National Exam PSI (Practice)

In the sales comparison approach, using comparables that are five and 15 years old when appraising a subject that is 10 years old is an example of what? Bracketing Bridging Substituting Surrounding

Bracketing

When considering loan risk, which two items will lenders consider in equal measure? Borrower and property Credit and employment Debt and income Loan and value

Borrower and property

When Gillian looked at the legal description of the property she was interested in purchasing, she read the following: "Beginning at the corner of State Route 61 and Hallowell Road, north for 314 feet, then southwest for 193 feet." In this description, what does "Beginning at the corner of State Route 61 and Hallowell Road" represent? A benchmark Bounds Metes Monuments

Bounds

Sandra retired from a career in the Navy and is ready to buy her first home, a small bungalow in a quiet neighborhood, for $169,900. Her military service gives her the benefit of Veterans Affairs (VA) loan. What's her required down payment? $0 $1,699 $2,548.50 $500

$0

A buyer has a 30-year, $400,000 loan with a 7% interest rate. How much of the first month's mortgage payment is interest? $2,333.33 $28,000 $3,100 $933.33

$2,333.33

Joaquin sold his house for $327,600. He bought it several years ago for $139,900 with a $100,000 loan. The loan balance when he sold it was $73,400. What was Joaquin's equity? $114,300 $187,700 $214,300 $254,200

$254,200

Lenore makes a 95% offer on a townhouse that's listed at $285,000 and includes an earnest money deposit for 10% of her offer, which the seller accepts. She brings to closing a cashier's check for $35,025 comprising the balance of her 20% down payment and closing costs. What's the amount of her total down payment? $35,025 $54,150 $57,000 $62,100

$54,150

If you sell a home for $143,000, and your commission rate is 5%, what is your commission on the sale of this home? $7,150 $7,500 $8,580 $9,440

$7,150

Gabe's home has an assessed value of $172,000, and his tax rate is .55%. What are the annual taxes? $1,125 $1,265 $935 $946

$946

Alan and Kate want to build a 5,000-square-foot ranch-style home on two acres of land they just bought. Once the house is built, how many acres of undeveloped land will remain? 0.88 acres 0.89 acres 1.86 acres 1.89 acres

1.89 acres

As part of its penalty for violating antitrust law, Homes4Cheap, Inc. has been ordered to undergo court-ordered supervision. How long can this supervision last? 10 years One month One week One year

10 years

Which of the following statements about the promissory note is true? A promissory note is a negotiable instrument and can be transferred to a secondary holder who has the right to enforce the note's terms. A promissory note isn't a legal document. A promissory note isn't transferable, so it must be held by the original lender until paid in full. A promissory note serves as collateral for a mortgage loan.

A promissory note is a negotiable instrument and can be transferred to a secondary holder who has the right to enforce the note's terms.

Which of the following is a way in which property taxes could impact your clients? A sale in the area may prompt a reassessment, impacting new buyers. Neighbors may be jealous about favorable tax rates. Tax abatements could harm buyers financially. Tax refunds are not possible if property tax deductions are taken.

A sale in the area may prompt a reassessment, impacting new buyers.

After getting into a fender bender, Parker had to buy a new car. To make the down payment on the car, he had to skip a couple of his mortgage payments. He received a notice from his lender indicating the remaining amount of his loan is due immediately and in full. What clause in his mortgage stipulates this? Acceleration Alienation Defeasance Due-on-sale

Acceleration

Rennie owns a 240-foot by 130-foot lot. How do you calculate the perimeter? Add the length and width and divide by two. Add two times the length to two times the width. Multiply 240 by 130. Multiply 240 by 130, then multiply by two.

Add two times the length to two times the width.

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 Amendment Annotation Appendix

Addendum

What's the primary difference between an ordinary and a pur autre vie life estate? An ordinary life estate ends when the grantor dies; a pur autre vie life estate ends when the estate holder dies. An ordinary life estate ends within a specified period of time; a pur autre vie life estate ends when the estate holder dies. An ordinary life estate ends with the death of the estate holder; a pur autre vie life estate ends with the death of someone other than the life estate holder. A pur autre vie life estate ends within a specified time period; an ordinary life estate ends when someone other than the estate holder dies.

An ordinary life estate ends with the death of the estate holder; a pur autre vie life estate ends with the death of someone other than the life estate holder.

