RE EXAM SMART

Tell the seller because of the fiduciary obligation to the seller

A listing agent is showing the listed property to a prospective buyer. The buyer tells the listing agent that a favorable zoning is coming with regard to the listed property. What should the listing agent do?

a breach of fiduciary obligation

A listing agent tells a prospective buyer something the seller had told the agent confidentially. This is:

disclose this material fact to the buyer

A listing agent was showing a buyer customer a property listed by the agent. While showing the property, the agent noticed a crack in the basement wall that was covered by some boxes. The agent should:

Reverse Annuity Mortgage (RAM)

A loan that is paid off either by the sale of property or death of the borrower is called a(n):

Disclose to the buyer immediately

A licensee discovers that a number of improvements on a property were built too close to the property line. The property is currently under contract to be sold. Which statements BEST describes what the agent should do?

must give a parking space near the door to the handicapped person if one is available and a need is demonstrated

A mobility impaired person was renting a unit in an apartment complex. Half of the units have assigned parking spaces near the door. The other half do not. The owner:

name of the lending institution

A mortgage contingency usually includes all of the following items EXCEPT:

Implied

A salesperson, while showing two different houses to a buyer, advised the buyer that one of the houses would be a better buy. Which type agency may have been created?

The selling broker is an agent of the listing broker

A seller called a salesperson asking the salesperson to list the seller's home for sale. The salesperson did so and submitted the listing to the MLS after the salesperson's broker approved the listing. Another Broker within the MLS cooperated with the listing broker and found a buyer for the house. Which of the following best describes the relationship of the parties involved?

decision by principal

A seller could terminate a listing contract with a broker without liability EXCEPT for:

Bill of Sale

A seller sold a property to a buyer with the seller also transferring the refrigerator to the buyer as a personal property item. The document needed for the transfer of the refrigerator would be a:

Make adjustments to the comparables and then compare to the seller's property

A seller was considering listing the seller's residential property for sale. A real estate agent found 3 comparable properties in the seller's neighborhood that had sold for $120,000, $140,000 and $160,000. In order to estimate the value of the seller's home, which of the following would be the salesperson's best choice?

encroachment

A trespass of an improvement is which of the following?

Adverse Possession

A way to acquire property by involuntary alienation is through:

eligibility

Before a veteran can obtain a VA loan, the VA must issue a certificate of:

Environmental contamination

Discolored soil near an underground storage tank might be an indication of:

Loan Amount

Discount points of 1% would be computed based upon the:

Fiduciary

Which of the following duties BEST describes the duty of a property manager to the owner?

Vacancy and lost rent

Which of the following is NOT considered as an operating cost in a property management budget?

An option renewal clause

Which of the following items would NOT always be part of a lease?

Sale or assignment of the mortgaged property

Which of the following normally triggers an alienation clause?

Vacant land to be used for commercial property.

Which of the following properties would an appraiser NOT depreciate?

They pass to the grantee unless specifically noted

Which of the following statements BEST describes the effect on mineral rights when the land is sold?

Blockbusting

Which of the following terms BEST describe the practice of encouraging owners to move from an area due to minorities moving in making the neighborhood more integrated?

Vendor

Which of the following terms BEST describes the seller in an agreement of sale?

Non-homogenous

Which of the following terms would best describe the concept that no two parcels of land are the same?

Remainder

Which of the following terns BEST describes an estate where the title does not pass back to the grantor?

A poor lay-out design

Which of the following would be considered functional obsolescence?

3 years

In real estate transaction that involves lead based paint, real estate licensee use keep all documentation on that transaction for a period of:

offeree

A contract is not completed and binding until it is signed by the:

1986 Superfund Amendments and Reauthorization ACT (SARA)

A law passed to enable the EPA (Environmental Protection Agency) to clean up the environment is the:

General

A broker acting as a property manager usually indicated which type of agency?

The buyer can revoke the offer until it is accepted

A broker had a piece of property listed for $90,000. A buyer submitted an $89,000 offer. Which of the following statements is correct regarding this situation?

