Exam 1 Practice (National)
A property closed for $210,000, and the seller made a 20% profit. How much had the seller paid for the property, assuming he/she did nothing to the property? $162,500 (Dollars) $168,000 (Dollars) $175,000 (Dollars) $252,000 (Dollars)
$175,000 (Dollars) 175,000 x 1.2 = 210,000
A property is set to close on January 15th. The quarterly tax bill (for January through March)l for the property is $600, and is due on February 1st. Which of the following will occur at closing?
The buyer will receive $100 from the seller at the closing
A borrower's monthly mortgage payment is $1,400, their quarterly tax bill is $600, and their 6-month insurance bill is $600. What is the PITI?
$1,700 (Dollars) Quarterly taxes of $600 = $600 / 3 = $200/month. $600 of insurance for 6 month = $100/ month. PITI = $1,400 (Principal and Interest) + $200 (Taxes) + $100 (Insurance) = $1,700
A deed is used for which of the following? To have a record Confirming ownership Transfer ownership from the grantor to the grantee Transfer ownership from the grantee to the grantor
Transfer ownership from the grantor to the grantee A deed is the legal document that is used to transfer ownership of a property.
A homeowner enters into a contract with a builder who agrees to build the homeowner a deck for free. This contract is..? Valid Voidable Void Enforceable
Void Because there's no consideration involved, this contract is void. It doesn't include one of the required elements for a valid contract
Which of the following in incorrect regarding a bridge loan? It is likely an interest-only loan IT is a short term loan It is used when buying before selling It does not create a lien
it doesn't not create a lien The bridge loan will create a lien on both the property being sold and the property purchased.
A buyer has offered on a home built in 1942. The seller's agent provides the buyer with the necessary disclosures regarding lead-based paint. Unless the parties agree differently, how long does the buyer have to conduct a lead-based paint inspection? 15 days 10 days 14 days 5 days
10 days —> Buyers must be allowed 10 days to have an inspection for lead-based paint conducted.
A borrower is looking at various loan options. He sees that fixed rate loans have a higher interest rate than the ARM loans; however, interest rates are expected to go up in the near future. If the borrower plans on selling the house within three years, which loan option is best?
A fixed ARM for 3 year would be a good option - In a 3 year fixed ARM, the payments would stay fixed for the first 3 years, and adjusted afterwards. But the borrower would pay off the loan by then when he sells the property. Since the fixed ARM has a lower interest rate, it will be the best option for the borrower.
Which of these items would you most likely see as an exclusion in a title insurance policy? Property taxes in excess of a certain amount The mortgage lien that will be paid off at the closing An unrecorded lien A known easement
A known easement —> Exclusions on a title policy list known encumbrances, such as an easement, that the title insurance company will not be responsible for.
Which of these scenarios illustrates a potential conflict of interest a licensee must disclose? A licensee lists a property she once owned. A licensee shows a buyer client a property that is in the licensee's own neighborhood. A licensee makes an offer on her own behalf on a home listed by another brokerage. A licensee represents a former school-mate he last talked to 10 years ago.
A licensee makes an offer on her own behalf on a home listed by another brokerage. —> Licensees must disclose their licensed status when offering for, selling, or leasing property on their own behalf since this is a conflict of interest.
The owner of a retail complex is most likely to use what type of lease? A net lease A percentage lease A ground lease A graduated lease
A percentage lease
When two parties to a contract each have obligations to perform as part of the contract, the contract is considered...?
Bilateral
Which of these is a duty a customer could NOT expect from the real estate licensee? Honesty Confidentiality Disclosure of material facts Integrity
Confidentiality Confidentiality is a fiduciary obligation an agent owes to clients. It's not a duty owed to customers
Which of these items is NOT a required element for a general warranty deed to be valid? An acceptance clause A granting clause A legal description of the property A competent grantor
An acceptance clause —> The deed doesn't have an acceptance clause. Other required elements are consideration, be in writing, a grantee, and delivery and acceptance.
The income approach used by an appraiser is based h on which value principle? Substitution Regression Anticipation Progression
Anticipation
At the sale of the property, the deed simply states that the grantor has the right to convey ownership but does not include any warranties. This type of deed is called a/an...?
