National Exam Portion
Seller Jason is giving listing agent Rebecca a tour of his house and pointing out all the features, even the spot in the attic where a previous owner's ghost likes to come back and visit. Jason asks Rebecca if buyers should be told about this. Which response is best?
"The presence of spirits stigmatizes the property. Many states don't consider this a material fact requiring disclosure, but this is my first ghost encounter, so I'll check our laws."
Generally, what's the common range for loan origination fees?
1 to 3%
Recently retired Admiral Bongo and his wife, Lucy, contact you. They want you to help them purchase their dream house now that he's retired, but one that has the necessary accommodations for the admiral's disability. They also confide in you that they don't have a lot of money saved up for a down payment. Which type of financing may work best for them?
A VA loan, which requires no down payment
Lynette purchased a property under a bargain and sale deed. Which statement best describes the covenants Lynette's deed provides?
A bargain and sale deed may come with or without covenants of warranty
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 buyer, Billy, wants to make an offer on the craftsman house he saw today, but he wants the sellers to start the paperwork for a tax reassessment before closing. This isn't part of the standard sales contract in your area. What will you use to accomplish this request?
Addendum
Which of the following is an example of the duty of reasonable skill and care?
Advising clients to seek expert advice on matters outside of your expertise
Jeffersontown has a zoning ordinance that requires all properties in a designated historic district to have brick or wood plank facades. No aluminum, cement board, or vinyl siding is allowed. What type of zoning is this?
Aesthetic Zoning
Which of the following is an example of a single agency
An agent from one firm acts as the agent for the buyer
Which of the following is more likely to act as a closing agent
An attorney or title company representative
How might the lengthy purchase process for a short sale or foreclosure impact a buyer's financing?
An existing interest rate lock may expire before the transaction is ready to close
A CMA or a BPO is an example of _____
An informal estimate of market value
What information about a property is the licensee required to disclose to potential buyers?
Any material, adverse information that the licensee has actual knowledge of concerning the physical condition of the property
What are improvements with regard to property?
Artificial attachments to land that include items such as fencing, buildings, and walkways
In the sales comparison approach, using comparable that are 5 and 15 years old when appraising a subject that is 10 years old is an example of what?
Bracketing
Which of the following is an example of an escalator offer?
Buyer offers $650,000 with clause that buyer will beat all competing offers by $3,000 up to $675,000.
Johannes must obtain a permit for a construction project that is located right next to a wetlands. Which federal law or regulation requires him to get the permit?
Clean water act
Which of the following is true about the security of your clients information?
Client data can be compromised if the brokerage's computer system is compromised
Which of these situations represents the illegal practice of Blockbusting?
Corbin tells homeowners in five pints that an impending influx of Asian immigrants will reduce property values
In an amortized mortgage, the monthly payment is the same each month. the part used to pay the principal increases each month, while the amount going toward interest ____
Decreases
Which one of the following is a common problem with roof shingles?
Discoloration or curling
Leonard is offered a loan at 5.75%. Because he plans to be in his home for several years, he chooses to pay points up front to have the rate reduced to 5.25%. What's this an example of?
Discount points
Which of the following is a tactic used by a predatory lender
Encouraging debt
Which of the following statements about escrow accounts is correct
Escrow accounts are managed by escrow agents, and are used to hold funds belonging to others, such as earnest money deposits
A complaint has just been received by the U.S. Department of Justice's Citizen Complaint Center. What's the first step in the process?
Event details are gathered from the complaint
The Graysons just closed on their new home. They move in tomorrow. What type of contract do the Graysons have?
Executed
Rico is an appraiser who is performing a valuation on a property. What's another term for what Rico is doing?
Formal appraisal
Which of the following is an example of an agent exercising the duties owed to customers and other parties?
Francine disclosed information about the flooding basement to the buyer and the buyers agent
Angel's credit card company sued him in civil court for nonpayment. There was a judgment against him, and so now Angel has to sell his classic car and his primary residence to pay the credit card company. What type of lien did the company have?
General
Jerome is developing an ad for three properties he has listed in an upscale community. He wants to keep it short and simple. Which of these would NOT trigger full disclosure under TILA?
Get a look 4.925% APR
Ginnie's Aunt Becca listed the old family mansion with Ginnie. Ginnie put it on the market for Becca, but then she and her cousins talked with Becca and decided they wanted to keep the property in the family. What's the best way to terminate the agreement?
Ginnie and Becca can mutually agree to terminate the agreement
Several brokerage firms in a certain area agree to stop running advertisements in a local publication. what type of antitrust violation is this?
Group boycotting
Thad received multiple offers on his property and is reviewing them with his agent Nora. All of the offers have at least one contingency. Nora recommends that they reject the second offer, because it has a contingency that's generally the most risky. Which contingency is that?
