10/29 exam 72%
Which clause in a contract states that one or more parties won't be held liable if there are losses or expenses related to the contract? Choice of law clause Indemnification clause Severability clause Time of performance clause
indemnification clause (is a contractual shift of liability and obligations off of a given party.)
Widget Corporation just bought land on which it plans to build a new manufacturing facility. How is the land owned? It's a joint tenancy. It's held as a tenancy in common. It's owned as an estate in severalty. There isn't enough information given to tell.
It's owned as an estate in severalty.
Juan secures a fixed rate amortized 30-year loan for $295,000 at 4.25%. If his monthly P&I payment is $1,750, how much interest does he pay in the second month of the loan? $1,038.59 $1,042.29 $1,044.79 $1,750
$1,042.29 (In the first month, Juan pays $1,044.79 in interest ([$295,000 x .0425] ÷ 12). His monthly payment (stated in the question) is $1,750, so that means he paid the principal down $705.21 ($1,750 - $1,044.79). His new principal balance is $294,294.79 ($295,000 - $705.21). We use the new principal balance amount to calculate interest for the next month. Juan pays $1,042.29 in interest ([$294,294.79 x .0425] ÷ 12).)
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. $1,137.50 $1,662.50 $700 $962.50
$962.50 (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).)
When buyers haven't spoken to their bank or another lender, how should you handle the situation? Ask questions about their income, assets, and debts to determine their buying power. Ask them to come back when they have spoken to a banker or broker. Inform them that they must be pre-qualified before you can show them any houses. Offer to refer them to a lender and prepare them for the meeting.
Offer to refer them to a lender and prepare them for the meeting.
The legal description of the project, easements that run with the land, and street and traffic patterns are all under consideration when a local planning board ______. Calculates the developer's project application fee Considers granting a special use permit to a developer Reviews a developer's project plat Reviews the zoning for a developer's project
Reviews a developer's project plat
The Housing and Community Development Act of 1974 added which protected class to federal fair housing law? Color Disability Religion Sex
Sex
Carly's closing on an REO property was suddenly delayed due to an internal audit. What does this mean? Carly's lender decided to further audit her loan application materials. The banking association is auditing the lender's foreclosure files. The federal government is auditing the lender's foreclosure process. The lender has requested a title audit to ensure that the foreclosure was properly handled.
The lender has requested a title audit to ensure that the foreclosure was properly handled.
Hope's mortgage created a lien against the property she purchased with the mortgage. What kind of lien is this? General Special assessment Vendor's Voluntary
Voluntary
A buyer has a 15-year, $250,000 loan with a 5.5% interest rate. How much of the first monthly payment is interest? $1,145.83 $13,750.28 $1,388.89 $916.67
$1,145.83 ($250,000 x 0.055 ÷ 12 = $1,145.83)
Sherman, who owns property in a life estate, neglects the property, significantly diminishing its value. This is called ______. A lease option An act of waste An estate at sufferance A possessional prerogative
An act of waste
How many acres are in a parcel described as, "The S 1/2 NW 1/4 Section 3, Township 4N, Range 2W of the 6th PM"? 160 20 40 80
80 (This legal description defines half of a quarter section, a quarter section is 160 acres. Half of that is 80. Alternatively, multiply the two fractions denominators (2x4) and divide into 640 (640/8).)
Which of the following is true about ownership or title to a property? Constructive notice to the public of real property ownership occurs when the deed is recorded. The last to record has priority. The seller is responsible for paying for owner's and lender's title insurance. Title isn't finalized until the deed has been recorded.
Constructive notice to the public of real property ownership occurs when the deed is recorded.
You represent the buyer and seller in the same transaction. What type of agency relationship do you have with your clients? Buyer agency Disclosed limited agency Seller agency Undisclosed limited agency
Disclosed limited agency
Wendell just listed Barb's home. Barb told him that there weren't any easements on the property, and Wendell hasn't seen a copy of the survey. What is Wendell's responsibility relative to the disclosure of any easements? He only needs to disclose easements if they're known. He should commission a survey if an existing one can't be found. He should do a title search to confirm any easements. He should require his seller to do online research in the county records database.
He only needs to disclose easements if they're known.
To meet the requirements of the statute of frauds, an agreement must clearly identify the contract's subject matter, present the contract's essential terms and conditions, and ______ to be enforceable. Achieve a result that's fair to all parties Be agreed to verbally Be reviewed by an attorney Identify the contracting parties
Identify the contracting parties
Which of these circumstances does NOT require agent disclosure? As part of his corporation, Sean, a licensee, owns several investment properties. He's selling one. Gary represents the buyer. He's a shareholder in the title insurance company the buyer has selected. Marty is representing Dwayne in both the sale of his current home and the purchase of his new home. Megan has listed her brother's townhome for sale.
Marty is representing Dwayne in both the sale of his current home and the purchase of his new home.
In which of these situations has the licensee compromised the duties of loyalty and disclosure? Diana failed to present the most recent offer to the seller because it was under list price. Hillary, in working with the seller, told the buyer about a material defect the seller hadn't disclosed. Josie, in listing Rob's property, failed to disclose to Rob that he represents the seller. Nate didn't tell his client about a conflict of interest related to the sale of the client's property.
