State Exam

Question 1

Out of state resident taxes

Answer 1

2% or net proceeds, whichever is less

Question 2

Returning security deposits

Answer 2

30 days

Question 3

Open Listing Agreement

Answer 3

Brokers sign contract with seller
any broker can bring a buyer
buyers broker earns commission

Question 4

tax payment deadlines

Answer 4

one payment: April 30
two payments: Feb 28 and June 15
Late payments: interest begins on May 1

Question 5

statutory duties

Answer 5

uniform duties

Question 6

condemnation

Answer 6

contract is voidable

Question 7

Notice of Election and Demand for forclosure

Answer 7

sale can be held for non agricultural prop:
110-125 days
ag prop:
215-230 days

Question 8

Foreclosure sales contract cancellation date

Answer 8

noon on the day before foreclosure

Question 9

Trade name used

Answer 9

Independently owned and operated

Question 10

Address on a contract

Answer 10

both legal description and street address should be on there

Question 11

Dates and deadlines on form

Answer 11

can be omitted

Question 12

Estoppel statements receipt

Answer 12

by deadline specified in section 3

Question 13

referral fees to unlicensed individuals

Answer 13

yes as long as individuals are party to the transaction

Question 14

well info disclosure

Answer 14

permits for well and septic

Question 15

who holds the title until the loan is paid in full

Answer 15

Trustee
trustee is name as party holding title until loan is paid in full

Question 16

current years taxes recorded

Answer 16

Debit seller/credit buyer-
-property taxes are paid in arrears
buyer will pay at end of year

Question 17

What is prorated

Answer 17

taxes,fuel, HOA

Question 18

success fee

Answer 18

half up front/half at possession

Question 19

dual agency in same firm

Answer 19

two agents from same firm can be designated to same transaction/different clients

Question 20

what is prepared before closing

Answer 20

closing settlement sheets

Question 21

what does an agent need for closing

Answer 21

tax certificate

Question 22

single transaction agent vs tenant’s agent

Answer 22

tenants agent with Exclusive Tenant Listing Contract

Question 23

brokers who supervise other brokers

Answer 23

employing brokers

Question 24

counterproposal

Answer 24

modifies the terms of the original CBS and creates a new contract

Question 25

conveying fixtures in a land contract

Answer 25

Inclusions

Question 26

doc prep in closing

Question 27

who pays tax certificate

Answer 27

tax cert is obtained by closing agent from country treasurers and buyer pays for it

Question 28

separation of duties

Answer 28

agent is delegating

Question 29

Complaint filed against agent

Answer 29

client has to wait 10-12 days to hear back from commission to see if they'll investigate complaint

Question 30

What is recorded when trust account disbursement is made

Answer 30

Check number

Question 31

Property Management security deposits and rental payments

Answer 31

Separate trust accounts: -Security deposits -rental payments -Sales trust funds

Question 32

Agency relationship

Answer 32

between agent and principles

Question 33

Office policy manual

Answer 33

Process for designating broker working with parties to a transaction: Procedure for designating broker who will work with seller, landlord, buyer or tenant

Question 34

Dual status

Answer 34

broker and mortgage broker

Question 35

Holds legal title to the property until loan is paid in full

Answer 35

Public trustee

Question 36

trust account disbursement

Answer 36

check # is recorded in ledger name of payee purpose of disbursement amount

Question 37

One person firm agency

Answer 37

single agent

Question 37

How is broker's commission documented

Answer 37

In Compensation to brokerage firm section: 7 is entered documenting percent of the rent that will serve as commission

Question 38

Well for a 15 acre vegetable farm

Answer 38

Irrigation well always used for farmland

Question 39

Can seller list at a lower price than agent?

Answer 39

Yes