Real Estate Final Exam practice

The borrower will have 360 payments (assuming the loan isn't paid off early). This is 12 monthly payments per year for 30 years: 12 x 30 = 360. the answer is 360

A borrower has a 30-year, $500,000 loan with an interest rate of 6.25%. His monthly principal and interest payment is $3,078.59. How many payments will he make over the course of the loan?

Joint Tenancy may not be inherited

A form of concurrent ownership, which occurs when two or more persons own a single estate in land, with right of survivorship. Must have equal shares, right to partition.

The total commission is $225,000 × .07 = $15,750. After Devin takes half, Sheila and Kiko are left with the other half to split, which is $7,875. Kiko receives 70% of this other half, or $7,875 × .70 = $5,512.50 in commission. answer: 5,512.50

A home sells for $225,000. Per the listing agreement, the total commission is 7% of the sales price. After half of that goes to the buyer's agent's managing broker Devin, the other half of it goes to Sheila, the buyer's agent. But the seller's agent, Kiko, also has an agreement with her brokerage for a 70/30 split, with the "70" going to her. How much is Kiko's commission?

Familial status discrimination

A landlord discovers that his married tenants are expecting their first child. He wouldn't have rented to the couple had he known they were going to have children, so he serves them with an eviction notice and tells them they must be out in 30 days. The landlord is guilty of ______.

Benchmark

A permanent reference point for marking datums

Makes the property available to all buyers without limits or restrictions

A real estate licensee must conduct marketing campaigns in a way that ______.

Negotiable Instrument

A written promise or order to pay a specific sum of money that may be transferred by endorsement or delivery. The transferee then has the original payee's right to payment.

340,000 - 125,000 = 215,000

Adam owes $125,000 on his home. It's currently worth $340,000. How much equity does Adam have in his home?

Sales contract

Agatha helped her client Rufus complete the ______, which documents Rufus's purchase offer to the seller for the property he is interested in buying.

group boycotting

Agreeing with your competition to not cooperate with another business, is an example of what?

She has been engaged as a broker, in a full-time capacity, for the past five years.

Aileen has her broker's license and has been appointed by the governor to serve as a TREC member. Which of the following criteria made her eligible to be a member of the commission? - She has been a part-time broker consultant for 20 years. - She has been engaged as a broker, in a full-time capacity, for the past five years. - She has been retired for two years after selling seven successful brokerage firms she built from the ground up. - She has taught pre-licensing courses at the University of Tennessee as her full-time occupation for 17 years.

Brownfield

An abandoned or unused commercial or industrial site with suspected contaminants

illegal market allocation

Based on licensee expertise, Uptown Homes agrees with Country Cottage Realty to focus exclusively on suburban, rather than rural, homes. this is an example of illegal what

Refer their clients to a competent professional in that field.

Based on the duty of reasonable skill and care, if clients ask agents for advice in areas outside of an agent's scope of expertise, what should agents do?

Submit a form detailing his criminal record and appear before the commission.

Ben was convicted of and imprisoned for money laundering 10 years ago, and he was released on parole three years ago. He's applying for his Tennessee real estate license. What action does he need to take?

425,000 x .06 = 25,500 25,500 x .8 = 20,400 20,400 / 2 = 10,200 answer: 10,200

Benji is a buyer's agent, and he'll receive a split of the commission paid from the sale of Harriet's listing. The property sold for $425,000. The total commission paid from the sale is 6%, split evenly between the buyer and seller brokerages. Benji has an agreement with his broker that he earns 80% of the commission received. How much will Benji be paid from this sale?

Making a substantial and willful misrepresentation

Broker Regina tells her client that a property is zoned as residential, even though she's pretty sure it's zoned commercial. This violation is an example of _________.

Firewalls

Brokerages that offer designated agency can implement ________ to prevent the unintended disclosure of information.

Trustor

Carla creates a trust to convey her assets to her children. Her brother, Alvin, is placed in charge of making sure the terms of the trust are carried out. In this example, Carla is the ________.

Buyers beware

Caveat Emptor means?

Wrap around loan

Charles is selling his home to Sheila. Charles has an existing loan that he will continue to make payments on. Charles is also extending credit to Sheila for the balance of the purchase price. Sheila will make monthly payments to Charles. What type of financing is used in this transaction?

