PSI NATIONAL REAL ESTATE EXAM 2024 ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS WITH RATIONAL, Exams of Nursing

Download PSI NATIONAL REAL ESTATE EXAM 2024 ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS WITH RATIONAL and more Exams Nursing in PDF only on Docsity! PSI NATIONAL REAL ESTATE EXAM 2024 ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS WITH RATIONALE ALREADY GRADED A+ Li Meng purchased a property that had been owned by the same man for more than 40 years. The title search was clean. In the spring, she started seeing traffic on the path to her dock and discovered that the previous owner had always allowed the locals to use his path to get to the lake. What covenant may have been breached - CORRECT ANSWER >>Against Encumbrances In an amortized loan, the interest portion of the mortgage payment generally ______ over the life of the loan. - CORRECT ANSWER >>Decreases Which act created an agency to investigate antitrust practices? - CORRECT ANSWER >>Federal Trade Commission Act Which real property ownership right protects the owner from harassment or interference? - CORRECT ANSWER >>Enjoyment What's usury? - CORRECT ANSWER >>When a loan's interest rate is higher than the maximum allowable rate Centennial Development is constructing a new condo. The exterior of the building is 60 feet square. Which of these about the air lot is true? - CORRECT ANSWER >>The air lot is the same perimeter as the condo and the lot on which it's built. Steven owns 114 acres of wooded, rural land. The abundance of wildlife on his property means that his friends are always asking for permission to hunt on it during various game seasons. If Steven gives a friend permission to hunt on his land, it can be said that he has given his friend a ______. - CORRECT ANSWER >>License Property ownership gives the title holder a bundle of rights. What's significant about the concept of a bundle of rights? - CORRECT ANSWER >>It describes the ability to separate one right from the others while leaving the rest of the bundle intact. _______ is an increase in property value caused by the joining of two neighboring parcels of land. - CORRECT ANSWER >>Plottage In the first month, Juan pays $1,044.79 in interest ([$295,000 x .0425] ÷ 12). His monthly payment (stated in the question) is $1,750, so that means he paid the principal down $705.21 ($1,750 - $1,044.79). His new principal balance is $294,294.79 ($295,000 - $705.21). We use the new principal balance amount to calculate interest for the next month. Juan pays $1,042.29 in interest ([$294,294.79 x .0425] ÷ 12). - CORRECT ANSWER >>$1,042.29 Talking the consumer into refinancing over and over so a lender can charge fees is ______. - CORRECT ANSWER >>Loan Flipping If individuals want to use their property in a way that's not permitted by a zoning ordinance, they must submit a request for a variance or special use permit to which one of the following groups? - CORRECT ANSWER >>Zoning Board of Appeals Which economic principle says that a property's value is determined by what it would cost to purchase a similar property? - CORRECT ANSWER >>Substitution To make valid computations of adjustments for the sales comparison approach to value, elements of comparison must be applied in a specific order. Which one of these elements listed is applied last? - CORRECT ANSWER >>Physical characteristics According to the rule of thumb, how can a borrower lower the interest rate on a loan by 1%? - CORRECT ANSWER >>By paying four points up front Lenore makes a 95% offer on a townhouse that's listed at $285,000 and includes an earnest money deposit for 10% of her offer, which the seller accepts. She brings to closing a cashier's check for $35,025 comprising the balance of her 20% down payment and closing costs. What's the amount of her total down payment? Lenore's offer is $270,750 which is 95% of the list price ($285,000 x .95 = $270,750 ). Her total down payment is 20% of her accepted offer of $270,750, which is $54,150 (or $270,750 x .2). - CORRECT ANSWER >>$54,150 What factors directly affect an adjustable rate mortgage? - CORRECT ANSWER >>Rate, index, and margin Aidan accepted a contract for the sale of his home. The home inspection report reveals that certain aspects of the house don't meet the current building code. What's the most likely result? - CORRECT ANSWER >>The house is probably not required to meet the current code. Olivia took out a 15-year loan secured with a deed of trust. She worked two jobs in order to pay the loan back and finally made her last payment this month. What happens now? - CORRECT ANSWER >>The lender tells the trustee to release the title to Olivia. Which economic principle pertains to how a change in a property affects its value as a whole? - CORRECT ANSWER >>Contribution Which of the following can be defined as what a property is worth? - CORRECT ANSWER >>Value Private mortgage insurance protects the lender in case the borrower ______. - CORRECT ANSWER >>Defaults on the loan Many