PRACTICAL APPLICATIONS 6
The Licensee Buyout Addendum contains the following verbiage EXCEPT: 1 Seller is responsible for marketing and closing expenses 2 Seller acknowledges that in entering into the Contract, Buyer is exposed to possible losses and expenses. 3 The Contract may be terminated at any time by Seller upon written notice to Buyer. 4 Any termination of the Contract shall not affect the listing contract for the Property (Listing Contract).
Seller is responsible for marketing and closing expenses A is the only verbiage listed NOT in the Licensee Buyout Addendum.
The seller agreed to clean and certify the furnace prior to closing. 1 The Title Company should verify it was done 2 The lender should verify the work was done 3 The seller or listing broker should provide a receipt and certification at closing 4 The inspector should verify the work was done
The seller or listing broker should provide a receipt and certification at closing A receipt from a licensed professional, i.e., a furnace and heating technician, is a good way to verify that work was done that may not be easily detected by the naked eye.
The selling agent observes that the names are misspelled on the warranty deed. What needs to happen? 1 The selling agent should require that the names be corrected 2 The selling agent should not worry, as it is recorded in the county 3 No one else noticed the error, so the closing should just carry on 4 The selling agent should insist that the people change their names
The selling agent should require that the names be corrected The brokers are to verify that the information on the closing documents is correct. This includes names.
The approved Agreement to Amend/Extend contract form is used: 1 To notify the Seller of any change in deadlines 2 Add information to an offer that does not belong in "additional provisions" 3 To notify the Buyer of a deadline they missed 4 To get mutual agreement of the parties to any change in a deadline
To get mutual agreement of the parties to any change in a deadline The Agreement to Amend/Extend Contract is used only to amend the terms and conditions of a sales contract while it is in process. You cannot amend a contract once it is complete (AKA "executed"), or terminated, or expired.
The three major evidences of title are: 1 abstract and opinion, title insurance, Torrens certificate 2 abstract and opinion, personal representatives, title insurance 3 Torrens certificate, general warranty, title insurance 4 general warranty, special warranty, abstract and opinion
abstract and opinion, title insurance, Torrens certificate The three major evidences of title are an abstract and opinion, title insurance, and a Torrens certificate.
A final walk-through is: 1 required by law 2 agreed to by contract 3 required by the Real Estate Commission 4 required by the listing agent
agreed to by contract A walk-through is not required.
According to the Licensee Buyout Addendum to the Contract to Buy and Sell, when does responsibility extend beyond the licensee to the brokerage firm? 1 when the buyout date arrives 2 when the buyout is for the personal use of the principal broker 3 only if the listing associate is unable to perform the buyout 4 if the Employing broker signs at the bottom of the addendum
if the Employing broker signs at the bottom of the addendum If the managing or employing broker signs the Licensee Buyout Addendum, then the brokerage company is responsible. According to the form, this is the only specification for responsibility
If scheduling a closing on the last day of the month, it is wise to: 1 wait until the day before closing to schedule a time and place 2 schedule the closing time the day of closing 3 schedule the closing as soon as possible, as the times fill up fast 4 schedule the closing 60 days ahead of time
schedule the closing as soon as possible, as the times fill up fast Closings should be scheduled as soon as possible by the party scheduling the closing.
To comply with the dates in the contract to purchase, the title commitment: 1 should be ordered by the listing agent as soon as all the parties accept the contract 2 should not be ordered until the date in the contract 3 can be ordered any time, so long as the purchaser receives it before closing 4 should be made after the buyer's loan commitment date.
should be ordered by the listing agent as soon as all the parties accept the contract Dates are very important. Title commitments must be ordered in a timely fashion, in order to meet the required contract dates.
A home inspection may include all of the following except: 1 furnace inspection 2 roof inspection 3 radon testing 4 soil testing
soil testing A home inspection should involve all the mechanical aspects of the property and may include radon, termite or pest inspections as well.
