Practice Test
A 120-day listing agreement has an expiration date of August 15th. The listing contains a 90 day safety clause. Does the safety clause extend the expiration date of the agreement? A. No, the safety clause period will not affect the expiration date. B. No, the safety clause period starts on the listing date. C. Yes, it will extend the expiration date by 90 days. D. Yes, the listing cannot be terminated while safety clause is in effect.
A.
A brokerage engagement (listing agreement) is considered: A. an employment contract between the listing broker and seller/principal. B. and offer to sell the property at the listed price. C. a contract between the purchaser and seller. D. the employment agreement between the broker and salesperson.
A.
A lender projects that the total monthly house payment for an eligible VA loan applicant will amount to $1,800. In qualifying the borrower for a total debt to income ration of no more than 45%, the lender will need to consider gross monthly income of $5500, a car payment of $350 a month and credit card monthly minimum payments totaling $250. Would the applicant most likely qualify for the loan? A. Yes, assuming a satisfactory credit history. B. Yes, only if the applicant paid off credit card debt. C. No, the total debt to income ratio is too high. D. No, lender will never accept a total debt to income ratio above 40% for a VA loan.
A.
A property is listed for $210,000. The seller's loan balance of $100,000 is to be paid at closing. Closing costs are to be paid by the seller and are estimated to be $2,000. The seller agrees to pay a 6% commission. If the property sells for $200,000, what will be the net proceeds to the seller? 6%= 12,000 A. $86,000 B. $92,000 C. $98,000 D. $100,000
A.
A property sold for $150,000. The buyer's mortgage required a down payment of 15% of the purchase price. The buyer must also pay 1% loan origination fee and $1,000 in closing costs. How much will the buyer owe at closing? 15%down= 22,500 150,000 - 22,500 = $127,500 loan 1%= 1,275 A. $24,775 B. $19,125 C. $22,500 D. $25,000
A.
A veteran has applied for a VA loan to purchase a home with a sales price of $80,000. The VA appraises the home at $76,000. Which of the following statements about what the veteran may do is TRUE? A. The veteran may use the VA loan to buy the home if he makes a cash down payment of $4,000. B. The veteran cannot secure a VA loan because such a loan is limited to a maximum of $60,000. C. The veteran may buy the property with a VA loan only ifnthe sales price is reduced to $76,000. D. The veteran may buy the property with a VA loan only if the seller agrees to take back a second note for $4,000.
A.
As part of a residential real estate transaction in Georgia, closing costs are typically paid by which of the following parties? A. The seller and purchaser may negotiate the costs. B. The lender only. C. The seller only. D. The purchaser only.
A.
Can an eligible veteran use his or her entitlement more that once? A. Yes, if that veteran has paid off all prior VA mortgage or obtained a release from the lender by having another qualified veteran assume the loan. B. Yes, the veteran can have up to two outstanding VA mortgages. C. No, because a veteran can use their entitlement only once. D. No, one entitlement is used it cannot be restored.
A.
May a firm represent both a seller and a buyer in the same real estate transaction and receive a fee from both of them? A. Yes, under a dual agency relationship that has been disclosed in writing and agreed to by all parties. B. Yes, when acting as a single agent. C. No, only one fee can be paid in a real estate transaction. D. No, this is a violation of license law.
A.
The selling price of a home typically indicates its fair market value if: A. the property sale represents an "arms length transaction." B. the property sells in an all cash transaction. C. the property sales closing cost are paid by the buyer. D. the property sale's closing costs are paid by the seller.
A.
What is the loan-to-value ration on a home selling for $80,000 when the borrower makes a down payment of $20,000? A. 75% B. 60% C. 80% D. 50%
A.
When should a salesperson estimate a purchaser's financial ability to buy a home? A. Before showing property. B. When listing the property. C. After the sales contract is signed by the purchaser and seller. D. Only when the purchaser is obtaining a new loan.
A.
Which of the following statements is true regarding FHA and VA loans? A. Neither loan allows prepayment penalties. B. Both loans may cover certain investment properties. C. HUD and the Veterans Administration set interest rates for the loans. D. Both loans require Certificates of Eligibility.
