Real Estate Final Exam Attempt Rd 2

"Without it, you are unrepresented."

"I understand why you want a buyer representation agreement," your buyer tells you. "But what's in it for me?" You answer: "Without it, you are unrepresented." "It is required by law." "Without it, I owe you no duties." "Without it, I won't work very hard for you."

$608,292.40

A borrower has a 30-year, $500,000 loan with an interest rate of 6.25%. His monthly principal and interest payment is $3,078.59. What's the total amount of interest he'll pay over the course of the loan? $608,292.40 $1,108,292.40 $500,000 $750,000

The ad is in compliance with TILA because it doesn't contain any of the trigger terms that require full disclosure of all financing terms.

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 is not in compliance with TILA because it mentions financing without including all of the terms of the financing. The ad is in compliance with TILA because the sales price is below the minimum that triggers full disclosure. The ad is not in compliance with TILA because financing terms must be provided on any residential real estate ad. The ad is in compliance with TILA because it doesn't contain any of the trigger terms that require full disclosure of all financing terms.

The ad is in compliance with TILA because providing the APR doesn't trigger the required disclosure of all credit terms.

A "Homes for Sale" magazine contains the following ad: "One-bedroom condo. Corner unit with beautiful ocean views. Financing available, 5.25% APR." Which of these statements is true? The ad is not in compliance with TILA because it mentions financing without including all of the terms of the financing. The ad is in compliance with TILA because providing the APR doesn't trigger the required disclosure of all credit terms. The ad is not in compliance because TILA requires all financing terms to be stated if APR is stated. The ad is in compliance with TILA because condominiums aren't covered under Regulation Z.

$86.72

A 4-bedroom, 4-bath 4,875 square feet house was listed at $445,000. Andreas, the seller, accepted an offer that was 95% of the listing price. What price per square foot did he get for the house? $45.64 $82.15 $86.72 $93.00

Timeshare estate

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 time-sharing agreement, usually in one- to two-week intervals during the year. Campground membership Vacation ownership Timeshare use Timeshare estate

Community Reinvestment Act

A bank that addresses a community development need in its assessment area and donates to recovery efforts of a flooded lower-income area might be an example of the bank supporting what act? Home Mortgage Disclosure Act Consumer Credit Protection Act Community Reinvestment Act Equal Credit Opportunity Act

$1,108,292.40

A borrower has a 30-year, $500,000 loan with an interest rate of 6.25%. His monthly principal and interest payment is $3,078.59. What's the total amount he'll pay back over the life of the loan? $750,000 $1,108,292.40 $608,292.40 $500,000

$3,593.75 $750,000 x .0575 = $43,125; then $43,125 ÷ 12 = $3,593.75

A buyer has a 30-year, $750,000 loan with a 5.75% interest rate. How much of the monthly payment is interest? $3,593.75 $10,869.57 $3,500.93 $3,750.27

75%

A buyer is purchasing a home for $400,000 and is financing $300,000. What is the loan-to-value ratio? 72% 75% 96% 82%

$320,000

A buyer is purchasing a property for $400,000. His lender's loan-to-value ratio is 80%. How much is the buyer financing? $80,000 $360,000 $320,000 $400,000

$3,200

A buyer is purchasing a property for $400,000. His loan-to-value ratio is 80%. The lender also charges a one point loan origination fee. How much is the loan origination fee? $800 $3,600 $3,200 $4,000

$450,000

A buyer is purchasing a property for $500,000. His lender's loan-to-value ratio is 90%. How much is the buyer financing? $50,000 $450,000 $400,000 $500,000

$575

A buyer is securing a home loan for $500,000. The state mortgage recording tax rate is $0.115 per $100. What's the mortgage recording tax? $570 $115 $500 $575

Additional provision

A buyer requests that the warranty for the home's HVAC system be included as part of the agreement of sale. This is called a(n) ______. Contingency Additional provision Standard provision Extraneous clause

$241,715.88 If $1,033.54 of the $1,317.66 is interest, that leaves $284.12 for principal. Subtract $284.12 from $242,000 for a new principal balance of $241,715.88.

A buyer with a $242,000 loan has a monthly principal and interest payment of $1,317.66. If $1,033.54 is interest, what's the new principal balance after the first payment is applied? $241,976.21 $241,672.12 $241,715.88 $240,682.34

$349,698.87

A buyer with a $350,000 loan has a monthly principal and interest payment of $2,102.36. If $1,801.23 is interest, what's the new principal balance after the first payment is applied? $340,987.46 $347,897.64 $348,198.77 $349,698.87

180

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. How many payments will the borrower make over the course of the loan? 360 240 180 15

$896.88

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?

Escalator

A buyer, hoping to beat out all other offers, included a clause in the offer that reads, "Buyer to beat all competing offers by $1,000 up to a price of $700,000. Seller to provide copies of competing offer to buyer on acceptance." What type of offer is this an example of? Dynamic Bad Escalator Elevator

Pass the timeshare on to an heir.

Brandon has a right-to-use timeshare. What can he NOT do with this type of timeshare? Try to exchange weeks with another timeshare holder. Pass the timeshare on to an heir. Allow a friend to use his week. Purchase an additional week if it becomes available.

Offerors

Brynn's listing agent told potential buyers that all offers on Brynn's property would be considered at five p.m. on May third. At five p.m. there were four offers. The persons making these offers are the ______. Examiners Offerees Executors Offerors

Cost approach

Burt owns a development company that specializes in constructing new, highly energy efficient houses. The best approach for an appraiser to use in the appraisal of Burt's newly built homes is the ______. Appraisal process Sales comparison approach Income approach Cost approach

Effective

A complete marketing campaign that includes the use of 'Choose Your Neighbor' letters in conjunction with an MLS listing, for sale signs, and advertisements in several newspapers is _____. Illegal Overkill Effective Unethical

Willing to pay Scott's commission anyway

Burt terminated his exclusive right-to-sell listing agreement with Scott, his listing broker, without cause. Burt may legally do this as long as he's ______. Willing to pay Scott's commission anyway A real estate licensee Willing to find his own buyer Unhappy with Scott's services

Refuse to rent to a female tenant.

A homeowner has converted two rooms in his home to a rental unit. What does the "Mrs. Murphy" exemption permit him to do? Move out of the property and rent both portions of it, relying on the "Mrs. Murphy" exemption to permit renting only to single females. Use the services of a real estate professional to advertise for a male tenant. Refuse to rent to a female tenant. Advertise for a tenant of a specific race.

Functional obsolescence

A form of depreciation or loss in value caused by defects in design is called ______. Economic obsolescence Functional obsolescence External depreciation Physical depreciation

The federal Fair Housing Act allows an exemption for communities that are designated for senior use.

A family of four, with children ages six and nine, is denied the opportunity to view an available unit at a community that caters to seniors. Which of the following statements is true? This is a violation of the federal Fair Housing Act because it discriminates on the basis of familial status. This is a violation of the federal Fair Housing Act because it discriminates on the basis of age. The federal Fair Housing Act allows an exemption for communities that are designated for senior use. The federal Fair Housing Act allows an exemption for communities that don't have playgrounds or play areas for children.

The amount it would cost to completely replace her home

A fire destroyed Meredith's house. in speaking with her insurance company, she was shocked to learn her insurance policy didn't fully cover what she paid for the property. How does the insurance company determine the replacement value of her home? The amount it would cost to completely replace her home The original sales price when it was first constructed The amount it appraised for Its current market value

Phase II

Byron is an environmental engineer working for Smith Environmental Services, Inc. He's currently working on a site assessment for an old hospital. Byron just sent soil and water samples to the lab that Smith uses for all of its testing. Which phase of the assessment process is Byron currently in? Phase IV Phase III Phase II Phase I

Timeshare property

A group of 26 different families have shared ownership of a vacation condominium. Each family spends two weeks annually at the condominium. Legally, the condominium is considered a ______. Foreclosure unit Timeshare property Rental property Co-op

$76,000 The formula to find equity is: appraised value - amount owed on mortgage.

A homeowner has $80,000 of principal left to pay on her mortgage. Her home has just been appraised at $156,000, which is $13,000 more than what she purchased it for. How much equity does she have in her home? $13,000 $76,000 $80,000 100%

He is discriminating against people based on sex and familial status by refusing to show available housing.

A landlord has an available unit, but refuses to show it to several applicants. These applicants are all single women with children; the applicants who are shown the apartment are all individuals or couples without children. In what way is the landlord violating fair housing law? He is sexually harassing potential tenants. He is discriminating against people based on sex and familial status by refusing to show available housing. He is discriminating by offering special terms for rental based on a protected class status. He is advertising the unit in a restrictive way that discriminates against those with children.