Bargain and sale deed
A property management agreement is signed between which two parties?
Broker and a landlord
Roof defects on a newly construction house are likely to be covered by which of the following? Home warranty Casualty warranty Homeowner's insurance Builders warranty
Builder's warranty
In a listing contract, the agent agrees to market and sell the seller's property in exchange for a commission. This is an example of...?
Consideration All valid contracts must have consideration. Consideration is "something of value", which is usually money. In a sales contract, consideration is the money the buyer is willing to pay for the property. In a listing contract, consideration is seller's agreement to pay the agent a commission.
Which of these events will NOT terminate a purchase and sale contract? Closing the transaction Mutual agreement Operation of law Death of the seller
Death of the seller - of the seller dies, the sale is binding on the heirs of the seller
The purpose of the Sherman Antitrust Act is to...?
Ensure fair competition between businesses
A seller and buyer just signed the sales contract. The sales contract is considered...?
Executory
Which type of loan reduces a lender's risk by insuring against borrower default? VA-insured loans Conventional loans with MIP Fannie Mae and Freddie Mac loans FHA-insured loans
FHA-insured loans FHA insured loans reduce the lenders risk by ensuring the lender against borrower fault this allows the lender to make loans with a the lower down payment. VA loans are guaranteed not insured.
A buyer's broker representing a buyer with no contract and no discussion has created which type of agency relationship? Null Express illegal Implied
Implied If the broker is acting as the buyer's representative with no contract, no agreement, and no discussion of the relationship, its an implied agency relationship. The broker owes the buyer all fiduciary duties, but isn't entitled to compensation.
Which of the following is not an encumbrance? CC&Rs License Encroachment Easement
License A license is a personal permission. The remaining answer choices are all a form of encumbrance.
Nancy is an associated licensee who receives an earnest money check. What's her legal responsibility? Deposit it into the brokerage escrow account Deposit the check in her account until she can transfer it to the closing agent Hold the check securely until the closing Promptly give it to her broker
Promptly give it to her broker —> As an associated licensee, it's Nancy's responsibility to give the check promptly to her broker, who is responsible for depositing it in an escrow account.
When borrowing money for the purchase of real estate, the borrower...?
Referred to as mortgagor
When does the buyer obtain a mortgage commitment?
The mortgage commitment can only be obtained after the buyer has secured a property and it has been appraised.
What documents will an architect reference to know where a house can be situated on a property? Building code Zoning ordinances Board of health regulations Master plan
Zoning ordinances The zoning ordinances provide information relative to set backs which dictates where you can locate a building on a property. The master plan indicates the allowable usage, and the building codes cover construction rules.
If the LTV is set at 80% and the purchase price is $500,000, what is the down payment required by the borrower?
$100,000 500,000 / .2 = 100,000
The property is valued at $350,000 and the owner's loan balance is $213,000. What's the value of the owner's equity? $70,000 (Dollars) 61% (Percent) 39% (percent) $137,000 (Dollars)
$137,000 (Dollars) Equity is found by subtracting the loan balance from the property's current value. 350,000 - 213,000 = 137,000
The buyer paid two points worth $4,000 at the closing on a conventional 80/20 loan. What is the sale price? $250,000 (Dollars) $200,000 (Dollars) $225,000 (Dollars) $275,000 (Dollars)
$250,000 (Dollars) —>Calculate the loan amount using the points value. Each point is 1% of the loan. $4,000/ .02 = $200,000. The loan is 80% of the sale price, so the sale price = $200,000 / 0.80 = $250,000
The closing takes place on March 1, the insurance policy is transferred from the seller to the buyer, the $1,200 insurance payment for the year will be due on June 1. How is it reflected on the closing statement? $1,000 debit to buyer and $1,000 credit to seller $200 credit to buyer and $200 debit to seller $300 debit to buyer and $300 credit to seller $1,000 credit to buyer and $1,000 debit to seller
$300 debit to buyer and $300 credit to seller —> The $1,200 annual insurance payment represents $1,200/12 = $100 per month. The seller has already paid for the period of January through May, but occupied the property for two months ($200). Since the buyer will pay the full amount on June 1, the buyer is responsible for the amount the seller prepaid covering March, April, and May. The closing statement is going to show that the buyer pays back the seller the $300, a debit to the buyer and a credit to the seller.
