Real estate practice

Ezra's lease on his condo includes an option to purchase. He told his landlord that he's ready to purchase the condo and they've negotiated a purchase price and closing date, what kind of contract is this?

Bilateral

Mortgage or/ee

Borrower? Mortgagor Lender? Mortgagee

What resources can you turn to for help?

Brokerage code of ethics Federal state and local laws Managing broker Peers Mentor

Alternative brokerage compensation

Brokerage firms may charge a flat fee for services provided Menu based or fee for services model allow clients to select the services they want a firm to provide )and therefore the services they pay for)

Which of the following statements about broker compensation in Oregon is true?

Brokers may only receive compensation for real estate services through their principal broker

Consent to disclosed limited agency in Oregon requires both parties to sign a form that includes

A statement explaining that the limited agent represents parties whose interest in the transaction are different or even adverse

True of listing agreements

Authorizes you to act on the sellers behalf to offer a property for sale Sets an expiration date Is signed by all parties Is given as a signed, true copy to the seller at the time of signing

The agency needs to have to most current information for licensees. Who is responsible for updating the following information?

Firm affiliation- principal broker Email address- broker Change in legal name- broker License status- broker Broker transfers to new firm- principal broker

Ethical steps

First-determine whether you face an ethical dilemma Second-determine whether you face an ethical Dilemma Third- explore the ethical choices of possible actions Fourth-decide what action to tak Fifth-state the reasoning behind the choice

Jenna is licensed in Washington and wants to help her friend in Oregon sell her home. What must Jenna do?

Follow the non-resident license process

Which areas does the agency have the authority to enforce regulations?

Fraud in real estate activities Trust fund laws

Which of these are listed in the Oregon revised statutes (also called the code) as duties a licensee owes a seller or landlord client?

Fulfill the terms of your agency relationship Promote the clients best interests Disclose the agency relationship to the client and other transaction parties

When are escrow funds dispersed?

Funds kept in escrow are released when the buyer, seller, and their lenders are satisfied that all conditions have been met

When licensees pay civil penalties that result from unlicensed activity what happens to the money collected?

General fund of the state treasury

Which of the following is an acceptable ad based on regulation z?

Get a low interest rate of 4.75% (4.925% APR) with as little as 10% down payment and a 30-year fixed rate with no points. The interest rate is a trigger term therefore the APR down payment and terms of the mortgage must also be disclosed

Once you and the client have signed the listing agreement what do you do with it?

Give the seller a legible copy File the original at your brokerage office

Purpose of provisions

Provides assurance to the seller that the buyer intends to go through with the sale- earnest money Identifies which items are to remain with the property- fixtures and personal property Identifies the date by which the seller will turn over the property to the buyer- possession

What is a tie-in arrangement?

Providing service only if the clients agree to use a service offered by another company

What two things might the FTC have you do to correct the deceptive advertisements you've circulated?

Publish new ads that correct the deception in the original ad Notify consumers who have bought the products based on deceptive claims

Puffing, misrepresentation, and fraud

Puffing (or puffery) involves a bit of hyperbole(exaggeration). Puffing slides into the realm of misrepresentation and even fraud when you intentionally state falsehoods.

What's the difference between puffing and misrepresentation?

Puffing appears to a reasonable person as an exaggerated statement that would not be relied on, where as misrepresentation occurs when a reasonable buyer would consider the statement reliable

Which of the actions does the secondary mortgage market commonly take?

Purchases loans from lending institutions

Offer requirements

Put the offer in writing Give buyer client a copy of the offer Keep a record of the time and date the offer is delivered to the sellers agent Indicate in the offer whether a deed or land sales contract is being used Identify whether evidence of title will be furnished to the buyer

The seven federally protected classes

Race, color, national origin, religion, sex, disability, familial status

The Oregon real estate agency handles complaints against which of the following Oregon professionals

Real estate brokers, principal brokers, property managers, and escrow agents

Real estate violations heard in a contested court hearing. Are ultimately decided by the

Real estate commissioner

Benny has been an Oregon real estate broker for more than a year now. He wants to start his own brokerage firm as a principal broker. He got his bachelors degree in real estate last month. His waiver for principal broker was denied. What did he forget to do?

Real estate commissioner approval The real estate commissioner has to approve the degree program in order for it qualify

Non-trust funds, as long as they're not commingled with trust funds, are not bound by _______.

Real estate laws

A properly prepared cma supports?

Realistic pricing

According to Oregon rules where are trust fund records allowed to be kept?

Records may be kept at an off-site location under certain conditions Record can be kept at the brokerage main office Records can be kept at branch offices when the related transaction originated there

David surrendered his license what must he do to reactivate?

Start the licensing process over by completing the required coursework, taking the exam, and applying for the license

If the secondary mortgage market didn't exist, what could happen to the primary mortgage market?

The primary mortgage market would have fewer funds available for lending

Vicarious Liability

The principal broker is responsible for the actions of supervised licensees and can be held liable for those actions or omissions as a result

Common mortgage scams

The property is purchased, falsely appraised at a higher value, and then quickly sold- illegal property flipping The borrowers identity is concealed behind someone else's name and credit history- straw buyers An appraiser secretly works with a borrower and provides a misleading appraisal report to the lender- inflated appraisals

Under RESPA, a rebate of a licensee's commission may be offered to a transaction party, provided which of the following is true?

The rebate is not required for the referral of business

Ethical guidance true false

The right thing is always ethical? True As a licensee the golden rule can help you behave ethically no matter the situation? True The easiest course of action isnt always the most ethical? True Personal ethics have no impact in professional behavior? False

What additional course of action does the Lanham act provide you?

The right to sue your competitor for making deceptive claims

Casey signed a contract form offering a purchase price of $309,000 on Karen's home, and gave his agent a $5,000 earnest money deposit. Karen's out of town, though, and her agent can't reach her. At this point what does Casey have?

an offer

Tabby's real estate license is only good for one gear what type of license does she hold

Limited

ECOA, HMDA, and CRA we're all passed in the 70s as was RESPA. They share a common purpose of protecting consumers but what differentiates them?

Lists protected classes against whom lenders may not discriminate when making credit unavailable- ECOA Allows review of lending data to evaluate where mortgages are given and where they are not- HMDA Requires lenders to invest in development and rehabilitation of the communities they serve- CRA

When a licensee wins an appeal the court may award

Litigation expenses

In addition to reducing settlement costs, RESPA helps protect the consumer by requiring clarity around settlement fees. The borrower in a real estate transaction must receive certain disclosures. Which two are the disclosures related to RESPA

Loan estimate Closing disclosure

What attracts borrowers to adjustable rate mortgages?

Lower initial interest rate

Appropriate ways to market a listing?