market conditions impact housing prices. Which of the following is a true statement? - CORRECT ANSWER >>Reduced consumer confidence makes new buyers wary of purchasing and homeowners hesitant to trade up. Warren signed a contract with the Samsons for the sale of property he didn't own. What type of contract is this? - CORRECT ANSWER >>Void Which type of antitrust violation occurs when the providing of one service is made dependent on the customer or client obtaining another recommended service? - CORRECT ANSWER >>Tie-in arrangement An agent is trying to drum up business for a friend's mortgage company. She offers to charge a lower commission rate to clients who use her friend's mortgage company for their financing. What's this an example of? - CORRECT ANSWER >>Tie-in arrangement The Housing and Community Development Act of 1974 added which protected class to federal fair housing law? - CORRECT ANSWER >>Sex Who is responsible for ensuring accessibility requirements for a commercial property are met? - CORRECT ANSWER >>Property owners and property managers Which of the following is most likely to establish workmanship standards when someone is building an addition to their property? - CORRECT ANSWER >>Building code Which of these tasks must a licensee perform for buyer clients? - CORRECT ANSWER >>Ensure that the buyer receives copies of all signed paperwork. What's a good policy that a buyer's agent should employ regarding contingencies? - CORRECT ANSWER >>Use contingencies judiciously to protect the clients and the deal. Which clause in a contract states that one or more parties won't be held liable if there are losses or expenses related to the contract? - CORRECT ANSWER >>Indemnification clause Which of the following clauses directs the parties to a real estate sales contract to proceed in good faith, and not unduly delay the process? - CORRECT ANSWER >>Time is of the essence clause What does the FTC consider to be a deceptive ad? - CORRECT ANSWER >>Any ad likely to mislead consumers acting reasonably under the circumstances A brokerage firm that hires licensees as employees instead of as independent contractors must ______. - CORRECT ANSWER >>Pay licensees a regular salary regardless of the revenue they generate Which of these is an example of agency coupled with interest? - CORRECT ANSWER >>An agent foregoes buyer agent commission, provided the purchasing developer gives the agent the listings on the developed lots. You're explaining to your client that using electronic documents and signatures simplifies the home buying process. Your client is skeptical about these signatures. You describe the Uniform Elizabeth is financing a new home. She submitted her loan application on Monday, August 3. She's set to close on Thursday, September 21. By what date must her lender provide the Closing Disclosure? Lenders must provide the Closing Disclosure three days before closing - CORRECT ANSWER >>September 18 How can property managers use rent rolls? - CORRECT ANSWER >>The property manager can use information about the type of unit and current rent or lease amount to help set future rent or lease rates. When Stacy's clients ask her if she can recommend a mortgage broker, she promptly gives them the name of the best mortgage broker she knows, Gary Jones. Later, she always receives a check from Gary as payment for the referral. Is this legal or illegal under the Real Estate Settlement Procedures Act? - CORRECT ANSWER >>This is illegal under RESPA because it's considered a kickback between settlement service providers. Larry is assisting a buyer who's making an offer on his client's listing. If Larry is too helpful to the buyer, what might occur? - CORRECT ANSWER >>Implied agency and undisclosed dual agency Townships in a section are numbered beginning in the upper right (NE) corner and continue in a zigzag pattern. Picture a drawing of a section of land. Where is Township 16 located? - CORRECT ANSWER >>Third row, third from left Commander Halfback retires after 25 years of service in the Coast Guard. He is looking to buy a home. What type of loan should he use? - CORRECT ANSWER >>FHA, VA, or conventional Antje's clients closed on their property yesterday, but Antje still has some paperwork that she needs to deliver to them as soon as possible. Under which fiduciary duty is Antje acting? - CORRECT ANSWER >>The duty of accounting Buyer Maria and seller Doug are closing on June 1. Maria's mortgage loan is $927.86, and $871.86 will go to interest in the first month. Maria will have to pre-pay interest for June using the 360-day proration method. If Doug owns the closing day, what Maria's prepaid interest cost be at closing? Calculate the daily interest rate for 30 days ($871.86 ÷ 30 = $29.06). Because Doug owns the closing day, Maria will pre-pay interest for 29 days, June 2 - 30, so $842.74 ($29.06 x 29). - CORRECT ANSWER >>$842.74 A living trust differs from a testamentary trust in that a living trust is established to convey property as well as