nat 6

The Slathertons are looking at buying a $300,000 property with a 20-year loan at a 6% interest rate. Using the amortization chart factor of 7.16431, how much would their monthly principal and interest payment amount be?

$2,149.30

Lance purchased a home, but he won't own any real estate—just shares in a corporation. This is because his new home is ______.

A cooperative

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.

A mortgage recording tax is based on the loan amount. Phyllis will pay a mortgage tax amount of $962.50 on her loan amount ($275,000 x .0035).

A buyer is purchasing a property for $400,000. His loan-to-value ratio is 80%. The lender also charges a one-point loan origination fee. How much is the loan origination fee?

An 80% LTV ratio means the buyer is financing 80% of the purchase price. Eighty percent of the purchase price is $320,000, and one point, or 1%, of this amount is $3,200.

Shane's buyers learned during the inspection that there was water damage around the fireplace and that the chimney needed new flashing and to be repointed. To whom must Shane disclose that information?

Any party to the transaction

Belinda's client asked her to draft an addendum containing complicated terms that even Belinda doesn't fully understand. Belinda should ______.

Avoid unauthorized practice of law

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.

Jackson Elementary School is undergoing some major renovations during the summer while school is out of session. The renovation crew has a detailed list of requirements for the disposal and drainage of wastewater and sewage. These requirements are likely part of the ________ with which the renovators must comply.

Building codes specify construction standards to ensure the health and safety of those using the buildings. Sanitary drainage and disposal are a common building code standard.

Which of the following features is most likely to be the cause of an adjustment to a comparable when preparing a CMA?

Busy street

Christine listed her house with you. Licensee Tailleur represents the buyer, Rebecca. The seller's mother, Freida, is paying your commission. Which of these factors determines how legal agency is determined in this situation?

Christine listed the property with you.

Title VIII of which law prohibits discrimination in the sale, rental, and financing of housing?

Civil Rights Act of 1968

With the cost approach to value, what is the replacement cost?

Cost to build a functionally equivalent improvement

Don and Becky realized too late that the contract they signed for the sale of their home didn't include any language about a rent-back if the home they're building isn't ready in time. What can their listing agent do?

Create a contract amendment with the required language.

Chip is a residential and commercial agent. His friend asks him to list his cattle ranch for sale, but Chip's never listed an agricultural property before. How should Chip handle this listing so he can still work for his friend but also not work outside his area of expertise?

Disclose to his friend that he's not an agricultural expert and ask his friend's permission to work with an agricultural expert in his firm.

You represent the buyer and seller in the same transaction. What type of agency relationship do you have with your clients?

Disclosed limited agency

What must sellers provide prospective buyers of homes built prior to 1978, in addition to the federally required disclosure form?

EPA lead safety pamphlet

Joe gave land to a school, but still wanted to have some control over its use, so a deed was prepared that gave the school title as long as the land is used for educational purposes. What type of interest does the school have?

Fee simple determinable

Jane is selling her home to Micah. What must occur for Jane to effect a transfer of title to Micah?

Jane must deliver the deed to Micah.

If a licensee has fiduciary duties to obey all lawful instructions from a client and also to exercise reasonable skill and care, which answer describes a situation in which there is a conflict between the two fiduciary duties?

Jefferson insists that Ronna interpret the implications of him breaching his contract with a buyer.

Which body of law contains the rules governing the relationship between a real estate professional and the person being represented?

Law of agency

Marsha's title insurance policy was issued on closing day, which was June 18. The policy lists the standard exclusions as well as requirements for the company to issue the policy, such as paying off existing recorded liens. Which one of these will NOT be addressed in the schedule of exceptions?

Marsha's second mortgage on the property, which she plans to get next January

Nelson manages a building with a strict "no pets" policy. Shanna, who is disabled and uses an assistance animal, wants to rent a unit in the building. What action can Nelson legally take?

Nelson can allow Shanna to rent the unit but can't charge a pet deposit or any extra fees.

Sue Ellen has a contract to buy Roger's house, which she has always admired, when Roger decides he's ready to move to a senior living community. After Roger finds a suitable senior apartment and moves, Sue Ellen writes a check for the agreed-upon amount, and Roger transfers the deed to her. What is happening in this scenario?

Performance

The government's authority at all levels to ensure the health, safety, and welfare of its citizens, which includes the control of public land use, is the definition of ______.

Police power

Which one of the following is an example of the duty of loyalty?

Putting the client's interests first

What factors directly affect an adjustable rate mortgage?

Rate, index, and margin

The buyer you're working with doesn't want to enter into an agency relationship. However, the buyer begins to rely more and more on your advice and, indeed, implied agency has begun! You could have avoided this issue by providing appropriate disclosures, but now that you've created implied agency, what should you do?

Ratify the implied agreement by getting a signed agency agreement.

Melisa's mother gave her house to Melisa, along with a signed copy of the deed granting ownership to Melisa. Years later, Melisa decides to downsize by selling the property. The title company shows that the property is still in Melisa's mother's name. What does Melisa have to do to clear this up?

Record the signed deed.

Conrad just closed on the house he's buying to fix up. Why should he follow up to be sure the deed has been recorded?

Recording provides constructive notice that he owns the property.

The Housing and Community Development Act of 1974 added which protected class to federal fair housing law?

Sex

Travis made the final payment on his loan according to the loan terms. What must the note holder do to acknowledge that the debt has been repaid?

Sign the note, mark it "paid in full," and return it to Travis.

According to the process appraisers follow, what action is taken first upon being assigned a property for appraisal?

State the problem.

Katelyn wants to include an inspection contingency in her purchase offer. Her agent explains that the inspection contingency will document which of the following?

The date by which all inspection issues must be addressed

To which of the following are most of the buyer's closing costs typically related?

The mortgage loan the buyer's obtaining

Sophia and Antonio are expecting twins. They want to sell their old house and buy a larger home using a conventional loan. In order to be sure they'll get the PMI waived, what will they need to have?

They should have a loan-to-value ratio of 80% or less.

Shakira is attending an association meeting when, in a small group breakout, her group begins discussing how to deal with the new kid in town: a real estate firm that charges a flat $500 to list properties, then lets the sellers fend for themselves. Why should Shakira leave the discussion?

This conversation sounds like it might become an antitrust violation.

How many acres are in a parcel described as, "The NE 1/4 SW 1/4 Section 3, Township 4S, Range 2W of the 6th PM"?

This legal description defines a quarter-quarter section, which is 40 acres. Alternatively, multiply the two fractions' denominators (4 × 4) and divide into 640 (640 ÷ 16 = 40).

Which of the following can be defined as what a property is worth?

Value

Hope's mortgage created a lien against the property she purchased with the mortgage. What kind of lien is this?

Voluntary

A property's value is dropping because the neighboring property's yard is filled with trash. What's this an example of?

When the value of a higher-quality property is reduced by an adjacent lower-quality property, this is called regression.

Can a listing agreement be terminated without penalty?

Yes, with both the listing broker and the seller's agreement in writing