real estate national
The Davises pay the annual tax of $1825 on their lake house every January. On a whim, they sell their lake house to the Bennets to buy a Winnebago and travel the country. Closing is set for July 31, and the buyers own the day of the closing (pay prorated expenses through the day of closing). Using the calendar year proration method (assume its not a leap year), how much of the pre-paid property tax was the Davises' responsibility. 1. $1,050 2. $1,055 3. $1,064.70 4. $1,069.77
$1,055
Your seller wants to net 100000 after the 5% commission is paid. Assuming no closing costs, at what price does the home need to sell for the seller to net this amount?
$105,263.16 (100,000 divided by 95%)
Clint is interested in making an offer on a house with hardwood floors that need to be replaced. The hallway is 18' x 6'. The kitchen is 20' x 30'. The living room is 25' x 45'. Two bedrooms are 12' x 16', and the master bedroom is 14' x 20'. If the cost of the flooring is $5.48 per square foot, and the cost of installation is $1.49 per square foot, how much can Clint plan to spend to replace the floors?
$17,404.09 (total sq is 2497 then the cost per sq total is $6.97 so multiply both together to get answer)
Your buyer client Heather just signed a purchase agreement for $520,000. The LTVR is 60%. How much is heather putting down on the purchase? 1. $208,000 2. $220,000 3. $300,000 4. $312,000
$208,000 (60% means heather is financing that much and putting down the 40% so 520,000 times 40% is how much she put down)
A buyer with a $242,000 loan has monthly principal and interest payment of $1,317.66. If $1033.54 is interest, what's the new principal balance after the first payment is applied? 1. $240,682.34 2. $241,672.12 3. $241,715.88 4. $241,976.21
$241,715.88
If an appraiser has found the value of a property to be $250,000 using a cap rate of 10% what was the property's new operating income? 1. $10,000 2. $2,500 3. $25,000 4. $2.5 million
$25,000 value = income/rate which means income = rate x value soooooo $250,000 x 10%
Henry submits an offer on a condo and includes an earnest money check for 10A% of his offer, which the seller excepts. Later on at closing, he brings a cashier's check for $34,450 (comprising the remaining half of his 20% down payment and $7,950 in closing costs). What's the condo's purchase price in whole dollars?
$265,000 (34450-7950=26500.... the total DP was double this so 53,000... next divide by 20% to get 265000)
A seller wants to net $10,000 after the broker's commission of 6% and a loan balance of $250,000 are paid. For how much does the property need to sell? 1. $250,000 2. $265,975 3. $276,596 4. $650,000
$276,596 (250,000+10,000 and divided by .94
A seller wants to break even after the broker's commission of 5% and loan balance of $300,000 are paid. At what price must the house sell?
$315,789 (95% divides into 300,000)
A buyer has a 30-year, $750,000 loan with a 5.75% interest rate. How much of the first monthly payment is interest?
$3593.75
A townhouse is purchased for $475,000. If the transfer tax is $2.00 on the first $1,000. and $.10 for each additional $100., how much is the transfer taxes? 1. $474 2. $4,742 3. $476 4. $49.40
$4,742 (($474,000 x .001)+2)
A local buyer is purchasing a property for $120,000. What will the seller pay in transfer tax if the rate is $.37 per $100
$444 (multiply the property by the tax percentage)
Joyce just closed on a condo for $366,900 and put down 20% to obtain an 80% loan and avoid having to pay for private mortgage insurance. How much equity does she have in her condo? 1. $146,760 2. $220,140 3. $293,520 4. $73,380
$73,380 (366,900 times the 20% down to get the $73,380) (her equity is the same as her down payment)
Alison and Brent are financing their house purchase of $232,500 with a FHA loan. Their credit score qualifies them for the minimum down payment. What do they need to put down?
$8137.50 (232500 times the minimum down payment for a FHA loan of 3.5%)
A 4-bedroom, 4-bath 4,875 square feet house was listed at $445,000. Andreas, the seller, accepted an offer that was 95% of the listing price. What price per square food did he get for this house? 1. $45.64 2. $82.15 3. $86.72 4. $93
$86.72 (445,000 x .95 to give you 422,570 then divide this by the square footage of 4875)
Gary has a 80% LTVR on his new $318,000 townhome with an annual interest rate of 4.125%. What's his interest payment the first month?
$874.50 (318,000 times 80% times 4.125% divided by 12 months)
You're working with buyers who are pre-approved for a loan of as much as $200,000. Assuming they lock in a 5.25% interest rate at closing, how much of their first payment will go toward interest?
$875 (loan x interest / 12)
Which of these statements about the homeowner's rights of redemption are true? 1. Homeowner right of redemption applies to foreclosure, short sales, and REOS 2. Only foreclosures are subject to homeowner's redemption rights 3. Right of redemption timelines are longer for foreclosure than they are for short sales 4. Rights of redemption window with REOs may have expired
.Right of redemption window with REOs may have expired
Generally, what's the common range for loan origination fees? 1. 1% to 3% 2. 1% to 5% 3. 2% to 5% 4. 3% to 5%
1% to 3%
In addition to fines, individuals who violate antitrust laws may face imprisionment for up to what length of time?
10 years
In certain cases, antitrust violators may be subject to court-ordered supervision. How long can this supervision last? 1. 10 years 2. one month 3. one wekk 4. one year
10 years
Using the income approach, determine the value of a property that has a net operating income of $15,000 and a cap rate of 15%.
100,000 -- (15,000 divided by .15) value = income divided by cap rate
Sebastien's four story home includes a 400sf unfinished bonus room on the top floor, an upper level with 850 sf, a main level with 1,450 square feet which includes a garage thats 500sf and a finished basement thats 900 sf. The MLS system in Sebastiens area includes below-grade square footage. What square footage will be reported on his MLS listing
2700 (dont include the unfinished)
How many acres are in a parcel described as, "The NE 1/4 SW 1/4 Section 3, Township 4S, Range 2W of the 6th PM"?
40 (multiply the denominators and divide into 640)
Glenn is purchasing a home for $400,000. The property appraised at $415,000 and Glenn is financing $300,000. What's the loan-to-value ratio?
75% (300,000 divided by 400,000)
How many acres are in a parcel described as, "The S 1/2 NW 1/4 Section 3, Township 4N, Range 2W of the 6th PM"?
80
A former client has filed a formal complain against Ajit, claiming he failed to properly disclose a material fact that the seller didnt disclose. Which of these statements about Ajit's liability is true 1. ajit is only responsible for disclosing adverse material facts 2. Ajit may be liable if he operates in a state that requires licensees to make a reasonable effort to discover adverse material facts 3. The claim has no base because the seller didnt disclose the info 4. the claim is likely to be dismissed if Ajit operates in a non-full disclosure state
Ajit may be liable if he operates in a state that requires licensees to make a reasonable effort to discover adverse material facts
Which legislative act prohibits certain types of electronic communication? 1. CAN-SPAM 2. NO-SPAM 3. SPAM-CAN 4. SPAM-JAM
CAN-SPAM
Cambridge Apartments provides an open parking lot for its residents. There is adequate parking, and all spaces are available on a "first-come, first-served" basis. Alton has multiple sclerosis and uses a motorized wheelchair. Must Cambridge reserve a parking place specifically for Alton if he requests? 1. as long as the current parking policy were already in place before Alton made application, Cambridge need not make an exception 2. Cambridge must allow an exception to the first-come, first-served policy for Alton 3. Cambridge must provide a space for Alton that is no further than 50 feet from an accessible building entrance 4. Provided at least two parking spaces per living unit are available, a parking space need not be reserved for alton.