to ______. - CORRECT ANSWER >>Transfer ownership before death and avoid probate In which of these situations is Ronna's fiduciary duty of reasonable skill and care at odds with her duty of obedience? - CORRECT ANSWER >>Jefferson insists that Ronna interpret the implications of him breaching his contract with a buyer. The parcel of land Monty just bought is 43,891 square feet. Approximately how many acres does Monty have? In completing a CMA, finding a comparable (competitive) property that had a quick sale may indicate which of the following? - CORRECT ANSWER >>The market for similar homes is good. Christy found a property that was For Sale by Owner and made an offer. The seller accepted Christy's offer, but neither of them knew how to proceed. Licensee Zelda helped Christy complete the necessary purchase documents and walked her through the process. What kind of agency exists? - CORRECT ANSWER >>Implied agency Marvin knows that three-bedroom properties with two bathrooms sell quickest in his market. In an ad for a new listing, he wrote, "Bonus room could easily be a third bedroom." Marla and Tom visit the property with their agent, and Tom, a construction supervisor, notes that the bonus room couldn't be easily converted to a bedroom because it's too small, it has no egress and no heat source, and it can only be accessed by walking through a bathroom. Is Marvin guilty of misrepresentation? - CORRECT ANSWER >>Yes, because he should have known there would be major issues converting that room to a bedroom. Phoebe's gross monthly income is $4,200, and she has $360 in monthly non-housing debt payments. The lender's qualifying ratios are 28% for the housing ratio and 36% for the total DTI ratio. What's the maximum housing payment she can afford? The maximum house payment is the lesser of the amounts calculated using both ratios. DTI: $4,200 x .36 = $1,512. $1,512 - $360 = $1,152. Housing ratio: $4,200 x .28 = $1,176. Phoebe's maximum payment is $1,152. - CORRECT ANSWER >>$1,152 Which of the following is the most common type of buyer representation agreement? - CORRECT ANSWER >>Exclusive right-to-represent agreement Burt owns a development company that specializes in constructing new, energy-efficient houses. The best approach for an appraiser to use in the appraisal of Burt's newly built homes is the ______. - CORRECT ANSWER >>Cost Approach Damien and Sandy bought a lot with a condemned house. They want to tear it down and build a duplex, so that they can live on one side and rent out the other. Unfortunately, the property is zoned single-family residential. If they can make a case for economic hardship, they may apply for and be granted a ________. - CORRECT ANSWER >>Use Variance Margo's accountant tells her that she's eligible to deduct the property taxes she paid last year. Select the statement about this deduction that's true. - CORRECT ANSWER >>Margo is in the ownership stage of the property ownership lifecycle. Which of these is a TRUE statement regarding truth in advertising violation penalties? - CORRECT ANSWER >>The Federal Trade Commission determines the severity of the penalty based on the severity of the violation. Which of the following is true about net listings? - CORRECT ANSWER >>They often involve a conflict of interest. Aldrich is conveying marketable title to a property buyer. Should he also furnish a title insurance policy? Even though marketable title carries a higher standard of assurance than insurable title, unknown defects can occur. A remove them. - CORRECT ANSWER >>Conform to the deed restriction. What type of arrangement allows the buyer to retain title to the property but places a security interest in the property on behalf of the seller? - CORRECT ANSWER >>Purchase money mortgage Which task is NOT the responsibility of an escrow officer? - CORRECT ANSWER >>Determine how earnest money is to be distributed in case of a dispute. Why does the closing agent review the purchase contract? - CORRECT ANSWER >>To gather closing-related information agreed to in the contract A buyer is purchasing a property for $400,000. His loan-to-value ratio is 80%. The lender also charges a one-point loan origination fee. How much is the loan origination fee? An 80% LTV ratio means the buyer is financing 80% of the purchase price. Eighty percent of the purchase price is $320,000, and one point, or 1%, of this amount is $3,200. - CORRECT ANSWER >>$3,200 To make valid computations of adjustments for the market comparison approach to value, elements of comparison must be applied in a specific order. Which of these elements has the highest priority? The elements appraisers consider in the market comparison approach are applied in a specific order: financing terms and cash equivalency, conditions of sale, market conditions at the time of contract and closing, location, and physical characteristics. - CORRECT ANSWER >>Conditions of sale When purchasing a short sale or foreclosure, what's one of the biggest frustrations buyers face? The