Real estate

As a residential property manager, Finn can independently make decisions regarding the dayto-day operations of the apartment building he manages. He can hire contractors, screen tenants, pay bills, and enforce lease provisions. What kind of agent is Finn? Cooperating General ' Limited Special

General: Property managers are general agents for owners, which means they're authorized to perform all of the duties related to the property on the owners' behalf.

A property manager has just met with Lena, who is interested in renting a vacant unit. What's the best way for the property manager to determine how reliable Lena will be with rent? Ask Lena what her credit score is. Decide that because Lena was on time and professionally dressed, she will be good for her rent. Get permission in writing from Lena to run a credit report. Wait and see if the check for her security deposit is goo

Get permission in writing from Lena to run a credit report.

An investor is analyzing a property by looking at its ability to produce future income. The property is a 10-unit apartment building. Which of the following would be used to determine this value? Effective gross income Gross income multiplier Gross rent multiplier Potential gross income

Gross income multiplier: Remember, rent has four letters. Gross rent multiplier is used for income-producing properties with four or fewer units. Properties with five or more units use gross income multiplier.

Appraiser John is determining how a property is being used to determine a more optimal function. What is he determining? Cost to replace Highest and best use Mortgage value Value in use

Highest and best use

What economic principle is related to a property's most profitable use that is both legal and economically feasible? Anticipation Contribution Highest and best use Progression

Highest and best use

About 50% of the borrowers in Neighborhood One are Hispanic, while only 4% in Neighborhood Two are Hispanic. The median home price in both neighborhoods is the same. However, statistics show that there is a significantly greater percentage of minority and lowincome borrows who were denied financing for loans on properties in Neighborhood Two and were offered lower rates to live in Neighborhood One. What act is intended to prevent this type of potentially discriminatory lending pattern? Community Credit Act Consumer Credit Protection Act Equal Credit Opportunity Act Home Mortgage Disclosure Act

Home Mortgage Disclosure Act

Which of the following duties does a licensee owe to a buyer with whom no agency agreement exists? Advocacy Confidentiality Honesty Loyalty

Honesty

Prior to the _______, there was no legal protection for women who endured sexual harassment from landlords and sellers when they attempted to obtain housing. Civil Rights Act of 1866 Fair Housing Amendments Act of 1988 Federal Fair Housing Act of 1968 Housing and Community Development Act of 1974

Housing and Community Development Act of 1974: The Housing and Community Development Act of 1974 included gender or a person's sex in the list of protected classes

At a listing appointment, licensee Chet asks Sam, the seller, if his property is his own home or an investment property. Why would Chet ask this? Chet can only represent sellers if they're selling their own home; selling investment properties requires a different license. If the home is his own, he's likely to be purchasing a new one, so Chet has a chance to land two transactions. Investment homes are easier to sell because they're sold "as-is." Investment home sellers tend to be more emotionally attached because the homes bring them more income.

If the home is his own, he's likely to be purchasing a new one, so Chet has a chance to land two transactions.

Which form of alienation occurs without the owner's consent? Adversarial Competing Involuntary Voluntary

Involuntary

Which one of the following options best describes the purpose of a sales contract? It identifies the buyer's agent/buyer agency relationship's terms. It identifies the landlord/tenant relationship's terms. It identifies the listing agent/buyer agency relationship's terms. It identifies the terms of a real estate sale between the seller and the buyer.

It identifies the terms of a real estate sale between the seller and the buyer

Sam and Bridget are cousins who jointly own property. They are both named on the deed, they received title at the same time, they have the right of survivorship, and they each have equal interest and undivided rights of possession. What type of ownership do they have? Estate in severalty Joint tenancy Tenancy by the entirety Tenancy in common

Joint tenancy: Joint tenancy is equal ownership with unity of time, title, interest, and possession. Tenancy by the entirety (in states where it's used) also requires the same four unities, but requires that the owners be married.

Jeffrey has accepted an offer of $310,000 for his house. The buyer is making a $50,000 down payment, and the buyer's appraisal came in at $300,000. On what number will the buyer's lender base the loan-to-value ratio? $249,000 $299,000 $300,000 There's no way to tell given the data provided.

$300,000:Lenders use the lesser of the sales price or appraised value.

The lender will charge a one-and-a-half-point origination fee and two loan discount points. What will be the total due for points on a $115,000 loan? $1,725 $2,300 $4,025 $575

$4,025: A point is 1% of the loan amount. Three-and-a-half points (one-and-a-half and two) is 3.5% of $115,000, or $115,000 x .035 = $4,025.

Vantagestar Ltd. would like to construct a high-end condominium complex. Where will they likely go for financing this project? A commercial bank A credit union A life insurance company A mutual savings ban

A life insurance company

Your seller clients have received an offer, and the buyer has included a pre-approval letter. Your clients are a little confused and think a pre-qualification letter is necessary. What's true regarding pre-approval and pre-qualification? A pre-approval letter comes with lender verification of buyer-provided data and provides more assurance to the seller. A pre-approval letter is based on buyer-provided information that isn't verified. Sellers should always insist on a pre-qualification over a pre-approval. The pre-qualification takes the buyer's complete financial picture into account.

A pre-approval letter comes with lender verification of buyer-provided data and provides more assurance to the seller.

Title One USA will hold the earnest money and provide closing services to Roger's client in the sale of his home. What form must Roger provide to the title company based on this information? A.Closing Instructions B. Closing Statement C. Earnest Money Receipt D. Earnest Money Release

A. Closing Instructions

Pat and Danielle are buying their first home. They don't have quite enough money saved for the down payment and closing costs. Who could give them a tax-free gift to help with the purchase? A credit union A local small business Any individuals, such as family members Pat's employer, Retro Renovation, Inc.

Any individuals, such as family members

How does a lender in the primary mortgage market earn money when a loan is originated? By charging loan origination fees By preparing tax records By purchasing loans By setting interest rate

By charging loan origination fees

What is the trustee's role when a deed of trust is used to secure property for a loan? A. To collect payments and service the loan B. To hold funds in escrow C .To hold legal title to the property on behalf of the beneficiary until the loan is repaid D. hold the note to the property on behalf of the trustor until the loan is repaid

C .To hold legal title to the property on behalf of the beneficiary until the loan is repaid

Which of these items is a demand deposit? 401(k) retirement account Checking account Home equity line of credit Individual retirement accoun

Checking account

The Federal Home Loan Bank lends money to member banks in exchange for what? Advances Collateral Equity interest IOUs

Collateral

A local company wants to build a new office building. What type of loan will it most likely be seeking from its commercial bank? Construction loan Conventional loan Home equity line of credit Home equity loan

Construction loan

The three types of finance instruments that can be used when financing a real estate purchase are the note with mortgage, note with deed of trust, and ______. Contract for deed Finance deed Promissory note Security deed

Contract for deed

In the event of foreclosure, the standard deed of trust allows the Colorado borrower to_________. Cure the default Redeem the property after sale Request a new lender Sue the lender

Cure the default

Which institution was created as the Federal National Mortgage Association in 1938? Fannie Mae Farmer Mac Federal Home Loan Bank Freddie Mac

Fannie Mae

Buys agricultural loans or loans issued by rural lenders Freddie Mac Farmer Mac Fannie Mae Federal Home Loan Bank Ginnie Mae

Farmer Mac

Advances funds to member banks Freddie Mac Farmer Mac Fannie Mae Federal Home Loan Bank Ginnie Mae

Federal Home Loan Bank

Which of the following are potential private loan resources that may be willing to finance a home? Commercial banks Commercial bonds Individual entrepreneurs Municipal bonds

Individual entrepreneurs

Commercial banks fall into which of the following category of lenders? Institutional lenders Non-institutional lenders Peripheral lenders Subsidiary lender

Institutional lenders

Which of the following is a true statement regarding Farmer Mac? It is also known as Fannie Mae. It is part of the primary mortgage market. It provides credit primarily to homeowners and businesses in agricultural and rural areas. It provides credit primarily to homeowners and businesses in urban areas.

It provides credit primarily to homeowners and businesses in agricultural and rural areas.

What type of provision is standard with either the mortgage or the deed of trust, but is included in the promissory note rather than the security instrument? Acceleration Alienation Late charge Power of sale

Late charge

Which person or entity works with many different lenders to find the best loan for the customer? Commercial bank Credit union Mortgage banker Mortgage broker

Mortgage broker

Your buyer client, Percy, wants to start searching for his dream house and knows he needs to obtain financing to accomplish that. What's his first step? Complete a loan application. Obtain a pre-qualification letter. Sign a purchase agreement. Write an offer.

Obtain a pre-qualification letter.

Monty retired 10 years ago and would like to see the world, but his retirement account won't support his desire to travel. Monty heard of a loan that would allow him to take advantage of the equity in his home by getting monthly payments from the bank by using his house as collateral. What is this type of loan called? Adjustable rate mortgage (ARM) Home equity line of credit (HELOC) Home equity loan Reverse annuity mortgage (RAM)

Reverse annuity mortgage (RAM)

Janice is planning to borrow money from her retirement savings. Which of the following is a true statement about her situation? Any funds she borrows will be subject to a penalty for early distribution. She can only borrow money from her retirement fund to build a house. She may borrow money from her retirement account to purchase commercial property. She should consult with a financial expert before withdrawing the funds.

She should consult with a financial expert before withdrawing the funds.

What would happen if your client's rate lock expires three days prior to closing? Nothing, there is a three-day grace period after the date of the lock expiration. The interest rate lock can be extended by paying an additional fee. The interest rate will revert to the current rates. The interest rate will revert to the rate at the time of the application.

The interest rate will revert to the current rates.

The signature lines on the multi-state Fannie Mae promissory note are set up for ______ to sign. The borrower The borrower and the seller The lender The lender and the borrowe

The lender

What does it mean when a life insurance company uses participation financing? The life insurance company gives a discount on the loan if the borrower allows them to help with the project. The life insurance company participates by finding the borrower the best lender for their project. The life insurance company participates by taking partial ownership of the project in exchange for funding the loan. The life insurance company pays exactly 50% of the loan, and the borrower comes up with the other 50%.

The life insurance company participates by taking partial ownership of the project in exchange for funding the loan.

What's used to calculate the loan-to-value ratio? Appraised value Down payment Sales price The lower of the sales price or appraised value

The lower of the sales price or appraised value

Anna is selling her home and met a nice young couple she really wanted to sell to, but they couldn't get financing. If Anna agrees to carry part of the loan for the buyers, what does she need to understand? Mortgage banking regulations Private loan regulations Real estate laws The risks involved

The risks involved

Who should sellers consult before agreeing to carry part of a loan for a buyer? Their financial advisor Their friends Their parents Their real estate professiona

Their financial advisor

Which of the following is considered an ineligible property type for which a loan to purchase or refinance wouldn't be purchased by Fannie Mae? Condominium Cooperative Single family residence Vacant lot

Vacant lot

When is a loan modification considered? When a borrower has missed payments but still has some financial security When interest rates have changed by more than two points since the loan was originated When the borrower has filed for bankruptcy When the lender sells the financial instrument

When a borrower has missed payments but still has some financial security

Which form of real property ownership (for owners other than married couples) means there's equal ownership shares with undivided possession rights? Joint tenancy Tenancy by the entirety Tenancy in common Tenancy in severalty

Joint tenancy: Joint tenancy provides equal ownership shares with undivided possession rights and requires four ownership unities: time, title, interest, and possession. Joint tenancy includes the right of survivorship

The term "right of survivorship" is closely linked with _____________________. A corporation A trust Joint tenancy Tenancy in common

Joint tenancy: Remember that joint tenancy is ownership of real estate by two or more parties.

Liz listed her property with an agreement end date of May 31. The property went under contract on May 12 and closed on June 2. When did the listing agreement officially terminate? June 2 May 12 May 31 Upon revocation by the agent

June 2

Which option best describes a dedication by deed? Land given to an individual after an adverse possession claim Land given to another person without consideration Land given to the government without consideration and for the public's use Land involuntarily taken through court order after a financial default.

Land given to the government without consideration and for the public's use

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

Jean and Ron have the temporary right to live at 555 Elm Street. They can come and go and use the property as they see fit, but they can't do so indefinitely. They must vacate the property at the end of next year. What sort of interest do they have in 555 Elm Street? Fee simple estate Leasehold estate Life estate Reversionary estate

Leasehold estate

Selma and Richard have the temporary right to live at 123 Elm Street. They can come and go and use the property as they see fit, but they can't do so indefinitely. They must vacate the property at the end of next year. What sort of interest do they have in 123 Elm Street? Fee simple estate Leasehold estate Life estate Reversionary estate

Leasehold estate

A ______ is used to accurately identify property for transfer. GPS coordinate designation History of ownership Legal description Property address

Legal description

Joe is drafting an easement agreement allowing his neighbor to use his boat ramp. In addition to the legal property description and sketch, which of the following details should also be included in the easement agreement? Abandonment agreement Liability and responsibility assignment Servient estate's promise not to use Statement of necessity

Liability and responsibility assignment

Which type of analysis that a property manager performs includes a review of the demographic, geographic, and governmental environment in which the property is located? Analysis of alternatives Competitive analysis Market analysis Property analysis

Market analysis

A legal description can contain ______. County clerk's name Developer's name Metes and bounds Title abstract

Metes and bounds

Financing for a real estate transaction can use a note with a ______ or a note with a deed of trust. Mortgage Negotiable instrument Promise to repay Title

Mortgage: The mortgage is a security instrument that describes the security for the note

In which of the following situations would an agent be representing a customer in a real estate purchase? Any time Never When the agent has his broker's permission When the agent has his broker's written and signed permission

Never

Mardee represented condo owner Carol, and they signed an exclusive agency listing agreement. If Carol found her own buyer, would she owe Mardee a commission? No, because Carol is not a real estate licensee. No, because Carol procured the buyer. Yes, because they have an exclusive agency listing agreement. Yes, but she only owes the listing commission.

No, because Carol procured the buyer: It's easy to confuse the types of listing agreements. With exclusive agency, the seller retains the right to sell the property and not pay a commission. Exclusive right to sell agreements guarantee payment to the listing agent no matter who brings the buyer

When market conditions indicate top-of-the-market pricing, is it always in your client's best interest to price it there? No, because higher sales prices result in higher taxes. No, it still has to appraise. Yes, because it's probably what will win the listing for you. Yes, because it will sell fast.

No, it still has to appraise.

What's the formula used to calculate vacancy rate? Number of vacant units ÷ total units Number of vacant units x total units Period of time ÷ number of vacant units Total units ÷ number of vacant units

Number of vacant units ÷ total units

What term is used in the Dates and Deadlines section to indicate items that require resolution? Concerns Disputes Objections Resolution

Objections: Items the buyer disputes are called objections. For example, the Inspection Objection Deadline is the deadline for the buyer to complete and submit the Inspection Objection form outlining requested repairs to the property.

Investing in capital improvements to a property is one way to stall _______. Cash flow Competition Obsolescence Vacancy

Obsolescence: Investing in capital improvements to a property is one way to stall obsolescence, which is the end of a property's useful life

Mary, who's suffering from Alzheimer's disease, signs a contract to buy Edgar's home. Before the deal closes, it's determined that Mary lacks legal capacity to enter into a contract. Which party is permitted to void the contract? Nobody Only the buyer, Mary Only the seller, Edgar The seller or the seller's agent

Only the buyer, Mary

Gretchen and Sam are in the market for a new home. They're doing some research on mortgages at home and are comparing many of their options. What are they using? Closed CLO Common sense Due diligence Open CLO

Open CLO: Open CLOs can be accessed directly by the consumer from home.

James, a seller, signed a listing agreement that allowed him to contract with multiple agents but only pay a commission to the agent who located a buyer. This type of listing agreement is called ______. Exclusive agency Exclusive right to sell Open Seller's choice

Open: Think of an open listing agreement as a free-for-all. Only the licensee who locates the buyer will be paid. If the seller locates the buyer, no commission is owed.

After signing a purchase contract, buyer Pam and seller Waylon both realize that the address for Pam's newly-purchased home reads "344 Beverly Way" instead of the correct address: "334 Beverly Way." Which of the following is true about this situation? Pam has clear evidence that Waylon tried to trick her. Pam or Waylon can void this contract and present a new one with the correct address. The contract is invalid because there is no offer and acceptance. This is definitely a case of fraud.

Pam or Waylon can void this contract and present a new one with the correct address.

According to Colorado law, unless otherwise stated in a lease, which of the following is a lessee's responsibility? Maintain and repair the premises Make the premises habitable before the lease commences Pay rent at the end of the rental period Pay rent in advance of the rental period

Pay rent at the end of the rental period

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

Terrence has a costume shop in a commercial building. He has a one-year lease that automatically renews for another year unless either Terrence or the landlord terminates. What type of leasehold estate is this? Month-to-month tenancy Periodic tenancy Tenancy at sufferance Tenancy for years

Periodic tenancy

To check the creditworthiness of a prospective tenant, the lease application typically requests ______. A credit score A resume Educational background Permission to run a credit report

Permission to run a credit report

What is the name of the FTC regulation that requires a landlord or property manager to obtain a tenant's written consent before sharing any information about the tenant with an unaffiliated third party? Don't tell Fair play Get it in writing Privacy rule

Privacy rule

What can a transaction broker do for a customer? Advocate for the customer. Negotiate an agreeable price. Process paperwork. Recommend terms.

Process paperwork.

Your neighbors build a high-quality addition to their home, increasing its value compared to your own home's value. Because of this, you notice a bump in your property value. Which economic principle is at work here? Conditional value Price bump Progression Regression

Progression

The smallest property on the block is priced lower than any others, but the higher-priced properties that surround it help to drive the property's market value up. What economic principle is at work here? Anticipation Contribution Progression Regression

Progression is the bump in value that a lower-value property gets by being near a higher-value property.

The document that describes the loan amount and the terms for repaying and is attached to a security instrument is called the ______. Contract for deed Deed of trust Mortgage Promissory note

Promissory note

If a landlord takes away the tenant's right of _______, the tenant can claim constructive eviction and vacate the property with no further financial responsibility to the landlord. Acceptance Control Ownership Quiet enjoyment

Quiet enjoyment: If a landlord takes away the tenant's right of quiet enjoyment, the tenant can claim constructive eviction and vacate the property with no further financial responsibility to the landlord.