Cambridge must allow an exception to the first-come, first-served policy for Alton
Joan is representing the buyer, Carlton, and Reggie is representing the sellers, Zeb and Teresa Martin. Carlton's Great Aunt Matilda has agreed to pay any portion of Jason's commission the sellers don't cover. Teresa's father, Teddy, has agreed to pay half of the sales commission that will be owed to the listing agent. Which of these statements is true? 1. Carlton and the Martins are the agents' principals in this transaction 2. Matilda and Teddy are the agent's principal in this transaction
Carlton and the Martins are the agents' principals in this transaction
Which of these situations represents the illegal practice of blockbusting? 1. Celia, a licensee, distributed a flyer in several neighborhoods, claiming that gentrification of those neighborhoods will increase property values. 2. Corbin tells homeowners in Five Points that an impending influx of Asian immigrants will reduce property values. 3. Estelle, a broker, warns potential clients about the upcoming zoning change in a neighborhood that is currently zoned as residential. 4. Kian, a mortgage broker, refuses to underwrite mortgage applications from applicants who are Hispanic or Asian
Corbin tells homeowners in Five Points that an impending influx of Asian immigrants will reduce property values.
Which agency enforces Title II under the Americans with Disabilities Act of 1990, when it relates to state and local public housing, housing assistance, and housing referrals? 1. Department of Civil Rights 2. Department of Equal Opportunity 3. Department of Housing and Community Development 4. Department of Housing and Urban Development
Department of Housing and Urban Development
What must sellers provide prospective buyers of homes built prior to 1978, in addition to the federally required disclosure form? 1. EPA lead safety pamphlet 2. List of reputable home improvement contractors 3. Verbal assurance that the home is lead-free before offering it for sale 4. Written proof that the home is lead-free
EPA lead safety pamphlet
Frances collected an earnest money check from her client, but didnt have an opportunity to deliver it to the escrow agent before close of business on Friday. For safekeeping, she deposited it into her personal checking account over the weekend and wrote the escrow agent a new check on Monday morning. Which of these is true? 1. Frances Is guilty of commingling 2. commingling and conversion 3. guilty of conversion 4. fraud
Frances is guilty of commingling
Which of these situations represents an illegal tie-in arrangement? 1. Grayson tells his seller client, Geneva, that he'll reduce the listing commission if Geneva uses MBS Title Service to close her transaction 2. Monica agrees to rebate a portion of the commission earned when her buyer client buys a house if the client also lists her current home with Monica
Grayson tells his seller client, Geneva, that he'll reduce the listing commission if Geneva uses MBS Title Service to close her transaction
Which act states that communities and facilities that meet certain criteria for providing housing to older persons are legally exempt from familial status discrimination> 1. fair housing amendments act of 1988 2. federal fair housing act of 1968 3. Housing and community development act of 1974 Housing for Older Persons Act of 1955
Housing for Older Persons Act of 1995
Amira's seller Tom just received the news that his buyers are walking away from the sale. They weren't willing to proceed after they saw the inspection report. Neither Amria nor Tom has requested a copy of the report. What's the most likely reason for that? 1. Amira doesn't trust this particular inspection company 2. If they see the report, they'll be required to disclose any adverse findings 3. They are unwilling to pay for the report as the buyer requires 4. Tom wants to pay for his own inspector so that he can question the inspector.
If they see the report, they'll be required to disclose any adverse findings
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? 1. It includes at least 400 sqf of public space 2. It's a commercial enterprise that's open to the public 3. It sits in a city center 4. It was built after 1978
It's a commercial enterprise that's open to the public
Broker Sam has extended an offer to licensee Jane, who has accepted the offer. Jane will work as an independent contractor for Sam. Based on this, which of the following statements is true? 1. As an independent contractor, Jane will not have to fill out any tax-related or IRS-related paperwork 2. It is up to Jane whether or not she wants to have taxes withheld from her pay. If she does choose to have taxes withheld, she must complete a W-4. 3. Jane will need to fill out a W-4 for tax withholding information 4. Jane will need to fill out a W-9 for IRS reporting purposes
Jane will need to fill out a W-9 for IRS reporting purposes
Luci's client Kaden wants to purchase a new construction property, and he wants to get as much house as he can afford. Which of the following does Luci need to advise Kaden about regarding interest rates when purchasing a newly built home? 1. If Kaden uses his builder's lender, he can get a better interest rate and won't have to worry about market fluctuation between now and closing 2. Kaden doesn't need to worry about interest rates for his long-term mortgage until 90 days prior to closing when he can lock in the best one 3. Kaden needs to allow for the possibility of an interest rate increase between now and closing because lenders aren't likely to lock in an interest rate for more than 90 days before closing 4. Kaden needs to lock in the interest rate on his long-term mortgage now to avoid unexpected increases that could put his loan amount over his approval amount
Kaden needs to allow for the possibility of an interest rate increase between now and closing because lenders aren't likely to lock in an interest rate for more than 90 days before closing.
