National RE Incorrect

A buyer has a 15-year, $250,000 loan with a 5.5% interest rate. How much of the first monthly payment is interest? $1,145.83 $13,750.28 $1,388.89 $916.67

$1,145.8 ($250,000 x 0.055) ÷ 12 = $1,145.83

Phoebe's gross monthly income is $4,200, and she has $360 in monthly non-housing debt payments. The lender's qualifying ratios are 28% for the housing ratio and 36% for the total DTI ratio. What's the maximum housing payment she can afford? $1,075 $1,152 $1,176 $1,512

$1,152 The maximum house payment is the lesser of the amounts calculated using both ratios. DTI: $4,200 x .36 = $1,512. $1,512 - $360 = $1,152. Housing ratio: $4,200 x .28 = $1,176. Phoebe's maximum payment is $1,152.

Your client Faye is buying a condo downtown for $565,000 and financing 60% of the purchase. Her lender is charging a one-point loan origination fee and two discount points. Can you help Faye calculate the dollar amount for points she's going to pay on her loan? $10,170 $16,950 $4,520 $6,780 Question 27

$10,170

Lorena and Julio purchased a home for $205,950. Their loan amount was $164,760, and the assessed value is now $201,500. Their tax rate is 0.63%. How much will their monthly taxes be? $105.79 $111.04 $191.37 $86.49

$105.79 Monthly taxes are calculated by multiplying the assessed value by the tax rate and dividing by 12: $201,500 × .63% = $1,269.45 ÷ 12 = $105.79.

Nico is buying a home for $625,000. His earnest money deposit is 8%. He wants to avoid private mortgage insurance (PMI) on his conventional loan, and he owes 5% of the purchase price in closing costs. How much money should he bring to closing? $106,250 $156,250 $31,250 $81,250

$106,250 Conventional loans often require 20% down to avoid PMI ($125,000), and Nico has paid a $50,000 deposit ($625,000 x .08). Closing costs are $31,250 ($625,000 x .05). He needs $106,250 to close ([$125,000 - $50,000] + $31,250).

Dale and Barbara, your buyer clients, aren't thrilled about the current interest rates on home loans. They opt to pay two discount points to their lender to bring down their monthly payment. They're financing $235,000 on their new $400,000 home, so how much can they expect to pay for points at closing? $2,350 $3,300 $4,700 $8,000

$4,700

Lenore makes a 95% offer on a townhouse that's listed at $285,000 and includes an earnest money deposit for 10% of her offer, which the seller accepts. She brings to closing a cashier's check for $35,025 comprising the balance of her 20% down payment and closing costs. What's the amount of her total down payment? $35,025 $54,150 $57,000 $62,100

$54,150 Lenore's offer is $270,750 which is 95% of the list price ($285,000 x .95 = $270,750 ). Her total down payment is 20% of her accepted offer of $270,750, which is $54,150 (or $270,750 x .2).

A borrower has a 30-year, $500,000 loan with an interest rate of 6.25%. His monthly principal and interest payment is $3,078.59. What's the total amount of interest he'll pay over the course of the loan? $1,108,292.40 $500,000 $608,292.40 $750,000

$608,292.40 First, multiply the monthly payment by the total number of payments. Then subtract the original loan value: $3,078.59 x 360 = $1,108,292.40 ‒ $500,000 = $608,292.40.

You're working with buyers who are pre-approved for a loan of as much as $200,000. Assuming they lock in a 5.25% interest rate at closing, how much of their first payment will go toward interest? $824 $825 $874 $875

$875 The formula is loan balance × interest rate ÷ months per year. Loan balance is: $200,000 × .0525 = $10,500; $10,500 ÷ 12 = $875

Bonnie is calculating the square footage of a listing. The upper level of the home is 450 square feet. The main floor is 1,200 square feet, including an unfinished laundry area that's 225 square feet. The 1,200-square-foot basement is finished. Bonnie's MLS system disregards below-grade square footage. What square footage will Bonnie mention in her MLS listing and marketing materials? 1,200 1,425 2,400 2,850

1,425 Only finished above-ground space should be counted in Bonnie's MLS listing. That means the square footage of the upper floor plus the main floor (minus the unfinished laundry area). Bonnie should report 1,425 square feet (450 + 1,200 - 225).

