Residential Builder's Salesperson Practice Exam

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• What are closing costs?
• What are Implied Warranties?
• What is an escrow account used for in real estate transactions?
• What is a Broker Price Opinion (BPO)?
• What fiduciary duty does a salesperson owe to their client?
• What fund may a subcontractor be paid from if a contractor fails to pay them but the customer has already paid the contractor?
• True or False: Contingency Costs are included in an estimate to account for known variables.
• What is the process of compiling all factors influencing the cost of a project called?
• Which of the following could be considered company overhead?
• How long is a typical listing agreement valid?
• How many days' advance notice is required before an investigative conference is held?
• Which of the following is a violation of the occupational code?
• What does the term appraisal refer to?
• What is one significant benefit of networking in real estate sales?
• What type of contract specifies a fixed price for the entire project from start to finish?
• Why is it important for real estate salespersons to understand local zoning laws?
• What does pre-approval mean in the context of obtaining a mortgage?
• What is a "walk-through" in real estate transactions?
• True or False: A license can be revoked without a hearing.
• Project overhead can include which of the following?
• What does the term "escrow" refer to in residential real estate transactions?
• How long can a company call a consumer after an inquiry?
• True or False: Sellers can limit an Implied Warranty of Merchantability and Fitness for use without disclosing it clearly.
• What does an interest rate affect in the context of mortgages?
• What is the purpose of a quantity survey in construction?
• Which form of contract is commonly used for large construction projects with a specific total price?
• What is a complete list of all the materials and items of work required to complete a project called?
• Before a contractor can receive a draw or progress payment, what document must all material suppliers and subcontractors sign?
• Which financing option allows buyers to purchase a home with lower upfront costs?
• If a construction contractor is unable to fulfill a contract, what could be an outcome of good faith payments made by a customer?
• What are changes to contract documents called before the execution of the contract?
• In a contingent offer, which factor usually controls the sale?
• What is the function of a multiple listing service (MLS)?
• According to the Home Solicitations Sales Act, what must be provided to the purchaser at the time of sale?
• In a contract, what typically signifies the agreement's end?
• Name one potential consequence of failing to disclose defects in a property.
• Can an unlicensed contractor impose a lien against a homeowner?
• Is it true that in a typical construction loan, the interest rate is locked for the entire term of the loan?
• Define “as-is” sale in real estate.
• Who decides the penalty imposed against a residential builder or contractor?
• Who within a company is not required to hold a salesperson's license while acting as a salesperson?
• When must a salesperson return their pocket ID card upon termination of employment?
• How is a "buyer’s market" defined?
• What is often one of the first steps in the home buying process?
• What can a prospective buyer expect during an open house event?
• What does “HUD-1 Settlement Statement” provide?
• When can salespeople begin selling?
• How long can a seller call a consumer listed on the National Do-Not-Call Registry if there's an established business relationship?
• What is considered an important aspect of a fiduciary duty in real estate?
• Understanding zoning laws helps avoid what in real estate transactions?
• What is a necessary condition for a seller to disclaim an Implied Warranty of Merchantability?
• What term describes costs incurred by contractors that do not directly relate to project production?
• What term refers to costs added to an estimate to cover unknown variables?
• What kind of service does an exclusive right-to-sell agreement provide?
• How many days does a licensee have to report a change of address to the Department?
• What is the importance of maintaining accurate records in real estate?
• What is a "binding agreement" in real estate?
• If a contractor fails to complete a project on schedule, what may they have to pay if the contract emphasizes timeliness?
• What does a plot or site plan indicate in a blueprint?
• What type of contract is best for a contractor remodeling an older home?
• What could be a reason a seller would choose to list their home “as-is”?
• If a construction project is secured by an unlicensed salesperson, what is the status of the contract?
• Indirect labor costs, such as employee health insurance, are often known as what?
• Which of the following is a common type of mortgage?
• What is the term for the funds withheld from a contractor until the project is completed?
• What is typically needed when estimating costs for home fixtures?
• Name one advantage of new construction homes.
• How many days does a person have to respond to a complaint after receiving it?
• How is company overhead important for a contractor?
• In real estate, what is the primary focus of staging a home?
• True or False: All implied warranties are explicitly stated in construction contracts.
• Which of the following is a requirement for salespeople in relation to licensing?
• How should a salesperson handle an offer lower than the asking price?
• What are the licensing requirements for becoming a Residential Builder's Salesperson?
• What is an allowance in a construction contract?
• In a lump sum agreement, what does every dollar over budget equate to?
• Which of the following actions is NOT prohibited by fair housing laws?
• Which of the following is NOT a valid reason to submit a complaint against a contractor?
• For a contract to be valid, what is one of the four required elements it must include?
• Which action would NOT be a violation of the occupational code?
• What is the primary purpose of staging a home?
• What does “open house” mean?
• What should be accounted for in a project's estimate?
• What role does an appraisal play in real estate transactions?
• What must all written agreements provide in addition to clear terms and specifications?
• What must happen if a salesperson transfers to a new company?
• In terms of contract law, what does a material breach involve?
• What does "market saturation" refer to?
• What is the purpose of a construction lien?
• What is Michigan's version of several federal civil rights acts combined?
• When contracting with a builder, what must the builder provide to the purchaser?
• What is a property listing?
• Which factor is most crucial when a contractor must estimate costs for a project?
• What is the role of a title company in a real estate transaction?
• What is the primary purpose of property disclosure forms?
• Which of the following actions is considered a violation of the Articles regulating the occupation?
• Which of the following is considered a violation of Truth in Advertising?
• What is “staging” in the context of real estate?
• Who is typically hired by mortgage companies and lenders to assist with closing a loan?
