Real Estate Exam Questions Set #2
Targeting prospective clients in a particular geographic area
" Geographical farming," in the context of the real estate business, means:
Be personalized according to the property and the client's needs
A good listing interview should always:
Ask him for his assistance in finding a property for a real family
A good way for an agent to begin a conversation with a prospective seller is:
For the agent to bring up the objection first
A good way for an agent to overcome an objection about a property from a prospective buyer is:
The persons's main residence
A home will be considered a person's "primary residence" if it is:
Estate for years
A lease for 48 months is considered
Independent Contractor
A licensed sales person under a broker usually is actions as a(n):
Blanket Loan
A loan which covers several properties is called a:
Junior Trust Deed
A loan which is recorded on a property after the first loan is recorded is also called a:
Finder
A real estate agent acting as a neutral middleman between the buyer and seller, and not providing any further services, is called a:
Signed contract
A signed listing agreement in the equivalent of a ________ between agency and seller:
True
According to the real estate Law , salesperson can receive commissions directly from a property seller
Also attract potential purchasers to the client's property
Advertising done for properties similar to a client's property is likely to :
Approving and processing the loan
All of the following are basic steps of the financing process, except:
Increasing insurance coverage
All of the following are ways that staging can improve a home's attractiveness for potential buyers, except:
Borrower's ethnic group
All of the following factors could be weighed in calculation of a borrower's FICO score, except:
False
An agency listing gives the seller the right to tell property himself without paying any commission.
Answer: All of the above 1.Buyer Agency 2. Dual Agency 3. Seller agency
An agent can have the following type(s) of agency relationships with the client:
Written consent from both seller and buyer
An agent can represent both buyer and seller in a dual agency if he has:
Never Allowed
An agent is _________ to contact an owner with has active listing with another agent.
Megan's Law
An agent's disclosure to a buyer regarding the public availability of a sex offender's data base is required under:
The client is affirming what the agent is saying
An assumptive close method should be used if:
False
An offer must be in writing, but an acceptance can be purely verbal.
True
An offer with no conditions attached is called a clean offer.
Initial deposit
Another name for the Good Faith Deposit is the:
True
At first, the internet was viewed by real estate professionals as a threat to their business.
Written consent to be called
Because of the Do-Not-Call registry, follow-up phone calls to people who attend an open house should only be made after obtaining their:
Professional occupation of neighbors to the property
Before showing a property to a prospective client, it is important that an agent know all of the following about the neighborhood, except:
Answer: Both A&B 1. Leaning Forward 2. Picking up an agreement from and starting to read it
Body language sign(s) indicating that a client is interested in the agent's sales presentation include:
Keyboxes
Brokers can obtain access to the property of a seller through the use of:
True
Depreciable basis relates to the value of improvements made to the land
Answer: All of the above 1. Supply and Demand 2. Urgency of sale 3. Property condition
Factors affecting the listing price include:
All of the following are signs that a property owner is a likely prospect to sell his property, except:
Family Vacation
Answer: All of the above 1. Be complete 2. state a closing date 3. contain a price
For an offer to be legally valid, it should:
Answer: Both A& B 1. Swing Loan 2. Bridge loans
Gap Loans are also known as:
Every six months
Homeowners are charged property taxes:
Phone number
If an advertisement does not contain the_______ of the broker, it is termed a "blind ad," which is illegal.
Lowering the price of the listing
If an agent with a listing discovers that other properties are listed in the same area with similar features but at a lower price that agent should consider:
Labor commissioner
If brokers have a dispute regarding commissions. the matter is settled by a:
Can be canceled
If the expiration date for and offer passes without an acceptance by the seller, the offer:
At least 100 investors, with 90% of the REIT's profit distributed annually to them
In order for a Real Estate Investment Trust ( REIT) to invest in the real estate market, the REIT is required to have:
Open Listing
In which type of listing does the seller pay a commission only if the broker is the procuring cause of the sale:
False
It is acceptable to make door-to-door prospecting calls after 10pm
Customized thank you letter
It is advisable that soon after the listing period begins, the broker should send the owner a(n):
Withing 24 hours of their first phone contact
It is recommended that the first meeting between an agent and prospective client occur:
Unsolicited e-mails
Laws against "spam" refer to:
True
Liquidated damages in the agreed-upon amount of money to be pain in case on party decides to cancel the sale
Two days
Listing agreements should be submitted to the MLS within _______ of being signed by the parties
Classified ads
Market Surveys demonstrate that people over 50-years-old prefer using the medium to search for real estate:
Answer: both A &B 1. Not sell in a particular area, or not to sell to customers in a particular area 2. sell only in a particular area, or sell only to customers in a particular area
Market allocation, which is prohibited, occurs when an agent agrees:
Online advertising
Most real estate advertising budgets would allocate the largest amount of advertising dollars for:
Answer: All of the above 1.The outstanding loan balance plus any interest due 2. The selling commission 3. The seller's share of the escrow fees
On the seller's statement, payments by the seller include:
Answer: Both A & C A. A fine up to $1 million B. A lifetime ban on conducting the real estate transactions
Penalties for violation of the sherman Anti- Trust Act include:
Both A & C 1. Magnetic car sign 2. A CD-Rom in the shape of a business card
Personal advertising can be in the form of a :
Loan origination fees
Recurring costs to the buyer include all of the following, except:
In obtaining standard policy title insurance, no physical check of the property is required
Regarding standard policy title insurance , which of the following is false.