A.
which of the following properties would meet the requirements to obtain a VA guaranteed loan? A. Owner occupied, single family dwelling. B. Owner occupied, ten unit dwelling. C. Tenant occupied, single family dwelling. D. Tenant occupied four family dwelling.
A.
A buyer and a broker entered into a buyer agency agreement. The buyer's broker cooperated with another brokerage company representing a seller. The buyer's broker would consider the seller to be the: A. client. B. customer. C. principal. D. agent.
B.
A listing broker with ABC Realty refuses to allow an agent with XYZ Realty show a client's property because that XYZ Realty has a record of multiple disciplinary actions imposed by the Georgia's Real Estate Commission (GREC). Nevertheless, XYZ Realty submits a client's offer to purchase the listed property. Under the circumstance, does the listing broker have the right to refuse to present this offer? A. Yes, an offer from a firm not authorized by the listing broker to show the property does not have to be presented to the seller. B. No, the listing broker must present all offers to the seller/client. C. Yes, unless the firm is already acting as a subagent of the seller. D. Yes, a brokerage firm that has been disciplined more than once but the real estate commission is limited in the right to present offers on real property.
B.
A real estate transaction would be exempt from the Federal Fair Housing Act if the owner did not place a discriminatory ad and did not use the services of a broker to find a buyer for the property in which of the following situations? A. If the property owner held a real estate license and occupied the home. B. If the property consisted of 4 apartments, one of which was occupied by the owner. C. If the property was duplex consisting of 2 rental units. D. If the property consisted of 6 apartment, one of which was occupied by the owner.
B.
A seller enters into an exclusive brokerage engagement with the agreement that if the owner sells the property personally, no commission will be paid to the agent. This engagement is called: A. an Exclusive Right to Sell Agreement. B. an Exclusive Agency Agreement. C. a sales contract. D. a net listing.
B.
After a listing has been signed, the seller suggests that the listing salesperson not show any prospects the repairs that had been made to the basement foundation. Which of the following expresses how the salesperson should reply? A. "Under the principle of Caveat Emptor I cannot do as you request and keep prospects out of that area" B. "It is my duty to disclose to all prospective purchasers all defects in the property, even defects in that area" C. "I will try to keep prospects out of that area". D. "I will keep prospects out of that area unless I am being paid a fee by the buyer in which case I owe the same loyalty to both you and the buyer and would have to show that area"
B.
If a purchaser takes over the seller's payments on a mortgage loan but does not assume liability to the lender for the loan, then the purchaser bought the home: A. on a loan assumption. B. subject to the existing loan. C. on a wrap around mortgage. D. subject to the lender's approval.
B.
In an assumption, a seller may be released from debt and a new buyer substituted as the party permanently liable for the mortgage debt. Who realizes the seller? A. Mortgage/borrower. B. Mortgage/lender. C. Buyer. D. Seller.
B.
Last year a small apartment building had an effective gross income of $55,575 and expenses of $5,500. If the owner's rate of return (cap rate) is 10%, what would be the value of the property? A. $500,000 B. $500,750 C. $555,555 D. $555,750
B.
On a VA loan, if the borrower defaults, the lender is protected by the: A. veterans administration insurance policy. B. VA loan entitlement guarantee C. VA appraiser's certificate of reasonable value for the property. D. Funding fee from the VA.
B.
The sales price of a property is $92,650. The transfer tax would be: A. $93.00 B. $92.70 C. $926.50 D. $927.00
B.
When should a licensee disclose to the parties whom their firm intends to represent in a transaction? A. When an offer is made between a buyer and seller. B. As soon as possible disclosure should be made verbally and in writing to all parties. C. At closing and before any commissions are paid in transaction. D. When the property is advertised, written disclosure should be made.
B.
You are working as an agent for the broker. In this relationship the broker dictates office hours, work schedules, and withholds Federal and State tax plus pays FICA contributions. This relationship would be considered: A. broker/independent contract relationship. B. employer/employee relationship. C. broker/salesperson relationship. D. agent/principal relationship.
B.
