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Your clients, the Jamesons, are selling their lakefront property. They receive an offer, and the buyer has included a pre-approval letter. The Jamesons balk, saying, "We want a pre-qualification letter, or we're not selling." What do you tell them? "A pre-approval letter is almost as good." "A pre-approval letter is better than a pre-qualification letter." "I agree. We will ask for a pre-qualification letter." "The pre-qualification letter will only come after the property appraises."
"A pre-approval letter is better than a pre-qualification letter."
A property appraised for $257,000 and the buyer paid $249,000. Which value will a lender use when determining the loan-to-value ratio? $249,000 $257,000 Whichever provides the seller prefers. Whichever the borrower prefers.
$249,000
An acre is equal to ______. 43,560 feet 43,560 square feet One mile One square mile
43,560 square feet
Which of these statements best represents what happens after a federal fair housing complaint is made? A fair housing specialist will review the complaint. An official housing discrimination complaint will be filed, and a fair housing specialist will be assigned to the case. FHEO will contact the alleged perpetrator to gather information. HUD will review the complaint to determine if it's valid.
A fair housing specialist will review the complaint.
Which of the following opinions can a real estate licensee provide? An opinion regarding the appraisal value of a property An opinion regarding the effect of breaking an existing agreement to accept a new offer An opinion regarding the listing price An opinion regarding whether a roof needs to be replaced
An opinion regarding the listing price
Renae moved to the U.S. from Nigeria and became a citizen. Which act specifically provides Renae with the right to buy, sell, convey, inherit, and possess property? Civil Rights Act of 1866 Equal Credit Opportunity Act of 1974 Federal Fair Housing Act of 1968 Housing and Community Development Act of 1974
Civil Rights Act of 1866
Which of the following is one of the requirements necessary to reactivate an inactive Alabama real estate license? Complete 15 hours of CE. Complete 30 hours of pre-licensing courses. Obtain a broker statement giving the approval to reactivate the license. Pass the state exam.
Complete 15 hours of CE.
What regulation or regulatory authority identifies sites that have hazardous substances, and requires the responsible parties to clean them up? Comprehensive Environmental Response Compensation and Liability Act Department of Housing and Urban Development State Department of Environmental Quality Superfund Amendments and Reauthorization Act
Comprehensive Environmental Response Compensation and Liability Act
What do buyers provide to the seller as an indication that they are serious and intend to go through with the sale? A copy of the signed agency agreement A promissory note Earnest money Their word
Earnest money
Which statement related to reasonable accommodation for an assistance animal is true? If the disability for which the tenant is making the request is obvious, the landlord may not ask why it is needed. If the disability is not obvious, the tenant must provide the landlord with full medical records to support the request. The landlord is not obligated to consider the request unless the tenant can produce either the original or a certified true copy of the animal's service certification. The landlord must consider the request but may require an additional pet security deposit.
If the disability for which the tenant is making the request is obvious, the landlord may not ask why it is needed.
Which of these is a recommended strategy for a real estate professional who wants to avoid being asked to violate fair housing laws? Let consumers know up front that you adhere to fair housing laws. Only work with clients who are the same race as you. Quiz clients on their views about protected classes. Require your clients to complete training on fair housing laws.
Let consumers know up front that you adhere to fair housing laws.
Which type of events are generally on a title insurance policy's schedule of exceptions? Claim from an owner with an unrecorded deed Claim that was filed on the public record before a title insurance policy's effective date Liens or claims that aren't on the public record Mechanic's liens filed prior to a title insurance policy's effective date
Liens or claims that aren't on the public record
In the conveyance of real property after death, what trumps any terms specified in the deceased person's will? Heirs' wishes Intestate Nothing Operation of law
Operation of law
Elisa and Simone signed an agreement to list Simone's house for sale. After the contract was signed, Simone lost her job, and her father, George, offered to help Simone out by paying Elisa's commission. The buyer's agent, Carl, also reduced his commission by a quarter percent to help Simone out. Who is Elisa's client? Carl Carrie George Simone
Simone
A seller has an exclusive listing agreement with Teresa that is set to expire in three weeks. Unhappy with her representation, the seller contacts other licensees about re-listing her property. Which of these actions is a violation of Alabama license law? Refusing to talk to the seller while under an exclusive agreement with another licensee. Talking to a seller who is under an exclusive agreement, even if the seller initiated the contact. Telling the seller that the property can be re-listed with a new agent, but only after the exclusive contract with the other agent expires. Telling the seller to terminate the agreement with the agent now, so the property can be re-listed with a new agent sooner.