The purchase contract called for a homeowner's warranty. There are no charges reflecting the homeowner's warranty on the settlement statement, and buyer and selling agent have not said anything about it. 1 the brokers involved in the transaction are responsible to verify that it is being provided at the time of closing 2 the listing broker should not mention it, as it will save the seller money 3 it is the title company's responsibility 4 it is the lender's responsibility
the brokers involved in the transaction are responsible to verify that it is being provided at the time of closing The broker's are to verify the terms of the contract with the closing documents.
If the title deadline date is not met: 1 it is not important 2 the seller could be in default 3 the buyer could be in default 4 the buyer can terminate the contract
the buyer can terminate the contract Buyer can terminate the contract.
A house is closed on July 16. The taxes of $546 for the current year have been paid, what is the prorated portion that the buyer owes the seller: 251.31 252.81 293.19 294.69
252.81 Divide the total taxes $546 by 365 (number of days in the year = $1.4959 per day time the number of days from July 16 through Dec 31 remember that the day of closing goes to the buyer, therefore times 169 = $252.81
A closing is set for March 15, the next tax payment is due April 1. How many months of escrow can the lender take for taxes? 1 2 3 4
3 - The private lender will collect its loan in monthly installments, along with one month's taxes to be held in reserve so that sufficient funds are on hand to pay the yearly taxes when due. This reserve is based lender's own loan requirement and state law, C.R.S. 39-1-119. This law provides that any amount held on May 20 in excess of 3/12 of the taxes paid that year must be refunded to the borrower on or before May 30. Payments to a reserve escrow account must be adjusted annually upon reasonable belief of substantial improvements to the property or upon official notification of an increase in the actual amount of taxes levied. Failure to make a refund is subject to interest and penalty.
A house is sold on June 15.The annual taxes in the amount of $850 for the year have not been paid. What does the seller owe the buyer at closing? 384.25 465.75 468.08 381.92
384.25 an. 1 - June 14 = 165 days. (Remember, on the state side the buyer owns the day of closing and it is a 365-day year.) $850 / 365 = $2.3288 per day tax liability.165 days x $2.3288 = $384.25
Real estate closing fees customarily appear on a settlement statement as a: 1 Charge that is shared equally by the buyer and seller in the case of a conventional loan 2 Charge to the seller in the case of a VA loan 3 Charge that may be shared equally by the buyer and seller in the case of an FHA loan 4 All of the foregoing is true
All of the foregoing is true By custom in Colorado buyers and sellers share the cost of closing a transaction where the buyer is getting a conventional loan. VA requires the seller to pay the cost of closing. FHA allows the buyer to pay 1/2 of the closing fee. This is shown as a debit to whomever is paying it and a credit to the broker so that a check is written to the title company for providing the service.
With regard to Colorado real estate licensees: 1 If an associate broker uses her home as her office, her license should be in her home 2 An associate broker's license should be in his/her broker's office 3 It must be in the county in which they live 4 Cannot sell property unless they have a county real estate license
An associate broker's license should be in his/her broker's office An associate broker's license must always be in his/her broker's office.
Which of the following is true if a Contract to Buy and Sell form indicates the "Liquidated Damages" choice in case the buyer is in default? 1 Seller may keep earnest money and also sue for actual damages resulting from the buyer's default. 2 Buyer may cure the default by offering money. 3 Earnest money and any other payments or things of value received from the buyer will be kept by the seller as seller's sole remedy for buyer's default. 4 Seller may be able to sue to force the buyer to perform under the contract.
Earnest money and any other payments or things of value received from the buyer will be kept by the seller as seller's sole remedy for buyer's default. The seller may keep the earnest money and any other payments received from the buyer but has no other options. Liquidated damages are defined as a predetermined sum that becomes the seller's sole and only remedy for default by the buyer
If a client asks whether it would be beneficial to add a second bathroom to increase profit on the sale of the home, what would be the appropriate response? 1 yes, an additional bathroom will always add more value than it costs to add it in 2 no, the additional bathroom will never add more value than it costs to put in 3 I cannot answer this, I am a real estate broker not a construction expert, and I do not have the expertise to answer this question 4 I would be happy to do some research or analysis and speak to a construction expert on costs to determine if it's worth it
I would be happy to do some research or analysis and speak to a construction expert on costs to determine if it's worth it Agents are experts on real estate values and transactions, but not on construction costs. The best approach is to get a construction expert's opinion on the cost of adding a bathroom and then perform additional research to determine if the value increase would justify the expenditure. This takes the agent out of being the expert on construction costs and places the agent in the correct role of recommending and/or soliciting expert advice when the topic is outside the agent's expertise.