Amy sells her primary residence, where she's lived for 15 years. The capital gain exemption for a single person like Amy's $250,000. Amy is liable for capital gain tax on $50,000 from the sale of her home. If she originally purchased a home for $200,000 how much did she sell for? $500,000 $250,000 $450,000 $750,000
$500,000 -Amy's gain was $300,000 (the $250,000 exempted amount on which she doesn't owe capital gain taxes, plus $50,000 over that on which she now owes capital gain taxes). Her original purchase price plus the amount of her total gain is $500,000
What is the total tax burden for the seller on the sale of his primary residence (lived in it the last 3 years), where he realized a gain of $125,000 when selling the property for $400,000 , the state has a tax stamp cost of $1.5% and the capital gain tax is 15% $18,750 (Dollars) $24,750 (Dollars) $6,000 (Dollars) $7,500 (Dollars)
$6,000 (Dollars) —> 400,000 x .015 = 6000
A lender charges 2 discount points. The loan amount is $360,000. What is the value of the points? 720 18000 180 7200
$7,200 360,000 x .02 = 7200
The tax assessed value of a property is $350,000. The mill rate is 10. What is the quarterly tax amount?
$875 -> 10 x .001 = .01 —> (.01) x 350,000 = 3,500 —-> 3,500 / 4 = 875
Licensee's Rick submitted his buyer client's offer to the seller it's been 48 hours and they haven't had a response from the seller yet. Which of these is true?: After 48 hours, the offer is considered invalid and can't be accepted The seller must accept or reject the offer; the buyer contractually obligated until the seller takes an action After 48 hours the buyer can assume his offer is accepted The buyer can withdraw his offer at any time until it's accepted
- the buyer can withdraw his offer at any time until its accepted —> the buyer can withdraw his offer as long as the seller has not accepted it
Rae's buyer client if offering for a house that was built in 1969. Rae must ensure that her client is..? Given a list of recommendation lead-based paint inspection services Aware that lead-based paint was used in homes constructed prior to 1978 Given a disclosure regarding lead-based paint hazards if the seller is aware of any such paint in the home Given a pamphlet describing lead-based paint hazards and how to handle them
-Given a pamphlet describing lead-based paint hazards and how to handle them Law requires the pamphlet
Some of the closing costs on a $300,000 transaction are as follows: Commission of $15,000, title insurance fee of $5,000, mortgage pay-off of $245,000. Based on that information, what is the seller's proceed of sale?
40,000 Proceed of sale is $300,000 - $245,000 - $15,000 = $40,000. The $5,000 title insurance fee is paid by the buyer, not the seller.
The property tax rate is 8 mill. The market value of the property is $300,000 and the assessed value is $250,000. What is the quarterly tax bill? 50 2,000 200 500
500 250,000/1000(8) = 2000 —> 2000 / 4 = 500 (quarterly)
The state charges a transfer tax of $2 per $500. What will be the transfer tax if a property sells for $150,000?
600
A licensed appraiser is most likely to be used in which scenario?
A buyer applying for a loan to purchase a house
All else being equal, which of these would a seller consider the best offer? An offer with 10% down and mortgage and inspection contingencies. A cash offer with an inspection contingency limited to structural issues. An offer with no earnest money, a mortgage contingency, and an inspection contingency. An offer with $5,000 down and a mortgage contingency.
A cash offer with an inspection contingency limited to structural issues. —> A cash offer with an inspection contingency limited to structural issues poses the least risk of issues for the seller.