The Goldmans are buying the Kraskis' house for $415,000, and closing is set for March 15. The Kraskis 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 Goldmans will owe the Kraskis at closing. Assume February has 28 days this year. The sellers own the day of closing. 1,997.62 $3,113.46 $604.95 $792.54

1,997.62

In certain cases, antitrust violators may be subject to court-ordered supervision. How long can this supervision last? 10 years One month One week One year

10 years

A buyer with a 15-year, $250,000 loan at a 5.5% interest rate has a monthly principal and interest payment totaling $2,042.71. How many payments will the borrower make over the course of the loan? 15 180 240 360

180 The borrower will have 180 payments (assuming the loan isn't paid off early). This is 12 monthly payments per year for 15 years: 12 x 15 = 180.

Which of the following statements is true about zoning classifications? A home business would be considered an accessory use. A residential property may only have one use. Condos are always commercial property. Multi-family housing is zoned commercial.

A home business would be considered an accessory use. An accessory use is one that's subordinate but related to the main use of the property.

Which of these statements about the size of a section of land is NOT true? A section is 43,560 square feet. A section is 640 acres. A section is larger than a hectare. A section is one square mile.

A section is 43,560 square feet. An acre is 43,560 square feet. A section is one square mile, or 640 acres. A hectare is a 100-acre measurement.

To which of the following borrowers might a lender be most likely to recommend an FHA loan? An investor who intends to use equity in another investment property as his down payment A retired couple interested in downsizing from a large four-bedroom house they own free and clear to a condominium A single stockbroker with a $40,000 down payment and significant assets in a stock portfolio A young couple with only a few thousand dollars saved for a down payment and relatively low credit scores

A young couple with only a few thousand dollars saved for a down payment and relatively low credit scores Loans insured by the Federal Housing Administration require a 3.5% down payment and permit buyers with lower credit scores to qualify for a loan.

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? Abandonment Express Merger Necessity

Abandonment Easement abandonment is when the dominant estate owner takes action that shows a clear intent to stop using the easement.

Related to the legal test of a fixture, in the acronym MARIA, what do the two As stand for? Acceptability of the fixture and agreement of the parties Adaptability of item and accessibility to the property Adaptability of item to land's use and agreement of the parties Allowable use and acceptable use

Adaptability of item to land's use and agreement of the parties

What are improvements with regard to property? Another name for a building permit Artificial attachments to land that include items such as fencing, buildings, and walkways Natural fixtures that are part of the land and that enhance its value The right to increase the value of a property

Artificial attachments to land that include items such as fencing, buildings, and walkways Improvements are artificial attachments to land that include items such as fencing, buildings, and walkways.

Belinda is a licensee whose client asked her to draft an addendum containing complicated terms that even Belinda doesn't fully understand. Belinda should ______. Avoid unauthorized practice of law Hire an attorney Refuse to work with this client Use legalese

Avoid unauthorized practice of law

Desmond has a signed listing agreement with his clients, the Harpers. In exchange for helping the Harpers list, market, and sell their home, the Harpers have agreed to pay Desmond a commission. What type of agreement do Desmond and the Harpers have? Bilateral Executed Mutual Unilateral

Bilateral A contract involving an exchange of promises or other consideration between two parties is a bilateral contract.

One area of town has maximum building height requirements and setbacks for the front, side, and rear yards. These requirements are all indicative of ______. Bulk zoning Commercial zoning Density zoning Residential zoning

Bulk zoning These requirements are all indicative of bulk zoning, which may be seen in both commercial and residential areas, and which decreases density.

Which of the following features is most likely to be the cause of an adjustment to a comparable (competitive) when preparing a CMA? Busy street Color Demographics Interest rates

Busy street A busy street is less desirable for a residential property and more desirable for a commercial property. Other factors that could impact value are foreclosures, short sales, and cash-only sales.

