Real Estate (National)
A real estate professional working with a buyer has disclosed the options for representation under state law, but has not signed buyer representation agreement and considers the buyer a customer. While showing the buyer a property, which of the following statements by the professional could create implied agency in a jurisdiction where the common law of agency prevails? A. "you should consider having any property inspected by a professional" B. "you should speak to an attorney about how to take title to the property" C. "you should offer 20k less than the asking price due to the repairs needed on this property" D. "you should be prequalified by a lender since most sellers will request this information when you make an offer"
C
An adjustable rate mortgage may NOT be good for a buyer A. who only intends to own the property for a short time B. whose income is likely to increase C. who is about to retire D. who is receiving his down payment as a gift from parents
C
An elderly couple is represented by a buyer broker who does not hold any professional license other than the broker license. The couple finds a home they want to purchase and ask their broker's advice about how to take title, explaining that they want to be sure that when one of them dies, the other will automatically become the sole owner of the home. It would be INAPPROPRIATE for the broker to: A. recommend that they consult a real estate attorney about the best way to ensure this outcome B. explain that this is a complex matter that is beyond his expertise C. recommend that they take title as joint tenants or tenants by the entirety to ensure the desired outcome D. explain the basic differences between the state's forms of joint ownership and suggest consulting an estate planning professional
C
Borrowers applied for a loan on the home of their dreams and were approved for very specific terms based on their credit scores and income. At closing, the interest rate had doubled in the loan documents that were presented for their signatures. The borrowers were told that this was likely to be their only chance to receive any sort of loan and they must sign today. They were told if they did not sign that they would lose the house. This was: A. acceptable because the purchasers would still get their home B. acceptable because the lender did secure some sort of financing C. unacceptable because it violates the equal credit opportunity act D. unacceptable because the borrowers were pressured to take the loan
C
Buyer Jim signs a purchase contract with the 30-day closing date as specified by the seller. Seller Tom changes the contract to reflect a closing date of 40 days and signs it. the contract is A. valid at 30 days close, since buyer Jim met all the terms as originally specified by seller B. valid 40 days close, since 10-day extension is not considered material to the contract C. invalid because docs don't have mutually agreed upon terms D. enforceable, since the seller has provided a valid counter-offer
C
Federal rules require a Closing Disclosure document provided by the lender. The broke should counsel the borrower to review this document and compare it with the Loan Estimate document. The Closing Disclosure should be received by the borrower when? A. at the closing of the transaction B. no later than 30 days following the closing C. at least 3 days prior to loan consummation D. not later than 10 business days following loan application
C
In order to collect a commission, which of the following is a requirement for a broker with an open listing? A. the broker must put the listing in the MLS B. the listing must have a protection clause C. the broker or one of is licensees must be the procuring cause for the sale D. the broker must notify any other broker with an open listing on the property of the sale within 2 days after acceptance of an offer
C
In the rectangular survey system of land description, Range 3 West would be best described as a A. line 12 miles west of the principal meridian B. strip of land 12 miles east of the principal meridian C. strip of land between 12 and 18 miles west of the principal meridian D. point 12 miles west of the principal meridian on the principal base line
C
Interest rates charged by banks in the primary market are most likely a result of the actions of which agency? A. consumer financial protection board B. HUD (for FHA and VA loans) C. federal reserve board D. fannie mae
C
One of the major disadvantages of real estate as an investment is that A. managing it requires expertise B. it is highly speculative C. its liquidity is limited D. the tax advantages are minmal
C
The broker has noticed that a great number of people who are buying in the neighborhood where his listing is located speak Russian. He also noticed a Russian grocery store right by the neighborhood that was attractive. He decides to stop the advertising the property and started adverting the property on two different Russian internet sites. This is: A. acceptable because internet advertisements are unregulated B. unacceptable because of its discriminatory nature C. acceptable if the advertisement includes no preferential language D. unacceptable as it is an example of steering
