A couple is buying their first home and they are unsure as to the integrity of construction. How should their buyer's agent advise them?

Their offer should be written contingent upon a satisfactory inspection by a professionally trained home inspector.

The agent should suggest FHA financing as they will get an inspection when the appraiser values the property.

Their offer should be written contingent upon a satisfactory inspection by a professionally trained home inspector.

The buyer should ask a friend or relative to look over the property, thereby foregoing the expense of an inspection.

The agent should thoroughly inspect the property to determine if there are any latent defects which could be material.

A buyer contracted to buy a couple's home. When moving in after closing, the buyer noticed that the stereo speakers that were attached to the ceiling had been removed and large holes were left opening into the attic. Which of the following best describes this situation?

The buyer may demand the return of the items claiming that they were fixtures due to their attachment to the structure.

The couple may keep the speakers but have to fix the holes in the ceiling.

The speakers are considered to be severed movables and are not part of the real estate.

The couple had a right to remove the speakers because they were their personal property.

The buyer may demand the return of the items claiming that they were fixtures due to their attachment to the structure.

Tennessee PSI Real Estate Practice Exam

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Question 1

A contract is delivered to the listing broker by a cooperating broker. The listing broker makes an appointment with the owner to present the offer at 7 p.m., two more offers arrive on the same property. Which offer should be presented to the owner at the 7 p.m. appointment?

Your Answer: Option(s)

Correct Answer: Option(s) A

Rationale

All three of the offers should be presented to the owner at the 7 p.m. appointment.

The listing broker has a fiduciary duty to present all offers to the seller, regardless of the number of offers received or their particulars. Presenting all offers allows the seller to make an informed decision based on complete information.

A) all three of the offers
This choice is correct because it aligns with the ethical obligation of the listing broker to present every offer received to the seller. By doing so, the seller can consider all available options, which can impact their decision-making process regarding the sale of the property.

B) the first offer received
This option is incorrect because prioritizing only the first offer disregards the broker's responsibility to present all offers. The seller may find value in subsequent offers that could be more advantageous, either in terms of price or terms, making it essential to consider all options.

C) the offer with the highest sale price
While the highest sale price may seem attractive, this choice is incorrect as it neglects other crucial terms and contingencies that could affect the overall desirability of the offer. The listing broker must present all offers so the seller can weigh every aspect, not just the price.

D) the offer most favorable to the seller, including price and all terms
This option is misleading because it suggests that the broker should filter offers based on perceived favorability before presenting them to the seller. The listing broker's duty is to present all offers, allowing the seller to make the final decision based on comprehensive information.

Conclusion
In real estate transactions, it is essential for a listing broker to present all offers to the seller to fulfill their fiduciary duty and ensure the seller can make an informed decision. By presenting all three offers received, the broker provides the seller with the complete picture, taking into account not just the sale prices but all terms associated with each offer, thus enabling the seller to choose the best fit for their needs.

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All three of the offers should be presented to the owner at the 7 p.m. appointment.

Confidentiality is the fiduciary duty that prevents the broker from disclosing the seller's need to move quickly.

Their offer should be written contingent upon a satisfactory inspection by a professionally trained home inspector.

$68,500 is the total amount needed up front for the purchase.

The buyer may demand the return of the items claiming that they were fixtures due to their attachment to the structure.

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All three of the offers should be presented to the owner at the 7 p.m. appointment.

Confidentiality is the fiduciary duty that prevents the broker from disclosing the seller's need to move quickly.

Their offer should be written contingent upon a satisfactory inspection by a professionally trained home inspector.

$68,500 is the total amount needed up front for the purchase.

The buyer may demand the return of the items claiming that they were fixtures due to their attachment to the structure.

Free Preview Ended

Unlock Full Access

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