national exam 4 part 1

A buyer with a 20-year, $419,000 loan at a 4.25% interest rate has a monthly principal and interest payment totaling $2,594.59. If $1,483.95 is interest, how much is applied toward principal for that payment?

$1,110.64

A seller received $800,000 for a 5.5 acre rectangular parcel alongside a road frontage. The property is 400 feet deep. What was the price per front foot of the property?

$1,335.67

Alexandra sells her house to Clark for $178,000. They negotiate to split the transfer tax, which has a rate of $0.33 per $100. What do they each pay to cover the transfer tax?

$293.70

For conventional loans in which the loan-to-value ratio is in excess of a certain percentage, lenders generally require private mortgage insurance. What's this percentage?

80%

What's the penalty for violating federal do not call rules?

A fine of more than $40,000 for each violation

Which statement best describes an adjustable rate mortgage?

A loan with a rate that fluctuates based on the economic index to which it is tied

When using the MARIA acronym to test whether an item is a fixture, what do the two As stand for?

Adaptability of item to land's use and agreement of the parties

The town planning and zoning board is considering some new zoning regulations to ensure that one of the neighborhoods maintains its designation on the National Register of Historic Places. What type of zoning are they likely to enact?

Aesthetic zoning

Which of these is NOT a likely features of a bridge loan?

Amortized loan paid back over a period of no more than five years

Sherman, who owns property in a life estate, neglects the property, significantly diminishing its value. This is called ______.

An act of waste

How might the lengthy purchase process for a short sale or foreclosure impact a buyer's financing?

An existing interest rate lock may expire before the transaction is ready to close.

Why is a foreclosure more likely to have title issues than a non-foreclosure?

Borrowers who can't afford loan payments may have taken out other loans against the property.

Your buyer client, Percival, was pre-approved for the exact amount he needed to buy the home of his dreams, and he made an offer that was accepted by the seller. What's his next step?

Complete a loan application.

Sophie received title to her grandmother's farm last spring. For almost 100 years, Sophie's family has kept cows and goats on the 120-acre property. The deed came with a caveat: Sophie is never to raise pigs on the farm. If she does, then the property is transferred to her brother. What did Sophie's grandmother create?

Condition

Alice owned a double lot on the waterfront. She sold the lot to Ronesha and included a deed restriction prohibiting construction of any building taller than one story. Ronesha wants a three-story house. What should she do?

Conform to the deed restriction.

Shemar owns a starter home a few miles outside of the city center, and he wants to deed it to his grandson, Tyler. According to the paperwork Shemar had drawn up, Tyler will own the property as long as he continues to pay the property taxes on time. After the second missed property tax payment, ownership would revert to Shemar. What did Shemar place on the deed?

Deed condition

Leonard is offered a loan at 5.75%. Because he plans to be in his home for several years, he chooses to pay points up front to have the rate reduced to 5.25%. What's this an example of?

Discount points

What must sellers provide prospective buyers of homes built prior to 1978, in addition to the federally required disclosure form?

EPA lead safety pamphlet

Your buyer clients, the Thompsons, told you about a problem they ran into with the lender that handled their mortgage. The Thompsons, who are African American, were given less favorable loan terms than a white couple they know who used the same lender. You know the Thompsons have excellent credit. Which act should you make them aware of?

Equal Credit Opportunity Act

What type of leasehold is characterized by possession of a property without the express permission of the property owner, such as a situation in which a tenant continues to occupy an apartment after the lease has terminated?

Estate at sufferance

Which of the following is the most common type of buyer representation agreement?

Exclusive right-to-represent agreement

Leases can end in several key ways. Mutual agreement and eviction are two. What is another way that a lease can terminate?

Expiration

Nathan was painting the siding on his home when he was interrupted by a neighbor who informed him that he had to have the paint color approved before using it. Nathan lives in a neighborhood with ________.

HOA regulations

Title II of The Americans with Disabilities Act of 1990 prohibits discrimination based on disability in programs, services, and activities provided or made available by public entities. Which agency enforces Title II when it relates to state and local public housing, housing assistance, and housing referrals?

HUD

What economic principle is related to a property's most profitable use that is both legal and economically feasible?

Highest and best use

Christy found a property that was For Sale by Owner and made an offer. The seller accepted Christy's offer, but neither of them knew how to proceed. Licensee Zelda helped Christy complete the necessary purchase documents and walked her through the process. What kind of agency exists?