The Perfect Home brokerage firm was found gulity of running deceptive ads. The Federal Trade Commission might require all of the following EXCEPT _________. 1. Letters of apology to all affected consumers 2. New ads to correct previous misinformation 3. Notification to consumers about deceptive ad claims 4. Specific Disclosures to consumers
Letters of apology to all affected consumers
Oscar bought an older home and hired a contractor to replace the old knob and tube wiring throughout the house. He was invoiced for the work, but 60 days have passed, and Oscar has yet to pay the bill. The electrician filed a lien against Oscar's house. What type of lien is this? 1. HOA-related 2. Mechanics 3. Mortgage 4. Special assessment
Mechanics
Murphey's farm has been in his family for generations, since his great-great-great-grandfather received it as a land grant in 1862. What's the beginning point of this property's chain of title? 1. Murphey's grandfather, the previous owner 2. Murphey's great-great-great-grandfather 3. Murphy, the current owner 4. The federal government that originally granted the land
Murphey, the current owner
In which of these situation has the licensee compromised the duties of loyalty and disclosure? 1. Diana, the sellers agent, presented an offer to the seller even though it was under list price 2. Hillary, in working with the seller, told the buyer about material defect the seller hadn't disclosed 3. Josie, in listing Rob's property, failed to disclose to Rob that he represents the seller 4. Nate didn't tell his client about a conflict of interest related to the sale of his clients property
Nate didn't tell his client about a conflict of interest related to the sale of his clients property
Mardee represented condo owner Carol, and they signed an exclusive agency listing agreement. If Carol found her own buyer, would she owe Mardee a commission? 1. No, because Carol is not a real estate licensee. 2. No, because Carol procured the buyer 3. Yes, because they have an exclusive agency listing agreement 4. yes, but she only owes the listing commission
No, because Carol procured the buyer
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? 1. Material used for shingles 2. Number and type of electrical breakers 3. Number and type of windows per square foot 4. Placement of gas range in the kitchen
Number and type of electrical breakers
Rohit bought 31 acres of undeveloped and mostly forested land. He is planning a weekend with friends where they'll camp on the property while scouting good locations to place a cabin. Which right in the bundle of rights allows Rohit to do the camping weekend on undeveloped land? 1. Disposition 2. Exclusion 3. Possession 4. Power
Possession
Conrad just closed on the house he's buying to fix up. Why should he follow up to be sure the deed has been recorded? 1. he can't legally make any improvements to the property until the deed is recorded 2. he doesn't legally own the house until that occurs 3. recording provides actual notice that he owns the property 4. recording provides constructive notice that he owns the property
Recording provides constructive noticee that he owns the property
Greta is working with agent Brandon to sell some property. Nelson represents the buyer, Rigby. Of these four parties, who will pay the earnest money? 1. Brandon 2. Greta 3. Nelson 4. Rigby
Rigby
Elizabeth is financing a new home. She submitted her loan application on Monday, August 3. She's set to close on Thursday, September 21. By what date must her lender provide the Closing Disclosure? 1. August 6 2. July 31 3. September 18 4. September 24
September 18
Trina is a licensee at Midtown Homes. Which of these factors indicates that she's classified as an employee? 1. she's eligible to participate in the firms 401k retirement plan 2. she's required to belong to the National Association of REALTORS 3. She works from both her home office and an officer the firm provides 4. The brokerage firm supervises her
She's eligible to participate in the firms 401k retirement plan
Mark works at Farm and Country Bank, and has arranged an agricultural loan for Josh, a local organic farmer. Josh didnt meet the bank's normal underwriting standards, but Mark made the laon because he was able to arrange for a guarantee from _______. 1. Farmer Mac 2. The Farm Credit System 3. The Farm Service Agency 4. The Federal Agricultural Housing Authority
The Farm Service Agency
Which of these regarding the impact of the Brownfeilds law is true? 1. The Mesmer family has discovered petroleum contamination on a site they just purchased. The Brownfields Law holds them and the previous owner jointly responsible for cleanup. 2. 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 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.
Stan is a home inspector who's evaluating a home for potential buyers. He pointed out that neither of the two bathrooms had vented fans installed. Why is this a potential problem that will be noted on the inspection report? 1. Bathroom fans can mitigate lead paint particles 2. Bathroom fans vent radon to the exterior of the house 3. The lack of air circulation in a moist room can lead to mold growth 4. Unseemly smells located that close to the kitchen are a problem
The lack of air circulation in a moist room can lead to mold growth
Kelly is closing on the house she's purchasing on Wednesday. Which of these statements is true? 1. Kelly must receive the Loan Estimate at least four days before closing. 2. The closing officer must deliver the Closing Disclosure by Friday of the week before closing 3. The lender must provide the Closing Disclosure by Friday of the week before closing 4. The Loan Estimate amounts must be within 1/4 of a percent of the final settlement costs
The lender must provide the Closing Disclose by Friday of the week before closing.
Seller Jason is giving listing agent Rebecca a tour of his house and pointing out all the features, even the spot in the attic where a previous owner's ghost likes to come back and visit. Jason asks Rebecca if buyers should be told about this. Which response is best? 1. "all states require sellers to disclose any undesirable feature of a house, which includes ghosts" 2. "The presence of spirits stigmatizes the property. Many states don't consider this a material fact requiring disclosure, but this is my first ghost encounter, so I'll check our laws" 3. "We can tell prospective buyers that the property comes with a roommate" 4. "You cant mention this, because it would be a fair housing violation"
The presence of spirits stigmatizes the property. Many states don't consider this a material fact requiring disclosure, but this is my first ghost encounter, so I'll check our laws"
When state and federal laws differ, as they sometimes do with fair housing/ and or human rights, which of these statements is true? 1. State and local law override federal law 2. State lawmakers decide which law prevails 3. The conflicting law is invalidated, effectively removing the law's requirements. 4. The state law may not remove rights granted to citizens under the federal law
The state lay may not remove rights granted to citizens under the federal law
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? 1. If Alice didn't have the actual color of either the roof or the siding changed, this does not rise to the level of false advertising 2. This is deceptive advertising for which Alice, but not her broker, can be disciplined 3. This is deceptive advertising for which both Alice and her broker may be disciplined 4. This is not a deceptive practice since any serious buyer will see the actual property before making an offer
This is deceptive advertising for which both Alice and her broker may be disciplined
Recently retired Admiral Bongo and his wife Lucy contact you. They want to help them purchase their dream house now that he's retired, but one that has the necessary accommodations for the admiral's disability. They also confide in you that they dont have a lot of money saved up for a down payment. Which type of financing may work best for them?1. a conventional loan combined with a seller carry back 2. a conventional loan using the admirals retirement money as a down payment 3. a VA loan, which requires no down payment
a VA loan, which requires no down payment
Related to title insurance, what is "subrogation"? 1. a covered party grants permission to the title company to pursue the party who caused a claim or loss 2. The act of conveyance when the seller turns over all property rights to the buyer with a clear, marketable title 3. The process by which the lender receives coverage under a title insurance policy the borrower has purchased. 4. the process by which the title policy pays out any claims to the buyer or the lender
a covered party grants permission to the title company to pursue the party who caused a claim or loss
Which of these statements best represents what happens after a federal fair housing complaint is made? 1. a fair housing specialist will review the complaint 2. An official housing discrimination complaint will be filed, and a fair housing specialist will be assigned to the case 3. FHEO will contact the alleged perpetrator to gather information 4. HUD will review the complaint to determine if its valid
a fair housing specialist will review the complaint
What's the penalty for violating federal do not call rules? 1. a fine of more than $40,000 for each day violations took place 2. A fine of more than $40,000 for each violation 3. restrictions on all business telephone use 4. Suspension of the violator's business license
a fine of more than $40,000 for each violation
Which of the following statements about material facts is true? 1. All material facts are related to physical conditions 2. All parties considering a property would regard each material fact in the same way 3. A material fact may have more or less effect on a buyer based on the buyer's needs and value 4. material facts are only those that can be easily seen or discovered
a material fact may have more or less effect on a buyer based on the buyer's needs and values
Jerrica is set to close on the property she's buying on Friday. Because of the other delays in the closing date, Jerrica's interest rate as of the day of closing will increase by 1/4 of a percent. What impact does this have on the closing? 1. a new Closing Disclosure must be issued at least three days before the closing date 2. A new Loan Estimate must be issued, so the closing date must be moved back. 3. Jerrica will not be able to close until she re-applies for her loan 4. The closing date will remain the same, but Jerrica will need to bring additional funds to the closing
a new Loan Estimate must be issued, so the closing date must be moved back
Which of these statements about size of a section of land is NOT true? 1. A section is 43,560 square feet. 2. A section is 640 acres 3. A section is larger than a hectare 4. A section is one square mile
a section is 43,560 feet
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? 1. acceleration 2. alienation 3. defeasance 4. due-on-sale
acceleration
Kenneth entered into a contract to sell his home to Valerie, who put down a $5,000 earnest money deposit. At the last minute, Valerie backed out of the deal and Kenneth kept the earnest deposit. This is an example of______. 1. Accepting liquidated damages 2. accepting partial performance 3. suing for damages 4. Suing for specific performance
accepting liquidated damanges
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? 1. Aesthetic zoning 2. Bulk zoning 3. Incentive zoning 4. registry zoning
aesthetic zoning
Marcy is found guilty of price fixing. It's safe to assume that she must have done what? 1. Agreed with a competitor to charge a specific amount 2. charged a fixed commission price her broker asked her to use 3. Charged a separate co-op fee for different brokerages 4. Deviated from the standard commission rate
agreed with a competitor to charge a specific amount
Which of the following is a true statement about FHA financing? 1. an FHA loan is best for borrowers who have large down payments 2. an FHA loan is usually more attractive to borrowers who have lower credit scores and down payments 3. FHA loans are available to all borrowers, regardless of credit history 4. FHA loans have more stringent requirements than conventional loans do
an FHA loan is usually more attractive to borrowers who have lower credit scores and down payments
What is a special flood hazard area? 1. a basement 2. an area where flood insurance is mandatory 3. areas that have flooded in the last two years 4. a sloped proeprty
an area where flood insurance is mandatory
Which of the following is more likely to act as a closing agent? 1. an attorney or title company representative 2. the broker 3. the lender 4. the seller
an attorney or title company representative
What are improvements with regard to property? 1. another name for a building permit 2. artificial attachments to land that include items such as fencing, buildings, and walkways 3. natural fixtures that are part of the land and that enhance its value 4. the right to increase the value of a property
artificial attachments to land that includes items such as fencing, buildings, and walkways.
Which of the following would be a home inspector note as a defect in a report, due to its link to lung cancer? 1. Asbestos tiles in a basement 2. cedar shake siding 3. copper water pipes 4. old linoleum tiles in a kitchen
asbestos tiles in a basement
Ed is a homebuyer reviewing the Loan Estimate he received from a lender. He notices the loan term include a prepayment penalty. Because he is savvy consumer, he ______. 1. asks a lender if there are other options available that would not involve a prepayment penalty 2. checks with his real estate agent to make sure that the penalty shown is typical
asks a lender if there are other options available that would not involve a prepayment penalty
What type of value is of interest to taxing authorities? 1. assessed value 2. insured value 3. investment value 4. value in use
assessed value
What department typically decides which development projects require a permit or approval? 1. building department 2. environmental compliance department 3. health department 4. housing department
building department
Which of the following is an action borrowed take to temporarily lower the interest rate on their mortgage loan? 1. buy down 2. down payment 3. gap financing 4. usury
buydown
If you see sawdust that can't be explained, it's probably a sawdust-like material called frass created by which pest? 1. carpenter ants 2. fire ants 3. powder-post beetles 4. termites
carpenter ants
Rhonda and Jade both consider themselves to be African-American, although Rhonda has much darker skin and hair than Jade. When Rhonda went to the Valley Falls apartment manager's office to request a rental application, she was told there were no vacancies. Jade went in a day later and received an application. This may be discrimination based on
color
What does the metes and bounds system use to develop a property's legal description? 1. compass headings and direction 2. Plat references 3. Principal meridians and base lines 4. townships and sections
compass headings and directions
The Hendersons were hoping to list their home for $400,000; however, four other comparable homes in the neighborhood just went up for sale, and they now must list their property at $380,000 to sell quickly. Which economic principle is at work here? 1. competition 2. conformity 3. progression 4. substitution
competition
Sophie received title of her grandmothers farm last spring. For almost 100 years, Sophies 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 Sophies grandmother create? 1. adatement 2. condition 3. covenant 4. restriction
condition
A deed states, "for love and affection, the receipt and sufficiency of which is hereby acknowledged". What does this statement represent in the deed? 1. consideration 2. grant clause 3. habendum clasue 4. subject to clause
consideration
Dean and Michael have an oral contract. Dean said he would sell Micheal his bike in return for Micheals vinyl album collection. What does the record collection represent? 1. an executed contract 2. a valid contract 3. Consideration 4. Michael's legal competence
consideration
Daniel had a great experience with his apartment and landlord until about three months ago, when the plumbing in the unit above started leaking into his apartment. The landlord keeps saying he'll fix it but hasn't, and now Daniel has mold growing on two walls. Daniel is moving out before his lease has expired, due to ______. 1. actual eviction 2. constructive eviction 3. mutual agreement 4. terminate
constructive eviction
Which of these is a violation of the RRP Rule? 1. a homeowner performs DIY work in a home built prior to 1978 2. A seller of a home built in 1952 doesn't make the appropriate lead disclosures 3. Contractors from a home improvement store install windows or doors 4. contractors perform renovations that disturb lead-based paint without holding proper certification
contractors perform renovations that disturb lead-based paint without holding proper certification
Which of these principals of value is related to how a change to a portion of a property impacts the value as a whole? 1. contribution 2. impact on value 3. plottage 4. progression
contribution
Which of the following is a common chimney or fireplace problem? 1. creosote 2. damage around the fascia 3. holdes in the soffit 4. none of these
creosote
What are the two types of physical depreciation?
curable and incurable
Private mortgage insurance protects the lender in case the borrower takes which of the following actions? 1. chooses to prepay 2. decides to sell 3. defaults on the loan 4. refinances
defaults on the loan
Prudence just finished paying off the debt on her loan, so the lender released the property's title to her. What clause in her mortgage stipulates this? 1. acceleration 2. alienation 3. defeasance 4. due on sale
defeasance
Which mortgage clause requires the lender to discharge the mortgage lien once the borrower has paid in full? 1. acceleration 2. alienation 3. defeasance 4. due-on-sale
defeasance
Which task is NOT the responsibility of an escrow officer? 1. determine how earnest money is to be distributed in case of a dispute. 2. Manage transaction documents from all parties. 3. Prepare closing documents and manage the closing meeting 4. verify funding of the buyers loan
determine how earnest money is to be distributed in case of a dispute
Which one of the following actions is a licensee required to take a fulfill a fiduciary duty? 1. disclose personal interest and licensed status when buying property for personal use 2. indemnify seller clients from damages from failing to disclose a material defect 3. provide advice to clients regarding how to take title to their property
disclose personal interest and licensed status when buying property for personal use
Informing parties of material facts related to a transaction describes the duty of ________. 1. accounting 2. disclosure 3. loyalty 4. reasonable skill and care
disclosure
Which fiduciary duty is missing: loyalty, reasonable skill and care, obedience, confidentiality, accounting, and _______? 1. disclosure 2. disobedience 3. lawfulness 4. skill
disclosure
Gerard has been offered a 4% interest rate on a $300,000 mortgage. His monthly mortgage payment would run around $950 per month. He plans to pay $2000 up front to drop his interest rate to 3.75% and his payment to $920 per month. What is this upfront charge called?