A homeowner has converted two rooms in his home to a rental unit. What does the "Mrs. Murphy" exemption permit him to do? Advertise for a tenant of a specific race. Move out of the property and rent both portions of it, relying on the "Mrs. Murphy" exemption to permit renting only to single females. Refuse to rent to a female tenant. Use the services of a real estate professional to advertise for a male tenant

Refuse to rent to a female tenant

The Real Estate Settlement Procedures Act is a consumer protection statute that ______. Prohibits lenders from denying credit to an applicant for a mortgage based solely on the location of the property in a certain geographic area Regulates the type and amount of fees and commissions that settlement service providers may charge to borrowers in a residential real estate transaction Requires lenders to disclose all credit terms in an advertisement for credit if any of the terms are given Requires lenders to provide the consumer with certain disclosures for residential real estate transactions and prohibits kickbacks among settlement service providers

Requires lenders to provide the consumer with certain disclosures for residential real estate transactions and prohibits kickbacks among settlement service providers

As a(n) ______ property manager, you know there's a lot more turnover in your area of expertise. Office Real estate development Residential Retail

Residential

Owning a condo on a golf course is Tom's goal, and Erma is happy to be along for the ride. The condo association takes care of maintenance, and Tom is steps away from the clubhouse at all times. What better way to spend their golden years? What type of buyers are Tom and Erma? First-time buyers Retirees Trade-down buyers Trade-up buyers

Retirees

Ron's company leased a building so that they could build an escape room experience. After operating for two years, their attendance (and thus their profits) started to drop significantly, so they decided it was time to close the location. When they started taking down the installation, they realized that some of the structures they built will damage the walls if they try to remove them. Which of these is true about these trade fixtures? If Ron leaves them in place and the lease expires, he has three months to remove them. Ron is required to leave the fixtures if they're attached. Ron is required to take the fixtures and return the premises to its original condition. Ron may take the fixtures as long as he repairs any damage caused by removal.

Ron may take the fixtures as long as he repairs any damage caused by removal.

When a buyer and seller enter into an agreement to transfer ownership of property, what type of contract will be used to complete the transaction? Buyer agency agreement Listing agreement Option agreement Sales contract

Sales contract

Annette really wants to move to San Francisco, but she's unsure whether she'll be able to afford to live there. Housing is very expensive because there simply is no room to build any new housing units. Which economic characteristic does this reflect? Area preference Improvements Permanence Scarcity

Scarcity

You're working with a buyer who's purchasing a home that appraised at $80,000. The buyer is obtaining a 90% loan, and the lender will charge a one-point origination fee at closing. How much will the loan origination fee be? $712 $720 $728 $800

$720

The purchase price of the home Leroy is buying is $300,000. He's putting $100,000 down and is paying three discount points. How much will this cost? $2,000 $4,000 $6,000 $9,000

$6,000: Each point is 1% of the loan value. The amount of Leroy's loan is $200,000, so each point is $2,000 ($200,000 × 1%, or .01). He's paying three points, for a total of $6,000 ($2,000 × 3).

Max has a dog that bit his neighbor. The neighbor sued Max, which resulted in a judgment against him. Max refused to pay the neighbor according to the judgment. The neighbor placed a lien against Max. How is this lien classified? A. Involuntary, general B. Involuntary, specific C. Voluntary, general D. Voluntary, specific

A. Involuntary, general

Contingencies normally include the responsible party's name, the deadline for the contingency removal, and _______ A. The actions required for removal B. The date the contingency was added C. The reason the contingency was added D. Three reasons why the contingency is required

A. The actions required for removal

Which of the following is considered an ineligible property type for a Fannie Mae-purchased loan? Agricultural property Detached residence on a lot Planned unit development project Semi-detached residence on a lo

Agricultural property

Who is responsible for completing the Seller's Property Disclosure form in Colorado? A.The home inspection agent B.The seller C.The seller's broker D.The selling broker

B. The seller

Who's the mortgagee in a mortgage? The beneficiary The borrower The lender The trustee

The lender

Glenn is purchasing a home for $400,000. The property appraised at $415,000 and Glenn is financing $300,000. What's the loan-to-value ratio? 72% 75% 82% 96%

75% ($300,000 ÷ $400,000)

Who or what entity directs the activities of credit unions? A board of directors A branch manager The head of the FDIC The NCUA chairperson

A board of directors

Roger has a buyer client who is purchasing a Colorado home built before 1978. Which two documents must Roger ensure that his client receives related to lead-based paint? A.EPA lead-based paint brochure and Lead-Based Paint Disclosure form B.EPA lead-based paint brochure and Residential Property Disclosure C.Lead-Based Paint Disclosure and Residential Property Disclosure D.Synopsis of the Lead-Based Paint Hazard Reduction Act and EPA lead-based paint brochure

A.EPA lead-based paint brochure and Lead-Based Paint Disclosure form

When a buyer takes over the seller's original loan with the lender's permission, this is called ______. A buyout An assumption A substitution S subject-to financing

An assumption

What is Colorado's standard residential purchase contract called? A. Agreement to Purchase Real Estate B. Contract to Buy and Sell Real Estate (Residential) C. Real Estate Purchase Contract D. Real Estate Purchase/Sale Agreement

B. Contract to Buy and Sell Real Estate (Residential)

Which one of the following options best describes the purpose of a sales contract? A.It identifies the buyer's agent/buyer agency relationship's terms. B.It identifies the landlord/tenant relationship's terms. C.It identifies the listing agent/buyer agency relationship's terms. D.It identifies the terms of a real estate sale between the seller and the buyer.

D.It identifies the terms of a real estate sale between the seller and the buyer.

Which one of the following options best describes a sales contract? A.A legally binding, oral contract between a property's potential buyer and a listing agent B.A legally binding, oral contract between a property's potential buyer and seller C.A legally binding, written contract between a property's potential buyer and a listing agent D.A legally binding, written contract between a property's potential buyer and seller

D:A sales contract is a binding, written contract entered into by a property buyer that property's seller.

A third party holds legal title to Jackie and Tom's house until their loan is paid off. What type of security instrument was used to secure the real estate transaction? Deed Deed of trust Free title Mortgage

Deed of trust

According to Colorado law, the ____________ is used as the security instrument to create a lien against the property. Contract for deed Deed of trust Mortgage Promissory not

Deed of trust

Your clients, the Nguyens, have signed a contract for deed to purchase a property. What rights do the Nguyens receive? Equitable and justifiable title Equitable and legal title Equitable and legal title and right of possession Equitable title and possession of the property

Equitable title and possession of the property

The contract Jack is signing has a clause that protects his assets from a deficiency judgment in case of foreclosure. What is this called? Cross-default Exculpatory Non-recourse Subordination

Exculpatory

Which of the following acronyms is used to represent Fannie Mae? FAMA FMAE FNIMA FNMA

FNMA:Federal National Mortgage Association.

Buys conventional loans, mainly from large commercial banks Freddie Mac Farmer Mac Fannie Mae Federal Home Loan Bank Ginnie Mae

Fannie Mae

Darryl's recently obtained a loan for the family farm. The lender will most likely sell the loan to __________________. Farmer Mac FHLB Freddie Mac Ginnie

Farmer Mac

The Federal Agricultural Mortgage Company (FAMC), created in the late 1980s, is more commonly known as ______. Fannie Mae Farmer Mac FHLBank Freddie Mac

Farmer Mac

From a secondary market player, Regional State Bank received an advance in exchange for collateral in the form or mortgages. Which entity likely issued this advance? Fannie Mae Federal Home Loan Bank Federal Reserve Freddie Ma

Federal Home Loan Bank

Buys conventional loans, mainly from small banks or thrifts Freddie Mac Farmer Mac Fannie Mae Federal Home Loan Bank Ginnie Mae

Freddie Mac

Guarantees MBSs that contain loans issued or guaranteed by a U.S. Government agency Freddie Mac Farmer Mac Fannie Mae Federal Home Loan Bank Ginnie Mae

Ginnie Mae

When a real estate transaction is financed using a contract for deed, what advice should real estate agents give to their clients? Have an attorney review the contract. Have an institutional loan officer review the contract. It would be wiser to use a mortgage or deed of trust. Make sure a promissory note is attached to the deed.

Have an attorney review the contract.

Carl is interested in the CHAC Down-Payment Assistance Program. In order to qualify, which of the following is required? He must agree to occupy the home as his principal residence for a period of at least two years. He must agree to pay back the funds within two years. He must be a low-income first-time home buyer. He must have at least $1,000 of his own money to apply towards the purchase.

He must have at least $1,000 of his own money to apply towards the purchase.

Which of the following loan types can be packaged into a mortgage-backed security eligible for guarantee by Ginnie Mae? Loans insured or guaranteed by U.S. government agencies Loans issued by commercial banks Loans issued by rural lenders Loans issued by thrifts

Loans insured or guaranteed by U.S. government agencies

In order to set an interest rate prior to closing, a borrower must _______ the interest rate. Float Lock Reserve Set

Lock

Which of the following is one of the desired outcomes of Freddie Mac's activities? Decrease liquidity in the U.S. housing market Increase interest rates on high dollar value loans Increase overall leverage in the U.S. housing market Provide stability in the U.S. housing market

Provide stability in the U.S. housing market

When an installment land contract is used in Colorado, the _________ will collect taxes, hold them in escrow, and pay them to the county treasurer each year. Colorado Department of Revenue Public trustee Settlement agent State treasure

Public trustee

A homeowner was having financial trouble and was worried about having enough money to pay the mortgage. Instead of falling behind, the homeowner met with a representative from the mortgage company servicing the loan. As a result, the mortgage payments are lower, and the homeowner is no longer at risk of missing a payment. Which one of the following options could be a reason the payments are now lower? The lender doesn't care if the loan is in default. The lender is supplementing the homeowner's payments with a grant fund. The lender modified the homeowner's loan terms. The lender told the homeowner to pay as much as possible.

The lender modified the homeowner's loan terms.

Select the choice that best translates this clause into plain English. "Upon payment of all sums secured by this Mortgage, Mortgagee shall discharge this Mortgage without cost to Mortgagor. Mortgagor shall pay all costs of recordation, if any." The borrower must pay all recording fees if the property is transferred to another owner. The borrower will be charged a fee when the loan has been paid off to ensure that the satisfaction of the note is recorded. When the borrower has fully paid off the loan, the lender will record that the note is satisfied. When the borrower has fully paid off the loan, the lender will retain the note that is satisfied.

When the borrower has fully paid off the loan, the lender will record that the note is satisfied.

If bobs quartley interest payments are 150 on a 12,000 loan the what is her annual interest rate

Yearly 150x4=600 annual percentage rate: 600/12000=.05=5%

Jessica hasn't paid the roofing company that replaced the roof on her home. The contractor placed a mechanic's lien on her property, which is a(n) ______ lien. A. Involuntary and general B. Involuntary and specific C. Voluntary and general D. Voluntary and specific

B. Involuntary and specific

Which of the following describes a mechanic's lien? A. It's a general equitable lien. B. It's an involuntary general lien. C. It's a specific involuntary lien. D. It's a voluntary statutory lien.

C. It's a specific involuntary lien.

Which of the following is an example of an involuntary, specific, statutory lien? A. Estate tax lien B. Judgment lien C. Materialman's lien D. Mortgage lien

C. Materialman's lien

A mortgage lien is a(n) ______ lien. A. Involuntary and general B. Involuntary and specific C. Voluntary and general D. Voluntary and specific

D. Voluntary and specific

Rich wants to add a room to his house, so he takes out a home equity loan. This creates a(n) ______ lien. A. Involuntary and general B. Involuntary and specific C. Voluntary and general D. Voluntary and specific

D. Voluntary and specific

Stephanie was having trouble making her mortgage payments. Now her payments are lower than they were, and she's able to pay them each month. This is because her lender ______. Gave her a loan modification Is preparing to foreclose and doesn't care if her loan is in default Is supplementing her payments with a grant fund Told her to pay whatever she could afford

Gave her a loan modification

What's the public trustee's role when a real estate transaction in Colorado uses the deed of trust as a security instrument? Acts as settlement agent at closing Assesses the amount of property tax to be paid into escrow Holds title to the property in trust while the loan is being repaid Records the transaction in county land records

Holds title to the property in trust while the loan is being repaid

Gina's mortgage payment arrives late one month. What language in the promissory note allows the lender to charge her a fee as a result? cross-default clause Late charge provision Lock-in clause Partial release clause

Late charge provision

In a deed of trust, who is the beneficiary? Agent Borrower Lender Neutral third part

Lender

The Morris family home went into foreclosure December 15, 2016, and sold January 1, 2017. Their contractor had begun work on May 15, 2015, and was not paid, and finally filed a mechanic's lien on October 1, 2016. What date will be used for lien priority for the mechanic's lien? December 15, 2016 January 1, 2017 May 15, 2015 October 1, 2016

May 15, 2015

Life insurance companies participate in real estate in the ______ arena. Construction loan Home equity line of credit (HELOC) Mortgage blocks from secondary mortgage market New home construction

Mortgage blocks from secondary mortgage market

While Fannie Mae considers total and housing debt-to-income ratios in its underwriting process, Freddie Mac considers ______. Both total and housing debt-to-income, as well as employment history Neither total nor housing debt-to-income Only housing debt-to-income Only total debt-to-income

Only total debt-to-income

Which of the following are types of computerized loan origination systems (CLOs)? Active and constructive Fixed and variable Implied and undisclosed Open and closed

Open and closed

What are the types of institutions that issue loans directly to consumers commonly called? Government-sponsored enterprises Primary market players Real estate brokerages Secondary market players

Primary market players

In which market do lenders that originate real estate loans operate? Government market Primary mortgage market Real estate investment trust market Secondary mortgage marke

Primary mortgage market

What does PITI stand for? Price, information, trust, interest Price, interest, taxes, insurance Principal, interest, taxes, insurance Public Insurance Trust Information

Principal, interest, taxes, insurance

Which of these is a CREC-approved form available to real estate licensees? Contract for Deed (Seller Financing) Loan Assumption Agreement Mortgage - Residential Promissory Note for Deed of Trust

Promissory Note for Deed of Trust

The secondary mortgage market serves a very important role in real estate finance. Which of these statements best describes that role? The secondary market funds junior mortgages. The secondary market makes loans to less creditworthy consumers. The secondary market purchases loans from primary lenders and helps keep credit available to loan originators. The secondary market regulates lenders in the primary market.

The secondary market purchases loans from primary lenders and helps keep credit available to loan originators.

Which of the following are ways a private loan company insulates themselves from the risk of lending funds to a borrower who has had problems securing them elsewhere? They may charge higher fees. They may charge higher interest. They may charge higher interest, higher fees, and require the borrower provide collateral to secure the loan. They may require collateral to secure the loan

They may charge higher interest, higher fees, and require the borrower provide collateral to secure the loan.

Which of the following is a true statement about the use of a promissory note? A. A note must have a security instrument to be a valid contract. B. A promissory note is a legal instrument that's similar in nature to a contract. C. The maker gives the note to an attorney to hold. D. When the debt is 80% paid, the payee signs the note and returns it to the maker.

B. A promissory note is a legal instrument that's similar in nature to a contract.

Under what circumstances may a Colorado seller choose not to complete the residential Source of Water Disclosure form? A. The buyer waives the right to receive information about the property's potable water source. B. The Water & Sewer Supply section of the Seller's Property Disclosure is completed. C. The water source is a private well. D. The water source is a public source.

B. The Water & Sewer Supply section of the Seller's Property Disclosure is completed.

Your buyer's Colorado contract contains an inspection deadline of June 14. On June 16, the buyer states that she wishes to terminate the contract because of items found during the inspection. Does she have grounds to terminate the contract? A. No. Contracts can't be terminated based on inspection results. B. No. She would be in default of the contract's terms C.Yes. Inspection results aren't subject to contingency deadlines. D.Yes. The Dates and Deadlines section of the contract is flexible.

B.No. She would be in default of the contract's terms

In a deed of trust, who is the trustor? Agent Borrower Lender Neutral third party

Borrower

Which loan is a type of gap financing that is used temporarily until the consumer can obtain permanent financing? Blanket loan Bridge loan Reverse mortgage Wrap-around mortgag

Bridge loan

Georgette and Elise are buying a home together, and have taken out a loan with a private loan company. They'll pay a bit more interest, and larger fees, but they feel it's worth it to have the home they've always dreamed of. What else might the private loan company require? An equity interest Collateral Interest-only payments Sponsorship

Collateral

When Fannie Mae purchases a loan, they pay the loan originator a(n) ______ fee. Borrower's Collection Origination Purchase

Collection

Mike has had some financial problems and is considering borrowing from his retirement plan. Which of the following is a true statement? Any funds he borrows will be subject to a penalty for early distribution. He can only borrow money from his retirement account to purchase investment property. He can only borrow money from his retirement fund to purchase a primary residence. He should consult with a financial expert before doing so

He should consult with a financial expert before doing so

While we tend to think of various real estate functions in terms of the impact on homeowners, as real estate professionals it's important to have a broader perspective on real estate issues. From a lender's perspective, how can the due-on-sale clause be used to their advantage? Lenders can choose whether or not to enforce the clause based on whether they'll earn more or less interest on a loan by enforcing the clause. Lenders can enforce the due-on-sale clause during periods of rising interest rates whether or not a property is sold. Lenders may use the due-on-sale clause to negotiate a lower interest rate for someone who wishes to assume a loan. Lenders must enforce the due on sale clause if a property is transferred, so there's no leverage available.

Lenders can choose whether or not to enforce the clause based on whether they'll earn more or less interest on a loan by enforcing the clause.

What's the purpose of an Agreement to Amend/Extend Contract? A.To amend the buyer's or seller's agreement with the broker B.To amend the terms of or extend due dates on the original contract C.To extend the date on which the listing agreement ends D.To respond to the home inspection results

B.To amend the terms of or extend due dates on the original contract

Which of the following situations would make a borrower ineligible for a loan modification? Borrower has filed for bankruptcy Borrower has lost his or her job LTV is greater than 90% Principal is over $300,000

Borrower has filed for bankruptcy

Which of the following features is shared by the mortgage and the deed of trust? A. In the case of foreclosure, the borrower has a statutory right of redemption. B. Non-judicial foreclosure is standard. C. The borrower is required to maintain the property and pay property taxes and insurance. D. There are three parties involved: a lender, a borrower, and a party who holds title to the property.

C. The borrower is required to maintain the property and pay property taxes and insurance.

What term is used in the Dates and Deadlines section to indicate items that require resolution? A. Concerns B. Disputes C. Objections D.Resolutions

C. Objections

Sherman owes $225,000 on his home. It's currently worth $240,000. How much equity does Sherman have in his home? $15,000 $225,000 $240,000 $465,000

$15,000

An individual borrowed 7000 at 9% interest the total interest paid was 945 how long was the loan?