purchase of a distressed property can take at least twice as long as the purchase of a traditional property. - CORRECT ANSWER >>The length of time it takes to purchase a distressed property Which of the following is defined as what it would take to recreate that property if it disappeared off the face of the earth today? - CORRECT ANSWER >>Cost Which of the following is an example of price fixing? - CORRECT ANSWER >>Two brokerages determine a standard commission rate. Which of the following statements about escrow accounts is correct? Escrow accounts are most widely used in real estate to hold earnest money deposits. These accounts may be opened and managed by the brokerage firm, a title insurance representative who's serving as a closing officer, or an attorney. - CORRECT ANSWER >>Escrow accounts are managed by escrow agents, and are used to hold funds belonging to others, such as earnest money deposits. the purchase of Katrina's house. A dispute arises over some contract terms, and they end up in court. The court rules one of the terms invalid but leaves the remainder of the contract in force. Your 15-year-old son just signed a contract joining a health club, which costs $50 a month. Is this contract valid? While legal capacity includes whether or not all parties are of legal age, contracts signed by minors are valid but voidable by the minor. - CORRECT ANSWER >>Yes, the contract is valid. Which of the following best describes a net listing? A net listing means the seller is holding out for a specific price; the amount of commission to be paid to the listing agent depends on the price the seller receives. - CORRECT ANSWER >>The seller specifies a desired price for the property and agrees to pay the broker any amount received that's more than that price. Lance is a property manager who receives his management fees on a bi-monthly basis. He draws them from a trust account set up in the property owner's name. What gives him the authority to take these disbursements as his fee? The property manager may disburse funds from a trust account if the property management agreement states that the manager may do so. This is true for disbursements for commissions and fees as well as for other expenses. - CORRECT ANSWER >>The property management agreement What is an example of a gross lease? - CORRECT ANSWER >>The owner pays all property taxes, maintenance, and insurance costs. Marketo Building Designs is selling the air rights above its office building. The lot is 450 feet by 350 feet. How would you determine the air lot height in order to calculate the area? Because of safety and other concerns, municipalities typically establish the height of air lots in their jurisdictions. - CORRECT ANSWER >>The city or other governing authority establishes the air lot's height. Peter wants to set up a land trust so that his children can benefit from his real estate investments after he dies. He asked his financial advisor Tom to manage the trust, and Tom agreed. How is the trust created? - CORRECT ANSWER >>Peter conveys the real estate to Tom. As a residential property manager, Finn can independently make decisions regarding the day-to-day operations of the apartment building he manages. He can hire contractors, screen tenants, pay bills, and enforce lease provisions. What kind of agent is Finn? - CORRECT ANSWER >>General Which of the following features is most likely to be the cause of an adjustment to a comparable (competitive) when preparing a CMA? - CORRECT ANSWER >>Busy street A seller received $800,000 for a 5.5 acre rectangular parcel alongside a road frontage. The property is 400' deep. What was the price per front foot of the property? Why is a foreclosure more likely to have title issues than a non- foreclosure? - CORRECT ANSWER >>Borrowers who can't afford loan payments may have taken out other loans against the property. Which of the following is an acceptable ad based on Regulation Z? - CORRECT ANSWER >>Get a low interest rate of 4.75% (4.925% APR) with as little as 10% down payment and a 30-year fixed rate with no points. Adamsburg, a bedroom community outside the city, is growing by leaps and bounds. There's been a boom in the number of children under age 12. Mia wants to open an in-home daycare, but she lives in a neighborhood that isn't zoned for home occupations. She applied for a/n _________ and, after a public hearing, was granted one to operate the daycare. - CORRECT ANSWER >>Special use permit ______________________ also called a conditional use permit, requires a public hearing and may be granted as long as the use is in harmony with zoning ordinances and doesn't adversely affect the community. - CORRECT ANSWER >>A special use permit Stu's seller client, Gabi, wants to figure out how much equity she has in the home she's selling. Gabi paid $200,000 eight years ago and made several great renovations over the years. She still owes $125,000. Stu calculates that comparable home values in her area have risen about 15% since Gabi bought. Assuming