Incorrect answers RE CE 2

What are the two categories of comparison when evaluating comparables to a subject property in the market comparison approach?

...Elements and units...There are two categories of comparison: elements, which look at physical and locational characteristics, and units, which look at the numbers.

How many hours of continuing education are licensees required to complete during each two-year license renewal period?

12

What, when signed by all parties to a sales contract, changes the original terms of the contract ?

Amendment.....When added, an amendment changes the original terms of the sales contract. This is unlike an addendum, which may be added without changing other terms already agreed to in the sales contract.

When banks have lots of funds available for lending, what tends to happen to interest rates?

Rates decrease....Generally, interest rates fall when there are excess funds available for lending. This entices consumers to borrow money by making it cheaper to borrow.

Massachusetts regulates the ______ of lead-based paint.

Disclosure, remediation techniques, and remediation locations... Massachusetts regulations impact the disclosure of lead-based paint hazards, the areas in a home that must be remediated, and the techniques for abatement (removal or encapsulation).

You represent a seller as a single agent. What's it called when you're simultaneously working for the buyer's best interests in the transaction without the seller's knowledge?

Dual agency...Working for two parties in the same transaction is dual agency, and in this case, it's undisclosed (and illegal) dual agency.

Which liens take priority over all other liens?

Property tax

Which of the following is an example of single agency?

Randolph from ABC Realty represents Cindy, a buyer for Carol's listing. Carol is affiliated with Net Realty.

Licensees who provide services to find Massachusetts rental properties are required to provide a(n) ________ at the first meeting with a prospective tenant.

Rental fee disclosure... Massachusetts requires licensees who provide rental property services to provide a rental fee disclosure statement to all prospective tenants at their first meeting.

The purpose of the Truth in Lending Act (TILA) is to ______.

Require lenders to make disclosures that allow consumers to compare the costs of making a purchase using credit from different lenders, and to compare those with the cost of using cash.... The Truth in Lending Act requires lenders to provide credit applicants with disclosures that allow credit offer comparisons.

Massachusetts requires you to disclose your licensed status to the other parties for which of the following transactions?

You're representing your daughter, who's selling her home... Massachusetts requires you to disclose your licensed status to other parties when you have a personal interest in the transaction (e.g., you're representing a family member). None of the other options create a potential conflict of interest for you.

What's a marketable title?

What's a marketable title?

Under which of the following conditions is it unacceptable to disclose confidential information?

When you are disclosing the information after your agency relationship with the client has ended... Even after a fiduciary relationship ends, you're obligated to preserve the former client's confidential information.

Your client would like to purchase a property that's subject to an existing lease agreement and includes the tenant's right to renew the lease. What's your client's obligation, if any, to uphold this term of the lease agreement?

Your client must honor that right and allow the tenant to renew at the end of the term.

Which one of the following terms is defined as the transfer of property given to another without consideration?

Deed of gift...A deed of gift is the transfer of property to another without consideration.

Loans available through the Farm Service Agency have which of the following characteristics?

Loan terms may be as long as 38 years....The Farm Service Agency has loans for both rural and farm properties. Loan terms may be as long as 33 or 38 years, depending on the borrower's income.

If you discovered that your neighbor's house was sold with the assistance of an unlicensed individual, how would you report that violation of license law?

Make a written, signed complaint to the Massachusetts real estate board.

Adella received money for her down payment in the form of a tax credit for a portion of the mortgage interest paid per year on her federal tax return. This tax credit is known as a __________________________.

Mortgage credit certificate

Remembering the acronym PITI can help borrowers recall what makes up their ______.

Mortgage payment

Mixing escrow funds with personal funds is illegal and called ______.

Commingling

What is a general lien?

A claim against a person and all of that person's property.....Claims against a person and all of that person's property are called general liens. They're involuntary liens.

Which of the following is true about condominium ownership?

A condo is a single-family dwelling.

According to the Massachusetts standards of real estate practice, what is a licensee's role relative to legal advice?

A licensee must not discourage clients or customers from seeking legal advice.

What do shares in a co-op confer to shareholders?

A proprietary lease to possess their unit, use the property, and share in the amenities....Co-op shareholders don't own any real estate; they own shares in the corporation. Those shares come with a proprietary lease to use the property, to possess their unit, and to share in the amenities. The shares are personal property, just like a share in any corporation would be.

What's a contract clause?

A section of a contract covering a specific topic...A contract clause is a section or provision within a contract that addresses one aspect of the agreement between the parties.

You're obligated to preserve all the confidential information you receive from a seller client. This obligation ______.

Continues even after your fiduciary relationship with the client ends.

Which stage of the property ownership life cycle can be affected by income tax issues?

Acquisition, ownership, and reversion can all be affected by income tax issues.

Which term involving trespassing is used when someone other than the owner claims title to real property?