MLS Social media Craigslist Direct mail For sale sign Open houses

Seller accepts, requirements

Make sure any earnest money is made payable to the seller Verify the buyers agent noted the form of payment on the earnest money receipt Keep written records noting the day and time offers and counter offers were submitted

Website must dos

Make sure principal brokers business name is on website first page Use own name and license type on first page Include state where licensed

Steps to initiate complaint

Make the complaint in writing Sign the complaint Submit the complaint to the Oregon real estate agency Supply documentation to support the complaint

Complaint process overview

Manager reviews complaint to determine whether or not to proceed with an investigation 2. The assigned investigator investigates and prepares a report for the manager 3 the manager determines if administrative action should be taken 4 the manager either proceeds with admin's action or Larry appeals the action 5 agency representatives meet for a settlement conference 6. Not pleased with conference so an administrative law judge hears the contested case

What does a CMA determine?

Market price range

Documents of agreement, requirements specific to review responsibilities

May review documents using this method- either electronic or hard copy review Must make an electronic record of the review showing name and date of the review - electronic review Must record initials and review date in writing at time of review- hard copy review Review must be completed within 7 baking days- either electronic or hard copy Must be dated- either electronic or hard copy Must identify the reviewer- either electronic or hard copy

Principal broker and licensee responsibilities

Mentor associated licensees- principal broker Develop business- licensee Account for actions- both Provide proper training- principal broker Review and approve transactional documents Document office policies in the PPM- principal broker

How often should accounting records for trust funds be reconciled?

Monthly

You're a principal broker in Oregon. That means you must reconcile your trust fund accounts

Monthly

Let's assume a mortgage is being used. Which part receives the following items?

Mortgage- lender Promissory note- Lender

Oregon has strict regulations for how real estate licensees and companies handle trust funds. What are some requirements for Oregon trust accounts?

Must be identified as a trust account Can be interest bearing or non interest bearing

Anti trust complaints process

Names of companies, individuals, or organizations involved How the complainant believes the antitrust law was violated Examples of the conduct Product or service affected including where the product is sold or services is provided Major competitors that sell the product Complainants role in the situation Who is harmed by the alleged violations and how Event details gathered from complainant A record of info is created Preliminary review is conducted The complainant is referred to legal staff for additional research Formal investigation may be conducted

Negligence

Negligent misrepresentation can occur when someone makes a statement that they should've know was false. Misrepresentation is fraud when it's intentional misrepresentation, this can include omission of a material fact. If the law imposes a duty to disclose a known fact and someone intentionally remains silent it's passive fraud which is intentional non disclosure. Active fraud is intentional misstatement of a material fact

An antitrust complaint has been received by the U.S department of justice. After review it's decided that a formal investigation will be conducted when must the complainant be notified of the investigation?

Never

The federal trade commission act includes rules to encourage what two kinds of advertising?

No -deceptive Fair

In Oregon what's the maximum fine that the commission may impose for a first occurrence of a single violation?

$500

What's the maximum amount of time a document like a listing agreement can remain in process before it's fully executed, reviewed, and tucked safely in a transaction file?

10 baking day, 3 for the broker and 7 for the principal broker

How long do you have to notify the state of opening an account for earnest money

10 business days

After setting license to inactive how long do you have before you have to pay reactivation fees and complete the application process?

30 days After 30 days a licensee must complete CE, the reactivation application and pay the $150 reactivation fee. If it's more than 2 years there's a special exam to take in addition to CE and fees

What percentage of voting stock must a parent brokerage hold in a subsidiary?

51%

Which of the following best describes a mortgage broker?

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

What is a mortgage backed security?

A pool of mortgages sold to investors

Which of the following statements is true about promissory notes?

A promissory note is a negotiable instrument and can be transferred to a secondary holder who has the right to enforce the notes terms

Caroline's monthly mortgage payment includes principal, interest, taxes, and insurance. She has a 30 yr mortgage at a consistent 3.75% interest

A budget mortgage

Financial record requirements

A copy of any check received A checks payment purpose A dated, acknowledged receipt for any check returned to the offerer A file reference assigned to a funds transaction

Counter offer true false

A counter offer is an amendment- false Counter offers are live until they are either accepted, rejected, or withdrawn- true If a party agrees to most of a counter offer except a minor item you can Cross out the item they don't want and have both sides initial it- false

Mortgage definition

A legally binding document that is a lien against a property

What is a subagent?

A licensee who cooperated with a broker from another firm to help sell a property

Which of the following is not considered an ad under the Oregon administrative rules?

A licensees personal social media page without business affiliation

How should the business be structured according to the real estate agency?

A parent business with 51% investment in a subsidiary or an affiliate business

Ray and Alyssa's mortgage calls for regular PITI payments for three years and then a lump sum payment at the end of the three year period. What kind of mortgage is this?

A partially amortized (balloon) mortgage

What is the multiple listing service MLS?

A shared database of real estate information

Elaina and Allen just purchased a home using a deed of trust. Which of the following is most likely true about their home loan?

A trustee will hold title until the loan is paid.

Features of an ARM true false

ARM interest rates can fluctuate with the national economy? True Lenders may adjust the rates any time interest rates rise? False Often an ARM will have a below-market rate for the loans first year? True

The legal concept of parents patriae gives which state position the authors to sue on behalf of its citizens

Attorney general

Seller agent duty. Which actions does the Oregon code require you to take?

Abide by listing agreement terms as seller agent Stay true to affirmative duties for the seller when listing other properties Seek a price and terms satisfactory to the client Advise your client to seek expert advice when the matter is outside your scope of practice

Depositing trust funds into a trust account provides protection for those trust funds should the broker or licensee be faced with

Accidents, death, or litigation

If the Oregon real estate agency determines that complaint has merit based on investigative findings what's the next step in the process

Administrative action issued

Who presided over formal hearings in Oregon?

Administrative law judge

Brokerage firm code of ethics true false

Adopt a code of ethics offered by the industry- true Build on an existing code of ethics available in the industry- true Create its own seat of ethical guidelines- true

When a compliance review by the Oregon real estate agency prompts an investigation what's the next step after the investigation?

Agency report review

3 competing real estate brokerage all charge the same commission. What's needed to make this an anti trust violation?

Agreement

Sales contract names

Agreement- Agreement of sale Sales agreements Residential sales agreement Agreement to purchase Purchase agreement Real estate purchase agreement Earnest money agreement Contract- Sales contract Purchase contract Contract of purchase Contract of sale Contract of purchase and sale Residential sales contract Offer- Offer to purchase Purchase offer

When the complaint involves monetary damages what will the Oregon real estate agency do

Alert the complainant of the option to hire an attorney to file in court

Which counter offer should be retained in the transaction file?

All counter offers to

What requirements must a negotiable instrument meet to be transferable?