Stu pulled appropriate comps, about how much equity does she have? Gabi's home value has risen $30,000 in the eight years since she bought it ($200,000 x .15). That brings her home's market value to $230,000. She owes $125,000, which brings her equity amount to $105,000. ($230,000 - $125,000). - CORRECT ANSWER >>$105,000 An abandoned or otherwise unused commercial or industrial site with suspected contaminants is known as what? - CORRECT ANSWER >>A brownfield Which of the following is true about tie-in arrangements? - CORRECT ANSWER >>They're an antitrust violation. Which statement most accurately describes the type of notice provided by recording a change of ownership document? - CORRECT ANSWER >>Recording the deed provides constructive notice of the property sale. A homeowner has converted two rooms in his home to a rental unit. What does the "Mrs. Murphy" exemption permit him to do? - CORRECT ANSWER >>Refuse to rent to a female tenant. The ______________ exemption applies to owner-occupied buildings with no more than four units. The owner may choose to rent only to a like-sex tenant but may not discriminate on any other basis. - CORRECT ANSWER >>"Mrs. Murphy" Casey signed a contract form offering a purchase price of $309,000 on a home, and gave his agent a $5,000 earnest money deposit. The owner is out of town and her agent can't reach her. At this point what does Casey have? - CORRECT ANSWER >>An offer Which physical characteristic of land addresses the concept that the geographic location of a piece of land is fixed and can never be changed? - CORRECT ANSWER >>Immobility Conventional loans often require 20% down to avoid PMI ($125,000), and Nico has paid a $50,000 deposit ($625,000 x .08). Closing costs are $31,250 ($625,000 x .05). He needs $106,250 to close ([$125,000 - $50,000] + $31,250). - CORRECT ANSWER >>$106,250 The economic principle of ______ says that when there are two houses in the same neighborhood with the same size, appeal, and utility, the lower-priced one will tend to sell first. - CORRECT ANSWER >>Substitution Which of these is an example of puffery? - CORRECT ANSWER >>Kevin's MLS remarks note that the condo has the city's "most beautiful twilight view of downtown and the bay." What are the two types of physical depreciation? - CORRECT ANSWER >>Curable and incurable To which of the following are most of the buyer's closing costs typically related? - CORRECT ANSWER >>The mortgage loan the buyer's obtaining Your brokerage firm uses pre-printed sales contract forms, but your seller, Marcus, wants to add some language about staying in the house and renting from the buyer for a month after closing. What should you use to add this information? - CORRECT ANSWER >>Addendum Tom and Jim are neighbors. Jim wants to buy Tom's rental property. In the contract they sign, Jim is identified only as "the neighbor." Which statute or contract element does this violate? - CORRECT ANSWER >>The statute of frauds When working with a seller, you signed a listing agreement that ensured you'd receive a commission, provided the property sold during the listing term. What type of listing agreement did you sign? - CORRECT ANSWER >>Exclusive right to sell Which of the following properties requires a lead disclosure? - CORRECT ANSWER >>Duplex built in 1959 What does an REO on a lender's assets mean? - CORRECT ANSWER >>The lender owns real estate after a foreclosure sale. Joan and Martha are entering into an 18-month lease with landlord Roger. Which of these statements is true? - CORRECT ANSWER >>Leases for periods of more than one year must be in writing. What is a township? - CORRECT ANSWER >>A 36-square-mile square formed in the use of the rectangular government survey system The Gatlins' lender tells them they can afford a monthly payment of $1,830 on their new home loan. What interest rate are the Gatlins getting if this is an interest-only loan with a principal balance of $349,000? Annual payment ÷ loan balance = interest rate. $1,830 x 12 to get the annual payment of $21,960. Then divide the annual payment by the loan amount: $21, 960 ÷ $349,000 = .0629, or 6.29%. - CORRECT ANSWER >>6.29% Kyle owns six acres of land with 400 feet of river frontage. He wants to build a beach along the river bank to make it easier to swim in the river. He can do this because as the owner of river original loan balance and not on current market value. - CORRECT ANSWER >>PMI Quentin brought an application before city council to build a shopping mall on 17 acres south of town that currently don't have a zoning designation. The council referred him to the planning commission, which will review the application in light of the city's ________. - CORRECT ANSWER >>Comprehensive Plan Maxine is purchasing a small craft shop, including the underlying real estate. She applies for a commercial loan from her federally insured bank to complete the purchase. Is Maxine's transaction covered by the Real Estate Settlement Procedures Act? - CORRECT ANSWER >>No; commercial