An offer is terminated by ___

Real estate agents will earn their money once a piece of property is ____.

sold or exchanged

Once the paperwork is signed for a sale or transfer, the real estate agents earn their pay.

The terms “index,” “triple net” and “flat” are used to describe ____

leases.

All of these terms relate to leases as they describe how rent is to be calculated and charged.

All of the following are essential elements of a contract, except ____

performance.

Performance is not essential to form a valid contract. Performance may be required to complete the activity called for in a contract after it has been signed (offer and acceptance), but is not necessary to the formation of a contract.

On an exclusive listing, a broker is not disciplined for failure to ____

attach a tax statement to the listing.

An exclusive listing requires a definite termination date. Further, copies of all documents that are signed need to be given to the person who signed them. A tax statement does not need to be attached to the listing.

Broker Greg took a listing on a commercial office complex and received an option to purchase the property within one month. On the 25th day of the listing, Broker Greg decides to buy the property. Before buying the property, Broker Greg is required to ____

All of the above.

This is an example of full disclosure. All of these conditions need to be met in order for the broker to correctly exercise their option to purchase the property.

When a broker has a nonexclusive listing, to be legally entitled to a commission, they need to be able to prove they ____

they were the procuring cause of the sale.

To collect a commission, the broker needs to locate a buyer who is ready, willing and able to buy, and they must prove they were the procuring cause of the sale.

Which of the following is an acceptable termination date for an enforceable exclusive listing of residential real property?

180 days after the listing agreement is signed.

An exclusive listing requires a specific termination date. This is generally based on the date the listing contract is signed.

When an existing contract is replaced by an entirely new contract, it is an example of ____

novation.

This question illustrates the need to be familiar with real estate terminology. Under a novation, there is a substitution or exchange of a new obligation or contract for an old one by the mutual agreement of the parties. Refer to the Real estate glossary at the back of this book for definitions to critical real estate terms you are likely to encounter on the state exam.

The typical listing contract authorizes a broker to ____