ce shop practice exam incorrect

William is a real estate licensee who's preparing a sale agreement that will include an unusual circumstance. What's the best course of action?

Consult an attorney.

Thad received multiple offers on his property and is reviewing them with his agent Nora. All of the offers have at least one contingency. Nora recommends that they reject the second offer, because it has a ______ contingency which is generally the most risky.

Home sale

Georgina is an escrow agent who's holding funds for several transactions. Which of these statements about how she'll disburse these funds is true?

If the transaction doesn't close, Georgina will disburse the earnest money as instructed by the parties or according to state law.

Which of these statements best represents what happens after a federal fair housing complaint is made?

A fair housing specialist will review the complaint.

Giant Industries has a $674,232 gross operating income, operating expenses of $329,129, and other expenses totaling $38,719. What is the net operating income?

$345,103 gross income- operating income (not other expenses

What's the maximum penalty for each violation of federal do not call rules?

$41,484

Camille, a buyer, wants to change the price already agreed to in a sales contract. She should use a(n) ______.

Amendment

What does the Federal Trade Commission consider to be an unfair ad? Top of Form

Any ad or business practice that causes or is likely to cause injury

Mary has agreed to buy her mother's house when her mother is finally ready to move to a senior living community. They sign a purchase agreement, but when Mary has to move because of work, Mary signs her rights in the contract over to her sister Tina. Mary may still owe money if Tina can't come up with the agreed-upon funds. What's happening in this scenario?

Assignment

A trustee is holding title to Cassandra's house until the loan is paid in full. Which type of security instrument was used?

Deed of trust

The Truth in Lending Act requires lenders to make certain ______ to consumers.

Disclosures

LaTonya's aunt left her a bungalow on the outskirts of the city. For many years, it was the place for family holiday gatherings, and LaTonya's sister was even married there. That's why her family is so upset to learn that she plans to sell the bungalow as soon as she gets it cleaned out. Which real property right allows her to sell the property?

Disposition

Easements are a type of encumbrance that can affect a property. Which of the following is true about easements?

Easements are often established by a written agreement between the parties.

Your clients, the Harpers, live in an Area B that's adjacent to Area C; Area C was recently downzoned. If the Harpers believe the rezoning has harmed their property values, what can they do?

File a claim of inverse condemnation.

What does the income approach to value rely on when valuing properties that are five or more units?

Gross income multiplier

A landlord has an available unit, but refuses to show it to several applicants. These applicants are all single women with children; the applicants who are shown the apartment are all individuals or couples without children. In what way is the landlord violating fair housing law?

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

When appraisers look past how a property is being used to determine a more optimal function, what are they determining?

Highest and best use

Simon recently passed away. He owned title to his property in severalty, as a fee simple absolute estate. What will happen to his property?

His heirs, as described in his will or the state law of descent, will get the property.

Joan and Martha are entering into an 18-month lease with landlord Roger. Which of these statements is true?

Leases for periods of more than one year must be in writing.

Talking the consumer into refinancing over and over so a lender can charge fees is ______.

Loan flipping

Tim and Tina Wells bought a home with absolutely beautiful perennial gardens in the back. The plantings 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

Home inspector Maura was walking Thad through a property inspection. The frame house, on a slab foundation, had mulch piled up about 18 inches next to the house. Why was Maura noting this as a concern?

Mulch next to wood siding may lead to wood rot.

Which clause in the listing agreement gives the listing broker the authority and obligates the broker to market the property to other brokers?

Multiple listing clause

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

Ordinary

A closing agent has several duties to perform both before and after the closing. Which of the following is a task the closing agent must complete after the closing? Top of Form Obtain title insurance

Pay the existing loan off

On a closing statement, ______ will go into the seller's credit column and the buyer's debit column.

Prepaids

What does PITI stand for?

Principal, Interest, Taxes, Insurance (PITI)

Hal and Sara own a 212-acre farm. Their property is landlocked but they have permitted water rights to use the stream located six miles away for irrigation purposes. What kind of water rights do they hold?

