Determine your answer, then click the arrow to see the correct response.
Which of the Following Is an Example of a Unilateral Contract?
A) Lease agreement
B) Option contract
C) Purchase agreement
D) Listing agreement
Correct Answer: B) Option contract
Explanation: An option contract is a unilateral contract because only one party, the optionee, has made a promise to perform if they choose to exercise the option.
What Is a Key Difference Between a Deed and a Title?
A) A deed is a legal document that conveys ownership, while a title is a concept referring to ownership rights
B) A title is a legal document that conveys ownership, while a deed is a concept referring to ownership rights
C) A deed provides proof of ownership, while a title provides proof of transfer
D) There is no difference; the terms are interchangeable
Correct Answer: A) A deed is a legal document that conveys ownership, while a title is a concept referring to ownership rights
Explanation: A deed is a physical document that transfers ownership, whereas a title refers to the legal rights associated with ownership.
A Lease Agreement Where the Tenant Pays a Base Rent Plus a Percentage of Their Business Profits Is Known As:
A) Gross lease
B) Net lease
C) Percentage lease
D) Graduated lease
Correct Answer: C) Percentage lease
Explanation: A percentage lease involves the tenant paying a base rent plus a percentage of their business profits.
In Mississippi, How Many Months of Active Real Estate Experience Are Required To Qualify for a Broker’s License?
A) 24 months
B) 12 months
C) 36 months
D) 72 months
Correct Answer: B) 12 months
Explanation: Mississippi requires 12 months of active real estate salesperson experience prior to applying for a broker’s license
A Mississippi Real Estate Agent Is Representing a Buyer in a Transaction. The Buyer Asks the Agent To Recommend a Home Inspector. What Should the Agent Do?
A) Recommend only one inspector
B) Provide a list of several inspectors
C) Refuse to recommend any inspector
D) Recommend an inspector who is a personal friend
Correct Answer: B) Provide a list of several inspectors
Explanation: Providing a list of several inspectors ensures the buyer has options and helps avoid potential conflicts of interest.
A Seller in Mississippi Signs a Listing Agreement With a Broker. After Three Weeks, the Seller Decides To Cancel the Agreement. What Are the Seller's Options?
A) The seller can cancel the agreement without any consequences
B) The seller must pay a cancellation fee
C) The seller may owe the broker compensation for any expenses incurred
D) The seller must wait until the agreement expires
Correct Answer: C) The seller may owe the broker compensation for any expenses incurred
Explanation: Depending on the terms of the agreement, the seller may owe the broker for expenses incurred or a cancellation fee.
A Mississippi Real Estate Licensee Is Selling Their Own Property. What Must They Disclose to Potential Buyers?
A) The property’s history of repairs
B) The fact that they are a licensed real estate professional
C) The highest price they are willing to accept
D) Any offers they have already received
Correct Answer: B) The fact that they are a licensed real estate professional
Explanation: Licensees must disclose their licensed status when selling their own property to ensure transparency and avoid conflicts of interest.
The Term "Equitable Title" Refers To:
A) Legal ownership of a property
B) The right to use a property
C) The right to obtain full ownership of a property in the future
D) The recorded title of a property
Correct Answer: C) The right to obtain full ownership of a property in the future
Explanation: Equitable title is the interest held by a buyer under a contract to purchase real property, entitling the buyer to obtain full ownership.
An Appraisal That Uses the Cost Approach Primarily Considers:
A) The income potential of the property
B) The sales prices of comparable properties
C) The replacement or reproduction cost of the property
D) The property’s assessed tax value
Correct Answer: C) The replacement or reproduction cost of the property
Explanation: The cost approach estimates the value of a property by determining the cost to replace or reproduce it, minus depreciation, plus land value.
What Is a "Balloon Mortgage"?
A) A mortgage with a fixed interest rate and constant payments
B) A mortgage with large payments due at the end of the loan term
C) A mortgage with increasing payments over time
D) A mortgage with a variable interest rate
Correct Answer: B) A mortgage with large payments due at the end of the loan term
Explanation: A balloon mortgage requires smaller regular payments with a large final payment (balloon payment) at the end of the loan term.