.09x7000=630 945/630= 1.5 years(18 months)

An abandoned or otherwise unused commercial or industrial site with suspected contaminants is known as what? A brownfield A Brown Zone A space that cannot be used A special use landfill

A brownfield

What's a land survey plat? A formal survey that includes a scale drawing of a parcel's boundaries A formal survey that includes a scale drawing of a parcel's boundaries as well as the location of buildings and hardscapes A quick process that offers reasonable assurance as to the boundaries of a property A spot survey

A formal survey that includes a scale drawing of a parcel's boundaries

What is a major advantage of real estate investment over other types of investment? Ability to leverage Aesthetics Availability Familiarity

Ability to leverage

The right to determine how the property is used and who may enter the property is known as _______. Control Possession Quiet enjoyment Restriction

Control

Obviously, you can't lawfully convey something unless the parties agree on what's being conveyed. How is that determined? Acknowledgment Consideration Conveyance Legal description

Legal description

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

The fewer properties on the market, the greater the scarcity. What's the effect on prices? Prices are pushed downward. Prices are pushed upward. Prices remain the same. There's no correlation between scarcity and price.

Prices are pushed upward: Fewer properties = greater scarcity = higher demand for the properties that are available = upward pressure on prices.

Sam, the buyer, and Rod, the seller, have had a somewhat contentious transaction. They intend to close with the same Colorado closing company but at different times. What type of closing is this? Dual-party Face-to-face Separate Split

Split

Insurable business risk Dynamic risk Financial risk Static risk Capital risk Business risk

Static risk

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

What's the estimated value by cost approach for a property if the site value is $25,000, the new cost of improvements is $100,000, and the total depreciation estimate is $15,000? $110,000 $115,000 $140,000 $90,000

$110,000: To estimate value using the cost approach, an appraiser adds the site value to the cost to replace improvements, then subtracts the amount of depreciation. Here, that gives us $100,000 + $25,000 - $15,000

What is the capital gains exclusion amount? $125,000 for single taxpayers, $250,000 for married couples filing jointly $250,000 for single taxpayers, $500,000 for married couples filing jointly $25,000 for single taxpayers, $50,000 for married couples filing jointly $50,000 for single taxpayers, $100,000 for married couples filing jointly

$250,000 for single taxpayers, $500,000 for married couples filing jointly

The gross rent multiplier extracted from an area is 100x. If the gross annual rent of a subject property is $36,000, what's the property's estimated value? $120,000 $2,400,000 $260,000 $3,600,000

$3,600,000

Jim and Crystal bought their rundown little "shack" 15 years ago. Over the years, they've made structural improvements, built additions, and remodeled nearly every square inch of the property. They're ready for their next adventure and have sold their property for a capital gain of $300,000. Assuming they meet all the criteria to qualify for the capital gain exclusion (and are married filing jointly), how much of this gain can they exclude? $100,000 $250,000 $300,000 $500,000

$300,000: Married couples filing jointly can exclude up to $500,000, so Jim and Crystal can exclude the full $300,000 gain.

How much feet is in an acre

1 acre = 43,560 square feet

What is a general lien? A claim against a person and all of that person's property A claim against a specific piece of property A type of mortgage lien A type of tax lien

A claim against a person and all of that person's property

An escrow closing may also be a _____ closing. Dual-party Face-to-face Separate Split

A split closing is one situation where an escrow closing is also used.

When are apartment owners and property managers required to screen against a specific list of specially designated nationals and blocked persons? As a routine part of the tenant screening process Every 10th applicant Only if English isn't the applicant's first language Only if the applicant looks and acts suspicious

As a routine part of the tenant screening process

Which environmental issue facing property owners and managers is most commonly found in structures built before 1981? Asbestos Hazardous waste Mold Radon

Asbestos

The government's power to take private land for public use is called ______. Condemnation Eminent domain Escheat Foreclosure

Eminent domain

What's income received before any operating expenses are deducted? Effective gross income Gross income Net income Potential gross income

Gross income

Which of the following do investors like to avoid? High tax liabilities Long-term appreciation Positive cash flow Tax write-offs

High tax liabilities

Which of the following would be a description used for real property and a fixture? Above-ground Free-standing In-ground Movable

In-ground

Mara is buying Joseph's property, which is listed with Sam. Who are the parties to the exclusive right-to-sell listing contract? Joseph and Sam Mara and Joseph Mara and Sam Mara, Joseph, and Sam

Joseph and Sam

Which of the following statements about fees paid at or near closing is true? Attorneys must be used in closings, so buyers and sellers need to have fees set aside to pay them. It's a good idea to pay for mortgage insurance, even if your lender doesn't ask for it. Many closing costs can be negotiated between the buyer and seller. Sellers don't have to pay any fees, but buyers do.

Many closing costs can be negotiated between the buyer and seller.

What's the legal process used to determine a will's validity and to ensure that the will accurately reflects the deceased person's wishes? Petition Prescription Probate Proration

Probate

To whom is the fiduciary duty of confidentiality owed in the seller agency relationship? Buyer Buyer's agent Seller Seller's agent

Seller

Lincoln has been working with Kennedy, a buyer customer. What can Lincoln do for Kennedy if Kennedy hasn't signed a buyer agency agreement? Discuss financing strategies with Kennedy. Discuss ways to make Kennedy's offer more competitive. Review an offer for accuracy. Submit Kennedy's offer on a listing.

Submit Kennedy's offer on a listing.

If a landlord wants to notify a tenant that the leased property is subject to a mortgage, what clause would be included in the lease? Mortgage clause Subjective clause Subordination clause Use clause

Subordination clause

Borrowers who fall into the ______ category may be faced with paying interest 1% to 5% over the current market rate. Average Low-risk Subprime Troublesome

Subprime

If home repairs are agreed upon in the sales contract, who's responsible for making them? The buyer The closing agent T he lender's attorney The seller

The seller

At what point does a broker begin to put the seller's interests before anyone else's? When an offer is presented by a buyer When negotiating a listing agreement When seller agency is established When the broker and the seller first talk to one another

When seller agency is established

Burt terminated his exclusive right-to-sell listing agreement with Scott, his listing broker, without cause. Burt may legally do this as long as he's ______. A real estate licensee Unhappy with Scott's services Willing to find his own buyer Willing to pay Scott's commission anyway

Willing to pay Scott's commission anyway

What would happen if you bought a house and later found out that there were unpaid liens against the property? Nothing. The former owner owes the money on the liens. The lien claimants would lose their liens against your property. The unpaid liens could trigger a foreclosure on your property. You would have to assume a loan to pay off the liens.

You would have to assume a loan to pay off the liens.

Rachel is subject to court-ordered supervision due to an antitrust violation. This oversight may continue for as long as ______. 10 years Five years She remains in the state where the violation occurred She's licensed

10 years: Court-ordered supervision may last as long as 10 years if a brokerage is guilty of violating antitrust law

Which section of the Internal Revenue Code allows the owner of real property to sell that property, then reinvest the proceeds in a "like-kind" property and defer paying any capital gains taxes? 1030 1031 180 360

1031

In Colorado, what's the category of appraiser that's the most limited regarding scope of appraisal practice? Ad Valorem Appraiser Certified General Appraiser Certified Residential Appraiser Licensed Appraiser

Ad Valorem Appraiser

Andrea's lender has notified her of its intent to foreclose. Her loan is secured with a deed of trust. What rights does she have to redeem her property? Andrea can cure the default and reinstate the loan. Andrea can negotiate a new loan with the trustee of her current loan and regain title to the property. Andrea can purchase the property from the auction winner who is required to transfer title for 102% of the sale price. Andrea has a statutory right of redemption; she can redeem the property after the foreclosure sale.

Andrea can cure the default and reinstate the loan: The deed of trust gives Andrea the right to cure the default and reinstate the loan, but no rights of redemption after the sale.

The income approach to appraisal is based on which value principle? Anticipation Capitalization Competition Substitution

Anticipation

A lease serves as both a contract and a ______. Consideration Conveyance Deed Receipt

Conveyance

Price levels are an indicator of _______. Demand Inventory rates New building permits Supply

Demand

Which of the following is a life estate in property held by a widow? Curtesy Dower Estate at will Homestead

Dower: A dower is a life estate in property held by a widow. In English historical dramas, the old matriarch often lives in the dower house, not the manor itself

Your clients, the Nguyens, have signed a contract for deed to purchase a property. What rights do the Nguyens receive? Equitable and justifiable title Equitable and legal title Equitable and legal title and right of possession Equitable title and possession of the property

Equitable title and possession of the property

Land doesn't cease to exist, and it's not depreciated or covered by property insurance because of its ______. Immobility Indestructibility Slowness of response Uniqueness

Indestructibility

How does the Federal Housing Administration help prospective homeowners? Insuring lenders against borrower default so they assume less risk of buyer default Providing direct loans to borrowers who have credit issues or insufficient cash for a down payment Requiring mortgage lenders to approve a percentage of loans for low-income homebuyers Streamlining the loan qualification process

Insuring lenders against borrower default so they assume less risk of buyer default

Octogenarians Gertie and Frank met in Sunset Living, a skilled nursing center for people with advanced Alzheimer's disease, where they're both residents. They fell in love and get hitched, signing a marriage certificate. This is an example of a(n) ______ contract. Executory Implied Invalid Valid

Invalid

John wants to do a 1031 tax exchange. He just sold his property. How many days does he have to close on a new property? 180 30 45 60

Investors who want to use the 1031 tax-deferred exchange must identify the property within 45 days and must close within 180 days.

Datums and benchmarks are used for ______. Calculating area Determining land acquisition costs Measuring distance Measuring elevations

Measuring elevations

Your buyer's Colorado contract contains an inspection deadline of June 14. On June 16, the buyer states that she wishes to terminate the contract because of items found during the inspection. Does she have grounds to terminate the contract? No. Contracts can't be terminated based on inspection results. No. She would be in default of the contract's terms Yes. Inspection results aren't subject to contingency deadlines. Yes. The Dates and Deadlines section of the contract is flexible.

No. She would be in default of the contract's terms

Real property rights include the right ______. Of enjoyment To avoid taxation To encroach on a neighboring property To pollute a neighboring property

Of enjoyment

June specified in her will how title to her home would transfer. At her death, alternate conveyance occurred. What likely happened? Fraud Intestate hereditary Operation of law Testate succession

Operation of law

Sue Ellen has a contract to buy Roger's house, which she has always admired, when Roger decides he's ready to move to a senior living community. After Roger finds a suitable senior apartment and moves, Sue Ellen writes a check for the agreed-upon amount, and Roger transfers the deed to her. What is happening in this scenario? Assignment Breach Novation Performance

Performance

Randolph has a leasehold estate that automatically renews at the end of each lease period. What type of leasehold estate does Randolph hold? Estate at will Estate for months Periodic estate Renewable estate

Periodic estate

As a(n) ______ property manager, you work with architects and contractors to get the thing built. You may or may not also handle the leasing of the building to tenants. Office Real estate development Residential Retail

Real estate development: Real estate development property managers work with architects and contractors to get the property built. They may or may not also handle the leasing of the building to tenants.

Real estate, plus all of the interests, benefits, and rights included in ownership, is also known as ______. Estate Land Personal property Real property

Real property

A landlord refuses to show or rent an apartment to someone who is not Christian or Jewish. What type of discrimination is this? Disability discrimination Familial status discrimination Racial discrimination Religious discrimination

Religious discrimination

What information does Schedule B-1 of a title commitment provide? Basic facts related to the transaction and property, including a legal description Exceptions that the title policy will not cover Information on how to dispute a title commitment Requirements that must met before a title policy will be issued

Requirements that must met before a title policy will be issued

What type of interest involves the property ownership going back to the original owner at the end of the life estate? Dual ownership Pur autre vie Remainder interest Reversionary interest

Reversionary interest

The right to access rivers, streams, and other flowing bodies of water adjacent to a property is called ______. Land Littoral Mineral Riparian

Riparian

What type of investment strategy is most similar to a 1031 tax-deferred exchange? Buy and hold Fix and flip Rolling over funds from one IRA into another Wholesaling

Rolling over funds from one IRA into another

Chris is in the process of purchasing a property with 20 acres of farmland in a rural area of the state. Assuming his income meets the criteria of the program, what type of loan may Chris find the most desirable? Growing equity mortgage Rural development loan VA-guaranteed loan Wrap-around mortgage

Rural development loan

Which of these is an example of a rectangular survey system description? 123 Roanoke Street Any Town, ST 98765 "Beginning at the iron pin 30 paces from the center of the brook that runs across the road Southwesterly from the dwelling ..." Lot 6 of Block 3 of the East Subdivision plat as recorded in Map Book 18, Page 11 at the Recorder of Deeds S ½ SE ¼ NW ¼ Section 2, Township Clarkson

S ½ SE ¼ NW ¼ Section 2, Township Clarkson

Who must protect the seller's best interests during the negotiation of a sales contract for the property? Buyer Buyer's agent Seller Seller's agent

Seller's agent

Elizabeth is financing a new home. She submitted her loan application on Monday, August 3. She's set to close on Thursday, September 21. By what date must her lender provide the Closing Disclosure? August 6 July 31 September 18 September 24

September 18: Lenders must provide the Closing Disclosure three days before closing

Dan's lease agreement contains a clause that says he'll receive specific services for an additional rental fee. What type of clause is this? Assignment Escalation Estoppel Services included

Services included

Which of the following is the least specific method for describing a property? Lot and block description Metes and bounds description Rectangular government survey system description Street address

Street address

Which of the following is a benefit of buyer agency for the client? Legal advice No liability for acts of the listing agent Open houses Stronger negotiation strategy

Stronger negotiation strategy

Which of these terms is used to describe when a new occupant lives in a rental unit and pays rent to the previous tenant, who is still under contract with the landlord? Assignment Covenant Estate at will Sublease

Sublease

What well-known economic principle says that a property's value is determined by what it would cost to purchase a similar property? Conforming value Regression Similar cost principle Substitution

Substitution

Which economic principle says that a property's value is determined by what it would cost to purchase a similar property? Anticipation Competition Contribution Substitution

Substitution

On which principle of value is the sales comparison approach based? Anticipation Competition Conformity Substitution

Substitution: The sales comparison approach is based on the principle of substitution. It compares similar properties to the subject property and makes adjustments to determine value based on the sales price of the comparables.

Under AIR, there are limits to the actions licensees may take to avoid influencing the appraiser's value. What are licensees NOT allowed to do? Ask an appraiser to consider additional, appropriate property information. Ask an appraiser to correct errors in an appraisal report. Ask for more detail or an explanation of the appraiser's value determination. Suggest additional business be contingent upon the appraiser's value determination for a current property.

Suggest additional business be contingent upon the appraiser's value determination for a current property: Appraisals will be a part of most real estate transactions; however, licensees may not withhold additional business contingent on the appraiser's value determination of another property

Which entity establishes zoning ordinances? The local governing body The planning board of appeals The state The zoning board of appeals

The local governing body

Who delivers the evidence of a clear title at the closing? Buyer Lender's attorney Licensee representing the buyer Title insurance representative

Title insurance representative

Vantagestar Ltd. would like to construct a high-end condominium complex. Where will they likely go for financing this project? A commercial bank A credit union A life insurance company A mutual savings bank

A life insurance company

Which term is used when someone claims someone else's property by using it for an extended period of time? Adverse possession Dedication Escheat Quiet title

Adverse possession

Tenancy for Years

Also called an "estate for years," this is a leasehold of definite duration that terminates automatically and is inheritable, meaning that if either party to the lease dies, the lease isn't automatically terminated. A tenancy for years can be for any length of time, even days or weeks.

Which type of analysis performed by a property manager is similar to a highest and best use analysis that an appraiser would use? Analysis of alternatives Competitive analysis Market analysis Property analysis

Analysis of alternatives

Risk that required return on investor capital will not be met Dynamic risk Financial risk Static risk Capital risk Business risk

Business risk

Which of the following loans may require compliance with Appraiser Independence Requirements? Commercial Conventional FHA VA

Conventional

Richard gave his town six acres adjacent to his property for use as a public park. This type of property transfer is called a ______. Compensatory deed Dedication by deed Deed of gift Government deed

Dedication by deed

Marci owns a small apartment building, and is considering investing in another one. She's analyzing area vacancy rates to get an idea of market supply and demand. Area vacancy rates have historically been around 6%, but have decreased to 2%. Which of the following is a true statement? Both supply and demand for rental space have increased. Demand for rental space has decreased. Demand for rental space has increased. Vacancy rates will soon return to the average rate.

Demand for rental space has increased

In which of the following types of contracts has one or more of the contract's terms yet to be completed? Bilateral contract Executed contract Executory contract Unilateral contract

Executory contract: in an executory contract, one or more of the contract's terms is yet to be completed.

Dustin lives in the foothills where flooding is common in the spring. What overlay zone would apply to this area? Floodplain overlay Rural community overlay Urban development overlay Watershed overlay

Floodplain overlay

Betty is explaining a sales contract to her buyer client. What must Betty be careful to avoid? Counseling her client about other options Giving legal advice Negotiating a better offer for the buyer Offering advice about the counter-offer

Giving legal advice

The property management agreement between owner Susan and property manager Phil creates a relationship where Phil is the general agent for Susan. This means that Phil has the legal ability to independently _______. Buy other properties in the owner's name Handle all of the daily operations required to manage the property Refinance the property Sell the property when he sees an opportunit

Handle all of the daily operations required to manage the property

Conveyance of property by escheat is an example of _______ alienation. Hereditary Involuntary Unlawful Voluntary

Involuntary

How important is the community's acceptance of a proposed development in an area? It's important, because lack of acceptance can cause costly delays, or even stop a development from happening. It's not a factor in determining whether a community is the right place for a new development. It's not important at all. It's the only consideration in determining whether a development should happen or not.

It's important, because lack of acceptance can cause costly delays, or even stop a development from happening.

