exam smart practice exam
Kendra, a licensed Illinois agent, desires to buy a piece of property that she is anticipating listing. She must disclose this fact: A » when she first meets with the property owner and is aware of her interest B » when she presents her offer C » at no time - she is not allowed to buy the property at all D » at the closing, before she receives the deed
A » when she first meets with the property owner and is aware of her interest
An agency agreement between a seller and broker is normally created with an: A » implied agreement B » offer and acceptance agreement C » expressed agreement D » option agreement
C » expressed agreement
A buyer purchased a seller's home and assumed the seller's loan. The seller does not want to remain liable for the loan. What should the seller do? A » Put in the sales contract that the seller will not be liable anymore B » Have the buyer agree to a release of liability in the sales contract C » Arrange for the title company to give a release of liability to the seller D » Arrange for the lender to give a release of liability to the seller
D » Arrange for the lender to give a release of liability to the seller
What is it called when a person takes the cost of purchase and then recaptures this amount? A » A sinking fund B » Escrow C » Profit D » Depreciation
D » Depreciation Another word for tax depreciation is to recapture the cost of purchase over a certain time period allowed by IRS regulations.
A property did not abut a waterway. The owner established a beneficiary use through the state under prior appropriation. How could the owner gain access to the water? A » Apply for an easement by necessity B » Apply for an easement by prescription C » Put an underground pipe across the neighbor's property without permission D » Go to the neighbor and negotiate an easement
D » Go to the neighbor and negotiate an easement
Broker B owns and operates an Illinois real estate company. Which of the following is a requirement of the License Act? A » Be the managing broker for just one office B » Get a corporation license from the State of Illinois C » Hang all licenses in a public area D » In advertisements which have a list of agents' names, identify himself as the "managing broker"
D » In advertisements which have a list of agents' names, identify himself as the "managing broker"
Joseph, an Illinois real estate broker, has a new listing that is generating a lot of activity. One buyer he has personally shown it to wants to make an offer. Which of the following is INCORRECT? A » Joseph could sell the property as a dual agent and receive both sides of the commission B » Joseph could sell the property declaring "no agency" to the buyer and receive both sides of the commission C » Joseph could refer the buyer to another agent to write the offer and receive the listing commission as well as a referral fee from the selling side D » Joseph could become a "transactional agent", represent neither side, and receive both sides of the commission
D » Joseph could become a "transactional agent", represent neither side, and receive both sides of the commission Illinois does not have "transactional agents." The other three scenarios are all possible, assuming that proper disclosures are made in each case.
Agent A wants to bring in new clients. He offers his former clients $100 for each lead they send him who ultimately buys or sells real estate. Is this legal in Illinois? A » Yes, since he is offering the money to a client B » Yes, as long as he only gives them three payments a year, totaling less than $1,000 C » No, finder's fees cannot exceed $25 D » No, finder's fees are illegal
D » No, finder's fees are illegal
A person has had a mental disability in the past but has recovered and is now mentally competent. Which statement is true under the 1988 Fair Housing Amendments Act? A » The 1988 Act does not cover any disabilities B » The 1988 Act does not cover mental disabilities C » This person would not be covered as the 1988 Act only applies to current disabilities D » This person would be covered as the 1988 Act applies to any disability whether a person is recovered or not
D » This person would be covered as the 1988 Act applies to any disability whether a person is recovered or not
What is the purpose of an appraisal? A » This is a scientific inexact way of determining value B » To give an average value derived from various sources C » To give a determination of value D » To give an estimate of value
D » To give an estimate of value
An Illinois rental finding service is employed by Helena to find her a suitable apartment. What can Helena expect? A » To receive lead-based paint and mold information before looking at any units B » To pay an upfront commission, not to exceed 5% of the first month's rent C » To only look at units in newer buildings D » To sign a contract which specifies obligations of the service and fees to be paid
D » To sign a contract which specifies obligations of the service and fees to be paid
A judgment against a seller has been recorded on the public record. A buyer is interested in purchasing the seller's property but does not know about the judgment. The buyer is said to have: A » actual notice B » preventive notice C » corrective notice D » constructive notice
D » constructive notice Any item recorded on the public record provides constructive notice to the public; in other words, any member of the public has access to the information
An agency agreement can always be terminated by: A » the seller unilaterally B » the broker unilaterally C » the salesperson and seller D » mutual agreement by all parties to the contract
D » mutual agreement by all parties to the contract