All negotiable instruments are payable on demand? False If interest is charged for the money owed, the rate of interest, which may be fixed or variable must appear either on the instrument itself, or it must be referenced in an associated document? True The negotiable instrument may not contain any conditions for payment, it must be unconditional? True Negotiable instruments may be handwritten, typed, or preprinted. A negotiable instrument is payable on demand if no definite time is stated. The negotiable instrument may not contain any conditions for payment; it must be unconditional. Signature may be printed or stamped

Alycia represents Mr. and Mrs. Peters. The three of them just met with Eddie and Eddie signed an agency disclosure form. Which of the following is true about this situation?

Alycia can now legally facilitate a real estate transaction between these two parties

Which of the following is a true statement about FHA financing?

An FHA loan is usually more attractive to borrowers who have lower credit scores and down payments.

Trigger terms

An ad can show apr without requiring Al of the other credit terms to be disclosed, that's because the apr by itself gives consumers a simple way to compare loans but if certain other trigger terms are included in the ad this would require full disclosure of all terms These trigger terms are Down payment Payment amount Number of payments Interest rate These trigger terms can only apply if the ad states specific numbers if it's only general like "low down payment" or "easy financing" no additional disclosure is required Must also require consumers with disclosure statements within 3 days

Types of agreement

An agreement to restrain can be either horizontal or vertical which is which? Agreement between direct competitors at the same level- horizontal Agreement between related but non competing entities at different levels- vertical

A BPO is an example of

An informal estimate of market value

What's an option contract?

An offer to purchase a specific piece of real estate but without the obligation to buy it

What's a discount point?

An upfront charge to make up for the difference between the rate the borrower is receiving and the rate the lender normally requires

In what way or ways do condiments compensate brokers for their services?

As a flat fee, fee for service, and or percentage of sale

After all BPO comps have been adjusted, how is the value usually presented to the lender?

As a range of values

Types of lenders

Associations that accept savings deposits and offer loans? Savings and loan associations Member based cooperatives that provide credit for loans? Credit unions Companies that finance Moro loans but specialize in insurance products? Insurance companies

Non-trust funds vs other funds

Automobile title given as purchase deposit- other funds Cash given as a purchase deposit- other funds Deposits from broker owned real estate- non-trust funds Real estate commissions- non-trust funds Personal check given as purchase deposit- other funds General operating funds- non-trust funds Non-trust funds aren't used for the purpose of securing a real estate purchase Any funds accepted from a client are always considered to be trust funds and must be treated as such- False

Clark works for Acme Bank and asks for your assistance. He wants you to look at a property that's about to go into foreclosure and provide him with a report on its current marketability and an approximate market value. What's Clark most likely asking you to provide?

BPO

What will meet the education requirements for Janie to move up to principal broker per the agency waiver form?

Bachelors degree in real estate finance and development

Three sets of records make up the basic requirements for record keeping associated with trust fund bank accounts

Bank statement, check register or journal, and the total of ledger balances

U.s. vs consolidated mls case claims

CMLS prohibited members from offering home sellers the opportunity to avoid paying a brokers commission if the sellers located a buyer in their own CMLS required brokers to perform a prescribed set of services CMLS gave Columbia real estate brokers the ability to exclude rivals from outside Columbia who might offer local consumers innovative brokerage options that would save them money or provide services that better matched their needs

Conventional vs government loans

Can be obtained for 0% down payment? VA May require PMI for down payments less than 20-25%? Conventional Requires mortgage insurance premium (MP)? FHA

U.s vs nar

Case outcome The doj argued that the NARS policy restrained competition The NARs policy denied brokers using new technology the same benefits of MLS membership that were available to their competitor brokers

Trust funds vs other funds

Cash given as a purchase deposit- trust funds Deposits from broker owned real estate- other funds Personal check given as a purchase deposit- trust funds Real estate commissions- other funds Automobile title given as a purchase deposit- trust funds General operating funds- other funds

An administrative law judge will hear cases for

Cease and desist orders issued by the agency and complaints of license violations

The agency may impose a number of penalties for license law violations. Which may the agency impose?

Civil penalty of $500 for unlicensed activity violation Temporary license suspension or permanent revocation Reprimand Criminal penalties are outside the agency's scope

Mia has been an Oregon property manager working solo but the time has come for a change of professional scenery. She wants to operate independently as a principal broker. What's the first things she must do after completing exam, paying fees?

Close the property management business that's registered with the agency

In Oregon a promissory note

Comes due when the seller accepts the offer or another agreed upon time

Determining compensation true false

Commission rates are set by the industry- false Brokerages may suggest their licensees use a specific commission rate- true Agency representation agreements outline commission details, including the amount, when the compensation has been earned and even how it may be split with cooperating licensees- true If licensees act as transaction brokers they won't receive compensation- false Often compensation from a transaction is split with cooperating licensees and the licensees brokerages- true

5 things brokerages can do to integrate the code of ethics

Commit it to writing Spread the word Walk the walk Enforce it Reinforce it

Which federal lending act was introduced to combat lending discrimination in low and moderate income neighborhoods?

Community Reinvestment Act

CMA

Competitive Market Analysis is an opinion of a property's market price range

After viewing an investigation report one of several things may happen. Which of the following options lists the three possible resolutions to an investigation?

Complaint is dropped, complaint is dropped and education letter is sent, agency imposes administrative action

Marcy voluntarily registered her license as inactive while she was caring for her elderly parents she has been inactive just shy of two years but previously held her license for three years. What education courses does the need to reactivate her license?

Complete the law and rule required course and 27 hours of continuing education

In addition to setting up an account t for earnest money what else must principal brokers do to satisfy Oregon law?

Complete the notice of clients trust account and authorization to examine form Have a bank representative sign the notice of clients trust account and authorization to examine form Upload the completed notice of clients trust account and authorization to examine form to his eLicence account

Prince George true false

Consent decree is an alternative to guilty or innocent verdict- true In the consent decree the prince georges county board of realtors agreed to stop price fixing or suggesting commissions rates, punishing members for not following the suggested commission rates, publishing schedules of commission rates, and boycotting members who didn't follow the commission rate suggestions- true

FTC may attempt to obtain voluntary compliance by the violator to stop their antitrust activities how does the FTC obtain this?

Consent order

Anti trust leads

Consumer complaint Business complaint Pre merger notification filing News articles Congressional inquiries

Compensation facts

Consumers compensate brokers for their services generally in the form of a percentage of the sales price of the property involved in the transaction Brokerage compensation options include a flat fee, fee for service, or percentage of sale The amount a licensee is compensated is dependent upon the agreement with the broker Licensees are only permitted to receive compensation from their principal broker

Conventional Losns true false

Conventional loans must conform to Fannie Mae and Freddie Mac guidelines? False Originators of conventional loans often package and sell groups of loans on the secondary mortgage market? True Conventional loans can vary in length and terms? True Originators of conventional loans usually don't service the loans once they've been sold? True

Online security terms

Copying a website for the purpose of obtaining money or data- cloning A small text file that remembers your preferences or tracks your browsing activity- cookies Turns information into indecipherable code-encryption Software that secretly collects and sends information about your computer to others over the internet- spyware Misleads people into divulging confidential info by making fraudulent requests for information-phishing Hardwares/software that controls network internet access

Who is responsible for notifying the commission of a license revocation sanction?