You represent the buyer in one transaction and the seller in a different transaction. What type of agency relationship do you have with the buyer? Buyer agency Dual-licensee dual agency Seller agency Single-licensee dual agency

Buyer agency You have a buyer agency relationship with the buyer in one transaction and a seller agency relationship with the seller in the other transaction.

What does the metes and bounds system use to develop a property's legal description? Compass headings and directions Plat references Principal meridians and base lines Townships and sections

Compass headings and directions

Quentin brought an application before city council to build a shopping mall on 17 acres south of town that currently don't have a zoning designation. The council referred him to the planning commission, which will review the application in light of the city's ________. Comprehensive plan Economic development plan Health and sanitation ordinances Zoning ordinances

Comprehensive plan Since the parcel isn't currently zoned, zoning should be established in alignment with an area's comprehensive plan.

Alice owned a double lot on the waterfront. She sold the lot to Ronesha and included a deed restriction prohibiting construction of any building taller than one story. Ronesha wants a three-story house. What should she do? Apply to the zoning board of appeals for a variance. Check to see if the building code will permit a larger house. Conform to the deed restriction. File a suit against Alice to have the restriction removed.

Conform to the deed restriction. Once placed in a deed, restrictions are binding on current and future owners. Litigation or zoning board appeals won't change or remove them.

Which of these is a violation of the RRP Rule? A homeowner performs DIY work in a home built prior to 1978. A seller of a home built in 1952 doesn't make the appropriate lead disclosures. Contractors from a home improvement store install windows or doors. Contractors perform renovations that disturb lead-based paint without holding proper certification.

Contractors perform renovations that disturb lead-based paint without holding proper certification. The federal Lead Renovation, Repair, and Painting (RRP) Rule requires firms that do renovation or repair work in homes built prior to 1978 to be properly certified in using lead-safe work practices, but it doesn't prohibit DIY work.

Philip owns land in a state where growing marijuana is illegal. He wants to set up a small marijuana growing operation and export to states where marijuana has been legalized. He asks his attorney about the possibility. "No," his attorney explains. "It's not possible. Although you own the property outright, the right of ______ only allows you to manage the property in ways that are legal in this jurisdiction. Control Disposition Exclusion Possession

Control The right of control allows owner Philip to manage the property in any way he sees fit—as long as the enterprise is legal in the given jurisdiction. Other regulations, such as HOA regulations, may also apply.

Don and Becky realized too late that the contract they signed for the sale of their home didn't include any language about a rent-back if the home they're building isn't ready in time. What can their listing agent do? Create a contract addendum with the required language. Create a contract amendment with the required language. Create a counter-offer to present to the buyers. Terminate the contract on Becky and Don's behalf.

Create a contract amendment with the required language. Once a contract is signed, the document to use to alter the terms is a contract amendment.

A real estate transaction has a closing date of May 20. The seller, who's responsible for closing costs up to but not including the day of settlement, has already paid annual property taxes of $1,949. Using calendar year proration, the seller will be ______ on the closing statement (round to the nearest dollar). Credited $1,207 Credited $742 Debited $1,207 Debited $742

Credited $1,207 The seller is required to pay the for January 1 through May 19. The seller will be credited $1,207, because $1,949 ÷ 365 = $5.34, and $5.34 × 226 days (the number of days the buyer is required to pay) = $1,206.84. That's $1,207 if rounded to the nearest whole dollar.

