National practice exam #2
A buyer has a 15-year, $250,000 loan with a 5.5% interest rate. How much of the first monthly payment is interest? A. $1,145.83 B. $13,750.28 C. $1,388.89 D. $916.67
A. $1,145.83
The Simpsons are buying the Martins' house for $415,000, and closing is set for March 15. The Martins have a loan balance of $230,000 at a rate of 4.7% and have prepaid property taxes ($2,506) and insurance ($1,400), and they also have mortgage interest to consider. Using a 365-day proration method, calculate the prorated amount the Simpsons will owe the Martins at closing. Assume February has 28 days this year. The sellers own the day of closing. A. $1,997.62 B. $3,113.46 C. $604.95 D. $792.54
A. $1,997.62
A property has a market rental income potential of $20,000 per month. The vacancy and loss rate is 5%. Operating expenses are expected to be 45% of the property's total income potential. The owner's monthly mortgage payment is $5,000. What is the annual net operating income that would be reported on the operating budget? A. $120,000 B. $132,000 C. $228,000 D. $240,000
A. $120,000
Hamish makes an offer on a loft in the city for $424,900 with a 10% earnest money deposit. The seller agrees, so Hamish secures an 80% loan. He needs to set aside funds for the mortgage tax as part of his closing costs. The rate in his area is $0.115 per $100. Calculate the mortgage tax Hamish will pay. A. $390.91 B. $439.77 C. $488.64 D. $97.73
A. $390.91
As part of its penalty for violating antitrust law, Homes4Cheap, Inc. has been ordered to undergo court-ordered supervision. How long can this supervision last? A. 10 years B. One month C. One week D. One year
A. 10 years
Which statement best describes an adjustable rate mortgage? A. A loan with a rate that fluctuates based on the economic index to which it is tied B. Debt that is paid off by making periodic payments mostly consisting of interest and principal C. Mortgage where only interest is paid until the end of the term, when the principal is paid D. This is a fixed-rate mortgage where the monthly payments increase over time according to a set schedule
A. A loan with a rate that fluctuates based on the economic index to which it is tied
Your seller clients have received an offer, and the buyer has included a pre-approval letter. Your clients are a little confused and think a pre-qualification letter is necessary. What's true regarding pre-approval and pre-qualification? A. A pre-approval letter comes with lender verification of buyer-provided data and provides more assurance to the seller. B. A pre-approval letter is based on buyer-provided information that isn't verified. C. Sellers should always insist on a pre-qualification over a pre-approval. D. The pre-qualification takes the buyer's complete financial picture into account.
A. A pre-approval letter comes with lender verification of buyer-provided data and provides more assurance to the seller.
Eric didn't have direct access to the small lake in his subdivision; he had an easement arranged with his neighbor. Ten months ago, the developer built a public access road to the lake, so Eric stopped using the easement. What type of easement termination is this? A. Abandonment B. Express C. Merger D. Necessity
A. Abandonment
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
Grace found herself in a breach of contract situation where the other party met some of the terms but not others. Grace thought it would cost a lot of time and money to sue, so she decided to accept the work that had been done and call it good. This is an example of ______. A. Accepting partial performance B. Mutually rescinding the contract C. Rescinding the contract unilaterally D. Suing for damages
A. Accepting partial performance
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. A. Bracketing B. Competition C. Correlation D. Substituting
A. Bracketing
Christine listed her house with you. Licensee Tailleur represents the buyer, Rebecca. The seller's mother, Freida, is paying your commission. Which of these factors determines how legal agency is determined in this situation? A. Christine listed the property with you. B. Christine's mother, Freida, owns the house you listed. C. Freida is paying your commission. D. Tailleur represents the seller.
A. Christine listed the property with you.
Which one of these is a potential title issue with a foreclosure? A. Clouds on title B. Delays due to internal title audit C. Homeowner's right of equitable redemption D. Lengthy closing process
A. Clouds on title
As part of preparing a marketing plan for a landlord client, property manager Michelle has gathered information from numerous sources. Which of the following is likely to be most useful to her as she determines whether rent in the building she manages is in line with the competition? A. Complete rent roll from the building she manages B. GIS data showing access points to bike lanes and public transportation C. List of all maintenance and repairs completed in the building for the last 18 months D. Results from millennial marketing survey showing advertising media preferences
A. Complete rent roll from the building she manages
Which of the following is defined as what it would take to recreate a property if it disappeared off the face of the earth today? A. Cost B. Insurance C. Price D. Value
A. Cost
Regina purchases a farm with 80 acres and owns her property in severalty. What does this mean for the company that purchased the mineral rights from the previous owner? A. Regina and the company that purchased the mineral rights are automatically tenants in common, since they share ownership of the property. B. Regina didn't purchase the mineral rights, which have been severed from the property by the previous owner. C. Regina included the mineral rights in her purchase agreement, since she could not otherwise own the property in severalty. D. Regina is the sole owner, and the company must accept a fractional portion of the sales price in return for forfeiting the mineral rights.
