real estate exam study guide
A three year old property appraised for $105,000. If it depreciated an average of 10% per year, what was the original value of the property
$150,000 $105,000 represents 70% (10% averaged over the 3 years) of the original value. $105,000 / 70% = $150,000.
A licensee lists a 30 acre property for $10,000,000. The seller originally paid $5.50 per square foot for the property. How much per square foot has the property increased in value?
$2.15 30 acres X 43,560 sq. ft. per acre = 1,306,800 sq. ft. of land. 1,306,800 sq. ft. X $5.50 = $7,187,400 (original price of land). $10,000,000 (today`s price) - $7,187,400 (original price) = $2,812,600. $2,812,600 / 1,306,800 sq. ft. = $2.15 increase.
A house was listed for $127,000. An offer of $120,000 was made and accepted. The commission on the sale was 7% of which the salesperson received 40%. How much would the salesperson receive?
$3360 $120,000 (actual sale price) X 7% = $8,400 (total commission). $8,400 X 40% = $3,360 (salesperson`s share).
A property had a list price of $164,000, an actual sale price of $158,000 and a $124,000 loan. If the transfer fee was $3 per $1,000, what was the fee?
$474 $158,000 / $1,000 = 158 x $3 = $474 The transfer fee is based on sale price
What would the seller net if the property was sold for $650,000 with a 6.5% commission?
$607,750 $650,000 x 6.5% = $42,250. $650,000 - $42,250 = $607,750
A buyer purchased a property for $130,000 putting 20% down. The buyer also immediately took out a $10,000 home equity loan. Five years later, the home has a current value of $175,000 while the home equity loan is down to a balance of $4,500 and the first mortgage has a current balance of $98,000. What is the seller's equity in the property?
$72,500 $175,000 - $4,500 - $98,000 = $72,500
A buyer bought a property for $60,000 which had an appraisal of $58,000. If the lender charged 1 1/2 discount points, with the borrower receiving a 90% loan, how much were the points?
$783 A lender makes a loan on the lower of sale price or appraisal. Discount points are computed based upon the actual loan amount. In this case, the lower of the two figures is $58,000 x 90% = $52,200 for the loan x 1.5% = $783 for the discount points.
A seller received $75,000 at closing after paying a 6.5% commission. What would have been the sale price?
$80,214 $75,000 / 93.5% = $80,214 You can check your answer by taking the sale price of $80,214 x 6.5% = $5,214 in commission. Price of $80,214 less commission of $5,214 = $75,000 net.
A property with a value of $73,500 had a loan of $72,500. If the mill rate was 1 1/2, what were the monthly taxes?
$9.19 $73,500 x .15% = $110.25 for yearly taxes / 12 months = $9.19 per month
Mortgage Brokers, Lenders, and Servicers Licensing Act applies to:
1-4 family dwellings
Which of the following elements must be in a contract to have a valid contract?
A clear description of the land The land must be clearly described in order for the contract to be valid.
Which of the following would be a violation of the Sherman Anti-Trust Laws?
A group of brokers setting a common commission rate A group of brokers cannot set a common commission rate.
Which of the following loans would fall under the three-day right of rescission allowed under Regulation Z?
A home improvement loan for a principal residence there is a 3 day right of rescission on home improvement loans. There is NOT a right of rescission for residential first mortgages, commercial loans, or agricultural loans.
A purchase agreement was accepted with earnest money given as part of the contract. The broker deposited the earnest money in the broker's escrow account. How would the earnest money appear on the closing statement?
Credit buyer, no entry for seller The earnest money is a credit to the buyer only and does not appear on the seller`s statement. The seller gets credited for the full sale price of the property. This credit to the buyer simply shows the buyer receives the earnest money and is applying this amount to the purchase price.
If you have a listing agreement that has expired, what would you do?
Have the owners sign a new listing agreement A new listing agreement must be signed as automatic renewals are not allowed.
Which is usually closest to market value?
