Questions Missed

Juan secures a fixed rate amortized 30-year loan for $295,000 at 4.25%. If his monthly P&I payment is $1,750, how much interest does he pay in the second month of the loan? $1,038.59 $1,042.29 $1,044.79 $1,750

$1,042.29 In the first month, Juan pays $1,044.79 in interest ([$295,000 x .0425] ÷ 12) and paid the principal down $705.21 ($295,000 - [$1,750 - $1,044.79]). The next month, he pays $1,042.29 in interest ([$294,294.79 x .0425] ÷ 12).second month interest = second month payback - second month principle. second month pricile = first month priciple = first month payback -first month interest

Phyllis bought a beach townhouse for $475,000 and put down $50,000 in earnest money. At closing, she paid $150,000, the balance of her intended down payment. The mortgage tax in the area is $.35 per $100 (or portion thereof). Calculate what Phyllis will pay for the mortgage tax. $1,137.50 $1,662.50 $700 $962.50

$962.50 150,000+50,000=200,000 475,000-200,000=275,000 275,000/100=2750 2750x.35= 962.50

The Simpsons are buying the Martin's house for $415,000, and closing is set for March 15. The Martins have a loan balance of $230,000 at a rate of 4.7% and have prepaid property taxes ($2,506) and insurance ($1,400), and they also have mortgage interest to consider. Using a 365-day proration method, calculate the prorated amount the Simpsons will owe the Martins at closing. Assume February has 28 days this year. The sellers own the day of closing. 1,997.62 $3,113.46 $604.95 $792.54

1,997.62 2506/365=6.86575342 ^x74=508.065753 ^-2506=1997.62

Rhonda and her husband filed for bankruptcy five years ago. They want to purchase a new house but don't have the best credit score. They've decided to buy the home using an FHA loan. Which of these is a true statement? A minimum down payment of 3.5% is required. Mortgage insurance is not required. The loan-to-value ratio must be less than 80%. They must have PMI.

A minimum down payment of 3.5% is required.

The Gatlin's' lender tells them they can afford a monthly payment of $1,830 on their new home loan. What interest rate are the Gatlin's getting if this is an interest-only loan with a principal balance of $349,000? 0.524% 5.24% 6.29% 6.39%

Annual payment ÷ loan balance = interest rate. $1,830 x 12 to get the annual payment of $21,960. Then divide the annual payment by the loan amount: $21, 960 ÷ $349,000 = .0629, or 6.29%.

Tristan's offer has been signed by all parties and delivered back to the seller. This means that ______ has occurred. Acceptance Binding acceptance Notarization Personal delivery

Binding acceptance

Jennifer, an experienced salesperson, hires an unlicensed assistant, Suzanne. Jennifer's on vacation, and in her absence, Suzanne discussed some contract terms with one of Jennifer's clients. Who's responsible for Suzanne's behavior? Both Jennifer and her broker are responsible for supervising Suzanne, and both could be disciplined. Jennifer is, because she hired Suzanne. Jennifer's broker is, because the broker has ultimate responsibility for all brokerage staff. Suzanne is, because she knew she was performing tasks that required a license.

Both Jennifer and her broker are responsible for supervising Suzanne, and both could be disciplined.

Sophie received title to her grandmother's farm last spring. For almost 100 years, Sophie's 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 Sophie's grandmother create? Abatement Condition Covenant Restriction

Condition

A real estate transaction has a closing date of May 20. The seller, who's responsible for closing costs up to but not including the day of settlement, has already paid annual property taxes of $1,949. Using calendar year proration, the seller will be ______ on the closing statement (round to the nearest dollar). Credited $1,207 Credited $742 Debited $1,207 Debited $742

Credited 1207 The seller is required to pay the for January 1 through May 19. The seller will be credited $1,207, because $1,949 ÷ 365 = $5.34, and $5.34 × 226 days (the number of days the buyer is required to pay) = $1,206.84. That's $1,207 if rounded to the nearest whole dollar

Which fiduciary duty is missing: loyalty, reasonable skill and care, obedience, confidentiality, accounting, and ______? Disclosure Disobedience Lawfulness Skill

Disclosure

Select the statement that accurately depicts property ownership income tax implications. During the ownership stage, both investors and homeowners may be able to deduct mortgage interest paid. First-time homebuyers can deduct closing costs paid. Homeowners can deduct depreciation during the ownership stage; investors can't. When homeowners sell their property, they'll need to calculate the depreciable basis on the property.

During the ownership stage, both investors and homeowners may be able to deduct mortgage interest paid.

Gerald practices real estate in a state that recognizes sub-agency. Which of the following statements is true of Gerald's authority to appoint a sub-agent? He can independently appoint a sub-agent at any time during the transaction. He must receive the principal's permission in writing in order to appoint a sub-agent. Only Gerald's broker can appoint a sub-agent. Only the principal can appoint a sub-agent.