B. Regina didn't purchase the mineral rights, which have been severed from the property by the previous owner.
LaTonya's aunt left her a bungalow on the outskirts of the city. For many years, it was the place for family holiday gatherings, and LaTonya's sister was even married there. That's why her family is so upset to learn that she plans to sell the bungalow as soon as she gets it cleaned out. Which real property right allows her to sell the property? A. Control B. Disposition C. Exclusion D. Possession
B. Disposition
Residents of Tinytown have been complaining to town officials that the village-like character of their town is being affected by the medium-rise condos that developers are building on the edge of town. In response, local government officials rezoned the areas on the edges of town as parklands. What type of zoning is this? A. Aesthetic zoning B. Downzoning C. Incentive zoning D. Spot zoning
B. Downzoning
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? A. Estate for life B. Fee simple C. Leasehold estate D. Periodic estate
B. Fee simple
The cost approach method Burt used before investing in his new community was highly dependent on his depreciation estimates. As they begin building the homes they realize the guest bedroom in each has a point of entry that prospective buyers do not like in the layout of the house. The depreciation of this design defect is ______. A. External depreciation B. Functional obsolescence C. Physical depreciation D. Reoccurring depreciation
B. Functional obsolescence
New Day Corporation's application to build a new mixed-income housing development was denied, because the town of Springfield has halted all new development until after city elections. What did Springfield enact? A. Area variance B. Moratorium C. Special use permit D. Use variance
B. Moratorium
Mardee represented condo owner Carol, and they signed an exclusive agency listing agreement. If Carol found her own buyer, would she owe Mardee a commission? A. No, because Carol is not a real estate licensee. B. No, because Carol procured the buyer. C. Yes, because they have an exclusive agency listing agreement. D. Yes, but she only owes the listing commission.
B. No, because Carol procured the buyer.
Four brokerage firms operate in the same small city as Jackson's firm. All the firms charge approximately the same listing commission and pay approximately the same cooperating commission to the selling broker. The commission splits within each firm are also similar. Is this an antitrust violation? Why or why not? A. No. The similarities between commission rates may be suspect, but the similarity between commission splits doesn't matter. B. Not necessarily. The fact that the firms' commission rates and splits are similar doesn't necessarily mean they agreed to fix those values. C. Yes. The fact that the firm's commission rates and splits are so similar is a restraint of trade. D. Yes. The firms' internal commission splits can be the same, but they can't all charge the same commission rate.
B. Not necessarily. The fact that the firms' commission rates and splits are similar doesn't necessarily mean they agreed to fix those values.
On what type of listing (or listings) may a net listing be used in states where they are legal? A. Exclusive right-to-sell listings only B. Open, exclusive agency, or exclusive right-to-sell listings C. Open listings only D. Open or exclusive agency listings only
B. Open, exclusive agency, or exclusive right-to-sell listings
Henry is Monica's listing agent. As Monica's agent, Henry has a duty to account for and properly handle her funds and ______. A. Financial investments B. Paperwork C. Personal savings D. Property taxes
B. Paperwork
Trudy loved her new neighbors. The investor couple bought every available house on Trudy's block and was working hard to renovate them and increase their value. Trudy decided that she'd sit back, relax, and let her property's value go up, too, thanks to ______. A. Competition B. Progression C. Regression D. Substitution
B. Progression
Drew and Hank were camping at Hank's riverfront cabin. Hank told Drew that he rarely used the cabin and was thinking of selling it. Drew said that he'd buy it from Hank for $80,000, which Hank agreed was a fair price. It's two months later, and Hank is upset that Drew now says he won't buy it. Why isn't this contract enforceable? A. Drew didn't have the financial resources to make the offer. B. Real estate contracts must be in writing. C. There was no offer and acceptance. D. This wasn't a legal purpose.