Telling the seller to terminate the agreement with the agent now, so the property can be re-listed with a new agent sooner.
Co-ownership with inheritance rights is what kind of real property ownership? Joint tenancy Tenancy by the entirety Tenancy in common Tenancy in severalty
Tenancy in common
Annie and George have been saving and are finally ready to purchase their first home for their family (including their two toddlers). They want to make an offer on a sweet little bungalow in a quiet neighborhood. If the sellers are represented by a real estate licensee, which situation would be a violation of fair housing laws? Their offer is rejected because it's too low. Their offer is rejected because the seller knows the neighbors don't like children. They rescinded their offer when a house they were previously outbid on became available again. They rescinded their offer when their inspection revealed the house had structural issues.
Their offer is rejected because the seller knows the neighbors don't like children.
Which agency enforces fair housing law? FFA FHEO NFHA NHA
This is likely to be considered a reasonable accommodation, and Angela should be permitted to install it at her own expense.
What protects the buyer before the sale and can reimburse the buyer after the sale if a title issue arises? Homeowners insurance Lien proceeds Special deed Title insurance
Title insurance
What entity services rural development loans? a. FNMA b. FSA c. GNMA d. HUD
b. FSA
the ueta makes it legal and binding for contracts to be a. completed verbally b. filed without signatures c. signed electronically d. written by a broker
c. signed electronically
When a lender charges a borrower more than the highest allowable interest rate, it is called ______. A discount point A note Interest Usury
usury
Which of these items should real estate professionals help first-time buyers and buyers who have experienced recent credit issues to understand? Appropriate financing High-risk loan products Rental options Rental options and high-risk loan products
Appropriate financing
In Alabama, salesperson applicants must take their pre-licensing exam within _____ of course completion. Nine months Six months Three months Two months
Six months
Ramon and Bill are victims of fair housing discrimination. Which of the following must have occurred if their landlord violated specific terms of the Fair Housing Act? They were refused an apartment because Ramon is from Nicaragua. They were refused an apartment because they're gay. They were refused housing because Bill is a smoker. They were shown an inferior apartment because the landlord doesn't like 20-somethings.
They were refused an apartment because Ramon is from Nicaragua.
Buyer Susie's a little nervous about the $20,000 earnest money check she just deposited with the title company. When should she expect to see this money applied toward her purchase of the property? When conditions are met at closing When her mortgage is approved Within 10 days of the home inspection Within six months of closing
When conditions are met at closing
what attracts borrowers to adjustable rate mortgages? a. balloon payment b. convertible feature c. initial cap d. lower initial interest rate
d. lower initial interest rate
Which of the following is an example of a metes and bounds description? 123 Roanoke Street Any Town, ST 98765 "Beginning at the iron pin 30 paces from the center of the brook that runs across the road Southwesterly from the dwelling ..." Lot 6 of Block 3 of the Meridian subdivision ... S ½ SE ¼ NW ¼ Section 2 ...
"Beginning at the iron pin 30 paces from the center of the brook that runs across the road Southwesterly from the dwelling ..."
While reviewing her purchase contract, Jeanette's client asked, "What does this inspection contingency do?" How should Jeanette frame her response? "Like all contingencies, it means you'll get your earnest money deposit back if you back out of the contract because of the contingency." "That contingency means you can terminate the contract without penalty for any reason related to the home inspection results." "The inspection contingency gives you the legal right to terminate the contract if the seller refuses to fix the items you request." "The inspection contingency is designed to protect you in case the home inspector finds something wrong with the property that can't be fixed or that makes you uncomfortable."
"The inspection contingency is designed to protect you in case the home inspector finds something wrong with the property that can't be fixed or that makes you uncomfortable."
Which requirement in Alabama law is meant to ensure that licensees know the types of service agreements they may enter into with consumers? Brokers must adopt a written agency disclosure office policy that specifies this information. Licensees must memorize the Real Estate Brokerage Services Disclosure form. Licensees must obtain two hours of continuing education training per year on these agreement options. Licensees must submit a signed statement to the commission attesting to this fact once a year.
