Post License Test
Which of the following statements may indicate a price fixing violation?
"This is the standard price for a full-service listing."
A buyer should typically put down ______ in earnest money.
1%
Traditionally, lenders' qualifying mortgage rules use a range of percentages to qualify for both the housing debt-to-income ratio and the total debt-to-income ratio. What are those ratio ranges?
25% to 28% for housing; 33% to 36% for total deb
To qualify for a reverse mortgage, you must be at least ________.
62
To avoid paying PMI, Jonah opted for a loan that consists of a down payment and two mortgages. This loan is called a(n) ________.
80-10-10 loan
What are you expected to be in your job as a real estate professional?
A custodian of public interest
Which of the following is a type of adverse material fact?
A material defect in the property's title. Adverse material facts include environmental hazards, defects in a property or its title, physical property conditions negatively affecting property value, and any limitations of a party's ability to perform under the contract's terms.
RESPA permits licensees to receive compensation from _______.
Affiliated businesses they own
Improvements to old houses ________.
Are often worth less than the same feature on a new house
In Georgia, buyer representation agreements ______.
Aren't limited to any a state-specified form
Which of these actions is an example of proficient trust fund handling?
Asking the bank to validate duplicate bank receipts
If a lender wanted a quick valuation of a property, what would be the best method?
Automated Valuation Model
Which of the following is a true statement about Internet lending programs?
Borrowers can do their research when it's most convenient.
A seller licensee must disclose material defects to _______.
Both the seller and the buyer
Marco found a home he wants to buy, but he hasn't sold his existing home yet, so he opts for a(n) ________.
Bridge/Swing loan
What's the name of loans that sellers may use to borrow equity from their listed property to buy their next property?
Bridge/swing Loan
For which type of buyers would an ARM be a good option?
Buyers staying in there home for a short time.
Which one of these is a potential title issue with a foreclosure?
Clouds on Title
Most transactional lawsuits stem from one of three sources. Which is NOT one of those three sources?
Commision Disputes
To take advantage of Fannie Mae's HomePath program, buyers must ______.
Complete the online HomePath Ready Buyer course
What's an antitrust violation's central element?
Conspiracy
With the cost approach to value, what is the replacement cost?
Cost to build a functionally equivalent improvement. The replacement cost reflects the cost to build a functionally equivalent improvement, as opposed to the reproduction cost, which is the cost to build an exact replica of the subject, with the same materials and deficiencies.
Which of the following is exempt from E&O insurance coverage?
Criminal Activity
Which fiduciary duties do customers receive?
Customers don't receive fiduciary duties because they're not clients
According to the PMI Act of 1998, at what percentage of equity position does personal mortgage insurance automatically cancel for homeowners?
Decline the listing if the seller's price and your price analysis are too far apart
You're creating marketing materials for your new listing. The entire home has Brazilian tigerwood floors throughout, but they're in poor shape and need refinishing. It's best if you ______ in your descriptions.
Don't mention the floors
Dorinda sits down at her laptop to get multiple loan quotes at one or two lending sites. To make sure she's getting the most reliable and accurate results, what should she do?
Find out whether or not lenders pay the site in order to be ranked higher
On a security deed in Georgia, what is the borrower referred to?
Grantor
To ensure win-win results in your real estate practice, you must know your desired outcome, keep your senses aware, and ______.
Have a choice of responses
Marco, a buyer in Atlanta, wants to terminate his buyer's representation agreement with his agent. What is TRUE about this situation?
He may or may not owe an amount under the terms of the agreement
Claudean's preapproval letter is evidence that ________.
Her financial information has been verified.
Which of the following may be a result of sluggish real estate market conditions?
Higher-than-normal average DOM
Your buyer client, Ahmad, asks which costs he'll have to pay outside of closing. One of the items you mention is
Home inspection fee
Which of the following questions should be asked at a pre-listing appointment?
How old is the furnace?
Jan has been approached by a buyer. The first question she should ask is, ________.
How the buyer got her name
The 203(k) loan can be used to ______.
Include the cost of a solar water heater into a home loan
Jamal is preparing a CMA after conducting a pre-listing appointment. He notes that, while the seller said the home was 3,000 square feet, the tax records say 2,753. Jamal should ______.
Investigate the depsarity
Applying a capitalization rate to the net operating income is one way to determine a property's ______ value.
Investment
A home's latent defects are hidden, and a licensee ______.
Isn't expected to know about or disclose them
What does the inspection contingency allow?
It authorizes the buyer to inspect and test everything.
Which is the best format for a listing presentation?
It depends on the seller and property
Jarvis's clients aren't sure if they want to get an inspection on a property they're interested in. Why should Jarvis recommend the inspection?
It gives the buyer a snapshot in time of the home's condition.
When a property "misses the market," what does that mean?
It was overpriced during the first few weeks on the market.
In the income approach, a property's income serves as an indication of what?
Its present value
Which of these situations represents reproduction cost in the cost approach to value?
Kristina's antebellum mansion in New Orleans was severely damaged by a hurricane. She spends several years repurposing materials from other similar homes to rebuild it exactly as it was before the hurricane.
When it comes to listing presentations ________.
Less is more
Select the statement that best describes a licensee's responsibility related to disclosing material facts.
Licensees should determine what their state requires them to disclose.
The comparable homes in the Branching Bee neighborhood are selling in 30 days, on average. Homes in other neighborhoods are generally selling after 90-120 days. When estimating an appropriate list price for a home in the Branching Bee neighborhood, you should suggest _______.
Listing at a higher price than comparables in other neighborhoods
Before you write a purchase agreement, you should contact the ______.
Listing licensee
Doug and Robyn are involved in a heated dispute. They opt to resolve their dispute in front of a judge and jury. This is known as ______.
