Missed Questions-30 Hour Unit II Advanced RE

Kip, a South Carolina licensee, is explaining the Entire and Binding Agreement (Merger Clause) of a South Carolina sales contract to his client, Wanda. He says

"The contract is binding upon your heirs."

In South Carolina, what must a property seller who's not a resident of the state do

Comply with income tax withholding requirements

Danny is buying Rudy's South Carolina property. A special assessment will apply after closing. Who's responsible for paying this?

Danny

What measure is used to determine a three-unit property's ability to produce future income

Gross Rent Multiplier

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

Many investors like the real estate market for its ________, with the potential for bottom-line yields of 20% or more.

High Yields

In South Carolina, whose responsibility is it to ensure that the parties seek legal advice before signing a sales contract?

The parties themselves

In a 1031 exchange, there are rules governed by Section 1031 of the Internal Revenue Code. The rules include _______.

The property in an exchange must be like-kind.

A seller, in an installment sale of a residential property, is paying their capital gains tax through installment sale deferment, and their installment obligations at the end of the tax year will be less than $5 million. Given the situation, which one of the following statements is true

They'll only pay taxes proportionate to the gain collected each year.

What's the purpose of the alternative minimum tax?

To keep the highly wealthy from avoiding paying any taxes

Which of the following elements of the NAR Code of Ethics are broad statements of ethical principles

Articles

Based on capitalization rate alone, which investment will have the higher appraised value: one with a 10% cap rate or one with a 4% cap rate?

4%

Which of the following is an example of a cloud on a title?

A third party has staked a claim on a property

In calculating estate taxes, lifetime taxable gifts are __________ to net value, and the tax is computed.

Added

Which of the following costs in a South Carolina purchase transaction is considered a buyer's transaction cost

Appraisal cost

In South Carolina, the parties agree in the sales contract to a repair procedure unless what document is attached?

Due Diligence Addendum

Which of the following statements about the Alternative Minimum Tax is FALSE?

If the tax calculated on Form 6251 is lower than that calculated on the investor's regular tax return, the investor must pay the difference as AMT.

When buyers contact you for the first time, why is it important to ask how they found you

It can help you determine what additional questions to ask.

What is an advantage to using mediation as a problem-solving tool in a contract dispute

It offers a win-win solution because both parties come out with satisfactory results.

Drake's offer to purchase Kevin's condo currently has a financing contingency, an inspection contingency, an appraisal contingency, and a sale of current home contingency. Kevin also got an offer from Lucy, which came in at $5,000 less than Drake's offer but with only an appraisal contingency. What is true about Drake's offer compared to Lucy's?

It's likely viewed as a less favorable offer.

In an NAR ethics dispute, who or what entity has the power to determine whether laws were broken?

Licensing authorities

Real estate is NOT considered a _______ investment because it may be more difficult to sell quickly without a loss of capital.

Liquid

Your buyer clients are submitting an offer on a newly built home in a very trendy part of town. The seller requires that the home be sold for at least $450,000. What is a good strategy for structuring the offer in this case

Offer full price or more.

Which of the following statements regarding investments is true?

Real estate investment is different from other investments because there's potential for earning income two different ways from the same investment.

The houses in one neighborhood are all of similar sizes and style. When the Smiths' house goes into foreclosure, what principle will affect the value of the next-door neighbors' house if they sell at the same time?

Regression

Matt's sellers have a valuable artwork collection displayed in their home that perfectly showcases various rooms. What advice should Matt provide to his sellers when preparing to sell the home?

Remove the artwork and replace with suitable, less-expensive pieces as necessary.

Ronnie, a South Carolina homebuyer, has until August 22 to notify the seller of deficiencies found during the inspection period. If Ronnie fails to notify the seller until August 23, what will happen

Ronnie must buy the property as-is.

April and Wayne, buyers of a South Carolina home, said the sellers had failed to deliver a required notice to them by the contracted deadline. Their agent had received it, but failed to deliver it to April and Wayne. Was notice delivered?

Yes