discount point
The Town of Petersville has just decided to restrict density in one area of town that previously allowed a higher density. This is known as _______. 1. aesthetic zoning 2. density zoning 3. downsizing 4. reduction zoning
downsizing
Which of the following properties requires a lead disclosure? 1. commercial building built in 1960 2. Duplex built in 1959 3. Duplex built in 1979 4. Single-family home built in 1999
duplex built in 1959 (any residential before 1978)
A part of your property is used by the local utility company to maintain its power lines. What's this an example of? 1. easement 2. eminent domain 3. encroachment 4. illegal use
easement
Kurt bought a vacant lot in a development that was 85% completed. When he started working with the builder to lay out where the house and driveway would lie, it was determined that he would need an easement because his driveway would spill over onto the adjacent lot by a few feet. What type of easement is this? 1. easement appurtenant 2. easement by necessity 3. easement by prescription 4. easement in gross
easement appurtenant
Gene and Alex bought a property that backed up to a neighborhood park. The previous owner mentioned that ever since the park was built eight years ago, the next door neighbor who works at the park has cut through the yard to get to the park rather than going around via the streets, which saves about half a mile. What kind of easement is this? 1. easement by prescription 2. easement in gross 3. express easement 4. visible easement
easement by prescription
What are the two categories of comparison when evaluating comparable to a subject property in the market comparison approach? 1. broad and specific 2. components and measures 3. elements and units 4. general and detailed
elements and units
Because of topography of Elsie's and Lawrences respective yards, Elsie had to install her fence at the top of the hill, which is actually two feet over Lawrences property line. What word or phrase best describes Elsie's fence? 1. easement in gross 2. encroachment 3. servant estate 4. visible easement
encroachment
The doctrine of laches refers to the ______ of restrictive covenants/deed restrictions. 1. creation 2. enforcement 3. history 4. types
enforcement
Property owner Craig likes to sunbathe in the nude in his nice, private backyard. What part of the bundle of rights allows him to do this legally? 1. control 2. disposition 3. enjoyment 4. exlusion
enjoyment
A buyer, hoping to beat out all other offers, included a clause in the offer that reads, "Buyer to beat all competing offers by $1,000 up to a price of $700,000. Seller to provide copies of competing offer to buyer on acceptance." What type of offer is this an example of? 1. bad 2. dynamic 3. elevator 4. escalator
escalator
The state's claim to property when a property owner dies, leaving no will, heirs, or creditors is in the power of _______. 1. condemnation 2. eminent domain 3. escheat 4. taking
escheat
Which of the following agreements gives you the sole right to represent a buyer? 1. exclusive listing agreement 2. exclusive right-to-list agreement 3. exclusive right-to-represent agreement 4. exclusive right-to-sell agreement
exclusive right-to-represent agreement
A loss in value caused by an undesirable or hazardous influence offsite is which type of depreciation? 1. economic and material 2. External depreciation 3. Functional obsolescence 4. Physical depreciatoin
external depreciation
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 ______. 1. city charter act 2. fair housing act 3. municipality zoning act 4. zoning disability act
fair housing act
What's the most common indicator of illegal property flipping? 1. falsely inflated appraisal 2. underwriting hassles 3. unrepresented seller 4. violation of fair housing laws
falsely inflated appraisal
When you're using the sales comparison approach to value a property, which of the following is considered a category of adjustment? 1. area demographics 2. financing terms and cash equivalency 3. seller motivation 4. types of obsolescence
financing terms and cash equivalency
Basement wall cracks and leaks can be indicators of ______ problems. 1. chimney/fireplace 2. foundation 3. roof 4. window
foundation
Two essential elements of a deed are the ________ 1. grantors signature and the habendum clause 2. grantors signature and conveyance clause 3. Grantors signature and grantee's signautre 4. habendem Claque and the habeas corpus clause
grantors signature and conveyance clause
What hazard do mining activities, landfills, or agricultural pesticides contribute to? 1. groundwater contamination 2. Leaking underground storage tanks 3. vacant properties 4. waste disposal site
groundwater contamination
Johnstone's Realty is a new discount, menu-based brokerage firm. Its approach usually results in a lower listing commission rate than other firms offer. Johnston's also offers a lower cooperating brokerage split than most other firms. Business is booming for Johnstone's, and the remaining firms are concerned. These brokers agree to now show Johnstone's listings to their buyer clients. What is this an example of? 1. blockbusting 2. group boycotting 3. market allocation 4. steering
group boycotting
Gerald practices real estate in a state that recognizes sub-agency. Which of these following statements is true of Gerald's authority to appoint a sub-agent? 1. he can independently appoint a sub-agent at any time during the transaction 2. he must receive the principal's permission in writing in order to appoint a sub-agent
he must receive the principals permission in writing in order to appoint a sub-agent
Anita is a new buyer. Luckily, ______ will help her before the sale and can reimburse her after the sale if a title issue arises. 1. her buyer's agent 2. her title insurance 3. seller credits 4. seller disclosure
her title insurance
When interest rates are ________, buyers are often priced out of the market. 1. High 2. Low 3. Steady 4. Variable
high
Jason's having trouble paying his monthly rent. His landlord agrees to float him the rent for the next few months with 20% interest. The deal with his landlord is in violation of the state's usury law. Which of these statements must be true? 1. consumers are not suppose to be charged interest on a personal loan 2. his states personal loan interest cap is less than 20% 3. His states personal loan interest cap is more than 20% 4. Landlords loaning tenants money is a violation of usury law
his states personal loan interest rate cap is less than 20%
Homestead Realty had a listing agreement with Gertrude. The listing expired, and Gertrude moved the listing to another firm. Another licensee at Homestead Realty has a buyer client who's interest in Gertrude's property. What restrictions are in place for Homestead Realty? 1. homestead may not represent the buyer for the previously listed property 2. homestead may represent the buyer, must disclose material facts about the property, and must maintain Gertrude's confidentiality 3. no restrictions are in place since the previous property listing expired
homestead may represent the buyer, must disclose material facts about the property, and must maintain Gertrude's confidentiality
Which of the following duties are owed to customers and other parties to a real estate transaction? 1. Fairness and loyalty 2. Honesty and fairness 3. Honesty and obedience 4. Obedience and loyalty
honesty and fairness
Marge's broker, Geoffrey, told her that the lease on the property she wants to buy runs with the land. What does that mean? 1. a new property owner can require tenants to relocate to a similar piece of land 2. if property ownership changes, the new owner must abide by the lease terms 3. the land area leased is fully described in the lease agreement 4. the lease terminates as soon as the land (property) changes hands
if property ownership changes, the new owner must abide by the lease terms
Title XI of the Financial Institution Reform, Recovery, and Enforcement Act of 1989 states that its purpose, in part, is to require that real estate appraisals used in connection with federally related transactions be performed ______. 1. by licensed real estate professionals 2. by members of the Appraisal Foundation 3. In the most expeditious and inexpensive way possible 4. In writing, and in accordance with uniform standards
in writing, and in accordance with uniform standards
Which of the following would be a description used for real property and a fixture? 1. above-ground 2. free-standing 3. in-ground 4. movable
in-ground
Glynnis is ready to close on her new house, but her agent told her that they have to wait for the homeowner to fix the electrical box as agreed. What clause in her contract allowed her to request the repair? 1. appraisal contingency 2. financing contingency 3. home sale contingency 4. Inspection contingency
inspection contingency