Brokers must adopt a written agency disclosure office policy that specifies this information.
Cambridge Apartments provides an open parking lot for its residents. There is adequate parking, and all spaces are available on a "first-come, first-served" basis. Alton has MS and uses a motorized wheelchair. Must Cambridge reserve a parking place specifically for Alton if he requests? As long as the current parking policy were already in place before Alton made application, Cambridge need not make an exception. Cambridge must allow an exception to the first-come, first-served policy for Alton. Cambridge must provide a space for Alton that is no farther than 50 feet from an accessible building entrance. Provided at least two parking spaces per living unit are available, a parking space need not be reserved for Alton.
Cambridge must allow an exception to the first-come, first-served policy for Alton.
Jill needs to pay the web developer who created a new website for her brokerage, but her checking account is low, so she floats herself a loan from earnest money kept in the brokerage's escrow account and deposits it in her account for a few days before paying the developer. Which answer correctly identifies the violation(s) Jill has committed? Commingling and conversion Commingling only Conversion only Deceptive business practice
Commingling and conversion
What are the two categories of comparison when evaluating comparables to a subject property in the market comparison approach? Broad and specific Components and measures Elements and units General and detailed
Elements and units
Which act provides consumers with remedies if they become victims of discrimination in the sale, rental, or financing of housing? Civil Rights Act of 1866 Equal Credit Opportunity Act of 1974 Fair Housing Amendments Act of 1988 Housing and Community Development Act of 1974
Fair Housing Amendments Act of 1988
It's not a good idea to post photos of your clients' expensive belongings. Why is that? It can attract the attention of thieves. It will decrease the market value of the property. It will discourage criminals. It will make the property less attractive to potential buyers.
It can attract the attention of thieves.
A real estate licensee must conduct marketing campaigns in a way that ______. Focuses on those characteristics of a buyer that fit most closely with the existing neighborhood norm Makes the property available to all buyers without limits or restrictions Satisfies the client's instructions, even if those instructions are not legal Satisfies the neighbors who must live near the new homeowner
Makes the property available to all buyers without limits or restrictions
Joe signed a listing agreement with Marisa. A week later, Marisa's co-worker, Tina, showed Joe a property that he's interested in buying once his home sells. A week after that, Ross submitted an offer on Joe's property on behalf of his buyer client. Who is Joe's agent? Joe doesn't have an agent. Marisa Ross Tina
Marisa
Corinne is 68 years old and employed full time. She's of Spanish descent, is raising her 12-year-old grandson, and lives with her partner, Katherine. She requires an accessible apartment because she uses a wheelchair. Under which of the following federally protected classes might Corinne be protected if she faces housing discrimination? Age, employment status, national origin, familial status, and sexual identity Age, race, familial status, sexual identity, and disability National origin, sex, disability, and familial status Religion, familial status, and disability
National origin, sex, disability, and familial status
The portion of the property management plan that discusses the property's current condition and recommendations to stall or reverse obsolescence is called the _______. Analysis of alternatives Competitive analysis Market analysis Property analysis
Property analysis
Which of the following is true about qualifying brokers and trust funds in Alabama? Qualifying brokers aren't allowed to accept cash for earnest money. Qualifying brokers don't own, but are responsible for, all trust funds they and their affiliated licensees receive. Qualifying brokers must deposit all checks received immediately. Qualifying brokers own the trust funds they receive.
Qualifying brokers don't own, but are responsible for, all trust funds they and their affiliated licensees receive.
The ______ isn't used in states that were part of the original 13 colonies, or in Texas, West Virginia, and Kentucky. All these are widely used throughout the country Lot and block Metes and bounds Rectangular government survey system
Rectangular government survey system
Which of these pieces of legislation work together to prevent discriminatory lending practices? The Equal Credit Opportunity Act, the Community Reinvestment Act, and the Home Mortgage Disclosure Act The Housing and Economic Recovery Act, the American Recovery and Reinvestment Act, and the Consumer Financial Protection Act The Housing and Urban Development Act, the Fair Housing and Employment Act, and the Community Development Act The Real Estate Settlement Procedures Act, the Truth in Lending Act, and the Consumer Credit Protection Act
The Equal Credit Opportunity Act, the Community Reinvestment Act, and the Home Mortgage Disclosure Act
Which of these statements accurately describes finance- and housing-related legislation? As a stipulation of the Housing and Community Development Act, lenders must offer reasons when rejecting loan applications and must respond to all applications within 30 days. The Americans with Disabilities Act added familial status and disability (both physical and mental) to the existing protected classes. The Equal Credit Opportunity Act of 1974 required lenders to provide consumers with equal access to credit and prohibited credit discrimination based on just the three protected classes of race, color, or national origin. The Fair Housing Act of 1968 prohibited discrimination in the sale, rental, and financing of housing based on race, color, religion, or national origin.