This is discrimination based on disability.

A landlord with a strict "no pets" policy won't rent to a woman who uses a service animal to assist with her epilepsy. Which of the following is a true statement about this situation? This isn't discriminatory if the "no pets" policy is universally applied. This isn't discriminatory because service animals are restricted to the vision-impaired. This is discrimination based on disability. This is discrimination based on familial status.

File a claim for inverse condemnation.

If downzoning occurs in one area, reducing property values in adjacent areas, what can the homeowners in those adjacent areas do? Require a zoning change to their own property. File a claim for inverse condemnation. Sell at a loss and file a claim. Sue their neighbors.

Communicate all offers and counter-offers to the sellers

A licensee has several tasks to perform for seller clients. One of these tasks is to ______. Advise sellers on the property conditions they shouldn't disclose to the buyer Communicate all offers and counter-offers to the sellers Ensure an implied agency agreement is in place Disclose to the sellers that if the property doesn't sell within 60 days, the asking price must be lowered

The licensee may face consequences for her actions, but she's doing the right thing.

A licensee is having a conflict with her broker for arguing against working with a long-time client who has been practicing subtle forms of housing discrimination. Which of the following statements is true about this situation? The licensee may face consequences for her actions, but she's doing the right thing. The brokerage isn't liable for any discriminatory actions in housing practiced by its client. The licensee is overreacting, since fair housing law covers only blatant forms of discrimination. The licensee could be subject to penalties from the licensing board.

The licensee may face consequences for her actions, whether she acts to stop the discrimination or does nothing to stop it.

A licensee realizes that her client, a landlord, is discriminating against Olaf, a tenant. Olaf is a member of a protected class under the Fair Housing Act. Which of the following statements is true? The licensee can't be charged with a violation of fair housing law if the discriminatory act is unintentional. The licensee may face consequences for her actions, whether she acts to stop the discrimination or does nothing to stop it. The licensee can't be charged with a violation based on the landlord's actions. If the licensee has consistently clarified her position as a proponent of fair housing, she's unlikely to be found guilty of a fair housing violation.

External depreciation

A loss in value caused by an undesirable or hazardous influence offsite is which type of depreciation? External depreciation Economic and material Functional obsolescence Physical depreciation

Two-and-a-half An acre is 43,560 square feet, so 108,900 square feet is equal to two-and-a-half acres.

A lot measuring 108,900 square feet is for sale. How many acres is this? Five Three Two-and-a-half One

32,670

A lot measuring three-fourths of an acre is for sale. How many square feet is this? 14,520 32,670 10,890 43,560

Up to three times the actual clean-up costs

If the responsible parties refuse to clean up hazardous contamination, the EPA can hire its own contractors and seek damages in court for ______. Up to 10 times the actual clean-up costs Up to 100% of the actual clean-up costs Up to five times the actual clean-up costs Up to three times the actual clean-up costs

The federal building code

If there's no state or local building code to cover a specific situation, what code must the builder abide by? The builder's own The federal building code The Development Code of 1986 The Builder Code of 1912

He created special terms for a tenant based on sex.

Chad, a landlord, made a pass at one of his tenants. She refused his advances, and her rent increased the following month. The other tenants didn't receive a rent increase. How did Chad violate fair housing law? He created special terms for a tenant based on sex. He refused to rent to an applicant based on sex. He refused to make reasonable accommodations for a tenant who is disabled. He created special terms for a tenant based on familial status.

Lender

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 is the mortgagee? Borrower Property Loan Lender

Carpenter ants

If you see sawdust that can't be explained, it's probably a sawdust-like material called frass created by ______. Fire ants Carpenter ants Powderpost beetles Termites

$763,560

A parcel of land measures one half mile by 3,000 feet. If price per acre is $4,200, what's the list price for this parcel? $752,066 $756,000 $763,560 $1,527,273

Take the addition down.

Charles just learned that the master bath addition on the home he purchased was built without obtaining permits. It's actually situated too close to the lot line. What might Charles have to do to his master bath? Get his neighbor's permission for the proximity to the lot line. Since it's a bathroom and not a bedroom, he won't have to mitigate. Take the addition down. Pay an exorbitant zoning fee.

$164,300

Cheryl and Roberto just signed a contract for Cheryl to buy Roberto's house for $235,000. Roberto owes $48,750 on his current mortgage, he's going to replace the old furnace ($800), he's agreed to pay 3% toward closing costs, and he'll pay a 6% commission to his agent. How much in whole dollars will he have left to put down on the condo he wants to buy? $168, 688 $167,696 $164,300 $164,771

$200,000 The formula is: income ÷ capitalization rate = value (I ÷ R = V). Remember to convert the 15% to a decimal by moving the decimal point over two places to the left: $30,000 ÷ .15 = $200,000.

A property generates $30,000 in net operating income and has a 15% cap rate. Using the income approach, what is its value? $100,00 $25,000 $200,000 $20,000

33,000

A property is 330 feet long by 100 feet wide. How many square feet is the property? 33,000 10,300 3,300 30,000

When Darren conveys the real estate to Tom.

Darren wants to set up a land trust so that his children could benefit from his real estate investments after he dies. He asked his financial advisor Tom to manage the trust, and Tom agreed. How is the trust created? When Tom distributes income from the real estate investments. When Darren conveys the real estate to Tom. When Darren dies. When Darren purchases the real estate.

Transfers without warranty any interest or title the grantor has when conveying it

A quitclaim deed does which of these? Transfers the property with full covenants Transfers without warranty any interest or title the grantor has when conveying it Transfers a property with only the covenant of warranty Transfers with warranty any interest or title the grantor has in the property when conveying it

Never

A real estate licensee and his client fulfill the listing agreement, and the agency relationship is terminated. At what point is the agent's fiduciary duty of confidentiality to this client terminated? Immediately After 30 days After one year Never

Restrictive covenant

A requirement that all property owners in a subdivision have a six-foot privacy fence surrounding their entire property is an example of a ______. Restrictive covenant Setback Doctrine of laches Deed

Measuring elevations

Datums and benchmarks are used for ______. Determining land acquisition costs Calculating area Measuring elevations Measuring distance

$7,150

If you sell a home for $143,000, and your commission rate is 5%, what is your commission on the sale of this home? $7,150 $9,440 $8,580 $7,500

$315,789

A seller wants to break even after the broker's commission of 5% and loan balance of $300,000 are paid. At what price must the house sell? $450,000 $150,000 $300,000 $315,789

$276,596

A seller wants to net $10,000 after the broker's commission of 6% and a loan balance of $250,000 are paid. For how much does the property need to sell? $650,000 $265,957 $276,596 $250,000

Suing for specific performance

DeeAnna thinks she's purchased an investment property, but the seller refuses to deliver the title to her. DeeAnna has met all of her obligations per the written contract that she and the seller signed. She decides to take the seller to court in an effort to force him to hand over the title. This is an example of ______. Accepting partial performance Rescinding the contract unilaterally Suing for damages Suing for specific performance

Property taxes

Deirdre lost her job, and the bank foreclosed on her condo. Which of the following of her outstanding debts will the bank pay first? Medical bills Student loan Credit card balance Property taxes

Enjoyment

Derrick was thrilled to find out that the land he purchased includes several small caves. He's been spelunking for about three years and looks forward to exploring the caves on weekends. Which real property right allows him to do so? Possession Enjoyment Disposition Control

Cynthia deposited her client's earnest money check into the firm's operating account.

Determine which of these is an example of commingling. Jessica deposited her commission check into her brokerage firm's operating account. Sean withdrew funds from the firm's trust account to pay the rent. Cynthia deposited her client's earnest money check into the firm's operating account. Jenson deposited his client's earnest money check into the firm's trust account.

110 To find the GRM, divide the sales price by the gross monthly rent, remembering that there are two units, so a total monthly rent of $5,000. So, $550,000 ÷ $5,000 = 110.

A small duplex sold for $550,000. Each unit can gross $2,500 in monthly rent for the owner, and there are no additional income sources from the property. What's the GRM? 200 220 110 100

You're an independent contractor.

A sole proprietor is a familiar business model. If you practice real estate as a sole proprietor, which of the following is a true statement? You're an independent contractor. You are on a salary. You have a partner. You cannot be held liable for your actions.

