real estate pt 2
A $140,000 property sells at a 5% commission with a 50-50 co-brokerage split and a 60% agent split with the employing broker. How much would the employing broker receive in this transaction (assuming an agent was involved)?
$1,400
Seller Andy requires a 2.5% deposit on all offers. Buyer Josh wants to offer $452,000 for the property. The property was appraised at $465,000. What must the earnest money deposit be if Josh presents his current offer?
$11,300
A home sells for $125,000 in United County. The Realtor's commission is 7.4%, and the mortgage balance is $98,000. The seller has $5,900 in other closing costs. If the seller pays all of these expenses, what will she net at closing?
$11,850
A sale transaction closes on July 4. The day of closing belongs to the seller. On January 1, the seller paid a hazard insurance premium of $375 for the calendar year. According to the 12-month/30-day method, what is the seller's share of the insurance premium?
$191.67
A tax rate on a house with a $350,000 taxable value is 9 mills per thousand dollars of assessed valuation. What is the annual tax bill?
$3,150
Seller Jones signed an exclusive right to sell listing on her home with Muller Realty for $155,000 at a commission rate of 5% to be paid to broker Muller at closing. As part of the agreement, broker Muller will split the commission equally with any other broker that can bring a buyer for Jones' property. If another broker sold the property, how much will broker Muller receive?
$3,875
A home sells for $330,000 and has a loan balance of $260,000 at closing. The commission is 6% and other closing costs are $14,000. What is the seller's net?
$36,200
The sellers, Mr. and Mrs. Hernandez, listed their property for $112,000 and agreed to an exclusive right to sell listing agreement at a 4% commission to be paid to Lucky Nines Estate Company at closing. The sellers sold the property themselves during the listing period for $106,000. How much commission, if any, would Lucky Nines Real Estate Company be entitled to at closing?
$4,240
Seller Paul's real estate taxes are $1500 for the year. Buyer Sid is closing on May 17. According to the 365-day method, what is Paul's share of the taxes?
$563.01
A homeseller wants to net $75,000. The commission is 9%, the loan payoff is $450,000, and closing costs are $36,000. What must the price be (to the nearest $100)?
$616,500
Seller Paul's real estate taxes are $1500 for the year. Buyer Sid is closing on May 17. According to the 365-day method, what is Sid's share of the taxes?
$936.99
As a legal descriptor of land, a township square consists of
36 square miles.
How many sections are there in a township, and what are their dimensions?
36, 1 square mile
Which of the following statements best defines what is included in a Closing Disclosure?
A Closing Disclosure details all financial particulars of a transaction.
Under FIRPTA requirements, what must the seller deliver to the buyer?
A FIRPTA Certificate
A buyer will receive a utilities bill for an estimated $400 at the end of the month. At closing, the seller has used an estimated $100 of the bill. What should appear on the closing statement?
A credit to the buyer for $100 and debit to the seller for $100
What is a "block" in the lot and block system of description?
A group of lots in a subdivision
The Indiana requirement that certifies there are no liens on the property is called
Affidavit of No Liens.
Which of the following is not true? Agents must notify clients and customers about whom the agent represents. Agents must inform clients and customers of the fiduciary duties and standards of care the agent owes them. Agents must inform prospective clients and customers that they no longer have a choice in how they are represented once they sign the agreement. Agents must obtain acknowledgement and acceptance of the disclosure from the principal parties.
Agents must inform prospective clients and customers that they no longer have a choice in how they are represented once they sign the agreement.
When must loan servicers provide borrowers with an escrow statement which summarizes all inflows and outflows in the previous 12 months?
Annually
What is the latest date that a settlement agent is allowed to provide the seller with the Closing Disclosure?
At consummation of the mortgage
What is a measurement of how much is invested in the property for tax purposes?
Basis
Which of the following is NOT true? Brokers are liable for what they know from disclosure by the principal. Brokers are not liable for what they have no way of knowing. Brokers are liable for what they should know because of their skill and training. Brokers are not liable for what they should know by inspection of the property.