B. Real estate contracts must be in writing.
Lorena and Julio purchased a home for $205,950. Their loan amount was $164,760, and the assessed value is now $200,500. Their tax rate is 1.5%. How much will their monthly taxes be? A. $111.04 B. $191.37 C. $250.62 D. $86.49
C. $250.62
A four-bedroom, four-bath, 4,875-square-foot house was listed at $445,000. Andreas, the seller, accepted an offer that was 95% of the listing price. What price per square foot did he get for the house? A. $45.64 B. $82.15 C. $86.72 D. $93.00
C. $86.72
A rental property owner purchased a property for $400,000 and pays $36,000 in ownership expenses, plus $30,000 in operating expenses. The owner would like to achieve an ROI of 8%. What's the minimum annual rent that would accomplish this? A. $38,880 B. $71,280 C. $98,000 D. You can't determine this from the information provided.
C. $98,000
Over how many years is a commercial property depreciated? A. 27.5 years B. 29 years C. 39 years D. 40 years
C. 39 years
How many acres are in a parcel described as, "The NE 1/4 SW 1/4 Section 3, Township 4S, Range 2W of the 6th PM"? A. 160 B. 20 C. 40 D. 80
C. 40
Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with cooperating brokerages. Last month, he was paid $12,239.50 in commissions from his home sales, which totaled $538,000. Assuming every transaction for the month was shared with a cooperating brokerage, what is Jared's brokerage's commission rate? A. 2.3% B. 3.8% C. 6.5% D. 7.6%
C. 6.5%
Title insurance covers claims by individuals who live or lived on the property in question, as long as what's in place? A. An affidavit from the resident B. Approval from the current owner C. A public record of tenancy D. A tenant add-on insurance policy
C. A public record of tenancy
John's property is shaped like a triangle. The street side is 185 feet, and from the street to the longest point of the triangle is 225 feet. How do you calculate the square footage of John's property? A. Add 185 to 225. B. Multiply 185 by 225, then divide by four. C. Multiply 185 by .5; multiply your answer by 225. D. Multiply 185 x 225.
C. Multiply 185 by .5; multiply your answer by 225.
Which agency is charged with enforcing fair housing laws and holding all parties accountable for compliance with these laws and regulations? A. Office of Civil Rights B. Office of Equal Credit Opportunity C. Office of Fair Housing and Equal Opportunity D. Office of Housing and Community Development
C. Office of Fair Housing and Equal Opportunity
Tanner, a property owner, wants Gina, a real estate licensee, to manage the property he owns while he's living out of state for a few years. In return, Tanner will pay Gina a flat monthly fee. What type of agreement must be in place between Tanner and Gina? A. Lease agreement B. Listing agreement C. Property management agreement D. Rental agreement
C. Property management agreement
Seller Gina feels awful that Martha, who was going to buy her property, lost her job. Gina decides to ______ Martha from the purchase contract. A. Assign B. Reform C. Release D. Rescind
C. Release
Brynn's listing agent told potential buyers that all offers on Brynn's property would be considered at 5 p.m. on May 3. By that date and time, there were four offers. The persons making these offers are the ______. A. Examiners B. Executors C. Offerees D. Offerors
D. Offerors
A brokerage firm that hires licensees as employees instead of as independent contractors must ______. A. Advise the state licensing regulators of the non-traditional working relationship B. Avoid controlling their activities too closely to ensure proper worker classification C. Offer incentive bonuses to ensure a motivated workforce D. Pay licensees a regular salary regardless of the revenue they generate
D. Pay licensees a regular salary regardless of the revenue they generate
Tyra owns a nail salon that's located in a strip mall. Her rent every month includes $1,800 base rent and 10% of her gross sales. What kind of lease does Tyra have? A. Graduated B. Gross C. Net D. Percentage
D. Percentage
In many cases, property managers must get explicit permission in order to disburse funds from a trust account. What is one common way to do so without this explicit permission? A. Ensure the bank has a signature card for the property manager. B. Give the property manager a power of attorney. C. Have all who supply trust funds sign waivers. D. Put it in the property management agreement.
D. Put it in the property management agreement.
If a buyer makes an offer that the seller finds lacking, which of the following actions is the seller most likely to take? A. Ask the seller's agent to talk with the buyer's agent. B. Call the buyer to negotiate better terms. C. Increase the asking price. D. Respond with a written counter-offer.
D. Respond with a written counter-offer.
Rhonda purchased an existing pet store in her neighborhood, and she's so excited! Her animal-loving aunt is thrilled for Rhonda but disappointed that she won't be able to visit the store in her wheelchair, as the aisles are narrow and there isn't enough room to move around. What is true about Rhonda's responsibilities to her aunt and other people with disabilities? A. At a minimum, Rhonda is required to add an accessible bathroom. B. At a minimum, Rhonda is required to add an accessible entrance to the building. C. Because Rhonda purchased a retail business, she must meet the same ADA requirements as new construction buildings. D. Since Rhonda purchased an existing building and business, the ADA requirements aren't as strict as with new construction and vary by building.