Prior appropriation

The Hendersons don't have enough money to make the full 20% down payment their lender requires. To close the sale, the seller is willing to finance a loan for the gap between the home's list price and the amount the institutional lender is willing to loan. What's this type of financing called?

Purchase money mortgage

Seller Gina feels awful that Martha, who was going to buy her property, lost her job. Gina decides to ______ Martha from the purchase contract.

Release

Which one of the following types of ownership termination allows each tenant to have a specific, divided portion (partition) of the property exclusively?

Termination of co-ownership by partition

Which of these is a TRUE statement regarding truth in advertising violation penalties?

The Federal Trade Commission determines the severity of the penalty based on the severity of the violation.

Colleen and Judy purchased a dilapidated townhome in an estate sale. Due to their fix-up work and the current economy, the property value has skyrocketed. They decide to sell it to get their equity out of it. After they list it, a woman comes forward, saying she is an heir to the previous owner and lays claim to the property. Which general warranty deed covenant protects Colleen and Judy?

The covenant of warranty

Licensee Kennie Mae's neighbor, Buzz, wants to sell his house but doesn't want to sign an agency agreement. Kennie Mae works with Buzz to list and show the property and negotiate offers. After the property sells, Buzz discovers that Kennie Mae didn't present all offers to him, and he sues Kennie Mae. Kennie Mae claims that because she didn't have an agency agreement with Buzz, she wasn't required to perform all fiduciary duties. What legal principle applies here?

The doctrine of estoppel keeps Kennie Mae from disavowing the agency relationship because she provided agency tasks for Buzz.

Tom and Jim are neighbors. Jim wants to buy Tom's rental property. In the contract that Tom and Jim sign, Jim is identified only as "the neighbor." Which statute or contract element does this violate?

The statute of frauds

n which of these situations would the property most likely be conveyed with a trustee's deed?

Tim's property will be sold at auction in a foreclosure action. Bottom of Form Top of Form TLC Lending is selling an REO property.

ennings has received a Closing Disclosure from his lender. What's the purpose of this form?

To detail all costs Jennings will owe at closing

The ______ can offer direct loans to farmers and ranchers. The loans are funded by congressional appropriation.

USDA Farm Service Agency

You sign a contract to purchase a machine that will allow you to travel back in time and meet Abraham Lincoln. What type of contract is this?

Void

As part of the sales contract, Garth, the seller, was supposed to provide a copy of the seller's disclosure to the buyer, Melanie, but he failed to do so. What type of contract is this?

Voidable

Unauthorized practice of law and acting outside the scope of your expertise are similar issues. Which of these circumstances specifically relates to unauthorized practice of law?

Writing contract addenda or additional provisions that cover unfamiliar circumstances Bottom of Form

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 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?

Yes. Express agreements may be verbal or written.

Katherine is purchasing a second home as an investment/vacation property. She has a large down payment, and the seller is financing the rest of the purchase. Which of these statements is true?

he CD and LE aren't required in a seller-financed transaction.

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. What's the total amount of interest he'll pay over the course of the loan?

$608,292.40

Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with cooperating brokerages. Last month, he earned $12,239.50 in commissions from his home sales, which totaled $538,000. What is the brokerage's commission rate?

6.5%

When property changes hands, the deed is recorded. There's a fee for recording, so why would anyone choose to pay this fee? It impacts who owns the property. It protects against foreclosure. It puts the public on notice regarding ownership. It's required by law.

80

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

Comparables

Quentin Jones brought an application before city council to build a shopping mall on 17 acres south of town that is currently not zoned. The council referred him to the planning commission, which will review the application in light of the city's ________.

Comprehensive plan

Which one of the following statements about the Agreement of Sale is true?

It is a legally binding contract.

When property changes hands, the deed is recorded. There's a fee for recording, so why would anyone choose to pay this fee?

It puts the public on notice regarding ownership.

Which of these is NOT an example of price fixing?

Jake's firm agrees to charge all clients a listing commission of between 2% and 2.5%.