Real Estate Pre Test
prove he was licensed at the time of sale.
A broker had an exclusive right to sell agency listing. In order to collect the commission, he must:
Installment land sales contract.
A financing agreement that exposes the buyer to the greatest risk would be:
$47,000 X .90 = $42,300 loan X .04 = $1,692 points. $47,000 X .01 = $470 attorney fees. $47,000 X .10 = $4,700 down payment. $1,692 + $470 + $4,700 = $6,862 - $2,500 deposit - $400 credit of tax. $3,962 cash needed. The correct answer is: $3,962.
A house sells for $47,000 and the buyer made a $2,500 earnest money deposit. The buyer will obtain a 90% loan. The buyer pays four loan discount points and 1% of the sales price for attorney fees, but will receive a prorated tax credit of $400. How much money must the buyer bring to closing?
For rent by owner--Landlord holds a real estate license--541-3567
A licensed salesperson, in renting a house the salesperson owns, could advertise in which of the following manners?
Both buyer and seller
A listing broker had a signed sales contract on a house. The broker then noticed a crumbling wall in the basement. Which of the following should the broker inform about the wall?
Joint tenants.
A mother left her house in her will to her two children, Tom and Mary. Each child to receive a 50% interest with rights of survivorship. What type of ownership will Tom and Mary have?
There is no date to apply by
A person finished a pre-license class on February 1. That person took the state exam on June 1 but failed the exam. By what date must that person pass the exam and apply for license?
Condominium ownership.
A person has a fee simple ownership of one unit of a multi-story building and pays property taxes on this unit. What type of ownership does this situation describe?
Client
A person that authorizes another to act for him or her is known as the:
Put in all advertising "seller holds a real estate license", including the yard sign
A salesperson decided to sell her house. She did not want to list the house with her brokerage company. Instead, she wanted to sell her own house as a for-sale-by-owner. Which of the following items would the salesperson have to do?
Give another agent in the office an address of a listing
A secretary of a real estate company has passed the state exam but not yet received her license. Which of the following activities could she do?
Present the offer as is and inform the seller of the possible increase
A seller had a house listed with a broker for $86,000. The broker was working with a buyer who told the broker that the buyer would start by offering $85,000 but would pay $86,000 for the property. What should the broker do?
Yes, he violated his fiduciary obligation by telling the buyer the seller would negotiate as he did not have the seller's best interest at heart
A seller listed her property with an agent for $60,000 but told the agent she would negotiate the price. The agent told a buyer that the seller would negotiate the price. The buyer offered less than $60,000 which the seller rejected. Did the agent violate his obligation?
Seller and buyer jointly and severally
A seller sells her home to a buyer who assumes her existing loan. If the buyer defaults, who is responsible for the balance of the debt?
Seller
A seller sells her home to a buyer who purchases the property "subject to" the existing loan. If the buyer defaults, who is liable for the balance of the debt?
Tax based upon benefit received.
A special assessment is a?
the broker is not, by law, practicing disclosed dual agency.
According to BRRETA, if a broker practices designated agency:
A fee simple estate.
Agnes has an interest in property and by virtue of her interest she may place a deed restriction on the property that will apply to any future owner. Her interest in the property would be:
$450 X 12 months = $5,400 gross annual loss $5,400 divided by 8% = $67,500 loss. The correct answer is: $67,500.
An apartment complex has $450 less rental income per month because it is located next to a busy highway. Using a capitalization rate of 8%, how much is the loss in value?
No commission since the listing was terminated when the owner was declared legally insane
An owner listed a property with Broker Dole on May 1. On July 1 the owner was declared legally insane. The broker brought a full price offer on July 3 to the seller which was accepted. How much commission is Broker Dole due?
Yes, because it was a 12 unit apartment
An owner of a 12 unit apartment building lived in one of the apartments. The owner refused to rent to a person because of their national origin. Does the person have a valid complaint?
(D) A 90% LTVR requires a 2 % PMI to be paid on the loan amount. $202,500 x 2 % = $ 4,050.00 The correct answer is: $4,050.00
Sam sold a property to Emma for $225,000. Sam's loan balance was $44,500 with an interest rate of 7%. Emma's conventional loan was at 8% with a 90% loan to value ratio. The taxes for the year were $1250 and the home owner's insurance was $495. Closing took place on October 30th. Based on this information, answer the following question. If Emma paid PMI all at closing, how much did she pay?
No, individuals are not exempt from discriminating in advertising.
Sam, a FSBO, advertises his property for sale by saying "for sale to Cuban buyers only." May he advertise in this manner?