Litigation
Which of the following duties does the agent owe the buyer under the terms of a buyer representation agreement?
Locating and showing properties
Radon is an important environmental issue because it causes what?
Lung Cancer
Asbestos that is present inside a home is a ______ and may cause a potential homebuyer to rescind a purchase offer on the home.
Material Defect
What kind of ads gives buyers a wrong impression of a property?
Misleading ad
In addition to the Loan Estimate and the Closing Disclosure, lenders must provide consumers with additional disclosures after the loan is consummated. Which of the following is one of those disclosures?
Mortgage servicing transfer
Bella decides to shop online for a loan because such lenders are known for providing ________.
Multiple rates at once
When using an amortization chart, you use the interest rate and the loan term to arrive at a factor, such as 5.17808. Now what do you do?
Multiply the number of thousands in the loan by the factor.
You're conducting your visual inspection of your client's property and come across a room painted in psychedelic colors. Should you note this as an adverse material defect for disclosure to potential buyers?
No, this is not an adverse material defect.
What are commissions, brokerage fees, and service income examples of?
Non-trust funds
The majority of what we communicate is conveyed through our ________.
Nonverbal cues
Which of the following is a duty the buyer owes to the agent under a buyer representation agreement?
Notifying the agent of all material changes
What is the purpose of the preliminary title report?
Offers to issue a title insurance policy.A preliminary title report is only an offer to issue a policy of title insurance. It also provides an overview of the title's condition.
Where do most errors pertaining to contracts occur?
Omissions
Which of the following tasks is a closing attorney's responsibility?
Order title work
Which of these would Wendy, a home inspector, likely identify during an inspection?
Patent defects
The Hensleys are interested in putting in an offer on the ranch-style house they saw yesterday. One of the first steps you might take when preparing to write their purchase agreement is ______.
Print the tax information about the property
Lucas, a landlord, repeatedly refuses to abide by an EPA order that he abate lead-based paint hazards in one of his rental properties. Which of the following penalties are federal authorities permitted to impose?
Prison
The cost approach to finding appraised value measures value as a cost of ________.
Production
Toni works with a great lender. When she's asked by a new buyer for a referral, Toni should ________.
Provide three quality names, including her lender
If a foreclosed property doesn't move at auction, it reverts to the bank and is considered to be ______.
Real estate owned (REO)
Many market conditions impact housing prices. Which of the following is a true statement?
Reduced consumer confidence makes new buyers wary of purchasing and homeowners hesitant to trade up.
Daniela puts 30% down on a conventional loan for her home purchase. How much PMI will she likely pay?
She won't have to pay any PMI.
What should Maggie do to avoid antitrust law violations?
Stress that she sets her own rates based on the services she provides.
Regarding VA loans, which of the following is true?
The VA guarantees 25% of the Loan
What's an order of specific performance that requires a seller to sell the home to the buyer generally based on?
The assumption that each piece of real estate is unique
What does "exclusive" mean in the Exclusive Buyer Brokerage Engagement Agreement?
The buyer agrees to work with only one broker.
Determine which of the following statements regarding copyright and fair use is true.
The fair use doctrine does not stipulate a maximum word usage
In Georgia, buyer representation agreements ______.
The only difference is whether the buyer is working with one broker or multiple brokers.
The capitalization process uses a capitalization rate, which is based on what?
The performance of comparable properties
You must know ________ before you can measure results.
The result you want
Who completes the property condition disclosure statement, and who is liable for the information provided?
The seller completes it, and the seller is liable for the contents.
Which of these situations is addressed by the fiduciary duty of disclosure?
The seller's agent fails to disclose a conflict of interest.
Which of the following statements is about automated valuation models is true?
They don't take into account property condition.
Which fiduciary duties do customers receive?
They receive the same six fiduciary duties as clients receive.
After the ________ round in negotiations, both buyer and seller usually lose sight of the home and money and begin to make it personal and focus on the other party.
Third
Which of the following is a means by which radon may enter a home?
Through floor joists
What's one purpose of a BPO?
To assist lenders in determining the marketability and potential sales price for distressed properties
Regarding mold, which of these statements is true?
To be safe, sellers and licensees should disclose any known presence of mold or water intrusion.
You're with your buyer client Yasmin at a final walk-through of the house she's buying. Which of the following are you primarily there to determine?
To make sure the property hasn't deteriorated since you and Yasmin last saw it
You'll want to make sure the wording in the purchase agreement permits your buyer clients to withdraw from the deal if they ______.
Uncover restrictions that could interfere with their anticipated use of the property
During the preapproval process, a(n) ________ verifies the borrowers' credit and determines if the loan will be approved.
Underwriter
Which of the following is a true statement about how adjustments are made in the sales comparison approach?
Upward towards the subject
Lana, a real estate professional, included an inaccurate property description in her client's contract. This mistake can make a contract ______.
Voidable
What is the most common way that asbestos enters the body?
When asbestos fibers decay or are disturbed, the friable particles can be inhaled.
What is the most common way that asbestos enters the body?
When asbestos fibers decay or are disturbed, the friable particles can be inhaled. When asbestos fibers decay or are disturbed, the friable particles can be inhaled.
Which of the following is a drawback to applying the cost approach to residential property?
Which of the following is a drawback to applying the cost approach to residential property?
The reason you want all property owners present at a listing appointment is that ________.
You stand zero chance of leaving with a fully executed listing agreement if a signer is missing.
Why might you choose to include only properties from within a seller's neighborhood as comparables?
You won't have to make adjustments for neighborhood differences.
You've begun working with a new buyer client, and your formulating a desired outcome of the relationship. Regarding your outcome, which of these statements is true?
Your outcome must be an appropriate size.
How you prequalify a buyer depends in large measure on how the buyer ________.
found you
