Missouri Real Estate Course
The sellers owned their home free and clear. The buyers deed of trust was for $200,000. The interest rate for the buyer's loan was 5.75%. Closing is scheduled for June 1 but the will not make a payment until August 1. What should be on the closing statement?
$958.34 debit to the buyer
A homeowner had a fixed rate straight term mortgage. The interest rate is 10.5% and the monthly payment is $875. The homeowner has an 80% LTV ratio: What is the market value of the home? A. 100,000 B. 125,000 C. 131,250 D. 73,500
B. 125,000
A building was bought for $185,000 with 10% down and a loan for the balance. If the lender charged the buyer 2 discount points how much cash would the buyer need? A. 22,200 B. 21,830 C. 18,500 D. 3,700
B. 21,830
Which of the following is ALWAYS true about liens? A. A mortgage lien affects only the parcel of real property in which the mortgagor lives B. A judgement lien affects all the debtors property C. A mechanic's lien affects all the debtors real and personal property D. A property tax lien affects all the debtors real and personal property
B. A judgement lien affects all the debtors property
A buyer was under contract with a broker, but no contract for dual agency existed. What would be their relationship? A. Buyer/broker B. Broker/client C. Broker/customer D. Just a customer
B. Broker/client
Fannie Mae A. Makes FHA loan B. Buys FHA loans C. Services FHA loans D. Insures FHA loans
B. Buys FHA loans
The government, in taking private property to build a highway, is exercising which of the following rights? A. Police power B. Eminent domain C. Escheat D. Adverse possession
B. Eminent domain
If a tenant stays over without the landlord's permission, this is called A. Estate for years B. Estate at sufferance C. Periodic tenancy D. Tenancy at will
B. Estate at sufferance
The AHC (administrative hearing commission) can do all the following EXCEPT A. Investigate a claim B. Impose a penalty C. Conduct a hearing D. Make recommendations as to punish
B. Impose a penalty
An increase in the availability of money would lead to which effects? A. Interest rates would rise B. Interest rates would drop C. Interest rates would NOT be affected due to RESPA guidelines D. Interest rates would NOT be affected due to truth in lending
B. Interest rates would drop
Dole and Carr set up a partnership to deal in real estate. What type of license would be needed?
Both partners and company would need a broker's license
Which BEST describes the sale price for a property in an option agreement?
Buyer is guaranteed a fixed price when the option is signed
What is the difference between a variance and a non conforming use?
A variance applies to construction occurring after zoning codes have been determined; a nonconforming use applies to construction that occurred before zoning codes were determined
Broker Dole has a 90 day listing on a property. During the listing, Broker Carr contacted the seller and told him that he had a buyer moving one month after the listing was to terminate and asked the seller to sign an agreement to take effect after the listing expires. This is
A violation of state real estate law
The unauthorized intrusion of a building improvement or other attachment onto a neighboring land is all the following EXCEPT A. Permissible provided it is not intentional B. An encumbrance C. An encroachment D. An item that can make the title unmarketable
A. Permissible provided it is not intentional
If your license is inactive you must A. Renew biennially to avoid cancellation of the license B. Wait 2 years before reactivating C. Take the required continuing education courses prior to reactivating D. Take the exam again to reactivate
A. Renew biennially to avoid cancellation of the license
The Truth in Lending Law provides consumers with protection by A. Requiring disclosure of finance charges and annual percentage rates B. Regulating the interest rates charged by commercial lenders C. Prohibiting kickbacks for referrals of customers by agents D. Prohibiting discrimination in evaluating loan applications
A. Requiring disclosure of finance charges and annual percentage rates
In the repayment of a mortgage loan, which type of interest is used? A. Simple B. Discount C. Compound D. Floating
A. Simple
The legal relationship between broker and seller is generally a(n) A. Special agency B. General agency C. Ostensible agency D. Universal agency
A. Special
Which is an example of ostensible agency? A. The principal broker showed by his actions that he accepted the agents actions B. The broker was able to sell any or all of an owners properties C. A broker was able to sell only one of an owners properties D. A selling broker acting as a sub agent of a listing broker
A. The principal broker showed by his actions that he accepted the agents actions
All the following would be considered evidence of marketable title EXCEPT a(n)? A. Abstract of title with a legal opinion B. Title commitment or title insurance policy C. Certificate of title by a real estate broker D. Certificate of title by a real estate attorney
C) certificate of title by a real estate broker.