Court clerk

Which judge may hear an antitrust case

Court of appeals judge Administrative law Supreme Court

State usury laws are typically not applicable to what type of lending?

Credit cards, retail installment contracts, and consumer leases are typically exempt from usury laws.

The agency takes a progressive discipline approach to license violations what is the intent of this approach?

Curb repeated violations, reinforce licensee expectations, and increase licensee knowledge of applicable laws and rules

Which 3 are involved in the enforcement of anti trust law?

Federal trade commission Department of justice State attorney general

What will the administrative law judges proposed order contain?

Findings of fact, legal basis for resolution, and recommended actions to take

What needs to be retained related to earnest money deposits

Date funds were received Funds final disposition Payors name Oregon requires agencies to retain files for 6 years

Truth in advertising

Deceptive ads- Likely to mislead reasonable consumers Material Unfair ads- Causes or is likely to cause substantial, unavoidable consumer injury Health/safety and evaluation issues- Health/safety Difficult for consumer to evaluate

The Oregon real estate agency may refuse an application for an alternative name if the name is

Deceptively similar to another licensees name

After consulting his mentor and the brokerages code of ethics Enrique is ready to plan how to implement his next step this planning step is

Deciding what action to take

If a deed of trust is being used who receives the. Following items?

Deed of trust? Trustee Promissory note? Lender

Cases

Department of justice- criminal Federal trade commission- civil

Conversion/Commingling

Depositing personal or business funds with trust funds in a single account- commingling The use of escrow funds for personal or business use- conversion

Purpose of loan estimate?

Designed to provide disclosures that will be helpful to consumers in understanding the key features, costs, and risks of the mortgage loan for which they are applying - provided 3 Business Days after receipt of loan application

DEEDS stands for:

Determine, evaluate, explore, decide, state

If a complaint with the citizens complaint center raises concern that antitrust law may have been violated to where will the complaint be referred?

Division legal staff

Dos and don'ts

Do use existing forms an attorney has reviewed Don't create your own real estate forms Don't interpret legal consequences of specific actions Do explain clauses to your clients Don't charge a fee for preparing transaction documents Do know your state's definition of unauthorized practice law Don't freely make changes to existing forms by striking provisions and writing new provisions Do encourage clients to have an attorney draft non standard forms

When RESPA applies

Donna is purchasing a home using all cash from her lottery winnings? Doesn't apply Craig is applying for a federally related loan from his banks to buy a large ranch house on 5 acres? Applies Smitty and Kate are financing a 40 acre lot upon which they hope one day to build their dream home? Doesn't apply (RESPA doesn't apply to transactions for land tracts of 25 or more acres) A fixer upper, borrowed enough on an FHA loan to pay for the property and the renovation costs? Applies Kendra is buying an auto repair business including the building and the land? Doesn't apply Chance and Maury are purchasing a farm house in 100 acres? Didn't apply

Once compensation for a transaction has been earned when is it usually paid?

Either at closing or immediately upon client default

Supervisory requirements for principal brokers

Ensure compliance with office policies and procedures Train licensed and unlicensed employees Oversee all activity at the brokerage and applicable branch offices Review legal agreements in a transaction within 7 banking days

Principal brokers responsibilities related to disclosures

Ensure that licensee are properly trained in disclosure requirements Retain disclosures for the required time period Ensure disclosure accuracy Ensure that disclosures are delivered in a timely manner

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?

Equal Credit Opportunity Act

Home Equity Line of Credit (HELOC) is based on the homeowners available?

Equity (A HELOC is based on available equity, and is set up as a line of credit that homeowner's can use as an open-end account.)

The Oregon real estate agency investigative process addresses complaints against certain real estate professionals. What type is covered by this process?

Escrow agents Brokers Individuals performing brokerage services without a license Property managers

Whats the purpose of the mortgage contingency provision?

Establish if the sale of the property depends on the buyer obtaining mortgage financing

You have an offer! Which statements apply in Oregon?

Every written offer and counter offer must be delivered promptly to sellers All terms and conditions must be specified and included You must provide copies of the signed offer or counter offer to all parties within 3 banking days of reaching a written agreement You must provide legible copies of all offers and counter offers

What's the issue?

Exaggerating- puffing Failing in the duty of care- negligence Making a statement the licensee should have known was false- negligent misrepresentation Intentional no disclosure of a known face-passive fraud Intentional misstatement of a material fact- active fraud

Enrique is in the midst of handling an ethical dilemma. He's checking his brokerage's code of ethics to see what it says about the situation and has also looped in his mentor. What step is Enrique currently completing?

Explore ethical choices.

Trust funds placed in trust accounts are insured by the

FDIC

Lauren obtained a loan that's insured and that only required a down payment of 3.5%. Which of these is most likely the type of loan Lauren has?

FHA

Lydia put the minimum 3.5% down on her $210,000 home. She'll have to pay an MIP. What type of loan does Lydia have?

FHA

What's the most common indicator of illegal property flipping?

Falsely inflated appraisal

Secondary Mortgage Market player

Fannie Mae (federal national mortgage association or FNMA) Freddie Mac (federal home loan mortgage corporation or FHLMC) Farmer Mac(federal agricultural mortgage corporation) Ginnie Mae (government national mortgage association or GNMA) Lending institutions that buy loans from other lenders

If Acme Bank, a primary lender, wants to sell its loans on the secondary market, it would be easier for it to do so if its loans meet ______.

Fannie Mae and Freddie Mac Guidelines

At what level does antitrust oversight exist?

Federal and state

Fred is an agricultural lender who helps the ranchers and farmers in his community by providing credit for purchasing land, making repairs to their buildings, and improving their agricultural property. He's able to do this in part because of the ______ offered by the USDA Farm Service Agency.

Guaranteed loans

What does illegal per se mean?

Guilt is established on the face of the circumstances

Rule of reason vs Per se

Guilt is established on the face of the circumstances- Per Se Guilt depends upon a review of the circumstances- rule of reason Price fixing and group boycotts are common real estate examples of this type of guilt- Per se Defendants aren't offered the opportunity to justify their actions- Per se One circumstance reviewed with rule of reason is whether unread restraint of trade occurred

Basic guidelines about offers

Handle it all with a sense of urgency appropriate to how exciting and crucial offers are to the process Take note of everything Give everybody copies of everything Once an offer or counter offer has been accepted licensees have three banking days to deliver a signed copy to both the buyer and the seller

An investigator must make several considerations during a complaint investigation such as

Harm as a result of action Malicious conduct Agency's order for similar violations Formal real estate education Intentionally took action

Zach hurried to scan an offer and submit it to sellers agent what did Zach violate?

He should have printed a copy of the offer for buyer Jimmy

Which five areas of the economy does the FTC tend to focus on?