What are the two types of physical depreciation? Curable and incurable Economic and material Internal and external Qualitative and quantitative

Curable and incurable

Prudence just finished paying off the debt on her loan, so the lender released the property's title to her. What clause in her mortgage stipulates this? Acceleration Alienation Defeasance Due on sale

Defeasance

Which agency enforces Title II under the Americans with Disabilities Act of 1990, when it relates to state and local public housing, housing assistance, and housing referrals? Department of Civil Rights Department of Equal Opportunity Department of Housing and Community Development Department of Housing and Urban Development

Department of Housing and Urban Development

Kurt bought a vacant lot in a development that was 85% completed. When he started working with the builder to lay out where the house and driveway would be, they found he would need an easement because his driveway would spill over onto the adjacent lot by a few feet. Kurt owns the _______ estate or tenement. Dominant Gross Prescriptive Servient

Dominant

Gene and Alex bought a property that backed up to a neighborhood park. The previous owner mentioned that ever since the park was built eight years ago, the next door neighbor who works at the park has cut through the yard to get to the park rather than going around via the streets, which saves about half a mile. What kind of easement is this? Easement by prescription Easement in gross Express easement Visible easement

Easement by prescription Easements by prescription are created through continuous, exclusive, and long-term use of another's property without actual permission.

Which type of deed conveys real property from a decedent's estate to a buyer? Deed in trust Executor's deed Quitclaim deed Referee's deed

Executor's deed An executor is the person in charge of administering the estate according to the will of the deceased. An executor's deed conveys real property from a decedent's estate to a buyer.

Roxanne just finished making a buyer presentation to Fred and Regina Jones. Now that they understand the difference between being customers and being clients, they're anxious to be represented. What is one of Roxanne's duties to them as their buyer's agent? Ensuring that she earns a commission Finding properties to show to Fred and Regina Notifying the Jones family of any material changes Sharing their motivations and pricing strategies with seller's agents.

Finding properties to show to Fred and Regina Under a buyer rep agreement, the agent's duties include showing properties, assisting in negotiations, and providing guidance.

Jerome is developing an ad for three properties he has listed in an upscale community. He wants to keep it short and simple. Which of these would NOT trigger full disclosure under TILA? 10% down payment 30-year fixed rate with no points A monthly payment of $900 Get a low 4.925% APR

Get a low 4.925% APR An ad can show the APR without disclosing all the other credit terms. But if certain other "trigger" terms are included, such as down payment, payment amount, number of payments, or interest rate (other than APR), this would require full disclosure.

Marion gave her granddaughter Sheila the deed to a brand new home, on the condition that Sheila complete her PhD in astronautics. When Sheila dropped out of school and got a job as a greeter at a big box store instead, Marion ______ to regain ownership of the property. Had no recourse Had to purchase the property from Sheila Had to take legal action Wasn't required to take any action

Had to take legal action The estate granted to Sheila describes a fee simple subject to a condition subsequent, since it uses the phrase "on condition that." Marion's right of reentry requires her to take legal action to regain ownership if the condition is violated.

Related to reasonable accommodation of being allowed to have an assistance animal, which statement 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.

Related to reasonable accommodation of being allowed to have an assistance animal, which statement 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. Housing providers may inquire as to the nature of the disability if it's not apparent, and they must permit assistance animals for tenants with documented disabilities without charging an additional pet deposit.

Which physical characteristic of land addresses the concept that the geographic location of a piece of land is fixed and can never be changed? Immobility Indestructibility Situs (location) Uniqueness

Immobility Unlike an improvement, such as a house, which could conceivably be moved, land stays put.

Which one of these would NOT be an element of comparison an appraiser would use when applying the sales comparison approach to a property valuation? Financing terms and cash equivalency Income generated Market conditions at time of sale Physical characteristics of the property

Income generated The sales comparison approach doesn't factor in any income a property may have generated; that's an aspect of the income approach.

Ashish is purchasing a bank-owned property. His real estate agent tells him the bank is offering insurable, not marketable, title. What does this mean to Ashish? An insurable title has uncurable title defects, so Ashish terminate his contract. Insurable title carries a higher standard of assurance than marketable title, so Ashish shouldn't be concerned. Insurable title is one that may have known defects but is still insurable. Ashish should carefully review the title policy. The title company will include any easements or other title defects as exceptions on the policy, which is a concern for Ashish.

Insurable title is one that may have known defects but is still insurable. Ashish should carefully review the title policy. An insurable title may be acceptable to a buyer, depending on any known defects that are outlined in the policy.