The Fair Housing Act of 1968 prohibited discrimination in the sale, rental, and financing of housing based on race, color, religion, or national origin.
Which party to the transaction pays earnest money to solidify his or her commitment to completing a real estate transaction? The broker The buyer The lender The seller
The buyer
Which of the following activities occurs before closing? The buyer and lender close on the mortgage loan commitment. The buyer obtains an insurance binder. The seller and buyer agents close on their cooperative brokerage agreement. The seller is paid the balance of the purchase price.
The buyer obtains an insurance binder.
What's a foreclosure? A property sale that occurs in less than one week A sale that fails to receive a high enough bid at auction and then falls to the bank's ownership The forced sale of a property due to the borrower defaulting on the mortgage loan The sale of a property when the market value of the home is less than what is owed, plus closing costs
The forced sale of a property due to the borrower defaulting on the mortgage loan
What must occur to effect a transfer of title? The grantee must sign the deed. The grantor must accept the deed. The grantor must deliver a valid deed to the grantee. The grantor should acknowledge the deed.
The grantor must deliver a valid deed to the grantee.
Which of these situations would be exempt from most provisions of the federal Fair Housing Act? A homeowner engages a real estate professional to rent out his basement apartment. An investor owns and rents out five duplexes. A non-profit owns 20 properties that it only rents to Caucasian families. The local Elks club owns a property that's rented only to Elks club members.
The local Elks club owns a property that's rented only to Elks club members.
Why would a retail tenant be willing to sign a lease in which a percentage of sales proceeds are paid to the landlord? The landlord and tenant are in business together. The tenant is hoping the landlord will sell the building to the tenant. The tenant wants to reduce the base rent. The tenant wants to show the landlord how viable the business is.
The tenant wants to reduce the base rent.
Kris made an offer on Lincoln's townhouse. However, Kris offered no earnest money. If Lincoln accepted her offer, would it be binding? No, because Lincoln wouldn't have any liquidated damages if Kris defaulted. No, because there's no consideration. Yes, because earnest money isn't part of a binding contract. Yes, because the offer to buy is the consideration.
Yes, because the offer to buy is the consideration.
What's your responsibility regarding contingencies when representing a buyer? You should avoid contingencies altogether because they tend to put sellers off. You should maximize the number of contingencies used to avoid getting sued. You should use a standard set of contingencies with each buyer. You should use contingencies judiciously to protect your client and the deal.
You should use contingencies judiciously to protect your client and the deal.
What is your responsibility at this point? Ensure that Katrina knows that not all contingencies have been cleared. a. Ensure that Katrina knows that not all contingencies have been cleared. b. make the seller fix the foundation issue c. report the seller and the seller's agent to the real estate commission d. threaten the seller's agent with a lawsuit if the problem isn't quickly fixed
a. Ensure that Katrina knows that not all contingencies have been cleared.
Which one of the following statements about the option period for a valid option contract is true? a. If the contract doesn't state the length of the option period, a court will require the optionor to make the option period for a "reasonable time." b. the contract doesn't have to specify a specific length of time for the option period c. the optionee must purchase the property within the period stated in the contract d. the optionor may sell the property to someone else during the option period
a. If the contract doesn't state the length of the option period, a court will require the optionor to make the option period for a "reasonable time."