requires sponsoring broker Kathy to: A » publish a notice of termination in the local REALTOR® publication B » terminate all of his listings C » immediately get his office keys and MLS keypad D » notify DFPR within 24 hours
D » notify DFPR within 24 hours
What is the main difference between a freehold estate and a non-freehold estate? A » A freehold estate always involves ownership B » A freehold estate ends when a life estate terminates C » A freehold estate is always inheritable D » A freehold estate is for a fixed period of time
A. A freehold estate always involves ownership
Agent A runs an ad that says, "Call me today for a free market analysis." Regarding this ad, which of the following is true? A » There is nothing potentially wrong with this language B » Agent A cannot put conditions on this offer when someone calls C » Agent A could charge for the analysis under some conditions D » Agents are not allowed to offer anything for "free"
B » Agent A cannot put conditions on this offer when someone calls
A buyer made an offer on a house and the seller accepted the offer as written. The buyer wanted some of the seller's personal property to remain with the house. The personal property would transfer to the buyer under which of the following conditions? A » If it fit into a particular spot in the house B » If it was included in the contract C » If it was verbally stated by the listing broker D » If it was verbally agreed to between the seller and buyer
B » If it was included in the contract
A property manager is contemplating renting a space to a tenant with a mental disability. The manager is worried about this tenant posing a threat to the other tenants in the building. Under federal guidelines, what should the property manager do? A » Distribute leaflets to the other tenants about the new tenant B » Inform the property owner if the manager suspects any problems C » Confer with a manager of a condominium to get another opinion D » There are no federal guidelines on this issue
B » Inform the property owner if the manager suspects any problems
A child owns a life estate and sells the property to a friend. Which of the following statements is true regarding the friend's estate? A » It ends when the friend dies B » It ends when the child dies C » It becomes a fee absolute when the child dies D » It becomes a fee absolute when the friend dies
B » It ends when the child dies A life estate can be sold; however, the person who bought the property will eventually lose it when the life tenant dies (in this case, the child).
Andrew Carpenter has constructed a new deck on a home in Heyworth, Illinois. The owners have refused to pay the final $500 due Andrew. To assure he is paid, he must do which of the following? A » Place a materialman's lien on the property within 90 days B » Place a mechanic's lien on the property within 120 days C » File a lawsuit within 30 days D » File an arbitration request within six months
B » Place a mechanic's lien on the property within 120 days
An offer to purchase contract was contingent upon the buyer receiving a loan. The buyer was not able to obtain financing. The buyer informed both the seller and the broker of the loan denial. Which of the following statements is true? A » The broker must pay cash for the property B » The broker must return the earnest money to the buyer C » The seller may have cause to sue the buyer for specific performance D » The seller may keep the earnest money as a form of liquidated damages
B » The broker must return the earnest money to the buyer
R made a promise to sell the property to T. T, however, was only obliged to purchase the property if a certain condition was met. Which of the following statements would be true? A » This is a unilateral contract where R does not have to perform B » This is a unilateral contract where T does not have to perform C » This is a bilateral contract and would be binding on both parties D » This is a non-enforceable agreement
B » This is a unilateral contract where T does not have to perform
A six-unit apartment complex in an area that is zoned R-1 for single family residential property only would be an example of a: A » variance B » non-conforming use C » building code D » master land plan
B » non-conforming use where a property is used for something before a zoning change is allowed to continue
Listing Company needs new listings. They run an ad offering $100 cash to anyone who lists with them in the next 30 days. Are they violating Illinois License Law? A » Yes, they may not give out cash B » Yes, any kickbacks are illegal C » No, inducements to clients to buy or sell real estate are legal D » No, as long as there is a specific time limit on the offer
C » No, inducements to clients to buy or sell real estate are legal
An Illinois home seller has her home currently listed with Broker A. She is unhappy with the service she is receiving, so she calls Broker B. What are Broker B's obligations? A » Broker B can look at the property, complete a market analysis, but may not induce the seller to break the original listing contract B » Broker B should encourage the seller to withdraw the current listing before getting signatures on the new listing C » Broker B can do nothing until the listing has expired D » Broker B should call Broker A and get permission to look at the property
A » Broker B can look at the property, complete a market analysis, but may not induce the seller to break the original listing contract
A seller lists with Broker X. Broker Y sells the property. To whom does the seller owe a commission? A » Broker X B » Broker Y C » Broker X and Broker Y's salesperson D » Broker X and Broker Y
A » Broker X The seller would pay the listing agent (X) who would then in turn pay the selling agent (Y).
