Continuing Ed Part 2

One thing you should ask any buyer prior to showing a property is ____________

" Are you working with another agent"?

What is the calculation used to determine the LTVR?

(Loan amount ÷ property value) x 100

The most common fixed-rate loan is the ________.

30 years

Suppose an appraiser tells a seller a ballpark range of value for the listed property. What is this considered, per USPAP?

A formal opinion of value

Determine which of the following statements regarding disclosures is true.

Agency disclosures don't create an agency relationship.

If a contract contains ______, the courts generally interpret the agreement against the party who prepared it.

Ambiguity

To resolve a dispute, what option could Juan and Nico select even though it's often the most expensive and can't be appealed?

Arbitration - With arbitration, an arbitrator hears the case and makes a determination that is binding between both parties.

Your buyer client, Emma, had asked the seller to hire a plumber to make some repairs. But she later learned that the seller made the repairs himself, with duct tape. She's considering filing a ______ lawsuit.

Breach of Agreement

In Georgia, what's true about working with a buyer as a customer?

Brokers are entitled to a commission if they identify the property that the buyer customer purchases.

What does the Exclusive Buyer Brokerage Engagement Agreement state about dual agency?

Buyers don't have to consent to dual agency.

Buyer Angus is suing a seller, Danielle, because she failed to disclose the damaged masonry on the side of the house. The damage was clearly visible. Angus's case has no legal merit because ______.

Buyers may not recover for nondisclosure of a material defect that could be easily detected

Clive prequalified for a loan, which means ________.

Clive prequalified for a loan, which means ________.

Which of the following protects a person's intellectual property and provides economic incentive for authors to create new works?

Copyright law

With the cost approach to value, what is the replacement cost?

Cost to build a functionally equivalent improvement

With the cost approach to value, what is the reproduction cost?

Cost to build an exact replica of the subject, with the same materials and deficiencies

Which fiduciary duties do customers receive?

Customers don't receive fiduciary duties because they're not clients.

Charis has a fixed-rate loan. As the principal declines, she can expect the interest amount in each payment to

Decrease

Real estate licenses can be revoked or suspended if ______.

Earnest money deposits are not managed properly

Kara has a low income and wants a low down payment and low closing costs. Which loan would be a good choice for her?

FHA loan

A way of looking at things from a different perspective or finding the positive intention of a behavior is called

Framing

A credit score of 680 is considered ________.

Good, A score of 660 to 719 is considered good.

To ensure win-win results in your real estate practice, you must know your desired outcome, keep your senses aware, and ______.

Have a choice of responses

Spiro, a real estate professional, just finished touring a property he'd like to list for sale. When talking with the owner about the property and comparing it to other properties recently sold in the area, he tells the owner that in his opinion an appropriate list price for the home is $350,000. What, if anything, did Spiro do wrong?

He didn't do anything wrong

The major causes of closing delays and cancellations include all of the following EXCEPT ________.

Holidays. Most hurdles that delay or prevent closings fall into three major areas: loans and appraisals, title issues, and home inspections

What's the word for when a contract requires one or both of the parties to break the law?

Illegality

When an appraisal report will be more than four months old on the date of the note and mortgage, what is the appraiser required to do?

Inspect the exterior of the property and review current market data

What does the inspection contingency allow?

It authorizes inspections only.

Your goal is to "Not have any more transactions fall apart at closing." According to the formula for achieving a desired outcome, what is wrong with this goal?

It is stated in the negative.

Which of the following stems from the misuse or misappropriation of content, potential violations of trademarks and copyrights, and potential violations of agency relationships and fiduciary responsibilities?

Legal Risk, stems from the misuse or misappropriation of content, potential violations of trademarks and copyrights, and potential violations of agency relationships and fiduciary responsibilities.

What are the buyer's rights pertaining to the appraisal?

Legally the buyer is entitled to a copy of the appraisal report.

Radon is an important environmental issue because it causes what?

Lung Cancer

Financing for a real estate transaction can use a note with a ______, a note with a deed of trust, or, in Georgia, a note with a security deed.

Mortgage

Caleb, an appraiser, has not yet completed his appraisal, but MLS figures and public records indicate that the property will "make value." If the lender asks Caleb for an opinion on that matter, Caleb may ________.

Not answer the question. Appraisers may not give estimates except under their licensed duties, and only after completing the appraisal.

A beneficiary, trustor, and trustee are the parties involved when the finance instrument is a ______________.

Note with a deed of trust

When does PMI end?

Once the loan-to-value ratio reaches 78% of the original value.

Which of these describes the likelihood of injury or liability from a certain action (or inaction)?

Probability of risk

Many market conditions impact housing prices. Which of the following is a true statement?

Reduced consumer confidence makes new buyers wary of purchasing and homeowners hesitant to trade up.

Walt is planning to use a 203(k) loan to rehab the foreclosed home he just purchased. Which of the following can he use the loan to cover?

Roof Repair, the 203(k) loan programs can't be used to cover luxury items, such as the installation of a swimming pool, hot tub, or barbecue pit.

Which real estate finance instrument in Georgia may include the pledging of collateral and the release of that collateral in the same document?

Security deed

Who is responsible for ensuring property descriptions are accurate?

Seller and sellers agent

Mannie made an offer on a short sale property, but was frustrated when his agent told him that ______.

Short Sales Take a Long Time

To whom may an appraiser reveal a property's value estimate?

The Client

Chin is a real estate licensee who prepared a CMA for the Mitchells. She suggested a price range rather than a specific price. Why might she do this?

The Mitchells may want to select within the range depending on their motivation.

Which of the following is true about the GRM method?

The method can't be used alone as an indication of value for residential property.

What must occur in order for fraud to be proven in court?

The misrepresentation has to be material and involve false information that another party relied on

Who completes the property condition disclosure statement, and who is liable for the information provided?

The seller completes it, and the seller is liable for the contents.

Regarding mold, which of these statements is true?

To be safe, sellers and licensees should disclose any known presence of mold or water intrusion.

Why do consumers need a mortgage disclosure like the Loan Estimate?

To help them make informed decisions about the affordability of a loan

Mark's new buyer tells him he's in no hurry to find a property, but contacts Mark weekly to follow up on listings. Mark should ________.

Treat the buyer as though he were in a hurry to identify a property

The ______ is the most widely used appraisal reporting instrument.

URAR

In which situation would loan fraud occur?

When a lender makes an inappropriate loan due to a false picture of the buyer's financial position

Under which circumstance may a licensee legally receive items of value from a real estate settlement service provider?

When actual services are performed

What's the definition of PMI?

When borrowers put down less than 20% of a home's appraised value or sales price, lenders require them to pay the premiums for an insurance policy that partially reimburses the lenders should the borrowers default on the mortgage.

When does a borrower NOT need to provide tax returns to get preapproved for a loan?

When she is a full-time salaried employee

Would the cost approach be used to determine the value of an historic residential property?

Yes, because the the uniqueness of a historic home is more important than the difficulty in evaluating depreciation.

debt coverage ratio,

divide the net income by the debt service

While buyers may not be familiar with buyer representation agreements, most ______.

most know about listing agreements.

Steering

the practice of influencing a buyer's choice of communities based upon one of the protected characteristics under the Fair Housing Act, which are race, color, religion, gender, disability, familial status, or national origin.

Blockbusting

which can be used as a scare tactic, can occur when an agent uses a substantial demographic shift within a specific area to exploit the fears of homeowners