Tenancy in common

Co-ownership of property in which each party owns an undivided interest that passes to his or her heirs at death.

Joint Tenancy

Co-ownership without inheritance rights is what kind of real property ownership?

roof

Cracks, holes, or rotten areas on a soffit are common ______ issues.

six years

Ed buys Wendy and Randy's home, and in the sales agreement he specifies that the playground set must stay with the home. Wendy and Randy take the playground set when they move out. In Tennessee, if Ed wants to sue Wendy and Randy for taking the playground set, he must do so within ________.

Trustee

Gerald creates a trust to convey his property to his heirs. His friend, Nancy, is placed in charge of making sure the terms of the trust are carried out. In this example, Nancy is the ________.

both are acting as designated agents

Home to Hearth Brokerage has an in-house transaction situation and has appointed one of its licensees to represent the buyer client and one to represent the seller client. The two licensees are acting as what type of agents?

three

How many approaches to value do appraisers generally use?

General

If Elizabeth is a property manager, she is acting as what of type of agent?

Kathy must complete the Tennessee Residential Property Condition Disclaimer Statement.

If Kathy wants to sell her property "as is," which of the following statements is true? - Kathy isn't required to complete the Tennessee Residential Property Condition Disclaimer Statement. - Kathy must complete both the Tennessee Residential Property Condition Disclaimer Statement and the Tennessee Residential Property Condition Disclosure forms. - Kathy must complete the Tennessee Residential Property Condition Disclaimer Statement. - Kathy must complete the Tennessee Residential Property Condition Disclosure form.

74.15 x 4 = 296.60

If the monthly property tax rate is $74.15 and the closing is on April 30, what will the seller owe at closing? Assume a statutory calendar and that the seller hasn't made any payments. Round to the nearest cent.

A real estate license

If you work for a property management company that manages property for more than one owner, what must you have in order to collect rent and perform other real estate functions?

The seller isn't obligated to proactively disclose property defects.

If you're in a caveat emptor state, this means what?

Designated agency

In Tennessee, one type of agency creates a relationship between a client and a single broker or affiliate broker. What's this type of agency called?

Grantor

In a transfer of ownership in real property, who conveys the title?

Amount financed/ down payment

James is obtaining an 80/20 loan. What does 80/20 signify?

She wants to make sure the buyers are serious about purchasing.

Janine wants to meet with her potential buyer clients face-to-face in her office. What's her reason for doing this?

The rules and regulations

Jasmine has signed a lease that details what she can and can't do on the property. If she wants to refer back to her lease, where would she look for this information? The capacity to contract The consideration The description of premises The rules and regulations

A violation of real estate law

Katrina's business card has the REALTOR® logo on it because Katrina respects the National Association of REALTORS®, although she is not yet a member. This is _________.

Yes, because the offer to buy is the consideration.

Kris made an offer on Lincoln's townhouse. However, Kris offered no earnest money. If Lincoln accepted her offer, would it be binding?

the right to use timeshare

Marvin purchased the right to use a resort unit for two weeks every year, although he doesn't own the property itself. What kind of timeshare is this?

Independent Contractor

Pam is a new real estate licensee who must receive a high level of supervision. Even with the supervisory requirement, the Internal Revenue Service allows Pam to be classified as an ______. - Agent - Employee - Independent contractor - Unlicensed assistant

She has been engaged as a full-time real estate broker for the past nine years.

Rebecca has her broker's license and has been appointed by the governor to serve as a member of the Tennessee Real Estate Commission. Which of the following criteria made her eligible to be a broker member of the commission? - She has been a part-time broker consultant for 20 years. - She has been engaged as a full-time real estate broker for the past nine years. - She has been retired for two years after selling five successful brokerage firms she built from the ground up. - She has taught pre-licensing courses at the University of Tennessee as her full-time occupation for 17 years.

be sold or passed down to heirs

Rhonda is interested in putting money toward a timeshare estate, to use a condominium for two years. Timeshare estates can......

Land contract the seller agrees to provide credit to the buyer for a portion (or sometimes all) of the funds required to close the transaction. The buyer makes payments directly to the seller.

Sellers provide funds or credit to buyers in order to close the transaction this is called what

Stan and Vince need to sign an agency agreement.