Adverse possession

How are openings on the Massachusetts Board of Registration of Real Estate Brokers and Salespersons filled?

Appointment by the governor

When assigning a contract, what should the assignor ensure is permitted in the purchase contract?

Assignability

Appraiser Niles uses ______ to determine a range of values based on comparing a subject property to comparable sales. He makes sure to use some comparables that lack features of his subject property, and others that have even more desirable features, to balance out the comparison.

Bracketing...Bracketing determines a probable range of property values by comparing a group of comparable sales to the subject. The appraiser attempts to include both superior and inferior units of comparison, such as age and transaction price.

Rhonda is interested in putting money toward a timeshare estate, which would allow her to use a condominium for two weeks each year. Timeshare estates ______.

Can be sold or passed down to heirs

Dual agent Barbara Park can only disclose Seller Carrie's reason for moving if:

Carrie gives her written permission to do so.

Which type of REIT receives most of its revenue from rental of its properties?

Equity REIT...Equity REITs invest in a wide range of property types and receive most of their revenue from rents derived from those properties.

General Law 151B, Section 4, regulates ______ in Massachusetts.

Fair housing

The Emery family, along with 20 other families, purchased a timeshare estate that will enable them to share a condominium in a resort community. A timeshare estate involves a ______ type of ownership.

Fee simple

Members of the Massachusetts Board of Registration of Real Estate Brokers and Salespersons serve _________-year terms.

Five...Members of the Massachusetts Board of Registration of Real Estate Brokers and Salespersons are appointed to five-year terms.

Property ownership for an indeterminable length of time is an example of what form of estate?

Freehold

What is the purpose of a deed?

It's used to transfer real property from one party to another.

Licensee Juan failed to provide an agency disclosure to consumer Carla. Which of the following is true of this situation?

Juan violated license law, and the board of registration may suspend or revoke his license. If a licensee fails to provide the agency disclosure as required, this constitutes a violation of license law and may result in disciplinary action against the licensee.

The earth's surface, extending downward to the center of the earth and upward to infinity, including permanently-attached natural objects, is called ______.

Land.... Land is defined as the earth's surface, extending from the center of the earth and upward to infinity. This term includes permanently attached natural objects (think trees and mor

Which document from the National Association of REALTORS® encourages its members to use the Golden Rule in their real estate practice?

NAR Code of Ethics

In which of the following situations would an agent be representing a customer in a real estate purchase?

Never....A real estate agent may only represent a client, not a customer. Agency involves an agency agreement. Customers are owed certain duties, but agency is not one of them.

What's the difference between an exclusive right-to-sell and an exclusive agency agreement

No commission is earned if the seller locates the buyer with exclusive agency.

An organization with many investors who jointly participate in a real estate investment and must adhere to the rules and regulations of the Securities and Exchange Commission is a ______.

Syndicate

Massachusetts environmental protection laws include ______.

The Ocean Sanctuaries Act ...The Ocean Sanctuaries Act is Massachusetts law. The Coastal Zone Management Act and Wild and Scenic Rivers Acts are federal laws, but they're supported by other Massachusetts laws.

The cost approach to finding an appraised value measures ______.

The cost to acquire land and construct a reproduction

What is a capitalization rate?

The expected rate of return on investment

What happens to a joint tenant's share of property when the joint tenant dies?

The joint tenant's interest goes to the remaining joint tenants. If only one joint tenant is left, that joint tenant owns the property in severalty.

If you're in a caveat emptor state, which statement about property condition disclosures is true?

The seller isn't obligated to proactively disclose property defects....In caveat emptor states, while sellers can't lie outright or actively conceal a problem—and must honestly answer prospective buyers' questions when asked—they aren't obligated to point out the home's flaws or defects to buyers.

Licensee Nick presented a copy of the agency disclosure form to consumer Angela. For how long must Nick's brokerage maintain this disclosure?

Three years

What duties does a buyer agent have to the seller?

To disclose the agent's relationship with the buyer...The only duty the buyer's agent has to the seller (besides honesty, fairness, and disclosure of material facts) is to disclose the agency relationship with the seller.

Charles is selling his home to Sheila. Charles has an existing loan that he will continue to make payments on. Charles is also extending credit to Sheila for the balance of the purchase price. Sheila will make monthly payments to Charles. What type of financing is used in this transaction?

Wrap-around loan

When you refuse to screen prospective buyers based on their ethnicity, your client, Matt, "fires" you as his agent, and you agree to his decision to part ways. Do you still owe this guy any fiduciary duties?

Yes, you still owe him the duty of confidentiality..... Whether it's "Sorry to see you go!" or "Good riddance," saying goodbye to a client doesn't mean you can share any confidential information you learned about him during your agency relationship.

Which one of the following best describes the fiduciary duty of confidentiality?

You must not share your client's confidential information.