The broker will only get paid if the broker sells the property

A broker took an opening listing with a seller. Which of the following statements is correct concerning the open listing?

was suspected of containing toxic waste

A brownfield in real estate terms would be where a commercial or industrial property:

Continue to market the property for the seller

A buyer made an offer on a property a broker had listed. The broker presented the offer to the seller. While the seller was still considering the offer, the buyer contacted and informed the broker that the buyer wanted to withdraw the offer. The broker should:

Association of Unit Owners

A condominium development with a long standing established homes association would be governed by the:

It was over-improved thus leading to functional obsolescence

A person built a $150,000 house in a $50,000 neighborhood. It was also downwind from a sewage plant. The builder did not put closets in 2 of the bedrooms. Which is correct concerning the property?

Adverse possession

A person occupies a property in a hostile, visible, actual, and direct manner. This is BEST described by which of the following terms?

Riparian

A person owned a property next to a stream. The owner's rights to use the stream are referred to as:

intestate with no heirs

A property escheats to the state when a person dies:

$114,000

A property had a land value of $30,000. The replacement cost of the improvements was estimated at $120,000. If an appraiser estimated the depreciation at 30%, what is the current value of the property?

encapsulation

A property that contains asbestos insulation wrapped around pipes would be best remedied by:

Cost

A property's value is estimated by taking the current replacement cost less depreciation plus land value. This describes which of the following approaches to value?

$140,000

An apartment complex had an annual gross income of $240,000, annual debt service of $100,000, annual maintenance of $35,000, annual utilities of $5,000, annual insurance of $10,000 and an annual property manager's salary of $50,000. What would be the net operating income for this apartment complex?

Oil Refinery

An appraiser should lend most validity to the market data approach on which of the following properties?

The broker must return the earnest money to the buyer

An offer to purchase contract was contingent upon the buyer receiving a loan. The buyer was not able to obtain financing. The buyer informed both the seller and the broker of the loan denial. Which of the following statements is true?

Terminate the listing before the expiration date

An owner listed a property with a broker. However, the broker failed to do anything to market the property. If the owner wanted to sell the property personally without paying a commission, what should the owner do?

Exclusive agency

An owner listed a property with one broker but reserved the right to sell it personally without paying a commission. Which of the following listings was MOST likely signed? Glossary Terms

Exclusive agency

An owner listed a property with only one broker. After the sale, the broker was NOT due a commission. Which type of listing was MOST likely in effect?

Yes, the agent should notify the buyer immediately

Between the time a buyer and seller signed a sales contract and closing, the zoning on the property was changed. Does the listing agent need to disclose this fact to the buyer who is a customer?

Time of Acquisition

In order to have a joint tenancy, there must be the unities of title, interest, possession and:

quitclaim deed

If a cloudy title exists, the best way to remedy the situation would be through a:

Inform the owner that the licensee cannot legally accept the listing

If an owner tells a licensee not to show the property to minorities, which of the following statements BEST describes the obligations of the agent?

national origin

In advertising for prospects, all of the following terms could be used EXCEPT:

File a private suit in court

Mr. X bought a house in an area that restricted fences. He then bought a dog and began constructing a fence. What remedies do the neighbors have?

The Servant tenement

T gave a neighbor the right to cross over T's property. T's property would be referred to as:

EPA (Environmental Protection Agency)

The Clean Water Act would be overseen by the:

$3.00

The annual taxes on a property were $1,350. The assessed value of the property was $45,000. What was the tax rate per $100 of assessed value?

a satisfaction or mortgage release

The best way to prove that a borrower has paid off a home loan is through:

Market Data Approach

When appraising a 30 year old residence, an appraiser should most heavily rely on which approach to value?

setback

The distance between the street and the front of a house is known as:

convert net income into a value indication

The purpose of capitalization of income is to:

The property owner

This property management agreement is between the property manager and:

one time at closing

Title insurance is paid:

Value

Utility, scarcity and transferability would MOST relate to which of the following terms?

To buy notes from primary lenders

What is the primary purpose of the Federal National MortgageAssociation (FNMA)?

Expiration date

What must a listing have in it?

the government exercising the right of eminent domain

When a property is taken through condemnation, it was a result of:

Depreciation

When an owner takes the original cost of real property and takes tax deductions over the life of the property, this is referred to as: