real estate

Which of the following is true about an attorney's opinion of title?

It uses public records to validate property transfers.

According to Article 13 of the NAR Code of Ethics, you should recommend that legal counsel be consulted when _______.

It's in the best interest of any party in the transaction

Lacey is preparing an offer for her buyer clients, and it's time to enter the amount of earnest money they're going to offer. Which of the following statements is true regarding what earnest money the buyers should offer?

Lacey should allow her clients to determine the amount of the earnest money offered.

In real estate contracts, which are required: legal descriptions or street addresses?

Legal descriptions are required, because they provide less ambiguous and more complete descriptions of properties than street addresses provide.

Joe signed a listing agreement with Marisa. A week later, Marisa's co-worker, Tina, showed Joe a property that he's interested in buying once his home sells. A week after that, Ross submitted an offer on Joe's property on behalf of his buyer client. Who is Joe's agent?

Marisa

One of a seller's agent's duties is to ______.

Market and sell the property

Which of the following statements is true regarding assignments and subleasing?

Neither assignment nor subleasing relieve the former tenant of liability.

Under what conditions would a licensee not have to pay back the recovery revolving fund balance?

None; disbursements must always be repaid

The essential elements of a contract are ________.

Offer and acceptance, consideration, legal capacity, consent, and legal purpose

Any compensation paid to a licensee must be ______ by the licensee's supervising broker.

Paid

Sandra enters into a contract to sell her home to Paul. Under the statute of frauds, in order to be legally enforceable, the written contract must name the contracting parties, identify the subject matter of the contract, and ______.

Present the essential terms and conditions of the contract

An environmental impact statement is most likely needed in which one of the following situations?

Proposed construction from a federally funded agency

Which of the following is an example of single agency?

Randolph from ABC Realty represents Cindy, a buyer for Carol's listing. Carol is affiliated with Net Realty.

When banks have lots of funds available for lending, what tends to happen to interest rates?

Rates decrease.

Sherman owes $225,000 on his home. It's currently worth $240,000. How much equity does Sherman have in his home?

Sherman owes $225,000 on his home. It's currently worth $240,000. How much equity does Sherman have in his home?

Which of these pieces of legislation work together to prevent discriminatory lending practices?

The Equal Credit Opportunity Act, the Community Reinvestment Act, and the Home Mortgage Disclosure Act

What happens if a mortgage contingency is in effect and the buyer cannot meet the terms of the agreement due to the inability to obtain a loan?

The agreement is terminated

Aside from price, which of the following is a legitimate reason to counter an offer?

The closing date is unacceptable to one party.

Where can you find out what's not covered by a title insurance policy?

The title insurance policy's schedule of exceptions

Which document is used to protect the buyer from title defects after closing?

Title insurance policy

What duties does a buyer agent have to the seller?

To disclose the agent's relationship with the

What's the purpose of the Interstate Land Sales Full Disclosure Act?

To prevent the fraudulent sale of property across state lines

Which of the following is an action that real estate licensees may take without practicing law illegally?

Use existing forms that an attorney has reviewed.

When will the commission consider ordering payment from the recovery revolving fund?

When a final court judgment is issued, an order of payment is sent, and all attempts to collect from the licensee have been exhausted

To avoid the risk of non-compliance with federal regulations, brokerage firms should have ______ in place to educate licensees about regulations and communicate expectations about performance and compliance.

a polices and procedures manual

What's the term for an addition to a sales agreement form that can be added before the it is signed, without changing and of the other terms that have already been agreed upon?

addendum

James is obtaining an 80/20 loan. What does 80/20 signify?

ammount financed/down payment

Fiona signed an agreement to either buy or not buy Nick's vacant lot for $310,000 by a specific date. What's this agreement called?

an option

Which laws prevent real estate licensees from setting a standard rate for commissions or compensation?

antitrust

Licensees must disclose ______ to consumers to avoid a prohibited act violation.

any personal interest in a property

What's a certified opinion or estimate of value of a particular property as of a particular date?

appraisal

Which of these items should real estate professionals help first-time buyers and buyers who have experienced recent credit issues to understand?

appropriate financing

The Kansas Real Estate Commission DOESN'T have the authority to do what relative to prohibited act complaints?

award monetary damages

______ is a process in which an appraiser determines a probable range of values for a property by comparing a group of comparable sales to the subject. The appraiser attempts to include both superior and inferior units of comparison, such as age, transaction price, etc.

bracketing

Rachel and Nick are selling their home. Before the property is sold, a title search is conducted to determine if there are any ______.

defects on the title

Diego represents Matt in the purchase of a house. Kitty represents the seller, Tyler. Which of the following statements accurately reflects the fiduciary duties owed?

diego owes tyler the duty of disclosure

What type of agency exists when a buyer's agent is also the listing agent for the same property?

dual agency

What do buyers provide to the seller as an indication that they are serious and intend to go through with the purchase?

earnest money

Which of the following occurs when a property owner dies without having a will in place, and no heirs or creditors can be found?

escheat

Which laws does the Office of Fair Housing and Equal Opportunity uphold?

federal fair housing laws

What's the broadest estate a person can have in real estate?

fee simple

Which of the following is an example of a deed restriction?

fence height

If Elizabeth is a property manager, she is acting as what of type of agent?

general

What's used to calculate the housing debt-to-income ratio and total debt-to-income ratio?

gross income

Michael doesn't have a real estate license, but he helps his friend, Nancy, sell her home. What can Michael legally receive as compensation?

heart felt thank you

When might a builder need an elevation certificate?

in order to qualify the property for flood insurance

Jorge is a dual agent. He owes his clients all of the following fiduciary duties except ______.

individed loyalty

Liz listed her property with an agreement end date of May 31. The property went under contract on May 12 and closed on June 2. When did the listing agreement officially terminate?

june 2

A property owner's right to access ponds, lakes, oceans, and other closed bodies of water bordering the owner's land is called ______ rights.

littoral

A fee a lender charges for processing a loan is called _______.

loan origination fee

What are the three most common forms of legal descriptions?

metes and bounds lot and block and rectangular government survey

Sam the appraiser is most likely to use the cost approach for which of the following properties?

movie theatre

Your seller clients, the Bishops, must make $255,000 off the sale of their home. They are more concerned about getting the right price to make that happen than the amount of commission they'll pay, and they say you can keep any amount above the $255,000 they need to make. What type of listing is this?

net listing

Chance and Lucky have an option agreement between them in which no consideration is provided. Is this enforceable?

no

is a void contract enforcement

no because it never existed

Three friends entered into a contract to buy a vacation property. The friends got into a dispute, resulting in one of them wanting out of the deal. The remaining two friends didn't want to lose the deal, but couldn't afford it on their own. They talked a fourth friend into replacing the person who backed out of the contract. The seller agreed to the substitution, and they moved forward with the purchase. What does this describe?

novation

whats the meaning of fee simple estate

one that conveys the broadest dorm of ownership

Built-to-Last Construction, Inc., entered into a contract to build a new home for Jane and Dick Monahan. The contract specified that the home must be completed by June 1. Built-to-Last Construction finished the home on May 28. What's this an example of?

performance

The components that make up a borrower's mortgage payment can best be remembered using which acronym?

piti

Your clients, the Jamesons, are selling their lakefront property. They receive an offer, and the buyer has included a pre-approval letter. The Jamesons balk, saying, "We want a pre-qualification letter, or we're not selling." What do you tell them?

pre approval better than pre qual

A negotiable instrument must contain an order to pay or a ________.

promise to pay

Species habitat, beauty, erosion control, and pollution treatment are all reasons that wetlands are ______.

protected

Which of the following actions does the secondary mortgage market commonly take?

purchase loans from lending institutions

Which of the following would have first priority in the event of a foreclosure?

real property tax lien

Which of the following actions performed by a licensed salesperson constitutes a real estate violation?

refusing to show a property to minorities

When a lower-quality property is adjacent to a higher-quality property, it can diminish the value of the higher-quality property. What economic principle is this?

regression

what type of tenant uses a percentage lease the most often

retail

Why is errors and omissions insurance recommended for all licensees?

risk is an inherent part of real estate activities

Agatha helped her client Rufus complete the ______, which documents Rufus's purchase offer to the seller for the property he is interested in buying.