A borrower has a fully amortized, level payment, fixed rate loan. Which of the following statements best describes the loan payments? A. Monthly payments remain the same for the life of the loan with equal portions of the payment applied to principal and interest. B. Monthly payment of varying amounts which cover all interest charged and reduce the principal to zero by the end of the loan term. C. Monthly payments remain the same for the life of the loan and reduce the principle to zero by the end of the loan term. D. Monthly payment of varying amounts which pay all of the interest portion first, then pay the principle portion of the loan.
C.
A borrower would MOST LIKELY obtain the lowest monthly payment on which of the following loans: A. 9% interest rate and a 20 year term. B. 8% interest rate and a 20 year term. C. 8% interest rate and a 25 year term. D. 9% interest rate and a 25 year term.
C.
A broker and seller enter into a exclusive right to sell listing agreement. In this type of agency contract, which of the following statements is typically true? A. The broker has the implied authority to sell, trade or convey title to the listed property. B. The broker will earn compensation from the seller once a buyer is found and the listed property closes. C. The broker is employed as the seller's sole representative to find a ready, willing, and able buyer to purchase the listed property at terms acceptable to seller. D. The listing broker may not engage another broker to serve as a subagent in finding a buyer for the property.
C.
A broker has an exclusive right to represent a builder in the sale of a new homes subdivision. The broker's licensed sales agent show properties in the community and prepare offers to purchase for prospective buyers who are typically not working with other agent. Which of the following statements best describes this circumstance? A. The broker's sales agent =s are designated agents for the purchasers. B. In preparing offers to purchase for the buyers, the sales agents are dual agents. C. The buyers are customers of the sales agents. D. The sales agents are in fact subagents for the buyer customers.
C.
A broker representing the seller offers another broker the right to also act as an agent for this listing firm and the seller. Accepting this offer, the other broker would assume what agency role while working to find a buyer for the property? A. Designated agent B. Dual agent. C. Subagent. D. General agent.
C.
A business owner has title to the real estate where his business operates. The owner would like to free up the equity in the property to provide working funds to expand the business to a second location. Moreover, he wants to retain possession of the current location while continuing to operate the existing business. Which of the following might be used to help the business owner achieve this goal? A. A reverse annuity mortgage. B. A land contract. C. A sale and leaseback. D. A blanket mortgage.
C.
A certificate of eligibility is necessary under which of the following loan programs? A. Fannie Mae/Freddie Mac. B. FHA C. VA D. Conventional
C.
A lender might be guilty of redlining if they refuse to make a loan based on the: A. applicant's race. B. applicant's familial status. C. specific location of the property for purchase. D. credit score of the minority applicant.
C.
A licensee and a homeowner sign a listing agreement. As they were walking through the property together, the broker noticed new paneling had been installed in the basement. The seller told the broker there had been a leak in the new basement wall, but the area had been sealed, and the paneling installed over it. Since the issue had been resolved, the seller advised the agent it need not be mentioned to prospective buyers. What is the appropriate course of action. for the listing agent? A. Follow the instructions of the seller, as the agent owes absolute loyalty to the client. B. Follow the instructions of the seller, as the basement leak had been successful repaired and was no longer a material fact for buyers. C. Disclose to any prospective buyer the basement wall had a leak and that repair work hard been done. D. No disclosure is necessary for the license because the repaired wall represents a patent defect.
C.
A property is appraised by a VA qualified appraiser who will issue: A. An estimate of entitlement. B. An Eligibility Certificate. C. A certificate of Reasonable Value. D. A Comparative Market Analysis (CMA)
C.
A property is described in a listing contract by referencing it land lot, block, district and subdivision. in Georgia, this type of legal description is commonly referred to as: A. A rectangular survey. B. A long for description. C. A short form description. D A township survey.
C.
A property sells for $85,000 with the buyer assuming the seller's loan. The seller's loan balance is $58,000 at 9% interest at the time of closing. How much transfer tax must be paid? 85,000 - 58,000= 27,000 / 100 = 270 A. $81.00 B. $58.00 C. $27.00 D. $143.00
C.