Healthcare Professional services Food Energy High tech industry

Due process rights?

Hiring an attorney for legal representation Presenting witnesses Presenting evidence to support the defense

Reasonableness considers whether the restraint was

Horizontal or vertical

License Renewal Period

How long is the renewal cycle in Oregon? Two years

In a mortgage, the property is used as collateral for the loan. What's the term for the process of pledging something as collateral?

Hypothecation

Financing features true false

I'm a reverse mortgage the lender makes payments to the homeowners and slowly gains ownership? True Balloon loans can be paid as interest only or partially amortized until the final balloon payment is due? True Bridge loans which are also called swing loans are typically for a long term

Identify whether or not the following statements could be considered discriminatory based on fair housing laws

Ideal for working professionals- discriminatory Awesome mother in law suite attached- not discriminatory Walk to subway station, shopping, and dining - not discriminatory Integrated community- discriminatory Close to Rose hill catholic school- discriminatory (ads may not mention nearby organizations specific to a particular race, nationality, or religion) Ad posted entirely in Spanish- discriminatory (ads may not be posted only in a language other than English)

What's the purpose of the sales contract?

Identify the terms and conditions under which a seller will transfer a property to the buyer

Why is mrs. Murphy allowed to discriminate when Carly is not?

If Murphy had 5 units instead of 4 she wouldn't be exempt, this is a very limited exemption and requires the owner to live on the property that's occupied by no more than 4 families

Under what circumstance can a brokerage be held liable for not supervising a licensee

If a lawsuit is bright against the brokerages licensee due to misconduct

Reasonableness

If examination of facts determines restraint of trade was reasonable than the act was legal, it the restraint was unreasonable then the act was illegal. What's considered when determining reasonableness? Competitive harm Redeeming virtues Availability of less restrictive alternatives Intention of parties Involved agreement

Under what circumstances may you withhold a listing from the MLS?

If the seller gives written permission

Cease and desist true false

If you receive a cease and desist order you must stop running the deceptive ad within 90 days- false If you receive a cease and desist order you may be required to provide substantiation for any claims in future ads- true The financial penalty for a cease and desist order includes fines up to $43,792 per ad, per day if you violate the law in the future- true

Federal fair housing laws

In the 1860s the U.S Supreme Court granted all citizens the right to own property The civil rights act in the 1860s was a result of the civil war (race and color) The 1960s civil rights movement was largely responsible for the federal fair housing act of 1968 (race, religion, and national origin) Feminism was in full swing in the 1970s when sex was added via the housing and community development act Changing family structures, single women in the workforce and additional opportunities for people with disabilities led to further changes in 1988, requiring amendments to the original fair housing act Outdated houses with staircases and small bathrooms proved to be a hinderance for wheelchairs and rights for people with disabilities were strengthened in 1990. After everything was implemented exemptions were required to allow seniors specific housing

Which of the following license statuses can be reactivated using a reactivation process rather than the initial licensing process?

Inactive You can't reactivate for suspended, revoked or surrendered licenses. You have to start over

What party is responsible to look further into the complaint and prepare a report of the findings?

Investigator

Mortgage or deed of trust

Involves two parties, the borrower and the lender? Mortgage Involved three parties, the borrower, lender, and trustee? Deed of trust Backed by a promissory note? Both

ethical dilemma question

Is this a conflict of interest? Does this conflict with my values? Is there a conflict with my duties as an agent?

Why is it important for the borrower to assure the lender the title is clear of defects?

It provides a good and marketable title for the lender to sell upon foreclosure

Which of the following best represents the value of a cma

It's a representation of the current market that helps identify a listing price for the subject property

What distinguishes a depositable trust item from a depositable non trust item?

It's held on behalf of another

Option contacts true false

It's illegal to attach an option contract to a lease- false An option contract attached to a lease gives the lessee the option to purchase the property at some point in the future- true An option contract that's attached to a lease is known as a lease option or a lease with an option to buy/ true With an option attached to a lease a landlord can increase the option amount if a better offer Comes in- false

Fax facts

It's illegal to send commercial faxes unless you have the recipients permission or an established relationship with the recipient

What federal act makes it illegal to send unsolicited commercial solicitation via fax?

Junk fax prevention act of 2005

Which act gives companies the right to sue a competitor for making deceptive ad claims?

Lanham Act

Mortgage banker vs broker

Lends money- mortgage banker Works with multiple lenders to search for and negotiate the best deal- mortgage broker Doesn't lend the money itself- mortgage broker

Under what circumstances does an ALJ hear a complaint in a contested hearing?

Licensee and agency cannot agree to the terms of administrative action for a violation

License status definitions

Licensee can't practice real estate but maintains the rights to the license- inactive License is associated with the principal brokers registered business name and can practice real estate- active Licensee voluntarily decides to no longer be licensed and loses all rights to the license- surrendered Licensee can't practice real estate or renew the license- suspended License not renewed within one year of expiration, licensee loses all rights to the license- lapsed Licensee cannot practice real estate but still has the opportunity to renew for 12 months following expiration month- Expired

What will be taken into consideration when determining an administrative order in addition to licensee work volume, time license held, intentional harmful actions, and agency disciplinary actions in a similar cases?

Licensee cooperation, severity of violation, repeat offenses, and work experience

License renewal date is determined using?

Licensee date of birth and licensee issue date

Broker deadlines?

Licensees have three banking days to get documents of agreements to their principal broker Real estate broker submits document to principal broker- within 3 banking days Signed copies of written acceptance of an offer are delivered to both buyer and seller- within 3 banking days Licensee delivers an offer or counter offer- promptly Principal broker reviews documents- within 7 banking days Other than earnest money with a specific buyer hold request, the real estate broker submits funds received to the principal broker- within 3 banking days

Licensee investigation responsibilities

Licensees must honestly answer all questions and inquiries Licensees must provide all pertinent records to the agency The agency may give licensees the chance to remedy their actions

Because he hates clutter, broker Dante keeps his client transaction records electronically. He has financial records, correspondence about his in process transactions, and anything that requires a signature. Is Dante in compliance with Oregon administrative rules?

No he needs to retain all records generated during a real estate transaction

Robin has great credit and was able to secure a loan for her ocean-side dream home. Her 30-year, fixed-rate loan is for an amount that's above conventional loan limits. What type of loan does Robin have?

Non-conforming loan

What else are you required to keep current on your rbn?

Notification of business closing

At what point does an option contract become binding for both parties?

Once the optionee exercises the option

wrap around loan

One where the buyer's new loan wraps around the seller's existing financin

In Oregon licensing exam results are valid for?

One year

Meredith's principal broker application has been approved. Which statement is FALSE about the routes she can take to operate as a principal broker?