What's one requirement zoning ordinances must meet in order to pass the test of validity? Must apply to all applicable property in the same manner Must be for the purpose of urban redevelopment and beautification Must be solely for economic development purposes Provisions must be high level and open to interpretation

Must apply to all applicable property in the same manner

Zoning ordinances are made up of two parts, a zoning map and ______. A master plan An Environmental Impact Statement A plat book Text explaining the ordinances

Text explaining the ordinances

What's it called when a licensee performs tasks for, but doesn't represent, a customer? Designated agency Dual agency General agency Transaction brokerage

Transaction brokerage

What do the property tax section check boxes on the Colorado Contract to Buy and Sell allow the parties to indicate? How property taxes will be prorated How special taxes will be prorated Whether or not previous years' taxes are to paid out of closing proceeds Whether property tax calculations are to be based on the most recent tax bill or the current mill levy

Whether property tax calculations are to be based on the most recent tax bill or the current mill levy

A property value at 350,000 brings in 1800 per month. What is the annual gross rent multiplier? 194 16 21 175

1800x12=21,600 350000/21600=16.2

What exactly is a deed? A mortgage An instrument of conveyance An interest in personal property Chattel

An instrument of conveyance

Before closing, who should get an appraisal of the property if the transaction's being financed? Buyer Homeowner's insurance company Seller Title insurance company

Buyer

What acronym can be used to remember factors that influence real property value? CRUD DUST GIVEN OLD CAR

DUST is an acronym used to remember the four significant factors influencing real property value: demand, utility, scarcity, and transferability

When someone dies intestate with no heirs, the real property owned by that person may be taken by the state through _______. Bulldozer Descent Eminent domain Escheat

Escheat

Most closings in Colorado are ____ closings. Escrow Face-to-face Split Title

Face-to-face

Tenant qualification and acquisition is an important part of Ron's duties as a commercial property manager. Which of the following tasks is likely to maximize his success when performing this duty? Adhering to operational and capital reserve budgets Developing a list of stable contractors who are available at a moment's notice for emergencies Finding a mix of long- and shorter-term tenants for steady and maximum income Finding a way to reduce janitorial and maintenance cost

Finding a mix of long- and shorter-term tenants for steady and maximum income

Penalties for antitrust violation may include ______. Additional education requirements Community service Fines and/or prison sentences Fines only

Fines and/or prison sentences

Violators of the Sherman Antitrust Act may be subject to fines. For what amount may corporations and individuals be liable? Up to $100,000 for corporations and $1,000 for individuals Up to $100 million for corporations and $1 million for individuals Up to $10 million for corporations and $1 million for individuals Up to $1 million for corporations and $100,000 for individuals

Up to $100 million for corporations and $1 million for individuals

Lisa moved into a property in an overlay zone that restricts building height and visual impact along the skyline to preserve the magnificent view of Pike's Peak. Which overlay zone is this? Rural community overlay Urban growth overlay View protection overlay Watershed overlay

View protection overlay

Prior to the closing, one final inspection should take place. This is also known as the final what? Loan commitment Secondary home inspection Title commitment Walk-through

Walk-through

Victor bought a property from Yolanda for $200,000. Under the terms of a land contract, Victor agreed to pay Yolanda in monthly installments of $4,000 over the course of 50 months. Until Victor pays Yolanda the $200,000, who retains the title? A trustee Victor Victor's beneficiary Yolanda

Yolanda

Steve is preparing a market analysis for the Joneses and has selected three comparable properties. How many adjustments should Steve make to the Joneses' property? One Three Two Zero

Zero

Similar properties to joes properties that are in the area have an average gross rent multiplier of 13. Joes property brings in 1000 a month. What is the estimated value of the property? 123,000 179,000 156,000 214,000

156,000 Price/Rent=GRM 1000x12=12,000 13x12000=156,000

A landlord must refund a tenant's excess security deposit and provide an accounting of any deductions by the time frame set forth in the lease, within a time period not to exceed ___ days. 45 60 75 90

60

What is a township? A 36-square-mile square formed in the use of the rectangular government survey system A one-square-mile square formed in the use of the rectangular government survey system A permanent reference point used in the measurement of elevations The point of beginning used in a metes and bounds survey

A 36-square-mile square formed in the use of the rectangular government survey system

Client Bette asked licensee Frank about a home equity line of credit versus home equity loan. Which of the following offers an brief overview of what a home equity line of credit is? A borrower borrows against the equity in the house and pays back the amount withdrawn plus interest. A borrower can pick up paying on the mortgage where the seller left off, assuming the buyer qualifies for the loan. A veteran can obtain the loan with no down payment and no private mortgage insurance requirement. It's a very low-interest loan where borrower will have to repay the entire home balance in seven years.

A borrower borrows against the equity in the house and pays back the amount withdrawn plus interest.

Unless otherwise stated, Colorado prorations are based on ______________________. 30 days in each month A calendar year of 365 days A calendar year of 366 days A statutory year of 360 day

A calendar year of 365 days

Which of the following should include an economic analysis of the neighborhood where a development is to be located, the available infrastructure and access to public transportation, and the amenability of the community to accepting the proposed development? A community profile A federal profile An economic profile An environmental profile

A community profile

Which of the following describes an open CLO? A computerized loan origination system accessed by loan originator on behalf of a consumer. A computerized loan origination system accessed by mortgage banker on behalf of a consumer. A computerized loan origination system accessed by mortgage brokers on behalf of a consumer. A computerized loan origination system accessed directly by the consumer from home.

A computerized loan origination system accessed directly by the consumer from home.

Vacancy rates are a key indicator of supply of and demand for tenant occupancy spaces. Which of the following is true? A decrease in vacancy rate indicates a decreased demand for space. A decrease in vacancy rate indicates an increased demand for space. An increase in vacancy rate indicates an increased demand for space. Vacancy rates alone can be used to analyze whether or not to invest in a rental property.

A decrease in vacancy rate indicates an increased demand for space.

Cynthia is leasing her commercial space with an option to buy when the lease expires. What type of contract does Cynthia have? A lease with an option clause Proprietary lease Sale and leaseback contract Variable lease

A lease with an option clause: In a lease with an option clause, a portion of the lease payment may go toward the purchase price. The purchase contract between the owner and the lessee is the primary consideration; their lease is secondary.

Which one of the following options best describes a sales contract? A legally binding, oral contract between a property's potential buyer and a listing agent A legally binding, oral contract between a property's potential buyer and seller A legally binding, written contract between a property's potential buyer and a listing agent A legally binding, written contract between a property's potential buyer and seller

A legally binding, written contract between a property's potential buyer and seller

Tyra owns a nail salon that's located in a strip mall. Her rent every month includes $1,800 base rent and 10% of her gross sales. What kind of lease does Tyra have? Graduated Gross Net Percentage

A percentage lease is one in which a tenant pays a base rent plus a percentage of gross sales. This is most common with retail tenants

Malcolm loves his apartment, even though he's rarely there. His job in international development has him on the road for months at a time. He doesn't have to worry about missing out on his lease renewal, though, because he has _______. A freehold estate An estate at will An estate for years A periodic estate

A periodic estate

Malcolm loves his apartment, even though he's rarely there. His job in international development has him on the road for months at a time. He doesn't have to worry about missing out on his lease renewal, though, because he has _______. A freehold estate An estate at will An estate for years A periodic estate

A periodic estate

Which of the following statements best describes a mortgage broker? An institution that focuses on commercial lending An institution that specializes in taking in savings deposits then lends money out as loans and mortgages A person who works for a specific lender and can offer products from that particular institution A person who works with multiple lenders to find the product that works best for the client

A person who works with multiple lenders to find the product that works best for the client

What's a datum? An iron pin or other permanent marker used in metes and bounds descriptions A point indicating a location is at sea level A point, surface, or line used as a reference for measuring elevations The center of a township

A point, surface, or line used as a reference for measuring elevations

FTC privacy rules state that a landlord or property manager doesn't have to obtain a tenant's written consent before sharing the tenant's information with ______. A neighbor Another tenant A police officer A retired property owner

A police officer

Which option best defines voluntary alienation? A person dies without a will. A property is taken from a property owner due to failure to pay real property taxes. A property owner intentionally transfers property to another. Someone takes possession of another's property by adding a previous claim to their own.

A property owner intentionally transfers property to another.

What type of professional must an investor use to conduct a tax-deferred exchange? A certified public accountant A licensed real estate professional An appraiser or real estate broker A qualified intermediary

A qualified intermediary

Which of these is an example of blockbusting? A lender withholds mortgage loans in areas considered demographically risky. A licensee doesn't tell her buyer client about a first-floor condo because she felt it wasn't safe for the client. A licensee focuses on showing properties in areas that are demographically similar to her buyer clients' ethnicity. A real estate agent approaches a homeowner as soon as a demographic shift starts to occur in her neighborhood and convinces her that she needs to sell now, or she'll never be able to sell.

A real estate agent approaches a homeowner as soon as a demographic shift starts to occur in her neighborhood and convinces her that she needs to sell now, or she'll never be able to sell.

Which of the following is true about a transaction-broker relationship agreement in Colorado? All customers must sign a transaction-brokerage relationship agreement. A transaction-brokerage relationship agreement doesn't require anything in writing in order for the broker to be paid. A transaction-brokerage relationship agreement is needed in addition to any other contract in order for the broker to be paid. A transaction-brokerage relationship agreement may be oral, but brokers are only entitled to compensation if they have a signed agreement

A transaction-brokerage relationship agreement may be oral, but brokers are only entitled to compensation if they have a signed agreement

Which of the following is an example of illegal market allocation? Acme Realty and Hawthorne Realty Group agree to divide the city in half, each working its own half. Acme Realty and Hawthorne Realty Group each discuss with their licensees where the most lucrative deals can be found. Acme Realty and Hawthorne Realty Group each try to win the million-dollar listings. Acme Realty maps out a plan to dominate the eastern part of the city.

Acme Realty and Hawthorne Realty Group agree to divide the city in half, each working its own half.

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

Which of the following is a true statement about adjustments when using the sales comparison approach? Adjustments are made for differences in features, but not for differences in sales conditions. Adjustments are made to the comparables, and not to the subject property. Differences in location rarely require adjustments. They're always made to the subject property

Adjustments are made to the comparables, and not to the subject property: The comparables are adjusted up or down based on added or missing features, as compared to the subject property

Which of the following is a true statement about adjustments when using the sales comparison approach? Adjustments are made for differences in features, but not for differences in sales conditions. Adjustments are made to the comparables, and not to the subject property. Differences in location rarely require adjustments. They're always made to the subject property.

Adjustments are made to the comparables, and not to the subject property: The comparables are adjusted up or down based on added or missing features, as compared to the subject property.

If a private individual tries to lay claim to someone else's property because he has been living on and using the property as his own for an extended period of time, the individual may acquire the property through _______. Adverse possession Conveyance Descent Escheat

Adverse possession

Marcy is found guilty of price fixing. It's safe to assume that she must have done what? Agreed with a competitor to charge a specific amount Charged a fixed commission price her broker asked her to use Charged a separate co-op fee for different brokerages Deviated from the standard commission rate

Agreed with a competitor to charge a specific amount

Marcy is found guilty of price fixing. It's safe to assume that she must have done what? Agreed with a competitor to charge a specific amount Charged a fixed commission price her broker asked her to use Charged a separate co-op fee for different brokerages Deviated from the standard commission rate

Agreed with a competitor to charge a specific amount: Agreement between competitors is required for price fixing to occur

Tenancy at Sufferance

Also called an "estate at sufferance," this type of leasehold estate occurs when tenants continue to occupy property after their lawful authority has expired, at which point they're known as holdover tenants. If a tenant stays beyond a lease's terms, and the landlord continues to accept rent, that tenancy becomes tenancy at will on a month-to-month basis. Alternatively, the landlord may evict the tenant.

Periodic Tenancy

Also known as a "periodic estate," this leasehold estate is for a specified period of time, and automatically renews itself for the same length of time unless one party terminates. Month-to-month leases are common, but the period involved may be any negotiated period of time.

Tenancy at Will

Also known as an "estate at will," this type of leasehold estate may be terminated by either party and is not inheritable. This type of tenancy requires the giving of proper notice for its termination. The leasehold automatically terminates if either party to the lease dies

In the rectangular government survey system, what is a base line? An east-west line used as a reference point A north-south line used as a reference point The center-most section identified The center-most township identified

An east-west line used as a reference point

Mr. Mast wanted to remodel a bath room so he got a loan of 4300 at a rate of 6% interest. He paid the loan off in 8 months. What was the total interest he paid? 358 258 21.50 172

Annual figure: 4300x.06=258 But they are asking for months: 258/12=21.50 8 Months: 21.50x8= 172

For which of these properties would gross income multiplier be calculated? Apartment building with 50 units Condominium building with four units Duplex used as a rental property Single-family, owner-occupied home

Apartment building with 50 units : Remember, rent has four letters. Gross rent multiplier is used for income-producing properties with four or fewer units. Properties with five or more units use gross income multiplier

If Vlad the appraiser runs into a valuation issue that he's not sure how to address, which group will be most likely to provide guidance for him? Appraisal Practices Board Appraisal Qualifications Board Appraisal Standards Board Appraisal Subcommittee

Appraisal Practices Board

Which of the following groups is responsible for developing the minimum federal licensing and certification requirements for real property appraisers? Appraisal Practices Board Appraisal Qualifications Board Appraisal Standards Board Appraisal Subcommittee

Appraisal Qualifications Board: Licensing requirements are the responsibility of the Appraisal Qualifications Board.

Who is responsible for developing the Uniform Standards of Professional Appraisal Practice (USPAP) that licensed appraisers must follow? Appraisal Practices Board Appraisal Qualifications Board Appraisal Standards Board Appraisal Subcommittee

Appraisal Standards Board

Which of these groups is responsible for ensuring that states follow the minimum standards required of appraisers as stated in the Financial Institutions Reform, Recovery, and Enforcement Act of 1989? Appraisal Practices Board Appraisal Qualifications Board Appraisal Standards Board Appraisal Subcommittee

Appraisal Subcommittee

Which of the following statements is true about appraisals? "Appraisal" and "CMA" are interchangeable terms for a property valuation. Appraisals may only be performed by certified appraisers (with certain exceptions in some states). Either certified appraisers or managing brokers may perform appraisals. Real estate licensees may perform appraisals on foreclosed properties, but a certified appraiser must perform all other appraisals.

Appraisals may only be performed by certified appraisers (with certain exceptions in some states).

Which of the following is a true statement about how adjustments are made in the sales comparison approach? Adjustments are made to the subject property, not the comparables. Appraisers adjust downward when a comparable is missing a feature found in the subject property. Appraisers adjust upward when a comparable is missing a feature found in the subject property. Only three adjustments per comparable property are allowed; otherwise it's not considered sufficiently similar. All adjustments are made to the comparable properties' sales prices to make them as similar as possible to the subject property. Question 7 Which of the following is a true statement about adjustments when using t

Appraisers adjust upward when a comparable is missing a feature found in the subject property: All adjustments are made to the comparable properties' sales prices to make them as similar as possible to the subject property.

Which of the following actions toward an appraiser would be considered proper? Asking an appraiser to correct errors in the appraisal report Making payment of an appraisal report conditional on the value or estimate to be reached Threatening to no longer do business with an appraiser Withholding payment for a completed appraisal repor

Asking an appraiser to correct errors in the appraisal report

Which of the following actions toward an appraiser would be considered improper? Asking an appraiser to consider additional, appropriate property information Asking an appraiser to correct errors in the appraisal report Asking an appraiser to remove information about adverse property conditions from an appraisal report Giving an appraiser additional details, substantiation, or explanation for the appraiser's value conclusion

Asking an appraiser to remove information about adverse property conditions from an appraisal report

Which of the following is NOT required to transfer ownership of a note? Assignment of the note to the new owner Assignment of the security instrument to the new owner Endorsement of the note to the new owner Paying the new owner

Assignment of the note to the new owner: The note is endorsed, and the security instrument is assigned.

Joan is a first-time homebuyer interested in two properties: a condo and a single-family home in a planned unit development (PUD). Both have association fees. Joan wants to know the differences between association fees for condos and PUD homes. Which of the following is true? Association fees for PUDs are usually less than those for condos because the homeowner owns the land and is responsible for property maintenance and upkeep. Condo association fees cover amenities like swimming pools, tennis courts, and recreation areas. PUD association fees don't. It's generally easier to obtain financing for condos than it is for PUDs because condo HOAs have more restrictive covenants. PUD association fees are usually higher because they cover maintenance and upkeep of the homeowner's land, plus all common area facilities.

Association fees for PUDs are usually less than those for condos because the homeowner owns the land and is responsible for property maintenance and upkeep.

When does the seller's broker receive commission? After signing the representation agreement After the buyer puts an offer down on a property At or just after the closing At the final walk-through of a property

At or just after the closing: The broker receives commission at or just after the closing. Licensee commissions are distributed by their brokers.

Which of these appraiser requirements does AIR NOT specify? Be able to access the data needed to perform an appraisal Be knowledgeable about the global market rates Be licensed or certified in the state where the property is located Be qualified to appraise the property involved in the transaction

Be knowledgeable about the global market rates: AIR specifies that appraisers be knowledgeable about the local market, not global market rates

Which type of lawsuit is commonly filed against property managers by building owners? Breach of contract Illegal billing and collection practices Property damage Wrongful entry/invasion of privacy

Breach of contract

Which loan is a type of gap financing that is used temporarily until the consumer can obtain permanent financing? Blanket loan Bridge loan Reverse mortgage Wrap-around mortgage

Bridge loan: A bridge loan (also known as a swing loan) is a temporary (usually 90-day) loan that provides funds in addition to an existing loan until permanent financing can be obtained. It is often used for buyers who have not yet sold their prior property.

Which of the following is one reason for the popularity of commercial leasing? Business owners can often make more money on their business than they can on the appreciation of the building where they conduct that business. Rental rates can include annual escalations based on market conditions. The landlord holds the right of reversion at lease end. Tenants may be required to move at the end of the lease. There can be many obligations and hidden costs in a lease, which can be onerous for tenants if they aren't aware of them.

Business owners can often make more money on their business than they can on the appreciation of the building where they conduct that business.

If a buyer's agent gives the buyer misinformation about the property, who is responsible? Buyer Buyer's agent Seller Seller's agent

Buyer's agent

How does the Federal Housing Administration fund its mortgage insurance program? By charging borrowers a mortgage insurance premium From federal taxes From the sale of foreclosed homes Through fees paid by lenders that participate in the direct endorsement program

By charging borrowers a mortgage insurance premium

When sites with hazardous substances are identified, which of the following mandates that the responsible party cleans them up? CERCLA EPA HUD SARA

CERCLA: CERCLA identifies sites that have hazardous substances, and requires the responsible party to clean them up.

SARA is an amendment to which environmental act? CERCLA Clean Air Act Clean Water Act Environmental Responsibility Act

CERCLA: SARA, the Superfund Amendments and Reauthorization Act, is an amendment to CERCLA, the Comprehensive Environmental Response, Compensation and Liability Act, which says that "innocent landowners" aren't responsible for clean-up of hazardous contamination.