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? 1. It guarantees you'll get a commission 2. It makes her look more serious in the seller's eyes 3. It means you're representing her and not the seller 4. It's less time-consuming to you
it means you're representing her and not the seller
You've just signed a listing with a new seller client. What's true about electronic delivery of written notice or contract forms to your seller? 1. it's allowed if the seller consented to it in the listing contract 2. its allowed with special permission from the commission 3. its illegal in colorado 4. its legal as long as its subsequent to physical hard copy delivery
its allowed if the seller consented to it in the listing contract
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? 1. It's not for a legal purpose 2. The parties are incompetent 3. there's no consideratin 4. there's no mutual consent
its not for a legal purpose
Sam and Bridget are cousins who jointly own property. They are both named on the deed, they received title at the same time, they have the right to survivorship, and they each have equal interest and undivided rights of possession. What type of ownership do they have? 1. estate in severalty 2. joint tenancy 3. tenancy by the entirety 4. tenancy in common
joint tenancy
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 _____. 1. convenant 2. easement 3. grant 4. License
license
What is the overarching theme addressed by statutory duties in most states? 1. Licensees may not take any action that might be detrimental to the client's legal interests 2. Licensees must maintain the client's confidentiality 3. Licensees must make all required disclosures 4. licensees must properly account for all money and properties entrusted to them
licensees may not take any action that might be detrimental to the client's legal interest
Which type of agent is an escrow officer? 1. general agent 2. limited agent 3. single agent 4. Universal agent
limited agent
What practice involves talking to the consumer into refinancing over and over so a lender can charge fees? 1. loan flipping 2. poison lending 3. premeditated lending 4. turnover lending
loan flipping
Which of the following could be a sign of a plumbing problem? 1. copper pipes 2. cracks in the basement walls 3. low water pressure 4. rotting around the soffit
low water pressure
When agents put their clients' interests ahead of their own, this describes the duty of _______. 1. accounting 2. loyalty 3. obedience 4. reasonable skill and care
loyalty
A couple of licensees you know from different firms are tired of competing with one another for the same listings. You overhear them saying, "you take the north side of town and I'll take the south, so we aren't stepping on each other's toes." You stop their conversation to tell them they're committing an antitrust violation. Which one is it? 1. Group boycotting 2. Market allocation 3. Price fixing 4. Tie-in arrangements
market allocation
What's the price at which a willing buyer and a willing seller would strike a deal given normal market conditions? 1. insured value 2. market value 3. valuation 4. value in use
market value
The Bransons have a conventional loan for which they are required to obtain private mortgage insurance. Their local real estate market has been going like gangbusters, and their house is now appraised at twice their loan balance! Will their PMI be canceled? 1. maybe, but they'll have to petition their pender 2. no, because P<O lasts for the life of the loan 3. yes, because their equity is over 20%
maybe, but they'll have to petition their lender
Datums and benchmarks are used for ______
measuring elevation
The MARIA acronym helps to identify the five tests of a fixture. Which of the following tests refers to how and whether the items is attached to the property? 1. Adaptability of the item to the land's use 2. agreement of the parties 3. Intention in placing item on land 4. method of annexation
method of annexation
Tim and Tina Wells bought a home with absolutely beautiful perennial gardens in the back. The planting were designed to bring birds, bees, and butterflies and to provide color for most of the year. When they did the final walkthrough, they were dismayed to see that many of the shrubs and flowering plants had been removed. They expected these plantings to be considered part of the real property because of the
method of annexation
Which of these is an example of bulk zoning? 1. Greenville developers must adhere to specific design parameters for construction within the city's downtown area 2. Misty Falls restricts building any structure within 15 feet of a roadway 3. Oak City developers must include subdivision open space proportionate to the overall development acreage. 4. Rushton city council members approved the location of a light industrial building within a currently-zoned agricultural area.
misty falls restricts building any structure within 15 feet of a roadway
New Day Corporations application to build a new mixed-income housing development was denied, because the town of Springfield has halted all new development until after city elections. What did Springfield enact? 1. area variance 2. Moratorium 3. Special use permit 4. use variance
moratorium
A rectangular lot is 450 feet long and 250 feet wide. How do you calculate the square footage?
multiply the length by width
Carla Ricardo has been offered her dream job in another state. She asks her current landlord to let her out of her lease early. The landlord agrees to do so, with no strings attached. Carla and her landlord have decided to terminate the contract through _______. 1. Actual eviction 2. Eviction 3. Expiration 4. mutual agreement
mutual agreement
Maxine is purchasing a small craft shop, including the underlying real estate. She applies for a commercial loan from her federally insured bank to complete the purchase. Is Maxine's transaction covered by the Real Estate Settlement Procedures Act? 1. no; commercial and business loans are exempt from RESPA requirements 2. No; RESPA only applies to loans obtained from private lenders 3. yes; all loans secured by real estate are subject to RESPA requirements
no; commercial and business loans are exempt from RESPA requirements
Jacob's family has operated a neighborhood grocery store in the community since before the land was zoned residential. Jacob continues to operate the store legally. What would you call this? 1. Mixed use 2. non-conforming use 3. residential retail use 4. special use
non-conforming use
Elaine owns a home on a flag lot behind James. Her easement for a common driveway runs through Jame's property. What kind of ownership rights does Elaine have of the driveway that runs through Jame's property? 1. absolute 2. Non-possessory 3. Possessory 4. Temporary
non-possessory
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? 1. area performance 2. improvements 3. permanence
permanence
The fewer properties on the market, the greater the scarcity. What's the effect on prices? 1. prices are pushed downward 2. prices are pushed upward 3. Prices remain the same 4. there's no correlation between scarcity and price
prices are pushed upward
The smallest property on the block is also priced lower than any others, but the higher-priced properties that surround it help to drive the property's market value up. What economic principle is at work here? 1. anticipation 2. contribution 3. progression 4. regression
progression
While Martha's paying off her loan, her lender is holding on to something that includes her name, property address, the interest rate on her loan, what the late charge amount would be, and the amount and term of the loan. When her loan is paid off, the lender returns it to Mary, marked paid in full. What is this item? 1. deed of trust 2. mortgage 3. assignment 4. promissory note
promissory note
Jayne was tired of waiting for her subcontractor to get his part of the deal done. The agreed-upon deadlines came and went, and Jayne lost money waiting for the subcontractor to come thought. She decided that if the subcontractor wasn't going to honor his commitments, neither was she, so Jayne consulted with her attorney and then terminated the contract. This is an example of ________. 1. accepting partial performance 2. mutually rescinding the contract 3. rescinding the contract unilaterally 4. suing for damages
rescinding the contract unilaterally
A requirement that all property owners in a subdivision have a six-foot privacy fence surrounding their entire property is an example of a _______. 1. deed 2. doctrine of laches 3. restrictive covenant 4.setback
restrictive covenant
Robert, who's 17 years old, signed a contract to purchase Stan's house. Stan didn't realize Robert was underage until Robert's mother figured out what was happening and called Robert's agent. Because Robert is a minor, the contract is voidable by whom? 1. Robert 2. Robert's agent 3. Robert's mother 4. Stan
robert
Water buildup, ice damming, and a fascia damaged by moisture are common _____ issues.