The zoning board of appeals for either a variance or a special use permit

Developer A has a project planned that does not conform to the zoning regulations of the community. The developer would make what kind of change request from which local land use group? Planning board for a special use variance permit The town board for a variance City council for a special use permit The zoning board of appeals for either a variance or a special use permit

7.9%

A strip mall valued at $850,000 has a $67,500 annual net operating income. What is the capitalization rate for the strip mall? 12.59% 9.2% 8.67% 7.9%

Housing and Community Development Act of 1974

Prior to the ______, there was no legal protection for women who endured sexual harassment from landlords and sellers when they attempted to obtain housing. Civil Rights Act of 1866 Federal Fair Housing Act of 1968 Fair Housing Amendments Act of 1988 Housing and Community Development Act of 1974

To limit overgrowth

A town has just assigned a lower-density use zone to an area that previously allowed higher density. What's one reason the town may have done this? To improve property values To limit overgrowth To increase density in surrounding areas To increase taxes

Neighborhood website

Millie and Gary are searching for a home in a great school district. If the public school isn't highly rated, then options such as charter schools and private schools should be plentiful. Some states don't include school district information on the seller disclosure form, so how might they learn about school options? Neighborhood website County records office Deed HOA documentation

After the purchase offer is accepted by the seller

Millie is a buyer who has given her agent an earnest money check for $10,000 with an offer to purchase. When will the check be deposited? Immediately upon receipt by her agent After the purchase offer is accepted by the seller At least 10 days prior to closing on the sale After Millie receives loan approval for the purchase

His state's personal loan interest rate cap is less than 20%.

Jason's having trouble paying his monthly rent. His landlord agrees to float him the rent for the next few months with 20% interest. The deal with his landlord is in violation of the state's usury law. Which of these statements must be true? His state's personal loan interest rate cap is less than 20%. Landlords loaning tenants money is a violation of usury law. His state's personal loan interest rate cap is more than 20%. Consumers are not supposed to be charged interest on a personal loan.

Customer

Javier represents Marcus, who's selling his rental property to Ben. Ben is represented by another real estate licensee, Francis. What's Ben's relationship to Javier? Client and fiduciary Customer Customer and client Fiduciary

25 to 28; 33 to 36

All lenders have different underwriting standards, but traditionally, the housing debt-to-income ratio has been ______%, with a total debt-to-income ratio of ______ %. 33 to 36; 25 to 28 25 to 33; 28 to 36 28 to 36; 25 to 33 25 to 28; 33 to 36

Tie-in arrangement

An agent is trying to drum up business for a friend's mortgage company. She offers to charge a lower commission rate to clients who use her friend's mortgage company for their financing. What's this an example of? Tie-in arrangement Price fixing Market allocation Group boycotting

Illegal

An agent practices dual agency without informed consent. This is ______. Acceptable, as long as the parties sign a waiver Illegal Acceptable, as long as the broker is made aware Acceptable, as long as the parties don't raise a ruckus

File a suit to quiet title.

After purchasing a property, what can Jeremiah do to clear a possible future claim on the property's title? File suit against the lender. File suit against the seller. File a suit to quiet title. Have a second title search performed.

1.89 acres One acre is equal to 43,560 square feet, so their parcel is 87,120 square feet (43,560 x 2). Subtract the house's 5,000 square feet from that, and you get 82,120 square feet. Divide that by 43,560, and you end up with approximately 1.89 acres.

Alan and Kate want to build a 5,000-square-foot ranch-style home on two acres of land they just bought. Once the house is built, how many acres of undeveloped land will remain? 1.86 acres 1.89 acres 0.89 acres 0.88 acres

$293.70 The total transfer tax is $587.40 ($178,000 x .0033), so they each pay $293.70 ($587.40 ÷ 2).

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? $587.40 $293.70 $29.37 $58.74

Ask a civil rights organization to investigate using paired testing to uncover discriminatory acts.

Alfie suspects a landlord is discriminating against African-Americans who are interested in an available apartment unit. Which one of the following strategies could help him prove or disprove this theory? Make a new appointment and ask a friend to accompany him to serve as a witness to the landlord's behavior. Disguise his voice next time he calls the landlord and ask if he ever rents to African-Americans. Ask a civil rights organization to investigate using paired testing to uncover discriminatory acts. Go door to door in the neighborhood and ask people if they are aware of the landlord having committed discriminatory acts.

$9,005.85

Alistair bought a townhouse for $285,900. He got a 90% loan and the lender charged him 3-1/2 discount points. How much did Alistair pay in discount points? $1,000.65 $9,005.85 $10,006.50 $9,585.00

Trust funds

All funds entrusted to a licensee on behalf of another party in the practice of real estate are by definition ______. Trust funds Bond funds Mutual funds Hedge funds

Accretion

Alluvion describes new deposits of land that are the result of what natural process? Accretion Erosion Exclusion Reliction

If they see the report, they'll be required to disclose any adverse findings.

Amira's seller Tom just received the news that his buyers are walking away from the sale. They're forfeiting their earnest money, but they weren't willing to proceed after they saw the inspection report. Neither Amira nor Tom has requested a copy of the report. What's the most likely reason for that? If they see the report, they'll be required to disclose any adverse findings. Tom wants to pay for his own inspector so that he can question the inspector. They are unwilling to pay for the report as the buyer requires. Amira doesn't trust this particular inspection company.

$460 At a rate of $0.115 per $100, the tax amount is $460. Remember, this tax only applies to the financed amount, not the sales price.

Amy is purchasing a $500,000 property, financing $400,000. Assuming a mortgage recording tax rate of $0.115 per $100, what's the mortgage recording tax amount? $460 $750 $4,600 $7,500

Trade fixtures

Amy owns a salon and spa. She's leasing a prime piece of real estate in which she's installing salon chairs, counters, massage tables, spray tan vestibules, washers, and dryers. What are these items considered? Real property Trade fixtures Unnecessary Extravagant

Making application for a loan

When the lender gathers all kinds of information about the borrower's assets, debts, income, employment history, and pulls their credit report, the buyer is ___________________. Preparing for the closing Making application for a loan Approved Prequalified

A tax that's applied to the transfer of property from one person to another

What is a transfer tax? A tax that's applied to the transfer of property from one person to another A tax the buyer pays to the seller after the property transfers A tax the courts determine for the transfer of property A tax the seller pays to the Internal Revenue Service

The agency agreement is terminated upon destruction of the property.

An agent, Alice, has listed a three-bedroom home for her client. Before she finds a buyer, the home burns to the ground. What happens to the agency agreement that Alice has with her client? The agency agreement is terminated upon destruction of the property. The agreement must continue, but it can be modified due to the changed value of the property. The agency agreement must be extended until the home is rebuilt, or for six months, whichever is longer. The agency agreement continues as created unless Alice and her client can mutually agree to terminate it.

Easements are often established by a written agreement between the parties.

An easement is one type of encumbrance that can affect a property. Which of these statements about easements is true? An easement requires the property owner's express permission. An easement is a right acquired by one party to use the land of another party, usually for one day. Easements must be removed before property can be transferred. Easements are often established by a written agreement between the parties.

Rescinding the contract unilaterally

Jayne is tired of waiting for her subcontractor to get his part of the deal done. The agreed-upon deadlines have come and gone, and Jayne is losing money waiting for the subcontractor to come through. If the subcontractor isn't going to honor his commitments, neither is Jayne. She decides to consult with her attorney and then terminate the contract. This is an example of ______. Accepting partial performance Rescinding the contract unilaterally Suing for damages Mutually rescinding the contract

$255,000 Transfer tax is calculated based on the purchase/sales price ($255,000).

Katherine purchased a property for $255,000, borrowing $242,250. The assessed value of the property is $249,700. The property appraisal came in at $257,000. Which of these amounts is used in calculating the transfer tax? $257,000 $249,700 $242,500 $255,000

$4,000

Kelly is purchasing a property that has an assessed value of $160,000. If the tax rate is 2.5%, what will Kelly likely pay annually in property taxes? $160 $40,000 $4,000 $400

Rectangular government survey

Kelvin isn't sure how to read this legal description, but his agent said something about reading it from right to left. Here's the description: "The north half of the northwest quarter of Section 6, Township 8 north, Range 68 west of the 5th principal meridian. What land description method did surveyors use for this piece of property? Lot and block Monument and benchmark Metes and bounds Rectangular government survey

Tenancy in common

In which form of co-ownership is a person's ownership inheritable? Tenancy by the entirety Joint tenancy Tenancy in severalty Tenancy in common

Assignment

In which of the following situations does a new tenant take the place of a departing tenant, thereby becoming responsible for the lease, but the departing tenant may remain liable? Sublease Actual eviction Assignment Constructive eviction

The client and agent mutually agree to terminate the listing.

In which of these listing agreement terminations is there LEAST likely to be a penalty for terminating the agreement? The client revokes the listing agreement to sell the property to a family member. The agent abandons the listing. The client and agent mutually agree to terminate the listing. The seller withdraws the listing, deciding instead to stay in the property.