A motel desk clerk gives names of persons moving into town to a salesperson friend in exchange for a small fee. Which BEST describes the situation? A. He would NOT need a license since his primary income comes from his salary B. If he had a license, he could accept referral fee from the salesperson C. He would need a license to accept compensation for making the referrals. D. He could accept compensation without a license as long as it was NOT monetary
C. He would need a license to accept compensation for making the referrals
Which of the following valuation approaches would be used on a 20 unit apartment building? A. Market data B. Cost C. Income D. Unit in place
C. Income
Chapter 339 of the Missouri Statutes is also known as A. Law of agency B. Code of ethics C. License law D. Administrative commission code
C. License law
A property has several liens against it. Upon foreclosure, which lien would take precedence? A. Lien with the largest amount of money owed B. Lien with the least amount of money owed C. Lien which was firs recorded D. Lien which had the first date on it
C. Lien which was first recorded
A seller sold a property to a buyer knowing that a third party had a claim in the property. Would the buyer receive marketable title.
C. No, because there was a cloud on the title
A purchaser was buying a farm that included a house, a barn, a pond and a tractor. What kind of mortgage should the purchaser try to obtain? A. Blanket mortgage B. Graduated mortgage C. Package mortgage D. Second mortgage
C. Package mortgage
Which of the following is usually NOT considered to be "real" property and would NOT be covered under a warranty deed? A. Chandelier B. Awnings C. Portable gas stove D. Furnace
C. Portable gas stove
Mr and Mrs Marvin live in a community property state. Which of the following would most likely be considered their community property? A. Property which is inherited by the other spouse B. Property conveyed as a gift to the other spouse C. Property purchased after they were married D. Property owned by either spouse prior to their marriage
C. Property purchased after they were married
If the gross annual income from a property is $211,000 and the total expenses for the year are $97,300, what capitalization rate was used to obtain a valuation of $758,000? A. 9.0% B. 12.8% C. 27.8% D. 15.0%
D. 15.0%
Which of the following activities would be allowed under the Missouri license law? A. A broker allowing an unlicensed secretary to take a listing B. A broker allowing an unlicensed secretary to show a listed property C. Allowing a salesperson to close a transaction without broker supervision D. Allowing a salesperson to accept earnest money with an offer on behalf of the broker
D. Allowing a salesperson to accept earnest money with an offer on behalf of the broker
a multiple listing clause in a listing: A. Involves more than one parcel of real estate B. Is the same as an open listing C. Benefits only the seller D. Benefits both the broker and seller
D. Benefits both broker and seller
Dole refused to sell his land to the local park district. He felt the price the park offered for the land was not sufficient consideration. If the park were to pursue the matter in court, what proceeding would it institute to try to force Dole to sell? A. Escheat B. Foreclosure C. Probate D. Condemnation
D. Condemnation
Which is a form of riparian right? A. Ocean site property B. Lake front property C. Loss of property due to heavy rain D. Customized property by a river
D. Customized property by a river
Which is not a purchaser of home mortgages in the secondary market? A. FNMA B. GNMA C. FHLMC D. FmHA
D. FmHA
Which of the following permits the mortgagor to obtain additional funds at a later date without writing a new mortgage? A. Budget mortgage B. Blanket mortgage C. Package mortgage D. Open end mortgage
D. Open end mortgage
An appraiser is hired to estimate the market value of an office building. In performing this task, the appraiser would be concerned with all the following factors EXCEPT A. Gross potential income from tenants B. Projected annual operating expenses C. Selection of an appropriate capitalization rate D. Principal and interest payments on outstanding loans
D. Principal and interest payments on outstanding loans
