Free Alaska Contracts Practice Test — LicenseIQ

Question 1

A buyer offers $300,000. The seller counters at $315,000. The buyer rejects the counter and then tries to accept the original $300,000 offer terms. Is there a contract?

Accepted Answer

A counteroffer is a rejection and a new offer; the original offer cannot be revived by the buyer.

Question 2

When a seller changes a term of the buyer's offer and returns it, this creates a:

Accepted Answer

Altering any term rejects the original offer and creates a counteroffer, which the buyer may accept or reject.

Question 3

Under 12 AAC 64.130, a licensee must submit all written bona fide offers to the seller:

Accepted Answer

12 AAC 64.130 makes it a ground for discipline to fail to submit all written bona fide offers before the seller has accepted an offer in writing, when the broker knows of the acceptance. AS 08.88.615 separately requires timely presentation even while under contract.

Question 4

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Question 5

A contract that is missing an essential element, such as consideration, is:

Accepted Answer

Missing an essential element makes a contract void from the start. A voidable contract appears valid but may be canceled by one party.

Question 6

After the buyer and seller sign a sales contract but before closing, the contract is:

Accepted Answer

A contract is executory while obligations remain to be performed; it becomes executed when fully performed (at closing).

Question 7

A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

Accepted Answer

Listing agents must present all offers through closing, but should not give legal advice about the seller's obligations under the existing contract.

Question 8

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 9

The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

Accepted Answer

The Sherman Antitrust Act of 1890 prohibits conspiracies in restraint of trade, including these practices.

Question 10

A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

Accepted Answer

LTV is applied to the LESSER of price or appraised value: $290,000 x 0.75 = $217,500. Using the $300,000 price ($225,000) is the common mistake.

Question 11

A developer delivers a public offering statement on May 1 and the buyer signs on May 5. Closing has not occurred. Under AS 34.08.580, the buyer may cancel through:

Accepted Answer

Because the buyer did not receive the POS more than 15 days before signing, she may cancel within 15 days after receipt: May 1 + 15 days = May 16, before conveyance.

Question 12

A licensee representing the seller who learns the buyer will pay more than the offer must:

Accepted Answer

Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.

Question 13

A buyer took title to a new condominium unit without ever receiving the public offering statement. In addition to damages, the buyer is entitled to:

Accepted Answer

AS 34.08.580 entitles such a buyer to 10 percent of the sales price plus 10 percent of the proportionate share of secured association debt.

Question 14

Which item is a required minimum term in an Alaska property management contract under 12 AAC 64.550?

Accepted Answer

12 AAC 64.550(b) requires the manager's responsibilities, the owner's grant of authority, the period of the agreement, and the management fee.

Question 15

A buyer pays $10,000 for a 12-month option to buy a house for $250,000. During the option period:

Accepted Answer

The option binds only the optionor. The optionee may exercise or let it lapse (forfeiting the option money).

Question 16

A seller agrees with a broker that the seller will receive $200,000 and the broker keeps anything above that. The home sells for $240,000. This arrangement is a:

Accepted Answer

In a net listing the broker's fee is the excess over a set net ($40,000 here). It encourages the broker to underprice and is illegal in many states, including NJ.

Question 17

In an option to purchase, the seller who grants the option is the ____ and the option holder is the ____.

Accepted Answer

The seller (optionor) gives the option; the buyer (optionee) holds it. Only the optionor is bound during the option period, making it unilateral.

Question 18

Adding a new financing contingency to an existing sales contract is done by a(n) ____, while changing the existing closing date is done by a(n) ____.

Accepted Answer

An addendum ADDs new terms; an amendment changes existing terms. Both require agreement of both parties.

Question 19

A property manager wants to sell a property he manages. He needs:

Accepted Answer

12 AAC 64.550(d) requires authorization in the management contract or a separate listing agreement.

Question 20

A party making an offer to buy is the ____, and the party receiving it is the ____.

Accepted Answer

The offeror makes the offer; the offeree receives it. When a counteroffer is made, the roles swap.

Question 21

An exclusive management contract may be renewed or extended:

Accepted Answer

AS 08.88.341 permits renewal or extension only by a written agreement signed by the client or the client's authorized representative.

Question 22

For material noncompliance with the rental agreement that the tenant can remedy, the landlord's notice to quit must specify a termination date at least:

Accepted Answer

AS 34.03.220(a)(2) requires at least 10 days, and the tenancy does not end if the tenant cures before then.

Question 23

If a buyer receives the disclosure statement in person after making a written offer, the buyer may terminate the offer within:

Accepted Answer

AS 34.70.020 allows termination within 3 days after in-person delivery or 6 days after delivery by mail.

Question 24

If the disclosure statement is delivered by mail after the buyer's written offer, the buyer may terminate within:

Accepted Answer

AS 34.70.020 sets 6 days for mailed delivery. Five days is the CIOA resale certificate void period, a common mix-up.

Question 25

A buyer's offer is rejected. The broker holding the buyer's earnest money check:

Accepted Answer

12 AAC 64.250 bars refusing to return a rejected buyer's deposit but allows waiting until one business day after the check clears.

Alaska real estate contracts practice test

1. A buyer offers $300,000. The seller counters at $315,000. The buyer rejects the counter and then tries to accept the original $300,000 offer terms. Is there a contract?

2. When a seller changes a term of the buyer's offer and returns it, this creates a:

3. Under 12 AAC 64.130, a licensee must submit all written bona fide offers to the seller:

4. Under the statute of frauds, a real estate sales contract must be:

5. A contract that is missing an essential element, such as consideration, is:

6. After the buyer and seller sign a sales contract but before closing, the contract is:

7. A seller has already accepted an offer, and another buyer submits a higher offer. The listing agent should:

8. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

9. The federal law that prohibits price fixing, group boycotts, market allocation and tie-in agreements is the:

10. A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

11. A developer delivers a public offering statement on May 1 and the buyer signs on May 5. Closing has not occurred. Under AS 34.08.580, the buyer may cancel through:

12. A licensee representing the seller who learns the buyer will pay more than the offer must:

13. A buyer took title to a new condominium unit without ever receiving the public offering statement. In addition to damages, the buyer is entitled to:

14. Which item is a required minimum term in an Alaska property management contract under 12 AAC 64.550?

15. A buyer pays $10,000 for a 12-month option to buy a house for $250,000. During the option period:

16. A seller agrees with a broker that the seller will receive $200,000 and the broker keeps anything above that. The home sells for $240,000. This arrangement is a:

17. In an option to purchase, the seller who grants the option is the and the option holder is the .

18. Adding a new financing contingency to an existing sales contract is done by a(n) , while changing the existing closing date is done by a(n) .

19. A property manager wants to sell a property he manages. He needs:

20. A party making an offer to buy is the , and the party receiving it is the .

21. An exclusive management contract may be renewed or extended:

22. For material noncompliance with the rental agreement that the tenant can remedy, the landlord's notice to quit must specify a termination date at least:

23. If a buyer receives the disclosure statement in person after making a written offer, the buyer may terminate the offer within:

24. If the disclosure statement is delivered by mail after the buyer's written offer, the buyer may terminate within:

25. A buyer's offer is rejected. The broker holding the buyer's earnest money check:

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