Presence of mold

Marilyn is reviewing the inspection report with her buyer clients. Which of the following issues in the report should Marilyn flag as most significant? Presence of mold Non-working sump pump Broken dishwasher Lack of deadbolts

Yes, with both the listing broker and the seller's agreement in writing

May listing agreements be terminated without penalty? Yes, with both the listing broker and the seller's agreement in writing Yes, at any time since they're not binding Only by the seller Only when they expire

A defect on a title that can be monetary or physical

What is an encumbrance? Anything that affects the marketability of a property A defect on a title that can be monetary or physical A defect found during inspection A bad neighborhood

The agency agreement terminates by completion.

When the listing agreement's purpose has been fulfilled, what happens to the agency agreement? The agency agreement terminates by completion. Agency continues for future transactions. The agent can renounce the listing agreement to terminate it. Agency continues until agreement's expiration date.

Margo tells her seller client Troy that his property is worth less than it really is so he will get a quick sale.

In which of these situations did the licensee breach the fiduciary duty of loyalty? Michael submits all offers he receives on Jarrod's property. Steven postponed his vacation so he could attend his seller client's closing. Tanaka refuses to encourage his seller client to lower his asking price. Margo tells her seller client Troy that his property is worth less than it really is so he will get a quick sale.

Jim didn't sign it.

Andrea and Jim were planning to list their home with Cheryl, but just let her know that they no longer wish to work with her. When she mentioned that the listing agreement is legally binding, they reminded her that their agreement isn't. What would be the reason the listing agreement wasn't legally binding? It wasn't notarized. They changed their minds about the asking price. Jim didn't sign it. They want to list it for 90 days, not 60.

Ordinary

Angelo's aging mother needs a place to live out her remaining years. Angelo conveys a home to her, but only for her lifetime. This is an example of what type of life estate? Homestead Dower and curtsey Ordinary Pur autre vie

Her title insurance

Anita is a new buyer. Luckily, ______ will help her before the sale and can reimburse her after the sale if a title issue arises. Her buyer's agent Her title insurance Seller credits Seller disclosures

Novation

Anna and Cindy, two friends, enter a contract to buy Jake's home. However, at the last minute, Cindy has a change of heart and wants out of the deal. Anna asks another friend, Sally, if she wants to take Cindy's place as co-buyer of Jake's home. Everyone agrees to the substitution of Sally for Cindy on the contract. This is an example of ______. Assignment Mutual mistake Fraud Novation

Listing a property in the main part of the city that she'll market as a fixer-upper

Annabelle's previous transactions have all been median-priced, detached single-family residential homes in the main part of the city or its suburbs. In which of these situations would Annabelle be practicing within her area of competence? Working with an investor who intends to purchase a rental property Working with a buyer client to purchase a condo Listing a property in the main part of the city that she'll market as a fixer-upper Listing a multi-million-dollar residence in the city's exclusive lakeshore estates

Scarcity

Annette really wants to move to San Francisco, but she's unsure whether she'll be able to afford to live there. Housing is very expensive because there simply is no room to build any new housing units. Which economic characteristic does this reflect? Scarcity Improvements Permanence Area preference

Their offer is rejected because the seller knows the neighbors don't like children.

Annie and George have been saving and are finally ready to purchase their first home for their family (including their two toddlers). They want to make an offer on a sweet little bungalow in a quiet neighborhood. If the sellers are represented by a real estate licensee, which situation would be a violation of fair housing laws? Their offer is rejected because it's too low. They rescinded their offer when their inspection revealed structural issues with the house. Their offer is rejected because the seller knows the neighbors don't like children. They rescinded their offer when a house they were previously outbid on became available again.

No, because the listing agreement is contractually binding.

Jared, a seller, has found his own buyer and wants to terminate his exclusive right-to-sell listing agreement with Sue, his listing broker. May he do so without penalty? No, because the listing agreement is contractually binding. No, because listing agreements may not be terminated until they expire. No, because sellers may not sell their own listings. No, because this would be a conflict of interest.

April and Wayne

April and Wayne are the buyer and seller of a condo. Steve represents April, and Wanda represents Wayne. Who are the principal(s) in this sales transaction? Steve and Wanda April, Wayne, Steve, and Wanda Wanda April and Wayne

The property is right in the middle of a historic preservation district.

As Brandon's listing agent, Lily must disclose all known material facts relative to Brandon's property. Which of the following is a zoning-related fact that Lily might have to disclose to prospective buyers? Brandon's subdivision was farmland back in the 1950s. The property is right in the middle of a historic preservation district. Two of the residents on Brandon's street have in-home occupations. The zoning board may require the developer to include parklands in the neighborhood expansion.

Refer clients and customers to a competent professional in that field.

As a licensee, when questions arise that are outside of your scope of expertise, what should you do? Give some advice, even if you aren't sure. Refer clients and customers to a competent professional in that field. Pretend to be an expert in that field. Tell them not to ask so many questions.

The grantor

As part of an acknowledgement who must state the deed signing is voluntary before a public official? The grantor The grantee The Notary The County Clerk

10 years

As part of its penalty for violating antitrust law, Homes4Cheap, Inc. has been ordered to undergo court-ordered supervision. How long can this supervision last? 10 years One year One month One week

Voidable

As part of the sales contract, Garth, the seller, was supposed to provide a copy of the seller's disclosure to the buyer, Melanie, but he failed to do so. What type of contract is this? Implied Voidable Incomplete Valid

The upstairs bathroom has a leaky toilet.

Assuming licensee Shannon has actual knowledge of all of the following property issues, which should she disclose to prospective buyers? The upstairs bathroom has a leaky toilet. The tree in the front yard is at least 50 years old. The nearby school system is one of the worst in the area. The neighbors like to throw a lot of parties.

As soon as possible

At what point must a listing agent disclose material facts to all parties involved in the transaction? As soon as possible If asked directly by a party to the transaction Only with the seller's permission Never

Whether he will incur a prepayment penalty

Jason purchased his dream home six months ago. After Jason received an inheritance from his uncle, he decided he would pay off his mortgage. What might he consider before doing this? Whether his lender allows early payoff Whether his uncle would like this A second mortgage Whether he will incur a prepayment penalty

Foundation

Basement wall cracks and leaks can be indicators of ______ problems. Foundation Roof Chimney/fireplace Window

Illegal

Because of the topography of Elise's and Lawrence's respective yards, Elsie had to install her fence at the top of a hill, which is actually two feet over Lawrence's property line. What is Elsie's fence? Visible easement Illegal Servient estate Easement in gross

Avoid unauthorized practice of law

Belinda is a licensee whose client asked her to draft an addendum containing complicated terms that even Belinda doesn't fully understand. Belinda should ______. Avoid unauthorized practice of law Use legalese Refuse to work with this client Hire an attorney

Yes, because exclusive right to sell means Bernie gets paid no matter who finds the buyer

Bernie is representing Oscar in the sale of Oscar's home. They have signed an exclusive right-to-sell listing agreement. If Oscar finds his own buyer, does he owe Bernie a commission? Yes, because exclusive right to sell means Bernie gets paid no matter who finds the buyer No, because Oscar retained his exclusive right to sell Yes, because Oscar is not a real estate licensee No, because he found his own buyer

Suing for damages and breach of contract

Betty hires a contractor to replace her gutters. Within days, the gutters leak and flood her basement. She complains to the contractor, who replaces the gutters again. The next time it rains, the gutters leak and flood Betty's basement a second time. Frustrated, Betty decides to file a lawsuit against the contractor in an attempt to recover the money she's lost. This is an example of ______. Suing for specific performance Suing for damages and breach of contract Rescinding the contract unilaterally Accepting partial performance

Nothing

Bo's real estate ad states: "Custom homes for sale with scenic mountain views. Easy financing and low down payments." What else must be included in the ad in order for it to comply with TILA? A full disclosure, including the APR and other loan terms The specific down payment amount and APR Nothing The number of payments and APR

$3,610

Bob and Mary are financing $180,500 for a new home. Their lender will approve an interest rate of 5% if Bob and Mary pay two discount points at closing. How much will this cost them? $32,000 $3,610 $9,025 $180.50

Rescission

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 returns Bob's earnest money. This is referred to as ______. Assignment Rescission Novation Breach of contract

Bobbi Jo disclosed the down payment assistance to the lender.

Bobbi Jo wants to purchase a house for $350,000. She's pre-approved for $300,000, but wants to buy a $350,000 house and doesn't have $50,000 in cash. A down payment assistance program approves her for a second mortgage for $40,000, and the sale closes two weeks later. What made this a legal second mortgage, and not fraud? Bobbi Jo signed an affidavit stating that she had independently secured the full $50,000. Bobbi Jo referred to it as a gift, not a silent second mortgage. Bobbi Jo disclosed the down payment assistance to the lender. The lender provided the down payment assistance.

1,425

Bonnie is calculating the square footage of a listing. The upper level of the home is 450 square feet. The main floor is 1,200 square feet, including an unfinished laundry area that's 225 square feet. The 1,200-square-foot basement is finished. Bonnie's MLS system disregards below-grade square footage. What square footage will Bonnie mention in her MLS listing and marketing materials? 1,200 1,425 2,850 2,400

Cambridge must allow an exception to the first-come, first-served policy for Alton.

Cambridge Apartments provides an open parking lot for their residents. There is adequate parking and all spaces are available on a "first-come, first-served" basis. Alton has MS and uses a motorized wheelchair. Must Cambridge reserve a parking place specifically for Alton if he requests? Cambridge must provide a space for Alton that is no farther than 50' from an accessible building entrance. As long as the current parking policy was already in place before Alton made application, Cambridge need not make an exception. Cambridge must allow an exception to the first-come, first-served policy for Alton. Provided they have at least two parking spaces per living unit, they needn't reserve one for Alton.

Amendment

Camille, a buyer, wants to change the price already agreed to in a sales contract. She should use a(n) ______. New contract Amendment Addendum Bill of sale

Yes, if it's for the public good.

Can police power ever be used in a way that restricts citizens' freedom? Yes, that's the purpose of police power. Yes, if it's for the public good. Yes, but only when the citizen has committed a crime. No, that's beyond the scope of police power.

Reversion

Capital gains fall into which stage of the property ownership life cycle? Capital gains are not part of the property ownership life cycle. Ownership Reversion Acquisition

July 2

Carlton listed his property with an agreement end date of August 31. The property went under contract on May 12 and closed on July 2. When did Carlton's listing agreement officially terminate? May 12 July 2 August 31 Upon revocation by the agent

Estate for years

Cedric is opening a model railroad shop, but he knows that he'll only run the store until his partner finishes law school. He signed a three-year lease, after which the lease will terminate. What kind of leasehold is this? Estate at sufferance Estate at will Estate for years Periodic estate

The covenant of further assurances

Which covenant requires the grantor to execute any necessary legal documents (within his power) necessary to fix title defects discovered after closing? The covenant of warranty The covenant of further assurances The covenant of seisin The covenant of the right to convey

Preliminary report

Which document is used to give a buyer an overview of the title history and information about what is or isn't covered in an insurance policy? Guarantee of title Title insurance Preliminary report Abstract of title

Disclose to his friend that he's not an agricultural expert and ask his friend's permission to work with an agricultural expert in his firm.

Chip is a residential and commercial agent. His friend asks him to list his cattle ranch for sale, but Chip's never listed an agricultural property before. How should Chip handle this listing so he can still work for his friend but also not work outside his area of expertise? Turn down the listing, citing his lack of experience in agricultural work. Disclose to his friend that he's not an agricultural expert and ask his friend's permission to work with an agricultural expert in his firm. Refer the listing to an agricultural agent and ask his friend to keep him informed of the transaction's progress. Take the listing and apply commercial real estate practices, since agricultural sales are similar to commercial sales.

Christine listed the property with you.

Christine listed her house with you. Tailleur represents the buyer, Rebecca, and the seller's mother, Freida, is paying your commission. Which of these factors determines how legal agency is determined in this situation? Christine's mother, Freida, owns the house you listed. Freida is paying your commission. Tailleur represents the buyer. Christine listed the property with you.

Implied agency

Christy found a property that was for sale by owner and made an offer. The seller accepted Christy's offer, but neither of them knew how to proceed. Zelda helped Christy complete the necessary purchase documents and walked her through the process. What kind of agency has been created? Verbal agency Express agency Implied agency Confirmed agency

Points deduction

Clay and Myra just bought a home. Based on where they are in the property ownership life cycle, which tax-related item is likely to be of the most concern to them? Capital gains Mortgage interest deduction Depreciation Points deduction

Unit owners

Clay is interested in purchasing a condo about a mile from the city center. He went to the city records office to review everything that was filed by the condo developer. In the condominium declaration, he sees how ownership of the common areas is shared among the ________. Unit owners Developers Association officers Investors

Competition

Which economic principle is related to supply and demand? Substitution Conformity Contribution Competition

Contribution

Which economic principle pertains to how a change in a property affects its value as a whole? Substitution Conformity Contribution Anticipation

Connor, as grantor

Connor and Duke were seller and buyer of Connor's property, respectively. Who conveys the title? The title clerk for the county in which the property is located Duke, as grantor Connor, as grantee Connor, as grantor

Topography

Considering where pipelines and utilities can be located and their impact on the overall look in the subdivision are factors of ______. Development cost TDR Topography District zoning

National origin, sex, disability, and familial status

Corinne is 68 years old and employed full time. She's of Spanish descent, is raising her 12-year-old grandson, and lives with her partner, Katherine. She requires an accessible apartment because she uses a wheelchair. Under which of the following federally protected classes might Corinne be protected if she faces housing discrimination? National origin, sex, disability, and familial status Age, race, familial status, sexual identity, and disability Religion, familial status, and disability Age, employment status, national origin, familial status, and sexual identity

45

Curtis wants to do a 1031 exchange. He just closed on his property. How many days does he have to identify a new property? 180 45 60 30

Use variance

Damien and Sandy bought a lot with a condemned house. They want to tear it down and build a duplex, so that they can live on one side and rent out the other. Unfortunately, the property is zoned single-family residential. If they can make a case for economic hardship, they may apply for and be granted a ________. Special use permit Moratorium Area variance Use variance

This is an accrued expense and will appear as a seller debit and a buyer credit.

Danette hasn't paid the first quarter water bill on her property that was due on April 1. She's closing with her buyer, Jason, on April 1. What type of expense is this and how will it appear on the settlement statement? This is an accrued expense and will appear as a seller debit and a buyer credit. This is an accrued expense and will appear as a buyer debit and a seller credit. This is a prepaid expense and will appear as a seller debit and a buyer credit. This is a prepaid expense and will appear as a buyer debit and a seller credit.

It's likely viewed as a less favorable offer.

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 more favorable offer. It's likely viewed as a lowball offer. It's likely viewed as a less favorable offer. It will likely set off a bidding war.

The lack of air circulation in a moist room leads to mold growth.

During a home inspection, Stan the inspector pointed out to the buyers that neither of the two bathrooms had vent fans installed. Why is this a potential problem that will be noted on the inspection report? The lack of air circulation in a moist room leads to mold growth. Bathroom fans vent radon to the exterior of the home. Unseemly smells located that close to the kitchen are a problem. Bathroom fans can mitigate lead paint particles.

Sellers would view an offer without a contingency as a stronger offer.

Egypt is moving up from a starter home to something a little larger. Her agent has cautioned her against making her offer on the new place contingent on the sale of her starter home. Why the caution? Egypt's lender might be wary of contingencies. Sellers would view an offer without a contingency as a stronger offer. Egypt might want to keep and rent out her smaller home as an income source. Egypt should include a minimum of two contingencies to let the sellers know she is serious.

A trustee will hold (bare) title until the loan is paid.

Elaina and Allen just purchased a home using a deed of trust. Which of the following is most likely true about their home loan? The lender will hold the mortgage, while a trustee will hold the deed of trust until their loan is paid off. A trustee will hold (bare) title until the loan is paid. The lender will hold the title until the loan is paid off. Their transaction is secured with a mortgage as well.

She must obtain the disclosures, provide them to Luis, and review them with him.

Eleanor is working as a buyer's agent for Luis in a state without full disclosure requirements. What is her responsibility relative to property disclosures? She must obtain the disclosures, provide them to Luis, and review them with him. She must remind the seller to complete the disclosures and send them to Luis. She must verify all of the noted conditions with third parties. She must line up a home inspector to review the disclosure forms.

Timeshare use

Ellen and Isaac have a timeshare near the Grand Canyon. They'll be able to use it for two weeks every September, for the next eight years. What type of timeshare is this? Timeshare use Periodic estate Timeshare estate Fee simple timeshare

Abandonment

Eric didn't have direct access to the small lake in his subdivision, he had an easement with his neighbor. Ten months ago, the developer built a public access road to the lake, so Eric stopped using the easement. What type of easement termination is this? Abandonment Merger Express Necessity

Amortized

Esmerelda makes regular monthly payments on her loan. In addition to paying interest, she's slowly paying down the principal of the loan. With each payment she makes, more will go towards the principal and less to interest. What type of loan does she have? Amortized Straight Balloon Reverse

Material facts

Even though the laws are different in every state, sellers must typically disclose ______, information that would be important to a person in deciding to purchase a home. Buyer evidence Material facts Case law Physical matter

Leave clients unattended in the office.

