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1.
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In Montana, dower and courtesy are:
a. | currently recognized. | c. | recognized but not enforced | b. | recognized
voluntarily | d. | not
recognized |
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2.
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If a broker establishes an account to hold money belonging to others, which of
the following is correct?
a. | All checks, deposit slips, and bank statements must include the word “Trust
Account” as part of the account name. | c. | The account cannot be in the same
bank as the Broker’s personal checking account. | b. | Accounts may be labeled “Escrow
Account.” | d. | An
individual account is required for each transaction. |
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3.
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A licensed broker procures a ready, willing, and able buyer for his or her
seller-principal. The seller first accepts the buyer’s offer in writing, then experiences
a change of heart and withdraws the original acceptance. In this situation, the broker:
a. | is entitled to collect a commission from the seller. | c. | may sue the
buyer | b. | is out of luck because the transaction was never completed. | d. | may retain the deposit as
commission. |
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4.
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What is the minimum balance of the Montana Real Estate Recovery Account?
a. | $400,000 | c. | $750,000 | b. | $600,000 | d. | $100,000 |
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5.
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A broker manages three properties for the same owner. One property is in
need of emergency repairs, but there is not enough money in the management account to cover the
cost. The broker borrows money from the escrow account of one of the other properties to make
the repairs. Which of the following is true?
a. | The broker has acted properly by safeguarding the client’s
interests. | c. | The broker is in violation of regulations for improperly handling escrow
funds | b. | Such action is allowed when the same person owns all of the properties.
| d. | The broker must use
professional funds for repairs if there is not enough money in the management account.
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6.
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A real estate company has entered into agency agreements with both a seller and
a buyer in which the seller has agreed to pay commission to the real estate company upon the sale of
the property. Can this occur?
a. | No, the real estate company would be a dual agent. | c. | Yes, if the seller has agreed to
pay the commission. | b. | Yes, as long as written agency agreements have
been entered into by both parties. | d. | Yes, if both buyer and seller give their consent to dual
agency. |
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7.
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All funds received by a broker on behalf of his or her principal must be
deposited in an escrow or trust account within
a. | three days of receiving the offer. | c. | five working days of receiving the
offer. | b. | three business days from the time the
principals sign the contract or whenever the buy-sell agreement dictates. | d. | five banking days of receiving all
signatures. |
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8.
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A real estate salesperson has been working with buyers who have signed a buyer
agency agreement. After helping them negotiate for their dream home, the buyers ask the salesperson
if she can help them secure a mortgage. The salesperson knows a lender that pays a fee for
referring purchasers to them. Should the salesperson refer the buyers to this lender?
a. | No, this would be an unwise referral. | c. | Yes, as long as the salesperson
discloses the referral fee to the sellers. | b. | Yes, as long as the salesperson and the buyers
have previously entered into a written buyer agency agreement. | d. | Yes, as long as the lender offers the best
interest rates and terms available in the market. |
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9.
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Whenever the Montana Board of Realty Regulation is required to satisfy a claim
against a licensee with the money from the real estate recovery account, the licensee
a. | may continue engaging in real estate activities under the Montana Board of Realty
Regulation’s direct supervision | c. | may be forced to sell any newly
acquired property for additional damages to the claimant. | b. | must repay the full
amount plus interest to the account if his or her license is to be reinstated | d. | Must thereafter pay $25 per year into the
account when applying to renew his or her license. |
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10.
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A buyer contacts a real estate office and indicates an interest in purchasing a
home in the area. Without entering into a buyer agency relationship with the buyer, a
salesperson from the real estate office can do all of the following EXCEPT
a. | provide the buyer with information on properties for sale in the
area. | c. | prequalify the buyer for a mortgage. | b. | give the buyer
information on mortgage interest rates and terms. | d. | explain to the buyer about buyer agency, seller
agency, and dual agency. |
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11.
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Upon obtaining a listing, a broker or licensed salesperson is obligated
to
a. | set up a listing file and issue it a number in compliance with Montana Real Estate
License Law and Rules | c. | cooperate with every real estate office wishing to participate in
the marketing of the listed property. | b. | place advertisements
in the local newspapers. | d. | give the seller signing the listing a legible, signed, true, and correct
copy. |
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12.