Legislation that requires a survey of each parcel and a plat of the subdivision whenever an owner divides a parcel into two parts or more, any of which is less than five acres, is called the: A » Illinois Plat Act B » Illinois Land Sales Registration Act C » Illinois Subdivision Act D » Illinois Real Property Disclosure Act
A » Illinois Plat Act
Capitalization refers to which valuation approach? A » Income B » Market data C » Cost D » Gross rent multiplier
A » Income
A subordination clause in a mortgage does which of the following? A » It changes the priority of the mortgages B » It cancels the mortgage after the final payment C » It prevents the loan from being assumed D » It calls the loan due and payable upon nonpayment
A » It changes the priority of the mortgages
In the cost approach to value, which of the following would LEAST affect depreciation? A » Land value going down B » Physical deterioration to a building C » Functional obsolescence on a property D » Exterior obsolescence where a property is next to a toxic dump site
A » Land value going down Land value going down does not affect depreciation as land never depreciates.
Agent A is currently working with Buyer B, showing B a variety of homes. Agent A then decides to list their own personal residence. Buyer B is interested in the home and wishes to make an offer. What should Agent A do? A » Refer Buyer B to another agent to write the offer B » Write the offer, declaring no agency relationship C » Write the offer after fully explaining dual agency D » Refuse to sell them his personal residence under any circumstances
A » Refer Buyer B to another agent to write the offer Illinois does not allow agents to be a dual agent on their own transaction.
Agent Bahran sells an apartment building to a buyer-client. The client then wishes Bahran to help her draft leases for potential tenants. What should Bahran do? A » Refer the client to an attorney; do not assist B » Refer the client to Bahran's sponsoring broker for help C » Go ahead and help as this is allowed under license law D » Go ahead and help as leases aren't like sales contracts
A » Refer the client to an attorney; do not assist
A property was purchased for $43,950 with an assessed value of $39,950. If the tax rate was $3 per $1000, what were the annual taxes? A » $119.85 B » $131.85 C » $157.98 D » $180.00
a. $119.85 39,950 / 1000 = 39.95 39.95 x 3 = $119.85
A buyer writes a contract with a contingency that says if a certain thing does NOT happen, the buyer does NOT have to purchase the property. The contract does not close due to this contingency. Normally, any earnest money should be given to the: A » buyer B » seller C » broker D » state
a. buyer
A foreclosure on a property is taken by: A » court action B » adverse possession C » a creditor D » an executor
a. court action
Regarding office policies in Illinois: A » each office must have a written office policy manual B » offices must have written OR oral policies C » office policy manuals are standard and dictated by state law D » no office policy manuals are required
a. each office must have a written office policy manual
What type of interest does the buyer receive in the property after the seller accepts the offer? A » Equitable B » Easement C » Record D » Equity
a. equitable interest
A seller told a broker, "If you find me a buyer, I'll pay you a commission. However, I don't want to sign a formal agreement." This type of agency would be classified as an: A » expressed B » implied C » executory D » executed
a. expressed
A violation of the federal fair housing laws: A » may be a criminal act B » must involve actual damages C » is permissible under certain circumstances D » must be filed with HUD within three years of the act
a. may be a criminal act
A husband and wife go to a casino and lose $200,000, mostly on a credit line they opened with the casino. The casino starts foreclosure on the couple's home. If the foreclosure is successful, how much will the couple be allowed to keep from the equity in their home? A » $ 7,500 B » $30,000 C » $ 15,000 D » $ 0
b. $30,000 This law was revised on 1/1/06. Illinois law allows $15,000 per family member protected from unsecured creditors, up to $30,000.