He must receive the principal's permission in writing in order to appoint a sub-agent.

Juan has finalized his comparables and is ready to determine a property's appraised value. How does he do this? He reviews his process and places more weight on the most similar comparables that he believes to be the most valid. He takes an average of the adjusted comparable values. He uses the highest adjusted value from his comparables. He uses the lowest adjusted value from his comparables.

He reviews his process and places more weight on the most similar comparables that he believes to be the most valid.

Gregory and Dianne are American citizens of Cuban origin, and when their home loan is denied, they suspect discrimination. Which of the following acts prohibits lender discrimination on the basis of the protected class of national origin? Community Reinvestment Act Consumer Credit Protection Act Equal Credit Opportunity Act Home Mortgage Discrimination Act

Home Mortgage Discrimination Act

A brokerage firm that hires licensees as employees instead of as independent contractors must ______. Advise the state licensing regulators of the non-traditional working relationship Avoid controlling their activities too closely to ensure proper worker classification Offer incentive bonuses to ensure a motivated workforce Pay licensees a regular salary regardless of the revenue they generate

Pay licensees a regular salary regardless of the revenue they generate

Mary has a contract to buy her mother's house when her mother is finally ready to move to a senior living community. This way, the house stays in the family. After her mother finds a suitable senior apartment and moves, Mary writes a check for the agreed-upon amount, and her mother transfers the deed to Mary. What is happening in this scenario? Assignment Breach Novation Performance

Performance

Tyne entered a contract to buy Fred's home. Per the terms of the contract, Tyne agreed to pay $20,000 for the earnest money deposit by this coming Wednesday and have the property inspected within seven days. She submitted the earnest money deposit on time and had the property inspected within five days. This is an example of ______. A purposeful voiding of the contract Buyer misrepresentation Partial performance of this part of the contract Performance of this part of the contract

Performance of this part of the contract

According to the U.S. Department of Justice, which type of antitrust violation is an agreement between competitors to set contract terms for a certain length of time? Group boycotting Market allocation Price fixing Tie-in arrangement

Price fixing

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? Attachment General Special assessment Specific

Specific

Jerry and Simon signed a contract so that Jerry could purchase all of Simon's restaurant equipment for one price after Simon closes his restaurant next month. The contract contains a provision that states Jerry has one year from the purchase date to file a suit relative to the purchase. After the year is up, Jerry forfeits the right. What kind of contract clause is this? Specific time Statute of limitations Time is of the essence Time of performance

Statute of limitations

Candace and Phil Tolson listed their home for sale with Trent Richards, the broker for Richards Homes. Sadly, Trent became incapacitated due to a car accident. What's the status of the listing agreement? Because the listing agreement is with the brokerage firm, the agreement continues. The agreement terminates by operation of law. The brokerage firm can agree to terminate the agreement if the Tolson's choose to not work with another agent. The Tolson's may choose to terminate the agency agreement.

The agreement terminates by operation of law.

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 against encumbrances The covenant of seisin The covenant of the right to convey The covenant of warranty

The covenant of warranty

Alex's client doesn't want prospective buyers to track dirt and mud throughout her clean home. She asks Alex to place a box of booties by the front door with a sign asking visitors to wear the booties while viewing the home. Alex does as his client instructs—no questions asked. What fiduciary duty is this an example of? The duty of accounting The duty of loyalty The duty of obedience The duty of reasonable skill and care

The duty of obedience

Which of the following statements about the number of contingencies in a sales contract is true? Every sales contract should contain a minimum of three contingencies. The inclusion of numerous contingencies makes it less likely that the buyer's offer will be accepted. The more contingencies, the better from the seller's perspective. The number of contingencies is directly related to the cost of the home. The higher the asking price, the greater number of contingencies.

The inclusion of numerous contingencies makes it less likely that the buyer's offer will be accepted.

Kelly is closing on the house she's purchasing on Wednesday. Which of these statements is true? Kelly must receive the Loan Estimate at least four days before closing. The closing officer must deliver the Closing Disclosure at closing. The lender must provide the Closing Disclosure by Friday of the week before closing. The Loan Estimate amounts must be within 1/4 of a percent of the final settlement costs.

The lender must provide the Closing Disclosure by Friday of the week before closing.

The seller and ______ must approve a short sale. A broker A short sale specialist The new buyer The seller's lender

The seller's lender

You sign a contract to purchase a machine that will allow you to travel back in time and meet Abraham Lincoln. Assuming that time machines don't actually exist (for now), what type of contract is this? Enforceable Unilateral Void Voidable

Void