A property manager normally is charged with all the following duties except A. Renting space to tenants B. Preparing a budget C. Developing a management plan D. Repairing a tenants fixture
D. Repairing a tenants fixture
Which of the following is NOT customary duty of a property manager? A. Report to the owner all notices of building violations B. Provide upkeep and maintenance of the property C. Maintain financial records and accounts D. Secure tenants of a particular ethnic origin in accordance with the owner's wishes
D. Secure tenants of a particular ethnic origin in accordance with the owner's wishes
ABC incorporated was organized with five stockholders. How would ABC Incorporated take title of the property? A. Tenants in common B. Joint tenants C. Tenancy by the entirety D. Severalty
D. Severalty
A salesperson was asked by a friend to sell or lease his home. He must A. Sign a listing agreement and also try to find a renter B. Sign a property management agreement and also try to find a buyer C. Cannot do both at the same time D. Sign a separate listing and property management agreement
D. Sign a separate listing and property management agreement
In a gift of parcel of real estate one of the two owners was given an undivided 60% interest and the other received and undivided 40% interest. The two owners hold their interest as? A. Cooperative owners B. Joint tenants C. Community property owners D. Tenants in common
D. Tenants in common
A salesperson sold a property. In the sales contract, the buyer agreed to assume obligation to pay the commission involved. From whom should the salesperson collected the commission? A. Seller B. Buyer C. Seller and buyer, equally D. The broker
D. The broker
Which of the following mortgage allows a person to buy a property with no money down? A. Conventional guaranteed B. FHA insured C. conventional-insured D. VA-guaranteed
D. VA-guaranteed
The cost approach is used LEAST successful on which property? A. New properties B. Special purpose properties C. Income properties D. Vacant land
D. Vacant land
A purchase money mortgage appears as a
Debit to the seller
A seller sold his home. What would not be prorated?
Earnest money deposit
Carr, Lang, and Dole owned a property as tenants in common. Carr wanted to sell the property where Lang and Dole did not. What action could Carr most likely take?
File a suit to partition in order to force the sale of the property
In the event of a dispute over earnest-money the broker should?
Hold the money until all parties to the contract sign a release or release to the courts
To be in compliance with the statute of frauds, a sales contract must be?
In writing
A promissory note
Is the primary evidence of a loan
Which best describes a fixture?
It was one time personal property
Baird may soon be awarded a judgement against Carr that would result in the court ordered sale of Carr's house. As the lawsuit concerning this judgment has not yet begun what would Baird use to record notice of the suit
Liz pendens
To create a joint tenancy relationship in the ownership of real estate, there must be unity of?
Possession, interest, time and title
Ownership in severalty occurs when
Property is owned by one person/corporation
A salesperson decided to sell her house. She did not want to list the house with her brokerage company. Instead she wanted to sell her own house as a "for sale by owner" Which of the following items would the salesperson have to do?
Put in all advertising "owner-agent" including the yard sign
Value of a property was 125,000 but listed with a broker for 145,000. The seller told the broker he would take 115,000. The broker told this information to a buyer who promptly offered 117,000 that the seller accepted if the seller found out about this what could the seller do?
Refuse to pay the brokers commission as the broker violated his obligations
Broker described the boundaries of a property to a prospective buyer without informing her that the boundaries described were not exact. After purchasing the property, the new owner extended a fence within the described boundaries. A neighbor brought an injunction against the new owners. Can broker be accountable for misrepresentation?
Yes, because the broker knew the boundaries she cited could be false
A person owned her own company specializing in negotiating sales for buyers an sellers. She had incorporated her business but does not get listings or sell. Does she need a real estate license?