Salvador recently completed his Illinois real estate class. How long does he have to pass the state exam? A » one year B » two years C » three years D » four years
b. 2 years
A fixture would be defined as: A » chattel B » an item that is attached to a building C » personal property D » covenants that run with the land
b. an item that is attached to a building chattel is personal property
A for-sale-by-owner lists a property with a broker. The broker puts the listing in the multiple listing service. The seller continues to advertise the property themselves. The seller then finds a buyer for their own property but still owes a commission to the broker. This must have been a(n): A » exclusive agency listing B » exclusive right to sell listing C » open listing D » net listing
b. exclusive right to sell listing
Which of the following is an example of involuntary alienation? A » Will B » Foreclosure C » Dedication D » Deed
b. foreclosure
What is the best definition of good consideration? A » Money B » Love and affection C » A promise to pay D » Assets
b. love and affection Good consideration would be love and affection. Valuable consideration would be (1) money, (3) a promise to pay or (4) assets.
A contract that begins as uni-lateral but could end up being bi-lateral is a(n): A » sales contract B » option contract C » offer to purchase contract D » listing contract
b. option contract
What does a person have who can sign legal papers for another person? A » Attorney-in-fact B » Power of attorney C » Ostensible agency D » Attorney at law
b. power of attorney
A deed restriction would apply to the: A » current owner only B » present and future owners C » original developer D » homes association
b. present and future owners
In order for a real estate sales contract to be valid, it must include a: A » survey B » property description C » description of the personal property D » commission
b. property description
A three year old property appraised for $105,000. If it depreciated an average of 10% per year, what was the original value of the property? A » $ 31,500 B » $136,500 C » $150,000 D » $350,000
c. $150,000 105,000 / 70% = 150,000
A person bought a lot for $28,000 and then added improvements in the amount of $150,000. The owner wanted to make a profit of 5% on the lot and 40% on the improvements. What would the sale price have to be? A » $210,000 B » $228,000 C » $239,400 D » $258,100
c. $239,400 28,000 x .05= 1,400 + 28,000 = 29,400 150,000 x .4 = 60,000 + 150,000= 210,000 210,000+29,400 = 239,400
A broker sold a commercial property for $1.5 million. The broker earned a total commission of $87,000. If the broker was paid 6% on the first $1.2 million of sales price, what was the broker's rate of commission on the amount of sale price over $1.2 million? A » 3% B » 4% C » 5% D » 6%
c. 5% 1,200,000 x .06 = 72,000 87,000-72,000 = 15,000 1.5 mil - 1.2 mil = 300,000 15,000 / 300,000 = 5%
False information was given to induce a person to enter into a contract. Which of the following legal effects BEST describes this contract? A » Valid and enforceable B » Void C » Voidable by the misrepresented party D » Voidable by either party
c. Voidable by the misrepresented party
Which of the following would transfer legal use but not ownership of a property? A » A deed restriction B » An encroachment C » An easement D » A lien
c. an easement
A property was sold in a state using a trust deed as the form of security. Who benefits MOST from the holding of the trust deed? A » Trustee B » Trustor C » Beneficiary D » Landlord
c. beneficiary The beneficiary is the lender.