C
The buyer was given a Loan Estimate at the time of the application for the mortgage and it is now three business days before the closing. The appraisal and the Closing Disclosure have been given to the buyer. The buyer's broker meets her client at the property for a walk through and to review the documents. Which of the following occurrences will result in the buyer having the right to an additional three days to review the documents? A. there was a mathematical error on the proration of taxes of utilities B. appliances are missing even though the seller agreed to include them C. the loan product was changed from a fixed rate to one that is adjustable D. there was an omission in the property disclosure of a recently discovered special assessment
C
The lease agreement has terms specifically prohibiting pets. What information is crucial for a real estate professional to consider before denying the lease if the prospective lessee is an elderly individual who owns a pet dog? A. Fair housing act guidelines that protect the landlord B. whether accommodations are required for elderly individuals C. whether the applicant's pet is a registered guide or service dog D. the definition of "reasonable accommodations" for elderly persons applying to rent
C
The real estate licensee handling a transaction has the right to advise the parties, complete needed paperwork, verify all parties are in compliance with transaction requirements and receive confidential information about the parties. However, she may not negotiate or advocate for the parties and must disclose all known material defects about the property. In which capacity is this licensee acting? A. as a non-agent B. as a special agent C. as a general agent D. as a disclosed dual agent
C
The statement " a contract for transfer of an interest in land must be in writing," best defines which of the following real estate concepts? A. acknowledgment B. mutual consent C. statute of frauds D. statute of limitations
C
You're a broker with a large company. The company's relocation has given you a referral for someone who is selling a home in another state and moving to your area. Your first contact with him is by phone. You discuss agency and fax documents for him to sign. The prospective buyer indicated he has $500k to purchase a property and he would like to have enough land to raise horses. You locate a 25 acre site with a 3 bedroom brick house. The buyer likes it. He has a few concerns but wants to move forward with offer. Inspection of a dump site on the property indicated the cleanup will cost approx 30k, which you believe to be high. The buyer accepts the cost and wants to close. Which is appropriate? A. tell him the estimate of the cost for the dump site is unreliable B. support the buyers choice for purchase without question C. be sure the offer includes acknowledgment of all disclosures D. document that you advised against making an offer E. recommend a second estimate from another vendor F. recommend that the seller pay for the cleanup
C
to be a proper legal description, a recorded plot must be filed with? A. secretary of state which the land is located B. city office that approved the plat C. county records map records D. the states records office
C
which of the following best completes the following metes and bounds description? beginning at the intersection of bunker hill road and munson avenue, thence 150 feet south, thence 85 feet west, thence 150 feet north, thence: A. 150 feet south to POB B. 150 feet west to POB C. 85 feet west to POB D. 85 feet east to POB
C
Fred is a licensee at ABC realty and he has a listing to sell 123 Main St. The listing will not expire for 70 more days. If Fred decides to move his license to QRS Realty, what is the status of the listing? A. Fred cannot qualify for any part of the commission even if Fred finds a buyer who purchases 123 Main St during the listing period B. It is Fred's listing so he will automatically get the listing commission when the property sells regardless of the change of brokerage companies C. Fred can inform both the seller and the principal broker of ABC Realty that he is moving the listing to QRS Realty and continue to market the property D. The listing belongs to the firm, ABC Realty, and the rights to a commission if the property sells during the listing will be determined by the policies of ABC Realty
C or D?
Which of the following is NOT a good reason to recommend the seller provide a home warranty? A. The National Association of Realtors statistics show homes with a warranty sell 15% faster B. Purchasing a home warranty is a good method of risk reduction for a seller to consider C. the fee the home warranty company pays will increase the cash flow for the brokerage D. sixty-eight percent of used homes will have a major system failure the very first year purchased
C or D?