Which economic principle states that the value of property today is impacted by the current value of the total expected future benefits? Anticipation Conformity Highest and best use Progression

Anticipation

Will was sued for damages related to a car accident in which he was involved last year. As part of the proceedings, the court placed a lien against his primary residence. What type of lien is this? Attachment General Mechanic's Voluntary

Attachment

Sue and Jim are hoping to expand their family, which means moving to a larger home. They're closing on their new home soon, but haven't yet sold their current one. Which type of loan will help them afford both homes for a short period of time? Bridge Lease with option to buy Purchase-money mortgage Wraparound loan

Bridge

The elevator at Morningside Apartments is broken. Who is responsible for making sure it's repaired? The city The landlord The previous building owner The tenant

The landlord

Why did the implementation of TRID impact closing dates? Buyers must now be given at least seven days to review the Closing Disclosure. Certain financing changes may trigger a new three-day waiting period. Lenders must give buyers five working days to review the Closing Disclosure. Once the Closing Disclosure is issued, the loan underwriter must perform a final review and approval.

Certain financing changes may trigger a new three-day waiting period.

In the sales comparison approach, which of these are selected and evaluated both quantitatively and qualitatively against the subject property? Alternatives Comparables Conformables Substitutions

Comparables

Margaret has received her Closing Disclosure from the lender. To best protect her interests, what should she do with it? Compare it to the Loan Estimate. File it with her mortgage papers. Take it to the closing. Use the information to compare loan costs with those of other lenders.

Compare it to the Loan Estimate.

Many of an agent's fiduciary duties to the client end upon termination of an agency agreement. Which fiduciary duty never ends? Confidentiality Loyalty Obedience Reasonable skill and care

Confidentiality

Don and Becky realized too late that the contract they signed for the sale of their home didn't include any language about a rent-back if the home they're building isn't ready in time. What can their listing agent do? Create a contract addendum with the required language. Create a contract amendment with the required language. Create a counter-offer to present to the buyers. Terminate the contract on Becky and Don's behalf.

Create a contract amendment with the required language.

Which of the following is an example of commingling? Mixing earnest money with personal funds Mixing two earnest money deposits Paying licensee bonuses from forfeited escrow deposits Commingling occurs when escrow funds, such as earnest money, are mixed with personal funds.

Mixing earnest money with personal funds

Which factor influences property value and addresses questions such as, "What's the market like?" and "Are there more buyers than sellers, or vice versa?" Demand Scarcity Transferability Utility

Demand

Mario lives in a state that requires an abstract of title for property conveyance. The chain of title is broken approximately 50 years prior to the current date. Which of these properly identifies the status of Mario's title? As long as the chain of title is traceable for at least the past 30 years, Mario will have marketable title. Depending on his state's laws, Mario may have marketable title. Mario will have to perform his own research to find information necessary for repairing the broken link. Unless the chain of title can be tracked back to its beginning, Mario won't have marketable title.

Depending on his state's laws, Mario may have marketable title.

Informing parties of material facts related to a transaction describes the duty of ______. Accounting Disclosure Loyalty Reasonable skill and care

Disclosure

Which fiduciary duty is missing: loyalty, reasonable skill and care, obedience, confidentiality, accounting, and ______? Disclosure Disobedience Lawfulness Skill

Disclosure

Seth is a licensee representing seller Dora. Which of these items is Seth required to disclose to prospective buyers about the property? Dora doesn't use the back door because the steps leading to the yard are rotted. Dora keeps sunflowers planted in the back yard because the local birds can eat the seeds. The neighborhood kids like to ride their bikes in Dora's driveway. The pink geraniums in the window boxes are fake.

Dora doesn't use the back door because the steps leading to the yard are rotted.

Which of the following could indicate a problem with the chimney flue or ventilation? Damage around the fascia Doors that won't open Drafts near the fireplace Holes in the soffit

Drafts near the fireplace

Which of the following properties requires a lead disclosure? Commercial building built in 1960 Duplex built in 1959 Duplex built in 1979 Single-family home built in 1999

Duplex built in 1959

Smalltown is building a new interstate exchange to facilitate access to shopping and restaurants. In order to do so, it purchased two homes and tore them down so the ramps to and from the interstate could be constructed. What principal allowed Smalltown to do this? Abandonment Doctrine of laches Eminent domain Escheat

Eminent domain

The doctrine of laches refers to the _______ of restrictive covenants/deed restrictions. Creation Enforcement History Types

Enforcement

Which statement about lead-related health problems is true? Lead can be traced to senioritis. Lead causes blindness upon contact with the eyes. Lead is associated with coronary heart disease. Lead may cause behavioral problems, learning disabilities, seizures, and, in extreme cases, death.