What does a balloon payment represent at the end of a loan term? It means that some principal remains at the end of the loan term. It means that the loan has been fully amortized. It refers to the entire principal due over the course of the loan. It refers to the lump sum of the total amount of interest due on the loan.

It means that some principal remains at the end of the loan term. A balloon payment is due at the end of a balloon loan, because the loan has only been partially amortized, which means that some of the principal remains at the end of the loan term.

You've just signed a listing with a new seller client. What's true about electronic delivery of written notice or contract forms to your seller? It's allowed if the seller consented to it in the listing contract. It's allowed with special permission from the commission. It's illegal in Colorado. It's legal as long as it's subsequent to physical hard copy delivery.

It's allowed if the seller consented to it in the listing contract. A notices clause may provide an opportunity for the parties to consent to electronic document delivery in lieu of physical delivery.

Which of the following statements about the fiduciary duty of disclosure is true? It only applies to the seller's agent. It requires licensees to disclose everything to all parties. It's owed to other parties, not just to the licensee's clients. It's owed to the licensee's clients only.

It's owed to the licensee's clients only. In most states, licensees are required to disclose material facts to all parties to the contract. However, the FIDUCIARY duty of disclosure is due only to the licensee's clients.

Max has a written agency agreement with Rufus in which Max will receive all of the listings in the subdivision that Rufus purchased (with Max's representation) and is developing. One day when Rufus is visiting the site of the subdivision, a work truck accidentally runs him over and he's seriously injured. Rufus can no longer run the development of the subdivision. What happens to Max's agency coupled with interest? It's still in place because it doesn't terminate on the death or incompetence of the principal. Max has no recourse; the agency relationship is terminated and he receives no compensation. Max now owns the subdivision as a result of the principal's death or incapacity. Rufus must now pay Max the commission that he didn't get from the original listing, and the agency relationship is terminated.

It's still in place because it doesn't terminate on the death or incompetence of the principal. Agency coupled with interest is irrevocable.

In which of these situations is Ronna's fiduciary duty of reasonable skill and care at odds with her duty of obedience? Jefferson insists that Ronna interpret the implications of him breaching his contract with a buyer. Ronna's buyer client asked her to keep his financial situation confidential. Ted, Ronna's broker, insisted that she teach a contracts class, even though she's a new agent. Though her customer was adamant, Ronna turned down a commercial listing because it was outside her area of expertise.

Jefferson insists that Ronna interpret the implications of him breaching his contract with a buyer. Ronna's duty of reasonable skill and care prohibits her from providing legal advice and supersedes her duty of obedience to Jefferson, her client.

Which ownership type is defined by four unities: time, title, interest, and possession? Freehold estate Joint tenancy Tenancy by the entirety Tenancy in common

Joint tenancy This is joint tenancy. Tenancy by the entirety requires a fifth unity (person). If one joint tenant dies, that tenant's interests go to the remaining joint tenants. If only one tenant is left, that tenant owns the property in severalty

Which body of law contains the rules governing the relationship between a real estate professional and the person being represented? Employment laws Fair housing law Human rights law Law of agency

Law of agency

Which statement about lead-related health problems is true? Lead can be traced to senioritis. Lead causes blindness upon contact with the eyes. Lead is associated with coronary heart disease. Lead may cause behavioral problems, learning disabilities, seizures, and, in extreme cases, death.

Lead may cause behavioral problems, learning disabilities, seizures, and, in extreme cases, death.

To be an effective property manager, a licensee must be familiar with a variety of ______. Agency disclosures Employment contracts Independent contractor agreements Lease agreements

Lease agreements Lease agreements

"Beginning at a stake and stones about 30 feet from the center of the brook that runs across the road Southwesterly from the dwelling house of the late Bethany Smith ..." is an example of what type of legal description? Benchmark Lot and block Metes and bounds Rectangular

Metes and bounds

Your client is purchasing a single-family home with a conventional loan. The listing price is $150,000. Does this situation require a licensed or certified appraiser? No, since conventional financing does not require an appraisal. No, since the sales price is less than $400,000. Yes, all property transfers require an appraisal. Yes, properties with sales prices of less than $175,000 require a certified appraiser.