A purchaser money mortgage is a loan offered: A. to the homebuyer by a conventional lender. B. to the homebuyer by an FHA approved lender. C. to the buyer by the property seller. D. to the buyer by a VA approved lender.
C.
A real estate contract indicates that the seller, known as the vendor, provides financing for the purchaser, known as the vendee. At closing, the buyer receives equitable title to the property while the homeowner keeps the legal title until the home loan is paid off. This type of financing agreement is commonly identified as a: A. Sale and leaseback agreement. B. reverse annuity mortgage. C. land contract/contract for deed. D. subject to title mortgage.
C.
A real estate licensee is using a street address as a substitute for the legal description in a listing agreement. Is this practice acceptable by the Georgia Real Estate Commission? A. Yes, if both the buyer and seller agree in writing. B. Yes, providing the broker is notified. C. No, it is not an acceptable practice because just a street address is usually too vague to describe the property. D. No, all legal descriptions in Georgia must include a metes and bounds.
C.
A real estate transaction involves a seller, buyer, one broker, and two sales agents/affiliates. The most probable type of agency here would be: A. single agency. B. dual agency. C. designated agency. D. subagency.
C.
An appraiser identifies outdated plumbing fixtures as having a negative effect on the value of a home. This type of depreciation might best be identifies as: A. curable physical deterioration. B. incurable functional obsolescence. C. curable functional obsolescence. D. incurable external obsolescence.
C.
An appraiser is estimating the value a residential property. When using recently sold comparable properties to find market value for the subject property, the appraiser would: A. always adjust the value of the subject property to account for any differences with the comparable properties. B. account for differences between the subject and comparable properties by always adjusting the values of the comps upward. C. Adjust the values of the comps either up or down in an effort to make the features of those properties as similar as possible to the subject. D. Use the cost/summation approach to estimate the replacement cost for the comparable properties.
C.
As part of a real estate transaction, a purchaser assumes and agrees to pay a seller's existing loan. In this circumstance, what is true regarding each party's liability for this loan? A. The seller is released from all future loan liability. B. The seller retains primary liability for the loan, and the purchaser assumes secondary liability. C. The purchaser assumes primary liability for the loan, while the seller retains secondary liability to the lender. D. Both purchaser and seller have primary liability for the loan.
C.
As the listing agent, Broker Baird is showing the client's home that is next to a vacant lot. If Baird knows that the lot. is zoned for industrial purposes, must he disclose that fact to the prospective purchaser? A. No, because Baird owes loyalty to the seller/client B. Not unless the buyer prospect asks a question about the vacant lot C. Yes, because the vacant lot may be a material fact for the prospective purchaser D. No, because zoning is a matter of public record so this issue for the buyer prospect falls under Caveat Emptor (Buyer Beware).
C.
If the closing date is April 28, the tax bill is $600 and has not been paid, what is the tax proration (use a 365-day calendar year) 600/365= 1.64 31 + 28 + 31 + 28= 118 x 1.64 = 193.52 A. $406.03 debit to seller. B. $406.03 debt to the buyer. C. $193.97 debit to the seller. D. $193.97 credit to the seller.
C.
In Georgia, can a real estate broker receive a commission from a seller that represents a negotiated sum of money above the actual selling price of the property? A. Yes, if the brokerage engagement between seller and broker indicated this method under which commission would be paid. B. Yes, this type of net listing is acceptable in Georgia. C. No, this type of net listing is prohibited in Georgia. D. Yes, if the Real Estate Commission granted an exception for this net listing.
C.
In a land contract (contract for deed), which of the following statements is correct? A. The vendor holds equitable title. B. The vendee holds legal title. C. The seller retains legal title. D. The buyer received legal title.
C.
In the final step of the process to estimate market value for a commercial office park, an appraiser would most likely issue what type of report to the client? A. Letter of opinion. B. USPAP short form report. C. Narrative report. D. Highest and best use report.
C.
In the normal course of real estate activities , licensees may engage in putting together a BPO or a CMA. Such activities for clients, however, should not indicate the opinion is a: A. comparative market analysis. B. broker price opinion. C. appraisal. D. marketing data worksheet.
C.