Yes, she and the corporation need a broker's license.
An owner builds a rec room onto her house, neighbor feels it will violate setback lines established by city building codes. Does neighbor have the right to request an injunction to stop construction
Yes, under these circumstances the neighbor may justifiable ask for an injunction
A person bought a house and wanted to bring a pet cougar to keep in the backyard. Which would most likely prevent this?
Zoning ordinances, sometimes these restrict which animal may be kept
Prorated items that represent prepaid expenses of the seller should be shown on the settlement statement as a a. credit to the seller and debit to the buyer. b. debit to the seller and credit to the buyer. c. credit to the buyer. d. debit to the seller.
credit to the seller and a debit to the buyer.
A life estate is classified as which of the following?
freehold estate
ABC Realty employs Mary as a salesperson. It doesn't require her to attend sales meetings nor spend certain amount of time doing office hours. Mary is not reimbursed for normal expenses and is responsible for paying her own income and social security taxes. Her status is best described as
independent contractor
X, a single person, and Y, a single person, want to take title to a property. They want undivided interest. If one dies, the interst will be passed to the other. Which way of taking title will best suit them?
joint tenants with right of survivorship
Which is a voluntary lien against a person's property?
mortgage lien
The MREC can appoint a legal temporary license in which case?
upon the death of the broker to complete all contracts
Buyer is assuming the seller's homeowners insurance, which the seller paid an annual premium of $156 on December 30, 1996. Closing date is April 15, 1997 the prorated amount would be a
110.50 debit to the buyer and a 110.50 credit to the seller
A seller owned two plots of land that combined for a width of 950 ft and a depth of 1800 ft. A creek divided the north plot from the south plot. What is the total acreage of the two plots? A. 38 acres B. 39.25 acres C. 2671 acres D. 4.4 acres
39.25 acres
At closing on April 20, the buyer assumed a 88,600 loan at 8% interest. His next payment is due on May 1. Which of the following is true?
393.78 debit to the seller and credit to the buyer
The sale price would show on a closing statement as
A debit to the buyer and a credit to the seller
What would be a fixture?
A fence around a pasture
An owner installs a new furnace in his home. It becomes
A fixture
Which of the following statements is true about real estate licenses is true?
A new license will be issued only upon receipt of the fee and properly completed application.
Loans for which purpose would NOT be covered under regulation Z? A. a Shoe store in a commercial shopping group B. A farm C. A mobile home D. A residential home
A. A shoe store in a commercial shopping group
The elements of value include all the following EXCEPT? A. Acquisition cost B. Utility and demand C. Demand and transferability D. Scarcity and utility
A. Acquisition cost
Licensed salespersons who sell real estate for the brokers fall into two categories. They are either: A. Employees or independent contractors B. Office staff or field workers C. Employees or consultants D. Agents or sales staff
A. Employees or independent contractors
A house built in 1920 had a garage that measured 12 x 18. If today an acceptable garage is 16 x 20 this property suffers from A. Functional obsolescence B. Economic obsolescence C. Physical obsolescence D. Area obsolescence
A. Functional obsolescence
A salesperson was holding an open house. Which of the following would NOT be considered as an inducement to buy? A. Giving away pencils magnets and balloons of minimal value to everyone. B. Giving away trips to buyers if the purchase the property C. Giving gifts to buyers of $25 or less if they purchase the property D. Giving gift certificates to buyers if they purchase the property
A. Giving away pencils magnets and balloons of minimal value to everyone
In 1988 John Smith built a 3 story apartment building. To Comply with the federal fair housing A. Handicap tenants would need to have access to at least the first floor B. He could advertise the names of the local church C. He could discriminate on race D. He would have to allow ALL tenants who applied for residency
A. Handicap tenants would need to have access to at least the first floor
In appraising a vacant lot, you would consider A. Highest and best use B. Replacement C. Contribution D. Appraisal rates
A. Highest and best use
A broker-salesperson is allowed to: A. Manage an office B. Employ salespersons C. Accept commission from other brokerage companies D. Give legal advise if it falls under the scope of the broker-salespersons expertise
A. Manage an office
In the appraisal process looking at shopping centers the social fiber of the community and distances from schools is called A. Neighborhood analysis B. Market data approach C. Site analysis D. Social analysis
A. Neighborhood analysis
Which of the following items allows a sales contract to be voided? A. One of the contract contingencies CANNOT be met B. One of the parties did NOT fully understand it C. One of the parties had NOT read the entire contract before signing D. The Broker had NOT signed it in the sellers presence
A. One of the contract contingencies CANNOT be met
An owner listed a property with an agent ant told the agent to tell buyers that the sale was needed soon since the owner needed to leave town immediately. The agent could:
Advertise- "must sell quickly!!! Owner leaving town!!!"