Everything in your office is potentially at risk from thieves and other criminals. Because of this, what should you never do? Invite clients to the office. Leave clients unattended in the office. Use a computer. Lock your computer.

All of the habitable structures on a lot

FAR, or floor-to-area ratio, includes ______. None of the habitable structures on a lot All of the habitable structures on a lot All structures, including habitable structures and parking structures, but not parking lots The area within parking lots or parking structures

Farm Service Agency

Farm families financing the purchase of properties in rural areas may be able to obtain financing through this government agency if they meet certain criteria, such as income requirements. Department of Veterans Affairs Federal Housing Authority Farm Service Agency Environmental Protection Agency

Disclosure

Which fiduciary duty is missing in the following string: loyalty, care, obedience, confidentiality, accounting, and ______. Disclosure Disobedience Skill Lawfulness

The previous owners redeemed the property by paying all mortgage payments and fees.

Farquhar bought a house at a foreclosure auction. A few weeks later, he was notified that he couldn't take possession of or title to the property. What likely happened? The other lien holders protested the auction sale, so the lender retained the property. The lender revised the previous owners' loan and permitted them to remain in the property. The previous owners redeemed the property by paying all mortgage payments and fees. The lender received another offer higher than the one Farquhar made at the auction.

The HOA has the power to enforce the regulation through fines or by taking Florence to court.

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? Anyone may take Florence to court to enforce the regulation. Any member of the HOA may take Florence to criminal court to enforce the regulation. Only the HOA board of directors may take Florence to court to enforce the regulation. The HOA has the power to enforce the regulation through fines or by taking Florence to court.

Obedience

Following all of the client's lawful instructions describes which fiduciary duty? Loyalty Obedience Disclosure Reasonable skill and care

No. The fact that the firms' commission rates and splits are similar doesn't necessarily mean they agreed to fix those values.

Four brokerage firms operate in the same small city as Jackson's firm. All the firms charge approximately the same listing commission and pay approximately the same cooperating commission to the selling broker. The commission splits within each firm are also similar. Is this an antitrust violation? Why or why not? Yes. The fact that the firm's commission rates and splits are so similar is a restraint of trade. No. The similarities between commission rates may be suspect, but the similarity between commission splits doesn't matter. Yes. The firms' internal commission splits can be the same, but they can't all charge the same commission rate. No. The fact that the firms' commission rates and splits are similar doesn't necessarily mean they agreed to fix those values.

Francis is guilty of commingling.

Francis collected an earnest money check from her client but didn't have an opportunity to deliver it to the escrow agent before close of business on Friday. For safekeeping, she deposited it into her personal checking account over the weekend and wrote the escrow agent a new check on Monday morning. Which of these statements is true? Francis is guilty of conversion. Francis is guilty of fraud. Francis is guilty of commingling. Francis is guilty of commingling and conversion.

Servient estate

Frank owns a property on which there is walkway to the beach shared by his neighbors on either side. What is Frank's property? Dominant estate Prescriptive estate Gross estate Servient estate

No. Without informed consent, it's illegal.

Frieda is practicing dual agency and neither party seems to mind, even though she didn't obtain written informed consent. Is this legal? Yes, if the parties are agreeable. It's only legal if she doesn't get caught. No. Without informed consent, it's illegal. No. Dual agency is always illegal.

$946

Gabe's home has an assessed value of $172,000 and his tax rate is .55%. What are the annual taxes? $935 $946 $1,125 $1,265

FHA

Goldie and Kurt are looking at purchasing their first home. Their credit history is a little shaky and they don't have enough money saved to put down 20%. What type of loan seems most appropriate? FHA, VA, or conventional FHA Conventional VA

$562.50

Grant and Adela arrange a $150,000 loan at 4.5% annual interest with their lender. What's their monthly interest amount? $550.25 $575.75 $562.50 $570

Optionor

Grant is the potential seller of the property in an option contract. Grant is the ______. Optionee Optionor Optee Opter

Rigby

Greta is working with her agent, Brandon, to sell some property. Nelson represents the buyer, Rigby. Of these four parties, who will pay the earnest money? Nelson Brandon Rigby Greta

$390.91 Calculate the loan amount first: $424,900 x .80 = $339,920. Then calculate the tax: $339,920 x 0.00115 = $390.91.

Hamish makes an offer on a loft in the city for $424,900 with a 10% earnest money deposit. The seller agrees, so Hamish secures an 80% loan. He needs to set aside funds for the mortgage tax as part of his closing costs. The rate in his area is $0.115 per $100. Calculate the mortgage tax Hamish will pay. $390.91 $439.77 $97.73 $488.64

Unilateral

Hank leases 150 acres from Sara and Jesse. He has an option contract attached to his lease, with an option to purchase that can be exercised within the next two years. What type of contract is this? Bilateral Unilateral Executed Voidable

Lot and block

Harmony is looking at the legal description on her purchase contract. It mentions that the plat of her property is recorded in Map Book 12, Page 14, at the county courthouse. What type of legal description is this? Metes and bounds Rectangular government survey Lot and block Monument and benchmark

$2,300

Helen is purchasing a home for $150,000 and provides a $2,500 earnest money check to the seller. She's financing the transaction, and Her closing costs and down payment total $4,800. How much should Helen bring to the closing? $2,700 $7,300 $4,800 $2,300

Considered trade fixtures

Raymond and Jean own a shoe store in a rented space in a suburban strip mall. They've decided to move to less expensive retail space, and so are packing up their inventory for the move. Their son Brandon helps them remove the wall-based shelving units, making sure not to damage the walls in the process. The shelving units are ________. Standalone The landlord's property Considered trade fixtures Part of the leasehold

Review the inspection report with her and discuss options.

Homebuyer Nancy has made an offer to purchase a house and has plans to schedule a home inspection. How can her agent assist her in relation to the home inspection? Pay for the home inspection. Review the inspection report with her and discuss options. Negotiate a kickback from the home inspector. Require the buyer to use the agent's favorite home inspector.

Voluntary

Hope's mortgage created a lien against the property she purchased with the mortgage. What kind of lien is this? General Vendor's Special assessment Voluntary

Research the deed and title history, check maps at the county recorder's office, and review land surveys.

How can you determine lot size, easements, and encroachments of a property? Select the answer that would provide the most comprehensive search. Research the deed and title history, check maps at the county recorder's office, and review land surveys. Check the county recorder's office and local building board. Review subdivision maps, pace off the property, and check tax records. Search the property's deed and title history, ask the neighbors, and pace off the property.

It protects the lender from loss due to defective titles.

How does title insurance affect the lender? It protects the lender from the property value decreasing due to market fluctuations or property damage. It protects the lender from loss due to defective titles. It protects the lender against unexpected increases in loan costs. It protects the lender against any future default in the buyer's payment.

Subtract operating expenses from effective gross income.

How is net operating income calculated? Multiply annual return by .05 of the property's value. Multiply monthly income by 12. Subtract operating expenses from effective gross income. Add income to tax deductions.

Until the borrower reaches a 22% equity position

How long does the borrower have to pay private mortgage insurance? 12 years Until 50% of the original loan is paid off Until the borrower reaches a 22% equity position 20 years

Three: borrower, lender, and trustee

How many parties does a deed of trust involve? Two: borrower and lender Four: borrower, lender, trustee, and trustor Three: borrower, lender, and trustee Five: borrower, lender, trustee, trustor, and beneficiary

Multiply 350,000 by .0004. Convert .04 percent to a decimal (.0004), then multiply by the sales price of $350,000 ($350,000 x .0004 = $140).

How would you calculate a transfer tax of .04% on a $350,000 property? Divide .04 by 350,000. Divide 350,000 by .004 Multiply 350,000 by .0004. Multiply 350,000 by 4.

Fannie Mae and Freddie Mac guidelines

If Acme Bank, a primary lender, wants to sell its loans on the secondary market, it would be easier for it to do so if its loans meet ______. VA guidelines FHA guidelines Fannie Mae and Freddie Mac guidelines FDIC guidelines

$11,500

If Hal sold his client's listing for $230,000, but it appraised at $200,000 and the buyers agreed to put the extra $30,000 down, what will Hal's commission be if he charged 5%? $13,500 $16,000 $11,500 $10,000

The buyer's earnest money

If a buyer misses a contingency deadline, what's at risk? The agent's license The broker's reputation The sales price The buyer's earnest money

Void

If a contract is for an illegal purpose, it's ______. Valid Void Legal Enforceable

1,120

If a farm that's for sale measures one and three-quarter square miles, how many acres is it? 875 1,050 1,280 1,120

Quiet enjoyment

If a landlord takes away the tenant's right of ______, the tenant can claim constructive eviction and vacate the property with no further financial responsibility to the landlord. Ownership Control Quiet enjoyment Acceptance

Cloud on title

If a property has a legal claim against it, what is the property said to have? Messy title Blurry title Cloud on title Foggy title

You agree to design the houses for this builder in return for getting the listings when the properties are finished.