A broker has just submitted a purchase agreement to a seller for his client Mark. In order to protect his client, the broker wrote into the contract "offer is subject to buyer's obtaining a loan at an annual interest rate no higher than 5.5%." If the prevailing rate for the type of loan that Mark has applied for is 6 percent, what is the outcome if the seller were to accept this offer and Mark qualifies for the prevailing rate? A. The seller could cancel the agreement because Mark's broker added something to the purchase agreement B. marks broker would have to submit a commitment letter within 3 days of the contract C. the seller is automatically covered because the loan contingency was 17 days D. the loan contingency allows the buyer to cancel the escrow
D
A broker is assisting a trainee in listing an older home in a very stable part of the city. The sellers have owned the home for 45 years, and they mention that when the property next door was enlarged and modernized years ago, the added second floor overhang adjacent to the seller's property may actually come across the property line above their property. Since their home is set back 20 feet from that side, they did not impact their value. How should the broker advise the trainee to handle this situation with the sellers? A. Ignore the sellers' concern and proceed with the listing B. advise the sellers to get a property survey to determine if there is an encroachment C. take a measuring tape and, after locating the property line, measure the length of the overhang compared to the setback of the ground floor of the neighbor's house D. send the trainee to the city zoning office to view the plans for the addition to the neighbor's house and the plot plan that goes with it, to check for any possible setback violation or encroachment
D
A salesperson represents the seller of a commercial property. The salesperson tells the buyer a new highway exit ramp will be built within six months to give access to the property, although that is only one of the several possibilities being considered by local planners. The exit ramp is subsequently located elsewhere. Could the salesperson be liable to the buyer for the statement about the ramp? A. no, statement was salesperson's opinion B. no, the statement was puffing C. yes, the statement was puffing D. yes, the statement was a material misrepresentation
D
An agreement between brokers to charge a specific commission rate A. violates fair housing laws B. is unethical, though technically legal C. violates RESPA D. illegally inhibits competition
D
May a licensee who is NOT the listing agent hold an open house for the listing broker within the same company? A. yes but the licensee would have to disclose to visitors that only the listing broker could write up an offer B. no, because the licensee does not represent the seller and it would be a conflict of interest C. no, the licensee would need to sign another listing with the seller to hold the open house D. yes, this would be allowed with appropriate disclosure and permission from the seller
D
The TILA-RESPA Integrated Disclosure (TRID) Rule requires a loan estimate document provided by the lender. Approx when should the broker advise the borrower to expect the loan estimate? A. immediately upon loan application B. at least 24 hours prior to the closing C. exactly 10 days before the loan consummation D. not more than 3 days after the lender receives the loan application
D
The current real estate market has been booming for the last 5 years and there is still demand for properties, though the market has slowed for both rental and sales. Recent ananysis of the area's job market shows a rise in unemployment and stagnant wages, though living costs are still rising. For the last few years, the area has welcomed a steady influx of new residents, but this has almost stopped as job opportunities decline. A real estate broker has been asked by a homeowner whether to sell now or wait to sell until the market goes higher in the next year or two. Given the facts, what course of action would a prudent professional recommend to the seller? A. selling the property now, as the market appears likely to adjust downward B. renting the property until the market peaks in a few years, then selling it C. holding the property for another year, as the market runs in seven year cycles so further appreciation can be expected D. holding the property until it reaches the level of appreciation the seller is seeking, as the market will continue to appreciate
D
The purchase and sales agreement provides for release of earnest money to the seller after the buyer's property inspection. The seller requests the earnest money prior to inspection. The broker should: A. release the earnest money to the seller immediately B. notify the buyer of the broker's intention to release the earnest money to the seller C. release the earnest money on the buyer's verbal approval D. refuse to release the earnest money
D
Two buyers are financing $150000 at an interest rate of 6% on a fully amortized loan. If they can only afford a monthly paymeny of $900 for principal and interest, what is the shortest term loan they should obtain? A. 15 years B. 20 years C. 25 years D. 30 years
D
What is the common expression used in purchase agreements that is meant to protect both the buyer and seller from delays in closing but could also lead to one of the parties being in breach of contract? A. novation B. partial performance C. statute of limitations D. time is of the essence
D
What possible consequence would the knowledge of a Megan's Law registrant in the neighborhood cause? A. this should have no effect on the values as that would be deemed to be discrimination of a protected class B. commercial properties may decline in value due to the presence of a contamination in the soil and ground water C. real property values will increase due to the additional police patrols this may generate in the neighborhood D. values in a single family, owner occupied neighborhood may decline due to the presence of a convicted sex offender
D