roof
Sheila is unable to sue her designated timeshare week this year? What will happen?
she can exchange the week for another
Sheldon and Jean are retired and bought a townhome in a community about 30 minutes from their children and grandchildren. They're excited about their new living situation because Sheldon's arthritis is getting worse and he'll no longer have to handle _____. 1. cleaning the townhouse 2. parking their cars 3. shoveling snow 4. washing windows
shoveling snow
Why are lenders required to provide the Loan Estimate and Closing Disclosure forms to loan applicants and borrowers? 1. Because interest rates may rise if the buyer doesn't close on time 2. So borrowers can compare loans and make decisions regarding the affordability of loans offered 3. So government entities can track the number of borrowers who decline certain types of loans 4. So they can collect information about loan applicants and borrowers
so borrowers can compare loans and make decisions regarding the affordability of loan offered
Nellie and Victor own a suburban ranch home and fell behind on paying their property taxes when Victor lost his job last year. Victor is working again, but they still haven't saved enough to pay their back taxes. They're worried that the county may begin foreclosure proceedings. What type of lien is this? 1. attachment 2. general 3. special assessment 4. specific
specific
The economic principle of _____ says that when there are two houses in the same neighborhood with the same size, appeal, and utility, the lower-priced one will tend to sell first. 1. correlation 2. subsitution 3. supply and demand 4. under-bidding
substitution
Marlon and Leah are interested in buying home in a new homeowner opportunity area. The 100-year-old row house was renovated and is like new on the inside. The property taxes decreased by more than $5000 last year. What's likely reason for this? 1. introductory rates 2. seller error 3. tax abatement 4. tax reassessment
tax abatement
Which statement about radon testing is true? 1. It can only be performed by a licensed professional 2. it is not necessary 3. test kits are available for purchase 4. test kits are not available to the general public
test kits are available for purchase
You're on a planning board that's discussing how to keep the city more livable by reducing building density. The subject of bulk zoning comes up. What is your response? 1. "that applies to commercial areas only 2. thats a great way to meet our objectives 3. thats crazy. were trying to reduce density, not increase it 4. that will work for residential areas, but what about commercial
thats a great way to meet our objectives
Rhonda hasn't paid her HOA dues in two years. Her attorney recently informed her that her state grants HOA-related liens are super lien status. What does that mean? 1. The HOA can collect twice the amount of the money that she owes. 2. The HOA lien takes priority over all other liens 3. The HOA must involve an administrative law judge in order to collect 4. The lien can be attached to both her real and personal property
the HOA lien takes priority over all other liens
Marcus listed his property with Home Sweet Home Realty and one of its listing agents, Ron Savage. About a month later, Ron filed for bankruptcy. Which statement about this situation is true? 1. bankruptcy has no impact on agency agreements 2. marcus can choose whether or not to continue the listing agreement with Ron 3. The agency agreement is terminated because the agent filed for bankruptcy 4. The agency agreement only terminates if the broker or the principal declares bankruptcy
the agency agreement only terminates if the broker or the principal declares bankruptcy
When a buyer is represented by a licensee, who is responsible for following up on issues identified in the inspection report to ensure that they are addressed? 1. the buyers 2. the buyers agent 3. the listing agent 4. the seller
the buyer's agent
Which of these statements about frontage is true? 1. a lot that's 75 feet wide by 30 feet deep has a frontage of 30 feet 2. the frontage for a lot that's 120 feet by 85 feet is 120
the frontage for a lot thats 120 feet by 85 feet is 120
What does an REO on a lender's assets mean? 1. the lender has agreements with real estate listing agents 2. the lender owns real estate after a foreclosure sale 3. The lender prepares property management agreeements. 4. the lender received proceeds from a foreclosure sale
the lender owns real estate after a foreclosure sale
Which of the following is a legitimate and legal way that na exclusive right-to-sell listing agreement may terminate without the seller owing a commission? 1. the listing agent stops working on the listing 2. the seller decides to sell the property without an agent 3. The seller has a change of heart 4. the seller locates a buyer
the listing agent stops working on the listing
Shalonda is looking to purchase a home for $325,000 using a conventional loan. She has $49,000 to place as a down payment on the house. Which of the following statements is true? 1. Her down payment on the loan only needs to be 3.5% 2. She must come up with antoehr $16,000 to purchase the house 3. She will be required to purchase MIP 4. The loan-to-value ratio exceeds 80%
the loan-to-value ratio exceeds 80% (49,000 / 325,000) comes to 85%)
In completing a CMA, finding a comparable property that had a quick sale may indicate which of the following? 1. its a buyers market 2. the market for similar homes is good 3. The other agent was incompetent 4. The property was priced too high
the market for similar homes is good
Real estate professionals handle many documents related to real estate transactions. Which one of the items listed below is one of the most important in detecting mortgage fraud? 1. agency disclosures 2. buyer representation agreement 3. the original sales agreement and any addenda 4. the title
the original sales agreement and any addenda
Which of the following is an example of easement termination by merger? 1. the dominant estate owner takes action that shows a clear intent to stop using the easement 2. the owner of a servient estate buys the property of the dominant estate 3. the owner of the dominant estate has an alternate route and no longer needs the easement 4. the owners of both estates decide not to use the easement
the owner of a servient estate buys the property of the dominant estate
In pricing a property, what might expired listings tell the real estate professional? 1. the price at which a property is most likely to sell 2. the price at which a property won't sell 3. the property competition 4. when the home will sell
the price at which a property won't sell
Which option is true if a deed is not recorded after closing? 1. the buyer must pay a fine to the seller 2. the entire closing is void 3. the property's legal ownership can be challenged 4. the title never changes hands from the seller to the buyer
the property's legal ownership can be challenged
Tom and Jim are neighbors. Jim wants to buy Tom's rental property. In the contract they signed, Jim is identified only as "the neighbor". Which statute or contract element does this violate? 1. legal purpose 2. offer and acceptance 3. the law of contracts 4. the statute of frauds
the statute of frauds
In which of the following scenarios can landlords enter a rental unit without notice? 1. the landlord must perform routine maintenance 2. the lessee is not home 3. the tenant in the unit below reports water coming through the ceiling from the apartment 4. the tenant is a day late in paying rent
the tenant in the unit below reports water coming through the ceiling from the apartment
Which of the following actions would result in the legal termination of an agency agreement? 1. the client wants the seller to make improvements to the property 2. The client wants to attach an addendum to the sales contract 3. There is an unexpected death in the agents family 4. The term specified in the agency agreement expired
the term specified in the agency agreement expired
