1. You have three (3) hours to complete this exam.

2. This is an open book exam. You may use any written materials you wish.

3. The exam consists of 50 multiple-choice questions and one essay question. You may allocate your time as you please.

4. The multiple choice section constitutes 2/3 of the examination. You should try to complete this part in two hours. Correct multiple-choice answers are to be marked on the ParScore answer sheet form provided using pen or pencil and following the instructions on that form. If you change your answer, place a X through the wrong answer and mark the correct answer. A machine will score the exam and any ambiguities will be counted as a wrong answer. If two answers are true, you should select only the best answer.

5. If you have comments on any questions you want me to read, write those comments directly next to the questions themselves, and indicate on the first page of the question booklet what their numbers are. I won’t pay attention to any written notes inside the exam book except those listed there. Don’t try to make each question into a little essay just to get some extra credit points, because a wrong comment can also make a correct answer wrong.

6. Write your exam number on your exam envelope and at the top of this page, and the top of each page of questions, each blue book and on your ParScore answer form. Do not use your name, student ID number or Social Security Number on any exam materials.

7. At the conclusion of the exam, return all exam materials to the exam envelope and submit it to the proctor. Do not seal the envelope. Students who do not return all exam materials at the end of the exam will not be graded.

PART II

This essay question constitutes 1/3 of the exam. It consists of one (1) question divided into two parts. You must answer both parts. Read the facts carefully. Answers based on incorrect facts are treated as incorrect answers. If you think that important facts are missing or ambiguously stated, make reasonable and explicit assumptions about them. Do not make assumptions that make the entire problem vanish. Abbreviate where appropriate. Please type or answer in blue books. Write legibly on every other line and one side of each page only. Illegible answers will not be read.

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Olympia gave Burke an exclusive right to sell listing on her property for $500,000. The listing provided that Burke might elect to be a dual agent rather than an exclusive agent of the seller. Burke advertised the property in the Sunday papers, and on Monday, he showed the property to Carl, who instructed Burke to fill out an offer to purchase it for $500,000. The offer showed Burke as a dual agent. Carl did not sign it at the time, since he felt that he was not yet entirely certain that he wanted to buy; instead, he would sit on the offer for a day or so.

On Tuesday, Burke showed the property to Don, who said he was ready to make an offer to purchase the property for $500,000 then and there. Burke prepared an offer from Don for that amount, using the same form as he had used with Carl (again showing Burke as a dual agent). Burke took Don’s offer without mentioning anything about Carl.

While Burke was driving over to Olympia’s office to show her the offer, he received a call from Carl. Carl said that he had decided to buy the property for Olympia’s asking price of $500,000. Burke told Carl that he was already about to present an offer for that much to Olympia, so that Carl would have to offer more if he wanted to get the property. Carl then said that he would offer $510,000, and Burke then drove over to Carl’s house, amended Carl’s offer to show the higher price, got Carl’s signature on it and then took it, intending to drive to Olympia to present both offers to her.

However, as Burke was on his way to Olympia with the two offers, he began to worry whether he had acted properly. He pulled over and called you, his attorney.

1. Since Burke already had Don’s offer in his possession when he spoke to Carl, was it proper for him to get a competing offer from Carl? Or should he have called Don first to get his consent? Or should he call Don now to inform him as to what has happened? If so, should he tell Don how much Carl has offered? If he does do so, should he then tell all that to Carl? What, if anything should he tell Olympia? Advise Burke.

2. Assume that Burke presented both offers and Olympia accepted Carl’s $510,000 offer. However, after she had signed her acceptance on it, she received a phone call from Don who offered her $520,000 for the property, free of any commission. She calls her attorney to ask whether, since her title is subject to neighborhood CC&Rs, can she refuse to deliver a deed to Carl on the ground that the CC&Rs render her title unmarketable and therefore entitle her to withdraw?

END OF EXAM