Thread: Studying for exam - HELP!

Originally Posted by erikaaf14

I've been studying to take my exam and have come across a few questions/issues and cannot find an answer. Any help is appreciated!

Forgive me, but are you using a book as you study? If not, what means are you using to study for this exam? The answers can be found in any basic real estate text book.

1. Who else advises and monitors a salesperson besides a broker?

Are you located in the US? Each state has a Real Estate Commission. In Maryland, a large portion of the salesperson exam is based on the state laws and regulations for real estate sales. If your state does the same and you don't have a book or some material on your state's regs to study, it's going to be a tough exam.

2. If a salesperson has active listings and transfers to a new company, what happens to those listings? Transfer with her? Stay with the broker? Stay with the company?

Check the chapter on listing contracts. It says "The listing contract is between the broker and the client (seller)."

3. Say a person signed a 3 year lease. The owner owns the apartment complex and hired a property management company to run it. The owner dies and his heirs sell the complex. What happens to the person and their lease? Can he stay at the complex until his lease ends? Can he sue? Does he have to leave?

"If leased real estate is sold..., the new landlord takes the property subject to the rights of the tenants. A lease agreement may, however, contain language that permits a new landlord to terminate existing leases." Page 298, Modern Real Estate Practice 17 ed.

4. Say you have a total of $560,000 at 6% interest rate. You must put 3 months interest into an escrow account. What is the amount you need to put in?

560000 x 0.06 = 33600 annual interest divided by 12 = 2800 x 3 months = 8400

5. If the seller wants to sell their property as fast as possible, can the broker disclose this in their listings and to potential buyers?

This comes under the "obedience" part of the contractual relationship; if the seller wants it known, the agent is free to say it. If not, no.

6. Sellers tell their broker to list their house to sell for $80,000. However, market value says housings like theirs are selling for 120,000. The sellers want to sell their property fast. Should the broker tell them that properties are selling for 120,000 or do what they say and try to sell their property fast at 80,000?

This question is poorly worded, the two actions are not mutually exclusive. That is, the agent should prepare a competitive market analysis and suggest a price based on recent sales of similar properties as a part of every listing discussion. On the other hand, "obedience" mandates doing what the seller wants as long as it's not illegal or unethical. So as far as I'm concerned, the agent would do both.

7. When doing a self-inspection of a property, broker finds some problems with the house. He discloses this to the potential buyer and they go and tell the seller. The seller says he knows of no such problems. The buyer purchases the home and a few months later, he comes across the problems. He goes to court and wins and is returned all the money from the sale. Does anything happen to the broker? Does he still get to keep his commission?

The broker's potential liability is not losing the commission on a sale that has already happened, it's being sued for failing to disclose material defects in the property. The outcome might depend on whether the broker can prove that the buyers were informed of these problems before the sale. If, in fact, a court has already awarded the purchase price back to the buyer, that suggests the seller's attorney could not prove the buyers had received the information.

I highly recommend Modern Real Estate Practice by Galaty, Allaway, and Kyle as a text.

Awesome! Thanks to dognponyshow for giving specific answers to the questions. I didn't know all. Now it's clear. It helped others too and well appreciated.