When a contingency is tied to a date in the contract, whose responsibility is it to follow up on that date? 1 Title Company 2 Lender 3 Listing or selling broker 4 Appraiser
Listing or selling broker The licensee is responsible to the parties to make sure the dates in the contract are met.
In Colorado, who of the following is exempt from real estate license law? 1 Property Manager renting single family homes for a variety of owners 2 Investor who owns 12 investment properties and sells one to an owner-occupant 3 Inactive licensee assisting friends in filling out purchase offers and negotiating deals 4 Attorney at law collecting a five percent commission for helping
Investor who owns 12 investment properties and sells one to an owner-occupant Private owners may always act for themselves and are not subject to real estate license laws. Attorneys are normally exempt from real estate license law while practicing law but must have a license to act as a broker. An inactive licensee is still bound by all rules of the commission, and the right-of-way specialist is exempt only for certain specific activities.
An agent lists a property using the Colorado Exclusive Right to Sell Listing Contract and checked the "Shall Not" box in the Holdover Clause. Just before the listing expired, a buyer views the property. Wanting to retain the rights to this buyer, the listing agent provides the buyer's name in writing to the seller. After the listing expires, the seller lists with another agent and the buyer's agent submits an offer on the property. If accepted, would the old listing agent receive a listing commission? 1 No, the new listing broker earns the listing side commission 2 Both the new and the old listing agent have earned a listing side commission 3 Yes, because it is within the holdover period 4 Yes, because he is the procuring cause of the sale.
No, the new listing broker earns the listing side commission Only the current listing broker earns the commission. Checking the "shall not" box in the Holdover clause indicated that the provisions of the clause would no longer be in effect should the property be relisted with another agent. When the property was relisted - the old listing agent lost the right to a listing commission for the buyer. If the old listing broker had checked the "shall" box, he/she would have been entitled to a listing commission under the terms of the Holdover clause.
Broker Bill Butter is working with Buyer Brian Bread and has found a property on which the Buyer wants to place an offer. The property that he likes is owned by Seller Sammy Samuel and listed by Broker Cherry Cleary. The property is located at 2443 E Westgate Ave in Durango, CO. The asking price is $315,000. Buyer Bread offers $299,000 on April 10th and wants all appliances, including the washer and dryer included in the sale price; these appliances were excluded in the listing as was the hot tub on the patio. The offer is countered by Seller Samuel on the recommendation of his agent Broker Cherry Cleary on April 11th at $309,000 and will include all appliances, except the washer and dryer. Buyer Bread accepts this counter offer on April 12th and the closing is scheduled for May 25. An inspection is held on April 16th and Buyer Bread wants some roof shingles repaired and the carpet in the master bedroom to be replaced. Seller Samuel agrees to the shingles being repaired, but will only give a $750 credit at closing to the Buyer Bread to replace the carpet; Buyer Bread accepts. Prior to closing, Buyer Bread requests that the seller allow them to start a kitchen remodel prior to closing. Seller Samuel will not allow this and Buyer Bread gets angry and wants out of the contract. Should you ever encourage or recommend commencing with any type of property improvements or remodeling prior to closing on the property? Yes No
No. The only repairs or improvements that should be initiated after contract acceptance are those identified in the Inspection Notice as required to close the sale. You should always advise and council your buyer against investing money and/or making improvements to any property that does not legally belong to them. They should only invest money to improve the property after they close and have title to the property. Investing money to repair, improve or alter a property prior to receiving title to the property is never a good idea.