Seller had his home listed with a broker. During listing period, seller found his own buyer and refused to pay broker commission. Broker sued the seller and won. What type of listing was this?
An exclusive right to sell listing
A salesperson committed fraud, which of the following would BEST describes he situation?
At some future date the MREC could revoke the license
A secretary in a real estate office has passed the salesperson's exam but has not yet received a license. This person could
C. Give another salesperson in the office the address of the listed property the other salesperson wants to show
Which of the following would be a less than freehold estate A. Life estate B. Leasehold estate C. Fee simple estate D. Fee simple determinable estate
B. Leasehold estate
In an installment land contract, what type of title did the seller retain? A. Joint tenancy B. Legal C. Equitable D. Tenancy in common
B. Legal
Which of the following is an example of functional obsolescence in a commercial building? A. A broken elevator B. Small windows and a cramped office space C. Gang activity in the surrounding neighborhood D. Non-conforming use due to zoning change
B. Small windows and a cramped office space
Five acres of land were zoned residential and were surrounded by other properties that also were residential. The owner wanted to rezone the five acres so that a commercial building would be built. Which of the following would have to be obtained to allow for the change? A. No conforming use B. Spot zoning C. Variance D. Aesthetic zoning
B. Spot zoning
The type of loan payment where the borrower pays interest only during the loan period and then pays off the principal balance at the end of the loan is called a(n) A. Partially amortized loan B. Straight term loan C. Fully amortized loan D. Amortized term loan
B. Straight term loan
After the sale, the buyer found an encroachment on the property, what could the buyer do? A. Nothing, it was there when the buyer bought the property B. Sue for damages C. Lose the encroachment on the property through adverse possession D. Wait until it expires
B. Sue for damages
A customer tells an agent he will pay $150,000 on a $145,000 house, the agent should: A. Tell the customer to offer $142,500 B. Tell the seller C. Not tell the seller D. Tell the customer to expect a counteroffer
B. Tell the seller
An agent had a listing contract with a seller for $55,000. The agent then showed the home to a buyer who could go up to the $55,000 price. The agent should: A. Tell the buyer to offer $52,000 B. Tell the seller that the buyer can go up to $55,000 C. Tell the buyer that the seller will counteroffer D. Tell the seller not to accept less than $55,000
B. Tell the seller that the buyer can go up to $55,000
An agent pre-qualified a prospect to determine financial ability prior to showing them a property. When should the agent disclose her status as a licensee? A. The agent must give written disclosure prior to obtaining financial information B. The agent must give oral disclosure prior to obtaining financial information C. The agent must make full disclosure before showing a home D. Disclosure is not required unless requested by the seller
B. The agent must give oral disclosure prior to obtaining financial information
A manager of a real estate company must keep all the following records EXCEPT: A. Listing contracts B. Title insurance policies C. List of company expenses D. List of sales contracts
B. Title Insurance policies
The MREC has heard rumors that a broker is violating the law. Can the MREC investigate? A. Yes, but they are limited in the investigation to the incident that sparked the rumors B. Yes, no complaint is necessary for the MREC to investigate C. No, because there has not been any allegation of criminal conduct D. No, because there has not been a complaint filed from either a licensee or the general public
B. Yes, no complaint is necessary for the MREC to investigate
The value of a commercial development is $520,000 at a 5% return on investment. What would it be worth if the owners desired an 8% return on investment? A. 32,000 B. 416,000 C. 325,000 D. 832,000
C. 325,000
A homeowner had a loan for 90,000 and had to pay one-half point. How much would he have to pay? A. 1,800 B. 1,000 C. 450 D. 225
C. 450
A general Lien applies to? A. The owners' personal property only B. The owners real property only C. All the owners property D. Some of the owners real property
C. All the owners property
Which of the following issues FHA loans directly to the borrower A. PMI Company B. Federal Housing Agency C. An approved lending institution D. FDIC
C. An approved lending institution
Which is NOT grounds for the MREC to refuse to issue a license? A. Conviction of obtaining money under false pretenses B. Fraud on the application C. Bankruptcy D. Revocation of an earlier license.
