As a preparation for the Managing Broker Simulation Exam, our 50-page Managing Broker's Simulation Exam manual is included. This 50-page manual is a detailed analysis of the Simulation Exam and includes 5 practice simulation questions. The manual breaks the exam into 3 parts:

1. Describes the Story and Scenario problems or situations you are facing.

2. Gathers all the necessary Facts or Information needed or not needed.

3. Determines which Best Option face or Actions-Decisions should or should not be taken.

To pass the national portion of your exam, you should also use our textbook: Guide to Passing the AMP Real Estate Broker Simulation Exam by Joyce Bea Sterling. This book includes a BONUS! CD-ROM with an Actual Simulation Exam and can be checked out from our library after completing the three required courses. This is a huge advantage to you in assuring your success in passing the exam the first time. Our instructor will walk you through the books and save you time by telling you exactly what to study. Passing the exam then becomes easy. Your success is our success. We provide you the extra material you need.

Which of the following statements is true regarding commissions?

The Sherman Anti-Trust Act prohibits price fixing and this includes the fixing of commission rates.

The brokerage must charge the same commission rate to every seller.

The commission that can be charged in a real estate transaction is determined by the Real Estate Commission.

A buyer's agent cannot charge the buyers a commission.

Correct answer is A. The Sherman Anti-Trust Act prohibits price fixing, group boycotting, the allocation of customers or markets or tie-in agreements.

Which of the following is NOT an essential element of a contract?

Time is of the essence

Consideration

Competent parties

Offer and acceptance

Correct answer is A. Time is of the essence is not an essential element of a contract.

Time is of the essence means

everything must be performed within the time frame specified.

the buyer has three days to rescind the contract after closing.

contingencies in the contract do not have to be met until after closing.

the agent will be paid as soon as the seller accepts the offer.

Correct answer is A. Time is of the essence means everything must be performed within the time frame specified.

A contract must be entered into freely, without duress, threats, blackmail or fraud. The term that best describes this is

legality of purpose.

proper legal form.

reality of consent.

offer and acceptance.

Correct answer is C. Reality of consent means a contract must be entered into freely, without duress, threats, blackmail or fraud.

Which of the following is an example of an executory, bilateral contract?

Lease

Sales contract

Exclusive-right-to-sell listing

All of the above

Correct answer is D. An executory contract is one where duties are to be performed. A bilateral contract means both parties have duties to perform. A lease, sales contract or exclusive-right-to-sell listing are executory, bilateral contracts.

Which of the following is FALSE regarding option contracts?

The seller is known as the optionor; the buyer is known as the optionee.

An option contract is a bilateral contract, but once it has been exercised it is a unilateral contract.

The option money is normally not a part of the purchase price.

An option contract must contain the names of the parties; the location of the property; terms of the sale; expiration of the option; method of notification if the option is exercised; and provisions for the option money if the option is not exercised

Correct answer is B. An option is a unilateral contract, while an option that has been exercised is a bilateral contract.

XYZ Realty listed a property and ABC Realty had a buyer who made an offer. In the counteroffer, the seller would be the

offeror.

offeree.

assignor.

assignee.

Correct answer is A. In this counteroffer the seller would be the offeror.

Specific performance means

there is a specific act which must be performed to complete a contract.

an order from a court requiring the completion of a contract.

an order from a court requiring a seller to accept an offer.

a specific act which must be performed to create a contract.

Correct answer is B. Specific performance is court action to force the completion of a contract.

Which of the following statements about contract clauses is false?

A contingency clause in a contract will allow one or more parties to walk away from the contract if the contingency cannot be met.

A liquidated damage clause in a contract means that compensation will be paid if one party breaches the contract.

An exculpatory clause is a hold harmless clause.

An indemnification is an agreement to compensate someone for a gain.

Correct answer is D. An indemnification is an agreement to compensate someone for a loss, not a gain.

What is the major difference between assignment and novation?

An assignment is the transfer of a right, title or interest in a contract, while a novation is the substitution of one contract for another and when given releases liability.

An assignment is the substitution of one contract for another and when given releases liability, while novation is the transfer of a right, title, or interest in a contract.

An assignment is used in listings, while novation can only be granted by a lender.

An assignment is used by lenders, while novation is only granted in listings.

Correct answer is A. An assignment is the transfer of a right, title or interest in a contract, while a novation is the substitution of one contract for another and when given releases liability.

National Managing Broker Exam Prep

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