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

Which of these tasks must a licensee perform for buyer clients? Advise the buyer on how to get the seller to come down on the asking price. Ensure that the buyer receives copies of all signed paperwork. Explain to the buyer how to deposit the earnest money into the seller's personal checking account. Explain to the buyer that there's really no need to review transaction documents because they're all standard.

Ensure that the buyer receives copies of all signed paperwork.

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 Estate at will Freehold estate Periodic estate Estate at sufferance is so called because the landlord is suffering the tenant's presence without the landlord's permission.

Estate at sufferance

The Arbor Heights community passed a zoning ordinance that requires group homes designated for disabled citizens to be situated outside of city limits. This is a violation of the ______. City Charter Act Fair Housing Act Municipality Zoning Act Zoning Disability Act

Fair Housing Act

Local authorities lack police power over which of the following? Budgeting Federal government construction projects Subdivision development Zoning

Federal government construction projects

Brenda represents Tina in a real estate transaction. Brenda therefore owes Tina ______ duties, such as confidentiality, obedience, and reasonable skill and care. Consumer Customer Fiduciary Universal

Fiduciary

While working with a buyer client, Jeffrey filled in the blanks on the purchase agreement, drafted an early occupancy addendum, and assured his buyer that she was "fully protected" and would get her earnest money back if the sale didn't close. He encouraged her to hire an attorney to review the contract and addendum, and then invoiced her for a nominal $15 fee to prepare transaction documents. Which of the following tasks was Jeffrey legally permitted to do? Charging a fee for preparing legal documents Drafting the early occupancy addendum Filling in the contract blanks Interpreting the contract provisions regarding the buyer's full protection and getting her earnest money returned

Filling in the contract blanks

Ginnie's Aunt Becca listed the old family mansion with Ginnie. Ginnie put it on the market for Becca, but then she and her cousins talked with Becca and decided they wanted to keep the property in the family. What's the best way to terminate the agreement? Becca should revoke the listing. Ginnie and Becca can mutually agree to terminate the agreement. Ginnie should renounce the listing. They should wait for the listing to expire.

Ginnie and Becca can mutually agree to terminate the agreement.

You need to perform a sales comparison for your clients. Comparable A's adjusted sales price is $277,000. Comparable B's adjusted sales price is $255,000. How might you use this data to determine a list price range for the clients' home? Find the average of the adjusted sales prices of Comparable A and Comparable B. Give more weight to the list price on Comparable A, because it's lower. Give more weight to the list price on Comparable B, because the subject property will likely sell more quickly at this higher price. Give more weight to the list price on the comparable that's most similar to the property.

Give more weight to the list price on the comparable that's most similar to the property.

Two essential elements of a deed are the ______. Grantee's signature and the habendum clause Grantor's signature and conveyance clause Grantor's signature and grantee's signature Habendum clause and the habeus corpus clause Only the grantor's signature is required, not the grantee's. The habendum clause is required only if the deed is conveying less than a fee simple estate.

Grantor's signature and conveyance clause

Several brokerages in a certain area agree to stop running advertisements in a local publication. What type of antitrust violation is this? Group boycotting Market allocation Price fixing Tie-in arrangement

Group boycotting

Marion gave her granddaughter Sheila the deed to a brand new home, on the condition that Sheila complete her PhD in astronautics. When Sheila dropped out of school and got a job as a greeter at a big box store instead, Marion ______ to regain ownership of the property. Had no recourse Had to purchase the property from Sheila Had to take legal action Wasn't required to take any action

Had to take legal action

Greg and Neha are interested in buying a ranch-style home in a suburban family neighborhood. The sellers have only lived there for 19 months, so they have no information about the addition that was put on 20 or 30 years ago. Why does it matter whether the owners at the time got permits to do the addition? If the addition WAS NOT permitted, it may need to be inspected to ensure it meets code and perhaps even be taken down. If the addition WAS NOT permitted, the lender will require additional title insurance. If the addition WAS permitted, then the owners can use it as a rental suite. If the addition WAS permitted, the sellers can raise the listing price.