Imagine that you're an active real estate licensee as well as an architect, and you'd like to partner with a builder who's just beginning a development. Which of these creates agency coupled with interest? You agree to list the properties for a reduced commission once they're built. You agree to design the houses for this builder in return for getting the listings when the properties are finished. You tell the builder that he has to hire you to design the houses if the builder wants you to list them when they're finished. You have the builder and developer sign listing agreements now that will be effective when the properties are complete.

The seller is the licensee's customer.

In a buyer agency relationship, what relationship does the seller have to the licensee? The seller is the licensee's client. The seller is the licensee's customer. The seller is the licensee's nemesis. The seller is the licensee's fiduciary.

Consent

In a real estate transaction, which of the following is established when parties enter into an agreement voluntarily with full understanding of the contract terms? Consideration Consent Legal purpose Legal competency

The consumer's lender

In a residential real estate sale involving a federally related loan, who's required to provide Real Estate Settlement Procedures Act disclosures to the consumer? The consumer's real estate broker The consumer's mortgage broker The consumer's lender The settlement officer for the transaction

The seller

In a seller agency relationship, whom does the licensee represent? The seller The buyer The broker Both the seller and the buyer

Makes sure the terms of the trust are carried out

In a trust, the trustee is the person who ______. Is empowered to void the trust for any reason Creates the trust Receives the benefits of the trust Makes sure the terms of the trust are carried out

10 years

In addition to fines, individuals who violate antitrust laws may face imprisonment for up to what length of time? 10 years Two years One year 30 days

Decreases

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 ______. Increases Stays the same Increases and then decreases Decreases

The money goes toward the down payment on the property.

In an ideal real estate transaction, what happens to the buyer's earnest money? The money is paid to the escrow agent. The money goes toward the seller's proceeds from the sale. The money is paid to the broker. The money goes toward the down payment on the property.

Seller

In full seller disclosure states, whose responsibility is it to complete the seller disclosure form which will be reviewed by prospective buyers? Seller Licensee representing the seller Licensee representing the buyer Home inspector

Fiduciary

In general, a person in a position of loyalty and trust is a(n) ______. Attorney-in-fact Client Fiduciary Mortgage lender

Tax depreciation and cost recovery

In investments, there are two types of depreciation and each is defined by a particular event. Which of the following most accurately pairs the depreciation type with the event it is tied to? Economic depreciation and cost recovery Tax depreciation and cost recovery Tax depreciation and physical deterioration Operating depreciation and taxing authority

Seller

In states where full disclosure isn't required, whose responsibility is it to disclose any items required by law and respond honestly to any questions about the property's condition? Appraiser Buyer Seller Lender

Comparables

In the sales comparison approach, which of these are selected and evaluated both quantitatively and qualitatively against the subject property? Alternatives Substitutions Comparables Conformables

Disclosure

Informing parties of material facts related to a transaction describes the duty of ______. Reasonable skill and care Loyalty Accounting Disclosure

96% offer, 5% earnest money

Ingrid has listed her home at $439,900. She receives several offers close to her list price, and decides to accept the one that comes with the highest earnest money deposit, figuring that buyer is the most willing and able. Which of these offers should she accept? 95% offer, 3% earnest money 97% offer, $10,000 earnest money 98% offer, 1% earnest money 96% offer, 5% earnest money

When interest rates are high, buyers are often priced out of the market.

Interest rates determine buying power. Which of the following is a true statement? When interest rates shift higher, buyers can still buy in the same price range. When interest rates climb, more buyers are encouraged to buy. When interest rates are high, buyers are often priced out of the market. When interest rates are high, buyers will be able to afford higher-priced homes.

Permanence

Jacob is a developer who purchased 78 acres and had it subdivided into half-acre lots. He decided to install sewer and underground electric for the entire subdivision, because he thinks that he will easily recoup his initial infrastructure investment. This is an example of which economic characteristic of real property? Area preference Permanence Improvements Scarcity

Non-conforming use

Jacob's family has operated a neighborhood grocery store in the community since before the land was zoned residential. Jacob continues to operate the store legally. What would you call this? Special use Residential retail use Non-conforming use Mixed use

The smaller number

Jacqueline found a ready, willing, and able buyer for her client's condo, with a sales price of $20,000 more than the asking price. However, the appraisal came in just under the asking price. Which number will the lender use to calculate the loan-to-value ratio? A weighted average based on the sales price, appraisal amount, and recent sales The smaller number A middle point between the two numbers The larger number, as a buyer has already been found

Jane must deliver the deed to Micah.

Jane is selling her home to Micah. What must occur for Jane to effect a transfer of title to Micah? Jane must acknowledge the deed. Jane must deliver the deed to Micah. Micah must sign the deed. Jane must accept the deed.

Adjustable rate mortgage

Janice is extremely excited to have purchased her first home. She was able to lock in her monthly payment at a very low rate for the first five years. In year six, Janice's payments will become significantly larger based on the going market rates. What type of loan does Janice have? Purchase money mortgage A straight-term loan Wrap-around mortgage Adjustable rate mortgage

6.5% Jared's take of $12,239.50 is 70% of the commission, so his firm's commission is $12,239.50 ÷ .70 = $17,485. Multiply that amount by two to get the total commission the firm grossed: $34,970. Divide that amount by the total sales amount to find the brokerage's commission rate: $34,970 ÷ $538,000 = 0.065, or 6.5%.

Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with cooperating brokerages. Last month, he earned $12,239.50 in commissions from his home sales, which totaled $538,000. What is the brokerage's commission rate? 6.5% 2.3% 3.8% 7.6%

The exclusive right-to-sell agreement guarantees procuring cause, which means that the broker will be paid no matter who brings the buyer to the transaction.

Jeanine has an exclusive right-to-sell agreement with her listing agent, Tera. Which of these statements about Tera's compensation is true? A protection clause in any listing agreement guarantees that Tera will be compensated if she or another listing agent sells the property. A protection clause in the exclusive right-to-sell agreement guarantees that Tera will be compensated no matter who sells the property. The exclusive agency agreement guarantees procuring cause, which means that the broker will be paid no matter who brings the buyer to the transaction. The exclusive right-to-sell agreement guarantees procuring cause, which means that the broker will be paid no matter who brings the buyer to the transaction.

To clear up a cloud on title

Jeff has filed a quiet title suit against Roger. What's the purpose of this suit? To clear up a cloud on title To exercise his right to quiet enjoyment of the property To prohibit the seller from releasing the buyer's name To clear up a property line dispute

Freehold estate

Jenner purchased his first home, to which he'll have access forever, as far as he knows. Jenner owns a(n) ______. Leasehold estate Ownership estate Freehold estate Estate for years

To detail all costs Jennings will owe at closing

Jennings has received a Closing Disclosure from his lender. What's the purpose of this form? To disclose the distribution of commissions that will occur at closing To estimate the seller's net proceeds To detail all costs Jennings will owe at closing To estimate closing costs

The agreement terminates by force of law.

Jenson signed a seller's agency agreement with Susan. A few weeks after that, right before closing, a hurricane destroyed the property. What happens to Jenson and Susan's agreement? The agreement terminates by force of law. The client can revoke the agreement but may be considered in breach of contract. Jenson and Susan can mutually agree to terminate the agreement. It's terminated once the specified term in the agency agreement expires.

Familial status

Jericho and Cindy, an unmarried couple, have three children, ages 3, 5, and 12. A seller's broker refuses to show them a house in a neighborhood of mostly retired couples. Which protected class status applies? Partnership status Familial status Marital status Age status

Intentional misrepresentation

Jerrold reviews the floor plan of the house he's going to sell. It's 3,800 square feet. In his advertising, he bumps that number up to 4,000 square feet to better justify its asking price. What has Jerrold done? Active misstatement Puffery Exaggeration Intentional misrepresentation

Executory

Jerry and Lewis have entered into a sales contract. They're about three weeks into the transaction, with several terms of the agreement yet to be met. What type of contract do Jerry and Lewis have? Executed Option Executory Unilateral

Statute of limitations

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? Time of performance Time is of the essence Statute of limitations Specific time

Condemnation

Jerry's home has been in his family for nearly 75 years and sits smack dab in the middle of where a public university wants to expand. A government authority has made a fair offer for seizing Jerry's home as part of the process of taking someone's property called ______. Escheat Condemnation Foreclosure Non-conforming use

Jessie should disclose this to her buyer.