Niels developing his marketing strategy. Which of these is not a requirement Neil has to file based on the telephone consumer protection act? Yummy make telemarketing calls only between the hours of 8 AM and 9 PM If you call someone who asked to be taken off his list, he must make the change within 30 days of the request All Neil's telemarketing calls must be from him personally or must use his voice on the recording Neil should avoid calling any number on the do not call registry
All Neil's telemarketing calls must be from him personally or must use his voice on the recording —> The TCPA as no requirement that a telemarketing call from a real estate agent like Neil must be from him personally
Several of Ned's listings sold recently. Which one of these was most likely to require flood insurance? A home and a special flood hazard area. The buyer paid cash And I'm develops lot in a protected wetland. The buyer is a nonprofit entity An office building in a flood hazard area. The building will be security for a mortgage A home with a history of leaking pipes and flood damage. The building will be security for a mortgage
An office building in a flood hazard area. The building will be security for a mortgage Property in a special flood hazard area, which is designated by the government, will require flood insurance if the building is used as security for a federally related mortgage loan
Eight days after signing a purchase contract for a home built in 1952, the buyer's inspection discovers lead-based paint in the home. How will this affect the transaction? The EPA requires the seller to perform mitigation before the transaction can close. The lead-based paint contingency doesn't protect the buyer in this situation because the house was constructed prior to 1978. Since the buyer has exceeded the maximum time allowed for inspection in the lead-based paint contingency, the buyer has no option but to move forward with the sale. Because of the lead-based paint contingency, the buyer may renegotiate or may terminate the contract without penalty.
Because of the lead-based paint contingency, the buyer may renegotiate or may terminate the contract without penalty. —> The lead-based paint contingency gives buyers up to 10 days to conduct an inspection for lead-based paint. If a hazard is discovered, the buyer has the right to cancel without penalty, or may choose to negotiate repairs with the seller.
Chase has a buyer client who wants to buy acreage where he can build his own improvements. Which of these describes the Chase's responsibility to his client? Chase would be acting outside the scope of his license if he advised a client about the impact of zoning regulations, so he should direct the buyer to the local building department. The buyer is fully responsible for understanding the potential impact of zoning regulations on the properties Chase shows him. Chase has no obligation in this area. Chase needs to be familiar with all the details regarding local zoning regulations and how they may affect this client so he can advise him appropriately. Chase needs to remind the buyer about zoning regulations that may limit the development of a property and advise the buyer to find more information from the local building department.
Chase needs to remind the buyer about zoning regulations that may limit the development of a property and advise the buyer to find more information from the local building department. —> As a buyer 's agent, Chase needs to remind his client about the potential impact of zoning regulations which may limit development on a property. He should refer the client to the local building department for complete details.
Transaction closing takes place on June 1. The seller has pre-pay the tax bill of $6000 for the year. The buyer owns day of closing. Using a statutory year, how's the amount prorated on this closing statement statement? Debit to the buyer of $2,500 and a credit to the seller of $2,500 Credit to the buyer of $3,500 and a debit to the seller of $3,500 Credit to the buyer of $3,500 and a debit to the seller 0f $2,500 Debit to the buyer of $3,500 and a credit to the seller of $3,500
Debit to the buyer of $3,500 and a credit to the seller of $3,500 - $6000 tax bill represents 6000/12 = $500/month —> the seller is responsible for Jan through May or 5 months ($2,500) —-> the buyer is responsible for 7 months (3,500). Since the seller paid the full amount on May 1, the closing statement is going to show that the buyer pays back the seller the $3,500, a debit to the buyer and a credit to the seller
In an assumption of mortgage, which of the following statements is correct? The buyer has the primary responsibility for the loan payment The buyer has no down payment obligation The seller has no obligations left The seller still has the primary obligation of the loan
In an assumed loan, the buyer "takes over" the loan for the seller. The buyer has the primary responsibility, but the seller still has a secondary liability. The buyer will have to cover the difference between the purchase price and the assumption amount.
The term of Abe's loan involve a payment cap and negative amortization. Abe is most likely..? Assuming. A loan from a seller whose interest rate was lower than the rates currently available? Defrauding the lender An investor who uses one loan to pay another Intending to refinance the loan or sell the property in a short amount of time
Intending to refinance the loan or sell the property in a short amount of time - with the terms, Abe's loan balance will actually increase with each payment. Abe most likely intends to refinance or sell the property before the loan amount increases substantially
Which of the following is associated with the cost of a loan? PMI MIP Interest Down Payment
Interest
What is the purpose of the alienation clause in a mortgage? It requires the borrower to obtain lender approval of the property sale. It requires the borrower to pay off the loan balance at the time of sale. It gives the borrower permission to sell the property and for a buyer to assume the loan with its current terms. It prevents the borrower from transferring title to the property if there is less than 20% equity build-up.