Home sale
Which of the following scenarios accurately describes the similarities between an open listing and an exclusive agency listing?
In both types of listings, the seller who finds the buyer won't owe a commission
Ashish is purchasing a bank-owned property. His real estate agent tells him the bank is offering insurable, not marketable, title. What does this mean to Ashish?
Insurable title is one that may have known defects but is still insurable. Ashish should carefully review the title policy
Your home inspector Mason found some discoloration in the attic and near the windows on the second floor. Why does he think this may be a concern?
It could be a sign of fire damage
Todd and Tory sign a contract agreeing to falsify the cost of roofing repairs on Todd's house so Tory can collect more insurance money. Why is this contract invalid?
Its not for a legal purpose
Which of these is an example of puffery
Kevin's MLS remarks note that the condo has the city's "most beautiful twilight view of downtown and the bay."
A mortgage is a legally binding document that creates a lien on a piece of property and gives the lender the right to foreclose on the property if the borrower defaults. Who or what entity is considered the mortgagee?
Lender
What's the relationship between the loan estimate and the closing disclosure?
Lenders issue the loan estimate within 3 days of receiving an application, and closing disclosure figures should be similar to the loan estimate
What attracts borrowers to adjustable rate mortgage
Lower initial interest rate
Which of these is an example of a sub agency relationship
Morris, who's licensed independently, finds a buyer customer for Greg's listing with Marvel Homes and is obligated to act in the best interest of Marvel Homes' client
Leases may be terminated by expiration, eviction, or ______.
Mutual agreement
In which oof the following situations can the state use its power of escheat
Nadine did with no heirs and no debt
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
Jared, a seller, has found his own buyer and wants to terminate his exclusive right-to-sell listing agreement with Sue, his listing broker. Can he do so without penalty?
No, because the listing agreement is contractually binding
Brynn's listing agent told potential buyers that all offers on Brynn's property would be considered at 5 p.m. on May 3. By that date and time, four offers had been made. The persons making these offers are the ______.
Offerors
Henry is Monica's listing agent. As Monica's agent, Henry has a duty to account for and properly handle her funds and ______.
Paperwork
Gene, a real estate licensee, prefers to use electronic documents and signatures because it means he doesn't have to track people down to deliver documents or have them signed. Which of these statements is true?
Parties to the contract decide whether or not to accept the use of electronic signatures and documents
Leigh Ann is a licensee. Her cousin, Carly, is interested in buying a house. Leigh Ann shows Carly how to look for properties online and runs some CMAs for her. When Carly finds a property she likes and asks Leigh Ann to help her make the offer, Leigh Ann decides she should ratify the agreement with Carly. What are Leigh Ann's options for accepting an agency relationship after the fact?
Prepare an agency agreement or continue to assist carly with her purchase
Tanner, a property owner, wants Gina, a real estate licensee, to manage the property he owns while he's living out of state for a few years. In return, Tanner will pay Gina a flat monthly fee. What type of agreement must be in place between Tanner and Gina?
Property management agreement
Drew and Hank were camping at Hank's riverfront cabin. Hank told Drew that he rarely used the cabin and was thinking of selling it. Drew said that he'd buy it from Hank for $80,000, which Hank agreed was a fair price. It's two months later, and Hank is upset that Drew now says he won't buy it. Why isn't this contract enforceable?
Real estate contracts must be in writing
The primary component you look for when building a short list oof qualified lenders is ____
Real world experience
Cheng is selling his property to Jericho. What's the best method Jericho can use to ensure his interest in the property?
Record the deed in his name
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
Which legal description method is regulated by the U.S. Department of the Interior's Bureau of Land Management?
Rectangular government survey
Duke's client has asked him for advice on a legal matter. Based on the duty of reasonable skill and care, what should Duke do?
Refer his client to an attorney
A homeowner has converted 2 rooms in his home to a rental unit. What does the "Mrs Murphy" exemption permit him to do?
Refuse too rent to a female tenant
Property manager Wayne understands that he may only pay for certain items from funds deposited in a trust account. Which of the following is a legal use of funds from the account?
Repaid of damaged wall after the tenant in 3B moved out
Greta is working with agent Brandon to sell some property. Nelson represents the buyer, Rigby. Of these four parties, who will pay the earnest money?
Rigby
Ron's company leased a building so that it could build an escape room experience. After operating for two years, attendance (and thus its profits) started to drop significantly, so it decided to close the location. When the workers started taking down the installation, they realized that some of the structures would damage the walls if they were to try to remove them. Which of these is true about these trade fixtures?
Ron may take the fixtures as long as he repairs any damage caused by removal
Jean is a licensee for At Home Realty. She chooses her own schedule, sets her own sales goals, and is compensated based on commission. She must complete three training courses each quarter and the required number of CE hours to maintain her license. She must belong to the local REALTORS® association. The firm doesn't pay for employment taxes for Jean. She receives no insurance or other benefits. Which of these factors might cause the IRS to classify Jean as an employee instead of an IC?
