exam1001
If your clients are in a competitive bidding situation and want to include multiple contingencies in their offer, what should you say to them?
"Let's evaluate which contingencies matter most to you and consider omitting the rest."
Your buyer client, Max, just signed a purchase agreement for a $520,000 home. He has a 60% LTV ratio, and his lender's charging a 1.5% loan origination fee. What loan origination fee can Max expect to pay at closing?
$4,680
Yasmin listed a house at a 6% commission rate, and it just sold for $463,500. Her brokerage and the buyer's agent's brokerage split the commission equally between them. Then Yasmin, who has a 60/40 commission split with her broker (Yasmin gets the higher split), took her check to the bank. How much did Yasmin earn from this transaction?
$8,343
Which of the following statements regarding reasonable accommodations and modifications is true?
An individual can make a request for accommodation or modification at any time.
Which of the following is a true statement about building code regulations?
If there's no state or local building code to cover a situation, the national code applies.
Jerry and Simon signed a contract so that Jerry could purchase all of Simon's restaurant equipment for one price after Simon closes his restaurant next month. The contract contains a provision that states Jerry has one year from the purchase date to file a suit relative to the purchase. After the year is up, Jerry forfeits the right. What kind of contract clause is this?
Statute of limitations
Ken, a licensee, has published an ad claiming that he can sell homes for 25% more than any of his competitors. The Federal Trade Commission determined this to be a deceptive ad. What might the FTC require Ken to do as a penalty for his deception?
Take out new ads correcting the misinformation in his original ad.
What is the name of the federal law that sets forth guidelines regarding telephone solicitation?
Telephone Consumer Protection Act
You're explaining to your client that using electronic documents and signatures simplifies the home buying process. Your client is skeptical about these signatures. You describe the Uniform Electronic Transactions Act (UETA) and tell your client ______.
The UETA gives electronic signatures the same legal weight as "wet" signatures
A "homes for sale" magazine contains the following ad: "Cozy two-bedroom starter home, neat and clean, ready for move-in. $140,000. Low down payment and easy financing!" Which of these statements is true?
The ad complies with TILA because it doesn't contain any of the trigger terms that require full disclosure of all financing terms.
Which of the following strategies would help to make a "Choose Your Neighbor" marketing letter non-discriminatory in its effect?
Listing the property on the MLS
When a contract doesn't provide specific dates for when the terms need to be met, what should the parties assume regarding performance of the contract?
Performance must take place within a "reasonable time."
Bob signed a contract to purchase Ingrid's apartment building. Bob decided he didn't want to be a landlord, and Ingrid decided she didn't want to sell and move to Maui. They mutually agreed to cancel the contract and Ingrid returned Bob's earnest money. This is referred to as ______.
Rescission
What's the term for a requirement that all property owners in a subdivision have a six-foot privacy fence surrounding their entire property?
Restrictive covenant
Why would buyers want to know whether a property is currently experiencing a tax abatement?
Their taxes are likely to increase when the abatement period ends.
Gail was supposed to close on her new home by the end of May, but she kept asking the sellers if they could push the closing date back. Soon the summer was over and she still hadn't closed. Gail was guilty of not adhering to which aspect of the contract?
Time is of the essence
Which of these professional activities is NOT covered by the Fair Housing Act?
Vickie's staging company works with investor clients to stage vacant properties.
The Gomez family just moved into their dream home. They purchased the home for $264,985, and it appraised at $272,402. The assessment ratio for their area is 25%, and the tax rate for their area is 2.8%. What is their annual tax bill?
$1,907
What's the estimated value by cost approach for a property if the site value is $25,000, the new cost of improvements is $100,000, and the total depreciation estimate is $15,000?
$110,000
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
Alexandra sells her house to Clark for $178,000. They negotiate to split the transfer tax, which has a rate of $0.33 per $100. What do they each pay to cover the transfer tax?
$293.70
A buyer anticipates a house payment of $1,000 per month, with monthly homeowner association fees of $150. The buyer also has a car payment of $400 per month. If the buyer earns a monthly gross income of $5,000, what is the total debt ratio?
31%
Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with cooperating brokerages. Last month, he was paid $12,239.50 in commissions from his home sales, which totaled $538,000. Assuming every transaction for the month was shared with a cooperating brokerage, what is Jared's brokerage's commission rate?
6.5%
A buyer is purchasing a home for $400,000 and is financing $300,000. What is the loan-to-value ratio?
75%
Which of the following is an example of constructive eviction?