When a foreclosure sale of a property does not produce sufficient funds to cover the loan balance, the mortgagee may be entitled to a personal judgement against the mortgagor. This personal judgment is called: A. a statutory redemption B. an equitable right of redemption C. a default judgement D. a deficiency judgement
D
When buyers move into their new house, they see that the ceiling fan in the dining room is gone and bare wires are hanging from the hole. The ceiling fan was NOT mentioned in the offer to purchase. Did the seller's have the right to take the ceiling fan? A. no, because it was a fixture to the house B. no, because it was chattel C. yes, because it was the seller's personal property D. yes, because it was not referenced in the contract
D
When is it appropriate to use the tax accessor's parcel number as a legal property description? A. it is appropriate only in a quitclaim deed B. it is appropriate as long as it is assigned a unique parcel number C. it is appropriate only if doing so has been approved by the county clerk D. never, it is only useful as a general means of identifying a particular parcel
D
When the seller lacks knowledge of an item on the property condition disclosure, the listing agent should A. provide an implied warranty instead B. waive all inspections C. complete the form for the client D. notify the buyer's agent
D
Which of the following statements is true concerning an unrecorded deed? A. it is not valid between the grantor and grantee B. it need not name the grantee C. it need not contain a legal description D. it does not give constructive notice of ownership
D
Which of the following would most likely cause housing prices to fall? A. the opening of a new business hiring 250 engineers B. the sale of 3 luxury homes in the neighborhood C. a shortage of properties on the market D. a sharp increase in interest rates
D
Why do state laws require brokers to maintain trust accounts if they handle any funds that belong to their clients or customers? A. to make it easy for the state to track the disposition of such funds B. the simplify the auditing of a broker's business accounts C. the make commingling and conversion impossible D. the ensure the client funds are clearly identified and accounted for
D
You are the supervising broker of a real estate company. On August 1, one of your licensees listed a house owned by an investor client. On August 10, a full price offer was received from the buyer's agent, a licensee with a cooperating real estate company, and accepted by the seller. The buyer's agent indicated that the buyer is a transferee. The sale is to close on September 10, but on Sept 5, the buyer's agent informs the seller's agent that his client is not going to close and wants the earnest money refunded. Your firm is holding the earnest money. Which information is the most critical to be obtained? A. the amount of transactions the buyer's agent has completed B. the number of times the buyer's agent met with the buyer before making the offer C. the reason why the buyer is not closing D. verifying if there is a clause in the purchase agreement regarding the disbursement of earnest money following default E. what the source of the earnest money is F. if the buyer's agent tried to sell the buyer something else
D
A broker believes that, as every agent is licensed and has had the required prelicense education in real estate law and practice, he does not need to provide any training. In addition, all of his agents are independent contractors. He provides only a handbook of company policies. One of the broker's agents commits fraud but claims that he did not understand the situation due to a lack of training, and blames the broker. The broker claims that it was the licensee's responsibility to ask for the broker's help if he was unsure about correct procedure. In this case, who will be subject to disciplinary action? A. the agent and the broker are both subject to discipline B. the broker alone is subject to discipline for his failure to train his agents C. the agent alone is subject to discipline, as the fraud was a result of his failure to seek counsel D. the broker will avoid disciplinary action, as training of independent contractors is not required
A
map question.. How should the broker advise Dr. M with regards to offering for either property? A. advise him that the vet property' existing commercial zoning means he would not need to worry about being able to use the property for the purpose he intends B. point out that the utility easement would be perfect for a dog run, and could be permanently used for that purpose even though a building could not be built with the easement C. if he decides to offer for the existing vet facility, suggest that he make the offer contingent upon receiving client contact info for the retiring vet's clients D. urge him to include a zoning verification contingency if he offers for either, including making sure that a vet practice falls within ordinary commercial zoning without requiring a variance
D
An investor has come to the broker because he may be interested in selling one of his residential income properties. His family has owned the eight unit building for several years and have kept accurate records of income and expenses. The investor brings out a file of lavish improvements that he has completed inside each of the units...granite counters, marble floors, etc. He has no idea what the property is worth and has asked the broker to tell him what his potential profit will be before he agrees to list it. In this situation, what is most important for the broker to explore before counseling the investor and putting his units on the market? A. be honest with the investor and tell him he was foolish for spending so much money on rental properties and he should keep the property until he is able to depreciate all the improvements over the next 31 years B. establish what the expenses, income, and vacancy rate of the investor's building is, and then do an analysis using 4 or 5 comparable 8 unit buildings that have sold in the same area over the past 6-9 months to come up with the market value. Then the broker could estimate the inestor's profit C. explain that he will develop his opinion of value by using the income approach and that the investor may not be able to recover all the cost of his improvements D. confirm the purchase price that was paid 8 years ago so he will be able to accurately depreciate the property to come to his present market value E. advise that he is not an appraiser, but would be happy to complete a sales comparison to develop an opinion of value and add the cost of his improvements to calculate the present market value of the property F. Explain that the property's market value will reflect comparable sales with lower quality improvements and that the investor will not get back all his expense of improvements. The broker will assign them some value and hope to recapture some of the investor's costs