A person dies with no valid will and no heirs. The state government could claim ownership of this property through what government right? A » Eminent domain B » Taxation C » Escheat D » Police power
c. escheat
Illinois licensees, who do NOT represent a potential buyer, must disclose which kind of defects? A » All defects B » None, unless representing the buyer C » Latent defects D » Patent defects
c. latent defects
A potential buyer calls an Illinois real estate office and an unlicensed receptionist answers the phone. The buyer asks for the price, plus the number of bedrooms and bathrooms in a new listing they have driven past. The receptionist: A » cannot legally answer any of these questions B » may quote the listed price and that is all C » may answer these questions, looking at the MLS printout D » should not be answering the phone
c. may answer these questions, looking at the MLS printout It is allowable for unlicensed individuals working in a real estate office to quote information directly from published information.
Agent Jon is looking for new clients. He offers a $50 gift card to anyone who will send him a name of someone looking to buy or sell real estate. Is this legal in Illinois? A » Yes, as long as it is not cash B » Yes, as long as his managing broker is involved C » No, this is illegal in Illinois D » No, as any type of referrals in Illinois are illegal
c. no, this is illegal in Illinois Referral fees may only be paid between sponsoring brokers.
With the exception of real estate taxes, liens generally are repaid at a foreclosure sale based on the: A » dollar amount of the lien B » actual need of the creditors involved C » recording date of the lien D » original date of the agreement that led to the lien being filed
c. recording date of the lien
Every time share purchaser must be given a public offering statement in Illinois. Upon receiving the statement, or upon signing a contract, whichever is later, the purchaser has how many days to cancel the contract? A » two days B » three days C » three business days D » five business days
d. 5 business days Purchasers have five business days to cancel and must get their money back within 20 days.
A prospective buyer wanted to have the right to purchase a home at a set price within the next 90 days but did not want to be obligated to purchase it. Which of the following documents would allow the buyer to do this? A » Quitclaim deed B » Estoppel C » Right of first refusal D » Option
d. Option - an option gives the optionee the right to buy at a specific price within a specific time period
In a land contract or contract for deed, the seller who retains the fee simple title is referred to as the: A » optionor B » optionee C » vendee D » vendor
d. Vendor seller is always called a vendor!!!!
Under the federal fair housing laws, which of the following phrases would be illegal in advertising? A » Midtown property B » Seniors only C » Wheelchair accessible D » Adult building
d. adult building
A listing broker has to exercise all the following duties to a seller EXCEPT: A » due care B » accountability C » obedience D » management
d. management
In advertising for prospects, all of the following terms could be used EXCEPT: A » political party affiliation B » military personnel C » upper bracket buyers D » national origin
d. national origin
When a tenant pays taxes and insurance in addition to normal rent, this would be called a: A » graduated lease B » percentage lease C » gross lease D » net lease
d. net lease
An item in a house that is usually easy and inexpensive to remedy is: A » a structural foundation issue B » a roof replacement C » major water leaks in a basement D » radon gas
d. radon gas
An agent is working with buyers wishing to purchase an older home in a deteriorating neighborhood. Both of the buyers have good incomes and are well qualified. The buyers have been turned down by three lenders for a loan on the property. The lenders may be guilty of: A » steering B » blockbusting C » price fixing D » redlining
d. redlining
Where would one look to find out what type of structure is allowed to be built on a certain piece of ground? A » Title policy B » Plat map C » Abstract D » Zoning ordinances
d. zoning ordinances
Mr. Smith sells his Illinois home for $151,050. He will be required to pay how much in Illinois transfer taxes A » $ 227.25 B » $ 226.58 C » $ 454.50 D » $ 453.16
A $227.25 151,050 --> 151,500 / 500 = 303 x $.75 = 227.25
CERCLA would normally apply to which of the following situations? A » A residential property with a buried oil tank B » A buyer who was discriminated against based on race in obtaining a loan from a lender C » A person was discriminated against in buying property based on national origin D » A lender was loaning money to a borrower with an excessive high interest rate
A » A residential property with a buried oil tank Comprehensive environmental response, compensation and liability act
A buyer purchased a property for $60,000 putting 15% down and paying two discount points. How much in dollars were the points? A » $1,020 B » $1,200 C » $1,320 D » $1,500