• Without which document do customers not legally have to comply with additional cost requests?
• What is a “lease-back” agreement?
• If a homeowner plans to build a 300 square foot shed on their property, what must they do?
• When adding profit to an estimate, the profit is typically represented as what?
• Which entity is exempt from the National Do-Not-Call Registry?
• When applying for a construction loan, which document is necessary to include?
• How many days must a telemarketer or seller search the National Do Not Call Registry?
• What is an important aspect of understanding building codes?
• What types of costs are categorized as company overhead for a contractor?
• If there is a change made to the original plans and specifications on a project, what must it be formalized with?
• Which agency oversees the licensing of Residential Builder's Salespersons?
• What action should a salesperson take if a seller discloses a defect?
• What should a salesperson recommend if a seller is unwilling to price their home competitively?
• Networking in real estate sales primarily aims to enhance what aspect?
• What are lease options in residential real estate?
• Which term describes the cost of employee contributions that a company is responsible for, such as insurance?
• In which situation is a written disclaimer about the "AS IS" condition of a product required?
• What do long broken lines parallel to the property lines on a site plan represent?
• Which of the following is NOT a category protected under fair housing laws?
• What indicates that a property disclosure statement is critical?
• What is the penalty for practicing the occupation without a license?
• True or False: The Fair Housing Act applies to people with mental disabilities.
• What is the main purpose of a Residential Builder's Salesperson?
• Is it true that a salesperson can be in violation of the Truth in Advertising Laws if they misrepresent the delivery of goods?
• A BPO is typically used for what purpose?
• What size must the text be for the Notice of Rights to Cancel according to the Home Solicitations Sales Act?
• What is the purpose of a real estate prospecting plan?
• True or False: A builder can offer bonuses as incentives to potential clients legally.
• What is a “contingent offer” in real estate?
• In what situation might a salesperson have legal grounds to cancel a contract?
• What is the effect of location on property values?
• What does a home warranty typically cover?
• If a salesperson allows their license to expire and does not plan to renew it, what must they do?
• What is the purpose of the National Do Not Call Registry?
• Which of the following is a key benefit of using an exclusive right-to-sell agreement?
• Which legal document initiates a real estate transaction?
• What should a salesperson do if they believe a property is priced excessively?
• What does the term "contingency" mean in real estate?
• A homeowner who refuses to sell their home based on the buyer having children is violating what law?
• What is the time frame for registering a complaint with the Board of Residential Builders and Maintenance and Alterations Contractors?
• What does Michigan Law require regarding construction contracts?
• What crime are contractors guilty of if convicted for fraudulent use of contract funds?
• No one may take certain actions based on which of the following factors?
• Are permits required for home improvements that exceed $2500 in total cost?
• Which term refers to the initial amount that a buyer pays upfront when purchasing a home?
• What is home equity?
• What does "fair housing" refer to in the context of real estate?
• How many of the nine board members represent the general public who are not practicing contractors?
• Must a builder provide plans and specifications to a customer if the home is identical to a model previously walked through?
• When should a seller disclose material defects of a property?
• What is considered diversion of funds in relation to the occupational code?
• What must be true for a license suspension to occur?
• True or False: Michigan law necessitates that all construction contracts be oral agreements.
• What describes the due diligence process in real estate?
• If a salesperson intends to renew their license, what must they ensure?
• Who appoints members of the Board of Residential Builders?
• What is necessary for a Residential Builder's Salesperson to conduct property showings?
• What is a “short sale” in real estate?
• What is the purpose of a real estate advertisement?
• Why is it crucial to understand community zoning laws in real estate?
• What is a seller's market?
• Which group must approve the Governor's appointments to the Board?
• What does it mean if a homeowner has an easement on their property?
• What does "earnest money" signify in a real estate transaction?
• What type of breach is considered the most serious in a contract?
• Define “seller disclosure laws.”
• True or False: A merchant must provide a disclaimer that a product is sold "AS IS" to avoid misunderstandings regarding warranties.
• How many days does a customer have to cancel a contract if a sale was initiated at their home?
• Which term describes misrepresentation of goods being delivered at a purchaser's request when that is not true?
• What must a salesperson do when they terminate employment with a contractor?
• What is one requirement for obtaining a contractor's license?
• What type of warranty refers to the explicit assurances provided by a seller?
• Which document outlines a homeowner's financial agreement regarding a mortgage?
• What type of property financing is characterized by fluctuating interest rates?
• What does "real estate disclosure" involve?
• Is it permissible for a builder to solicit a contract by promising a bonus contingent on the purchaser displaying their dwelling to a third person?
• If a painter's wife is actively soliciting for his company, does she need to be a licensed salesperson?
• What is the primary advantage of a fixed-rate mortgage?
• Which of the following is NOT a violation of the Fair Housing Act?
• Under what condition can implied warranties be disclaimed?
• What does Public Act 299 provide for regarding professionals in the construction industry?
• What does "zoning" determine regarding a property?
• If a qualifying officer's license is suspended, what is the effect on the salespersons' licenses?
• Which of the following is a responsibility of a residential builder's salesperson?
• What is the purpose of a comparative market analysis (CMA)?
• Which type of warranty is often expected by consumers but not expressly stated?
• What is typically necessary for a legally binding contract?
• What is the primary purpose of a real estate listing agreement?
• What is the primary purpose of real estate disclosure?
• At what monetary amount must contractors be licensed?
• What is "equity" in real estate?
• Where should contractor licenses be displayed in an office?
• What is a key difference between a Realtor and a Residential Builder's Salesperson?
• Which of the following costs is NOT typically included in project overhead?
• If a contract is negotiated based on price per square foot, what is this type of contract called?