E
A broker has listed a home in a horse property area that is now surrounded by suburban residential subdivisions with much smaller lots. The listed property is immediately adjacent to a new subdivision and the city is demanding that the road separating the listing from the residential lots must be paved. There have already been neighborhood hearings regarding a proposed special assessment affecting both the horse property owners and the subdivision developer. Condemnation of some land to provide enough space for the road plus sidewalks is also being considered. Since there have been no formal actions on either of these properties, the sellers instruct the broker not to disclose the meetings to any potential buyers. What are the broker's obligations? A. the broker must inform the sellers that she has a duty to disclose these material facts even if the sellers prefer not to disclose B. the sellers are correct. Since no formal governmental action has been taken, there is no current lien or other impairment of the property. if anything specific happens, it will be public record and therefore no private disclosure would be needed C. since the horse property has been in place for some time, these obligations will fall entirely on the developer of the new subdivision. The city cannot do anything to change the horse property or take away any land, so there is nothing to disclose D. the fact that public meetings have been held places these proposals "in the public domain" and any potential buyer is obligated by law to research such property conditions. The sellers and their broker need not mention mere speculation as a factor affecting their property
A
A buyer is purchasing a bank owned property. The broker explains the type of deed she will be receiving only promises that the bank has the right to sell the property and that they have not encumbered it. What type of deed will the buyer most likely receive? A. special warranty B. general warranty C. trustee's deed D. deed in lieu
A
A complainant in a discrimination case under the Federal Fair Housing Act MUST prove A. only that discrimination has occurred B. that discrimination occurred and was not provoked C. that the accused party intended to discriminate D. that damages occurred
A
A property that is under contract is damaged by a storm before the title is transferred. What action should the listing broker take with respect to the damage caused by the storm? A. estimate the damages and guarantee that the damage will be repaired before closing B. advise the seller that the contract is invalidated by the changed conditions C. Keep the information confidential since the broker represents the seller D. Disclose to buyer that a storm damaged the property
A
A prospective seller has arrived to discuss a listing with a broker for a 3 bedroom, 1 bath house with a swimming pool and a 2 car detached garage. She explains to the broker that her mother had the property in a trust and she has two sisters that have equal share of their mothers estate. The house faces the freeway and the prospective seller says she has been at the house during rush hour and hasn't noticed any noise. There is also some kind of work going on in a vacant lot next to the house. What should the broker do next? A. ask to see her ID, copy of trust and review the preliminary report before she does anything further with the sale B. if in agreement with prospective seller, prepare a 6 month probate listing agreement C. have other siblings sign a release of liability form so the prospective seller can be the designated signor of all the paperwork D. gather information that is necessary to properly disclose the activity, construction, and noise in the neighborhood E. get in touch with holder of the mortgage and find out how long they have before the mortgage accelerates F. advise the prospective seller that it is not necessary to disclose freeway because the buyer will have constructive notice
A
A real estate licensee who tells a customer that a neighborhood may be undesirable because it is made up of a certain ethnic group is guilty of A. steering B. redlining C. blockbusting D. panic peddling
A
A subordination agreement is used to A. change the priority of mortgages B. initiate foreclosure proceedings C. pledge property for a loan without giving up possession D. assign rents to the lender in case of borrower default
A
Happy Trail community was just informed by the city that the entire subdivision will be assessed to [ay for a sewer line on one street in the community. Each lot will be assessed based on its front footage. Sally Seller, a resident of Happy Trail, is about to list her home. If she does so, she will need to include in the property disclosures the fact that the property is subject to a A. special assessment B. utility assessment C. sewer ad valorem tax D. special community assessment
A
In conducting a real estate appraisal, a reconciliation process will be necessary because A. different approaches to value will yield diff estimated values for the same property B. It is the only means of reaching a reasonable estimate of market value C. the appraiser's estimate of market value needs to be reconciled with the assessed value listed on the tax rolls D. the appraisal cannot be considered reliable without it