D. Since Rhonda purchased an existing building and business, the ADA requirements aren't as strict as with new construction and vary by building.
Renee listed her property for three months starting on March 13. By August, the property hasn't sold. This is after lots of marketing and effort from the agent, a price adjustment, and several showings. Renee decided to list the property with another firm. Under which of these conditions can Renee list the property with another firm without breaching her agreement? A. She can terminate with no penalty as long as she lists with another firm. B. The agent abandoned the listing. C. The agent didn't put forth enough effort, so Renee can terminate the agreement. D. The listing agreement expired.
D. The listing agreement expired.
Gerard has been offered a 4% interest rate on a $300,000 mortgage. His monthly mortgage payment would run about $950 per month. He plans to pay $2,000 up front to drop his interest rate to 3.75% and his payment to $920 per month. What is this upfront charge called? A. Discount point B. Interest C. Notes D. Usury
A. Discount point
Seth is a licensee representing seller Dora. Which of these items is Seth required to disclose to prospective buyers about the property? A. Dora doesn't use the back door because the steps leading to the yard are rotted. B. Dora keeps sunflowers planted in the back yard because the local birds can eat the seeds. C. The neighborhood kids like to ride their bikes in Dora's driveway. D. The pink geraniums in the window boxes are fake.
A. Dora doesn't use the back door because the steps leading to the yard are rotted.
Select the statement that accurately depicts property ownership income tax implications. A. During the ownership stage, both investors and homeowners may be able to deduct mortgage interest paid. B. First-time home buyers can deduct closing costs paid. C. Homeowners can deduct depreciation during the ownership stage; investors can't. D. When homeowners sell their property, they'll need to calculate the depreciable basis on the property.
A. During the ownership stage, both investors and homeowners may be able to deduct mortgage interest paid.
What must sellers provide prospective buyers of homes built prior to 1978, in addition to the federally required disclosure form? A. EPA lead safety pamphlet B. List of reputable home improvement contractors C. Verbal assurance that the home is lead-free before offering it for sale D. Written proof that the home is lead-free
A. EPA lead safety pamphlet
Which of the following is an acceptable ad based on Regulation Z? A. Get a low interest rate of 4.75% (4.925% APR) with as little as 10% down payment and a 30-year fixed rate with no points. B. Get a low interest rate of 4.75% on a monthly payment of $900. C. Get a low interest rate of 4.75%, with 85% loan to value. D. Get a low interest rate of 4.75% with as little as 3% down.
A. Get a low interest rate of 4.75% (4.925% APR) with as little as 10% down payment and a 30-year fixed rate with no points.
Stella owns a building in an area of town that's being revitalized. Local property owners believe property values will increase considerably over the next 10 years. Stella wants to entice long-term tenants with a low initial rent but have the flexibility to increase rent as her property's value increase. What type of lease should she consider? A. Graduated B. Gross C. Net D. Percentage
A. Graduated
What hazard do mining activities, landfills, or agricultural pesticides contribute to? A. Groundwater contamination B. Leaking underground storage tanks C. Vacant properties D. Waste disposal sites
A. Groundwater contamination
Prakesh and Jean have always wanted to renovate an old home. They found a Victorian that hasn't been lived in for years and are considering making an offer. Their agent warns them that the property as it stands now may not be insurable. Which of the following might make it uninsurable? A. The 100-year-old wiring B. The crumbling driveway C. The lack of closets D. The slate roof
A. The 100-year-old wiring
What's an example of a gross lease? A. The owner pays all property taxes, maintenance, and insurance costs. B. The tenant and owner split the property taxes, maintenance, and insurance costs equally. C. The tenant pays all property taxes, maintenance, and insurance costs. D. The tenant pays property taxes and splits maintenance costs with the owner.