Alabama broker Sarah represents buyer Alice, who's making an offer on a home in Montgomery. Sarah prepares, and presents Alice with, a closing statement with her estimated closing costs. What else must Sarah do? a. She must obtain Alice's signature acknowledging her receipt of the estimated closing cost statement. b. She must obtain Alice's signature acknowledging her receipt of the estimated closing cost statement and file it with the Alabama Real Estate Commission. c. She must obtain Alice's signature acknowledging her receipt of the estimated closing cost statement and have it notarized. d. She must obtain Alice's signature acknowledging her receipt of the estimated closing cost statement and have it notarized. Then she must file this with the Alabama Real Estate Commission.
a. She must obtain Alice's signature acknowledging her receipt of the estimated closing cost statement.
You're talking to a co-worker at lunch and she mentions she has a box of baby clothes her kids have outgrown that she needs to get rid of. You have a baby on the way, so you offer to pay her $25, and she agrees to bring the box to work the next day and give it to you. Which of the following is true in this situation? a. This is an express contract because you defined in words the specific terms of the agreement and consideration to be exchanged. b. This is an implied contract because it is not written down and nobody signed anything. c. This is an invalid contract because it is not written down and nobody signed anything. d. This is a unilateral contract because only one party is providing anything of value.
a. This is an express contract because you defined in words the specific terms of the agreement and consideration to be exchanged.
Shelly's flower business is blooming and it's time for her business to grow. She plans to take out a business loan to open two more shops on the north side of town. Which lending institution would she most likely go to for the loan? a. a commercial bank b. a credit union c. an investment group d. a savings and loan
a. a commercial bank
Kenneth entered into a contract to sell his home to Valerie, who put down a $5,000 earnest money deposit. At the last minute, Valerie backed out of the deal and Kenneth kept the earnest deposit. This is an example of ______. a. accepting liquidated damages b. accepting partial performance c. suing for damages d. suing for specific performance
a. accepting liquidated damages
Lorenzo just received a prestigious fellowship to study abroad for a year! However, he'd just signed a one-year lease on his apartment. With the landlord's permission, he substituted his sister's name on the lease, and Lorenzo's sister will pay rent directly to the landlord. Lorenzo may still be liable for the rent if she misses any payments. This is an example of ______. a. assignment b. assimilation c. subleasing d. transfer
a. assignment
In a real estate transaction, which of the following is established when the parties enter into an agreement voluntarily with full understanding of the contract terms? a. consent b. consideration c. legal competency d. legal purposes
a. consent
The Baxters are looking at a $425,000 home. They have $90,000 in savings to use as a down payment. What loan type(s) would likely be the best option for them? a. conventional b. fha c. fha, va, or conventional d. va
a. conventional
Real estate sales contracts must be valid, express, bilateral, ______, and executed or executory. a. enforceable b. oral c. unenforceable d. voidable
a. enforceable
Charlie, who owns and leases out a commercial building, pays taxes, maintenance, and insurance on the building. What type of lease agreement does Charlie have with his tenants? a. gross b. net c. percentage d. triple net
a. gross
What happens to the company license if the qualifying broker dies or becomes incapacitated? a. it becomes invalid b. it expires after 30 days c. it must be re-issued d. it remains active until september 30 of the following year
a. it becomes invalid
Which of the following is one benefit to business owners for leasing instead of buying real estate for their business? a. monthly rent is a tax deduction as a business expense b. rental rates can include annual escalations based on market conditions c. the landlord hold the right of reversion at lease end d. the tenant may have little or limited control over what the property owner decides to do
a. monthly rent is a tax deduction as a business expense
What's it called when a person who has possession of a property through a life estate abuses the property or allows it to deteriorate? Act of waste Escheat Estate at sufferance Reversionary interest
act of waste
All of the following are true regarding implied agreements EXCEPT which one? a. an implied agreement is based on actions or behaviors b. an implied agreement is based on a formal agreement c. with an implied agreement it is possible that the other party did not intend to be bound d. with an implied agreement there is an increased chance of confusion
b. an implied agreement is based on a formal agreement
As part of his lease agreement with his landlord, Alex mows the grass around his apartment building each week in return for a small reduction in rent. What is this an example of? a. condition b. covenant c. enjoyment d. promissory
b. covenant
Lydia put the minimum 3.5% down on her $210,000 home. She'll have to pay an MIP. What type of loan does Lydia have? a. conventional b. fha c. standard d. va
b. fha
