A seller told the listing agent about a recent recurring leak around the master bathroom toilet. The agent saw no signs of moisture around the toilet and made no further inquiry concerning the matter. No mention of the leak was made on the property disclosure form. When personally showing the house at a later date, the listing agent was asked by a prospective buyer-customer if there were any problems with the property. The listing agent responded that there were no known problems. The prospective buyer decided to buy the property through the listing agent but did not have the property inspected prior to closing. Shortly after moving into the house, the new owner discovered that the wooden subfloor around the master bathroom toilet was rotten due to water damage. Given these circumstances, the listing agent was Select one: a. not guilty of misrepresentation because the problem with the subfloor was a hidden defect. b. not guilty of misrepresentation because the buyer chose not to have the property inspected prior to closing. c. guilty of negligent misrepresentation because the agent did not know that such a leak could cause significant damage. d. guilty of willful misrepresentation because he told the buyer there were no known problems when he had been made aware of the leak.

The Americans with Disabilities Act requires

a.

accessibility compliance in places of public accommodation.

b.

accessibility compliance in all multi-family residences.

c.

new single-family homes to have a first floor bathroom and at least one entry without steps.

d.

all multiple story commercial buildings to have an operational elevator.

Question 13

A prospective buyer asks the listing agent during an open house if there are any drainage issues with the low-lying area in the back yard. The agent states that there are no drainage issues. If the broker knows that the backyard floods every time there is a big rain, the listing agent may be guilty of

Select one:

a.

Negligent Omission

b.

Willful Omission

c.

Willful Misrepresentation

d.

Negligent Misrepresentation

Three bedrooms, 2 baths ranch-style house in the same subdivision

Question 19

A properly completed option to purchase real estate contract must include

Select one

a.

an addendum that extends the listing agreement through the option period.

b.

the specific terms of sale that will apply if the option holder exercises the option to purchase.

c.

the right for the property owner to sell his property to the highest bidder within the option period.

d.

the ability for the prospective buyer to match any offer to purchase the property that the seller receives during the option period.

A loan in the amount of $187,500 at 4% for 30 years closes on September 19. The first monthly payment is due on November 1. Using a 30 day month/360 day year, what is the amount of interim interest that the borrower has to pay at settlement?

Select one:

a.

Amount of $445.31

b.

Amount of $281.25

c.

Amount of $686.80

d.

Amount of $843.75