No, since the sales price is less than $400,000.

Frieda is practicing dual agency and neither party seems to mind, even though she didn't obtain written informed consent. Is this legal? It's only legal if she doesn't get caught. No. Dual agency is always illegal. No. Without informed consent, it's illegal. Yes, if the parties are agreeable.

No. Without informed consent, it's illegal. Frieda needs to obtain informed consent in writing in order to practice dual agency legally.

Maxine is purchasing a small craft shop, including the underlying real estate. She applies for a commercial loan from her federally insured bank to complete the purchase. Is Maxine's transaction covered by the Real Estate Settlement Procedures Act? No; commercial and business loans are exempt from RESPA requirements. No; RESPA only applies to loans obtained from private lenders. Yes; all loans secured by real estate are subject to RESPA requirements. Yes; because she obtains the loan from a federally insured financial institution, the loan is subject to RESPA requirements.

No; commercial and business loans are exempt from RESPA requirements.

Elaine owns a home on a flag lot behind James. Her easement for a common driveway runs through James's property. What kind of ownership rights does Elaine have of the driveway that runs through James's property? Absolute Non-possessory Possessory Temporary

Non-possessory

An example of this type of leasehold estate is a month-to-month lease. Estate at sufferance Estate at will Estate for months Periodic estate

Periodic estate A periodic estate automatically renews at the end of its lease term, such as at the end of a given month.

Which of the following statements related to the power of taxation is true? If the property is foreclosed upon, property taxes are paid after all other creditors. Property tax liens take priority over any and all other liens on the property in most states. Property tax liens take the lowest priority after all other liens on the property. Taxation is an unstable source of income.

Property tax liens take priority over any and all other liens on the property in most states. In most states, property tax liens take priority over any and all other liens that might be on the property. That means if the property is foreclosed upon, unpaid property taxes are paid first, and other creditors must wait their turn in line.

The legal description of the project, easements that run with the land, and street and traffic patterns are all under consideration when a local planning board ______. Calculates the developer's project application fee Considers granting a special use permit to a developer Reviews a developer's project plat Reviews the zoning for a developer's project

Reviews a developer's project plat

Stan and Margo want to redevelop an old industrial site in order to create a microbrewery and event space. However, an environmental review found that hazardous chemicals were once used on site, and there is a possibility they will be released during redevelopment. Stan and Margo may not be liable for cleanup, under what federal law? CERCLA EIS SARA Wetlands Conservation Act

SARA SARA, or the Superfund Amendments and Reauthorization Act, created an innocent landowner defense. Often, the courts will review a SARA case and determine liability.

Ari owned acreage in a rural area. He sold a small portion of it to a neighbor in an informal transaction but made no record of the sale or change of ownership. A developer offered Ari several million dollars for the entire acreage, and Ari eagerly accepted the offer. What covenant is Ari in danger of violating? Against encumbrances Quiet enjoyment Seisin Warranty

Seisin The covenant of seisin guarantees that the grantor owns the property that appears in the deed. Because the sale of property to Ari's neighbor was never recorded, his deed still shows that he owns the entire parcel.

Which of these statements about septic systems and disclosure are true? All owners of properties with septic systems must disclose how much it costs to maintain and operate these systems. In Virginia, unlike other states, all septic systems must be disclosed. Septic systems that don't involve additional maintenance requirements and a waiver don't have to be disclosed. The presence of a septic system only needs to be disclosed if that system is malfunctioning.

Septic systems that don't involve additional maintenance requirements and a waiver don't have to be disclosed. The only time an owner has to disclose a septic system is if that system is subject to maintenance and repair requirements imposed by the state board of health AND the owner has a waiver.