In the sales comparison (market data) approach which of the following items would be most important? A. The capitalization rate. B. What the owner paid for the property. C. Recently sold comparable properties. D. The gross rent multiplier.
C.
Is it possible in a single agency for the agent to represent both a buyer and seller in the same transaction? A. Yes, if both parties agree in writing. B. Yes, if full disclosure is made to both parties. C. No, single agents cannot practice dual agency. D. No, they can only act as subagents.
C.
Mortgage insurance is typically required on which of the following loans? A. Purchase Money Mortgage. B. 80% conventional loan. C. FHA loan D. VA loan
C.
Private mortgage insurance (PMI) is calculated on the: A. listed price. B. sales price. C. loan amount. D. loan amount less earnest money.
C.
Real estate common law would terminate a brokerage agreement under which of the following circumstances? A. Buyer and seller clients enter into a binding contract. B. Sales agent of either listing or selling broker dies. C. Broker declares bankruptcy. D. Either client defaults on compensation obligation to brokers.
C.
Real estate licensees involved in telemarketing for client prospects are required to check the Do-Not-Call Registry every: A. 7days B. 14 days C. 31 days D. 60 days
C.
Real estate licensees who engage in directing customers or clients in and out of neighborhoods when residents are primarily of the same minority background as the prospective buyers, are guilty under housing laws of: A. blockbusting. B. redlining. C. steering. D. less favorable treatment.
C.
Real estate sales licensee Kevin brings a listing contract to his broker Bob for sellers Joan's home. The agency relationship in this circumstance may be identified as follows: A. Broker Bob is a general agent for seller Joan. B. Sales affiliate Kevin is a general agent for seller Joan. C. Broker Bob is a special/limited agent for seller Joan. D. Sales affiliate Kevin is a special/limited agent for Broker Bob.
C.
The Civil Rights Act of 1866 prohibits, with no exceptions, discriminatory practices involving which of the following: A. Familial status. B. Religion. C. Race. D. Sex.
C.
The owner of a condominium complex hired a broker to find buyers for the last two available units. The broker would be considered a: A. universal agent. B. general agent. C. special/limite agent. D. dual agent.
C.
The principal tells the sales person that they want to end the brokerage engagement before the agreed upon expiration date because the company is not transferring them after all. Can the salesperson release the principal from the engagement. A. Yes, the salesperson is acting for the broker. B. Yes, as long as any incurred expenses are paid by the principal. C. No, only the broker can release them from the contract. D. No, brokerage engagements cannot be terminated prior to expiration.
C.
The type of listing agreement that allows the seller to have contracts with more than one brokerage firm, as well as the right to sell the property and pay no commission is a: A. net listing. B. exclusive agency listing. C. open lisiting. D. exclusive right to sell listing.
C.
To be eligible under the VA loan program, the minimum active service time during "wartime" is: A. 30 days. B. 60 days. C. 90 days. D. 181 days.
C.
Under BRETTA, if there is no expiration date in a brokerage engagement and no authorized termination has occurred, how long will the engagement continue after the initiation of the engagement? A. Three months. B. Six months. C. One year. D. Two years.
C.
Under BRETTA, which of the following brokerage relationship in Georgia must be in writing? A. All brokerage relationships. B. Only listing brokerage engagements. C. All brokerage engagements. D. Transactional brokerage agreements.
C.
Under an Exclusive Right to Sell Agreement/Brokerage Engagement, if the seller find a buyer without the help of the listing broker, is the broker entitled to a commission? A. No, the broker must be the procuring cause of the sale. B. No, the seller has reserved the right to sell the property himself and not pay a commission. C. Yes, regardless of who sells the property, the broker is entitled to receive a commission. D. Yes, all exclusive listing entitle the broker to a commission.
C.
When completing a CMA for a prospective listing client, a license might typically include: A. only recently sold homes that are similar to the subject property. B. only currently listed homes that are similar to the subject property. C. current and expired listings as well as recent sales of homes similar to the subject property. D. a recent appraisal of the subject property.
C.
When listing a property the sellers asked the salesperson to give them an opinion on the validity of the title. The salesperson should: A. check the title before listing the property B. hire a lawyer and then give them an opinion. C. suggest they seek legal advice. D. have the broker give them an opinion.