Ability to secure financing at an affordable rate Dynamic risk Financial risk Static risk Capital risk Business risk

Capital risk

A comparison of before-tax cash flow to cash invested is known as ______. After-tax cash flow Cash-on-cash return Income rate value Return on investment

Cash-on-cash return

In Colorado, which category of appraiser is allowed to appraise any type of real property? Ad Valorem Appraiser Certified General Appraiser Certified Residential Appraiser Licensed Appraise

Certified General Appraiser

The Institute of Real Estate Management, an affiliate of the National Association of REALTORS®, offers a specific certification program. What designation would you earn upon completing this program? Certified Manager of Buildings Certified Property Manager Certified Residential Real Estate Expert Specialized Property Expert

Certified Property Manager

Which act was the first to prohibit any exceptions for discrimination based on race or color? Civil Rights Act of 1866 Fair Housing Amendments Act of 1988 Federal Fair Housing Act of 1968 Housing for Older Persons Act of 1999

Civil Rights Act of 1866

Which of the following parties is typically present at a Colorado closing? Closing agent The appraiser The lender The lender's attorney

Closing agent

A Colorado split closing also necessitates a(n) ______. At-the-table closing Closing in escrow Face-to-face closing Separate closing

Closing in escrow

The Federal Home Loan Bank lends money to member banks in exchange for what? Advances Collateral Equity interest IOUs

Collateral

What type of insurance provides two or more forms of coverage (e.g., business crime, business auto, boiler and machinery, marine and farm, liability) for commercial properties? Business interruption Casualty Commercial multi-peril Surety bonds

Commercial multi-peril

Which of the following options describes a method by which a licensee can determine an appropriate listing price range? Appraisal Comparative market analysis Creative market analysis Proforma

Comparative market analysis

Which type of analysis starts with a visit to the property, a search on the MLS, and a comparison of comparable sales, and hopefully ends in a listing for a real estate licensee? Appraisal Broker price opinion Comparative market analysis Credit analysis

Comparative market analysis

To develop a marketing plan for the property owner, the property manager should ______. Compare the competition to the rates, condition, amenities, and location of the owner's property Ignore the property's vacancy rate Rely on the owner to do all of the market research T ake an existing marketing plan from an old property and modify it slightly

Compare the competition to the rates, condition, amenities, and location of the owner's property

When licensees follow through on what prospects have asked, arrive for meetings on time, and come prepared, what trait are they exhibiting? Competence Documentation Effective communication Empath

Competence

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.

Chadwick is a developer considering purchasing a large piece of unimproved land for a subdivision development. What should he do before committing to the project? Apply for financing. Conduct a feasibility study. Phone a friend. Start marketing the property to see if there are buyers.

Conduct a feasibility study

Jamie enters an agreement to buy Yolanda's home. Per the agreement, Jamie promises to provide a $5,000 earnest money deposit, whereas Yolanda promises to sell her home to Jamie. These promises represent forms of ________, which are required to make the contract valid. Consideration Legal competency Mutual mistake Undue influence

Consideration

You may see a ______ named as a land contract, real estate contract, contract for sale, agreement for deed, or as articles of agreement. Contract for deed Deed of trust Mortgage Promissory note

Contract for deed: A contract for deed is a common form of seller financing involving the buyer/borrower and the seller /lender

A vendor and vendee are the parties involved when the finance instrument is a ______. Contract for deed Last will and testament Note with deed of trust Note with mortgage

Contract for deed: The vendee is the buyer/borrower, and the vendor is the seller/lender in a contract for deed.

Which real estate finance instrument includes the promise to repay and the security instrument within the same document? Contract for deed Deed of trust Mortgage Promissory note

Contract for deed: the contract for deed is both the pledge of collateral and the promise to repay. It can also include the purchase agreement.

What is Colorado's standard residential purchase contract called? Agreement to Purchase Real Estate Contract to Buy and Sell Real Estate (Residential) Real Estate Purchase Contract Real Estate Purchase/Sale Agreement

Contract to Buy and Sell Real Estate (Residential)

Which economic principle pertains to how a change in a property affects its value as a whole? Anticipation Conformity Contribution Substitution

Contribution: Contribution pertains to how a change in a property impacts the value as a whole. Does converting a garage into a family room contribute to or detract from value? The answer to that would be in the eyes of the buyer.

Which of the following is NOT a characteristic of a corporation? Corporations are recognized legal entities. Corporations are tangible and nontaxable. Corporations are taxable. Corporations have tax rates separate from individual tax rates.

Corporations are tangible and nontaxable.

Which approach to value measures the cost to produce a property, including land acquisition and construction costs? Cost approach Income approach Indirect approach Sales comparison approach

Cost approach: The cost approach to finding appraised value measures value as a cost of production, including acquisition of the land and the construction costs.

With the cost approach to value, what is the replacement cost? Cost of the materials used in construction Cost to build a functionally equivalent improvement Cost to build an exact replica of the subject, with the same materials and deficiencies Cost to buy the property

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.

In which method of involuntary alienation does a court decide how the proceeds from the sale of land owned by tenants in common will be distributed? Court-ordered partition of property Eminent domain Foreclosure Regulatory taking

Court-ordered partition of property

Which one of the following tasks helps Diana fulfill her property management duty of providing maintenance and completing improvements? Creating and implementing a preventive maintenance schedule Creating an operating budget in which income is greater than expenses Generating monthly financial reports for property owner review Minimizing vacancy rates by doing market analyses and offering market-based rent rates

Creating and implementing a preventive maintenance schedule

What's the point from which elevation is measured? Base line Datum Monument Principal meridian

Datum: A datum is a point, surface, or line used as a reference for measuring elevations.

The property management proposal includes information such as ______. Details about the property manager's personal interests and hobbies Details about the property manager's qualifications Personal information about the property manager's family The benefits and bonuses the owner will give the property manager in return for services rendered

Details about the property manager's qualifications

Former landfills are often used for what purpose? Brownfields Development of golf courses and parks Special purpose landfills Unregulated waste disposal areas

Development of golf courses and parks

When a real estate professional goes beyond a broad brushstroke approach to a CMA and takes the time to research not only recent sales, but competition and expired listings, what trait are they exhibiting? Diligence Documentation Effective communication Empathy

Diligence

The Truth in Lending Act requires lenders to make certain ______ to consumers. Concessions Disclosures Loans Rates available

Disclosures

What practice did the Fair Housing Act of 1968 attempt to eliminate? Discrimination based on marital status Discrimination based on sexual orientation Discrimination based on source of income Discrimination through blockbusting, steering, and redlining

Discrimination through blockbusting, steering, and redlining

LaTonya's aunt left her a bungalow on the outskirts of the city. For many years, it was the place for family holiday gatherings, and LaTonya's sister was even married there. That's why her family is so upset to learn that she plans to sell the bungalow as soon as she gets it cleaned out. Which real property right allows her to sell the property? Control Disposition Exclusion Possession

Disposition

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

Which of the following scenarios is an example of novation? Cynthia has a contract with Jack to buy his house. She terminates the contract after the inspection and writes a similar contract on a new property with Jeff. Doug is buying Norm's farm, but has a serious accident and no longer wants to own a farm, so his daughter Linda decides to buy the property. Norm agrees to the substitution of Linda for Doug in the purchase contract, effectively creating a new contract. Marcie contracts to buy Suzanna's beauty salon. Marcie gets cold feet, though, and terminates the contract. Using a clause in the original purchase contract, Roxanne assigns her contractual right to purchase a property to her friend, Caroline

Doug is buying Norm's farm, but has a serious accident and no longer wants to own a farm, so his daughter Linda decides to buy the property. Norm agrees to the substitution of Linda for Doug in the purchase contract, effectively creating a new contract: Novation creates a new contract by substituting one or more parties to the contract, which releases the original party from liability

What type of agency exists when a buyer's agent is also the listing agent for the same property? Buyer agency Dual agency Seller agency Single agency

Dual agency

For which of these properties would gross rent multiplier be calculated? Apartment building with 50 units Condominium building with 20 units Duplex used as a rental property Single-family, owner-occupied home

Duplex used as a rental property: Remember, rent has four letters. Gross rent multiplier is used for income-producing properties with four or fewer units. Properties with five or more units use gross income multiplier.

uninsurable business risk determined by economic, tax or market changes Dynamic risk Financial risk Static risk Capital risk Business risk

Dynamic risk

Roger has a buyer client who is purchasing a Colorado home built before 1978. Which two documents must Roger ensure that his client receives related to lead-based paint? EPA lead-based paint brochure and Lead-Based Paint Disclosure form EPA lead-based paint brochure and Residential Property Disclosure Lead-Based Paint Disclosure and Residential Property Disclosure Synopsis of the Lead-Based Paint Hazard Reduction Act and EPA lead-based paint brochure

EPA lead-based paint brochure and Lead-Based Paint Disclosure form: Roger must ensure that his client receives copies of the EPA lead-based paint brochure and the Lead Based Paint disclosure form.

An easement is one type of encumbrance that can affect a property. Which of these statements about easements is true? An easement is a right acquired by one party to use the land of another party, usually for one day. An easement requires the property owner's express permission. Easements are often established by a written agreement between the parties. Easements must be removed before property can be transferred.

Easements are often established by a written agreement between the parties.

When presenting a CMA, if you take the time to explain the CMA process, help the prospective sellers understand what's behind the numbers, and ultimately leave the decision of the list price up to them, what characteristic have you demonstrated? Documentation Effective communication Law-abiding Precision

Effective communication

Janelle's a broker who owns a small firm. She has decided that the firm will be a single agency firm. This means that her agents represent ______. Both parties in all of their transactions Either the buyer or the seller in each transaction Lenders and other third-party service providers Only sellers

Either the buyer or the seller in each transaction

The Real Estate Settlement Procedures Act protects consumers by _______. Eliminating illegal kickbacks and referral fees among settlement service providers and requiring lender disclosures as part of a residential real estate transaction involving credit Prohibiting settlement service providers-including real estate professionals-from discriminating during a residential real estate transaction Requiring all settlement service providers to restrict their fees to only those types and amounts that Regulation X allows Requiring that settlement companies provide an attorney to represent the borrower's interests, at no cost to the borrower, as part of a residential real estate transaction involving credit

Eliminating illegal kickbacks and referral fees among settlement service providers and requiring lender disclosures as part of a residential real estate transaction involving credit

Max built his shed just over his property line, so part of the structure actually sits on his neighbor's property. The shed is considered a(n): Easement Encroachment Setback Shared structure

Encroachment

Derrick was thrilled to find out that the land he purchased includes several small caves. He's been spelunking for about three years and looks forward to exploring the caves on weekends. Which real property right allows him to do so? Disposition Enjoyment Exclusion Possession

Enjoyment

The secondary mortgage market buys loans from the primary market. How does this aid the lending market? Avoid foreclosure of borrower properties Ensure funds are available to borrowers Prevent bank runs by consumers Streamline lenders' bankruptcy processes

Ensure funds are available to borrowers

Natalie is a single mother of twins and receives government assistance to help make ends meet. She's been living with her mother for the last few years but really wants to buy her own home to gain some independence. She's got a little in savings and has good credit, but when a lender turns her away because she receives public assistance she worries that she'll never be able to get a loan. What act prevents automatic discriminatory practices by lenders and protects individuals like Natalie? Community Reinvestment Act Consumer Credit Protection Act Equal Credit Opportunity Act Home Mortgage Disclosure Act

Equal Credit Opportunity Act

Your buyer clients, the Thompsons, told you about a problem they ran into with the lender that handled their mortgage. The Thompsons, who are African American, were given less favorable loan terms than a white couple they know who used the same lender. You know the Thompsons have excellent credit. Which act should you make them aware of? Community Reinvestment Act Consumer Credit Protection Act Equal Credit Opportunity Act Home Mortgage Disclosure Act

Equal Credit Opportunity Act

Which special lease clause stipulates increased rental rates at specific times during the lease term, or requires tenants to pay a proportionate amount of the overall increased utility expense, in addition to their base rent? Assignment/subletting Escalation Service included Tax

Escalation

Paige's lease agreement contains a clause that requires her to pay a proportionate amount of the overall increased utility expense, in addition to base rent. What's this clause known as? Attornment clause Escalation clause Services included clause Tax clause

Escalation clause: An escalation clause requires a tenant to pay a proportionate amount of the overall increased utility expense, in addition to base rent

Jake, who was leasing a house, retained possession even after his right to possess had terminated. Jake has a(n) ______. Estate at sufferance Estate at will Estate for months Holdover tenancy

Estate at sufferance

What type of leasehold is characterized by possession of a property without the express permission of the property owner, such as a situation in which a tenant continues to occupy an apartment after the lease has terminated? Estate at sufferance Estate at will Freehold estate

Estate at sufferance: Estate at sufferance is so called because the landlord is suffering the tenant's presence without the landlord's permission.

In what type of leasehold is the duration of the lease unknown at the time it's created? Estate at will Estate for years Periodic estate Tenancy at sufferanc

Estate at will

What information does Schedule B-2 of a title commitment provide? Basic facts related to the transaction and property, including a legal description Exceptions and flaws that the title insurance policy will not cover Information on how to dispute a title commitment Requirements that lenders must meet before a title policy will be issued

Exceptions and flaws that the title insurance policy will not cover

In Colorado, what contract is used for the purpose of entering into an agency relationship to provide leasing services for a landlord? Brokerage Disclosure to Tenant Dual Agent Contract Exclusive Right-to-Lease Listing Contract Exclusive Tenant Listing Contract

Exclusive Right-to-Lease Listing Contract

In Colorado, what contract is used for the purpose of entering into an agency relationship with a tenant? Brokerage Disclosure to Tenant Dual Agent Contract Exclusive Right-to-Lease Listing Contract Exclusive Tenant Listing Contract

Exclusive Tenant Listing Contract: In Colorado, the Exclusive Tenant Listing Contract is used for the purpose of entering into an agency relationship with a tenant

Janice wanted to sell her townhome, and her neighbor was considering buying it. She wanted to put it on the market while she waited to find out if her neighbor was going to buy. In order to receive the best possible representation but avoid paying a commission if her neighbor buys the property, which type of listing agreement would best suit Janice's needs? Exclusive agency Exclusive right to sell Net Open

Exclusive agency

The most common way for a lease to terminate is _______. Abandonment Eviction Expiration Foreclosure

Expiration

An agent is working with seller clients who are very emotionally attached to their home. They want to list the property at $330,000, but the CMA indicates a price range of $255,000 to $275,000. What is the best course of action? Explain the importance of fair market value and offer to walk them through the process. List the home for $300,000 because it's a good compromise. List the home to sell, so start with the lower end of the CMA. Start with listing for $330,000 and see if you get any interest

Explain the importance of fair market value and offer to walk them through the process.

What's one of the things a licensee must do in order to prepare a client for closing? Explain who will be at the closing and what to expect. Perform a home inspection. Provide an abstract of title. Provide the Loan Estimate.

Explain who will be at the closing and what to expect

Which act provides consumers with remedies if they become victims of discrimination in the sale, rental, or financing of housing? Civil Rights Act of 1866 Equal Credit Opportunity Act of 1974 Fair Housing Amendments Act of 1988 Housing and Community Development Act of 1974

Fair Housing Amendments Act of 1988

Tenants are protected from discrimination by ______. Fair housing laws Landlord laws The goodwill of landlords The Tenant Rights Act

Fair housing laws

Mike's been friends with Tim since college. They often work together: Mike flips houses and Tim's an appraiser that he uses frequently. It works out great for both friends and Mike definitely gets a better appraised value on the flips Tim handles. For every appraisal Tim handles for him, Mike gives him a $100 gift card. In what illegal practice does it sound like they're engaging? Equity skimming Falsely inflating appraisals Under-valuing the homes Violating fair housing law

Falsely inflating appraisals

Jericho and Cindy, an unmarried couple, have three children, ages 3, 5, and 12. A seller's broker refuses to show them a house in a neighborhood where residents tend to be older, and no one else has children. Which protected class status applies? Age status Familial status Marital status Partnership status

Familial status

Which of the following requires a landlord or property manager to obtain a tenant's written consent before sharing any information about the tenant with an unaffiliated third party? Fair and Accurate Credit Transaction Act of 2003 (FACTA) Fair Credit Reporting Act (FCRA) Federal Trade Commission (FTC) privacy rule USA PATRIOT Act

Federal Trade Commission (FTC) privacy rule

What does the Financial Institutions Reform, Recovery, and Enforcement Act require? Federally related appraisals must be conducted by an appraiser who's either licensed or certified by the state. Federally related transactions need not be appraised. Non-federally related transactions must be appraised by government employees. Real estate licensees who perform appraisals must have a federal security clearance.

Federally related appraisals must be conducted by an appraiser who's either licensed or certified by the state.

What's the broadest estate a person can have in real estate? Fee simple Fee simple determinable Leasehold Life estate

Fee simple

Which type of estate only takes effect after an event occurs or a condition is performed? Community property Fee simple defeasible Fee simple subject to a condition subsequent Fee simple upon condition precedent

Fee simple upon condition precedent

Risk that is directly related to leverage Dynamic risk Financial risk Static risk Capital risk Business risk

Financial risk

Which of the following is the best example of investment leverage? Buying multiple properties at once Buying properties on a systematic basis Financing most of an investment and putting very little cash in Paying all cash for an investment to avoid interest payments

Financing most of an investment and putting very little cash in

An appraiser considers several factors when selecting comparable properties as part of the sales comparison approach, including whether they are similar in location, size, and features to the subject property. Which of these factors will also be a consideration? Broker's commission Demographics Financing terms Lender used

Financing terms: The appraiser reviews the financing terms of the comparable property's sale, as well as the market conditions and conditions of the sale. These are all factors that may affect the price paid.

Janelle is eager to have a place to call her own. She brings her mom and best friend to every showing and relies heavily on their opinions, since she doesn't know much about the process. After years of apartment living, she's looking for a place with some space and privacy. What type of buyer is Janelle? First-time buyer Retiree Trade-down buyer Trade-up buyer

First-time buyer

Allen picked up remodeling skills from his family's construction business. Which of the following real estate investments is most suited to these skills? Buy and hold Fix and flip Limited partnership Wholesaling

Fix and flip

Which of the following are included in the transfer of real property unless specifically excluded in writing? Chattel Fixtures Personal possessions Personal property

Fixtures

Why might a business owner opt to lease a building rather than purchase it? Control over the property Desire for equity Fixed monthly payments over time Flexibility in moving

Flexibility in moving

Which of these transactions must comply with Appraiser Independence Requirements? Duplex being purchased with a Federal Housing Administration loan Five-unit residence being purchased with a conventional loan Four-unit residence being purchased with a conventional loan Single-family home property being purchased with a Veterans Administration loan

Four-unit residence being purchased with a conventional loan

Which institution was created by Congress as the Federal Home Loan Mortgage Corporation (FHLMC) in 1970? Fannie Mae Farmer Mac Federal Home Loan Bank Freddie Mac

Freddie Mac

Single agency firms prohibit their licensees from doing what? From giving their clients real estate-related advice From handling escrow funds From providing transactional information to their customers From representing the buyer and seller in the same transaction

From representing the buyer and seller in the same transaction

A form of depreciation or loss in value caused by defects in design is called _______. Economic obsolescence External depreciation Functional obsolescence Physical depreciation

Functional obsolescence: Functional obsolescence is a form of depreciation or loss in value caused by defects in design

One of Jackie's creditors sued her in civil court. As a result of the judgment against her, her house, car, and art collection were all subject to sale in order to pay the creditor. What type of lien is this? General Special assessment Vendor's Voluntary

General

One of Jackie's creditors sued her in civil court. As a result of the judgment against her, her house, car, and art collection were all subject to sale in order to pay the creditor. What type of lien is this? General Special assessment Vendor's Voluntary

General: A general lien is placed against all of an individual's or a business's real and personal property, not just a specific property. General liens include judgment liens-such as in this case-income tax liens, and decedent's debts.

