TEST FEB20

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

Credit cards

Which of the following is a common chimney or fireplace problem?

Creosote

A buyer is purchasing a property for $400,000. His loan-to-value ratio is 80%. The lender also charges a one-point loan origination fee. How much is the loan origination fee?

$3,200

Your brokerage firm uses pre-printed sales contract forms, but your seller, Marcus, wants to add some language about staying in the house and renting from the buyer for a month after closing. What should you use to add this information?

Addendum

Rhonda and Oliver bought an old schoolhouse with the hope of transforming it into a residence. They owned the property as joint tenants. After Oliver died, how did Rhonda own the building?

In severalty

Sander and Ginny bought an old industrial site and plan to get grant money to put an environmental education center on the site. There are a few structures on the property, but they are in disrepair, and it will likely be less expensive to tear them down and build new than to rehabilitate them. However, the new owners are sure that they've made a great investment because the land is in great shape. This reflects which physical characteristic of real property?

Indestructibility

What is the overarching theme addressed by statutory duties in most states?

Licensees may not take any action that might be detrimental to the client's legal interests.

Margo's accountant tells her that she's eligible to deduct the property taxes she paid last year. Select the statement about this deduction that's true.

Margo is in the ownership stage of the property ownership lifecycle.

Which one of the following statements about asbestos is true

No amount of it is considered safe.

A closing agent has several duties to perform both before and after the closing. Which of the following is a task the closing agent must complete after the closing?

Pay the existing loan off

Governments like property taxes as a revenue source because ______.

Property values, and therefore taxes, tend to remain stable

In many cases, property managers must get explicit permission in order to disburse funds from a trust account. What is one common way to do so without this explicit permission?

Put it in the property management agreement.

Which of these is an example of practicing within your area of competence?

Researching the property tax amount that a client will pay on the home he's purchasing.

Which of these statements about the homeowner's right of redemption is true?

Rights of redemption window with REOs may have expired.

Kenneth plans to shop around for his mortgage loan to be sure he's getting the best interest rate and terms. What lender-provided document outlines loan rates and fees so he can make comparisons?

The Loan Estimate permits Kenneth to comparison shop.

Which of these statements about frontage is true?

The frontage for a lot that's 120 feet by 85 feet is 120 feet.

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

The original sales agreement and any addenda

Commander Halfback retires after 25 years of service in the Coast Guard. He is looking to buy a home. What type of loan should he use?

FHA, VA, or conventional

What does the Federal Trade Commission consider to be an unfair ad?

Any ad or business practice that causes or is likely to cause injury

Mary agreed to buy her mother's house when her mother planned to move to a senior living community. They signed a purchase agreement, but when Mary had to move because of work, she signed her rights in the contract over to her sister, Tina. Mary may still owe money if Tina can't come up with the agreed-upon funds. What's happening in this scenario?

Assignment

Burt owns a development company that specializes in constructing new, energy-efficient houses. The best approach for an appraiser to use in the appraisal of Burt's newly built homes is the ______.

Cost approach

Which of these is NOT one of the ways in which an agency relationship may be terminated without penalty for either the agent or the principal?

Delaney signed a buyer's representation agreement with Martha. After Delaney made an offer on a house, she changed her mind and terminated the agency agreement.

Which statement best describes the criteria that would permit Tristan to legally engage in dual agency?

His firm and the state permit it and he obtains the proper consent.

What factors directly affect an adjustable rate mortgage?

Rate, index, and margin