Purchase price The purchase price is usually close to market value because buyers are who determine both the price and market value.
A property manager is contemplating renting a space to a tenant with a mental disability. The manager is worried about this tenant posing a threat to the other tenants in the building. Under federal guidelines, what should the property manager do?
Inform the property owner if the manager suspects any problems As a person with a mental impairment is a protected class under federal fair housing laws, the manager should not discriminate but let the owner know of any possible problems posed to the other tenants.
What best describes a term loan?
Interest only In a term loan, the borrower keeps the principal amount of the loan for the entire term; thus paying interest only during the term of the loan and paying the loan off in a balloon payment at the end. In a reverse annuity mortgage the lender pays monthly payments to an owner (usually older) and then is repaid at some future date . In an amortized loan, the borrower pays both the interest and the principal during the term of the loan.
An offer to purchase contract has been presented to a seller. Which of the following statements is true regarding the offer?
It could be withdrawn anytime prior to conveyance of an acceptance or rejection An offer or counteroffer can be withdrawn up until acceptance and communication back of the acceptance.
What is the purpose of earnest money being part of a real estate contract?
It establishes the intent of the buyer to carry out the contract Earnest money is considered to be good faith money showing sincerity on the part of the buyer.
If you were selling mortgage notes to the public for a profit, you might have to comply with all the following EXCEPT Michigan Uniform Securities Act Michigan Due On Sale Clause Act Mortgage Brokers, Lenders, and Servicers Licensing Act Michigan Consumer Protection Act
Michigan Due On Sale Clause Act The due-on-sale clause in a mortgage calls the loan due and payable upon selling the property, thereby making the loan non-assumable.
A salesperson received an offer on a house. While preparing to present the offer, another offer on the same house came into the office. Which of the following statements BEST describes what the salesperson should do?
Present both offers at the same time The owner has the right to know about all existing offers before making a decision on any one particular offer.
What is used to describe the right of the lessor to reclaim a property once a lease expires?
Reversion The difference between reversion and redemption: The right of an owner to get a property back when someone else's rights expire is called "reversion." Redemption is an owner's right to buy a property back after foreclosure.
Who oversees and administers the provisions of the Real Estate Settlement Procedures Act (RESPA)?
The Consumer Financial Protection Bureau (CFPB) replaced Housing and Urban Development (HUD) for overseeing the RESPA guidelines
Who conducts the informal conference?
The Department conducts an informal conference
Which approach to value is best to use in estimating the value of vacant land? Income approach Cost approach Sales comparison approach Rent approach
Sales comparison approach
Which of the following statements are true for salesperson Sally Brown to be considered an independent contractor?
Sally must have a written contract with her broker that indicates that she is responsible for her own taxes, and her annual compensation from her broker must be at least 75% from commissions from the sale of real estate To be an independent contractor there must be a written agreement showing the salesperson will pay her own taxes and 75% or more of income comes from commissions.
When a contract is signed between a buyer and a seller, the buyer is known to have received equitable title upon the happening of which of the following events?
Signing of the agreement by the buyer and seller Equitable title is the right to get title in the future. So, when the buyer and seller sign the contract, the buyer has the right to get title at closing.
Why should a listing agent be aware of all the ownership documents that will be used in a real estate transaction?
So the agent can know which documents the seller and buyer will have to sign to complete the transaction the listing agent is responsible for closing, so it is important that the listing agent knows which documents need signing to complete the transaction.
Which of the following statements would be the BEST example of puffing?
Telling a buyer this home has the most beautiful view overlooking the lake Puffing is a subjective opinion - the most beautiful view statement would be an opinion
A corporation who purchased a piece of real estate as a co-owner with an individual would usually take title in which of the following manners?
Tenancy in common A corporation owns property individually in "severalty." However, when buying along with an individual, they would be tenants in common.
With regards to water rights and prior appropriation concepts, which of the following terms might be applicable?
Avulsion an avulsion is a sudden change in a river or stream where the property boundaries do not change.