You need to perform a sales comparison for your clients. Comparable A's adjusted sales price is $277,000. Comparable B's adjusted sales price is $255,000. How might you use this data to determine a list price range for the clients' home? Find the average of the adjusted sales prices of Comparable A and Comparable B. Give more weight to the list price on Comparable A, because it's lower. Give more weight to the list price on Comparable B, because the subject property will likely sell more quickly at this higher price. Give more weight to the list price on the comparable that's most similar to the property.

Give more weight to the list price on the comparable that's most similar to the property.

Which of these situations represents an illegal tie-in arrangement? Grayson tells his seller client, Geneva, that he'll reduce the listing commission if Geneva uses MBS Title Services to close her transaction. Martha gives her buyer clients a list of home inspectors and encourages them to call several who are both on and not on the list to find one who meets their needs. Monica agrees to rebate a portion of the commission earned when her buyer client buys a house if the client also lists her current home with Monica. Trina tells her buyer, Martin, that she won't perform any brokerage services for him unless he signs an agency agreement

Grayson tells his seller client, Geneva, that he'll reduce the listing commission if Geneva uses MBS Title Services to close her transaction.

Which of these situations represents an illegal tie-in arrangement? Grayson tells his seller client, Geneva, that he'll reduce the listing commission if Geneva uses MBS Title Services to close her transaction. Martha gives her buyer clients a list of home inspectors and encourages them to call several who are both on and not on the list to find one who meets their needs. Monica agrees to rebate a portion of the commission earned when her buyer client buys a house if the client also lists her current home with Monica. Trina tells her buyer, Martin, that she won't perform any brokerage services for him unless he signs an agency agreement.

Grayson tells his seller client, Geneva, that he'll reduce the listing commission if Geneva uses MBS Title Services to close her transaction: A tie-in arrangement includes making use of one service dependent on the client obtaining another specific service; or agreeing to provide some service only if the client refrains from doing business with another third-party vendor.

Brittany has a small office in a professional building. She has a set monthly lease payment that has been calculated to include maintenance of the common areas in the building, such as the restroom and small kitchen, and all nets, utilities, and janitorial charges for her space. The payment also includes taxes and insurance. The landlord takes these payments and pays the individual expenses himself. What type of lease does Brittany have? Graduated lease Gross lease Net lease Percentage lease

Gross lease

An investor is analyzing a three-unit property by looking at its ability to produce future income. Which of the following would most likely be used to determine this value? Effective gross income Gross income multiplier Gross rent multiplier Potential gross income

Gross rent multiplier: GRM is used for income-producing properties of four or fewer units. Properties with five or more units use GIM.

Deb, a licensee, is unhappy with the marketing materials a local company produced. While having coffee with Irving, a licensee with another firm, she tells him about her troubles and recommends he not do business with this company. Irving agrees and even volunteers to spread the word among his colleagues. What's this an example of? A tie-in arrangement Group boycotting Market allocation Price fixing

Group boycotting

Deb, a licensee, is unhappy with the marketing materials a local company produced. While having coffee with Irving, a licensee with another firm, she tells him about her troubles and recommends he not do business with this company. Irving agrees and even volunteers to spread the word among his colleagues. What's this an example of? A tie-in arrangement Group boycotting Market allocation Price fixing

Group boycotting: This is group boycotting because it involves a group of licensees agreeing to not do business with another company

Which one of the following property manager's duties requires the property manager to remind tenants that they must provide 30 days' written notice prior to terminating their lease? Handle move-outs/move-ins. Maintain the property. Perform a market analysis. Respond to tenant complaints.

Handle move-outs/move-ins.

Paul wants to rent an apartment from Wendy, but he doesn't have a Social Security number. Wendy explains that in order to rent to him, he must provide her with an acceptable form of identification. Paul hands her his green card. What does Wendy do? Asks Paul if he has another form of identification; a green card is not acceptable Hands Paul a lease agreement to fill out Hands the card back to Paul and tells him she cannot rent to him Tells him he will need to have a U.S. citizen vouch for him and co-sign the lease

Hands Paul a lease agreement to fill out

The FHA loan program is designed for borrowers who ______. Have a minimal down payment and less-than stellar credit Have nothing saved for a down payment Have stellar credit Need their loan guaranteed

Have a minimal down payment and less-than stellar credit

The destruction of property provision describes which of the following? How a tenant will be compensated if a landlord fails to provide maintenance on a property How a tenant will be compensated if there is already damage to the property when the tenant moves in How the landlord will be compensated if the tenant damages property How the tenant will be compensated if a property is damaged through natural causes

How the tenant will be compensated if a property is damaged through natural causes

Which of the following is NOT true about single agency? In single agency, one agent represents both the buyer and seller in the same transaction. Single agents still owe fiduciary duties to their clients. Some agencies choose to only allow single agency. This kind of agency provides the least risk.

In single agency, one agent represents both the buyer and seller in the same transaction.

What does the U.S. Department of Veterans Affairs assure when it guarantees a loan? A home approved for a VA loan will be habitable and in good condition. In the event of default, a portion of the loan will be repaid to the lender. In the event of default, the entire loan amount will be repaid to the lender. The borrower will not default on the loan

In the event of default, a portion of the loan will be repaid to the lender.

Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 states that its purpose, in part, is to require that real estate appraisals used in connection with federally related transactions be performed ______. By licensed real estate professionals By members of the Appraisal Foundation In the most expeditious and inexpensive way possible In writing, and in accordance with uniform standards

In writing, and in accordance with uniform standards

Which of the following is a risk most associated with wholesaling as a real estate investment strategy? Inability to immediately resell the property for a profit Running out of money before repairs are finished Tenant issues Vacancies

Inability to immediately resell the property for a profit

"Effective gross income" most closely means ______. Income after losses from vacancies and credit losses are deducted from potential gross income Income after operating expenses are deducted Income after taxes are deducted Income that a property could bring if it were leased at full capacity

Income after losses from vacancies and credit losses are deducted from potential gross income

Which approach to finding property value estimates the current value of future income? Cost approach Income capitalization approach Sales comparison approach Taxable revenue approach

Income capitalization approach: When using the income approach to value, the appraiser analyzes a property's ability to earn future income.

Which type of zoning classification regulates the intensity of use in an area that typically includes warehouse and manufacturing? Agricultural Commercial Industrial Residential

Industrial

Sean hasn't paid his property tax. The tax collector places a lien on his property. How is this lien classified? Involuntary, general Involuntary, specific Voluntary, general Voluntary, specific

Involuntary, specific: A property tax lien is involuntary, since Sean didn't agree to it, and specific, since it is attached to only one property

What's the purpose of the nondisturbance clause in a lease? It assures tenants they won't be evicted if they adhere to lease terms. It prohibits solicitation within the building. It prohibits tenants from having guests who stay over. It requires the tenant to keep the noise level down during sleeping hours.

It assures tenants they won't be evicted if they adhere to lease terms.

From an agent's perspective, what's one benefit of a buyer representation agreement? It defines how and how much the agent will be paid. It elevates the services the buyer will receive. It ensures the buyer will receive exclusive representation. It's legally required in order to work with buyers.

It defines how and how much the agent will be paid.

Why was the refrigerant known as Freon® banned under the Clean Air Act? It depletes the ozone. It is not an effective coolant. It is too costly to manufacture. The patent was not renewed.

It depletes the ozone.

Karen's house was recently foreclosed on to pay off a lien on her home. What happens to any extra money after the lien and expenses of the sale are paid? It goes to Karen. It's given to a local government-approved charity. The bank receives the rest as compensation. The state government receives the extra funds.

It goes to Karen.

The Supreme Court decision in Plessy vs. Ferguson was significant to the concepts of human rights and fair housing because ______. A city ordinance requiring racially segregated zoning was found unconstitutional It found that a private home seller was prohibited from discriminating based on race It legalized racial segregation The court determined that school desegregation must be implemented

It legalized racial segregation: Plessy vs. Ferguson, a case from the 1890s, found that racial segregation was constitutional as long as the "separate but equal" doctrine were followed.

Which of the following statements is true about groundwater? It's a source of drinking water. It's easy to decontaminate. It's not affected by severe weather. It's not regulated because it is hard to contaminate.

It's a source of drinking water.

Which one of the following statements is true about groundwater? It's a source of drinking water. It's easy to decontaminate. It's not affected by severe weather. It's not regulated because it is hard to contaminate.

It's a source of drinking water.

Which of the following describes a mechanic's lien? It's a general equitable lien. It's an involuntary general lien. It's a specific involuntary lien. It's a voluntary statutory lien.

It's a specific involuntary lien.

Widget Corporation just bought land on which it plans to build a new manufacturing facility. How is the land owned? It's a joint tenancy. It's held as a tenancy in common. It's owned as an estate in severalty. There isn't enough information given to tell.

It's owned as an estate in severalty.

What's one benefit of a rural development loan? It doesn't have to be repaid. It includes marketing assistance for farmers. Its optional longer term means a lower monthly payment. Its optional shorter term means a quicker payoff.

Its optional longer term means a lower monthly payment.

Siblings Julia and Gene are co-owners of a small retail building in which a tanning salon is currently operating. Gene really wants to leave his ownership interest to his son when he dies, but the way in which they own the property doesn't allow him to do so. What type of ownership do they have? Joint tenancy Tenancy by the entirety Tenancy in common Tenancy in severalty

Joint tenancy

Marcy is Jon's customer. Jon has been working with Marcy in the purchase of her new home. What's Jon's responsibility regarding the closing statement? Jon bears the same responsibility for accuracy of the closing statement whether working with a client or a customer. Jon is responsible for taking the signed closing statement to his employing broker, but he bears no responsibility for the accuracy of the statement. Jon is responsible only for explaining the form to Marcy at closing. Jon's not responsible since Marcy isn't his client.

Jon bears the same responsibility for accuracy of the closing statement whether working with a client or a customer.

Which Supreme Court case found that even private individuals aren't allowed to discriminate on the basis of race when selling a property? Brown vs. Board of Education Buchanan vs. Warley Jones vs. Alfred H. Mayer Co. Plessy vs. Ferguson

Jones vs. Alfred H. Mayer Co.: Jones vs. Mayer cited Section 1982 of the Civil Rights Act of 1866 in the decision that racial discrimination isn't allowed in any sale of property within the U.S

Selma and Richard have the temporary right to live at 123 Elm Street. They can come and go and use the property as they see fit, but they can't do so indefinitely. They must vacate the property at the end of next year. What sort of interest do they have in 123 Elm Street? Fee simple estate Leasehold estate Life estate Reversionary estate

Leasehold estate

Which level of appraiser qualification in Colorado is limited to appraisals of one- to four-unit residential appraisals with specific transaction values? Ad Valorem Appraiser Certified General Appraiser Certified Residential Appraiser Licensed Appraiser

Licensed Appraiser

Life insurance companies are more concerned with long-term stability of investments than they are ___________. Assets Borrowers' credit ratings Liquidity The size of the project

Liquidity

In addition to the closing transaction documents, what will most buyers sign at closing? Broker's commission check Loan documents Loan estimate forms Proof of insurance forms

Loan documents: The buyer will sign both closing transaction documents and documents related to the new home loan.

What information does the Loan Estimate provide to buyers under required disclosures law? Broker commission rates Final closing costs Loan payment schedule Referral fees

Loan payment schedule: Lenders provide the Loan Estimate within three days of receiving a borrower's application. Borrowers receive final closing cost information (on the Closing Disclosure) three days before closing.

Damien was representing a commercial property owner. Which one of the following duties can the owner expect Damien to perform on the property owner's behalf? Assist the owner in locating a property to lease. Collect the first month's rent from the tenant and hold it in a separate bank account for the owner. Explain potentially confusing lease clauses and determine the best monthly lease amount for the tenant. Locate and qualify potential tenants.

Locate and qualify potential tenants.

Gia is acting as a seller agent. Which of these is a duty she must perform? Keep the buyer informed. Market and sell the property. Negotiate for the buyer. Represent the buyer while making sure that none of the seller's advantages are lost.

Market and sell the property

Oscar bought an older home and hired a contractor to replace the old knob and tube wiring throughout the house. He was invoiced for the work, but 60 days have passed, and Oscar has yet to pay the bill. The electrician filed a lien against Oscar's house. What type of lien is this? HOA-related Mechanic's Mortgage Special assessment

Mechanic's

Which environmental and health issue is best addressed by property owners and managers educating employees and tenants on how to both prevent it and to clean it up if it appears? Asbestos Hazardous waste Mold Radon

Mold

Carla Ricardo has been offered her dream job in another state. She asks her current landlord to let her out of her lease early. The landlord agrees to do so, with no strings attached. Carla and her landlord have decided to terminate the contract through ______. Actual eviction Eviction Expiration Mutual agreement

Mutual agreement

Gloria is renting a cottage from Edward when she lands a job in Canada. She still has six months left on her lease, but Edward tells her he usually has no problem renting the cottage and releases her with no penalty. What type of lease termination is this? Constructive eviction Expiration Mutual agreement Periodic estate terminatio

Mutual agreement

What does NCUA stand for? National Credit Union Administration National Credit Union Affiliation National Credit Union Alliance National Credit Union Association

National Credit Union Administration

If you take gross income and deduct operating expenses, what do you get? Effective gross income Net operating income Potential gross income Profit

Net operating income

Tim, an appraiser, is using the cost approach to determine property value. Which of the following property types is Tim most likely appraising? Condominium Cooperative Newly built commercial property Single-family residence built in the 1980s

Newly built commercial property: The cost approach is most often used with newly constructed properties, unique properties, and special purpose use properties. The approach isn't used with condos or co-ops, and isn't used as often with older properties, because it's difficult to accurately estimate depreciation.

Which one of the following statements about community property rights is true? All 50 states have community property rights. Community property rights are illegal in all 50 states. Nine states have community property rights. Only nine states out of 50 do not have community property rights.

Nine states have community property rights: Nine states have community property rights: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. Alaska gives married couples the option of taking property as community property

What are the main benefits to veterans of the VA-guaranteed loan program? A VA guarantee of the property condition Lower interest rates than are available on the open market No down payment, no mortgage insurance, and no prepayment penalty Reduced homeowner's insurance requirement

No down payment, no mortgage insurance, and no prepayment penalty

You're representing Abe and Ben in a dual agency situation. Abe tells you something that would give Ben a distinct advantage if he knew. Do you tell Ben? No, because agents can't share information with their clients. No, because it's hearsay. No, because you can't share one client's confidential information with another client. Yes, because Ben is your client and has a right to know.

No, because you can't share one client's confidential information with another client.

Donald purchased a property five years ago. He lived in the property for a year, then rented it out to a family friend. Now he is selling the property for a capital gain of $10,000. Can he exclude the gain from his taxes? No, he did not live in the home for two of the preceding five years. No, he is not currently residing in the home. No, the gain is not large enough to exclude. Yes, he can exclude the gain.

No, he did not live in the home for two of the preceding five years.

To what form of dispute resolution do buyers and sellers agree when signing the Contract to Buy and Sell Real Estate? Binding arbitration Binding mediation Non-binding mediation Specific performance

Non-binding mediation: A specific clause in the contract requires buyers and sellers to submit to non-binding mediation as a first attempt to resolve any contract disputes.

What takes precedence over a deceased person's wishes to grant his property at death, even if those wishes are specified in the decedent's will? Intestate succession Location, location, location Operation of law Public interest

Operation of law: Operation of law trumps a will. It says that what's legally required must be satisfied before the terms of the will apply.

Which one of the following commercial property managers' duties requires that they keep the property and facilities in good condition and schedule and budget for needed repairs and upkeep work? Lease the property. Negotiate leases. Oversee the maintenance of buildings on the property. Qualify potential tenants.

Oversee the maintenance of buildings on the property.

What section of the property management agreement states that the owner actually owns the property, and it's not facing foreclosure? Compensation Description of duties Owner's covenants Signature of the parties

Owner's covenants

How are previous years' unpaid taxes handled at closing? Paid by buyer Paid by lender Paid by seller Prorated between buyer and seller

Paid by seller

Judy is showing a home in a town comprised of smaller "villages," each with a small shopping area and surrounded by lovely green space with trails and playgrounds. What classification of zoning describes this area? Commercial Planned unit development Residential Special land use

Planned unit development

Which entity is responsible for deciding the general layout of a specific municipality —a city, town, or village—and mapping the zones and the uses allowed within each zone? County legislature Mayor Planning board Zoning board of appeals

Planning board

Fair housing legislation was, in part, the result of a long history of Supreme Court decisions. Which Supreme Court case determined that separate facilities for blacks and whites were constitutional as long as they were "equal"? Brown vs. Board of Education Buchanan vs. Warley Jones vs. Mayer Plessy vs. Ferguson

Plessy vs. Ferguson: The Plessy vs. Ferguson case resulted in the doctrine of "separate but equal" that made racial discrimination legal.

Sandra and Dwight are neighbors who share a common driveway, but the driveway is on Dwight's property. What kind of ownership rights does Dwight have of the driveway? Absolute Non-possessory Possessory Temporary

Possessory

This statement is part of a promissory note attached to a security instrument: "I have the right to make payments of Principal at any time before they are due." What's the name of the clause where this statement is included? Lock-in clause Penalty clause Pre-payment clause Principal clause

Pre-payment clause

Ellen has only been licensed for two weeks, but she's already toured the home of potential clients, the Birds. What should she do to next to secure the listing? Call her mom and get a pep talk. Prepare a CMA. Print out two copies of her professional resume. Review her pre-licensing coursework for information about taking property photos.

Prepare a CMA.

What's part of the licensee's role in the closing process? Nothing Paying the closing fees Preparing clients for closing Preparing the closing documents

Preparing clients for closing

A consumer is moving to a new area and uses social media to try to line up a real estate professional to help him find a new home. He asks how much he'll need to pay his licensee. One firm he contacts tells him that all licensees in the area charge at least 2%. What antitrust violation does this imply? A tie-in arrangement Group boycotting Market allocation Price fixing

Price fixing

According to the U.S. Department of Justice, which type of antitrust violation is an agreement between competitors to eliminate discounts to all customers or certain types of customers? Group boycotting Market allocation Price fixing Tie-in arrangement

Price fixing

According to the U.S. Department of Justice, which type of antitrust violation is an agreement between competitors to eliminate discounts to all customers or certain types of customers? Group boycotting Market allocation Price fixing Tie-in arrangement

Price fixing: Price fixing may include an agreement to eliminate discounts.