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Listings based on a “net price” are
a. | more profitable because no minimum is set on the amount of commission
collectible. | c. | illegal in Montana anytime. | b. | legal in Montana as
long as the seller agrees. | d. | permissible with the approval of the Montana Board of Realty Regulation.
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13.
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The maximum compensation that will be paid from the real estate recovery account
for any single agent is
a. | $5,000 | c. | $25,000 | b. | $10,000 | d. | $550,000 |
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14.
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A buyer prospect is interested in seeing a house listed with a real estate
company but does not wish to enter into a buyer broker agreement. A salesperson from the real
estate company shows the buyer an in-house listing and the buyer wishes to make an offer. What
should the salesperson do?
a. | The salesperson should obtain the seller’s permission before beginning
negotiations. | c. | The salesperson must provide the buyer with a Relationships In Real Estate
Transactions disclosure that state that the real estate company represents the seller prior to
negotiations. | b. | The salesperson should get the buyer to verbally agree to buyer
agency. | d. | The salesperson
should provide the buyer with a dual agency consent form. |
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15.
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What is the purpose of the Montana Real Estate Recovery Account?
a. | To ensure that real that licensees have adequate funds available to pay their
licensing and continuing education fees. | c. | To protect the Montana Board of
Realty from claims by individuals that they have suffered a monetary loss as the result of the action
of a licensee in violating the license law or committing other illegal acts related to a real estate
transaction. | b. | To provide a means of compensation for actual monetary losses suffered by individuals
as a result of the acts of a licensee in violating the license law for committing other illegal acts
related to a real estate transaction. | d. | To provide an interest-generating source of revenue to fund the activities of the
Board of Realty Regulation. |
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16.
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A housing discrimination charge must be filed with the Montana Commission of
Human Rights within
a. | 180 days | c. | 2 years | b. | 1 year | d. | 30 days |
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17.
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Which of the following will not expose a licensee to suspension of his or her
real estate license by the Board of Realty Regulation?
a. | Not disclosing agency relationships | c. | A misdemeanor
conviction | b. | Failing to exercise due care in the performance of duties | d. | Not abiding by your principal’s legal
instruction |
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18.
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All of the following provisions are included in the Montana Board of Realty
Regulation’s rules regarding listing agreements EXCEPT that
a. | a listing agreement must state the exact fee the broker will earn. | c. | listing agreement
must be in writing and signed by both the broker and seller. | b. | a listing agreement
must be accompanied by a qualified expert’s report of the property’s
condition. | d. | the seller must
receive a true copy of the listing agreement after signing it. |
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19.
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When advertising real property, real estate licensees
a. | may state the licensee’s box number or street address in the ad with the other
required information. | c. | must indicate that the ads were placed in the name of a licensed
real estate broker. | b. | may give a telephone number to call for more
information. | d. | most identify
the owner of the property. |
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20.
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Six months after the buyer bought a house, the roof leaked during a
rainstorm. When the house was listed, the seller told the broker that the roof leaked, but they
agreed not to tell any prospective buyers. The broker claims that the buyer did not ask about
the roof. Under these facts the buyer
a. | can sue the broker in civil court for nondisclosure since the broker is required by
license law to furnish all pertinent information concerning the property. | c. | can sue the seller
in district court only. | b. | cannot sue the broker under the license
law. | d. | cannot do anything
because the leaking roof could have been discovered by inspection. |
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21.
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What forms of agency are recognized in Montana?
a. | Seller agency, buyer agency, dual agency and statutory agency. | c. | In-house buyer
agent designate and in-house seller agent designate. | b. | Buyer subagency and seller
subagency. | d. | All of the
above |
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22.
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What are the procedures that a salesperson must follow when the salesperson
decides to terminate his or her affiliation with the employing broker?
a. | Give the broker an official letter of termination that he or she can send to the
Montana Board of Realty Regulation. | c. | Return all customer cards to the employing
broker. | b. | Notify the Montana Board of Realty Regulation promptly in writing of the
change. | d. | Return his or her
license, along with a letter of termination, to the Montana Board of Realty
Regulation. |
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23.
