course 1 final practice exam attempt 3

which of the following best describes a home equity line of credit

Used as an open-end account similar to the revolving credit of a credit card from which borrowers can take advances, repay money, and even borrow money again

what type of antitrust violation occurs when real estate firms agree to divide their market so they don't compete with one another

market allocation

What is a loan origination fee?

A fee a lender charges for processing a loan

why do short sales usually occur

The seller is experiencing financial hardship.

Which one of Gerry's statements to a client crosses the line into unauthorized practice of law?

"Most couples take ownership of property as joint tenants, so that's what I'd advise."

how long is a mile

5,280 feet

A seller wants to net $10,000 after the broker's commission of 6% and a loan balance of $250,000 are paid. For how much does the property need to sell?

$276,596

how many acres are in a quarter section in a rectangular survey

160

how many additional education hours are required for a Minnesota real estate sales person to become a licensed broker

30

In Minnesota, license withdrawals without extenuating circumstances become effective how long after the receipt of a withdrawal request?

30 days

in Minnesota, the interest rate for personal or private loans is not allowed to exceed ______

8%

what's the purpose of PMI

protect the lender in case of borrower default when the borrower has put down less than 20%

when considering loan risk, which two items will lenders consider in equal measure

Borrower and property

which of the following describes amortized debt

Debt that's paid off by making periodic payments

a ______ is a limitation on the use of land that appears in the deed itself

Deed restriction

which of these is not one of the ways in which an agency relationship may be terminated without penalty for either the agent or the principal

Delaney signed a buyer's representation agreement with Martha. After Delaney made an offer on a house, she changed her mind and terminated the agency agreement.

which of the following situations is an example of a non-agency relationship

Dutton was previously a licensee. He's selling his home, and he wants Wanda, who's currently licensed, to assist him with the paperwork.

which of the following is true regarding express agreements

Express agreements may be written or verbal.

Nancy just hired her sister, real estate licensee Grace, to list her property. Jason schedules a showing for his client, who's interested in Nancy's property. What needs to take place?

Grace needs to disclose in writing to Jason and his client that the property is owned by a family member.

In a ground lease situation, what does the ground tenant own?

Improvements (including buildings)

Layla, a licensee, has had a few casual meetings with a potential client, Marcus. Marcus has told Layla the type of home and locations he's interested in. Layla has mentioned a few homes that she thinks Marcus might be interested in. Although Layla hasn't said that she will continue to look for homes for Marcus, Marcus believes she'll do just that. Which of these statements about this situation is correct?

Layla's actions may have created an implied agency agreement with Marcus.

how does drinking water become contaminated by lead

Lead water pipes

Government agencies usually become involved during which phase of an environmental assessment

Phase III: Clean-up

Samantha is a real estate licensee. She's showing her client a property. The client asks about some spots on the ceiling and wonders if they're an indication of a roof leak. What should Samantha do?

Suggest that her client contact a roofing expert to make a determination.

which of the following is a possible outcome if a brokerage is found guilty of violating antitrust law

The brokerage may have to undergo court-ordered supervision for up to 10 years.

Who is responsible for doing the final walk-through of a property

The buyer and the buyer's agent

it's closing day! Which of the following is likely to happen at this time

The buyer's loan funds will be transferred

Who or what entity is responsible for determining the validity of a will as part of the probate process

The court

Jared is a buyer in Minnesota who is working with an agent. He's made an offer on a property owned by Byron, who is also working with an agent. Byron accepted Jared's offer. Assuming there are no specific instructions in the purchase agreement, what happens to Jared's earnest money?

The seller's agent must deposit the earnest money within three business days.

which of the following actions can licensees take related to signs

They can place signs on an owner's property with the owner's written consent.

Thomas is a contractor in Minnesota who remodeled a kitchen for a homeowner. The homeowner paid for half the cost when work began two months ago, but failed to pay the remaining balance when the job was done. Thomas filed a mechanics lien. Which of the following must be true

Thomas included a notice of his right to file a lien in the original written contract before beginning work on the kitchen

which of these statements about title insurance is true

Title insurance coverage includes the service of a "title search" prior to the close of the sale.

Marissa, a new licensee, has some questions. Which of the following questions can the association of REALTORS® in her state help her answer?