Samuel and Yoshi have worked at the same firm for a few months and get along well. Samuel mentions he has a credit score in the low 800s. Yoshi, who's just starting out, persuades Samuel to sign for a loan to help Yoshi buy a property, since his credit isn't good enough. Yoshi promises to make the mortgage payments, but two months after the deal closes, Yoshi moves across the country. Samuel's now stuck with a $400,000 mortgage. What type of scheme is this? Equity skimming Inflated appraisal Silent second Straw buyer

Straw buyer

Which amendment to CERCLA says that "innocent landowners" aren't responsible for clean-up of hazardous contamination? Environmental Responsibility Amendment Hazardous Contamination Amendment Superfunds Amendments and Reauthorization Act The Fair Housing Act

Superfunds Amendments and Reauthorization Act The Superfund Amendments and Reauthorization Act, or SARA, says that innocent landowners aren't responsible for clean-up of hazardous contamination.

The two real estate firms in one small town, Vineyard Realty and Homestead Homes, agree to charge the same commission rate to avoid the possibility of clients selecting a firm based simply on price. What specific federal legislation prohibits this? The Clayton Act of 1914 The Federal Trade Commission Act of 1914 The Restraint of Trade Act of 1894 The Sherman Antitrust Act of 1890

The Sherman Antitrust Act of 1890 The Sherman Antitrust Act of 1890 expressly prohibits collusive acts that result in an unreasonable restraint of trade or reduced competition.

Select the statement that correctly exemplifies the covenant term. The covenant against encumbrances is the grantor's guarantee that he or she owns the property being conveyed. The covenant for further assurances assures the grantee that there are no undisclosed encumbrances on the property. The covenant of quiet enjoyment promises that the grantee won't be disturbed by a title defect the grantor passes on. The covenant of warranty promises that the grantor has the capacity to convey title.

The covenant of quiet enjoyment promises that the grantee won't be disturbed by a title defect the grantor passes on. The covenant of quiet enjoyment promises that the grantee won't have his enjoyment of the property hampered by claims against the title.

What title guarantees will Jody have if her property is deeded to her after a foreclosure? The covenant against encumbrances The covenant of further assurances The covenant of quiet enjoyment The covenant of seisin

The covenant of seisin

Morris needs to pay for some repairs made to one of the units in his apartment complex. Which bank account should he use? He can use either the trust account or the operating account The firm's operating account The operating account for that specific unit The trust account for that specific unit

The firm's operating account Funds in the firm's operating account are used for operating expenses. Trust account funds are disbursed only for very specific purposes, such as return of a security deposit.

Real estate professionals handle many documents related to real estate transactions. Which one of the items listed below is one of the most important in detecting mortgage fraud? Agency disclosures Buyer representation agreement The original sales agreement and any addenda The title

The original sales agreement and any addenda The original sales agreement and any addenda to that agreement must be accurate. They should clearly identify the property and all parties to the transaction.

Farquhar bought a house at a foreclosure auction. A few weeks later, he was notified that he couldn't take possession of or title to the property. What likely happened? The lender received another offer higher than the one Farquhar made at the auction. The lender revised the previous owners' loan and permitted them to remain in the property. The other lien holders protested the auction sale, so the lender retained the property. The previous owners redeemed the property by paying all mortgage payments and fees.

The previous owners redeemed the property by paying all mortgage payments and fees. Some states have a statutory redemption period after a foreclosure sale within which the homeowners can pay all funds owed to the lender to retain ownership.

Tom and Jim are neighbors. Jim wants to buy Tom's rental property. In the contract they sign, Jim is identified only as "the neighbor." Which statute or contract element does this violate? Legal purpose Offer and acceptance The law of contracts The statute of frauds

The statute of frauds The statute of frauds requires not only that a contract to convey property be in writing, but also that the contract identify the parties to the contract.

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 or special use permit to which one of the following groups? The architectural review board The building department The planning board The zoning board of appeals

The zoning board of appeals Requests for variances and special use permits must be submitted to the zoning board of appeals.