How much personal funds can you keep in the escrow account? 1 None 2 $100 3 $500 4 Only enough to maintain the account
Only enough to maintain the account Generally, mixing personal funds with escrow funds is considered a bad thing and even has a name attached to it called "commingling." However, the Commission does recognize that as a practical matter, banks sometimes require a minimum balance in the account. Under these circumstances ONLY it is permitted to maintain an amount of personal funds in the escrow account to meet minimum balance requirements.
Under the liquidated damages clause, in the Contract To Buy and Sell Real Estate, if the buyer defaults the seller has what options? 1 Take earnest money 2 Return earnest money 3 Specific performance 4 Court costs, and additional damages
Take earnest money The seller's sole and only remedy is to take the earnest money. To have recourse to the courts for damages, the Specific Performance option must have been chosen in the contract.
Which of the following is true when a broker signs the Broker Acknowledgments at the end of the Residential Contract to Buy and Sell? 1 The broker acknowledges receipt of the earnest money deposit. 2 The broker becomes a party to the contract and agrees to its terms. 3 The broker assures the right to a commission. 4 The broker confirms the commission split with cooperating brokers.
The broker acknowledges receipt of the earnest money deposit. The brokers' signatures acknowledge receipt of the earnest money deposit and confirms their brokerage relationship to the party with whom they are working
Which of the following is true if a broker negotiates a Success Fee under the Exclusive-Right-to-Buy Contract? 1 The listing broker must pay the negotiated fee at closing. 2 The buyer will pay the fee at closing. 3 The buyer will indicate who is to pay the fee 4 The seller always pays the fee
The buyer will indicate who is to pay the fee The Exclusive Right to Buy agreement is often referred to as the Buyer Agency Agreement. This is the contract used when a buyer wants to engage the services of a buyer's agent. In this agreement, Success Fee is a term used for commission. Since the buyer is engaging the agent, the buyer needs to indicate who is going to pay the agent (buyer or listing broker or seller or anybody but me). The form of this payment needs to be indicated i.e. a percentage of the sale or lease, or an hourly rate, or some other form of compensation. If there is a minimum or maximum amount. If they are paying a retainer. In short, a number of different negotiated items all relating to the commission to be paid.
The approved Contract to Buy and Sell, "Property" includes: 1 The real property plus fixtures, improvements, and appurtenances 2 The real property and all rights such as water rights 3 The real property plus fixtures, improvements, appurtenances, plus inclusions, minus exclusions 4 The real property and everything now attached
The real property plus fixtures, improvements, and appurtenances Property as described in the Contract to Buy and Sell includes appurtenances, improvements, and fixtures
A home inspection is required by contract on: 1 all homes over $150,000 2 all homes 3 homes, condominiums, and townhomes 4 a home inspection is not required
a home inspection is not required Home inspections are not required, but are certainly recommended.
"Puffing" is: 1 something you do on a cigar 2 illegal as it is fraud 3 a legal exaggeration of a property's benefits 4 hiding a material fact such as a known deficiency in a furnace
a legal exaggeration of a property's benefits Statements of facts made by agents must be accurate. Exaggeration of a property's benefits is called "puffing." While puffing is legal, agents must ensure that none of their statements can be interpreted as fraudulent. An agent describing a plain house as "charming" and "beautiful" may be an exaggeration, but because it is a subjective opinion it cannot be characterized as a falsehood and thus is not an act of fraud.
A specific lien is: 1 an income tax lien 2 a judgement 3 the same as a general lien 4 a mortgage
a mortgage A specific lien attaches to and affects only a certain piece or pieces of property and includes liens listed. (REM 16-11)
In Colorado, all of the following would be required to obtain a real estate license except: 1 a time share salesperson 2 a resident property manager who is an employee of a building owner 3 a property manager managing properties for multiple owners 4 a commercial real estate broker
a resident property manager who is an employee of a building owner A rental referral agent is not required to have a real estate license. The other three are required to have a license.