She must take 3 training courses through the firm
Trina is a licensee at Midtown Homes. Which of these factors indicates that she's classified as an employee?
She's eligible to participate in the firms 401k retirement plan
Which of these Scenarios is an example of 2 parties rescinding a contract
Sherman, the seller, decides not to sell his condo after all. Fortunately, his buyer, Alice, decided to join the Peace Corps. They mutually agree to cancel the sale with no penalty on either side, and each signs paperwork to this effect.
According to the process appraisers follow, what action is taken first upon being assigned a property for appraisal?
State the problem
Betty hired a contractor to replace her gutters. Within days, the gutters leaked and flooded her basement. She complained to the contractor, who replaced the gutters again. The next time it rained, the gutters leaked and flooded Betty's basement a second time. Frustrated, Betty decided to file a lawsuit against the contractor in an attempt to recover the money she lost. This is an example of ______.
Suing for damages and breach of contract
DeeAnna thought she purchased an investment property, but the seller refused to deliver the title to her. DeeAnna met all of her obligations per the written contract she and the seller signed. She decided to take the seller to court in an effort to force him to hand over the title. This is an example of ______.
Suing for specific performance
In which form of co-ownership is a person's ownership inheritable?
Tenancy in common
Marla's excited about closing on a cute lakefront cottage. But when she reads the report from the home inspection, she learns that the chimney leaks and that there is water damage in several places. This wasn't on any of the seller's disclosures. Which of these is the best option for Marla?
Terminate the agreement and ask for a refund of her earnest money
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.
Florence lives in a planned community with an HOA regulation that prohibits flagpoles. As a veteran, she feels strongly about displaying the flag on Independence Day, Flag Day, and Veteran's Day, so she put up a pole for that purpose. How can the regulation be enforced?
The HOA has the power to enforce the regulation through fines or by taking Florence to court
Rhonda hasn't paid her HOA dues in two years. Her attorney recently informed her that her state grants HOA-related liens a super lien status. What does this mean?
The HOA lien takes priority over all other liens
Marcus listed his property with Home Sweet Home Realty and one of its listing agents, Ron Savage. About a month later, Ron filed for bankruptcy. Which of the following statements about this situation is true?
The agency agreement only terminates if the broker or the principal declares bankruptcy
Tom and Martha live in a neighborhood where lawn ornaments are prohibited. They want to put up a nativity scene at Christmas and argue that the covenant doesn't apply to temporary decorations but only to permanent ones. Their homeowners association disagrees. Which entity enforces subdivision covenants?
The civll court system
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
Reuben purchased a property from a seller who gave him a general warranty deed. What's true of Reuben's deed to this property?
The deed provides the greatest protection available from a grantor to a grantee
This act added familial status and disability (both physical and mental) to the existing federally protected classes.
The fair housing amendment act
Which of the following statements about the number of contingencies in a sales contract is true
The inclusion of numerous contingencies makes it less likely that the buyers offer will be accepted
A prospective buyer is curious why a previous owner is selling such a perfect home. The licensee knows that the previous owner recently died due to complications from AIDS. How should the licensee respond to the prospective buyer's inquiry?
The licensee can't disclose that a previous owner had HIV or AIDS.
John's home is up for sale. He originally bought it five years ago for $300,000. Its current value is $350,000. His real estate agent notified him that a buyer just made an offer on his home for $365,000, which is the price for which other similar homes in the neighborhood are selling, and John accepts. What does the price of $365,000 represent?
The market value
What's the meaning of "good faith" in relation to contract law?
The parties agree that they'll execute the contract to the best of their ability and with our any fraud or misrepresentation
Which of the following statements is true abut government loans?
They're insured or guaranteed by a government agency
In marketing her new listing, Alice asks the photographer to "touch-up" the photos of the house so that the old roof and siding look as though they are new. Which statement about this is true?
This is deceptive advertising for which both Alice and her broker may be disciplined
A ______ is a piece of real estate owned by multiple unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit based on the specific terms of a timeshare agreement, usually in one- to two-week intervals during the year.
Timeshare estate
In a real estate transaction in which you represent the seller, your duty to other parties is to ____
Treat them honestly and fairly
Related to the legal description of land, what is a monument?
a permanet land marker sometimes used in legal description
What is it called when all parties sign a contract, but before the sellers acceptance is delivered to the buyer?
acceptance
The best way to start comparative market analysis data collection is to use properties that sold in which timeframe?
no later than 3 to 6 months ago
To make valid computations of adjustments for the sales comparison approach to value, elements of comparison must be applied in a specific order. which one of these elements is applied last?
physical characteristics
As a licensee, you'll have several tasks you must perform for your buyer client. One of these tasks is to ______.
review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license