Stan wants Vince to list his house. What does Stan need to do to have Vince represent him in all marketing and negotiation tasks?

Teaser rate

The Johnsons are shopping for a mortgage loan and are attracted to the below-market interest rate offered for the first year of an adjustable rate mortgage. What's this type of rate called?

Diverse

The National Fair Housing Alliance believes in promoting the message that __________ neighborhoods are stronger neighborhoods.

Health Care

The buildings associated with this type of real estate property are outfitted much differently than other types of office buildings because of their unique use. For example, plumbing and electrical are often much more substantial, and there is usually a need for reception areas and examination rooms.

The cost to acquire land and construct a reproduction

The cost approach to finding an appraised value measures _______.

Land

The earth's surface, extending downward to the center of the earth and upward to infinity, including permanently-attached natural objects, is called ______.

Construction Mortgage

The lender is loaning on land, air, and a promise to build. is what kind of mortgage?

List Price

The price for which an owner offers to sell a property is called the ______.

When you are disclosing the information after your agency relationship with the client has ended. Even after a fiduciary relationship ends, you're obligated to preserve the former client's confidential information.

Under which of the following conditions is it unacceptable to disclose confidential information? - When disclosure is necessary to defend yourself against an accusation of wrongful conduct - When the information is made public from a source other than you - When you are disclosing the information after your agency relationship with the client has ended - When your client gives you written permission to disclose the information

Up to $100 million for corporations and $1 million for individuals

Violators of the Sherman Antitrust Act may be subject to fines. For what amount may corporations and individuals be liable?

restricted appraisal report the appraisal report

What are the two report types permitted by the Uniform Standards of Professional Appraisal Practice?

Principal Interest Taxes Insurance

What does PITI stand for?

They can be either flat fee or contingent on sales price.

What does the Tennessee exclusive buyer designated agency agreement specify about buyer's agent fees?

Principal meridians, base lines, and sections

What does the rectangular government survey system use as the basis for legal descriptions?

Value will be pushed downward

What effect will a property's utility have on the value if it's currently uninhabitable?

An Instrument of Conveyance

What exactly is a deed?

Estate at sufferance

What is the type of possession in which a tenant stays after the right to possess has terminated?

Conflicts of interest, material facts, and adverse material facts

What must you disclose to be in full compliance with an agent's fiduciary duty to disclose?

75%

What score does an applicant need to pass the national and state exams for a real estate broker license in Tennessee?

Active License

What type of license will you receive if you have a supervising broker at the time of application?

Buyers Market

What type of real estate market occurs when supply is high and demand is low?

890 / 12 = 74.17

What would the monthly rate be if annual taxes are $890? Round to the nearest cent.

Appraisal

What's a certified opinion or estimate of value of a particular property as of a particular date?

Help the seller sell the property.

What's a listing agent's primary duty to a seller?

To put buyers on notice of seller's knowledge of material defects

What's the purpose of the Tennessee Residential Property Disclosure Act?

a single licensee

When a buyer signs a designated buyer representation agreement, the agency relationship is between the buyer and ________.

set back and boundaries

When a local planning board is reviewing density, it would consider ______.

Once the buyer and the seller have signed it, and their acceptance has been communicated to both parties

When does the sales contract become a legally binding document?

National Origin

When people are treated differently because they were born in another country or are from a specific part of the world, this is discrimination based on _______.

Do Not Call Implementation Act, CAN-SPAM Act, and Junk Fax Prevention Act

When prospecting and soliciting for new business, licensees should be familiar with which federal acts? - Do Not Call Implementation Act, CAN-SPAM Act, and Junk Fax Prevention Act - Do Not Call Implementation Act, Sherman Act, and Unfair Trade Practices Act - Human Relations Act, Fair Housing Act, and Americans with Disabilities Act - Sherman Act, Clayton Act, and Unfair Trade Practices Act

The Lanham Act

Which act gives companies the right to sue a competitor for making deceptive ad claims?

Closing Disclosure

Which document is provided to borrowers no fewer than three days prior to closing and provides details about the costs of the transaction?

Tennessee Real Estate Commission

Which entity enacts rules addressing professional conduct and standards of practice for real estate licensees in Tennessee?