A tenant moves out of the apartment after repeated unsuccessful requests to the landlord to repair the broken water heater.
Your client, Cassandra, asks you at what stage in her property ownership life cycle she'll be impacted by income tax issues. You tell her that it's likely that she'll be affected at ______.
Acquisition, ownership, and reversion
Carlson presents a real estate purchase contract to his clients. Along with the contract are several supplemental documents attached to it. What are these called?
Addendums
Jeung gave her agent an earnest money check, and the seller accepted Jeung's offer. What will happen to the check now?
An escrow agent will hold the funds in a trust account until the agreement's terms are satisfied.
Lowell used to own 17 acres of property on the bay. After last year's hurricanes, Lowell now owns 15.5 acres of bayfront property. Which natural process was responsible for Lowell's loss of acreage?
Avulsion
Who typically performs an appraisal
Certified appraiser
A deed states, "For love and affection, the receipt and sufficiency of which is hereby acknowledged." What does this statement represent in the deed?
Consideration
A ______ is a method of conveying real property from one party to another.
Deed
Seth owns a property on a small island with six other property owners. Recently, Seth built a fishing pier along the water's edge; however, the pier is actually on his neighbor's property, which Seth has no rights to. What might this be an example of?
Encroachment
Celia was obtaining a conventional loan, and she put $50,000 down as a down payment. Why might her lender also require her to obtain private mortgage insurance?
Her down payment of $50,000 isn't at least 20% of the purchase price.
Which of the following duties are owed to customers and other parties to a real estate transaction?
Honesty and fairness
Which of the following would be a description used for real property and a fixture?
In-ground
Which of these is essentially the same as fraud?
Intentional misrepresentation
Drake's offer to purchase Kevin's condo currently has a financing contingency, an inspection contingency, an appraisal contingency, and a sale of current home contingency. Kevin also got an offer from Lucy, which came in at $5,000 less than Drake's offer but with only an appraisal contingency. What is true about Drake's offer compared to Lucy's?
It's likely viewed as a less favorable offer.
What happens to an initial offer from the buyer after a seller counters?
It's no longer in play.
Max has a written agency agreement with Rufus in which Max will receive all of the listings in the subdivision that Rufus purchased (with Max's representation) and is developing. One day when Rufus is visiting the site of the subdivision, a work truck accidentally runs him over and he's seriously injured. Rufus can no longer run the development of the subdivision. What happens to Max's agency coupled with interest?
It's still in place because it doesn't terminate on the death or incompetence of the principal.
Murphey's farm has been in his family for generations, since his great-great-great-grandfather received it as a land grant in 1862. What's the beginning point of this property's chain of title?
Murphey, the current owner
In which of these situations has the licensee compromised the duties of loyalty and disclosure?
Nate didn't tell his client about a conflict of interest related to the sale of his client's property.
Subdivision regulations imposed by developers in an effort to maintain control of the development of the subdivision are an example of ______.
Private land use control
When questions arise that are outside of your scope of expertise, what should you do?
Refer clients and customers to a competent professional in that field.
Sam grants Steve a license to hunt deer on his property. Which of the following statements about the license is true?
Sam can revoke the license at any time.
Sheila is unable to use her designated timeshare week this year. What will happen?
She can exchange the week for another.
Which of these tasks that Jenna performs does NOT represent the fiduciary duty of accounting?
She discloses the terms of the listing agent's compensation to her client.
Which of these statements most accurately represents existing federal antitrust legislation?
The Clayton Act supports the Sherman Antitrust Act's purpose of prohibiting monopolies by prohibiting mergers or acquisitions that would create a monopoly.
Which of these statements accurately describes finance- and housing-related legislation?
The Fair Housing Act of 1968 prohibited discrimination in the sale, rental, and financing of housing based on race, color, religion, or national origin.
This act added familial status and disability (both physical and mental) to the existing federally protected classes.
The Fair Housing Amendment Act
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
Trina's property is listed with Avalon Homes. The market is a little slow, and Trina's listing is a high-end home, where sales are even slower. She's had several showings, but no offers. The term of the listing agreement is nearly over. What happens when the termination date is reached?
The listing expires and is automatically terminated.
Quad City National Bank has several REO properties on its books. Why does the bank own these properties?
The properties went through the foreclosure process and didn't sell at auction.
Why does the closing agent review the purchase contract?
To gather closing-related information agreed to in the contract
Rescission can be a(n) ______ agreement to cancel a contract.
mutual