Open any number of independent RBNs with the real estate agency

Once a new business has been registered with the agency what important part of business operations can now be done

Open client trust accounts

Electronic record storage

Oregon and 47 other states have enacted the uniform electronic transactions act (UETA) giving credence to retaining records in electronic form. And with the ESIGN act of 2000 eliminating concerns that electronic signature wouldn't bear the same weight as hard copy signatures in a transaction

Reciprocal license agreements

Oregon has reciprocal license agreements with these jurisdictions Alabama Alberta, Canada Georgia Nebraska South Dakota

Consumers may file complaints against Oregon brokers with which organization?

Oregon real estate agency

If the ___ determines that no licensing violation has occurred then a complaint against an Oregon licensee may be dropped

Oregon real estate agency

Which one of these is the method by which the secondary mortgage market makes money?

Package and sell loans ( to investors)

Paying off mortgage sooner

Pay half the mortgage payment every two weeks instead of once per month- bi-weekly plan Divide the mortgage amount by 12 and add this additional amount to the monthly payment plan- 1/12 plan Put a portion of any bonuses, tax returns, Or other extra money towards the mortgage- lump sum plan When another bill is paid off add that amount to the mortgage payment- snowball

Chevy is an optionee. What's his sole responsibility?

Pay the option fee.

What is predatory lending?

Predatory lenders take advantage of the consumer by doing one or more of the following Encouraging debt Making loans to unqualified borrowers (a consumer who can't really afford the loan) Flipping loans (refinancing over and over which allows the lender to charge fees each time) Not disclosing the true nature of the loan obligation Including toxic loan features (terms exceeding 30 years, negative amortization, usurious interest rates) Predatory lending can often be found in the subprime loan market where borrowers who can't qualify for a conventional loan are east to take advantage of. The Dodd Frank act enacted in 2010 banned some risky loan practices including balloon payments on high cost loans, fees or penalties for modifying a loan or paying it off early and the act also requires housing counseling for certain loans. Dodd Frank helps minimize predatory lending

CMA and BPO difference's

Prepared for homeowners to sell their property- CMA Prepared for a lender in a foreclosure or short sale situation- BPO Commonly uses a drive by approach to determine marketability and price- BPO Commonly entails a tour by a licensee, a search on the MLS, and a comparison of similar properties- CMA Illegal for licensees to prepare in some states- BPO Should provide a more detailed and accurate price- CMA

What is the chief thing that a judge is responsible for at the conclusion of a formal hearing?

Preparing a report for agency determination

A promissory note includes

Principal Interest rate Loan length Prepayment penalties Discount points

Promissory and Usury Facts

Private lenders aren't subject to usury laws, use caution when working with them Usury laws vary by states

The agency representation agreement outlines when compensation is earned. When the representation agreement doesn't make the payment of compensation a matter of contractual obligation which of these terms describes what is likely to determine who has earned compensation?

Procuring cause

Which of the following is a promise from the borrower to repay a certain sum of money to another party under specified terms?

Promissory note

Aside from price, which of the following is a legitimate reason to counter an offer?

The closing date is unacceptable to one party.

According to Oregon administrative rules which is true for stored records?

Records may be stored at the principal brokers main office, at the branch office where the record originated or at an off site location if specific OAR requirements are met Records must at all times be open the real estate commissioner for inspection Principal brokers must maintain at their office, a means of viewing copies of the records such as an electronic database regardless of where the true original copies of the records reside Records must be kept for 6 years

What the federal trade commission do if it's working on a case that involves an allegation of a criminal antitrust violation?

Refer it to the u.s department of justice

What does the agency require Bob do to employ real estate professionals at his brokerage?

Register licensees under his registered business name as affiliated licensees

Which of the following must brokers provide when they submit their license renewal applications?

Renewal fee Proof of completed continuing education Licensees must submit CE under elicense and pay the renewal fee

Bette has been issued a cease and desist for acting as a broker without having an Oregon real estate license. What should she do after receiving the order once she obeys the order?

Request a hearing in writing

Mortgage clause description

Requires borrower to repay the loan when transferring ownership- Due on scale Permits the lender to make the loan immediately due and oayabale if a borrower defaults- acceleration Stipulates that the lender may be owed additional interest if the borrower pays the loan off prior to the full loan period- pre payment penalty

Oregon's advertising rules

Sellers must give permission for licensees to their property for sale, lease, etc. ads must also comply with certain rules and must be Identifiable as a licensees advertising Truthful not deceptive or misleading Clear as to the licensees license status Honest about the licensees qualifications or expertise Ads must prominently display the principal brokers, sale practitioners, or property managers licensed or business name. No ad may guarantee any future profits Ads that include the licensees name must either use the name that appears on the real estate license or use a common nickname along with last name. Licensees who desire to form a team or group may do so individually or with other licensees as long as they work with the same principal broker. They may advertise with a group or team name if The ad itself is in full compliance with the rules The groups name isn't someone else's trade name and it isn't deceptively similar to a name under which another person legally conducts business If unlicensed people are part of the team and named in the ad the ad must identify which are licensed and which are not Don't place marketing materials in mail boxes, it's illegal and results in penalties, fines, and loss of any bulk mail permit the firm might have Telephone consumer protection act prohibits calls before 8am or after 9pm Anonymous calls Calls to private rooms in hospitals or retirement homes Calls to cellular devices or paging services that may incur a charge to the consumer

Service animals

Service animals assisting any disabled individual must be allowed in any housing or residential situations Landlords can't limit service animals, they must be allowed for disabilities of all kind Service animals aren't considered pets they're working an aimless and an extension of the disabled person Landlords may not discriminate against individuals who use service animals and can't require pet deposits They can require that tenant pay for cleaning

Per the Real Estate Settlement Procedures Act (RESPA), licensees may not receive or give referral fees or finder fees (or anything of value) from/to whom?

Settlement service providers

Anti trust acts

Sherman Act- (1890)prohibits monopolies and actions that cause an unreasonable restraint of trade Clayton Act- (1914)prohibits mergers that create monopolies or reduce competition FTC act- (1914)created an agency to investigate and stop unfair competitive practices

Oregon law requires a cma to include specific information like?

Statement of purpose and intent Description of the property being valued Evidence to support the value Limiting conditions A disclosure of any personal interest the licensee has the in property if applicable A disclaimer that the cma isn't an appraisal

Which requires that contracts for the sale Of real estate be in writing?

Statute of frauds

What is TRID?

TILA-RESPA Integrated Disclosures

If you disagree with the agency's decision regarding a violation, what can you do to look for a different outcome?

Take the case to the Oregon court of appeals

Tasks an investigator will likely complete during investigation

Talk to witnesses Review files submitted by complainant Read the original complaint form Write a report that will go to the licensee and the agency

What stop-gap action may the court take to prevent a broker from taking further action during the hearing process?

Temporary injunction

Which terms and conditions can you expect to find in your independent contractor agreement (aka employee agreement)

Terms that state how commissions will be divided An agreement that you will maintain your license in good standing An agreement that you will adhere to state statutes and agency rules An agreement that your principal broker will share unassigned listings

Which statements most accurately represents existing anti trust legislation?