What's the equation for the gross rent multiplier?

Price/rent=GRM 100,000/10,000=10 Annual rent multiplier is usually between 5-20 Monthly rent multiplier is usually between 80-140 If its monthly you need to convert it to months: 100,000/10,000=10 10,000/12=833 100,000/833= 120

In which market do lenders that originate real estate loans operate? Government market Primary mortgage market Real estate investment trust market Secondary mortgage market

Primary mortgage market

Carlos, who is Black, refuses to rent the available unit in his apartment building to anyone who appears to be middle Eastern. What's true about his actions? Allowed by the federal Fair Housing Act because Carlos belongs to a protected class Allowed if he uses a real estate agent to communicate with all applicants Considered a personal decision that is protected by the federal Fair Housing Act Prohibited by the federal Fair Housing Act

Prohibited by the federal Fair Housing Act: The federal Fair Housing Act prohibits anyone from refusing to rent to someone based on protected class status, such as national origin or religion.

Which type of analysis that a property manager performs includes a discussion of the property's current condition and recommendations to stall or reverse obsolescence? Analysis of alternatives Competitive analysis Market analysis Property analysis

Property analysis: The property analysis includes a discussion of the property's current condition and recommendations to stall or reverse obsolescence.

Which of the following is a piece of specific data an appraiser may gather? Cost of living Employment figures Population size Property lot size

Property lot size

Like other agency agreements, the property management agreement details the terms of "employment" between the _______ (agent) and the _______ (client). Landlord; tenant Owner; property manager Owner; tenant Property manager; owner

Property manager; owner

Many buyer agency agreements contain a provision which comes into play if the buyers let the agreement expire and then try to contact a seller directly. What is this provision called? Commission assignment Exclusivity clause Mitigation clause Protection clause

Protection clause

Colorado's deed of trust conveys title to the property to the _____________ to hold in trust until the loan is repaid. Colorado Real Estate Commission Public beneficiary elected by the financial commission Public trustee in the county where the property is located State treasurer

Public trustee in the county where the property is located

The Colorado deed of trust uses a ______________, who will handle the release of title when the loan has been repaid in full. Common beneficiary Private trustee Public trustee Trustee in name

Public trustee: In Colorado, each county has an office of the public trustee, who's named as the trustee on all standard deeds of trust and who manages the release of title when the loan is paid.

An inheritable freehold estate that's a fee simple defeasible (where the grantor can reclaim ownership) is also known as ______. Fee absolute Fee simple Qualified fee Tenancy at will

Qualified fee

Homeowner Shaun loves DIY projects and decided to build some bookshelves for his home office. He bolted the shelves to the wall and installed trim around them so they became an integral part of the room. When he sells his home, the bookshelves will be considered ______. Personal property because Shaun installed them himself Personal property because they're not an original part of the building Real property because of the method of annexation Real property because Shaun conveyed them to the buyer

Real property because of the method of annexation: Attaching personal property to real property, thereby making it a fixture, is called annexation. The bookshelves became real property because of the permanent method of attaching them to the wall.

How can Colorado real estate brokers help ensure appraisal accuracy for residential properties? Ask appraisers to use the cost approach Become a licensed appraiser in Colorado Record all seller concessions in the property transaction documents Work only with Certified General Appraiser

Record all seller concessions in the property transaction documents

Many market conditions impact housing prices. Which of the following is a true statement? High unemployment rates mean there are more available buyers in the market. Inflation increases buying power. Low unemployment rates mean there are fewer available buyers in the market. Reduced consumer confidence makes new buyers wary of purchasing and homeowners hesitant to trade up.

Reduced consumer confidence makes new buyers wary of purchasing and homeowners hesitant to trade up.

When a lower-quality property is adjacent to a higher-quality property, it can diminish the value of the higher-quality property. What economic principle is this? Anticipation Contribution Progression Regression

Regression

The state has seized a strip of Marge's land. It's relatively small but goes right through her sheep pastures. She just found out that the state will use it for a six-lane highway. She's pretty sure that the value of her land is going to plummet, and she can't figure out how to use it as pastureland anymore. What kind of involuntary alienation is she dealing with? Court-ordered partition of property Escheat Foreclosure Regulatory taking

Regulatory taking: This is an example of regulatory taking. This act happens when private property is regulated by a government authority to the detriment of the landowner.

Liz is assisting a client who's looking for a commercial space to lease. Which of the following duties will Liz be expected to perform on her client's behalf? Determine what clauses should be included in the lease agreement and the monthly lease amount. Help market her client's business once the lease has been signed. Manage her client's monthly lease payments to the owner. Represent her client's interest in all negotiations and transactions regarding the lease of the property.

Represent her client's interest in all negotiations and transactions regarding the lease of the property.

Your client wants a spacious yard on which to plant multiple gardens. You think you've found the perfect property for her. What should you do to find out if there are any documented easements attached to the property that might impact your client's gardening goals? Ask around the neighborhood. Ask the current owners. Check the tax map of the area. Run a property title search.

Run a property title search.

Which approach to finding property value is most commonly used when appraising single-family homes for lending purposes? Cost approach Income capitalization approach Mortgage approach Sales comparison approach

Sales comparison approach: Appraisers will most commonly use the sales comparison approach to find the market value of single-family homes that will be owner-occupied.

Which approach to finding property value is most commonly used when appraising singlefamily homes for lending purposes? Cost approach Income capitalization approach Mortgage approach Sales comparison approach

Sales comparison approach: Appraisers will most commonly use the sales comparison approach to find the market value of single-family homes that will be owner-occupied.

What data will appraisers need to gather to use the sales comparison approach? Sales prices for past transactions involving the subject property Sales prices for similar properties in other cities Sales prices on recently sold properties similar to the subject property The cost of materials needed to reconstruct the property

Sales prices on recently sold properties similar to the subject property: When using the sales comparison approach, appraisers need information on the sales prices of recently sold properties that are similar to, and in the same market as, the subject property.

Where can a party reviewing a title commitment find basic details about the transaction? Schedule A Schedule B-1 Schedule B-2 This is not contained in the title commitment

Schedule A

Which commitment section matches the schedule to its description and provides information related to the transaction, including legal description and parties? Schedule A Schedule B-1 Schedule B-2 Schedule C

Schedule A

The mortgage and the deed of trust are ______ that pledge property as collateral for a loan. Amortization plans Promissory notes Security instruments Title documents

Security instruments

What's the purpose of the federal Safe Drinking Water Act? Increase water usage Issue fines for sources of water contamination Issue permits for private wells Set guidelines for drinking water safety

Set guidelines for drinking water safety

Pam is taking out a mortgage for her home purchase. Which of the following is a true statement? She will be working with lenders in the primary mortgage market. She will mostly be working with lenders in the secondary mortgage market. The mortgage company is prohibited from making money on her loan. The mortgage company is required to sell her loan on the secondary mortgage market.

She will be working with lenders in the primary mortgage market.

Human rights laws, such as the federal Fair Housing Act, seek to prevent discriminatory acts from damaging individuals and ______. Brokerages Government property Personal property Society

Society

Chester has been providing some real estate services for new buyer customer Tom. Which of these is a task that Chester may only perform if he signs an agency agreement with Tom? Email Tom new listings. Provide a list of amenities to Tom for a listed property. Show Tom properties. Suggest negotiation terms for a listing Tom would like to buy.

Suggest negotiation terms for a listing Tom would like to buy

Betty hired a contractor to replace her gutters. Within days, the gutters leaked and flooded her basement. She complained to the contractor, who replaced the gutters again. The next time it rained, the gutters leaked and flooded Betty's basement a second time. Frustrated, Betty decided to file a lawsuit against the contractor in an attempt to recover the money she lost. This is an example of ______. Accepting partial performance Rescinding the contract unilaterally Suing for damages and breach of contract Suing for specific performance

Suing for damages and breach of contract

Tenant Janine called landlord Tanya to report that one of the large stones supporting the bottom step of the entry staircase had fallen off. Tanya came by and simply placed the stone back into its slot. It seemed to be sturdy enough for the time being. Unfortunately, the step didn't hold for long and another tenant, Ann, was injured. According to Colorado law, who is liable for the Ann's injury? Ann Janine No one Tanya

Tanya

Stacy's lease agreement states that she's responsible for paying any tax increase over the base year's taxes, in addition to the base rent. What type of clause is this? Escalation Estoppel Services included Tax

Tax

Landlord Cindy rents a home to tenant Dave. While visiting, Dave's Aunt Myra got burnt while sifting logs in the built-in fire pit. According to Colorado law, unless stated in the lease, who is liable for Aunt Myra's injury? Aunt Myra Landlord Cindy Tenant Dave The fire pit manufacturer

Tenant Dave

You're working out a deal with a possible commercial tenant. The tenant has asked you to build out eight cubicles in the space to fit her needs. What type of maintenance will you be performing? Corrective Custodial Preventive Tenant improvements

Tenant improvements

Eliot is considering buying property subject to an easement to use the boat dock located on the neighboring property. What detail should Eliot specifically look for in the easement agreement that could reveal additional costs to owning the property? Circumstances under which the easement would be breached or terminated Terms for easement maintenance, such as taxes, insurance, and repairs The servient estate's promise not to disturb easement use or access What exact usage rights the dominant estate has to the easement

Terms for easement maintenance, such as taxes, insurance, and repairs

The umbrella organization that's authorized by Congress to develop and oversee the standards and requirements real estate appraisers must follow is called ______. Appraisal Qualifications Board Appraisal Subcommittee FIRREA The Appraisal Foundation

The Appraisal Foundation

Katherine is purchasing a second home as an investment/vacation property. She has a large down payment, and the seller is financing the rest of the purchase. Which of these statements is true? The CFPB provides forms similar to the Closing Disclosure and Loan Estimate for seller/financers to use. The Closing Disclosure and Loan Estimate aren't required in a seller-financed transaction. The seller is required to provide the same disclosure forms to Katherine as a standard lender would provide. The seller will provide the Closing Disclosure and Loan Estimate to Katherine but has a longer timeframe to do so than a traditional lender would have.

The Closing Disclosure and Loan Estimate aren't required in a seller-financed transaction.

Trinity has applied for a home equity line of credit to perform some upgrades on her home. Within what timeframe must her lender provide the Closing Disclosure? At closing The Closing Disclosure isn't required for a HELOC. Three days before closing Three days from her loan application date

The Closing Disclosure isn't required for a HELOC: Home equity lines of credit aren't subject to TRID disclosures, so Trinity's lender isn't obligated to provide a Closing Disclosure, though other disclosure forms may be required.

Tryon Corp. and Sandoval, Inc. were joint owners of the former Sandy Glass manufacturing facility. An environmental assessment found that the two companies share joint and several liability for a hazardous materials cleanup. What could happen if the two of them don't agree to cooperate in the cleanup? The cleanup project will be put on hold for one to five years. The EPA will do the cleanup itself and can legally bill whichever company has the most assets. The EPA will perform the cleanup and will bill CERCLA's trust fund for all of the cleanup costs. The EPA will perform the cleanup itself and bill Tryon and Sandoval for the cost.

The EPA will perform the cleanup itself and bill Tryon and Sandoval for the cost.

In 2010, what agency banned Freon® as a refrigerant? The attorney general The DEC The DEP The EPA

The EPA: On January 1, 2010, the EPA, under Title VI of the Clean Air Act, mandated that refrigerant R-22 (commonly known as Freon®) be replaced by 410A (commonly known under the brand name Puron®).

Rachel is a seller agent for the Mittans. The Davises present an offer to Rachel to purchase the Mittans' property. Whose interests should Rachel put first? Both the Mittans' and the Davises' Her own The Davises' The Mittans'

The Mittans'

What entity sets the standards for the appraisal report? Appraisal Ethics Association FIRREA State real estate license law USPA

The USPAP has required standards for the appraisal report.

Under what circumstances may a Colorado seller choose not to complete the residential Source of Water Disclosure form? The buyer waives the right to receive information about the property's potable water source. The Water & Sewer Supply section of the Seller's Property Disclosure is completed. The water source is a private well. The water source is a public source.

The Water & Sewer Supply section of the Seller's Property Disclosure is completed: If the Water & Sewer Supply section is completed on the Seller's Property Disclosure, a Colorado seller isn't required to complete the Source of Water Disclosure.

Contingencies normally include the responsible party's name, the deadline for the contingency removal, and _______. The actions required for removal The date the contingency was added The reason the contingency was added Three reasons why the contingency is required

The actions required for removal

When a government entity exercises its powers to create zoning ordinances, what must be followed? Federal zoning codes The area's comprehensive plan The state's zoning codes Universal design standards

The area's comprehensive plan

Select the choice that best translates this clause into plain English. "Any partial prepayment shall be applied against the principal amount outstanding and shall not postpone the due date of any subsequent monthly installments or change the amount of such installments, unless the Note holder shall otherwise agree in writing." The borrower is allowed to prepay the loan without penalty. The borrower will be charged a late fee if the monthly payment isn't received on the proper date. The borrower will be charged a penalty if the loan is paid off early. The lender is allowed to determine the amount of each monthly payment that will go to principal rather than interest.

The borrower is allowed to prepay the loan without penalty

Based on Megan's Law, who is responsible for determining if a registered sex offender lives in the neighborhood? The buyer The buyer's broker The listing broker The seller

The buyer

Who's responsible for doing the final walk-through of a property? The buyer and the buyer's agent The lender The seller and the seller's agent The title insurance representative

The buyer and the buyer's agent: The buyer and the buyer's agent will typically do a pre-closing final walk-through of a property to ensure that all of the buyer's requests have been met and the property is as stated in the sales agreement.

How is the Supreme Court case of Brown vs. Board of Education significant in the way fair housing laws are implemented today? The court found that racially segregated school buses were unconstitutional. The court legalized racial segregation through the "separate but equal" doctrine. The court's decision made segregated school boards illegal. The decision overturned the doctrine of "separate but equal."

The decision overturned the doctrine of "separate but equal."

Why might a buyer want to assume a loan? The buyer doesn't want to follow a lender qualification process. The existing loan has a lower interest rate than current market rates. The principal remaining on the existing loan is low. The transfer of the property won't need to be approved by the lender if the loan is assumed.

The existing loan has a lower interest rate than current market rates.

The owner's covenants section of the property management agreement between manager Fred Baines and owner Lilian James contains three key pieces of information. First, Fred is named as the person responsible for managing the building. Secondly, Lillian is identified as the property's legal owner. What's the third key piece of information? That Fred is indemnified from any illegal acts of the tenants The duration of the contract and its start and end dates The fact that the owner is not facing foreclosure The fee that Lillian will pay Fred for his property management services

The fact that the owner is not facing foreclosure

Which of the following statements about covenants is true? A bargain and sale deed will always come with covenants of warranty. Every conveyance comes with a fully warrantied title. The full covenant and warranty deed contains the strongest and broadest form of guarantee of title. The "full covenant" typically means three covenants are included.

The full covenant and warranty deed contains the strongest and broadest form of guarantee of title.

Which of the following is true regarding termination of a tenancy for years lease? The lease automatically ends on the date stated in the lease, with no notice required by either party. The terminating party must deliver notice to the other party within three months of the termination date. The terminating party must provide written notice, including the property description and termination date. The terminating party must sign the notice and deliver it to the other party before 30 days prior to termination date.

The lease automatically ends on the date stated in the lease, with no notice required by either party.

Carly's closing on an REO property was suddenly delayed due to an internal audit. What does this mean? Carly's lender decided to further audit her loan application materials. The banking association is auditing the lender's foreclosure files. The federal government is auditing the lender's foreclosure process. The lender has requested a title audit to ensure that the foreclosure was properly handled.

The lender has requested a title audit to ensure that the foreclosure was properly handled.

Which of the following must be included in a buyer agency agreement? An automatic renewal clause A two-year termination Standardized real estate commission The licensee's duties and responsibilities to the buyer

The licensee's duties and responsibilities to the buyer

Which of these situations would be exempt from most provisions of the federal Fair Housing Act? A homeowner engages a real estate professional to rent out his basement apartment. An investor owns and rents out five duplexes. A non-profit owns 20 properties that it only rents to Caucasian families. The local Elks club owns a property that's rented only to Elks club members

The local Elks club owns a property that's rented only to Elks club members

Before development of its new zipper factory begins, XYZ Corp. finds out that a section of the property it wants to build on is prone to flooding. It decides to dedicate this portion of the property to the government for public use to get out of handling the maintenance and drainage issues. The local government refuses. Why? Flood insurance wasn't offered. The government can't accept land dedications from corporations. The maintenance or cost to fix the problem might outweigh the benefits of its use. There's no consideration given from the grantor for warranties against flooding

The maintenance or cost to fix the problem might outweigh the benefits of its use.

In completing a CMA, finding a comparable property that had a quick sale may indicate which of the following? It's a buyer's market. The market for similar homes is good. The other agent was incompetent. The property was priced too high.

The market for similar homes is good.

Which of the following is an example of easement termination by merger? The dominant estate owner takes action that shows a clear intent to stop using the easement. The owner of a servient estate buys the property of the dominant estate. The owner of the dominant estate has an alternate route and no longer needs the easement. The owners of both estates decide not to use the easement.

The owner of a servient estate buys the property of the dominant estate.

If a buyer assigns a contract to another party and that party defaults, what's the impact on the contract? The contract is executed. The contract is void. The party who assigned the contract is responsible for carrying out the contract's terms. The seller's only recourse is to seek remedies against the party to whom the contract was assigned.

The party who assigned the contract is responsible for carrying out the contract's terms.

In pricing a property, what might expired listings tell the real estate professional? The price at which a property is most likely to sell The price at which a property won't sell The property's competition When the home will sell

The price at which a property won't sell

Which of the following is a true statement about when a promissory note is sold? Promissory notes cannot be sold. The note must be notarized. The promissory note is endorsed to the new owner of the loan. When the note is sold, the attached security instrument is assigned to the lender.

The promissory note is endorsed to the new owner of the loan.

Why would an appraiser use gross income multiplier, direct capitalization, or yield capitalization-rather than gross rent multiplier-to determine the value of an income property? It's the appraiser's personal preference. The property has income from other sources in addition to rent. These calculations are simpler to do than using gross rent multiplier. Using gross rent multiplier is only appropriate for single-family residences.

The property has income from other sources in addition to rent: GRM is a tool that can provide an estimate of value when the property has income only from rent, which is typically true of one- to four-unit residential properties.