How does a buyer become a client of a broker?
By signing an agency agreement with a broker
Which of the following would transfer legal use but not ownership of a property?
Which of the following would transfer legal use but not ownership of a property?
All of the following statements are true regarding licenses EXCEPT:
a principal broker's license is transferable
A person may depreciate property for tax purposes when the property is:
a rental property held for investment Only investment property (rentals) can be depreciated for tax purposes.
Michigan's Due On Sale Act:
allows banks to enforce the Due On Sale clause if contained in the mortgage agreement
When a change is needed in a contract, the best way to accomplish this would be with a(n):
amendment
An easement giving a person the right of ingress and egress would be BEST classified as an:
appurtenance An "appurtenant" easement gives a neighboring property owner the right to go in and out (ingress and egress).
The definition of a wetland is:
areas in which wetland vegetation can be sustained
All of the following would be included as the Department's duties EXCEPT:
assessing criminal prosecution for violations of the occupational code Only the court can assess criminal prosecution, not the Department.
The Board's duties would include:
assessing penalties after a hearing
A broker's license may:
be suspended for paying a commission to a non-resident broker only licensed in another state if that non-resident broker is negotiating a sale in the state of Michigan A non-resident broker only licensed in another state would need a Michigan license to receive compensation if the non-resident broker is negotiating a real estate transaction in Michigan.
A listing broker, in an effort to obtain a listing, tells a property owner that the owner's home is located in a racially changing neighborhood. This is:
blockbusting Blockbusting is trying to scare owners into selling by saying persons of a protected class are moving into the neighborhood.
A buyer writes a contract with a contingency that says if a certain thing does NOT happen, the buyer does NOT have to purchase the property. The contract does not close due to this contingency. Normally, any earnest money should be given to the:
buyer If a contingency agreed to by all parties is not met, then normally any earnest money will be returned to the buyer, not the seller, broker, or state.
All of the following statements would be true with regard to the sellers disclosure statement EXCEPT:
buyers always have a 72 hour rescission period after receipt The 72 hour rescission only applies if the disclosure is made after execution of a binding purchase agreement and only if disclosure was delivered to prospective transferee in person.
An expression of disapproval of a licensee's professional conduct, which conduct is not necessarily a violation of this act or a rule promulgated or an order issued under this act would describe a(n):
censure Censure is when a licensee has not necessarily violated any law but when the licensee's conduct meets with disapproval.
A buyer made an offer on a property a broker had listed. The broker presented the offer to the seller. While the seller was still considering the offer, the buyer contacted and informed the broker that the buyer wanted to withdraw the offer. The broker should:
continue to market the property for the seller An offer can always be withdrawn up until acceptance; therefore, the broker will continue to market the property for other possible buyers
A developer would like to restrict the usage of the land in a particular development. He would do this through a:
covenant in the deed A deed covenant or deed restriction is used by private parties to restrict certain land uses, such as certain types of fences.
An assumed loan in a real estate transaction would appear on the closing statement as a:
debit to the seller, credit to the buyer The seller still owes on the loan - hence the debit to the seller; the buyer receives the loan money to help buy the property - hence the credit to the buyer.
A property that contains asbestos insulation wrapped around pipes would be best remedied by:
encapsulation The best way to solve pipes wrapped with asbestos (which may be a health hazard) is to encapsulate, i.e., seal or enclose the insulation.
A seller lists a property with one broker but reserves the right to sell it herself without paying a commission. This is an example of a(n):
exclusive agency listing An exclusive agency listing authorized one broker and the seller to sell and earn or save the commission money.
A listing broker involved at the consummation of a real estate or business opportunity transaction shall:
furnish or cause to furnish the buyer and seller a complete and detailed closing statement signed by the broker showing the receipts and disbursements in the transaction A broker involved in the closing of a real estate transaction must furnish to buyer and seller a complete and detailed closing statement.