The Clayton act supports the Sherman antitrusts acts purpose of prohibiting monopolies by prohibiting mergers or acquisitions that would create a monopoly

A "homes for sale" magazine contains the following ad: "One-bedroom condo. Corner unit with beautiful ocean views. Financing available, 5.25% APR." Which of these statements is true?

The ad is in compliance with TILA because providing the APR doesn't trigger the required disclosure of all credit terms.

Compliance review process

The agency conducts an investigation to gather evidence The investigator submits an investigation report to agency manager The agency decides to bring a court action against the licensee in question The court conducts a hearing The court issued a decision

Investigation process fact or fiction

The agency is required to either conduct an investor refer complaints to the courts- fiction The agency has the power to issue a cease and desist order- fact It may be necessary to call witnesses to complete the investigation- fact

Other consequences true/false

The agency takes the opportunity to educate licensees after a violation has occurred in case they don't understand the full scope of their responsibilities- True Licensees who are found guilty of a violation may have their license revoked- True Licensees may face prison time for disciplinary actions imposed by the agency- false All disciplinary actions come with civil penalties- false

Promissory note terms

The amount charged for the use of the money- interest Type of prepaid interest that borrowers pay to lower a loans interest rate- discount point Fee that's charged when a borrower pays a loan off early- prepayment penalty

Three provisions typically included in sales contracts

The amount of the purchase offer The buyers financing contigincies The earnest money deposit amount

Which one of these examples creates vicarious liability for the brokerage?

The brokerages licensee neglects to provide required disclosures to a client

U.S vs NARB

The business of real estate isn't considered a trade in the phrase restraint of trade? False Both interstate and intrastate business are covered by the act- true Price fixing applies to sale of services as well as goods- true Setting schedules of fixed or mandatory real estate commissions or fees established by real estate boards violates the Sherman act- true

TILA

The consumer credit protection act (CCPA) Created in 1968 includes the Truth In Lending Act, the intent of the legislation was to safeguard the consumer in the use of credit by requiring full disclosure of the terms and conditions in any offers of credit TILA requires lenders to make disclosures that allow consumers to compare the costs of making a purchase using credit from different lenders and to compare the cost of using credit with the cost of using cash Mortgage lenders must follow TILA disclosure requirements, the statute is implemented through the rules codified in reg z which applies to all advertising that promotes credit

Inspection contingency will document?

The date by which all inspection issues must be addressed

E files

The e file should reflect the time original record was created The e file system has a clear and dependable indexing system The electronic storage device she uses ensures records can't be modified once entered Must back up e files at least once per month Must not be alterable once written Electronic back up data must be kept for at least 60 days

Who's responsible for disbursing escrow funds?

The escrow agent. In most states the escrow agents is a representative of the title company, in some states a broker or attorney may serve as an escrow agent

Mortgage Fraud

The fbi defines mortgage fraud as "a material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase, or insure a loan" The most common schemes are Illegal property flipping Inflated appraisals Silent second Nominee loans/straw buyers Equity skimming False identity

Trust accounts

The fdic insures trust accounts up to $250,000

Mortgage clauses

The first section of the mortgage identifies the parties and dates the agreement. It also reference the note that may either be part of the instrument or a separate instrument Next a legal description is given of the property following that is borrowers assurance to the lender that there are no known or undisclosed encumbrances on the title Next there are covenants between the borrower and the lender. The borrowers also warrants that no false claims have been made on the loan application and agrees that the lender may treat any false claims as a default on the loan The lender promises to keep escrow funds and use the escrow funds to pay the escrow items There is a due on sale clause also called an alienation clause which requires the borrower to repay the loan on the property when selling or transferring ownership of the property There is also an acceleration clause which gives the lender the right to make all monies owed immediately due and payable in the event of borrower default Some mortgages include a prepayment penalty although that's becoming more rare. This clause puts the borrower on notice that if the loan is paid off before a specified period of time the lender may be owed additional interest. The lender agreed to discharge the mortgage once the borrowers paid off the loan in full, also called a defeasance clause The lender is required to execute a satisfaction of mortgage when it's paid in full

Common mortgage loans options

The interest rate fluctuates based on the economic index to which it's tied- adjustable rate mortgage Debt is paid off by making periodic payments toward both principal and interest? Amortized The buyer has possession of the property while the seller stills holds the title? Land contract

Formal hearings true false

The judge filed a report after the hearing concludes? True The commission can call additional witness at the hearing? True The contested hearing is the final stop for licensee violation complaints to be resolved? False Once a matter is brought to a contested hearing the agency has no authority? False

Ken and Julia took out a five-year subprime loan that included a prepayment penalty clause. They're on track to pay it off after only three years. Which of the following is a true statement?

The lender can only charge a prepayment penalty if it was disclosed to the borrower.

Who establishes real estate commission rates?

The licensee or brokerage and the client

Who can you call for an advertising complaint

The national advertising division of the council of better business bureaus The company publishing the ad for the advertiser The attorney generals office The local office of consumer affairs The federal trade commission

Real estate professionals handle many documents related to real estate transactions which one of the items listed is one of the most important in detecting mortgage fraud?

The original sales agreement and any addenda

What must be included in principal brokers ledger

The payor of the funds Where the funds were deposited The date the funds were received The date the funds were deposited The final disposition of the funds after the close of the transaction

How is procuring chase related to a protection clause?

The period of time in the protection clause is only applicable if the licensee is the procuring cause

Which statements accurately describe how to make an adjustment

The subject property has three bedrooms and the comparable (competitive) property has four. Reduce the comps sales price The subject property has 2,800 square feet and the comparable (competitive) property has 2,200 increase the comps sales price

Rural development loan facts

These government loans are available to family farms and housing in rural areas Loans can be set for a period of 33 years (38 years for very low income individuals) The farm service agency administers rural Development loan programs

Fannie and Freddie

They're publicly traded They buy mortgages, package them, and resell them as a mortgage backed securities They act as link between banks the government, and Wall Street

According to Oregon law how quickly do you have to turn over checks to principal broker

Three banking days

A state attorney general may recover up to how much in damages (civil penalties) resulting from the Sherman act violation?

Three times the amount of damages (civil action) The federal government can recover up to two times

Marvin is preparing a BPO for lending station mortgages. What's the purpose of the adjustments he's required to make?

To account for differences between the subject property's and comparable (competitive) property's characteristics

3 reasons it's important for brokerage firms to have a code of ethics

To decrease legal liability and avoid costly penalties To help foster a collaborative and professional working environment To create a standard of behavior and practices that will establish and reinforce the forms reputation within its market

What are the intentions of laws requiring agency disclosure?