Where can I go to find some marketing data on my area so I can advertise more effectively?

The two fiduciary duties that survive the termination of the listing agreement are

accounting and confidentiality

You owe certain duties to customers, but you should not act ______.

as an advisor

if you suspect there might be an environmental issue with a property you're selling but you're not sure, what should you do

ask a lot of questions, ask for help, and disclose everything if issues do exist

what's the term for someone who has agency representation with the licensee

client

A real estate licensee is acting as what type of agent want assigned by the broker to represent one party and an in-house transaction

designated

Leon and Beth own 1/13 of a timeshare estate. They own weeks 20 and 21, and also weeks 40 and 41. These weeks are inheritable. What type of ownership is this

fee simple

Scott has plenty of money saved and is ready to make a down payment on his $14 million dream home. One problem: Scott doesn't want to end up with a jumbo loan because he goes over the conforming loan limit. What option does Scott have

he can take out a piggyback loan

part of the underwriting and loan approval process is verifying that borrowers have adequate ______

homeowners and flood insurance

what role does the Brownfield law play in the assessment and cleanup of unused commercial/industrial sites that may contain hazardous waste

it provides funds

obviously, you can't lawfully convey something unless the parties agree on what's being conveyed. How is that determined

legal description

The right to access ponds, lakes, and other stationary bodies of water is ______.

littoral

Shannon just helped Linda sell her property. when the agency relationship between Shannon and Linda terminates, can Shannon disclose confidential information that Sharon learned while Linda was her client

no, because an agents duty of confidentiality never ends

Marshall is a Minnesota real estate broker. His listing agreement with Dolly included a six-month override clause. for the clause to be effective, what must Marshall do

provide Dolly with a protective list within 72 hours of the listing agreements expiration

The commissioner of the Minnesota Department of commerce has the authority to perform all of the following EXCEPT:

sentence license law violators to jail time and fines

Blake owns a condominium and has an undivided interest in the common elements. What are "common elements"?

shared space and amenities

A Minnesota home owner decides to homestead his property. What's the advantage

tax benefits

what term explains the complexity of property ownership rights and how rights for a single property can be "owned" by multiple parties at the same time

the bundle of rights

what is the purpose of The title search

to collect evidence that the title is a marketable title, meaning it's clear and free of encumbrances

The Davises pay the annual property tax of $1,825 on their lake house every January. On a whim, they sell the lake house to the Bennets to buy a Winnebago and travel the country. Closing is set for July 31, and the buyers own the day of closing (pay prorated expenses through the day of closing). Using the calendar year proration method (assume that it's not a Leap year), how much of the pre-paid property tax was the Davises' responsibility?

$1,055

Your seller client has an offer for $300,000. If the agreed-upon commission is 5%, what is net to seller before any other costs are taken into account?

$285,000

Whitney and Justin are about to close on their refinance, and their loan amount is $362,000. They are paying a 1.5% origination fee. How much will the origination fee be

$5,430

Gary has an 80% LTVR on his new $318,000 townhome with an annual interest rate of 4.125%. What's his interest payment the first month?

$874.50

an 800 square-foot rectangular building sells for $75,000. What is the cost per square foot

$93.75

with the exception of recently licensed appraisers (within the last 6 to 24 months), how much continuing education is required during an appraisers licensing period in Minnesota

30 hours

Jane found a house she loved that was listed at $345,000. Her offer of $330,000 was accepted, but the appraisal came in at $300,000. Jane plans to finance $275,000. What's the loan-to-value ratio?

92%

which of the following describes a subdivision plat

A record in the county clerk's office that can serve as the legal description on a deed

in Minnesota, contractors must provide homeowners with specific notice if they intend to attach a labor and materials lien to a property. what must be included in this notice

A statement that communicates the contractors right to place a lien

which document is used to provide a summary of the title history

Abstract of title

Margie is a licensee in a dual agency transaction with seller Steven and buyer Alda. in which of the following situations can Marge share what she knows with all parties without compromising her duty of loyalty

Alda tells Marge that she's hired an inspector to perform a property inspection

which one of these is an example of the doctrine of estoppel

Corrie shows Marvin several properties and prepares CMAs for each. She assists him in making an offer on one. He becomes difficult to work with, and she then says she's not his agent because they don't have a signed agency agreement.

