Real Estate Study Exam 2022

A buyer and seller, neither of which is under contract with the broker, ask a broker to write a contract for them. What should the broker do?

Refuse to do anything because he is not their broker

A rental property manager's agreement allowed performance of normal maintenance and repairs. Which of the following acts would require the property manager to obtain the specific approval of the owner to do?

Renovate a unit for a tenant

A real estate broker presents an offer to the seller on a property with the provision that the seller has 6 days to accept the offer. At the end of the 3rd day, the buyer withdraws the offer. What should the broker do?

Return the earnest money deposit to the buyer

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?

Seller

A broker decides to lower the prices of her listings after the properties have been on the market for 120 days. She finds that more buyers are now calling on these listings. Which of the following is true about such a practice?

She can do this only with the owner's approval

After Joseph sold his home, he found that the price he sold it for was 23% more than the original cost of $52,500. What was the selling price of his house?

$64,575.

An unlicensed person worked for a real estate company. The unlicensed person showed a friend a home listed by C the real estate company. The friend purchased the home and the unlicensed person is asking for a 2% real estate commission. Can the broker of the real estate company pay the 2% commission?

No, as the employee was unlicensed

At the time of listing, a broker noticed a crack in a wall that was covered by boxes. In showing the property the licensee would:

inform the prospective buyer of the crack

A homeowner makes monthly mortgage payments of $994.32. When the current payment was made, $871.40 was applied to interest and the balance was applied to principal. If the loan interest rate is 10-5/8%, what was the balance of the loan when the payment was made?

$98,416.94.

A buyer purchases a piece of property and pays equal amounts over 5 years, with a lump sum payment at the end of that time. This loan would be considered:

A balloon loan.

After a closing, all of the following documents are recorded EXCEPT?

A certified copy of the Closing Disclosure.

An owner's title insurance policy will protect against:

A person who has a superior claim

Which of the following is used to determine annual real estate taxes?

Assessed value times tax rate.

All property other than real property is known as?

Chattel.

In the event a person was deemed mentally ill but is later found to be free of any mental illness, this person is:

Competent and should be treated as any other person

Which of the following listings is the most advantageous to the broker?

Exclusive right-to-sell.

A person has passed their state examination but has not yet received a license. Which of the following could that person NOT do?

Give the address of a listed property to a buyer

An interest rate that is charged on a loan that is higher than the legal limit violates which of the following laws?

Usury.

A buyer and seller entered into a contract for the sale of a house. The buyer applied for and was approved for a loan. At the last minute the seller backed out of the sale. Is the broker due a commission?

Yes, because the buyer was able to perform all of the requirements in the contract

A person passed a pre-license class and then took the state exam and failed. The person then gave, to a broker, the names of two friends who were moving out of state. The person later moved from the town. Would this person be entitled to a referral commission?

No, this person was not licensed at the time of performing the act

RESPA does not apply to which of the following?

The sale of residential property with 100% seller assisted financing

Broker escrow accounts may be used for:

security deposits for rentals leased by the broker.

If one rectangular lot with 1350' of frontage contains 25 acres, how many acres would the lot next to it contain if it has a 900' frontage and is the same width as the first lot?

16.67 acres

Which of the following is charged with the responsibility of estimating value?.

Appraisers.

Broker Jane is acting as a dual agent in a real estate transaction and decides to appoint salesperson Sara to represent the seller and salesperson Ben to represent the buyer. Ben and Sara both work in Jane's firm.

Ben and Sara are designated representatives.

An agent may discriminate against a potential buyer on the basis of:

Inability to pay.

What type of foreclosure does a lien theory state provide?

Judicial

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:

a violation of state law

Parties to a deed of trust are?

Trustor/beneficiary/trustee.

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?

Zoning ordinances