C.
When might a real estate licensee first complete a competitive market analysis (CMA) for a home seller? A. After the home seller receives an written offer to purchase the property. B. After the home seller has signed a listing brokerage engagement with the licensee. C. Prior to any actual brokerage engagement, as part of the licensee's marketing presentation. D. As part of the licensee's duties to a client before the closing of a sales transaction.
C.
Which of the following actions by a real estate licensee could represent violations of anti-trust laws? A. A brokerage firm that instructs its agents to take no listing for less than a 7% commission. B. A real estate licensee tells a prospective buyer client that brokerage engagements per his broker's policy must be a minimum of 90 day. C. Buyer's agent tells a client that her company's commission policy follows guidelines set by brokers within their market. D. A broker refuses a listing because the seller will not agree to dual agency in a purchase and sale transaction.
C.
Which of the following forms should a licensee complete and give a seller when getting a listing and also prior to closing? A. Seller's Property Disclosure Statement. B. Seller's loan information form. C. Estimated Net to Seller form. D. Loan Estimate form.
C.
Which of the following is a characteristics of a graduated payment loan and generally NOT found in a traditional level payment? A. Simple interest rate. B. Prepayment penalty. C. Negative amortization. D. Adjustable interest rate.
C.
Which of the following is a similar characteristics of both FHA and VA loan? A. Both are government backed loans and non-assumable. B. Both loans require down payments which can be financed. C. Both loans have prepayment privileges and cannot be charged a prepayment penalty. D. These loans must be paid within 20years.
C.
Which of the following parties would be eligible to obtain a guaranteed VA loan? A. Children of retired veterans. B. Grandchildren of retired veterans. C. Widows of veterans whose deaths were service related and who have not remarried. D. Widows of veterans whose deaths were service related.
C.
Which of the followings instructions from a seller client would fall under the broker's duty of obedience? A. "Look for buyers who might fit into the family orientation of this home community." B. "Unless buyers ask about it, no need to mention that the shopping center near here is closing soon. It is almost a mile away anyway." C. "Tell buyers that any offer to purchase will have to include at least $2000 earnest money." D. "Don't bring me any offers less than the listed price."
C.
A home sells for $200,00 and appraises for $195,00. If the purchaser uses a conventional loan with an LTV of 90%, what is the loan amount? A. $195,000 B. $187,200 C. $177,300 D. $175,500
D.
A husband and wife do not jointly own the property to be listed. The listing contracted must be signed by: A. the husband. B. the wife. C. both husband and wife. D. the spouse holding title.
D.
A lender makes a real estate loan and charges discount points. Which of the following statements BEST describes the loan discount? A. It can only be paid by the borrower. B. It can only be paid by the seller. C. It reduces the lender's return on the loan. D. It can be paid by either the borrower or seller to the lender.
D.
A listing brokerage engagement would most accurately be considered: A. an contract to sell a property for commission at the listed price. B. a contract for purchase and sale between a buyer and property owner. C. an employment contract between the broker/principal and sales licensee/agent. D. an employment contract between the broker/agent and a seller/principal.
D.
A property sold for $75,000 and the borrower made a 20% down payment. The lender charged 3 points discount. How much was the discount in dollars? A. $2,750 B. $2,500 C. $2,250 D. $1,800
D.
A real estate agent finds a buyer for a property listed by the licensee's broker. If the commission negotiated in this exclusive right to sell brokerage engagement is 6%, the sales affiliate for the broker will be compensated: A. 3% of the sales price paid directly from the seller's funds at closing. B. 6% of the sales price paid directly from the seller's funds at closing. C. 3% of the sales price paid directly from the broker's 6% compensation shortly after closing. D. a percentage of the broker's total compensation as indicated in the licensee's affiliation agreement.
D.
A real estate licensee establishes employment status as an independent contractor or employee with his/her brokerage firm by what means? A. By a verbal or written affiliation agreement with a broker. B. By the amount of work they perform for the broker. C. By the type of real estate brokerage company for which they work. D. By a written affiliation contract with a broker.