The building department

Which entity ensures that contractors perform their work according to code by inspecting their job sites?

Confidentiality

Which fiduciary duty goes beyond closing?

It's an opinion of value.

Which of the following best describes what an appraisal is? - It's a broker price opinion. - It's a comparative market analysis. - It's an assessment of market value. - It's an opinion of value.

Using the term "REALTOR®" on your business card when you're not a member of the National Association of REALTORS®

Which of the following is a real estate violation in Tennessee? - Experiencing a credit rating drop of 30 points or more - Failing to disclose a change in marital status - Failing to report a conviction to the commission within 30 days - Using the term "REALTOR®" on your business card when you're not a member of the National Association of REALTORS®

Sets licensing fees

Which of the following is a responsibility of the Tennessee Real Estate Commission? - Appoints members to the planning board - Establishes federal real estate laws - Reviews and approves site plans - Sets licensing fees

A private homeowner advertises a private house share using the phrase: "No minorities."

Which of the following is a violation of federal fair housing law? - A landlord refuses to rent to anyone under the age of 30. - A private homeowner advertises a private house share using the phrase: "No minorities." - A private homeowner lives in a duplex and won't rent the other half to a pregnant woman. - A private homeowner lives in a triplex and won't rent one of the units to a family.

An opinion regarding the listing price

Which of the following opinions can a real estate licensee provide? - An opinion regarding the appraisal value of a property - An opinion regarding the effect of breaking an existing agreement to accept a new offer - An opinion regarding the listing price - An opinion regarding whether a roof needs to be replaced

Comparative Market Analysis (CMA)

Which of the following options describes a method by which a licensee can determine an appropriate listing price range?

Lot 6 of Block 3 of the East Subdivision plat as recorded in Map Book 18, Page 11 at the Recorder of Deeds

Which of these is an example of a lot and block description? - 123 Roanoke Street Any Town, ST 98765 - "Beginning at the iron pin 30 paces from the center of the brook that runs across the road Southwesterly from the dwelling ..." - Lot 6 of Block 3 of the East Subdivision plat as recorded in Map Book 18, Page 11 at the Recorder of Deeds - S ½ SE ¼ NW ¼ Section 2 ...

The Equal Credit Opportunity Act, the Community Reinvestment Act, and the Home Mortgage Disclosure Act

Which of these pieces of legislation work together to prevent discriminatory lending practices? - The Equal Credit Opportunity Act, the Community Reinvestment Act, and the Home Mortgage Disclosure Act - The Housing and Economic Recovery Act, the American Recovery and Reinvestment Act, and the Consumer Financial Protection Act - The Housing and Urban Development Act, the Fair Housing and Employment Act, and the Community Development Act - The Real Estate Settlement Procedures Act, the Truth in Lending Act, and the Consumer Credit Protection Act

You must not share your client's confidential information.

Which one of the following best describes the fiduciary duty of confidentiality? - You must keep all material facts confidential. - You must keep all parties' information confidential. - You must not discuss confidential matters with your client. - You must not share your client's confidential information.

Retiree

Which type of buyer usually has a fixed income and is looking for a home with little to no maintenance? - First time buyer - retiree - trade down buyer - trade up buyer

Taking care of your client's funds and paperwork

You demonstrate the fiduciary duty of accounting by ____________.

Comparative Market Analysis (CMA)

______ may only be used to help determine an appropriate list price for a property or to help a buyer determine fair market value.

Specific Performance

_________ is when one party didn't meet the terms of the contract in the specified time frame, and is now being required to do exactly what was agreed to in the contract.

Firewalls

hardware, software, or both designed to prevent unauthorized persons from accessing electronic information

Survey

is a professional, on-site measurement of the lot lines and dimensions of a property and may include the location of any improvements (such as a house) on the lot, any encroachments that may exist, and any easements of public record.

Sales contract

is the buyer's documented offer to the seller to purchase the property identified in the agreement.

conveyance/ deed

the action or process of transporting someone or something from one place to another.

Wrap around loan

the seller holds a mortgage that wraps the new buyer's mortgage around the seller's existing mortgage. The seller continues to make payments on the first mortgage, and buyer makes payments to the seller on the wrap-around mortgage.

purpose of deed

used to transfer real property from one party to another.

Ownership Document

what is a deed?