A
The effect of loan discount points on the yield is to A. increase the yield to the lender B. decrease the yield to the lender C. increase the yield to the seller D. decrease the yield to the seller
A
Which of the following situations automatically terminates an offer to purchase real estate? A. the impending death of the offeror or the offeree B. acceptance of the offeree C. revocation by the offeror after being notified of the offeree's acceptance D. failure to accept the offer within the time stated therein by the offeree
A
A buyer wants to purchase a home for $260000. The lender appraises the home for $225000 and offers to finance it with an 80% loan to value loan, charging a loan origination fee of 1.5 points. How much will the buyer's loan origination fee be? A. $2700 B. $3120 C. $3375 D. $3900
A $225000 x .8 percent = 180K 180k x 1.5% = $2700 divide by 100 to get that decimal percentage
The purchase price for a new home was $230000. The buyer put down 20%, and the balance was a mortgage for 80% of the purchase price. The appraised value at the time of closing was $250000, and the assessed value was $220000. What will the buyer pay for one year's property taxes if her tax rate is 0.2%? A. $440 B. $500 C. $3680 D. $4600
A assessed value of property x tax rate so... $220000 x .002 = $440
A developer has a 100 acre tract to develop. 2% of the land will be used for recreational areas and 10% will be used for roads and utilities. Acre lots selling for $32000. What is the potential gross income from the sale of this development? A. $2,816,000 B. $2,944,000 C. $3,200,000 D. $5,632,000
A take 100 acres - (100 x 2%) - (100 x 10%) = 88 acres 88 acres x 32,000 lot price = A
A 15 year old inherited some property from a grandparent. The 15 year old put the property on the market and accepted an offer. Could the 15 year old legally reverse the agreement to sell? A. yes, the contract is void because seller is a minor B. yes, the contact is voidable because seller is a minor C. yes, the contract is unenforceable because seller is a minor D. no, the contract is valid and may not be rescinded
B
A broker has a long term listing with his principal with a price that had been fully researched at the time of the listing a year ago. He had just been informed that property adjacent to his principal's property has been rezoned. This means that the principal's property is likely to increase significantly in value. The broker informs one of his investors, who buys the property at full price. This makes the seller happy after such a lengthy listing. Under the common law of agency, the broker: A. should have kept the news of the zoning change a secret B. did not provide full disclosure to his principal as required C. has served his principal well by securing full price for his property D. appears to have fulfilled all of his agency duties to his clients
B
A broker listed a property for $225000. An offer of $210000 contingent upon inspection comes in the first week and the seller accepts it. Another offer of $205000 comes in the second week. The seller accepts it as a secondary offer contingent upon the termination of the first offer. The first offeror demands the seller spend $5000 in repairs before going through with the purchase. The seller may do all of the following EXCEPT: A. agree to do the needed repairs and consummated the transaction with the first offeror B. ignore the demand and sell the property to the second offeror C. terminate the first agreement in writing and sell to the second offeror D. refuse to do the repairs and still proceed with the sale as is condition
B
A broker supervises 73 licensees. One of his licensees as recently developed a market selling accessible housing for persons with disabilities. One of her clients who is wheelchair bound calls you claiming misrepresentation in her advertising. The client tells the broker she signed an agency representation agreement with your licensee because the home page of her website advertised accessible condos. The licensee showed the client two ground level units, but they did not have the bathrooms adapted for wheelchair use. The client is upset and suggests that you fire your licensee and help her fid appropriate property. What should the broker do? A. inform her that internet websites are not advertising, so your firm's policies and advertising laws do not apply B. ask whether she would be interested in either of the units if the bathroom were modified for use C. arrange a meeting with client and the licensee to discuss the situation D. tell her that by signing the representation agreement, she owes a commission to your firm E. let your licensee take care of the situation F. supervise licensees when setting up individual websites
B
A city has determined the next fiscal year they'll need to raise $1,240,000 in real estate tax revenue. The assessed value of all real estate within the city is $310 million. City establishes mill rate of .004. property owners home is assessed at $210,000. Next fiscal year, what will property owner pay in taxes? A. $496 B. $840 C. $1,240 D. $1,476
B
A conditional use permit allows an individual landowner to deviate from A. deed restrictions B. zoning requirements C. environmental requirements D. building codes
B
A landlord frequently uses a master key to enter his rental houses without the tenant's knowledge when they are not there. He checks to make sure the tenants do not have pets and that they are not damaging the property. Which of the following is true regarding this practice? A. it is legal because the property belongs to the landlord and he has a right to supervise its use B. this is a violation of the implied covenant of quiet enjoyment in the lease C. this would be a violation of the federal Fair housing Act D. this would be a violation of the tenant's freehold estate in the property
B
A person is willing to pay $100 a month and nothing more to rent a heated garage. Which of the following types of leases is most appropriate? A. net B. gross C. ground D. indexed
B
