Recently missed questions

Exclusive Agency Listing

1) Only one broker is authorized to sell 2) If the owner finds a buyer, no commission is owed

One Square Mile equals how many acres

640

A buyer is purchasing a property for $400,000. His lender's loan-to-value ratio is 80%. How much is the buyer financing? Topic: Real estate calculations Subtopic: Basic math concepts $320,000 $360,000 $400,000 $80,000

An 80% LTV ratio means the buyer is financing 80% of the purchase price. This equates to $320,000.

Which of the following statements regarding reasonable accommodations and modifications is true? A landlord can freely question disabled individuals about their disability. An individual can make a request for accommodation or modification at any time. A property owner must always complete modification requests. The property owner is always responsible for paying for any reasonable modifications that are completed on the property.

An individual can make a request for accommodation or modification at any time. Management should respond in a prompt and timely manner, because failure to respond could lead to a fair housing complaint.

Tristan's offer has been signed by all parties and delivered back to the seller. This means that ______ has occurred. Topic: Contracts Subtopic: Offers/purchase agreements Acceptance Binding acceptance Notarization Personal delivery

Binding acceptance happens when a signed contract is delivered according to the delivery procedures and deadline outlined in the contract.

Which of the following is an example of an escalator offer? Buyer offers $650,000. Seller accepts. Buyer offers $650,000. Seller counters at $675,000. Buyer accepts. Buyer offers $650,000. Seller counters at $675,000. Buyer counters back at $665,000. Buyer offers $650,000 with clause that buyer will beat all competing offers by $3,000 up to $675,000.

Buyer offers $650,000 with clause that buyer will beat all competing offers by $3,000 up to $675,000. An escalator offer will contain a clause similar to this: "Buyer to beat all competing offers by $XX up to a price of $XXX,XXX. Seller to provide copies of competing offer to buyer on acceptance."

Which of the following scenarios accurately describes the similarities between an open listing and an exclusive agency listing? In both types of listings, sellers are required to pay a commission to all of the brokers who list the home. In both types of listings, the broker owes the commission regardless of who sells the property. In both types of listings, the seller may work with multiple brokers to sell the property. In both types of listings, the seller who finds the buyer won't owe a commission.

In both types of listings, the seller who finds the buyer won't owe a commission.

What's one of the most fundamental of all fiduciary duties, and is the one that underlies all other duties? Accounting Disclosure Loyalty Obedience

It's loyalty, which means putting your client's interests ahead of your own, and incorporates all of the other duties.

Max has a written agency agreement with Rufus in which Max will receive all of the listings in the subdivision that Rufus purchased (with Max's representation) and is developing. One day when Rufus is visiting the site of the subdivision, a work truck accidentally runs him over and he's seriously injured. Rufus can no longer run the development of the subdivision. What happens to Max's agency coupled with interest? It's still in place because it doesn't terminate on the death or incompetence of the principal. Max has no recourse; the agency relationship is terminated and he receives no compensation. Max now owns the subdivision as a result of the principal's death or incapacity. Rufus must now pay Max the commission that he didn't get from the original listing, and the agency relationship is terminated.

It's still in place because it doesn't terminate on the death or incompetence of the principal. Agency coupled with interest is irrevocable.

Which of the following is the price a lender believes the property will bring at a foreclosure sale? Insured value Investment value Mortgage value Value in use

Mortgage value

Leigh Ann is a licensee. Her cousin, Carly, is interested in buying a house. Leigh Ann shows Carly how to look for properties online and runs some CMAs for her. When Carly finds a property she likes and asks Leigh Ann to help her make the offer, Leigh Ann decides she should ratify the agreement with Carly. What are Leigh Ann's options for accepting an agency relationship after the fact? Continue to assist Carly and have her sign an estoppel certificate. Leigh Ann's only option is to get a signed listing agreement. Prepare an agency agreement or continue to assist Carly with the purchase. Prepare an estoppel certificate and a listing agreement.

Prepare an agency agreement or continue to assist Carly with the purchase.

Gabi owns one parcel measuring one square mile and another parcel measuring one mile x half a mile. She combined the parcels and sold them for $2.5 million. What price per acre did she receive for the land? Topic: Property ownership Subtopic: Land characteristics and legal descriptions $1,953.13 $2,604.17 $3,125.00 $3,906.25

Since we know that one square mile is 640 acres, we can convert each parcel to acres. The first parcel is 640 acres (one square mile). The second parcel is half that size (1 mile x 1/2 mile), or 320 acres. Thus, the total acreage is 960. Divide the sales price by the total acreage (2,500,000 ÷ 960), or $2,604.17.

What's the relationship between TILA, RESPA, and TRID? The Dodd-Frank Act requires that lenders use the TILA-RESPA Integrated Disclosures (TRID). TILA and RESPA require lenders to use TRID. TILA, RESPA, and TRID mandate the lender disclosures required for federally related transactions. TRID mandates the type of disclosures for TILA- and RESPA-related transactions.

The Dodd-Frank Act requires that lenders use the TILA-RESPA Integrated Disclosures (TRID).

Your seller wants to net $100,000 after the 5% commission is paid. Assuming no closing costs, at what price does the home need to sell for the seller to net this amount? $105,163.16 $105,263.16 $105,363.16 $105,463.16

The seller's percentage of a sale is 100% - 5% commission = 95% (or .95). Take the amount the seller wants to net and divide it by that amount ($100,000 ÷ .95 = $105,263.16). Conversely, for a sales price of $105,263.16: $105,263.16 × .95 = $100,000.

Exclusive right to sell

a listing that gives the broker the right to collect a commission no matter who sells the property during the listing period.

Appraiser Niles uses ______ to determine a range of values based on comparing a subject property to comparable sales. He makes sure to use some comparables that lack features of his subject property, and others that have even more desirable features, to balance out the comparison. Topic: Valuation and market analysis Subtopic: Estimating value Bracketing Competition Correlation Substituting

bracketing Bracketing determines a probable range of property values by comparing a group of comparable sales to the subject. The appraiser attempts to include both superior and inferior units of comparison such as age and transaction price.

Stella owns a building in an area of town that's being revitalized. Local property owners believe property values will increase considerably over the next 10 years. Stella wants to entice long-term tenants with a low initial rent but have the flexibility to increase rent as her property's value increase. What type of lease should she consider? Graduated Gross Net Percentage

graduated Graduated leases permit an increase in rent during the lease period. The increase can be based on a number of factors, such as changes to appraised value, index, or time.

Jacob's family has operated a neighborhood grocery store in the community since before the land was zoned residential. Jacob continues to operate the store legally. What would you call this? Topic: Land use controls and regulations Subtopic: Government controls Mixed use Non-conforming use Residential retail use Special use

non-conforming