Which of the following is a potential consequence of overpricing a property? A competing broker can report you for unfairly pricing a property. It increases the odds that buyers will be interested because it must be worth the higher price point. The property will receive offers from serious buyers only, since it is listed at a higher price point. The property won't appraise high enough and you could lose the contract if you do get an offer

The property won't appraise high enough and you could lose the contract if you do get an offer

In terms of a lease contract, what serves as the parties' consideration? The lessee's and lessor's covenants The lessee's and lessor's signatures The rent payment and the property The words of conveyance and acceptance

The rent payment and the property

Who is responsible for completing the Seller's Property Disclosure form in Colorado? The home inspection agent The seller The seller's broker The selling broker

The seller

Seller Jamison is closing on his property with buyer Conrad. Jamison paid the current year's property taxes already. Is this a prepaid or accrued expense, and how will it be represented on the settlement statement? The taxes are an accrued expense, and will appear as a buyer credit and a seller debit. The taxes are an accrued expense, and will appear as a buyer debit and a seller credit. The taxes are a prepaid expense, and will appear as a buyer credit and a seller debit. The taxes are a prepaid expense, and will appear as a buyer debit and a seller credit.

The taxes are a prepaid expense, and will appear as a buyer debit and a seller credit.

Which of the following actions would result in the legal termination of an agency agreement? The client wants the seller to make improvements to the property. The client wants to attach an addendum to the sales contract. There is an unexpected death in the agent's family. The term specified in the agency agreement expired.

The term specified in the agency agreement expired.

What is the 95% rule as it relates to tax-deferred exchanges? The combined fair market value of the property (or properties) being exchanged into cannot be more than 95% of the relinquished property. The fair market value of the relinquished property must be 95% more than the property (or properties) being exchanged. The total value of the property being sold is at least 95% of the value of the profit to be made on the property (or properties) being exchanged. The total value of the property (or properties) being exchanged is at least 95% of the value of the property being sold.

The total value of the property (or properties) being exchanged is at least 95% of the value of the property being sold.

When a borrower has paid off the loan, how is the release handled if the security instrument is a deed of trust? The lender executes and records a satisfaction of mortgage and returns the note to the borrower. The lender returns the note and deed of trust documents to the borrower. The trustee executes and records a deed of reconveyance and the lender returns the note to the borrower. The trustee files for a release of lien and the lender returns the note to the borrower.

The trustee executes and records a deed of reconveyance and the lender returns the note to the borrower.

Which of the following statements is true of investment properties? They can be leveraged. They're guaranteed to make a profit. They're highly liquid. T hey're very low risk.

They can be leveraged.

Marcy listed her property with Jennings Homes in March. The market is slow, and Marcy's property isn't in great condition, though she's sure she can get top dollar for it because of its location. Her agent encourages her to either reduce the price or fix the property up, but she refuses. Both Marcy and her agent are frustrated. What's the best option for both of them? Bring in another agent to help price the property. Let the listing expire. One party or the other should terminate the listing. They can mutually agree to terminate the listing.

They can mutually agree to terminate the listing.

What can be said about a designated agent's duties? They must be negotiated ahead of time. They're the same as a dual agent's duties. They're the same as a single agent's duties. They're the same as the duties to a customer.

They're the same as a single agent's duties.

For what reason do borrowers commonly seek the assistance of individual private lenders? They don't trust banks. They prefer the interest rate they will get from an individual private lender. They prefer to keep their real estate transactions private. They're unable to find complete financing elsewhere.

They're unable to find complete financing elsewhere.

Shakira is attending an association meeting when, in a small group breakout, her group begins discussing how to deal with the new kid in town: a real estate firm that charges a flat $500 to list properties, then lets the sellers fend for themselves. Why should Shakira leave the discussion? She needs to get to work developing this model for herself The group seems bent on creating a tie-in arrangement This conversation seems to be turning into a discussion of market allocation This conversation sounds like it might become an antitrust violation

This conversation sounds like it might become an antitrust violation

Shakira is attending an association meeting when, in a small group breakout, her group begins discussing how to deal with the new kid in town: a real estate firm that charges a flat $500 to list properties, then lets the sellers fend for themselves. Why should Shakira leave the discussion? She needs to get to work developing this model for herself The group seems bent on creating a tie-in arrangement This conversation seems to be turning into a discussion of market allocation This conversation sounds like it might become an antitrust violation

This conversation sounds like it might become an antitrust violation

Ralph is a landlord who owns several apartment buildings. Which of these actions does the federal Fair Housing Act prohibit Ralph from taking? Establishing a "no pets" policy for one of his apartment buildings Evicting a female tenant who's found to be distributing illegal drugs Refusing to show, sell, or rent property to smokers Threatening to evict a couple because they filed a complaint of harassment against him

Threatening to evict a couple because they filed a complaint of harassment against him

In Colorado, a party to a contract has _____ from the date of a contract breach to sue the other party. Four years Six years Three years Two years

Three years

Which of these is an example of antitrust violations common to real estate? Fraud, concealment, and misrepresentation Profiteering, racketeering, and domineering Puffery, hyperbole, and exaggeration Tie-in arrangements, market allocation agreements, and group boycotting

Tie-in arrangements, market allocation agreements, and group boycotting

Tim's been a difficult tenant since his divorce six months ago. When landlord Peggy discovers that he's punched a hole in the bedroom door, how does Colorado's Warranty of Habitability Act work to protect either Tim or Peggy? Because the damage isn't a health hazard, Peggy and Tim are required to work out a repair agreement that shares responsibility, and do so in a reasonable amount of time. Peggy must repair the damage within a reasonable amount of time. If she doesn't, Tim can reduce the amount of rent he pays. Tim is liable for the damage he caused to the property, since it was an intentional act. Tim may not be held liable for the damage, but since it doesn't create a health hazard, Peggy's not required to repair the door.

Tim is liable for the damage he caused to the property, since it was an intentional act: The Warranty of Habitability Act makes the tenant responsible for keeping a rental property safe, clean, and well-maintained. Tenants are liable for intentional damage to property, so Tim must pay for the repair.

What phrase do many real estate contracts contain that reminds the parties to avoid unnecessary delays to the transaction, and to adhere to all contract dates? Haste makes waste Patience is a virtue Seek the advice of an attorney Time is of the essence

Time is of the essence: Time is of the essence means that specific timeframes must be adhered to. In the event one party misses a deadline, that party is in breach of contract

Who delivers the evidence of a clear title at the closing? Buyer Lender's attorney Licensee representing the buyer Title insurance representative

Title insurance representative: Title insurance representatives present all documents to the parties, obtain signatures, and deliver evidence of clear title

What's the purpose of an Agreement to Amend/Extend Contract? To amend the buyer's or seller's agreement with the broker To amend the terms of or extend due dates on the original contract To extend the date on which the listing agreement ends To respond to the home inspection results

To amend the terms of or extend due dates on the original contract: An executed Agreement to Amend/Extend Contract amends the original terms of a purchase contract or extends due dates as necessary.

Jennings has received a Closing Disclosure from his lender. What's the purpose of this form? To detail all costs Jennings will owe at closing To disclose the distribution of commissions that will occur at closing To estimate closing costs To estimate the seller's net proceeds

To detail all costs Jennings will owe at closing: The Closing Disclosure, provided at least three business days before closing, details the buyer's closing costs, as well as other loan terms, such as the projected monthly payment

Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's the purpose of this document? To detail the amount Lawrence needs to bring to closing To detail the estimated closing costs for Lawrence's loan To disclose the interest rates available on this lender's various loan programs To disclose the lender's source of loan fund

To detail the estimated closing costs for Lawrence's loan

Aside from cash flow, appreciation, and earning passive income, what is another reason someone may want to legally invest in real estate? For depreciation For liquidity To hedge against inflation To launder money

To hedge against inflation

Above all, why should a property manager have some knowledge of systems such as heating, ventilation, air conditioning, structural engineering, waterproofing, plumbing, electrical, gas, oil, water, security, maintenance, and elevators? To instruct tenants on how to make all repairs themselves To make income on the side To minimize the potential of receiving bad advice on repairs, replacements, and parts To seek personal enrichment

To minimize the potential of receiving bad advice on repairs, replacements, and parts

What is the purpose behind Appraiser Independence Requirements? To ensure that all appraisers are independently licensed To lobby the U.S. Congress and state legislatures to pass appraiser-promoting laws To protect appraisers' ability to assess an accurate value for a property by avoiding outside pressure or influence To provide appraisers with education and emergency funds to ensure that their appraisal practice is successful

To protect appraisers' ability to assess an accurate value for a property by avoiding outside pressure or influence

Why might a licensee want to make two visits to the property as part of a listing presentation? To find out how many licensees the seller will be interviewing, which will help determine how much effort to put into preparing a comparative market analysis To see if the sellers say the same thing both times To see the property at different times of day To use information from a tour to prepare the CMA

To use information from a tour to prepare the CMA

A jewelry store is relocating from a mall to a free-standing building and is pulling all of its display cases out of the storefront. These cases belong to the jewelry store because they are ______. Franchise fixtures Improvements Jewelry fixtures Trade fixtures

Trade fixtures

These types of buyers want to purchase larger or newer homes. They're fairly knowledgeable because they've purchased before. First-time buyer Retiree Trade-down buyer Trade-up buyer

Trade-up buyer

The Elliotts have lived in their current house for five years. Space got a little tight after their first child was born. Now that they're expecting their second child, they've decided they really need a new house with more space in a good school district. What type of buyers are the Elliotts? First-time buyers Retirees Trade-down buyers Trade-up buyers

Trade-up buyers

Eminent domain and condemnation occur when the ______ of land is involuntary. Re-survey Rezoning Survey Transfer

Transfer

What's alienation with regard to real estate? Acquiring property in a foreign country Denying access to one's property Granting access to one's property Transferring ownership of a property

Transferring ownership of a property

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

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

How long must a taxpayer have lived in a home in order to claim a capital gain exclusion? One of the preceding two years The previous year only Three of the preceding five years Two of the preceding five years

Two of the preceding five years

The Federal Housing Administration is part of the ______. Consumer Finance Protection Bureau Federal Deposit Insurance Corporation MLO U.S. Department of Housing and Urban Development

U.S. Department of Housing and Urban Development

The ______ of real estate markets makes it impossible to generalize the impact events in other areas will have on real estate values. Immobility Indestructibility Slowness of response Uniqueness

Uniqueness

Of the following, which is considered 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

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

If the responsible parties refuse to clean up hazardous contamination, the EPA can hire its own contractors and seek damages in court for ______. Up to 100% of the actual clean-up costs Up to 10 times the actual clean-up costs Up to five times the actual clean-up costs Up to three times the actual clean-up costs

Up to three times the actual clean-up costs: If those who are responsible for the contamination refuse to pay for the clean-up of the site, the EPA can hire its own contractors, then seek damages in court for up to three times the actual clean-up costs

When you use a comparative market analysis to calculate a suggested listing price range for a particular property, which of the following actions will you take? Adjust prices from all properties listed or sold within a one-mile radius of the subject property. Calculate a price range based on data from expired listings and pending sales. Use adjusted prices from comparables and refine a range using active listings, expired listings, and possibly pending listings. Use the prices of sold comparables and active listings, adjusted for time listed

Use adjusted prices from comparables and refine a range using active listings, expired listings, and possibly pending listings.

Brandon, a property manager for an apartment complex in the downtown area, is reviewing tenant applications. As part of the screening process, Brandon always checks the applicants' credit reports if they have given their permission for him to do so. In addition to obtaining the applicant's permission, what does the law require property managers to do when using credit reporting? Charge each applicant a fee to run the report Only rent to those applicants who have a credit score of 750 or above Use it fairly Use the same credit reporting agency

Use it fairly

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

Brandon wants to find out how many rental units are unoccupied in his area. Which market indicator provides this information? Inventory rates Price levels Sales volume Vacancy rates

Vacancy rates

Kevin and Regina sold their property to Vickey using a general warranty deed. Which of these statements is true? Either Regina or Kevin can convey the property. Kevin and Regina are the grantees. Vickey is the grantee. Vickey is the grantor.

Vickey is the grantee.

You sign a contract to purchase a machine that will allow you to travel back in time and meet Abraham Lincoln. Assuming that time machines don't actually exist (for now), what type of contract is this? Enforceable Unilateral Void Voidable

Void: A party can't promise to do something that's actually impossible in a contract. This contract is void because the seller of the machine literally can't perform his side of it.

Ken signed a contract to purchase Debra's condo. Ken signed the contract two weeks prior to turning 18, which is the age of majority in his state. Debra found out about his age prior to the closing but honored the contract, and they closed on the condo a month after Ken's birthday. What was the status of the contract when Ken and Debra entered into it? Executed Illegal Void Voidable

Voidable: Because Ken was a minor when he entered into the contract, he had the option to cancel it (making it a voidable contract). However, the parties to a voidable contract may choose to execute it, which is what happened here

When does a stagnant real estate market occur? When both supply and demand are high When both supply and demand are low When supply is high and demand is low When supply is low and demand is high

When both supply and demand are low

Interest rates determine buying power. Which of the following is a true statement? When interest rates are high, buyers are often priced out of the market. When interest rates are high, buyers will be able to afford higher-priced homes. When interest rates climb, more buyers are encouraged to buy. When interest rates shift higher, buyers can still buy in the same price range.

When interest rates are high, buyers are often priced out of the market.

When does a buyer's market occur? When both supply and demand are high When both supply and demand are low When supply is high and demand is low When supply is low and demand is high

When supply is high and demand is low

Hometrust Real Estate uses Heritage Title Company to hold all earnest money deposits. When is Hometrust required to submit closing instructions to Heritage? By the title deadline on the purchase contract Immediately preceding the closing When the earnest money is delivered to Heritage When the purchase contract is signed

When the earnest money is delivered to Heritage

Hometrust Real Estate uses Heritage Title Company to hold all earnest money deposits. When is Hometrust required to submit closing instructions to Heritage? By the title deadline on the purchase contract Immediately preceding the closing When the earnest money is delivered to Heritage When the purchase contract is signed

When the earnest money is delivered to Heritage: If a title company is to hold the earnest money, closing instructions must accompany earnest money delivery to the title company.

What do the property tax section check boxes on the Colorado Contract to Buy and Sell allow the parties to indicate? How property taxes will be prorated How special taxes will be prorated Whether or not previous years' taxes are to paid out of closing proceeds Whether property tax calculations are to be based on the most recent tax bill or the current mill levy

Whether property tax calculations are to be based on the most recent tax bill or the current mill levy: Property tax prorations may be based either on the most recent tax bill or on the current levy as indicated by these check boxes on the contract.

In a case of lease abandonment, what's the landlord's responsibility? A landlord may pursue the former tenant for unpaid rent, but may not rent the vacant property until the situation has been resolved. Nothing. The tenant abandoned the property. The landlord may legally charge rent until the natural lease expiration. The landlord must find another tenant within 10 days and may not pursue the former tenant for unpaid rent. While the former tenant is financially responsible for any unpaid rent, the landlord is responsible for attempting to find another tenant.

While the former tenant is financially responsible for any unpaid rent, the landlord is responsible for attempting to find another tenant.

May listing agreements be terminated without penalty? Only by the seller Only when they expire Yes, at any time since they're not binding Yes, if both the listing broker and the seller's agree in writing

Yes, if both the listing broker and the seller's agree in writing

Can police power ever be used in a way that restricts citizens' freedom? No, that's beyond the scope of police power. Yes, but only when the citizen has committed a crime. Yes, if it's for the public good. Yes, that's the purpose of police power

Yes, if it's for the public good.

A property has 100 units and is 95% occupied. Total vacancy and collection loss equals 6%. If the average rent is $750 per month, what is the potential annual gross income? $750,000 $900,000 $855,000

You got it right! The potential gross income is $900,000 annually ($750 x 12 months x 100 units).

Which of the following scenarios accurately represents your environmental disclosure responsibility as a real estate licensee? You must disclose all known environmental hazards for both residential and commercial properties. You must disclose all known environmental hazards for commercial properties only; residential disclosure is the seller's sole responsibility. You must disclose all known environmental hazards for residential properties only; commercial disclosure is the seller's sole responsibility. You must disclose all suspected environmental hazards for both residential and commercial properties.

You must disclose all known environmental hazards for both residential and commercial properties.

Which of the following statements is true about the listing presentation? It's best to leave out financial data (such as a CMA or comparable property information) and listing agreements, so the seller doesn't think you're jumping the gun and already counting your commission. The less you say, the better. You don't want to overwhelm your clients with numbers and decisions at this first presentation. The most important part of a listing presentation is to make the buyers like you as a person. Try not to talk numbers or about their house, but instead focus on charming them. You should go into the presentation fully prepared with a comparative market analysis, listing agreement, MLS listings of comparable properties, and your plan for marketing the sellers' property

You should go into the presentation fully prepared with a comparative market analysis, listing agreement, MLS listings of comparable properties, and your plan for marketing the sellers' property

What's your responsibility as a listing agent relative to the transaction as a whole? Your responsibility starts and ends with getting a buyer to sign a purchase agreement. Your role can be as broad or as narrow as you'd like. You should delegate the record keeping and documentation. You should manage the process from start to finish.

You should manage the process from start to finish

Your client would like to purchase a property that's subject to an existing lease agreement and includes the tenant's right to renew the lease. What's your client's obligation, if any, to uphold this term of the lease agreement? As the new owner and landlord, your client can disregard the renewal option. As the new owner and landlord, your client can terminate the existing lease. Your client is under no obligation to uphold any part of the existing lease agreement. Your client must honor that right and allow the tenant to renew at the end of the term.

Your client must honor that right and allow the tenant to renew at the end of the term.

Title One USA will hold the earnest money and provide closing services to Roger's client in the sale of his home. What form must Roger provide to the title company based on this information? Closing Instructions Closing Statement Earnest Money Receipt Earnest Money Release

closing Instructions

A _____ closing is when the buyer and the seller each use their own title company for a closing. Escrow Face-to-face Split Title

Split

Appraiser Jerry is looking past how a property is being used to determine a more optimal function. What is he determining? Cost to replace Highest and best use Market value Value in use

The highest and best use looks past the current use to determine if another use provides a higher value.

What's the minimum number of business days prior to closing that lenders have to provide borrowers with the Closing Disclosure form? Five Four Three Two

Three

What is the purpose of a listing agreement? To bind the seller to one agent To guarantee a sale To guarantee payment for the listing agent To spell out the agreement between the listing broker and the seller

To spell out the agreement between the listing broker and the seller

To what form of dispute resolution do buyers and sellers agree when signing the Contract to Buy and Sell Real Estate? A. Binding arbitration B. Binding mediation C. Non-binding mediation D. Specific performance

C. Non-binding mediation