A property is listed at $450000 and the prequalified buyer believes no additional financing will be needed. The buyer is then notified the property is encumbered with a $30000 mortgage. The buyer's agent advises the buyer to assume equity by paying the $30000 mortgage. The sales contract is accepted with no mention of existing mortgage terms. The closing statement reflects the price of the property at $450000 with a credit for $30000 mortgage. The deed to the buyer was exempt and the loan did not fund. When the mortgage debt was not paid, the mortgagee foreclosed. Who is liable for this foreclosure? A. buyer B. mortgagee C. buyer's agent D. seller's agent
B
A property owner cannot build a home on his lot and still meet setback requirements because of a steep upgrade at the back of the lot. In order to build, the owner will most likely apply for A. an amendment to zoning B. a variance C. a conditional use permit D. spot zoning
B
A real estate agent uses inappropriate comparable properties for purposes of valuation in a comparative market analysis to help her buyer client determine a reasonable offer. Which outcome below would expose the agent to liability? A. an under-secured loan B. a mortgage not funding C. an inflated appraised value D. a buyer overpaying for property
B
A seller is unhappy with the effort being put forth by the listing broker and wishes to terminate the listing and relist the property with a different broker. How shall the second broke advise the seller? A. tell the seller to send certified notice to the listing broker terminating their relationship. A listing is unilateral contract which may be terminated any time by the principal B. tell the seller to ask the listing broker to agree to terminate the listing. Agency is a bilateral relationship which may be terminated by mutual agreement of the parties C. advise the seller to record notice of termination at the registrar of deeds, thereby severing all connections with the listing broker and permitting the seller to enter a new listing agreement D. the seller may withdraw the listing from local MLS and enter into a listing agreement with a new broker at anytime, as a listing is a service contract and may be terminated whenever the service is being rendered unsatisfactory
B
A sole proprietor broker wants to keep her office procedures as simple and streamlined as possible. She instructs her accountant to set up a single bank account with sub-accounts in the books to keep track of business operations in one area and trust account requirements in a different sub-account. She writes a special instruction for anyone depositing funds including herself or her assistant to be absolutely certain to keep all trust funds and closing proceeds separate from operating funds. She even has a separate checkbook on this account for each function. Would this structure provide sufficient protection for funds held in trust for others and why or why not? A. yes, because the bookkeeping would separate the functions and the two checkbooks would show what was used for which function, this procedure would provide the protection needed B. yes, because when state regulations require separate accounts, it is generally possible to keep separate sub-accounts as long as the bookkeeping allows the broker to identify exactly how much of the money is held in trust at any specific time C. no, because this single account would now have multiple owners including many for whom the money is held in trust, the FDIC insurance would not protect the owners from fraud or commingling D. no, because funds belonging to others must not be commingled with funds belonging to the broker or brokerage, and in the procedure outlined, all of the funds would be in a single bank account, so they would be commingled no matter how careful the bookkeeping was
B
A tenant with a disability may reasonably make reversible changes in the physical structure of an apartment to accommodate the tenant's disability if the A. owner is aware of it and gives permission B. tenant pays for the modifications C. other tenants are also permitted to make mods D. apartment is in a building with 4 or more units
B
An exclusive buyer agent is meeting with her buyers to complete an offer to purchase a property. The buyers mention that they noticed indications that the roof leaks. The property condition form completed by the sellers has no mention of any roof problems. What obligation does the buyer's agent have to the buyers beyond showing them the property condition disclosure form? the buyer's agent should: A. have the roof inspected before writing an offer on the property B. recommend that the buyers have an inspection made C. insist that the buyers not make an offer until the roof issue is settled D. encourage the buyers to wait until there is a rain before deciding the roof leaks
B
Brand and Joan Downing purchase a home for $150000 that appraised for $152000. Their earnest money deposit is $1000. They will make a 20% down payment, loan costs are $1750, title insurance is $560. Homeowners insurance is $685. Recording fees $60 and closing fee $318. How much money do the Downings need to bring to closing? A. $33373 B. $32373 C. $32873 D. $33873
B
Buyer broker Polly is representing a retailer who is interested in purchasing, with bank financing, a vacant former gas station to redevelop into a doughnut shop. What environmental reports will the lender likely require of the buyer and why? A. a phase ll assessment, which will involve sampling of the soil and water around the property to determine the presence of hazardous substances B. an environmental impact statement (EIS) as this report contains information regarding the effect of the proposed project on the environment of the area. C. a phase l assessment, which will involve both on site visual inspection and relevant interviews. This will insure that the property was properly maintained D. an environmental report meeting the cercla criteria within 2 years prior to the date of the acquisition of the subject land, as this report will provide innocent landowner defense to the brownfields revitalization and environmental restoration act.