If the addition WAS NOT permitted, it may need to be inspected to ensure it meets code and perhaps even be taken down.

Larry is assisting a buyer who's making an offer on his client's listing. If Larry is too helpful to the buyer, what might occur? A potential bonus from the buyer Implied agency and undisclosed dual agency Implied friendship Undisclosed single agency

Implied agency and undisclosed dual agency

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.

Mortgage, homeowners, and flood ______ may be included the mortgage payment. Addenda Fees Insurance Waivers

Insurance

Your home inspector Mason found some discoloration in the attic and near the windows on the second floor. Why does he think this may be a concern? Dark stains in the attic could mean plumbing problems. It could be a sign of fire damage. It means that the homeowners haven't insulated well. It's indicative of insect activity.

It could be a sign of fire damage.

Which offer would be the most appealing to a seller? A full-price offer waiving inspection, conventional financing with 20% down, closing in 45 days. An all-cash offer $15,000 below list price, closing in two weeks. An offer $10,000 over list price, contingent upon appraisal and inspection, conventional financing with 20% down, closing in 30 days. It depends on the seller's needs and motivations.

It depends on the seller's needs and motivations.

How does title insurance affect the lender? It protects the lender against any future default in the buyer's payment. It protects the lender against unexpected increases in loan costs. It protects the lender from loss due to defective titles. It protects the lender from the property value decreasing due to market fluctuations or property damage.

It protects the lender from loss due to defective titles.

Virginia is finally living her dream—she bought a coffeehouse in a charming college town. After she closed on it, her attorney sat down with her to discuss various business licensing and legal requirements she'll have to meet. Virginia was surprised to learn that her five-table establishment is affected by the Americans with Disabilities Act. What must be true about the coffeehouse? It includes at least 400 square feet of public space. It's a commercial enterprise that's open to the public. It sits in a city center. It was built after 1978.

It's a commercial enterprise that's open to the public.

Todd and Tory sign a contract agreeing to falsify the cost of roofing repairs on Todd's house so Tory can collect more insurance money. Why is this contract invalid? It's not for a legal purpose. The parties are incompetent. There's no consideration. There's no mutual consent.

It's not for a legal purpose.

Leo's client is looking for a property with at least 2,500 finished square feet. Leo finds a 2,200-square-foot property with all the other features the client is looking for, and purposely doesn't mention the square footage to his client. His client agrees to look at the property, falls in love with it, and wants to make an offer, but does not realize it doesn't contain his desired square footage. Which of these statements accurately represents Leo's level of misrepresentation in this situation? Because Leo didn't state the square footage, he's not guilty of misrepresentation. It's the buyer's responsibility to ensure that the property has the proper square footage, so Leo's in the clear. Leo accidentally omitted a material fact. This is considered unintentional misrepresentation. Leo knew about the square footage and intentionally didn't mention it. He's guilty of intentional misrepresentation.

Leo knew about the square footage and intentionally didn't mention it. He's guilty of intentional misrepresentation.

Steven owns 114 acres of wooded, rural land. The abundance of wildlife on his property means that his friends are always asking for permission to hunt on it during various game seasons. If Steven gives a friend permission to hunt on his land, it can be said that he has given his friend a ______. Covenant Easement Grant License

License

Marcus, a listing agent, told a potential buyer that his seller client's property had no flooding issues, though the seller had mentioned water in the basement a few years back when there was a particularly heavy rainy season. Which of these statements is true? Marcus committed intentional misrepresentation because he knew his statement was false. Marcus committed unintentional misrepresentation. Marcus didn't commit misrepresentation, because the property current has no flooding issues. Marcus is guilty of puffery.

Marcus committed intentional misrepresentation because he knew his statement was false.

Even though the laws are different in every state, sellers must typically disclose ______, information that would be important to a person in deciding to purchase a home. Buyer evidence Case law Material facts Physical matter

Material facts

Which of these scenarios is a violation of federal fair housing laws? Janae refuses to rent an apartment to a Greek couple whose credit history is sketchy. Maureen, a buyer, selects a house in a neighborhood because of its demographic makeup. Miguel follows his client's request to only show him properties where the neighborhood is mainly Hispanic. Wanting to be closer to her Cuban community, Miranda asks her agent to show her properties in the West Palms area, so he focuses his search on that geographic area. Buyers are free to select properties based on demographics as long as licensees don't use demographics as a basis for showing properties. Landlords may refuse to rent to individuals on the basis of creditworthiness.