C. Bankruptcy
A listing broker had a signed sales contract on a house. The broker then noticed a corner of the basement wall was crumbling. Which of the following should the broker inform about the wall? A. The buyer only B. The Seller only C. Both the buyer and seller D. The buyer, the seller and the mortgage company
C. Both the buyer and seller
A survey conducted on a property that is in the process of being sold will usually point out a(n)? A. Lien B. Defect in chain of title C. Encroachment D. Attachment
C. Encroachment
A visiting dignitary, who rented a place to live from May 1, 2017 to July 31, 2017 owns which of the following? A. Tenancy from period to period B. Estate at will C. Estate for years D. Tenancy at sufferance
C. Estate for years
A blanket mortgage usually contains which of the following clauses? A. Escalation B. Subordination C. Release D. Subrogation
C. Release
An existing mortgage loan can have its lien priority lowered through the use of a: A. Hypothetical agreement B. Satisfaction of mortgage C. Subordination agreement D. Reconveyance of mortgage
C. Subordination agreement
All the following clauses could be included in a mortgage EXCEPT A. Defeasance B. Alienation C. Subrogation D. Acceleration
C. Subrogation
Which is true regarding the responsibilities of the MREC and the Administrative Hearing Commission?
C. The AHC must find the licensee guilty before the MREC can revoke the license
A man has been convicted of embezzlement. Which is true? A. He could not take the pre-license examination B. He could not attend a pre-license school C. The MREC may refuse to grant him a license D. He could apply for a broker's license but not a salespersons license
C. The MREC may refuse to grant him a license
Which of the following statements BEST describes the effect on mineral rights when the land is sold A. They always pass with the sale of the land B. Mineral rights cannot be sold separately from the land C. They pass to the grantee unless specifically noted D. They belong to the federal government
C. They pass to the grantee unless specifically noted
All the following have an effect on real estate value EXCEPT A. Zoning ordinances B. Topography C. Title insurance D. Building codes
C. Title insurance
The purpose of the Truth in Lending Law is for all reasons EXCEPT A. To inform the borrower of the cost of credit before acceptance B. To help individual consumers shop more intelligently for credit C. To help individual consumers apply for commercial business loans D. To disclose finance charge, APR and repayment terms
C. To help individual consumers apply for commercial business loans
A buyer and seller closed on the sale of a brick bungalow at 1234 Main St on May 30th. General real estate taxes on the property are $1200 annually. How do the taxes affect the buyer.
Credit the buyer $500
Earnest money deposit would be a
Credit to the buyer
When a company furnishes materials for the construction of a house and is subsequently not paid, it may file a(n) A) deficiency judgment. B) lis pendens. C) estoppel certificate. D) mechanic's lien.
D) mechanic's lien.