Avery is about to close on his first home. What will protect him from financial loss if his ownership later comes into question? Abstract of title Chain of title Title insurance Title search

Title insurance Title insurance protects property buyers from financial loss due to title defects. However, it covers only those items included in the policy.

What forms the boundaries of a township? Baselines and township lines Principal meridians and baselines Tiers and range lines Township lines and range lines

Township lines and range lines

Which of the following is an example of price fixing? A brokerage requires all licensees to offer a fair cooperative brokerage fee. Three brokerages agree to purchase office supplies together to obtain a bulk discount. Twelve brokerages discuss compensation of associated independent contractor licensees. Two brokerages determine a standard commission rate.

Two brokerages determine a standard commission rate. Collusion must occur on pricing for the public in order for price fixing to occur.

Which of the following is a typical accrued adjustment? Heating oil in the tank Prepaid taxes Unpaid real estate taxes Utilities billed and paid in advance

Unpaid real estate taxes

Damien and Sandy bought a lot with a condemned house. They want to tear it down and build a duplex, so that they can live on one side and rent out the other. Unfortunately, the property is zoned single-family residential. If they can make a case for economic hardship, they may apply for and be granted a ________. Area variance Moratorium Special use permit Use variance

Use variance This is a use variance. The existing zoning only allows single-family homes, so a duplex represents a use other than the originally intended use.

What's the capitalization formula used in the income approach? Value = cap rate minus income Value = income multiplied by cap rate Value = income plus cap rate Value = net operating income divided by cap rate

Value = net operating income divided by cap rate The basic capitalization formula used in the income approach has three parts: value, capitalization (cap) rate, and net operating income. The formula is value = net operating income divided by cap rate.

Rex needs to handle some money he acquired during an "unsavory" business deal. He agrees to sign his boat over to his colleague, Ben, if Ben can launder the money and return it to Rex as part of a legal business dealing. What kind of contract do Rex and Ben have? Executed Executory Void Voidable

Void

Hope's mortgage created a lien against the property she purchased with the mortgage. What kind of lien is this? General Special assessment Vendor's Voluntary

Voluntary A mortgage is a voluntary lien. With voluntary liens, people agree to have the lien placed against their real or personal property.

What is the most common way that asbestos enters the body? Asbestos coating in water pipes can contaminate drinking water, which is then ingested. Asbestos in paint can be released into the air as the paint peels, which is then inhaled or ingested. When asbestos fibers decay or are disturbed, the friable particles can be inhaled. When rocks and soil decay, asbestos gas is released, which is then inhaled.

When asbestos fibers decay or are disturbed, the friable particles can be inhaled.

Chelsea's mother owns several rental properties and intends to keep them to pass on to the family. Chelsea holds a special power of attorney to manage the rental properties, including working with the property manager to place and evict tenants as necessary. Which of these would violate the POA? At the property manager's recommendation, Chelsea evicts a long-time tenant for failure to pay rent Chelsea instructs the property manager to prepare the quarterly financial reports Without consulting her mother, Chelsea decides to completely refurbish one of the properties. Without consulting her mother, Chelsea hires a plumber to fix a major plumbing problem in one of the properties.

Without consulting her mother, Chelsea decides to completely refurbish one of the properties. An agent holding a POA can only make decisions that reflect the principal's preferences and can't exceed the authority granted by the POA. Refurbishing a property doesn't fall within the scope of managing the property is her mother's absence.

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? Predicting a specific tax increase or decrease Predicting the return on investment for a rental property Recommending specific investments Writing contract addenda or additional provisions that cover unfamiliar circumstances

Writing contract addenda or additional provisions that cover unfamiliar circumstances All of these actions are outside the scope of a real estate license. Writing contract addenda or additional provisions that cover unusual circumstances falls into the category of unauthorized practice of law, since a licensed attorney should do that.

What type of police power allows cities to identify specific uses for an area? Condemnation Eminent domain Escheat Zoning

Zoning Zoning dictates how an area can be used, and should follow the area's general or comprehensive plan. Question 54