It requires the borrower to pay off the loan balance at the time of sale —> The alienation clause is also known as the due on sale clause. It requires the seller to pay off the loan balance at the time of sale.
Luis is a salesperson who is acting as a listing agent for a friend. Is this considered a conflict of interest for Luis? It is a conflict of interest unless Luis acts as a dual agent in the transaction. It is a conflict of interest and Luis should advise his friend to use another agent. It is a conflict of interest that Luis should disclose to other parties. It's not a conflict of interest since it's not a family member or close business associate.
It's not a conflict of interest since it's not a family member or close business associate. —> Since Luis is representing a friend and not a family member, it's not considered a conflict of interest. Licensees must disclose their licensed status when offering for, selling, or leasing property for close relatives or business associates.
Which of these sellers is exempt from the federal; fair housing laws? Mildred, who is selling an older home with lead-based paint. She refuses an offer from a family with young children and tells her agent it's because the children shouldn't be exposed to the hazardous materials Nadia tells her real estate agent she wants to limit any marketing to specific groups of people that are neighbors will approve of Josiah, who is selling his home without the assistance of a real estate broker. He shows his home only to people who shares religious beliefs Noah, who instructs his real estate agent to avoid showing the property to anyone with a heavy accent. He doesn't care what type of accent they have
Josiah, who is selling his home without the assistance of a real estate broker. He shows his home only to people who shares religious beliefs —> Josiah is exempt from the federal fair housing laws because he isn't using the services of a real estate agent . However, it's always illegal to discriminate on the basis of race.
Which of these property valuations is LEAST likely to require the services of a certified or licensed appraiser? Approval of a first mortgage loan Listing a property for sale Determining tax assessed value Probating an estate
Listing a property for sale - valuation from an appraiser isn't required when listing a property for sale. In most cases a real estate licensee will conduct a CMA
Special assessment taxes would not be used to cover the cost of...? Local road maintenance New neighborhood street lighting Sewer installation Sidewalk installation
Local road maintenance Local road maintenance would be part of the operating budget of a municipality and covered by the general property tax. Special assessment taxes are designed to cover localized improvements and paid for by the property owners benefiting from them.
Which is true regarding dual agency? There is no fiduciary obligations anymore Confidentiality does not apply anymore Loyalty is compromised Both clients receive full fiduciary obligations
Loyalty is compromised In a dual agency, the fiduciary obligations are reduced and loyalty is compromised, but confidentiality will remain.
Really is a licensee you ask as a property manager for an apartment complex. Which of these is really required to do under the Americans With Disabilities Act? Provide wheelchair accessible units on the ground floor of each building in the complex Replace all stairways with accessible elevators or ramps, as appropriate Make sure all public spaces in the complex or accessible for those with disabilities. Make rental units available to an applicant with disabilities before considering other applicants
Make sure all public spaces in the complex or accessible for those with disabilities. - the ADA is a federal law that requires public places to be fully accessible to those with disabilities
Myrtle is running out one of her rooms in her house. She wants to be choosy about a roommate, preferring a female who will be quiet and won't smoke. Which of the following statements is true about myrtles situation? Myrtle me discriminate against men based on the Mrs. Murphy exemption as long as she doesn't use a real estate agent Myrtle me discriminate on the basis of sex but must avoid discriminating against any other protected class Myrtle is included in the miss Murphy exemption because she intends to live in the same house as the renter Myrtle is allowed to be discriminatory in her advertisements for the rental and her selection of a roommate
Myrtle me discriminate against men based on the Mrs. Murphy exemption as long as she doesn't use a real estate agent —> Myrtle is covered under the Mrs. Murphy exemption. As long as she doesn't use a real estate agent, doesn't discriminate on the basis of race, doesn't use discriminatory advertising, she's acting with the wall
Which of the following is required for a valid contract? Offer, consideration, competent parties, legal purpose Offer and acceptance, meeting of the mind, competent parties, legal purpose, Offer and acceptance, consideration, legal purpose, in writing Offer and acceptance, consideration, competent parties, legal purpose
Offer and acceptance, consideration, competent parties, legal purpose
Which group of financial reports would all typically be prepared by a property manager for the owner? Operating budget, depreciation report, quarterly income tax statement Operating budget, profit and income statement, capital reserve budget Operating budget, profit and loss statement, and cash flow report Management budget, credit report, quarterly income tax statement
Operating budget, profit and loss statement, and cash flow report —> An operating budget, a profit and loss statement, and monthly cash flow reports are typical financial reports provided to an owner by the property manager.