The previous six months
The CMA should include all eligible comparable properties in a neighborhood sold during _________.
Rumford Act
The Fair Employment and Housing Act, a state law prohibiting discrimination in the sale of a residential property, is also called the:
Discount Rate
The Federal Reserve can influence the cash flow into the real estate market by raising or lowering the __________________.
Answer: both A&B A. Fined up to $20,000 B. Imprisoned up to six months
The Real Law States that an unlicensed person who advertises himself to be a real estate licensee can be:
Net Listing
The ________ is the kind of listing in which the agent received the excess if the property sells for more than the listed price.
Answer: both A & C A. Less requirement C. Less processing time
The advantage(s) of conventional loans compared to government-backed loans include:
Set the value of the property
The comparative Market Analysis ( CMA) provides that data used by the agent to:
The multiple listing service
The data base which enables brokers to search an almost unlimited inventory of listings is:
Title companies
The easiest way to obtain a property profile through_____:
10%
The federal FIRPTA law requires a buyer who is buying a property from a foreigner to withhold____ of the value of the transaction
Answer: All of the above 1. Not paying attention to what the prospective buyer is saying 2. not Knowing important details about a property 3. Displaying fear if not making a sale
The following action(s) by an agent will hurt his chance of making a sale:
Tenant's Ethnicity
The following are all reasons a lease can be terminated, except:
The sale of a comparable property for a higher price
The following are reasons why an agreement can be terminates before the end of the listing period, except:
$250,000
The gain from the sale of real property by a single person that is excluded from taxes is:
The internet
The great majority of real estate sales are now initiated through research done using:
An adjustable - rate loan
The hybrid loan is a combination of a fixed-rate loan and a(n):
Baby Boomers
The largest age group in the nation includes many people who have been involved in the property market for several decades, called the:
Answer: All of the above 1. Sales agreement between buyer and seller 2. conditional delivery of funds 3. conditional delivery of documents
The legal requirements for a valid escrow include:
Deposit receipt
The offer to purchase is sometimes called a:
Answer: All of the above 1. Property description 2. payment method 3.special contingencies
The party of an offer that the agent should oversee are the:
Blockbusting
The practice of making false statements about a property in order to lower its value and increase the buyer's profit is called:
Safety clause
The provision which protects the brokers right to a commission if a sale closes after the listing expires:
True
The reason many listings are not renewed after expiring is poor communication between broker and clients.
Answer: Both A &C 1. Brokers and Clients 2. Brokers and salespersons
The rules of agency apply to the relationships between:
Business establishment
The unruh Act applies to_______________.
False
The veterans Administration issues VA loans itself which not guaranteeing any portion of the loan.
Answer: All of the above 1. Spouses 2. Divorcing spouses 3. Descendants
Transfer disclosure forms are not requires if the property is being transferred between:
Classified
Type(s) of newspaper advertising include:
Answer: All of the above 1. Examples of marketing e-mails sent out 2. Screenshots of MLS entries regarding the property Copies of newspaper ads
Weekly activity reports by an agent to a client should include:
Answer: Any of the above 1. With the principal 2. into a neutral account 3. into the broker's trust account
When a broker receives a good faith deposit, she has three days to deposit it:
Offer useful information about the property to prolong the call
When a caller making an inquiry about a listed property does not want to provide his name, the agent should:
False
When a house is being shown to a prospective buyer, the owner should be present in order to answer any questions
Redlining
When a loan applicant is rejected based on the racial make-up of the neighborhood where his secured property is located, it is an illegal example of:
Switch property
When answering phone inquiries about an advertised property, an agent should have a " backup property" in mind, which is also called a(n):
Answer: All of the above 1. Target Audience 2. The messaging 3. The available budget
When choosing an advertising medium to use, an agent should consider which of the following factors:
The agent's office
When meeting a client for the first name, an agent should try to schedule the meeting at:
Appraisal Method
Which of the following are methods to determine the value of the land in a transaction:
Answer: Both A& B A. Individual B. Residential
Which of the following are types of property manager:
Compensation is based on commissions
Which of the following indicates that a licensed real estate agent would be categorized as an independent contractor:
An agent's marketing plan presentation should explain how advertising will be used to sell the property
Which of the following is a correct statement about marketing plans:
Contractual
Which of the following is not one of the "C's" which lenders use to screen borrowers:
Sewer System Upgrade
Which of the following qualifies as maintenance, rather than home improvement:
Anticipate any objections from the client while trying to overcome them
While showing a property to a client, an agent should:
Is the procuring cause of the sale
With an open listing, the broker will receive a commission only if he________.