Brokers are not liable for what they should know by inspection of the property.
Before a buyer broker shows a property, what must he or she disclose to the seller?
Buyer agency relationship
Which type of agency would be most advantageous to a buyer?
Buyer brokerage
Which of the following is a document NOT required at closing?
Buyer's credit report
The federally-required form that details all money into and out of a real estate transaction is the
Closing Disclosure.
An agency relationship may be involuntarily terminated by which of the following?
Condemnation of the property
Which of the following is NOT part of the settlement process?
Confirm property appraisal
RESPA is administered by the
Consumer Financial Protection Bureau.
Which one of these services is required by a lender and therefore the consumer cannot "shop" for it?
Credit report
Buyers Jim and Sandy will take over the seller's prepaid insurance policy. The premium is $570 and the closing is set for April 11. The seller owns the day of closing. Using the 12month/30 day method, which statement is true?
Credit the seller $410.08; debit the buyer $410.08
Money that the buyer or seller needs to pay at closing is called what?
Debit
If the taxes for current WERE NOT paid and the property sold during the year, how would the entry appear on a full settlement statement?
Debit the seller and credit the buyer
If a client refuses to disclose material defects to a buyer, what should the agent do?
Decline or sever the agency agreement
Which document transfers property to the buyer?
Deed
Since many of an agent's fiduciary duties can only be rendered to one party, an agent would have a difficult if not impossible time performing his/her duties in which type of agency?
Dual agency
Who is responsible for ordering the preliminary title report?
Escrow officer
Which of the following may not involuntarily terminate an agency relationship?
Expiration of the agreement term
A subagent owes customer level services to the buyer which include which of these?
Honesty, fair dealing and the proper disclosure of pertinent facts that affect the value of the property
Which of the following statements is TRUE? -The Closing Disclosure contains estimates of the terms and costs of the transaction. -The Closing Disclosure can be oral. -Even if the actual terms or costs of the transaction change prior to consummation, the creditor can use the original disclosure with an addendum. -If the creditor provides a corrected disclosure, it may also be required to provide the consumer with an additional three-business-day waiting period prior to consummation.
If the creditor provides a corrected disclosure, it may also be required to provide the consumer with an additional three-business-day waiting period prior to consummation.
Which statement is true about accepting referral fees?
It could be a violation of state licensing laws.
What does it mean when a loan applicant signs the Confirm Receipt section on page 3 of the Loan Estimate?
It means that the borrower has received a copy of the form.
What kind of defects are hidden from normal view but still must be disclosed?
Latent
On what document would a consumer find information regarding a good-faith estimate of credit costs and transaction terms for a property loan mortgage?
Loan Estimate
What three items does the TRID Rule require the lender to give to the applicant within three days of receiving a loan application?
Loan Estimate, "Your home loan toolkit" booklet, Mortgage Servicing Disclosure
Which of these items would be a credit to the buyer on the settlement statement?
Loan amount
RESPA allows referral fees for
MLS.
From the seller's point of view, what do credits represent?
More money at closing
Beginning at the SE corner of the intersection of Olive & 270, thence south 350 feet, thence west 350 feet, thence north 400 feet, thence east 400 feet. Is this a good legal description?
No, this is not a good legal description because it does not begin and end at the point of beginning.
If, on the surface, an agency relationship appears to exist, is it what kind of agency?
Ostensible agency
When should the lead-based paint disclosure be given to the buyer?
Prior to closing
Which of the following lines in the Rectangular Survey System run north and south?
Range lines
Which of the following is a credit to the seller on the settlement statement?
Sales price
What do we call an agent who represents a seller exclusively in a real estate transaction?
Single agent
Most real estate listing contracts are which kind of agency?
Special agency
When a seller gives permission to a broker to submit the property to the MLS, the seller is authorizing the broker to make a blanket unilateral offer of what to all the other members of that MLS?
Subagency
Which of the following would be deemed an advantage of a subagency arrangement?
Subagency is an easy way for the cooperating broker to share in the commission.