Brittany has a small office in a professional building. She has a set monthly lease payment that has been calculated to include maintenance of the common areas in the building, such as the restroom and small kitchen, and all nets, utilities, and janitorial charges for her space. The payment also includes taxes and insurance. The landlord takes these payments and pays the individual expenses himself. What type of lease does Brittany have? a. graduated lease b. gross lease c. net lease d. percentage lease
b. gross lease
Which clause in a contract states that one or more parties won't be held liable if there are losses or expenses related to the contract? a. choice of law clause b. indemnification clause c. severability clause d. time of performance clause
b. indemnification clause
Jolene signs a contract to buy Harvey's home. Before closing, it's discovered that Jolene is only 16 years old. Because she's a minor, she's not considered legally competent to enter into a contract. Which of the parties can void the contract? a. harvey b. jolene c. nobody d. only a judge
b. jolene
A legally competent party means that an individual has the capacity, legally and ______, to enter into a contract. a. financially b. mentally c. morally d. purposefully
b. mentally
Jerry and Simon signed a contract so that Jerry could purchase all of Simon's restaurant equipment for one price after Simon closes his restaurant next month. The contract contains a provision that states Jerry has one year from the purchase date to file a suit relative to the purchase. After the year is up, Jerry forfeits the right. What kind of contract clause is this? a. specific time b. statute of limitations c. time is of the essence d. time or performance
b. statute of limitations
Walt and Ginger were informed by their landlord that their option to purchase the bungalow they're renting has just been terminated. Which of the following things that can occur is likely to terminate an option to purchase? a. ginger put up new curtains b. they sublet the bungalow for a month without permission c. they went on vacation and left the house empty for 12 days d. walt lost his job
b. they sublet the bungalow for a month without permission
Commander Halfback retires after 25 years of service in the Coast Guard. He is looking to buy a home. What type of loan should he use? a. conventional b. FHA c. FHA, VA, or conventional d. VA
c. FHA, VA, or conventional
After switching careers, Alice just graduated from culinary school and is looking to purchase a house. Until she gets her feet wet with her new job, she knows the cost of living with her mortgage is going to be tight. Which mortgage might help her manage her expenses each month? a. adjustable-rate b. amortized c. budget d. straight
c. budget
Farm families financing the purchase of properties in rural areas may be able to obtain financing through this government agency if they meet certain criteria, such as income requirements. a. department of veterans affairs b. environmental protection agency c. farm service agency d. federal housing authority
c. farm service agency
what's one benefit of a rural development loan? a. it doesn't have to be repaid b. it includes marketing assistance for farmers c. its optional longer term means a lower monthly payment d. its optional shorter term means a quicker payoff
c. its optional longer term means a lower monthly payment
Edna leased her house to Joan with a right of first refusal. Edna's cousin, who knows that she needs liquid assets, just offered her $250,000 for the house. What does Joan have to do if she wants to buy the house? a. get into a bidding war with Edna's cousin b. make an all-cash offer c. match the offer on the table d. offer more that $250,000
c. match the offer on the table
UETA supports the use of electronic documents and leaves the decision whether to use an electronic medium for agreements up to the _______. a. broker b. customers c. parties d. seller client
c. parties
What type of arrangement allows the buyer to retain title to the property but places a security interest in the property on behalf of the seller? a. a straight-term loan b. land contract c. purchase money mortgage d. wrap-around mortgage
c. purchase money mortgage
Rhonda and Jade both consider themselves to be African-American, although Rhonda has much darker skin and hair than Jade. When Rhonda went to the Valley Falls apartment manager's office to request a rental application, she was told there were no vacancies. Jade went in a day later and received an application. This may be discrimination based on _______. Color National origin Race Sex
color
Your neighbor hires a middle school student to mow his lawn every two weeks. He draws up a written contract in which he clearly outlines the student's mowing responsibilities and the payment the student will receive in return. Which of the following is true in this situation? a. Because a minor can't enter into a contract, the student's parents are legally obligated to uphold the student's obligation under the contract. b. Because a minor can't enter into a contract, this contract is void and the neighbor could be subject to legal action if the authorities were alerted. c. Because this contract binds the student to an obligation that's legal for a minor to perform (mowing lawns), the contract is valid and enforceable. d. If the neighbor and the student are content to uphold their agreement, the fact that it's not legally binding doesn't matter.
d. If the neighbor and the student are content to uphold their agreement, the fact that it's not legally binding doesn't matter.