A broker had so many lawsuits that he decided to change the name of the branch offices to avoid further problems. Can he do this?
No all branch offices must have the same name as the parent office
A broker produces a supposedly ready willing and able buyer. At closing the seller is unable to provide marketable title to the property and the buyer cannot come up with eh financing to purchase the home. Is the broker due a commission?
No because he did not produce a ready, willing and able buyer
Would an appraiser adjust for area when using comparable located in the same area as the subject property
No, because area differences are already reflected in the comparables
If the seller asked the broker what race the buyers were, would the broker have violated fiduciary relationship by refusing to answer?
No, because race, color, religion, national origin and sex are not material
A seller is selling his only house. He will neither advertise the property , nor use a broker's services. Can the seller legally refuse to sell the property to a member of a racial minority?
No, because such a discriminatory action is prohibited.
Seller and broker had an exclusive right to sell agreement. Listing expired. A month later, seller sold the property to a buyer who the broker had not made contact. Would broker be due a commission?
No, because the broker did not produce a ready, willing, and able buyer within the listing period.
A 16 year old bought a piece of property. Seller found out and wanted to void the deal. Could he do this?
No, only the buyer could void the contract
A Salesperson answered a "for-sale-by-owner" ad in the news paper. The salesperson verbally identified himself as a licensee. If the salesperson purchased the property, is this adequate disclosure?
No, the disclosure must be in writing
What type of agency is created by the actions of the parties rather than by an expressed agreement?
Ostensible agency
A broker received earnest money from the buyer. The offer was not accepted by the seller, however, the agent had already deposited the earnest money. What should be done?
Return the earnest money to the buyer immediately
Which of the following would NOT be a legal way for a salesperson to advertise a piece of listed property?
Run a classified ad in their own name advertising the property for sale
Mary rents an apartment under a 2 year, written lease from Sarah. Three months later, Mary is transferred to another country for a period of eight months. During this period Mary leases her interest in the apartment to Brenda. Brenda mails her rent to Mary, who in turn, mails her rent payment to Sarah. In this situation, Brenda has a
Sublease
After listing a home with a broker, a seller told the broker NOT to disclose the major structural damanges in the house. The broker should
Tell the buyer of the defect prior to the writing for the contract
Elective credits for continuing education could be granted for a course
That deal with issues that protect the consumer in real estate transactions
Broker Tom and Broker Susan got into a dispute over commission due to procuring cause. Susan filed a complaint with the MREC to get it settled. Which is true?
The MREC will not enter into any dispute over commissions between licensees
Seller Falk lists home for 40,000 and the broker tells the prospective buyer to submit a low offer because the seller is desperate. The buyer offers 38,000 and the seller accepts. In this situation
The broker violated the agency relationship
A complaint had been filed against a salesperson. However the salesperson was in the process of switching to another broker. Which of the following is true regarding this situation?
The complainant would get a written record of the salespersons answer to the complaint
Falk had a property for sale for $129,000. Murphy made an offer for $123,000. Falk made a counteroffer of 127,000. Which of the following statements is NOT true regarding this situation?
The counteroffer would be binding on Murphy
An owner's equity in property represents
The differences between the property's market value and the amount owed on it by the owner
The owner of an apartment building has just signed a management contract with a real estate firm. In this situation has an agency been formed?
Yes, because an agency is formed whenever one party delegates to another, the right to act on their behalf in certain business transaction.
A person rents a lakeside cabin to a young couple for sun-tanning. Every day the lessor comes back to the beach area that he leased, and sells popcorn and hotdogs to people from the public beach nearby. Can the sun-tanners break the lease?
Yes, because he destroyed their peaceable possession, thus warranting constructive eviction
The Rose family owns a home in a semi rural area that is about five years old. They recently announced plans for a new regional airport that will place their home directly in line with a main runway, about one mile from its end. If the airport is constructed will this diminish the value of the Rose home?
Yes, because of external obsolescence