What property is exempt from the FIRPTA requirement regarding taxes?
The buyer's personal residence that was purchased for $200,000
Which party is responsible for expenses that will be paid in arrears?
The seller
Which of the following statements best describes the term "consummation" as defined under Regulation Z?
The time that a consumer becomes contractually obligated on a credit transaction
What type of information is found in the Loan Calculations section on page 5 of the Closing Disclosure?
The total amount of all payments on the loan, the dollar amount of the finance charges over the life of the loan, the amount financed, the annual percentage rate (APR), and the total interest percentage (TIP)
Buyers Jim and Jan are closing on a home later this month. They have the right to review the completed settlement statement how long before closing?
Three days before closing
Which of the following mortgage loan items would NOT typically fall under origination charges?
Title Insurance
What is the seller's primary function at closing?
To deliver the title
What is the Closing Disclosure form used for?
To disclose settlement costs to the buyer
Why was FIRPTA enacted?
To eliminate the problem of collecting delinquent taxes from foreigners who sold property and left the US without paying the taxes due on the sale.
TRID requires a lender to give a Loan Estimate and a copy of the booklet "Your home loan toolkit" to an applicant within what timeframe?
Within three days of receiving a loan application
If the agency relationship has not been established by a written agreement, does the relationship exist, and if so, what kind of relationship is it?
Yes, it is an implied agency.
With a prorated item, there is always
a debit to one party and a corresponding credit for the same amount to the other party.
Money the buyer or seller needs to pay at closing is
a debit.
Representing both principal parties to a real estate transaction is
a dual agency.
All issues covered under FIRPTA can be avoided if the seller of real property provides the buyer with
a notarized Non-Foreign Affidavit Under IRC 1445.
A licensee must provide ______________ of any existing agency relationships to all parties for whom he or she provides real estate brokerage services.
a written disclosure
A licensee for a seller has a duty to disclose such things except
ability of the purchaser to offer a higher price even if the purchaser is also the licensee's client.
A legal description of a property is one which
accurately locates and identifies the boundaries of the property and distinguishes it from all other properties.
The essential criterion for an acceptable legal description is that it
accurately locates the parcel so that a surveyor can find it.
A person who is empowered to act on behalf of another is called
an agent.
The liability for withholding estimated taxes equal to 10% of the sale price in the sale of a property owned by a foreigner is shared by
buyer and broker.
For purposes of the TRID rule, a business day is a
day on which the creditor's offices are open to the public for carrying out substantially all of its business functions.
The most important document at closing is the
deed.
An agent owes ____________ duties only to a principal.
fiduciary
In preparation for the real estate closing, a major portion of the closing agent's job is to
gather information and documents from various sources.
Before a licensee sign a listing agreement with a seller, he/she must
give the seller an agency disclosure.
Most lenders require buyers to purchase
homeowner's insurance.
Both the buyer and the
lender should have title insurance.
The buyer's primary function at closing is to
pay the purchase price for the property.
The real estate transfer tax is also known as
revenue stamps.
A preliminary title report
shows those items that the title company would exclude from coverage if a policy is issued at a later time.
Properties that have an undesirable reputation due to an associated unpleasant occurrence, such as a murder or gang violence, are known as
stigmatized properties.
Revocation of a broker's license results in
termination of the relationship.
The charge for recording all of the documents involved in a closing is paid to
the county clerk.
The agent who has the job of obtaining the best possible transaction for the seller is
the designated agent.
The most complex of the required documents is
the settlement statement.
The legal description of a recorded plat is incomplete if it lacks
the subdivision's location in a section and township.
A full legal description in a recorded plat must include
the subdivision's location within a section, a township, a county, and a state.
An agent must inform client and customer that the agent represents the client and does not represent the customer, unless
there is a dual agency.
A mortgage Loan Estimate must be delivered within
three business days of loan application.
A range is defined by
two consecutive meridians.
A licensee for the buyer has a duty to disclose such things except
why the seller is selling if the licensee knows this from a previous relationship with the seller.