Nate didn't tell his client about a conflict of interest related to the sale of the client's property.
What is the federal program that was created to help mitigate future flood losses across the country? Federal Flood Loss Prevention Program (FFLPP) Federal Flood Loss Program (FFLP) National Flood Insurance Program (NFIP) National Flood Mitigation Fund (NFMF)
National Flood Insurance Program (NFIP)
Maxine is purchasing a small craft shop, including the underlying real estate. She applies for a commercial loan from her federally insured bank to complete the purchase. Is Maxine's transaction covered by the Real Estate Settlement Procedures Act? No; commercial and business loans are exempt from RESPA requirements. No; RESPA only applies to loans obtained from private lenders. Yes; all loans secured by real estate are subject to RESPA requirements. Yes; because she obtains the loan from a federally insured financial institution, the loan is subject to RESPA requirements.
No; commercial and business loans are exempt from RESPA requirements.
Shari's clients want her to post that there are "no showings on weekends" on the MLS. Shari knows that will significantly cut down on their market exposure. Her duty of reasonable skill and care is in conflict with her duty of ______. Accounting Disclosure Loyalty Obedience
Obedience
Ron's company leased a building so that they could build an escape room experience. After operating for two years, their attendance (and thus their profits) started to drop significantly, so they decided it was time to close the location. When they started taking down the installation, they realized that some of the structures they built will damage the walls if they try to remove them. Which of these is true about these trade fixtures? If Ron leaves them in place and the lease expires, he has three months to remove them. Ron is required to leave the fixtures if they're attached. Ron is required to take the fixtures and return the premises to its original condition. Ron may take the fixtures as long as he repairs any damage caused by removal.
Ron may take the fixtures as long as he repairs any damage caused by removal.
Sheila is unable to use her designated timeshare week this year. What will happen? She can exchange the week for another. She won't have to pay the annual maintenance fee this year. The owners association will reimburse her for the week. There is nothing she can do if she can't use the week.
She can exchange the week for another.
The appraisal report submitted to Jenkins, the lender, notes that the property is being conveyed with all property rights intact. Which step in the appraisal process does this represent? Determine highest and best use. Estimate the land value. Gather and analyze data. State the problem.
State the problem.
Shalonda is looking to purchase a home for $325,000 using a conventional loan. She has $49,000 to place as a down payment on the house. Which of the following statements is true? Her down payment on the loan only needs to be 3.5%. She must come up with another $16,000 to purchase the house. She will be required to purchase MIP. The loan-to-value ratio exceeds 80%.
The loan-to-value ratio exceeds 80%.(The $49,000 down payment is 15% of the sales price ($49,000 ÷ $325,000), making her LTV 85%. This means she'll need to purchase PMI. PMI is required for conventional loans that have an LTV greater than 80%. MIP is used for FHA loans.)
Real estate professionals handle many documents related to real estate transactions. Which one of the items listed below is one of the most important in detecting mortgage fraud? Agency disclosures Buyer representation agreement The original sales agreement and any addenda The title
The original sales agreement and any addenda
In order for her house to accommodate her inability to hear, Angela has made a request for the house to be equipped with a doorbell that also alerts occupants with a flashing light. Which statement is correct? If Angela installs the doorbell, it is considered a trade fixture. If Angela wants to keep it, she must remove it prior to lease expiration. This is likely to be considered a reasonable accommodation, and Angela should be permitted to install it at her own expense. This is likely to be considered a reasonable accommodation, and the landlord should install it for Angela. This is not likely to be considered a reasonable accommodation, and Angela will need the landlord's written consent in order to have it installed.
This is likely to be considered a reasonable accommodation, and Angela should be permitted to install it at her own expense.
What responsibility does a seller's agent have to the buyer? Confidentiality and honesty None To get the best price possible To inform the buyer that the agent represents the seller
To inform the buyer that the agent represents the seller
Gus has applied for a home equity line of credit from his federally insured bank so that he can make some renovations to his kitchen. The same bank is his lender for his home mortgage. Will this loan be subject to Real Estate Settlement Procedures Act requirements? No, because Gus won't be using a real estate professional. No, because there's no transfer of title involved. Yes, because RESPA applies to any residential loan transaction from a federally insured financial institution, including equity lines of credit. Yes, because the bank is also the lender for his home mortgage. If he'd used a different lender, RESPA would not apply.
Yes, because RESPA applies to any residential loan transaction from a federally insured financial institution, including equity lines of credit.
Niko leased a unit in a residential building Jenna owned. Niko notified Jenna about a broken window and offered to repair it if it weren't fixed by a certain date. That date had come and gone, and Jenna hadn't fixed the window. Niko hired someone to make the repair and deducted the cost from his next rent payment. Can he do this (assuming the area where he lives has adopted the Uniform Residential Landlord Tenant Act)? No, Niko can't deduct the amount from his rent but can instead seek reimbursement for the costs. No, Niko must receive written permission from Jenna to make repairs to the property. No, only Jenna can make repairs to the property. Yes, but Niko should submit the receipts along with his rent payment.
Yes, but Niko should submit the receipts along with his rent payment.