A real estate appraiser means: 1 a realtor providing a market opinion 2 an inspector who evaluates the soundness of the property 3 any person who provides for a fee or a salary an estimate of the nature, quality, value, or utility of an interest in, or aspect of, identified real estate and includes one who estimates value and who possesses the necessary qualifications 4 the loan originator who determines the value of the property
any person who provides for a fee or a salary an estimate of the nature, quality, value, or utility of an interest in, or aspect of, identified real estate and includes one who estimates value and who possesses the necessary qualifications
Title insurance companies guarantee against a loss because of defects existing: 1 at the time of acceptance of contract 2 at or before the date of the policy 3 at the time of closing 4 subsequent to the date of issuance of the title policy
at or before the date of the policy Defects, which come into existence subsequent to the date of insurance of the title policy, are not covered.
The time and place of closing is generally scheduled by the listing agent, however it should: 1 always be set according to the buyer's needs 2 always be set according to the seller's needs 3 be set according to the lender's schedule 4 be mutually agreed to by the parties
be mutually agreed to by the parties The person scheduling the closing time and place should try to accommodate all of the parties.
If the buyer provides written notice of unsatisfactory conditions: 1 the seller must fix all the items 2 buyer and seller must agree in writing to a settlement, or the buyer withdraw the objections on or before the resolution deadline or the contract shall terminate 3 the buyer must buy the property "as is"
buyer and seller must agree in writing to a settlement, or the buyer withdraw the objections on or before the resolution deadline or the contract shall terminate According to the Contract to Buy/Sell Real Estate (AKA Purchase Contract) the buyer must provide a written description of unsatisfactory items by the Inspection Objection Deadline. The buyer and seller then have until the Inspection Resolution Deadline in the contract for the parties to reach an agreement on the inspection items or for the buyer to withdraw their objections. If neither of those occurs then the contract teminates on that date.
A Purchase and Sale Contract may be prepared by: 1 the broker's attorney 2 the seller's attorney 3 the buyer's attorney 4 buyer or seller's attorney
buyer or seller's attorney The attorney of the buyer or the seller may prepare a purchase and sale contract; the broker's attorney may not.
When a purchaser is deciding whether or not to do an inspection it is advisable that: 1 the agent tell them they do not need one 2 the licensee determine the condition of the property 3 buyers be advised to consult a professional inspector or engineer 4 sellers can just provide the property disclosure
buyers be advised to consult a professional inspector or engineer Buyers should be made aware of their options as well as what is required.
Home inspectors: 1 must be licensed 2 are not licensed unless they became inspectors after Jan 1, 2002 3 are required to have 60 hours of training 4 can enter the business without qualifications or training
can enter the business without qualifications or training Home inspectors are not required to be licensed; therefore they can enter the business without training or qualification.
Which of these qualifies as "Good Funds": 1 credit union check 2 title company account check 3 cashier's check 4 cash
cashier's check From the Contract to Buy/Sell Real Estate:
The neighbor's easement to drive across a property being sold: 1 ends with sale of property 2 continues unless released by neighbor 3 cannot be terminated by the neighbor 4 can be terminated at will by the owner of the property being driven on
continues unless released by neighbor Easements usually last forever. However, there are ways they can go away:
Dates in the contract can do all of the following except: 1 be extended by mutual agreement 2 terminate the contract if not adhered to 3 cause a buyer or seller to be considered in default of the contract 4 determine the worthiness of the buyer's financing
determine the worthiness of the buyer's financing Dates in the contract can result in the contract being terminated or the parties may mutually agree to amend or extend.
Dates in the contract can do all of the following except: 1 be extended by mutual agreement 2 terminate the contract if not adhered to 3 cause a buyer or seller to be considered in default of the contract 4 determine the worthiness of the buyer's financing
determine the worthiness of the buyer's financing Dates in the contract can result in the contract being terminated or the parties may mutually agree to amend or extend.
The Definitions of Working Relationships form has the effect of: 1 establishing an agency relationship 2 disclosing the different types of relationships that are available 3 complete disclosure of agency as required by Colorado statute 4 disclosing only the types of relationships that the broker prefers to offer
disclosing the different types of relationships that are available The definitions form does not establish a specific relationship with a buyer or seller- only discloses the type of relationships that are available.