Implied agency

Lily is considering signing a buyer representation agreement with you, but she's unconvinced. "What's in it for me?" she asks. What's one major benefit to her when she signs the buyer representation agreement?

It means you're representing her and not the seller.

Which statement about lead-related health problems is true?

Lead may cause behavioral problems, learning disabilities, seizures, and, in extreme cases, death.

When the lender gathers all kinds of information about the borrower's assets, debts, income, employment history, and pulls their credit report, the buyer is ___________________.

Making an application for a loan

Brynn's listing agent told potential buyers that all offers on Brynn's property would be considered at 5 p.m. on May 3. By that date and time, there were four offers. The persons making these offers are the ______.

Offerors

Angelo's aging mother needs a place to live out her remaining years. Angelo conveys a home to her, but only for her lifetime. This is an example of what type of life estate?

Ordinary

Which of the following statements is true about conventional loans?

Originators usually package and sell the loans on the secondary market.

Jacob is a developer who purchased 78 acres and had it subdivided into half-acre lots. He decided to install sewer and underground electric for the entire subdivision, because he thinks that he will easily recoup his initial infrastructure investment. This is an example of which economic characteristic of real property?

Permanence of investment

To make valid computations of adjustments for the sales comparison approach to value, elements of comparison must be applied in a specific order. Which one of these elements is applied last?

Physical characteristics

Which of the following is an example of the duty of loyalty?

Putting the client's interest first

Agricultural fixtures, even if they are installed by a tenant, are _______.

Real property

Water buildup, ice damming, and a fascia damaged by moisture are common ______ issues.

Roof

Frank owns a property on which there is walkway to the beach shared by his neighbors on either side. What is Frank's property?

Servient estate

Evan bought into a housing cooperative that's focused on cultural exchange. Each month, the co-op residents have dinner meetings and share food and information about the culture of their respective regions. When Evan made his purchase, he received a proprietary lease for his unit. What else did he receive?

Shares in the cooperative corporation

Which economic principle says that a property's value is determined by what it would cost to purchase a similar property?

Substitution

Marla's excited about closing on a cute lakefront cottage. But when she reads the report from the home inspection, she learns that the chimney leaks and that there is water damage in several places. This wasn't on any of the seller's disclosures. Which of these is the best option for Marla?

Terminate the agreement and ask for a refund of her earnest money.

Two competing firms are found guilty of illegal market allocation. Which of the following scenarios must be true?

The two firms have agreed not to compete in one another's markets.

Sophia and Antonio are expecting twins. They want to sell their old house and buy a larger home using a conventional loan. In order to be sure they'll get the PMI waived, what will they need to have?

They should have a loan-to-value ratio of 80% or less.

Which of the following is true about tie-in arrangements?

They're an antitrust violation.

In marketing her new listing, Alice asks the photographer to "touch-up" the photos of the house so that the old roof and siding look as though they are new. Which statement about this is true?

This is deceptive advertising for which both Alice and her broker may be disciplined.

Your client, Ray, is worried about title issues that may arise after closing. Remind Ray of his secret protection: ______.

Title insurance

Managing broker Todd is often extremely busy supervising his brokerage and training new licensees. He doesn't have time for his own clients, so he frequently sends his wife Cindy to meet with clients to sign transactional paperwork. Cindy doesn't hold a real estate license but she does have a power of attorney (POA) for Todd. All fees are paid to Todd. What is the issue with Todd doing this?

Todd is prohibited from allowing anyone to use his principal broker's license in order to perform real estate activities.

Sylvan, the seller, and Eric, the buyer, have signed an option agreement, which is an offer to purchase a specific piece of real estate without the obligation to buy it. Until Eric exercises his option to buy, only Sylvan is bound by the option agreement; he may not sell the property to anyone else during the option period. What type of contract is this?

Unilateral

Marvin knows that three-bedroom properties with two bathrooms sell quickest in his market. In an ad for a new listing, he wrote, "Bonus room could easily be a third bedroom", even though he knows from experience that this isn't true because the room is too small, has no egress and no heat source, and can only be accessed by walking through a bathroom. Is Marvin guilty of misrepresentation?

Yes, because he knew there would be major issues converting that room to a bedroom.

Which of these is an example of legal single license dual agency?

You represent both the buyer and seller in a single transaction with appropriate consent from both.