Free Nebraska Contracts Practice Test — LicenseIQ

Question 1

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 2

A financing contingency in a purchase agreement protects the:

Accepted Answer

A financing (mortgage) contingency lets the buyer cancel without penalty if unable to secure the specified loan by the deadline.

Question 3

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 4

Which provision must every written Nebraska listing agreement contain?

Accepted Answer

81-885.24(19) makes it an unfair trade practice to omit a fixed expiration date, and 76-2422(2) requires one in seller agency agreements.

Question 5

A buyer purchases a subdivision lot without seeing it. Under the contract terms 81-885.34 requires, what right does the buyer have?

Accepted Answer

Required contracts must give a buyer who has not seen the land a full refund if exercised within 14 days of inspection, with inspection no sooner than four months after the contract date.

Question 6

A sales contract provides that if the buyer defaults, the seller keeps the earnest money as the full measure of damages. This is a:

Accepted Answer

Liquidated damages are a sum agreed in advance as compensation for breach - often the earnest money deposit.

Question 7

A zero-down-payment government loan program aimed at low- and moderate-income buyers in eligible rural areas is offered through the:

Accepted Answer

USDA Rural Development loans serve eligible rural buyers who meet income limits, often with no down payment.

Question 8

How can a cooperating broker become the seller's subagent when the listing broker has made a unilateral offer of subagency?

Accepted Answer

76-2422(5) says that where a unilateral offer of subagency exists, a broker may become a subagent by informing the customer it is the client's subagent.

Question 9

A contract clause stating that 'time is of the essence' means:

Accepted Answer

'Time is of the essence' makes performance by the stated dates essential; missing a deadline can be a breach.

Question 10

A subdivider will offer 340 lots. What is the filing fee under 81-885.34?

Accepted Answer

The fee is $100 plus $25 per block of 100 lots, counting a partial block as whole. 340 lots means 4 blocks: $100 + 4 x $25 = $200. Using only 3 blocks gives $175.

Question 11

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 12

Which is NOT an essential element of a valid contract?

Accepted Answer

The essential elements are offer and acceptance (mutual consent), consideration, competent parties and legal purpose. Notarization is not required for a contract to be valid.

Question 13

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 14

A licensee works with a buyer. The designated broker has no seller agency, subagency, dual agency or expanded-duty written agreement covering the property. By default, the licensee is what?

Accepted Answer

76-2416 makes a licensee a buyer's or tenant's limited agent unless one of the listed written agreements exists. The old common-law subagency default does not apply.

Question 15

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 16

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 17

A licensee records a listing agreement against a property to pressure the owner, though no valid claim exists. This is what?

Accepted Answer

81-885.24(25) prohibits filing a listing contract or lien document to cloud title when no valid claim exists.

Question 18

A person under contract to buy a house publicly advertises the contract for assignment. Which statement is correct?

Accepted Answer

81-885.02(2) treats publicly marketing an equitable interest in a purchase contract as licensed activity, except for a vacant lot. An equitable interest is not ownership for the owner exemption.

Question 19

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 20

An offer is accepted in writing at 2:00 p.m. Tuesday. Under the 72-hour rule, what is the latest time to deposit the earnest money absent a written agreement otherwise?

Accepted Answer

Seventy-two hours from 2:00 p.m. Tuesday is 2:00 p.m. Friday (24 hours to Wednesday, 48 to Thursday, 72 to Friday).

Question 21

Which item is NOT required content in a Nebraska seller's single-agency agreement under 76-2422(2)?

Accepted Answer

76-2422(2) requires duties, compensation, a fixed expiration date and the subagency statement. The seller's bottom line is confidential and not required.

Question 22

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 23

A company offers homeowners $1,500 today in exchange for the exclusive right to list their home if they ever sell. Under the License Act, a licensee who enters into this kind of agreement does what?

Accepted Answer

81-885.24(37) makes offering or entering into a right-to-list home sale agreement an unfair trade practice.

Question 24

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 25

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.

Nebraska real estate contracts practice test

1. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

2. A financing contingency in a purchase agreement protects the:

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

4. Which provision must every written Nebraska listing agreement contain?

5. A buyer purchases a subdivision lot without seeing it. Under the contract terms 81-885.34 requires, what right does the buyer have?

6. A sales contract provides that if the buyer defaults, the seller keeps the earnest money as the full measure of damages. This is a:

7. A zero-down-payment government loan program aimed at low- and moderate-income buyers in eligible rural areas is offered through the:

8. How can a cooperating broker become the seller's subagent when the listing broker has made a unilateral offer of subagency?

9. A contract clause stating that 'time is of the essence' means:

10. A subdivider will offer 340 lots. What is the filing fee under 81-885.34?

11. 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:

12. Which is NOT an essential element of a valid contract?

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

14. A licensee works with a buyer. The designated broker has no seller agency, subagency, dual agency or expanded-duty written agreement covering the property. By default, the licensee is what?

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

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

17. A licensee records a listing agreement against a property to pressure the owner, though no valid claim exists. This is what?

18. A person under contract to buy a house publicly advertises the contract for assignment. Which statement is correct?

19. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

20. An offer is accepted in writing at 2:00 p.m. Tuesday. Under the 72-hour rule, what is the latest time to deposit the earnest money absent a written agreement otherwise?

21. Which item is NOT required content in a Nebraska seller's single-agency agreement under 76-2422(2)?

22. 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?

23. A company offers homeowners $1,500 today in exchange for the exclusive right to list their home if they ever sell. Under the License Act, a licensee who enters into this kind of agreement does what?

24. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

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

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