B
Fred is the holder of a right of first refusal on a piece of property. The owner has decided not to sell. What action may Fred take? A. as the owner is in breach of contract, Fred could petition the court for liquidated damages B. Fred has no recourse but to wait as the owner is under no obligation to sell the property C. the owner could sue Fred for breach of contract and force specific performance D. Fred could sue the owner for breach of contract and force specific performance
B
The subject property only has one bath but it does have a fireplace. The house next door, which sold for $180,000 last week, has 2 baths and no fireplace. The house across the street, which was sold recently for $175000 has only one bath and no fireplace. Experience in that area sets the value of an extra bath at $5000 and a fireplace at $3000. What is the indicated value of the subject property? A. $175000 B. $178000 C. $180000 D. $183000
B
When can a non licensed individual acting as an independent contractor for a broker represent a property owner? A. when the independent contractor acts according to requirements of real estate law B. when representing the property owner, the independent contractor must be licensed C. when the individual does not represent renters while handling rental properties D. when the individual represents themselves as a real estate professional
B
Which of the following is the most correct regarding a seller's rights when she has countered an offer to purchase and another offer is presented? A. the seller must wait for either an acceptance or rejection of her counteroffer before accepting the new offer B. the seller may accept another offer if she first cancels the counteroffer before its accepted C. the seller must give the same counteroffer to all offerors D. the seller may accept the second offer, even if she has received notification that her first counteroffer is accepted
B
An exclusive right-to-sell listing obtained by a salesperson belongs to A. the seller only B. the broker only C. the salesperson only D. both the salesperson and broker
B Exclusive Right-to-Sell Listing is generally a contractual agreement under which the listing broker acts as the agent.
A buyer has specified in writing an interest in purchasing a property without any legal obligation and without defining a specific project. This is referred to as: A. an option B. no binding option C. a letter of intent D. a project intent letter
C
A buyer's broker is aware that a lot adjacent to the home the buyer is considering was occupied by a dry cleaning company for 15 years. What is the broker's responsibility regarding this knowledge? A. the buyer's broker has no responsibility unless environmental contamination has actually been identified B. the buyer's broker must disclose to the buyer but may not inform the listing broker C. the buyer's broker must disclose to the buyer and should inform the seller's broker D. the buyer's broker should disclose this information directly to the seller
C
A licensee just attended a class using social media to further her real estate sales career. She was so excited about the class that she immediately came home and signed up for facebook, twitter, and linkedin. She has chosen a listing to market via social networking, a residence recently built to resemble an antebellum mansion. Which of the following phrases or words may she lawfully include in her advertising? A. updated antebellum B. antebellum mansion C. antebellum style mansion D. beautiful "antebellum" estate
C
A loan is offered and later there is a change in APR of 0.125%. What will be required to close? A. an expedited closing B. a shortened loan term C. a revised closing disclosure D. a notification from the Consumer Financial Protection Bureau
C
A real estate brokerage firm provides management services to the owner of an apartment complex. During their business relationship, the apartment building catches fire and three tenants die. The surviving family members sue the owner of the complex as well as property management company for wrongful death, alleging negligence in the maintenance and control of the building, as well as failure to keep the property safe. Who would be liable in this scenario? A. the owner of property is solely liable B. the inspection and engineering service vendors are liable C. the owner and the brokerage firm are liable for professional negligence D. the errors and omissions insurance would cover this incidental occurrence
C