Miguel follows his client's request to only show him properties where the neighborhood is mainly Hispanic.

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

Leases may be terminated by expiration, eviction, or ______. Death Extermination Mutual agreement Relocation

Mutual agreement

Robert is the general contractor for a home being constructed in a new development. The foundation has been poured, and he's working with the homeowners to make some decisions that weren't identified in the blueprints he's working from. Which of the following details are guided by local building codes? Material used for shingles Number and type of electrical breakers Number and type of windows per square foot Placement of gas range in the kitchen

Number and type of electrical breakers

Following all of the client's lawful instructions describes which fiduciary duty? Disclosure Loyalty Obedience Reasonable skill and care

Obedience

Shari's clients want her to post that there are "no showings on weekends" on the MLS. Shari knows that will significantly cut down on their market exposure. Her duty of reasonable skill and care is in conflict with her duty of ______. Accounting Disclosure Loyalty Obedience

Obedience

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 _______. Examiners Executors Offerees Offerors

Offerors

The parcel of land Monty just bought is 43,891 square feet. Approximately how many acres does Monty have? Four One Three Two

One

Tyne entered a contract to buy Fred's home. Per the terms of the contract, Tyne agreed to pay $20,000 for the earnest money deposit by this coming Wednesday and have the property inspected within seven days. She submitted the earnest money deposit on time and had the property inspected within five days. What action does this scenario exemplify? A purposeful voiding of the contract Buyer misrepresentation Partial performance of this part of the contract Performance of this part of the contract

Performance of this part of the contract

Who is responsible for ensuring accessibility requirements for a commercial property are met? Property inspectors only Property managers only Property owners and property managers Property owners only

Property owners and property managers

For farmers and others who live in rural communities, a ______ loan may be available. One benefit of these loans is the option for a longer payback period. Farm-to-closing-table Fresh farmers Organic producers Rural development

Rural development

Chris is in the process of purchasing a property with 20 acres of farmland in a rural area of the state. Assuming his income meets the criteria of the program, what type of loan may Chris find the most desirable? Growing equity mortgage Rural development loan VA-guaranteed loan Wrap-around mortgage

Rural development loan

Which of these is NOT an example of a group boycott? Acme Realty offers discounted services. Berringer Realty and Hawthorne Real Estate Group decide not to show any of Acme's listings and to prohibit showings to Acme buyers so they can drive Acme out of business. Deb, a licensee, is unhappy with the marketing materials a local company produced. She shares her concerns with Irving, a colleague, and they agree to avoid doing business with this company—and to share the news with other colleagues. Sean and the associated brokers in his firm agree to purchase their marketing materials from a single supplier so they get a quantity discount. Several brokerages in a certain area agree to stop running advertisements in a local publication. A brokerage firm can elect to do all of its business for supplies, advertising, etc., with a single vendor. This isn't a group boycott because the firm isn't agreeing to not do business with any other specific business.

Sean and the associated brokers in his firm agree to purchase their marketing materials from a single supplier so they get a quantity discount.

Sheila is unable to use her designated timeshare week this year. What will happen? She can exchange the week for another. She won't have to pay the annual maintenance fee this year. The owners association will reimburse her for the week. There is nothing she can do if she can't use the week.

She can exchange the week for another.

Carlotta has an available unit, but has refused to show it to several applicants. These applicants are all single women with children; the applicants who are shown the apartment are all couples without children. In what way is the landlord violating fair housing law? She is advertising the unit in a restrictive way that discriminates against those with children. She is discriminating against people based on sex and familial status by refusing to show available housing. She is discriminating by offering special terms for rental based on a protected class status. She is sexually harassing potential tenants.

She is discriminating against people based on sex and familial status by refusing to show available housing.

What is the term for sites identified by the EPA under the Comprehensive Environmental Response, Compensation, and Liability Act? CERCLA site Hazardous Environment Community Clean-up (HECC) site Superfund site Waste Remediation Environmental Need (WREN) site

Superfund site

Marge works for Morgan Realty as a transaction coordinator. Which of these factors may cause the IRS to classify Marge as an employee? Marge is required to belong to the local REALTORS® association. Marge works the hours she chooses. The firm doesn't provide any benefits to Marge. The firm pays Marge a salary.