A listing agent presents a contingency offer from a buyer to the seller. The offer contains language that says if the seller accepts the offer, the buyer will put their own home on the market within 24 hours. This is:
good for the seller as this would expose the buyer's property on the market within a short time frame Putting the buyer`s home on the market immediately protects the seller by trying to get the buyer's property sold as soon as possible. If the buyer's property is sold soon, then the buyer can go ahead and purchase the seller's property.
The reason a lender charges discount points is to:
increase the effective yield to the lender Discount points do increase the effective yield to the lender in that the loan is more valuable with discount points included.
All of the following is true of a branch office EXCEPT:
it may maintain its own trust account with a minimum of $500 of the broker's personal funds
In order for a deed to be valid, there must be a:
legal or complete description of the property
The penalty for usury in Michigan would be:
loss of all interest over the life of the loan
A person who has had a limitation placed on a license:
may, within 30 days after the limitation is placed on the license, petition the department for a review of the decision to placed the limitation
In advertising for prospects, all of the following terms could be used EXCEPT: political party affiliation military personnel upper bracket buyers national origin
national origin "National origin" is a protected class under fair housing and is illegal to be used in advertising.
If a lender does not want to weaken the security of a property if taxes are unpaid, the lender should:
require the prepaid tax money paid by the owner be put into a lender's escrow or impound account Requiring the buyer to pay the tax money into an escrow account assures the lender of having enough money to pay the taxes each year.
A person owned a property next to a stream. The owner's rights to use the stream are referred to as:
riparian Riparian is land bordering a "flowing" waterway. It literally means "river bank.
An associate broker license:
s suspended automatically when that active officer or active member ceases to be connected with the firm
An agent is working with a married couple in the purchase of a home. The couple asks the agent how they should take title to the property. The agent should say:
see an attorney Any issue about how to take title should be referred to an attorney.
The Enforcement Division under the Michigan Uniform Securities Act:
seeks out and corrects violations
After an investigation, the Department does not find any violation against a licensee. At this point, the Department:
shall close the complaint against the licensee
At the conclusion of a hearing regarding a complaint against a licensee, an administrative law hearings examiner:
shall submit a determination of findings of fact to the appropriate board and may recommend penalties to be assessed
In the process of preparing to present an offer to the seller, a broker receives another offer. The broker:
should present both offers together
A sales contract must be in writing to be enforceable due to the:
statute of frauds The Statute of Frauds says that to be enforceable all real estate sales contracts, deeds, and leases over one year must be in writing.
The unlawful practice to treat racial minorities differently with respect to promotion, advertising, or showing houses is called:
steering Steering is treating minorities differently in showing houses, such as showing minorities houses only in minority neighborhoods.
Under the Construction Lien Act, the type of improvement covered would include labor provided by:
subcontractor
A licensee who fails to renew the license timely may be relicensed without examination if all of the following apply EXCEPT:
the person must supply 3 letters of recommendation from business associates from within the real estate industry Letters of recommendation are not required to be relicensed. What is required would be applying within 3 years after expiration, paying appropriate fees, and submitting proof of 1 year of continuing education.
T gave a neighbor the right to cross over T's property. T's property would be referred to as:
the servient tenement Land that is burdened by an easement (has an easement crossing it) is called the servient tenement,The dominant tenement is the land in favor of the easement (T's neighbor)
the geodetic survey system
uses benchmarks to describe land.
The lot and block system
uses lot numbers and block numbers recorded on a plat map.
the rectangular survey system
uses meridians, townships and sections
A contract where one or more of the parties can rescind is called:
voidable
What document would be a condensed history of all records that affect the title?
An abstract An abstract is a history of all recorded documents that affect the title.
A sales contract is accepted by both parties with earnest money being involved in the transaction. What should the broker do with the earnest money?
Deposit it into an escrow account immediately
What is it called when a person takes the cost of purchase and then recaptures this amount?
Depreciation Another word for tax depreciation is to recapture the cost of purchase over a certain time period allowed by IRS regulations.