A. The owner pays all property taxes, maintenance, and insurance costs.
An appraiser used the cost approach to estimate a property's value at $220,000. The site value was $50,000, and the total depreciation estimate was $4,000. What was the estimated cost of improvements? A. $166,000 B. $174,000 C. $266,000 D. $274,000
B. $174,000
Your clients are purchasing a $160,000 home. If they have a down payment of 25% and the bank charges two points at closing, how much are they paying in points? A. $2,350 B. $2,400 C. $2,450 D. $2,475
B. $2,400
A buyer anticipates a house payment of $1,000 per month, with monthly homeowner association fees of $150. The buyer also has a car payment of $400 per month. If the buyer earns a monthly gross income of $5,000, what's the housing ratio? A. 20% B. 23% C. 28% D. 31%
B. 23%
Lamar closes on his new home next week. It's a 37-year-old split level, so his agent asked if he's interested in purchasing a home warranty. "Why would I need a warranty?" he wondered. "Didn't the home inspection identify all of the issues?" What's the agent's best response to Lamar's question? A. A home warranty will cover all problems that come up in the future. B. A home warranty will cover things like appliances and major systems. C. Buying a home warranty almost guarantees you won't have any issues! D. If you purchase a home warranty and something breaks, you can sue the selle
B. A home warranty will cover things like appliances and major systems.
REALTOR® Arnold was instructed by his client Sebastian to find a buyer who would "fit into the neighborhood." What is Arnold's responsibility in this situation? A. Arnold must comply with his client's instruction, regardless of his own feelings on the subject. B. Arnold must conduct his usual advertising strategies and find covert methods for selecting buyers that meet his client's desired profile. C. Arnold must explain to his client the responsibilities for fair treatment that they both have under fair housing laws. D. Arnold must explain to Sebastian that he cannot continue to work as his agent under the circumstances.
C. Arnold must explain to his client the responsibilities for fair treatment that they both have under fair housing laws.
Bethany has agreed to purchase Derrick's property using a land contract. Who holds legal title to the property during the term of the loan? A. Bethany B. Both Bethany and Derrick C. Derrick D. The state
C. Derrick
Homestead Realty had a listing agreement with Gertrude. The listing expired, and Gertrude moved the listing to another firm. Another licensee at Homestead Realty has a buyer client who's interested in Gertrude's property. What restrictions are in place for Homestead Realty? A. Homestead may not represent a buyer for the previously listed property. B. Homestead may represent the buyer but may not disclose any information about the property or previous offers on it. C. Homestead may represent the buyer, must disclose material facts about the property, and must maintain Gertrude's confidentiality. D. No restrictions are in place since the previous property listing expired.
C. Homestead may represent the buyer, must disclose material facts about the property, and must maintain Gertrude's confidentiality.
The Druid Hills neighborhood sits firmly within a single-family residential zoning area. Most of the lots are one-third of an acre or larger. A 20-acre parcel on the edge of the neighborhood sold recently. The buyer wants to build condominium flats since multi-family housing is in short supply in the area. The town is considering rezoning that parcel to allow this development because the developer plans to also include a public park and a walking trail. What kind of zoning is this? A. Aesthetic zoning B. Downzoning C. Incentive zoning D. Spot zoning
C. Incentive zoning
The Uniform Electronic Transaction Act (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
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 ______. A. Accepting partial performance B. Rescinding the contract unilaterally C. Suing for damages and breach of contract D. Suing for specific performance
C. Suing for damages and breach of contract
What's the meaning of "good faith" in relation to contract law? A. The contract terms are written to be equally beneficial to each party. B. The contract was formed without undue influence or duress. C. The parties agree that they'll execute the contract to the best of their ability and without any fraud or misrepresentation. D. The parties agree to arbitration or mediation instead of legal action as a means of settling any disputes.
C. The parties agree that they'll execute the contract to the best of their ability and without any fraud or misrepresentation.
How many parties does a deed of trust involve? A. Five: borrower, lender, trustee, trustor, and beneficiary B. Four: borrower, lender, trustee, and trustor C. Three: borrower, lender, and trustee D. Two: borrower and lender
C. Three: borrower, lender, and trustee
Your buyer is worried that after she closes on her property, she'll find out someone else has a claim to its ownership. What can reassure her? A. Abstract of title B. Chain of title C. Title insurance D. Title search
C. Title insurance
You represent a seller as a listing agent. Do you owe any duties to buyer agents? A. No, you owe no duties B. Only if the agent works in your office C. Yes, the duty to cooperate on showings D. Yes, the same duties you owe to the seller
C. Yes, the duty to cooperate on showings
Your buyer client, Max, just signed a purchase agreement for a $520,000 home. He has a 60% LTV ratio, and his lender's charging a 1.5% loan origination fee. What loan origination fee can Max expect to pay at closing? A. $2,200 B. $3,120 C. $4,200 D. $4,680
D. $4,680
Alan and Kate want to build a 5,000-square-foot ranch-style home on two acres of land they just bought. Once the house is built, how many acres of undeveloped land will remain? A. 0.88 acres B. 0.89 acres C. 1.86 acres D. 1.89 acres
D. 1.89 acres
How many acres are in a parcel described as, "The S 1/2 NW 1/4 Section 3, Township 4N, Range 2W of the 6th PM"? A. 160 B. 20 C. 40 D. 80
D. 80
Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out of state, she sold her interest to Midge. Two years later, Ken died. How is the interest in the property divided? A. Barbie and Midge each own 50%. B. Barbie and Skipper each own 50%. C. Barbie, Midge, and Ken's heirs each own one-third. D. Barbie owns two-thirds, and Midge owns one-third.