B. $1,020 $60,000 x 85% = $51,000 loan x 2% = $1,020.
An industrial building sold for $535,000. The listing broker charged a 4.5% commission agreeing to cooperate with other brokers and split the commission 50/50. If a cooperating broker sold the property, how much would each of the brokers receive? A » $10,535.50 B » $12,037.50 C » $24,075.00 D » $28,975.00
B. $12,037.50
A buyer's agent presents an offer to a seller. The buyer's agent is not acting as a dual agent. In relation to the buyer's agent, the seller would be a(n): A » client B » customer C » principal D » prospect
B. Customer
A land contract is also referred to as a(n): A » right of first refusal B » installment contract C » option contract D » listing contract
B. Installment contract or contract for deed
A loan that is paid off either by the sale of property or death of the borrower is called a(n): A » shared appreciation mortgage (SAM) B » reverse annuity mortgage (RAM) C » growing equity mortgage D » package mortgage
B. Reverse annuity mortgage (RAM) A reverse annuity mortgage is where people 62 years of age or older can receive monthly payments from a lender, thus building back up a loan against their property.
A property that contains asbestos insulation wrapped around pipes would be best remedied by: A » removing the insulation B » encapsulation C » replacing the pipes D » installing a water filtering system
B. encapsulation
A seller and buyer enter into a sales contract on a property. The seller breaches the agreement causing the buyer to sue for specific performance. If the buyer wins this lawsuit, the seller will have to: A » pay damages B » follow through with the original contract C » return the earnest money to the buyer D » rescind the contract
B. follow through with the original contract
A property manager is compensated at 10% of the gross income. The total rents collected were $12,000 with expenses of $600 for utilities, $350 for insurance, $219 for repairs and maintenance, and $60 for advertising. What was the property manager's compensation? A » $1,000 B » $1,077 C » $1,200 D » $1,229
C » $1,200 12,000 (gross income) X 10% = $1,200
A buyer took out a $6,000 loan for 10 years at 10.5% interest. The buyer made principal payments of $75 a month on the loan in addition to interest. What would be the principal loan balance after 6 months of payments? A » $5,000 B » $5,235 C » $5,550 D » $6,000
C » $5,550 75x6 months = 450 6,000-450 = 5550
An Illinois home seller has AIDS. The listing agent is aware of this fact, but does not disclose it to potential buyers or to other agents. Is this a violation of license law? A » Yes, this is a required disclosure as AIDS is a latent defect B » Yes, this is a required disclosure as it could affect future owners C » No, this is not a required disclosure - AIDS would fall under "handicap," a protected class, and should not be disclosed D » No, this is not a required disclosure - it is the listing agent's decision whether to disclose this information
C » No, this is not a required disclosure - AIDS would fall under "handicap," a protected class, and should not be disclosed These conditions would fall under "handicap" from a fair housing standpoint.
When a contract is signed between a buyer and a seller, the buyer is known to have received equitable title upon the happening of which of the following events? A » Buyer making the offer B » Recording of the deed C » Signing of the agreement by the buyer and seller D » Conveyance of the deed
C » Signing of the agreement by the buyer and seller when the buyer and seller sign the contract, the buyer has the right to get title at closing.