A buyer was considering purchasing a new home that the listing broker was aware had been built on a toxic waste dump. What duty does the listing broker owe to the buyer?
Disclosure
Which of the following might be a penalty under the State Anti-Trust Act?
Treble damages or 2 years imprisonment
The right of the government to keep things in order and provide for the health, safety and welfare of the general public is called:
police power
An escrow or impound account for the lender is for holding:
prepaid taxes and insurance A lender`s escrow account is for holding prepaid taxes and insurance. When the time of year comes for the taxes and insurance to be paid, the lender pays the money out of escrow on behalf of the borrower.
Water rights are generally covered under federal guidelines. Some states cover water rights under riparian and littoral laws. In the absence of specific guidelines, water rights are generally governed by:
prior appropriation Prior appropriation is a water law that says first in time is first in rights; the owner has an exclusive right to divert water for specific uses.
Michigan Environmental Protection Act provides for:
private lawsuits and "public rights" actionable in court
How much of a grace period would you have to renew your license without applying for relicensure to the Michigan Department of Licensing and Regulatory Affairs (LARA)?
60 days from date of expiration
A buyer was considering purchasing a house that contained 1,500 square feet. Based on the comparable houses that had sold in the area, houses were selling for $70 per square foot. The agent told the buyer, however, that the house needed painting which would cost $3,000 and new shingles which would cost $5,000. What price should the buyer offer for the house?
97,000 1,500 square feet times $70 per square foot equals $105,000. $105,000 minus the $3,000 for the painting and the $5,000 for the shingles means the buyer would offer $97,000.
What is the minimum amount of time that a broker shall keep trust account records?
A broker must keep all records for 3 years.
Which of the following would be the BEST example of a buffer zone?
A park between a high-rise apartment building and an industrial area A buffer zone is primarily to separate residential property from commercial property; therefore, a park between an apartment and industrial use is the best answer.
What would have to comply with Michigan's Land Sales Act?
A person acquiring 30 acres, who plans to create 18 parcels today, and 17 more parcels in the future that will have a golf course that the owners can join The Michigan Land Sales or Land Division Act deals with persons subdividing land. It does not deal with lots for construction, buying a duplex , or lots used to create campground sites.
Under the Federal Fair Housing Law, which of the following items qualifies as a handicap?
A person who is mentally or physically handicapped
Which of the following would be considered functional obsolescence
A poor lay-out design Functional obsolescence refers to factors INSIDE the property lines that lower the value that are not related to physical deterioration.
Michigan's County transfer tax would be charged on which of the following transfers of real estate?
A real estate gift for consideration of $100 The Michigan county transfer tax applies to transfer of real estate of $100 or more.
Which of the following liens would take priority getting paid off at a foreclosure sale?
A real estate tax lien Real estate taxes always take priority getting paid off at a foreclosure sale.
CERCLA would normally apply to which of the following situations?
A residential property with a buried oil tank CERCLA (Comprehensive Environmental Response, Compensation and Liability Act) deals with prohibiting of dumping hazardous waste on property, such as a buried oil tank.
Which of the following would be an example of an impossibility of performance regarding a sales contract?
A seller had signed the contract without the consent and knowledge of the other owners who were joint tenants A joint owner who signs a sales contract without the consent of the other owners has no legal authority to do so - this would be never be valid and therefore would be impossible to perform.
Under the federal fair housing laws, which of the following phrases would be illegal in advertising? Midtown property Seniors only Wheelchair accessible Adult building
Adult building Advertising adult building would be a violation of familial status (children under 18) - this is the equivalent of saying no children.
XYZ listed a property for sale and put the listing in the multiple listing service (MLS). ABC, working with a prospective buyer, cooperated through the MLS and showed the property. What is true?
ABC is a subagent of XYZ ABC (selling agent) is working as a subagent for XYZ (listing agent) and the seller.