Which of the following would be permissible for an unlicensed personal assistant? 1 distribute factual literature prepared by a licensed associate 2 complete and present a comparative market analysis 3 answer questions about the seller's motivations as long as the answers are factual 4 drive potential buyers to a listing and discuss purchase options
distribute factual literature prepared by a licensed associate An unlicensed assistant is allowed to distribute literature, they can chauffeur buyers to a property with the seller's permision as long as no licensed activity is performed, and they may complete but not present market analysis.
Interpretation of the title commitment should be done by: 1 an attorney 2 the title company 3 either an attorney or the title company 4 the listing broker
either an attorney or the title company The licensee should not represent themselves as an expert in title commitments and should refer the purchaser to someone qualified to answer their title questions.
Commission Position 6 on the release of earnest money deposits indicates: 1 the broker cannot release earnest money funds from the trust account without written releases from all parties 2 in the event of a dispute, the broker must decide to the "best of their ability" who is deserving of the earnest money and release it to that party 3 if the transaction fails and there is no dispute over who is to receive the earnest money the broker should release the funds immediately 4 since the Seller is the Listing Broker's client - the Seller gets to decide
if the transaction fails and there is no dispute over who is to receive the earnest money the broker should release the funds immediately Commission Position 6: "If there is no dispute, the broker should disburse to the appropriate party immediately."
A contract may be renegotiated after acceptance if the: 1 buyer decides he or she did not get a good deal 2 appraisal comes in above the purchase price 3 seller cannot find a new home 4 inspection reveals several items that need repair
inspection reveals several items that need repair There are clauses in the contract that allow for the buyers to terminate the contract, the parties may renegotiate, if both parties are willing, and amend the contract.
A contract may be renegotiated after acceptance if the: 1 buyer decides he or she did not get a good deal 2 appraisal comes in above the purchase price 3 seller cannot find a new home 4 inspection reveals several items that need repair
inspection reveals several items that need repair There are clauses in the contract that allow for the buyers to terminate the contract, the parties may renegotiate, if both parties are willing, and amend the contract.
A seller who's selling her property on her own (FSBO) received a contract to purchase. She then returned the contract changing a few items. This contract: 1 is valid 2 is rejected 3 is a counterproposal 4 this is not allowed
is a counterproposal Changing the contract by marking on it is legal. Bad form, but legal. However, it is no longer the contract the other party submitted, so they would have the option to accept, reject or counter.
An appraisal is always required by: 1 law 2 contract 3 the buyer 4 it is not required
it is not required An appraisal is not required unless it is a stipulation of the Loan Company.
In order for the appraiser to obtain access to the property, he or she must first obtain permission from the: 1 listing agent 2 Title Company 3 buyer 4 selling agent
listing agent The seller has control over the property and it would therefore be the listing broker's responsibility.
When there is a contingency on the sale of the purchaser's property prior to closing, the: 1 listing agent should advise the seller to take the property off the market and wait for the purchaser's property to sell 2 selling agent should show the buyer other homes 3 listing agent should advise the seller of potential risks to the contract 4 seller should find another agent
listing agent should advise the seller of potential risks to the contract The listing broker is required to make the seller aware of any potential risks to the transaction.
If the appraiser contacts the listing broker and indicates a problem reaching the contract value, the: 1 listing agent should provide comparables to substantiate the value 2 selling agent should use another lender 3 seller should sue the appraiser 4 selling agent should find a new property for his/her buyer
listing agent should provide comparables to substantiate the value The listing broker has a responsibility to the seller to substantiate the value.
When a contract is contingent upon the purchaser's ability to obtain special financing, (i.e., down payment or closing cost assistance), the: 1 selling broker should not disclose anything to the listing agent 2 listing broker should verify the ability of the purchaser to obtain such financing, the availability of the program, and disclose this information to his or her seller 3 seller needs to investigate 4 buyer should leave everything to his agent
listing broker should verify the ability of the purchaser to obtain such financing, the availability of the program, and disclose this information to his or her seller The listing broker should verify as much information about the contract as possible.