The firm pays Marge a salary.

Which of these regarding the impact of the Brownfields Law is true? The Mesmer family has discovered petroleum contamination on a site they just purchased. The Brownfields Law holds both them and the previous owner jointly responsible for cleanup. The Rodriguez family purchased a property that was formerly a commercial dry cleaner. They plan to convert the property to a residential dwelling. The Brownfields Law requires that the Rodriguez's be held accountable for any contamination on the property. The Smiths have discovered chemical contamination on the property deed to them by their late parents. The Brownfields Law may provide funds to help them clean up the site. The Tennyson's purchased a property that they later discovered was contaminated with methamphetamine waste. The Brownfields Law limits their liability since they were unaware of the contamination when they purchased the property.

The Smiths have discovered chemical contamination on the property deed to them by their late parents. The Brownfields Law may provide funds to help them clean up the site.

A "homes for sale" magazine contains the following ad: "One-bedroom condo. Corner unit with beautiful ocean views. Financing available, 5.25% APR." Which of these statements is true? The ad is in compliance with TILA because condominiums aren't covered under Regulation Z. The ad is in compliance with TILA because providing the APR doesn't trigger the required disclosure of all credit terms. The ad is not in compliance because TILA requires all financing terms to be stated if the APR is stated. The ad is not in compliance with TILA because it mentions financing without including all of the terms of the financing. The APR can be included in an ad without requiring disclosure of all credit terms. APR figures allow consumers to make an informed comparison between loans, which is TILA's goal.

The ad is in compliance with TILA because providing the APR doesn't trigger the required disclosure of all credit terms.

Select the statement that correctly exemplifies the covenant term. The covenant against encumbrances is the grantor's guarantee that he or she owns the property being conveyed. The covenant for further assurances assures the grantee that there are no undisclosed encumbrances on the property. The covenant of quiet enjoyment promises that the grantee won't be disturbed by a title defect the grantor passes on. The covenant of warranty promises that the grantor has the capacity to convey title.

The covenant of quiet enjoyment promises that the grantee won't be disturbed by a title defect the grantor passes on.

John's home is up for sale. He originally bought it five years ago for $300,000. Its current value is $350,000. His real estate agent notified him that a buyer just made an offer on his home for $365,000, which is the price other similar homes in the neighborhood are selling for and John accepts. What does the price of $365,000 represent? The appraised value The assessed value The investment value The market value

The market value

The Shores are in the process of buying a beautiful 3,000-square-foot home from the Bishops. They've completed all the required paperwork on their loan application. Mary's analyzing the package to determine their ability to repay the loan. She examines the property's value, the property type, and the loan-to-value ratio, among other things. Her recommendation is that the Shores' loan application be approved. What is Mary's role? Member of the loan committee The seller The seller's real estate agent The underwriter

The underwriter

Why would buyers want to know whether a property is currently experiencing a tax abatement? Buyers don't want to know whether a property is experiencing a tax abatement. The current tax amount will be indicative of future years' taxes. Their taxes are likely to increase when the abatement period ends. Their taxes will go down when the abatement period ends.

Their taxes are likely to increase when the abatement period ends.

What special concern do foreclosed properties often present? Buying the property at a discount may have tax implications. The homeowners may or may not have property insurance. The property sale may be subject to additional fees that will be passed to the new buyer. There could be hidden title issues.

There could be hidden title issues.

Which of the following statements is true about government loans? They originate in the secondary market. They're insured or guaranteed by a government agency. They're serviced by the U.S. Department of the Treasury. They're underwritten by the Federal Reserve.

They're insured or guaranteed by a government agency.

Picture a drawing of a section of land. Where is Township 16 located? Fourth row, fourth from left Fourth row, third from left Third row, fourth from left Third row, third from left Townships in a section are numbered beginning in the upper right (NE) corner and continue in a zigzag pattern.

Third row, third from left

Monica meets a colleague from another firm, Kate, for lunch, and discovers that a former seller client, Reuben, is now Kate's buyer customer. Monica tells Kate, "You know Reuben inherited a bunch of money right before he sold his house, right?" Which of these statements is true? This is a breach of confidentiality because confidentiality survives forever. This is a breach of confidentiality because the information impacts Reuben's negotiating ability with the seller. This isn't a breach of confidentiality because Reuben is no longer Monica's client. This isn't a breach of confidentiality because the information shared doesn't negatively impact the client.