D. Barbie owns two-thirds, and Midge owns one-third.
Which offer would be the most appealing to a seller? A. A full-price offer waiving inspection, conventional financing with 20% down, closing in 45 days. B. An all-cash offer $15,000 below list price, closing in two weeks. C. An offer $10,000 over list price, contingent upon appraisal and inspection, conventional financing with 20% down, closing in 30 days. D. It depends on the seller's needs and motivations.
D. It depends on the seller's needs and motivations.
Jennifer plans to sell her rental property to Eliot, a buyer. What obligation, if any, do Jennifer and Eliot have to the tenants of the property? A. Eliot must notify the tenants once he takes over as landlord. B. Eliot must notify the tenants that the lease will be terminated when he takes over. C. Jennifer has no obligation to inform the tenants of the change in ownership, provided Eliot intends to keep them as tenants. D. Jennifer must notify the tenants of the change in ownership.
D. Jennifer must notify the tenants of the change in ownership.
Landlords must abide by all fair housing, civil rights, and ADA regulations as well as comply with all state and federal landlord-tenant legislation. What responsibility does the property manager have related to this? A. ADA regulations don't impact residential housing units, so neither the landlord nor the property manager is responsible for these regulations. B. The landlord is solely responsible for upholding all these laws and regulations. C. The property manager, as the day-to-day manager for a property, is the only one liable for upholding these laws and regulations. D. The property manager, as the landlord's general agent, is responsible for upholding all the laws and regulations required of the landlord.
D. The property manager, as the landlord's general agent, is responsible for upholding all the laws and regulations required of the landlord.
Which of these situations is addressed by the fiduciary duty of disclosure? A. The buyer fails to disclose to the seller his need to close on the property quickly. B. The buyer's home inspector refuses to share the inspection report with the seller. C. The seller refuses to complete a property disclosure form. D. The seller's agent fails to disclose a conflict of interest.
D. The seller's agent fails to disclose a conflict of interest.
If individuals want to use their property in a way that's not permitted by a zoning ordinance, they must submit a request for a variance to which one of the following groups? A. The architectural review board B. The building department C. The planning board D. The zoning board of appeals
D. The zoning board of appeals
Shakira is attending an association meeting when, in a small group breakout, her group begins discussing how to deal with the new kid in town: a real estate firm that charges a flat $500 to list properties, then lets the sellers fend for themselves. Why should Shakira leave the discussion? A. She needs to get to work developing this model for herself. B. The group seems bent on creating a tie-in arrangement. C. This conversation seems to be turning into a discussion of market allocation. D. This conversation sounds like it might become an antitrust violation.
D. This conversation sounds like it might become an antitrust violation.
Your client, Darnell, is interested in buying a rental property that has current tenants. He plans to rent the property to friends the month after he buys it. Which of the following statements is true and could affect Darnell's decision to buy the property? A. As the new owner and landlord, Darnell has the right to terminate the lease so his friends can move in. B. As the new owner, Darnell can change the lease term so that the current tenants have to leave 30 days before his friends to move in. C. If the existing tenants pre-paid the rent for a year to the former owner, they will also have to pay rent to Darnell. D. Unless stated otherwise in the lease, the existing tenants usually have the right to retain possession of a property, even if it's sold during their lease term.
D. Unless stated otherwise in the lease, the existing tenants usually have the right to retain possession of a property, even if it's sold during their lease term.
Unauthorized practice of law and acting outside the scope of one's expertise are similar issues. Which of the following circumstances specifically relates to the unauthorized practice of law? A. Predicting a specific tax increase or decrease B. Predicting the return on investment for a rental property C. Recommending specific investments D. Writing contract addenda or additional provisions that cover unfamiliar circumstances
D. Writing contract addenda or additional provisions that cover unfamiliar circumstances