Ginnie's Aunt Becca listed the old family mansion with Ginnie. Ginnie put it on the market for Becca, but then she and her cousins talked with Becca and decided they wanted to keep the property in the family. What's the best way to terminate the agreement?

Ginnie and Becca can mutually agree to terminate the agreement.

Not wanting to delay closing, Alice, the seller's agent, didn't disclose when the seller informed her a week before closing that the hot water heater needed to be replaced. Which fiduciary duty to the customer is Alice violating?

Honesty and fair dealing

which of the following is true about special assessments in Minnesota

Improvements for which special assessments are levied must benefit the properties they are levied against.

Bartholomew was a practicing real estate licensee in Minnesota, but spent some time dabbling in other careers for a few years before deciding to get back into real estate. He's studying to take the licensing examination again. Which of the following is most likely true?

It's been at least two years since Bartholomew's last renewal deadline.

what is true of dual agency disclosure in Minnesota

It's required for all parties to a potential dual agency residential transaction.

To whom does the subprime market cater?

Less creditworthy borrowers

regarding licensee compensation, which of the following statements is true

Licensees may only receive compensation for real estate services through their broker.

which of the following is a characteristic of predatory lending

Making loans the consumer can't afford

if an item is permanently attached to a property, a court would most likely consider it a fixture if it passes which of the following tests

Method of annexation

what agency overseas the underground storage tank program in Minnesota

Minnesota pollution control agency

what must you do to convert a percentage to a decimal number

Move the decimal point two places to the left and remove the percent symbol.

Preston is a condominium developer in Minnesota. He's just signed a sales contract with Brett to purchase one of the first units that will be completed. Which of the following statements must be true

Preston provided Brett with a public offering statement at least 15 days ago

what factors directly affect an adjustable rate mortgage

Rate, index, and margin

Jayne was tired of waiting for her subcontractor to get his part of the deal done. The agreed-upon deadlines came and went, and Jayne lost money waiting for the subcontractor to come through. She decided that if the subcontractor wasn't going to honor his commitments, neither was she, so Jayne consulted with her attorney and then terminated the contract. This is an example of ______.

Rescinding the contract unilaterally

The right to access non-navigable rivers, streams, and other flowing bodies of water adjacent to a property is called ______ rights.

Riparian

Madeline works for a single-agency firm. If she wants to represent both the buyer and seller in a transaction, what must she do?

She can't do this at her firm.

Betty hired a contractor to replace her gutters. Within days, the gutters leaked and flooded her basement. She complained to the contractor, who replaced the gutters again. The next time it rained, the gutters leaked and flooded Betty's basement a second time. Frustrated, Betty decided to file a lawsuit against the contractor in an attempt to recover the money she lost. This is an example of ______.

Suing for damages and breach of contract

which amendment to CERCLA says that " innocent landowners" aren't responsible for the cleanup of hazardous contamination

Superfunds amendments and reauthorization act

Trinity has applied for a home equity line of credit to perform some upgrades on her home. Within what timeframe must her lender provide the closing disclosure

The Closing Disclosure isn't required for a HELOC.

When the listing agreement's purpose has been fulfilled, what happens to the agency agreement?

The agency agreement terminates by completion.

what's one of the required elements of a valid option contract

The amount of consideration the option he is paying the optionor

Lauren had a listing agreement with Florence, a Minnesota real estate broker. After Lauren's agreement with Florence ended, she re-listed her home with Jamal and sold the property within two months. Florence is seeking compensation from Lauren because the property sold to a buyer that showed interest when the property was listed with Florence. Which of the following could allow Florence to receive compensation?

The buyer's name was on the protected list provided to Lauren two days after contract expiration. The contract included a three-month override clause.

which of the following is a true statement about the mortgage registry tax (MRT) and deed tax in Minnesota

The deed tax is Applied to the full price paid for the property

which of the following is considered a "responsible person" per Minnesota license law

The general partner of an LLP

How does the term "break-even point" relate to percentage leases?

The landlord doesn't charge a percentage of sales until the tenant's sales exceed a break-even point.

what happens to a lease contract when a property changes hands

The lease terms do not change

Penelope is a broker in Minnesota who supervises five associated licensees. Her license was revoked by the commission. What do her associated licensees need to do to continue practicing real estate?