Some out-of-towners had inherited some property. They contacted a local broker to sell the property. The out of town owners wanted to list the property for $50,000. The broker knew that similar properties in that area were selling for $80,000. What should the broker do? A » Buy the property personally because of the profit potential B » List the property for $50,000 as a broker must be obedient to a client C » Suggest a market analysis for the seller to estimate the current value of the property D » Require a professional appraisal be done before listing the broker
C » Suggest a market analysis for the seller to estimate the current value of the property
From which of the following persons may a salesperson lawfully receive a commission? A » Seller B » MLS C » The salesperson's broker D » A cooperating broker
C » The salesperson's broker
From whom does a salesperson receive a commission? A » Owner B » Multiple listing service (MLS) C » The salesperson's own broker D » A cooperating broker
C » The salesperson's own broker
Which of the following statements would be true of a partially amortized loan? A » The amount going toward interest increases as time goes along B » At the end of the loan, there is nothing left to be paid off C » There are generally smaller monthly payments D » The loan payments consist of interest only
C » There are generally smaller monthly payments
A listing contract with a seller is about to expire. The broker has a buyer who is interested in the property but is not quite ready to make an offer. If the broker wants to be protected as far as earning commission if this buyer wants to purchase the property at a later date, the broker would need to do all of the following EXCEPT: A » make sure there is a protective period clause in the listing B » make sure the protective period clause covers a certain number of days C » give a notice in writing to the buyers that the buyers are on a protective period list D » give in writing to the sellers the names of all buyers who have looked at the property through the broker
C » give a notice in writing to the buyers that the buyers are on a protective period list To be protected, however, a broker must (1) have a protective period clause in the listing, (2) have the protection for a certain number of days and (4) give to the seller a list of buyers names who have seen the property already.
A right or privilege one has to use the land of another is best referred to as a(n): A » lien B » encroachment C » servitude D » condominium
C » servitude - the right to use the land of another
If done for another and for compensation, all of the following real estate activities require an Illinois real estate license EXCEPT: A » property management B » consulting C » time share exchanging D » supervision of rent collection
C » time share exchanging
private land uses are normally dictated by: A » title insurance B » appraisers C » private deed covenants D » judges
C. Private deed covenant
The main difference between a cooperative and condominium is that: A » a cooperative owner obtains fee simple title to the unit B » a cooperative owner pays their own taxes and mortgage on the unit C » a condominium owner owns and finances their own unit D » a condominium owner receives a proprietary lease
C. a condominium owner owns and finances their own unit
What does a standard title insurance policy cover? A » Questions of survey B » Rights of parties in possession C » Unrecorded liens D » Recorded title defects and liens
D » Recorded title defects and liens
A person was applying for a new VA loan on a single family home purchase. Which federal law was passed to ensure the buyer received disclosure of the total closing costs? A » Truth-In-Lending Laws (Regulation Z) B » The Equal Credit Opportunity Act C » Usury laws D » The TILA-RESPA Integrated Disclosure Rules (TRID)
D » The TILA-RESPA Integrated Disclosure Rules (TRID)
A broker had a piece of property listed for $90,000. A buyer submitted an $89,000 offer. Which of the following statements is correct regarding this situation? A » The owner must accept or reject the offer in writing B » The buyer cannot revoke the offer until it has been accepted or rejected C » The broker should NOT present such a low offer D » The buyer can revoke the offer until it is accepted
D » The buyer can revoke the offer until it is accepted
Which of the following is true regarding the Residential Real Property Disclosure Act? A » It covers all residential properties with no exemptions B » It does not allow for rescission under any circumstances C » It is a warranty against future defects D » The form should be completed by the seller and not the agent
D » The form should be completed by the seller and not the agent
Which of the following would NOT be a protected class under the federal fair housing laws? A » A person with children under 18 B » A person with a mental handicap C » A person with a different national origin D » A person currently using illegal substances
D. A person currently using illegal substances
A judgment against a seller has been recorded on the public record. A buyer is interested in purchasing the seller's property but does not know about the judgment. The buyer is said to have: A » actual notice B » preventive notice C » corrective notice D » constructive notice
D. Constructive notice
A mortgage contingency usually includes all of the following items EXCEPT: A » the amount of the mortgage B » commitment date C » maximum interest rate D » name of the lending institution
D. name of the lending institution At the time of contract, the buyer usually does not know who the lender will be
Agent A leaves Brokerage Company B. Regarding Agent A's commissions that are still owed on pending sales: A » they should be forward to Agent A's new sponsoring broker B » they will be kept by Company B C » they will be split 50-50 D » they will be paid directly to Agent A, per Agent A's contract
D. they will be paid directly to Agent A, per Agent A's contract