Damien was representing a commercial property owner. Which one of the following duties can the owner expect Damien to perform on the property owner's behalf? a. Assist the owner in locating a property to lease. b. Collect the first month's rent from the tenant and hold it in a separate bank account for the owner. c. Explain potentially confusing lease clauses and determine the best monthly lease amount for the tenant. d. Locate and qualify potential tenants
d. Locate and qualify potential tenants.
What is the key difference between assignment and novation of a contract? a. Assignment releases the original party from all obligations, while novation does not. b. Individual contracts must specifically allow novation, but not assignment. c. Novation is disallowed in many states, while assignment is not. d. Novation releases the original party from all obligations, while assignment does not.
d. Novation releases the original party from all obligations, while assignment does not.
Julie is working with buyer clients and has prepared an estimated closing statement. Which of the following statements is true? a. She must provide it at least three days before closing. b. She must provide it the day of closing. c. She must provide it when an offer is accepted. d. She must provide it when an offer is signed.
d. She must provide it when an offer is signed.
Robin has great credit and was able to secure a loan for her ocean-side dream home. Her 30-year, fixed-rate loan is for an amount that's above conventional loan limits. What type of loan does Robin have? a. a conforming Freddie Mac loan b. a government loan c. an fha loan d. a non-conforming loan
d. a non-conforming loan
Malcolm loves his apartment, even though he's rarely there. His job in international development has him on the road for months at a time. He doesn't have to worry about missing out on his lease renewal, though, because he has _______. a. a freehold estate b. an estate at will c. an estate for years d. a periodic estate
d. a periodic estate
Which of these is an example of good consideration? a. a payment of less than 10000 b. a payment of more than 10000 c. earnest money paid with a cashier's check or wire transfer d. gifting a house to a family member
d. gifting a house to a family member
Margaret isn't ready to buy Jill's property, but she pays Jill a fee that guarantees she'll be notified if another buyer appears. If another buyer does make an offer, Margaret has the opportunity to purchase at the price and terms of the offer. Margaret has a(n) ______ on Jill's property. a. installment contract b. lease with an option to buy c. purchase and sale agreement d. right of first refusal
d. right of first refusal
Which type of lender specializes in taking in savings deposits and then lending money out to consumers through mortgages and other loans? a. credit union b. mortgage banker c. mortgage broker d. savings and loan
d. savings and loan
Gary leases a commercial building and pays all expenses related to the building, including taxes and insurance. Gary has a _______. a. gross lease b. net lease c. percentage lease d. sublease
d. sublease
In Alabama, who generally prepares the seller's estimated closing statement? a. The closing agent b. The lender c. The seller d. The seller's agent
d. the seller's agent
Both parties have to sign the agreement in order to demonstrate that ________. a. an attorney has reviewed the contract b. their agents have agreed to the terms and conditions c. the very first offer was accepted d. they understand the terms
d. they understand the terms
You receive an offer in the mail that says you're eligible to win a cash prize if you place some stickers on a form and return it to the sender. What type of contract is this? a. implied contract b. invalid contract c. unenforceable contract d. unilateral contract
d. unilateral contract
Sylvia, who's 15 years old, and her neighbor Marge, who's 24, agree that Sylvia will babysit Marge's toddler for the summer for $10 an hour. What type of contract is this? a. enforceable b. unilateral c. valid d. voidable
d. voidable
Manuel is selling his home to Selena. He has an existing loan that he'll continue to make payments on, and he's extending credit to Selena for the balance of the purchase price. She will make monthly payments to him. What type of financing are the parties using in this transaction? a. home equity loan b. loan amalgamation c. refinance d. wrap-around loan
d. wrap-around loan
Assigning a lower-density use zone to an area that previously allowed higher density and that may reduce property values is known as ______. Bulk zoning Density-reduction zoning Downzoning Reduction zoning
downzoning
Jericho and Cindy, an unmarried couple, have three children, ages 3, 5, and 12. A seller's broker refuses to show them a house in a neighborhood where residents tend to be older, and no one else has children. Which protected class status applies? Age status Familial status Marital status Partnership status
familial status
The Office of Fair Housing and Equal Opportunity is a part of which federal department? CIA HHS HUD NHA
hud