To educate the consumer about representation such as types of agency and fiduciary duties To define who the licensee represents in a transaction

CMA order

Tour the subject property taking notes about features, amenities, room size, updates, etc Select three to six similar properties in the area that recently sold and note their selling prices Make price adjustments to competitive properties

Permitted agency relationships

Transactional brokers, or non agency relationships, and designated agents are not allowed in Oregon

The law restricts the commission to imposing only certain disciplinary civil penalties for certain violations?

True When it comes to fines the commission can impose there are maximum amounts per violation if multiple violations have been committed the amounts can stack up pretty quickly

Trust account records true false

Trust account records must include all supporting documentation like bank statements, reconciliation worksheets, and copies of documentation such as agreements and checks- true Computerized records must be printed out for the trust account file- true Accounts must be reconciled at least once per month The reconciler must sign and date reconciliations- true

Two benefits of using a trust account for trust funds?

Trust accounts provide safety from the possibility of funds being frozen should the licensee or broker get caught up in litigation Keeping trust funds in designated trust accounts assists licensees and brokers by minimizing the possibility of accidental misuse of funds

Which entity guarantees loans?

U.S. Department of Veterans Affairs

Samuel and Yoshi have worked at the same firm for a few months and get along well. Samuel mentions he has a credit score in the low 800s. Yoshi, who's just starting out, persuades Samuel to sign for a loan to help Yoshi buy a property, since his credit isn't good enough. Yoshi promises to make the mortgage payments, but two months after the deal closes, Yoshi moves across the country. Samuel's now stuck with a $400,000 mortgage. What type of scheme is this?

Unfortunately, Samuel was a straw buyer. His credit was used to purchase a property and secure financing, so when Yoshi skipped town, Samuel was left with the responsibility of paying the mortgage.

What's a promissory note?

Until recently Oregon law permitted the use of promissory notes as earnest money. As of 2017, this is no longer the case. Promissory notes can now only be used in the case of an owner financed transaction

When you are using a cma to calculate a suggested price range for a particular property you will

Use adjusted prices from sold competitive listings and refine the range with data about active listings, expired listings, and possibly pendings

Principal broker Danny tells his associate Lucy to make sure that the e-files she creates for her transaction files are secure in order to maintain compliance with Oregon real estate laws. What does this mean?

Use an electronic storage device in which information once written can't be modified

Karen is a new principal broker. What is one possible way she can register?

Use her own newly created registered business name with the secretary of state

Registered business name requirements

Use the physical address of the main brokerage office Use the name on active record with the office of the Secretary of State Register all branch office that will operate under the main offices business name Register any additional business names used by the company if they're affiliated with or subsidiaries of the business

Which of the following best describes a home equity line of credit?

Used as an open-end account similar to the revolving credit of a credit card from which borrowers can take advances, repay money, and even borrow money again

Regarding documentation, which of the following actions can help a licensee avoid being accused of unauthorized practice of law?

Using approved fill-in-the-blank forms

Which of the following defines when a lender charges a borrower more than the highest allowable interest rate

Usury Usury rates vary by state and set the maximum interest rate that may be charged.

U.s vs Kentucky real estate commission

What did the court do in the u.s vs Kentucky real estate commission case Prohibited the commission from enforcing any regulations that prohibited licensed real estate brokers in Kentucky from offering no -misleading rebates or inducements Required the commission to notify brokers they can offer rebates and inducements to attract clients Permitted any broker whose license was suspended or revoked on account of offering a rebate or inducement to request to have the license reinstated Required the commission to cease any investigations or disciplinary actions relating to offering rebates or inducements and it provided that any disciplinary actions against those who had utilized rebates and inducements were null and void

What's market allocation?

When a brokerage firm and its agents agree not to compete for business with another firm or firms and the associated agents in specific markets and divide the markets accordingly

By establishing an mls policy for the firm brokers can help their licensees avoid or minimize violations. What are threes areas the policy should cover?

When and if listing data should be submitted for Broker approval When mls listings should be updated How and when mls listings may be posted

In Oregon when must a seller provide an agency disclosure to a buyer consumer?

When the seller either accepts or rejects the buyers offer

What's an example of real estate group boycotting

When two or more agents or brokerages refuse to cooperate and split commissions with one another

Charles is selling his property to Seth. Charles is financing part of the transaction for Seth, who will make payments to Charles while Charles retains the property title. What is this an example of?

With a land contract, the seller agrees to provide credit to the buyer for a portion (or sometimes all) of the funds required to close the transaction. The buyer makes payments directly to the seller.

Worm?

Worm (write once, read many) Is a type of data storage device itself

Records that require keeping according to Oregon administrative rules?

Written agreements creating or acknowledging an agency relationship Receipt of client trust funds a licensee received A listing agreement Bills a licensee paid on a clients behalf An electronic offer A copy of a check a licensee received from a buyer

Is this price fixing?

Yankee group and met realty both charge commissions of 5%? Not price fixing Met realty and Sox properties agree to charge commissions of 6%? Price fixing All agents with max realty charge a 4% commission split evenly with the cooperating agent? Not price fixing While networking at a real estate industry event agents from several firms agree to start writing listing contracts for terms of 3 months? Price fixing

Gus has applied for a home equity line of credit from his federally insured bank so that he can make some renovations to his kitchen. The same bank is his lender for his home mortgage. Will this loan be subject to Real Estate Settlement Procedures Act requirements?

Yes, because RESPA applies to any residential loan transaction from a federally insured financial institution, including equity lines of credit.

Under what circumstances may you store records at a location other than the main office or branch office?

You keep the records in a single location in Oregon The records are readily available for the real estate commissioners inspection You notify the commissioner in writing within 10 days of the relocation specifying the new sites details The commissions specifically authorized to inspect the records at the new location

What's a disclosed limited agent in Oregon?

You're representing both sides of a real estate transaction with the parties written and informed consent You're required to keep confidential information between the two parties confidential without written consent

Seller asks you to verify your clients ability to pay cash for the property. You say?

Your clients ability to pay cash isn't something you're required to investigate or verify for the seller

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

Zero

Jimmy owns a vacant piece of land. He plans to build a home on the land and then sell it. What type of loan is he most likely to acquire to finance this project?

construction

With a straight mortgage, what type of payments are made up until the end of the loan term?

interest

For 25 years, Isadora loved being her own boss, but now she's getting tired of the day in, day out tedium of running her business. She's ready to retire and move to a tropical island. She decides to sell her entire business in one fell swoop: the property together with all the equipment and furnishings. What type of loan would the buyer need to obtain?

package loan because the sale includes both personal and real property.

Anti-trust violations

price-fixing, group boycotting, allocation of customers and markets, tie-in agreements

Agatha helped her client Rufus complete the ______, which documents Rufus's purchase offer to the seller for the property he is interested in buying.

sales contract

Hank leases 150 acres from Sara and Jesse. He has an option contract attached to his lease, with an option to purchase that can be exercised within the next two years. What type of contract is this?

unilateral With an option contract before the option is exercised only there option er (the seller) is bound by the contractual obligations