Title insurance fees or premiums are paid: 1 by the buyer 2 by the seller 3 only once, and the policy continues in force without further payment 4 by the lender
only once, and the policy continues in force without further payment Unlike other insurance, title insurance is paid only once and the policy continues in force without further payment.
If the buyer does not provide written notice of any unsatisfactory conditions by the date specified under the inspection clause, the: 1 contract can terminate 2 seller can sell to another buyer 3 physical condition of the property and inclusions shall be deemed to be satisfactory to the buyer 4 listing agent should re-list the home
physical condition of the property and inclusions shall be deemed to be satisfactory to the buyer If the buyer does not provide written notice of unacceptable conditions, then the property is deemed satisfactory.
The Colorado Real Estate Commission was formed to: 1 standardize testing 2 uniform forms 3 regulate licenses 4 protect the public
protect the public a, b & c are all elements of the Commission's duties but "Protect The Public" is the reason for their existance.
According to the rules and regulations of the Colorado Real Estate Commission, a broker is REQUIRED to recommend that: 1 the buyer have title reviewed by legal counsel 2 the buyer have an appraisal by a licensed appraiser 3 the buyer have an inspection by a certified house inspector 4 all of the above
the buyer have title reviewed by legal counsel All are great ideas and good ideas, but of those listed, only the recommendation of title examination by legal counsel is required by Real Estate Commission rules. This occurs at the end of the Title Advisory section of the Contract to Buy and Sell Real Estate wherein the contract advises the use of Legal Counsel to review title. The others appear in the purchase contract, but do not get an actual recommendation.
If the purchase price exceeds the property's appraisal: 1 the buyer shall have the sole option and election to terminate the contract 2 the buyer can receive damages 3 the buyer can sue for specific performance 4 the seller can terminate the contract
the buyer shall have the sole option and election to terminate the contract If the appraised valuation exceeds the purchase price, there is no provision allowing the seller to increase the price.
During the processing of the loan, it is: 1 a good idea for the seller to follow up on the progress 2 the listing agent that follows up on the progress of the loan 3 the title company's responsibility to follow up 4 the buyer's responsibility to follow up with the lender
the buyer's responsibility to follow up with the lender Follow up is important to successfully reach closing.
A buyer submits an offer contingent upon the successful closing of their present home. 1 the selling agent should request a copy of the contract on the contingent property 2 the selling agent should verify the financial ability of the buyer on the contingent property 3 the selling agent should fully disclose all information to the seller 4 the listing agent should fully disclose all information to the seller
the listing agent should fully disclose all information to the seller The listing agent has the responsibility to verify as much information as possible on behalf of their principal.
John Brown submits an offer to purchase contingent upon the sale of his present home on or before June 15. The seller accepts the offer, and on June 16 the home is still not sold. This means: 1 the buyer need not do anything since his property has not sold 2 the buyer may extend the date for the contingent property to sell 3 the seller may sue for damages 4 the seller may terminate the contract and return the earnest money
the seller may terminate the contract and return the earnest money The contingency has not been met in accordance to the time frame of the contract, therefore, the contract can terminate or the parties may agree to extend.
Which of the following is true concerning commissions earned by a broker in a real estate sales transaction: 1 they are based on a schedule of commission rates set by the real estate commission 2 they may be deducted from the earnest money deposit and claimed by the broker when the sales agreement is executed 3 they are determined by agreement of the broker and the principal 4 they may be shared with an unlicensed person if that person assisted the broker in bringing the buyer and seller together
they are determined by agreement of the broker and the principal Commissions are always negotiable between the principal and the agent.
An owner had a setback of 5 ft for her property because of a "hardship" due to the instability of land under her home. What would she request in terms of zoning? 1 Conditional use permit 2 Legal nonconforming use 3 Variance 4 Rebuild the house
variance is an administrative exception to land use regulations, including zoning. It is the approval of a variance which makes legal the use of a property in such a way which does not conform to existing regulations. Variances are only granted when a property owner can demonstrate a "hardship" if forced to comply with existing regulations