Which federal law regulates the way financing terms may be advertised? RESPA CFPB Equal credit opportunity act TILA
TILA —> The Truth in Lending Act regulates advertising financing terms through the requirements found in Regulation Z.
Which of these licensees is guilt of the unauthorized practice of law?: Stan draft a purchase offer for his buyer client with input from his client. Do you filled in the blanks on a purchase contract according to her buyer clients direction. Bob uses a pre-printed form when he signs a listing agreement with a seller Harry deletes a provision in her independent contractor agreement before signing it
Stan draft a purchase offer for his buyer client with input from his client. - stan is the guilty one. Real estate licensee's my only fill in blanks on pre-printed forms to developed by qualified attorney. Since Harry's independent agreement is on her own behalf, she's allowed to make her own changes
Which of these statements is TRUE? Buyers a grantor. Turn on the property transfers with the sellers signed the deed. The deed transfers from grantor to grantee when all parties sign the deed and an acknowledgment is recorded the Seller is the grantee. Total is conveyed one at least one grantee signed the deed and delivers it to the grantor The buyers the grantee. Title of the property passes to the buyer when the buyer excepts delivery of the deed
The buyers the grantee. Title of the property passes to the buyer when the buyer excepts delivery of the deed —> The seller is the grantor and the buyers to grantee. Title transfers upon delivery and acceptance of the deed. All grantors named on the deed must sign the deed so it can be recorded
A seller entered into a contract with a buyer. However, prior to closing, the seller decides they no longer want to sell the property. If the seller terminates the contract, what has occurred?
The contract is considered executed and both parties are released of their obligations The buyer is in breach of contract This is a breach of contract and the buyer can sue for specific performance The contract is legally voided The seller cannot back out of the sales contract, unless the buyer mutually agrees to terminate the contract. Otherwise, the seller is in breach of contract. The buyer may sue for specific performance, meaning the seller must follow through with their contract obligations.
When a transaction is closed according to the terms of the purchase agreement, it means what?: The contract is discharged due to performance. The contract is no longer needed and is terminated. The contract is closed and the parties are released from their obligations. The contract is subject to novation.
The contract is discharged due to performance. —> When the parties have fulfilled their obligations according to the contract, it's performed and on that basis is discharged.
Which statement is FALSE regarding depreciation and the cost approach to property value? The depreciation is calculated based on the economic life of the property. The condition of the property impacts the amount of deprecation. Functional obsolescence is a form of depreciation. Changes in the area near the property can contribute to the amount of depreciation.
The depreciation is calculated based on the economic life of the property. —> you The calculated number is a tax depreciation allowed by the IRS
At the time of making an offer, the buyer understood that everything attached to a wall would be part of the sale. The contract lists no exclusions. Which of the following would be a problem at the walkthrough of the property? AThe laundry room wall mounted cabinets are gone BThe seller has not removed the built-in bench CThe free standing kitchen island is missing DThe curtains have been removed
The laundry room wall mounted cabinets are gone
Jeff is selling his duplex. The two units are occupied with six months left on each lease. Krista buys the duplex. What happens to the existing leases?: Krista can choose to except the existing lease is your main modifier terminate them The leases or transferred from Jeff to Krista. Krista isn't allowed to change the terms of the existing leases The sale of the property terminates the leases. Kristen the tenants can negotiate new leases Jeff are mange the landlord until the terms of the existing leases expire
The leases or transferred from Jeff to Krista. Krista isn't allowed to change the terms of the existing leases —> when leased property is sold, the leases are transferred from the seller to the buyer. The buyer cannot change the lease terms
Which is correct about water stains a licensee notices when preparing to list a property? The licensee should refuse to take the listing. The licensee has no obligation related to the water stains since property disclosures are a seller's responsibility. The licensee should ask the seller to explain what they know about the stains. The stains represent a material defect that must be corrected before the licensee can put the property on the market.