and business loans are exempt from RESPA requirements. ___________ loans are exempt from RESPA. - CORRECT ANSWER >>Commercial and business Following all of the client's lawful instructions describes which fiduciary duty? - CORRECT ANSWER >>Obedience Alistair bought a townhouse for $285,900. He got a 90% loan and the lender charged him 3-1/2 discount points. How much did Alistair pay in discount points? The sales price is $285,900, and 90% of that (aka our loan amount) is $257,310. The discount amount is 3-1/2 points, (.035) multiplied by $257,310 = $9,005.85. - CORRECT ANSWER >>$9,005.85 Lamar closes on his new home next week. It's a 37-year-old split level, so his agent asked if he's interested in purchasing a home warranty. "Why would I need a warranty?" he wondered. "Didn't the home inspection identify all of the issues?" What's the agent's best response to Lamar's question? - CORRECT ANSWER >>A home warranty covers things the inspection didn't address, like appliances, as well as structural issues that occur. A _______________ often covers items that weren't inspected. Also, even the systems that WERE inspected are subject to problems or failure. - CORRECT ANSWER >>Home Warranty Lowell used to own 17 acres of property on the bay. After last year's hurricanes, Lowell now owns 15.5 acres of bayfront property. Which natural process was responsible for Lowell's loss of acreage? - CORRECT ANSWER >>Avulsion ____________ is the loss of land by a sudden, large-scale change in water flow. - CORRECT ANSWER >>Avulsion Related to the legal test of a fixture, in the acronym MARIA, what do the two As stand for? - CORRECT ANSWER >>Adaptability of item to land's use and agreement of the parties Which of the following statements about the promissory note is true? - CORRECT ANSWER >>A promissory note is a negotiable instrument and can be transferred to a secondary holder who has the right to enforce the note's terms. __________________ is evidence of the debt that specifies the borrower's financial obligations. Collateral for the note is typically the property on which the loan is made. It's a negotiable instrument. - CORRECT ANSWER >>The promissory note Sander and Ginny bought an old industrial site and plan to get grant money to put an environmental education center on the site. There are a few structures on the property, but they are in disrepair, and it will likely be less expensive to tear them down and build new than to rehabilitate them. However, the new owners are sure that they've made a great investment because the land is in great shape. This reflects which physical characteristic of real property? - CORRECT ANSWER >>Indestructibility What is the physical characteristic that states that while improvements may deteriorate, land can't be destroyed. - CORRECT ANSWER >>Indestructibility Julio's lender presents him with a loan for $275,000 for 30 years at a 4.75% interest rate. How many discount points does Julio need to pay upfront to lower the interest rate to 4%? - CORRECT ANSWER >>Three Rhonda and Oliver bought an old schoolhouse with the hope of transforming it into a residence. They owned the property as joint tenants. After Oliver died, how did Rhonda own the building? - CORRECT ANSWER >>In severalty When a property is found to contain an environmental hazard, what can generally be expected to happen to the property's value? - CORRECT ANSWER >>The presence of an environmental hazard would decrease the property's utility and restrict its use until the hazard is cleaned up, decreasing value. The seller and ______ must approve a short sale. - CORRECT ANSWER >>The seller's lender Which of the following is the price a lender believes the property will bring at a foreclosure sale? - CORRECT ANSWER >>Mortgage value According to the U.S. Department of Justice, which type of antitrust violation is an agreement between competitors to set contract terms for a certain length of time? - CORRECT ANSWER >>Price fixing Trinity has applied for a home equity line of credit to perform some upgrades on her home. Within what timeframe must her lender provide the Closing Disclosure? - CORRECT ANSWER >>The Closing Disclosure isn't required for a HELOC. lines of credit aren't subject to TRID disclosures. - CORRECT ANSWER >>Home equity Desmond has a signed listing agreement with his clients, the Harpers. In exchange for helping the Harpers list, market, and sell their home, the Harpers have agreed to pay Desmond a commission. What type of agreement do Desmond and the Harpers have? - CORRECT ANSWER >>Bilateral What is a contract involving an exchange of promises or other consideration between two parties - CORRECT ANSWER >>Bilateral Contract A seller wants to net $10,000 after the broker's commission of 6% and a loan balance of $250,000 are paid. For how much does the property need to sell? To calculate this, start with 100% minus a 6% commission, which is 94% or .94. Take $250,000 plus $10,000 and divide this amount by .94. - CORRECT ANSWER >>$276,596