Which of the following terms BEST describes the practice of encouraging owners to move from an area due to minorities moving in making the neighborhood more integrated?
Blockbusting Steering is directing buyers to areas based on their ethnicity. Redlining is refusing to make loans based on the ethnicity of the area. Puffing is a subjective opinion (exaggeration).
Who does a salesperson owe loyalty to?
Broker The salesperson owes loyalty to the broker. The salesperson would then be operating as a sub-agent of either the seller or buyer, depending on which the broker is representing.
A licensee shall not accept directly or indirectly a placement fee, commission, or other valuable consideration for placing a loan with a mortgage lender or representative unless the licensee fully informs which of the following of the fact and obtains prior written consent?
Buyer and seller The licensee must obtain prior written consent of both buyer and seller to receive consideration for placing a loan.
How would prepaid taxes, with a midyear closing, show up on a closing statement?
Debit buyer, credit seller Since the seller has pre-paid taxes for the year and we have a mid-year closing, the buyer will owe the seller for the buyer`s fair share - hence we debit the buyer and credit the seller.
Which instrument indicates involuntary alienation?
Deed in foreclosure Involuntary alienation means to transfer something without an owner's consent. A deed in foreclosure is used when a borrower deeds the property to the lender in order to avoid being foreclosed upon.
A builder owns a large piece of property. The builder decides to turn the property into a subdivision of homes but decides to keep the lake frontage on all the lots for himself. What would a buyer of one of the lots prefer to have?
Easement appurtenance An appurtenant easement would give the buyer access to the lake, thereby making the property more valuable.
Which of the following duties BEST describes the duty of a property manager to the owner?
Fiduciary A property manager is generally considered to be a general agent for the owner, thus owing the owner fiduciary responsibility
A mortgagee foreclosed but the sale did not produce enough to pay all debts. Which of the following is the MOST likely course of action for the mortgagee to take?
File for a judgment lien against the borrower The proceeds from the foreclosure sale are used to pay off the note (as far as the money goes). If there is still a portion of debt remaining, the lender can ask a judge for a personal judgment against the borrower for the rest. The lender can then ask that other property of the debtor be seized.
If a salesperson showed several houses to a buyer and told the buyer one home in particular was the best buy, what type of agency might have been created?
Implied By telling a buyer that a property is better, the agent may have "implied" to the buyer that the agent was working for the buyer.
Which of the following statement is true of a salesperson's license?
It shall be kept in the custody and control of the broker to whom the salesperson is licensed under
In the cost approach to value, which of the following would LEAST affect depreciation?
Land value going down Land value going down does not affect depreciation as land never depreciates.
Which of the following acts would be permitted under the 1968 Federal Fair Housing Act?
Not renting a house to someone because they have a poor credit history
If someone were to ask you what rate of commission your company charges, an appropriate answer might be:
Our office typically charges a 5% commission rate.
Which of the following transactions is EXEMPT from the requirements of the Federal Fair Housing Act?
Owner renting one room in an owner occupied residence An owner renting units in up to a 4-plex, when occupied by the owner, is exempt under fair housing.
What does a person have who can sign legal papers for another person?
Power of attorney Power of attorney is what a person "has" who can sign legal documents for another person and is called an attorney in fact
What does a standard title insurance policy cover?
Recorded title defects and liens
An agent, in trying to obtain a listing from a seller, notices that there are water stains on the ceiling. The seller tells the agent NOT to disclose to anyone about the water stains. What should the agent do?
Refuse to take the listing An agent must disclose all material facts about a property. If the seller refuses to disclose, the agent should decline the listing.
Which of the following activities would be a violation under Michigan state law (also known as Occupational Code or Act 299)?
Representing or attempting to represent a real estate broker other than the employer, without the express knowledge and consent of the employer, which is prohibited conduct
A buyer and seller negotiated a sale whereby the seller was to include all the kitchen appliances. Upon moving in, the buyer discovered that the seller had taken all the kitchen appliances. What would be the buyer's best remedy?