Transfer their licenses to a new broker.

which of these statements about voluntary alienation is true

Voluntary alienation occurs when the property owner decides who will acquire the property.

of the following, which is most likely to be considered a fixture

a fence around a field

which statement most accurately describes a licensee's responsibility related to written offers on a listing, according to the NAR code of ethics and standards of practice

all formal written offers received by the licensee must be presented to the owner until closing or execution of a lease, unless the client waves this obligation in writing

if an appraiser in Minnesota doesn't receive anything from the licensing unit after submitting a renewal application, the appraiser should consider that renewal has been ______

approved

Which of the following will an underwriter evaluate prior to loan funding

available funds

By when must Minnesota sellers disclosures to buyers have sewage is handled on the property

before excepting the buyers offer

you're working with buyers who are interested in trying to get a bargain in the form of a foreclosure. What should you tell them

buyers should take special care to ensure that any title issues are addressed

Quinn is a licensed broker in Minnesota. She's getting ready to submit a sales person licensing application for Rachel. Which pre-licensing courses must Rachel have completed to get to this point

completion of courses one, two, and three

licensed residential appraisers in Minnesota can't appraise properties with which of the following limits

complex property transactions valued at less than $250,000

many of an agents fiduciary duties to the client and upon termination of an agency agreement. Which fiduciary duty never ends

confidentiality

The Kelo vs. City of New London U.S. Supreme Court ruling was controversial because the U.S. Constitution prohibits the government from taking private property except for "public use". What governmental power was central to this case?

eminent domain

when someone dies intestate with no heirs, The real property owned by that person may be taken by the state through ______

escheat

what does it mean if a property falls in a floodplain

experts believe it is likely to be flooded sometime in the next 100 years

what's the relationship between the loan estimate and the closing disclosure

lenders issue the loan estimate within three days of receiving an application, and closing disclosure figures should be similar to the loan estimate

A loan officer charges a fee to a buyer to cover the cost of creating the loan. What type of point is being applied?

loan origination point

in an addendum to the purchase and sale contract, the seller agrees to paint the house before conveying the house to the buyer. The weather changes, and the seller is unable to finish painting the house before closing. Of what is this an example

partial performance

which phase of the environmental site assessment involves a review of the properties history and examination of its physical features

phase I: investigation

subdivision development is often guided by how the land is zoned, and also by the subdivision regulations set forth by the _______

planning commission

Rohit bought 31 acres of undeveloped and mostly forested land. He is planning a weekend with friends where they'll camp on the property while scouting good locations to place a cabin. Which right in the bundle of rights allows Rohit to do the camping weekend on undeveloped land?

possession

which of the following is a primary focus of the statue of frauds as it relates to real estate transactions

real estate purchase and sales contracts must be in writing to be enforceable

Any agreement between competing firms that restrict trade or discourages competition is a violation of antitrust law. An agreement between competitors to do which of the following is also an antitrust violation

restrict choices for consumers

Billy buys Randy's home, and specifies in the sales contract that the outdoor grill must stay with the home. Randy ends up taking the grill when he moves out. If Billy wants to see Randy for taking the grill, Minnesota statue of limitation states that he must do so within _______

six years

which minnesota homebuyer assistance program offers first time homebuyers low interest rates, low down payment, and up to $10,000 for down payment and closing costs

start up

a ______ is a tract of land divided into lots or plots and used for building purposes

subdivision

Who is responsible for paying appraisal and credit report fees

the buyer

your buyer client asks you The purpose of a financing contingency. Your response should be that it protects _________

the buyer

Pamela inherited a piece of property that has been in her family for generations. She wants to find the property's exact boundaries. What should contain this information?

the legal description of the property

Harini had a lease with an option to buy on her condo since she wasn't financially stable enough to purchase the condo when she first signed the lease. Two years later Harini was in great financial shape, but she found out that the owner legally sold the condo to another buyer. Harini hast to move out next month. What must have happened

the option expired

a ______ gives the purchaser the right to possess the property at given times for a given duration but doesn't convey ownership

timeshare use

The education requirement for initial licensing as a training appraiser includes 15 hours of _______

uniform standards of professional appraisal practice coursework