The Shores are in the process of buying a beautiful 3000-square-foot home from the Bishops. They've completed all the required paperwork on their loan applicaiton. Mary's analyzing the package to determine their ability ot repay the loan. She examines the property's value, the property type, and the loan-to-value ration, among other things. Her recommendation is that the Shores' loan application be approved. What is Mary's role? 1. member of the loan committee 2. the seller 3. the seller's real estate agent 4. the underwriter
the underwriter
Which of the following is a planning and zoning issue that most prospective buyers might need to know? 1. how many members are on the zoning board 2. how to get a home occupation permit 3. The zoning designation for the given property 4. When the town comprehensive plan will be updated
the zoning designation for the given property
Which of the following statements is true regarding timeshare estates? 1. timeshare estates are illegal 2. timeshare estate can be sold or passed down to heirs 3. timeshare estates cannot be passed down to heirs 4. timeshare estates cannot be sold
timeshare estates can be sold or passed down to heirs
Vicky and Lee vacation in Cancun, Mexico every year. They purchased the right to stay in a beach condo for the first tow weeks in May, and their agreement continues for the next 10 years. They don't actually own the unit. What did they purchase? 1. Condo estate 2. Cooperative unit 3. Timeshare estate 4. Timeshare use
timeshare use
Why is it important to publicly record a deed? 1. The title insurance policy schedule of exceptions will include anything that's publicly recorded 2. Title insurance policies don't cover publicly recorded events 3. title insurance policies must be publicly recorded to be legal 4. title representatives and attorneys who perform title searches look for documents that are publicly recorded
title representatives and attorneys who perform title searches look for documents that are publicly recorded
Jennings has received a Closing Disclosure from his lender. What's the purpose of this form? 1. to detail all costs Jennings will owe at closing 2. to disclose the distribution of commissions that will occur at closing 3. to estimate closing costs 4. to estimate the seller's net proceeds
to detail all costs Jennings will owe at closing
Why does the closing agent review the purchase contract? 1. to check for contract errors 2. to ensure that all contract signatures are in place 3. to ensure that both parties are protected by clauses in the contract 4. to gather closing-related information agreed to in the contract
to gather closing-related information agreed to in the contract
What responsibility does a seller's agent have to the buyer? 1. confidentiality and honesty 2. none 3. to get the best price possible 4. to inform the buyer that the agent represents the seller
to inform the buyer that the agent represents the seller
Which of the following is a reason a lender might charge a prepayment penalty? 1. Because the lender is a subprime lender 2. to cover the cost of processing an early payoff 3. To deter buyers from ever paying off their mortgage 4. To recover the money lost in anticipated interest
to recover the money lost in anticipated interest.
What forms the boundaries of a township?
township lines and range lines
The ease with which the property can be conveyed to another describes which factor that influences value? 1. Demand 2. Scarcity 3. Transferability 4. Utility
transferability
a quitclaim deed does which of these? 1. transfers a property with only the covenant of warranty 2. transfers the property with full covenants 3. transfers without warranty any interest or title the grantor has when conveying it 4. transfers with warranty any interest or title the grandor has in the property when conveying it
transfers without warranty any interest or title the grantor has when conveying it
Because Shelby has a high prepayment penalty on her high-interest loan, she is _______. 1. able to pay off the loan early without penalty 2. Able to refinance whenever she wants without incurring any penalties 3. eligible for additional tax deductions 4. unable to refinance her high-interst subprime loan without paying a stiff penalty
unable to refinance her high-interest subprime loan wihtout paying a stiff penalty
Physical characteristics of land includes its immobility, indestructibility, and _______. 1. location 2.. Permanence of investment 3. Scarcity 4. Uniqueness (nonhomogeneity)
uniquness
What's a good policy that a buyer's agent should employ regarding contingencies? 1. Avoid contingencies because they tend to put sellers off. 2. Maximize the number of contingencies allowed 3. Use a standard set of contingencies with each buyer to avoid missing any 4. Use contingencies judiciously to protect the clients and the deal
use contingencies judiciously to protect the clients and the deal
Blake is allowed to use his property in a way that's prohibited under current zoning ordinances, because these ordinances would cause undue hardship for him. What gives him this permission? 1. area varienace 2. moratorium 3. special use permit 4. use variance
use variance
The Richards family farm is located on a 10-acre parcel of land, which is very rare to come by in their area. However, the house is rundown and in need of many repairs. Most buyers in the area are looking for a move-in ready home, which means they would need to either look elsewhere or wait several months for the home to be renovated. Which factor is most negatively impacting the value of the Richards' property? 1. demand 2. scarcity 3. transferability 4. utility
utility
What's the capitalization formula used in the income approach? 1. value=cap rate minus income 2. value=income multiplied by cap rate 3. value= income plus cap rate 4. value= net operating income divided by cap rate
value = net operating income divided by cap rate
You sign a contract to purchase a machine that will allow you to travel back in time and meet Abraham Lincoln. Assuming the time machine don't actually exist (for now), what type of contract is this?
void
Unauthorized practice of law and acting outside the scope of one's expertise are similar issues. Which of the following circumstances specifically realates to the unauthorized practice of law? 1. predicting a specific tax increase or decrease 2. predicting the return on investment for a rental property 3. Recommending specific investments 4. Writing contract addenda or additional provisions that cover unfamiliar circumstances
writing contract addenda or additional provisions that cover unfamiliar circumstances
Your 15-year-old son just signed a contract joining a health club, which costs $50 a month. Is this contract valid? 1. no, the contract is missing a legal object 2. no, the contract is missing offer and acceptance 3. no, the contract is void 4. yes, the contract is valid
yes, the contract is valid
Kennedy tends to be rather informal about her real estate business. Her daughter's teacher, Matthew, tells Kennedy that he'd like her help selling his house. Kennedy agrees and tells Matthew she'll perform all of the tasks she'd perform for any listing, though she has no written agency agreement with Matthew. Do Matthew and Kennedy have a legal agreement? 1. no. there is no signed agreement 2. no, verbal agreements are illegal 3. yes. express agreements may be verbal or written 4. yes. they have a verbal implied agreement
yes. Express agreements may be verbal or written
Imagine that you're an active real estate license as well as an architect, and you'd like to partner with a builder who's just beginning a development. Which of these creates agency coupled with interest? 1. you agree to design the houses for this builder in return for getting the listings when the properties are finished. 2. you agree to list the properties for a reduced commission once they're built
you agree to design the houses for this builder in return for getting the listings when the properties are finished