Sue the seller for specific performance Specific performance is court action to force completion of a contract.
Which of the following is true regarding a broker performing property management duties?
The broker must maintain property management accounts that are separate from all other accounts The property management accounts must be kept separate from other accounts.
An offer to purchase contract was contingent upon the buyer receiving a loan. The buyer was not able to obtain financing. The buyer informed both the seller and the broker of the loan denial. Which of the following statements is true?
The broker must return the earnest money to the buyer If a mortgage contingency clause is part of a contract, then the earnest money should be returned to the buyer if the buyer cannot qualify for a loan.
Which of the following would be true regarding trust or escrow accounts?
The broker shall keep records of funds in these accounts, which the records shall indicate clearly the date and from whom the money was received, the date deposited, the date of withdrawal, and other pertinent information concerning the transaction
The broker's license and all salespersons' and associate brokers' licenses must be displayed:
The licenses must be displayed in a conspicuous place in the office that is obvious to the public.
The principle of progression in the selling of a property would be best illustrated when the other homes in the neighborhood:
The principle of progression states that a property would increase in value being around better properties.
Which of the following statements would be true of a partially amortized loan?
There are generally smaller monthly payments
A local multiple listing service (MLS) passed a rule saying that any broker who charges less than 4% commission in a minority area cannot belong to the MLS. Which of the following statements would be true?
This is illegal as this violated price fixing laws under the Sherman Anti-Trust laws
What is the purpose of the Michigan State Housing Development Authority?
To address the housing needs of Michigan's low to moderate income citizens The purpose of the Michigan State Housing Development Authority is to provide financial and technical assistance to create and preserve safe and decent affordable housing for low to moderate income citizens.
What is the purpose of zoning regulations?
To implement the master land plan The master land plan is a plan for a cities future growth. The master land plan lays out areas for residential, commercial, etc., which is why there are zoning regulations to make sure this comes to reality.
What type of interest does the buyer receive in the property after the seller accepts the offer?
When the offer is accepted by the seller, the buyer has the right to receive title at closing. This right to get title in the future is called "equitable title."
Asbestos
a fire resistant.
A legal description that uses directions, distances and monuments is called:
a metes and bounds description A metes and bounds description gives a physical description of the property could can include directions, distances and monuments.
A broker's supervision duties shall include all of the following EXCEPT:
a minimum of weekly sales meetings for all licensees Having sales meetings are not required by law. A supervising broker does have to have direct communication with licensees on a regular basis, review actions of licensed agents, and have a written operating policies and procedures manual.
If a licensee has violated the law, the Department may issue a citation to the licensee containing all of the following EXCEPT:
a notice that the respondent licensee has 6 months to accept or reject the citation
The Elliot-Larsen Civil Rights Act would consider which of the following to be a discriminatory act?
o deny a married couple housing in a 3 family structure Marital status is a protected class under the Elliot-Larsen Civil Rights Act.
S owns a property and lists the property for sale with a broker. The broker finds a buyer who makes an offer on the property. S is considered to be the:
offeree Since "S" is the "receiver" of the offer, S is the "offeree." An "offeror" is the person making the offer. The grantor is the person signing the deed (seller) which S may become at some future date if the offer is accepted. The grantee is the person who receives the deed (buyer).
A broker talks to a seller about listing the property for sale. The seller won't list just with this one broker, but tells the broker that if he finds a buyer for the property, the seller will pay a commission. This would be a(n):
open listing Under an open listing, only the one who produces the buyer and sells the property gets paid a commission.
A good example of a unilateral contract would be a(n):
option contract An option contract is a one way promise and is therefore a unilateral contract.
The most usual way for a broker to receive commission is to have the seller pay as a:
percentage of the selling price
A buyer purchases three properties. After the buyer combines all three properties, the entire parcel is now more valuable than before. This is called:
plottage Plottage or assemblage is where combining properties together results in more value for all the properties than if being left separated.