D.
A real estate licensee working with prospective homebuyers is asked by their customers/buyer to suggest a negotiating strategy for a property they would like to purchase. By providing such a plan, common law principles may assume the agent is now representing the buyers as a result of: A. express agency B. designated agency C. sub agency. D. implied agency.
D.
A seller received a check at closing for net proceeds totaling $149,850. If the seller had closing expenses totaling $550, and paid the listing broker a 6% commission, what was the sales price of the property? 6%= 9,600 + 550 +1 49,850 = $160,000 A. $150,400 B. $155,424 C. $159,424 D. $160,000
D.
A transfer fee would MOST LIKELY be charged on a: A. new FHA loan. B. new VA loan. C. new conventional loan. D. loan assumption.
D.
An appraiser's first step in the appraisal process would be to: A. gather general and specific data on the property and neighborhood. B. set the appraisal fee for the job at hand. C. choose the appropriate appraisal method to be used. D. Identify the problem.
D.
Georgia Law requires that an attorney close all real estate transactions. Typically the closing attorney represents which party in the transaction? A. Buyer B. Seller C. Broker D. Lender
D.
Governmental laws that require a brokerage firm to alter the work space to accommodate a physically handicapped employee fall under the: A. Federal Fair Housing Act. B. Fair Business Practice Act. C. HUD Workplace Handicapped Guidelines. D. Americans with Disability Act.
D.
If a seller signs a listing agreement with a real estate firm and the firm procures a buyer/customer for the seller's property, what type of agency exist? A. Subagency B. Dual agency. C. Buyer agency. D. Single agency.
D.
In a loan, principal refers to: A. the interest rate. B. the term of the loan. C. the total number of payments. D. the amount borrowed.
D.
Intangible tax is calculated on the: A. sales price. B. appraised value C. listed price. D. loan amount.
D.
Real estate licensees owe customers: A. Loyalty and disclosure of all property defects. B. Loyalty and disclosure of latent defects. C. Honesty and disclosure of known patent defects. D. Honesty and disclosure of known latent defects.
D.
The commission rate on the sale of a properties most likely negotiated by which of the following parties? A. The sales agent/affiliate and the seller. B. The seller and the purchaser. C. The broker, seller, and lender. D. The broker and the seller.
D.
The interest the seller owes on the current mortgage from the date of the last payment through the date of closing is called: A. compound interest. B. interest adjustment. C. prepaid interest. D. accrued interest.
D.
When making a loan, the lender would normally base the loan to value ratio on: A. the appraisal value or sales price, whichever is higher. B. the list price or sale price, whichever is lower. C. The list price or sale price, whichever is lower. D. the appraisal value or sale price, whichever is lower.
D.
Whether or not a real estate licensee offers a specific agency role such as a dual agent, designated agent or subagent is primarily determined by: A. a client's written authorization. B. the real estate commission's authorization. C. the client's preference. D. the policy and procedures the agent's broker.
D.
Which appraisal method would consider the depreciation factor in evaluating market value for a subject property? A. Sales Comparison/Market Data Method. B. Gross Rent Multiplier Approach. C. Capitalization/Income Method. D. Cost/Summation Approach.
D.
Which of the following is a requirement of an independent contractor's relationship between a broker and a salesperson? A. The salesperson must earn 50% or more of his/her annual income from real estate transaction. B. The broker is required to withhold federal and state income taxes. C. The broker must provide benefits such as health insurance and worker's compensation. D. The salesperson must enter into a written agreement with the broker.
D.
You are pricing a property and found four suitable comparables (I, II, III, and IV) with the following adjusted sales prices: I. $127,000- 20% 25,400 II. $131,000- 60%. 78,600 III. $133,000-10%. 13,3000 IV. $128,000-10%. 12,800 In your opinion, property II was the most similar to the subject property. You decided to "weight" it with 60% of the total value estimate. Accordingly, you decide to "weight" property "I" with 20%. Properties III and IV were least like the subject property and you gave them each 10% for a total of 100%. What is your estimate of what the property is worth? A. $129,750 B. $131,000 C. $133,000 D. $130,100
D.