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A licensed salesperson obtains a listing. Several days later, the
salesperson meets prospective buyers at the property and tells, them, “I am the listing agent
for this property, and so I’m very familiar with it.” Under these circumstances,
the salesperson
a. | may be guilty of failing to properly disclose his or her agency
relationship. | c. | has properly disclosed his or her agency relationship with the
buyer. | b. | has properly disclosed his or her agency relationship with the
seller. | d. | as created an
undisclosed dual agency relationship, which is legal in Montana. |
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24.
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Regarding trust accounts, all of the following are true except
a. | a principal broker may have more than one trust account. | c. | brokers have 5 days
to remove funds from a trust account after a real estate transaction is terminated or
completed. | b. | salespersons do not have access to trust accounts. | d. | trust funds cannot be co-mingled with personal
funds. |
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25.
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The real estate recovery account has all of the following attributes
EXCEPT
a. | allowing for payments of attorney fees. | c. | a minimum of $100,000 in the
account at all times | b. | a limit of $25,000 to any one
licensee. | d. | requiring that
claimants must apply within one year after obtaining an unfulfilled
judgment. |
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26.
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In a dual agency situation, a broker may collect a commission from both the
seller and the buyer if
a. | the broker holds a state license. | c. | both parties give their informed
consent to the dual agency and dual compensation. | b. | the buyer and the seller are related by blood
or marriage. | d. | both parties
are represented by attorneys. |
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27.
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In regard to water rights, Montana is
a. | a prior appropriation state. | c. | a reasonable use
state. | b. | a riparian water state. | d. | an appropriation state for streams and rivers and a reasonable use state for
wells. |
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28.
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A Montana real estate salesperson may lawfully collect compensation from
a. | either a buyer or a seller. | c. | any party to the transaction or the
party’s representative. | b. | her or his employing broker
only. | d. | a licensed real
estate broker only. |
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29.
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In Montana, what is the statutory usury ceiling on loans secured by real
estate?
a. | 10 percent, or 10 percentage points per annum above the prime rate | c. | 22
percent | b. | 15 percent, or 6 percentage points per annum above the prime rate | d. | There is none |
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30.
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A licensed salesperson may hold a concurrent license with more than one Montana
broker under which of the following circumstances?
a. | Under no circumstances | c. | With the written consent of the brokers being
represented | b. | With the permission of his or her sales manager | d. | With the permission of the Montana Board of
Realty Regulation |
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31.
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Every Montana real estate office is required to
a. | maintain escrow account records for five years. | c. | display signage at the office
location. | b. | keep transaction records for five years. | d. | employ at least one
salesperson. |
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32.
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The Montana Board of Realty of Realty Regulation has the power to revoke a
salesperson’s license if the salesperson
a. | works to list and sell real estate by finding buyers and sellers who will enter into
a buyer or seller agent relationships with the employing broker. | c. | finds a property owner who will
enter into an exclusive listing contract with the employing broker. | b. | attempts to commence
negotiations as a buyer agent with a buyer broker agreement. | d. | deposits a buyer’s down payment in the
salesperson’s own bank account. |
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33.
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The purpose of the homestead is to
a. | protect spouses against disinheritance. | c. | protect a person’s equity in
his or her home from unsecured lenders. | b. | ensure the payment of taxes, claims, and
liens. | d. | permit a surviving
spouse to retain the home. |
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34.
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When a licensee has been found guilty in a complaint filed with the Board of
Realty Regulation, the board may do all of the following EXCEPT
a. | sentence the licensee to jail time if the charge is serious enough after a special
hearing. | c. | suspend or revoke the licensee’s license. | b. | fine the
licensee. | d. | both fine and
either suspend or revoke a licensee’s license. |
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35.
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When a sole proprietor has his or her license suspended for two years, what
effect does this have on the associate brokers and salespeople affiliated with the proprietor?
a. | the Affiliates’ licenses will be revoked, subject to reinstatement after one
year | c. | the Suspension has no effect on the affiliates | b. | the
Affiliates’ licenses will also be suspended for a two-year period | d. | the Affiliates’ licenses must be returned
to the Montana Board of Realty Regulation |
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