sales contract

Vanessa forgot all about renewing her salesperson license and it has lapsed. In Kansas, what must she do immediately?

stop performing real estate act

With which type of government power can a lien be placed on a property, giving the government a claim to the property?

taxation

Which law requires the EPA to establish air quality standards?

the clean air act 1970

Mark works at Farm and Country Bank, and has arranged an agricultural loan for Josh, a local organic farmer. Josh didn't meet the bank's normal underwriting standards, but Mark made the loan because he was able to arrange for a guarantee from ______.

the farm service agency

Which of the following statements about covenants is true?

the full covenant and warranty deed contains the strongest and broadest form of guarantee of title

What does a chain of title document establish?

the path of title ownership overtime

Marcy listed her property with Jennings Homes in March. The market is slow, and Marcy's property isn't in great condition, though she's sure she can get top dollar for it because of its location. Her agent encourages her to either reduce the price or fix the property up, but she refuses. Both Marcy and her agent are frustrated. What's the best option for both of them?

they can mutually agree to terminate the listing

Sally is a licensee working under a written brokerage agreement with buyer Barney. Although she's assisting him in the transaction, he's her customer (not her client), and she doesn't owe him any fiduciary duties. Based on this, you know that Sally's acting as a(n) ______.

transaction broker

When a lender charges a borrower more than the highest allowable interest rate, it is called ______.

usury

If a contract is accepted under duress, it is _______.

voidable by the victim

Jay's new loan to purchase a property includes the seller's existing mortgage. What type of loan is this?

wraparound

Ella, a listing agent, accidentally discriminated on the basis of familial status when she used which statement in her advertisement?

"Families will love it here!"

Bob and Mary are financing $80,500 for a new home. Their lender will approve an interest rate of 6.5% if Bob and Mary pay three-and-a-half discount points at closing. How much is this?

$2,817.50

Carson is purchasing a $600,000 property by obtaining an 80/20 loan. How much is Carson financing?

$480,000

A seller you're working with still owes $50,000 on his mortgage but wants to net $20,000 after the mortgage and 7% commission are paid. What is the minimum for which the house must sell?

$75,269

Benji is a buyer's agent, and he'll receive a split of the commission paid from the sale of Harriet's listing. The property sold for $425,000. The total commission paid from the sale is 6%, split evenly between the buyer and seller brokerages. Benji has an agreement with his broker that he earns 80% of the commission received. How much will Benji be paid from this sale?

10,200

A $400,000 property depreciated in value by 2%. What's its new value?

392,000

how large is an acre

43,560 sq ft

If a real estate license expires in Kansas, how long does the licensee have to renew the license before it can no longer be renewed?

6 months

A buyer with a 15-year, $250,000 loan at a 5.5% interest rate has a monthly principal and interest payment totaling $2,042.71. If $1,145.83 is interest, how much is applied to principal?

896.88

Failure to respond to ______ may result in a disciplinary sanction and possibly fines.

A KREC complaint

Which option best defines voluntary alienation?

A property owner intentionally transfers property to another.

What is a ministerial act?

A routine act that does not involve judgment, advocacy, or negotiation

brownsfield

An abandoned or unused commercial or industrial site with suspected contaminants

Which type of contract involves an exchange of consideration between two parties?

Bilateral

The ______ protects consumers from unwanted email solicitations.

CAN SPAM 2003

What's the term for a contract for which one or more terms have yet to be completed?

Executory

Frederick has a new buyer client who is asking him about whether a neighborhood he is considering is primarily Hispanic. How should Frederick respond?

Frederick should explain to the client that he can't answer that question in accordance with fair housing laws.

SARA's landowner immunity status option offers a potential relief to owners of ______.

Hazardous waste cleanup costs on their land if it's determined that they're not at fault for i

Jillian has a loan-to-value ratio of 90/10. This means ______.

Her loan is 90% of the value of the real estate used as collateral and she's putting 10% down.

Former buyer clients of Phil's filed an ethics complaint against him because the house they bought needed a new roof. Phil had recommended they hire an inspector before purchasing the property, but they'd declined. Phil ______.

Is probably not at fault, since it isn't expected that agents have expert knowledge of roofs