The licensee should ask the seller to explain what they know about the stains. —> The licensee should ask the seller about the stains so that any known issues can be disclosed to prospective buyers.
Which of the following is true regarding property disclosure forms? The listing agent should discourage the seller to fill them out The listing agent should NOT fill out the property disclosure form The seller should answer all questions and guess when they don't know The listing agent should fill out the property disclosure form
The listing agent should NOT fill out the property disclosure form Only the seller should complete the property disclosure form to the best of their knowledge. The listing agent should not complete the property disclosure form.
A licensee and seller sign a listing agreement but the seller is intoxicated at the time. What's true? The listing agreement is enforceable. The listing agreement is voidable by either party. The listing agreement is void. The listing agreement is voidable by the seller, who wasn't legally competent.
The listing agreement is voidable by the seller, who wasn't legally competent. —>The listing agreement is voidable by the seller, who wasn't legally competent at the time of signing.
What happens when the seller counters a buyer's offer? The terms of the original offer remains valid The seller is now the offeree The buyer is obligated to accept the counteroffer The original offer is terminated
The original offer is terminated
At the closing, the buyer pays a title insurance fee. The title insurance policy covers which of the following? The interest of the seller's lender The ownership rights of the seller The interest of the buyer's lender The ownership rights of the buyer
The ownership rights of the buyer - A fee policy is a title insurance policy covering the owner and his/her heirs. The lender's policy would cover the buyer's lenders' interest.
A licensee lists a property for a seller client. When the transaction closes successfully, what is true? The seller is no longer the broker's client, and the broker's fiduciary duties are terminated. The seller is no longer the broker's client, but the broker is still bound by confidentiality. The seller remains the broker's client, but the licensee no longer owes the seller any fiduciary obligations. The seller remains the broker's client and the licensee continues to owe all fiduciary obligations.
The seller is no longer the broker's client, but the broker is still bound by confidentiality. —> The seller is no longer the broker's client because the listing agreement terminated with the closing. While most of the fiduciary obligations are also terminated, an agent's duty of confidentiality always survives.
A subject property is an older home with four bedrooms and one bathroom. However, the surrounding neighborhood primarily consists of new construction with four bedrooms and three bathrooms. What can be said of the subject property?
The subject property is worth less because of functional obsolescence
A signed purchase contract has not been returned yet to the offeror. What does this mean? The contract is executory There is no contract yet since delivery and acceptance is not complete. There is partial performance on the contract. The offeror has lost the opportunity to rescind the offer.
There is no contract yet since delivery and acceptance is not complete. —> There is no contract yet since delivery and acceptance is not complete. When the accepted offer has been received by the offeror, the contract becomes executory.
The deed includes a description of the property using the words "starting at the point located at ". Which of the following is incorrect? AIt will then mention the lot and block BThis is the beginning of a legal description CThe description will continue with dimension and distances DThe description will end at the same point
This is a metes and bound description, not a lot and block description. The metes and bounds method begins and ends at a specific location.
When a buyer is financing the property purchase, the buyer must receive the Closing Disclosure for review within what time period? Two days prior to closing Three days after loan application Three days prior to closing Five days after loan application
Three days prior to closing
Which of these comments would NOT be appropriate to post on your Facebook business page? We are experiencing a strong seller's market right now! This new property is just listed, open house on Sunday! Took a buyer out today and they fell in love with one house. Writing an offer tonight! The best renovation projects in this area are patios with an outdoor kitchen.
Took a buyer out today and they fell in love with one house. Writing an offer tonight! —> It's inappropriate to post comments such as "Took a buyer out today and they fell in love with one house. Writing an offer tonight!" This would violate your confidentiality obligation to the buyer, and possibly jeopardize their negotiation power if the listing agent sees the post.
How long does a listing agent need to let the seller know about any additional offers he/she receives from other prospective buyers? Until all contingencies are removed Until the seller says no Until the seller accepted one offer Until the closing
Until the closing - Even after a seller accepts an offer from a buyer and enters into a contract, the listing agent is still obligated to present all additional offers to the seller. The seller cannot enter into a contract with any new prospective buyers; however, if the current buyer withdraws from the contract (or can't close on the contract), the buyer may look to the other offers they received.