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Updated: Jul 05, 2026
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1. While inspecting a tenant-occupied property, the buyer was told by the seller that the microwave oven would be included in the sale price. Upon possession, the buyer learned that the microwave oven belonged to the tenant and not the seller. Is the buyer entitled to the microwave oven?
A) No, because the seller did not have the right to include the microwave in the sale.
B) Yes, because the buyer's offer to purchase included all real property.
C) No, because the microwave was the real property of the tenant.
D) Yes, because all oral contracts for the sale of real property are enforceable.
2. A building was purchased for $350,000 with a 20% down payment. If the lender charged the buyer three discount points, how much will the buyer need to close?
A) $360,500
B) $61,600
C) $80,500
D) $78,400
3. The commission rate included in a listing contract is determined by
A) negotiation.
B) state statute.
C) national trade organizations.
D) local custom.
4. Prospective buyers for a house want to operate a recycling center in their backyard. Local zoning laws do not allow this. What do they need to do first?
A) Obtain a variance or special exception.
B) Obtain a modification to the local master plan.
C) File an appeal with the local court.
D) Obtain a building permit.
5. A couple enters into a purchase contract to buy a house, and their parents are providing a $5,000 earnest money check. The check is deposited in the listing broker's escrow account. The buyers are unable to get financing, and the contract provides for return of the earnest money to the buyers. The buyers and seller agree in writing to the release of the earnest money. The listing broker should
A) issue a $5,000 check to the buyers.
B) issue a $5,000 check to the parents.
C) return the earnest money check, minus expenses, to the buyers.
D) return the earnest money check, minus expenses, to the parents.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: A |
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