Present the offer immediately
Broker A received an offer of $189,000 on a $200,000 listing. After the seller gave the offer to his attorney to review, another offer for $176,000 came in. What should the broker do?
a violation of state law
Broker Carr had a 90 day exclusive listing. One month after the listing began, Broker Dole contacted the seller and told him he had a buyer moving in one month after the listing terminates and asked the seller to sign an agreement to take effect after the listing expires. This is:
Condemnation
What is the legal process, used by the government, to acquire property from a private citizen?
Deed of trust and promissory note.
When a buyer obtains a loan for the purchase of property, the lender will require:
A multi-story condominium complex
When a developer records a plat showing property in three dimensions (length, width and height), he or she would be developing:
When the offer to purchase has been signed and accepted by the seller
When does a broker earn his commission?
A fully amortized loan extinguishes the loan in equal payments, whereas a partially amortized loan does not.
Which best describes the difference between a fully amortized loan and a balloon note?
Eminent domain.
Which of the following is NOT a private limitation on title?
Highest and best use of the property.
Which of the following is usually contained in an appraisal report?
Plumbing fixtures.
Which of the following will automatically convey with the sale of real property?
Illegal purpose
Which of the following would cause a deed to be void?
Residential first mortgage loans for owner-occupied homes.
Which transactions are covered by RESPA?
Zoning ordinances.
Zelda wants to move into a subdivision with her giraffe. Which of the following would determine whether or not she could move into a home and keep her giraffe on the property?
Remember the outstanding loan balance changes with each $600 payment. $2,400 X 8% / 2 = $96. Interest 1st six months. $1,800 X 8% / 2 = $72. Interest 2nd six months. $1,200 X 8% / 2 = $48. Interest 3rd six months. $ 600 X 8% / 2 = $24. Interest 4th six months. Total Interest = $240. The correct answer is: $240.
G obtains an 8% loan for $2,400. The loan is to be repaid in four payments of $600 each, plus interest at six-month intervals. How much interest will G pay during the term of the loan?
In severalty.
If a husband or a wife is the sole owner of real property, he or she owns the property:
renew every four years to avoid cancellation of the license
If your license is inactive you must:
That discrimination occurred.
In Fair Housing discrimination cases, the burden of proof is on the claimant. The claimant must be able to prove:
Vendor.
In a valid real estate contract, the seller is known as the:
Outside dimensions.
In determining total square footage of a dwelling, the appraiser would consider:
A lot and block legal description of the property
In dual agency, the consent form must contain all of the following except?
n attorney-in-fact
Mark gives Suzanne the authority to sign for him in a real estate transaction. Suzanne is considered, in the eyes of the law, to be:
Gary's broker is the agent of Mr. Gregory for a reasonable time.
Mr. Gregory has a home for sale with a sign, FOR SALE BY OWNER, in the front yard. Salesperson Gary calls, identifies himself and asks for the key to show the property. Mr. Gregory agrees. Which of the following best describes any agency relationship that may exist?
Allowing the settlement agent to charge a fee for conducting the closing.
RESPA prohibits all the following EXCEPT?
(A) &Seller's Lending Institution $259.58 along with loan balance to pay off loan. $ 44,500 x 7% = $ 3,115 / 360 = 8.6527 x 30 days = $ 259.5833 = $259.58 (Accrued interest is paid for the due date through and including the day of closing.) The correct answer is: Lending Institution $259.58
Sam sold a property to Emma for $225,000. Sam's loan balance was $44,500 with an interest rate of 7%. Emma's conventional loan was at 8% with a 90% loan to value ratio. The taxes for the year were $1250 and the home owner's insurance was $495. Closing took place on October 30th. Based on this information, answer the following question. How much was the accrued interest and to whom was it paid?
(C) Emma will pay 2 days of prepaid interest, the day of closing through the last day of the closing month. The correct answer is: Emma $90
Sam sold a property to Emma for $225,000. Sam's loan balance was $44,500 with an interest rate of 7%. Emma's conventional loan was at 8% with a 90% loan to value ratio. The taxes for the year were $1250 and the home owner's insurance was $495. Closing took place on October 30th. Based on this information, answer the following question. How much was the prepaid interest and by whom was it paid?
Issue a cease and desist order and impose a fine up to $1,000 a day
Someone sells real estate for another for a fee without a license. What could the GREC do in this case?
Was the underlying basis for the decision in Jones vs. Mayer.
The Civil Rights Act of 1866:
Homosexuality
The Fair Housing laws do Act does NOT provide protection on the basis of:
Miscellaneous closing costs.
The truth-in-lending law requires full disclosure of financing terms when certain "trigger" terms are used in ads. Which of the following is NOT considered to be a financing term?
An earnest money deposit
To be valid, a contract for sale must contain all of the following EXCEPT:
is limited to only information he knows to be true.
Under BRRETA, an agent's liability for disclosure:
