract you reviewed, the cost of title insurance was allocated to the buyer or the seller in which subsection?

A Other Costs

B Escrow and Title

C Inspections, Reports, and Certificates

D Government Requirements and Retrofit

Question #7

Which of these statements about inclusions and exclusions is true?

A Televisions that are fixed to the wall are typically considered to be real property.

B Buyers may use this section to specify which items they want the seller to upgrade.

C Exclusions that are not listed in the MLS cannot be excluded in the sales contract.

D Sellers may use this section to indicate personal property that is included in the sale.