This is a breach of confidentiality because confidentiality survives forever.

Danette hasn't paid the first quarter water bill on her property. It was due on April 1. She's closing with the buyer, Jason, on April 1. What type of expense is this and how will it appear on the settlement statement? This is an accrued expense, and will appear as a buyer debit and a seller credit. This is an accrued expense, and will appear as a seller debit and a buyer credit. This is a prepaid expense, and will appear as a buyer debit and a seller credit. This is a prepaid expense, and will appear as a seller debit and a buyer credit.

This is an accrued expense, and will appear as a seller debit and a buyer credit.

Gail was supposed to close on her new home by the end of May, but she kept asking the sellers if they could push the closing date back. Soon the summer was over and she still hadn't closed. Gail was guilty of not adhering to which aspect of the contract? Assignment Novation Reasonable time Time is of the essence

Time is of the essence

Garrett wanted to move his real estate closing so that he can get through his wedding first. His broker and attorney encouraged him not to do it because of which contract clause? Contract novation Indemnification Liquidated damages Time is of the essence

Time is of the essence

Which of the following statements is true regarding timeshare estates? Timeshare estates are illegal. Timeshare estates can be sold or passed down to heirs. Timeshare estates cannot be passed down to heirs. Timeshare estates cannot be sold.

Timeshare estates can be sold or passed down to heirs.

Which of the following is true about ownership or title to a property? Constructive notice to the public of real property ownership occurs when the deed is recorded. The last to record has priority. The seller is responsible for paying for owner's and lender's title insurance. Title isn't finalized until the deed has been recorded.

Title isn't finalized until the deed has been recorded.

Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's the purpose of this document? To detail the amount Lawrence needs to bring to closing To detail the estimated closing costs for Lawrence's loan To disclose the interest rates available on this lender's various loan programs To disclose the lender's source of loan funds

To detail the estimated closing costs for Lawrence's loan

Why does the closing agent review the purchase contract? To check for contract errors To ensure that all contract signatures are in place To ensure that both parties are protected by clauses in the contract To gather closing-related information agreed to in the contract

To gather closing-related information agreed to in the contract

A quitclaim deed does which of these? Transfers a property with only the covenant of warranty Transfers the property with full covenants Transfers without warranty any interest or title the grantor has when conveying it Transfers with warranty any interest or title the grantor has in the property when conveying it

Transfers without warranty any interest or title the grantor has when conveying it

When you use a comparative market analysis to calculate a suggested listing price range for a particular property, which of the following actions will you take? Adjust prices from all properties listed or sold within a one-mile radius of the subject property. Calculate a price range based on data from expired listings and pending sales. Use adjusted prices from comparables and refine a range using active listings, expired listings, and possibly pending listings. Use the prices of sold comparables and active listings, adjusted for time listed.

Use adjusted prices from comparables and refine a range using active listings, expired listings, and possibly pending listings.

Ken signed a contract to purchase Debra's condo. Ken signed the contract two weeks prior to turning 18, which is the age of majority in his state. Debra found out about his age prior to the closing but honored the contract, and they closed on the condo a month after Ken's birthday. What was the status of the contract when Ken and Debra entered into it? Executed Illegal Void Voidable

Voidable

Sondra thinks the new business contract she signed with her business partner is valid. Both parties are legally competent, the contract has a legal purpose, an offer was made and accepted, and a fee has been negotiated and documented. Which essential element of a valid contract has Sondra not yet considered? Whether consent was voluntary Whether the contract has been translated into all possible languages Whether the contract is in writing Whether the parties are over 21

Whether consent was voluntary

You've listed a 1918 Craftsman with some significant foundation issues—so significant that the buyers walked away after the inspection. They provided you and your sellers with a copy of the inspection report, which also points out some wiring concerns. At today's open house, a prospective buyer asks to see a copy of any inspections done on the property. What should your response be? You should ask the buyers who walked away whether you can provide a copy. You should disclose any adverse material facts, but you don't have to provide the report. You should provide an inspection report, but only if specifically asked. You should provide an inspection report to all prospects, along with seller disclosures.

You should disclose any adverse material facts, but you don't have to provide the report.