Jessie, the buyer's agent, decides to informally inspect the property while she waits for the professional inspection. She notices a small puddle of water in the basement behind a stack of boxes. Later, Jessie calls the seller's agent and tells him what she found. The agent tells her not to worry; the seller is aware of the leak and plans to have it fixed within the week. Which one of these statements about this situation is true? Jessie should disclose this to her buyer. Jessie can rely on the inspector to discover and disclose the leak. Jessie can check the basement later to be sure the leak is fixed. Since the seller intends to fix the leak, Jessie doesn't need to disclose it to her buyer.

The mortgage recording tax

Jim is in the process of buying a condominium. He's financing the purchase with a mortgage. At closing, he can expect to pay ______. The mortgage recording tax Compensation for interior painters The seller's moving expenses Condominium move-in tax

Jim must disclose that Rolly is his partner and that Rolly intends to subdivide the property to make a profit.

Jim represents Joel in the sale of Joel's country acreage and house. Jim's business partner, Rolly, is interested in purchasing the property to subdivide. Which statement best represents the disclosure requirements regarding this transaction? Because Jim isn't buying the property for himself, he has no disclosure requirements. Jim must disclose that he's partners with Rolly. Jim must disclose that Rolly is his partner and that Rolly intends to subdivide the property to make a profit. Rolly must disclose that he and Jim are business partners.

Construction

Jimmy owns a vacant piece of land. He plans to build a home on the land then sell it. What type of loan is he most likely to acquire to finance this project? Package Home equity Interest-only Construction

Improvements

Juan has decided to invest his small inheritance in real estate. He is drawn to the fact that he can add a building where there wasn't one prior and immediately increase the value of his investment. Which economic characteristic of real property is this? Area preference Permanence Improvements Scarcity

$387,000 The property tax will be calculated on the assessed value of the home ($387,000).

Juan purchased a property for $420,000, financing $336,000 of it. The assessed value of the property is $387,000. The property appraisal came in at $432,000. Which of these amounts is used in calculating the property tax? $420,000 $336,000 $387,000 $432,000

Yes. Express agreements may be verbal or written.

Kennedy tends to be rather informal about her real estate business. Her daughter's teacher, Matthew, tells Kennedy that he'd like her help selling his house. Kennedy tells Matthew she'll perform all the tasks she'd perform for any listing, though she has no written agency agreement with Matthew. Do Matthew and Kennedy have a legal agreement? Yes. Express agreements may be verbal or written. Yes. They have a verbal implied agreement. No. Verbal agreements are illegal. No. There's no signed agreement.

Accepting liquidated damages

Kenneth enters a contract to sell his home to Valerie, who puts down a $5,000 earnest money deposit. At the last minute, Valerie backs out of the deal. Kenneth keeps the earnest deposit. This is an example of ______. Suing for specific performance Suing for damages Accepting partial performance Accepting liquidated damages

The Loan Estimate permits Kenneth to comparison shop.

Kenneth plans to shop around for his mortgage loan to be sure he's getting the best interest rate and terms. What document from his lender permits him to make comparisons? The buyer's net sheet provides all the figures necessary for comparing loan products. The Loan Estimate permits Kenneth to comparison shop. Kenneth's settlement statement details all closing costs, so he can use it to compare lender loan products. The Closing Disclosure discloses all loan costs, so he can compare costs between lenders.

Novation

Kirk and his cousin Dewey decide to buy a vacation home. They enter into a contract with the seller, Crystal. Before finalizing the sale, Dewey wants out of the sale. However, he doesn't want to let his cousin down, so he convinces his son to replace him in the purchase contract. Kirk and Crystal agree to the substitution, and Dewey is released from all his obligations under the contract. This is an example of ______. Misrepresentation Fraud Novation Assignment

Real estate owned If a foreclosed property goes to auction and doesn't sell, title goes back to the lender, and the property is considered real estate owned by that lender.

Kristin has been unable to make her mortgage payments. Her property went to auction, but the lender didn't accept the high bid. What stage of the foreclosure process is this property now in? Real estate owned Foreclosure Pre-foreclosure Eviction

Easement appurtenant

Kurt bought a vacant lot in a development that was 85% completed. When he started working with the builder to lay out where the house and driveway would lie, it was determined that he would need an easement because his driveway would spill over onto the adjacent lot by a few feet. What type of easement is this? Easement by prescription Easement appurtenant Easement by necessity Easement in gross

Disposition

LaTonya's aunt left her a bungalow on the outskirts of the city. For many years, it was the place for family holiday gatherings, and LaTonya's sister was even married there. That's why her family is so upset to learn that she plans to sell the bungalow as soon as she gets it cleaned out. Which real property right allows her to sell the property? Control Exclusion Disposition Possession

Strict liability

Latrell purchased an old warehouse with the intent to create shared studio space for artists. However, he didn't perform due diligence before the purchase, and it turns out that there are hazardous materials that need to be cleaned up first. Latrell took the prior owners to court, and the court ruled that Latrell is responsible for the costs of cleanup. What kind of liability is this? Joint liability Retroactive liability Several liability Strict liability

FHA

Lauren obtained a loan that's insured and that only required a down payment of 3.5%. Which of these is most likely the type of loan Lauren has? FHA Home equity line of credit Conventional Rural development

To detail the estimated closing costs for Lawrence's loan

Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's the purpose of this document? To disclose the lender's source of loan funds To detail the estimated closing costs for Lawrence's loan To detail the amount Lawrence needs to bring to closing To disclose the interest rates available on this lender's various loan programs

Mindy

Lena's buyer Mindy is making an offer on Leo's house. Which party decides how much earnest money to offer? Leo's agent Mindy Leo Lena

They don't require a general partner.

Limited liability companies and limited liability partnerships are favorable forms of business because ______. They're considered temporary and can be quickly dissolved. Owners of the LLC or LLP are personally liable for LLC/LLP obligations. They don't require a general partner. They aren't taxed as partnerships.

The retail addition she put onto the building she already owned

Maya owns a small graphics shop and is meeting with her tax professional to review the year's receipts and other tax documentation. Her tax advisor lets her know that she has an appreciating asset, which makes Maya very happy! Which of the following is Maya's appreciating asset? The van she'll use for trade show set-ups Her new 3-D printer The retail addition she put onto the building she already owned The digital printing press that she bought six months ago

Federal government construction projects

Local authorities lack police power over which of the following? Federal government construction projects Zoning Subdivision development Budgeting

$105.79 Monthly taxes are calculated by multiplying the assessed value by the tax rate and dividing by 12. ($201,500 x .63%) = $1,269.45 ÷ 12 = $105.79

Lorena and Julio purchased a home for $205,950. Their loan amount was $164,760, and the assessed value is now $201,500. Their tax rate is 0.63%. How much will their monthly taxes be? $191.37 $111.04 $105.79 $86.49

Subleasing

Lorenzo just received a prestigious fellowship to study abroad for a year! However, he still has six months left on his one-year apartment lease. His landlord has given him permission to draw up a new agreement with his sister Maggie, whereby Maggie will live in the apartment, pay rent to Lorenzo, and then Lorenzo will pay the landlord. This is an example of ______. Subleasing Assimilation Assignment Transfer

Immediately upon issuance

Lot and Block Realty received a cease-and-desist order from the FTC due to misleading ads the firm was running. When does the order become effective? Immediately upon issuance 90 days after issuance and for 120 days total 30 days after issuance Retroactive from the first date of the prohibited activity

FHA

Lydia put the minimum 3.5% down on her $210,000 home. She'll have to pay a mortgage insurance premium (MIP). What type of loan does Lydia have? Conventional Standard FHA VA

She can't do this at her firm.

Madeline works for a single-agency firm. If she wants to represent both the buyer and seller in a transaction, what must she do? She can't do this at her firm. She should have her broker act as a dual agent, and she can be a single agent for each party. She may act as a designated agent for one client and a representative agent for the other. She should get informed consent from both sides to represent them.

Depreciable basis

Malcolm purchased an old convenience store, and after renovations will open a small vegan grocery. He paid $517,000, of which $417,000 was for the building, and renovations cost him $107,000. What does the amount $524,000 represent? Depreciable basis Cash position Income baseline Investment basis

Reduced consumer confidence makes new buyers wary of purchasing, and homeowners hesitant to trade up.

Many market conditions impact housing prices. Which of the following is a true statement? High unemployment rates mean there are more available buyers in the market. Reduced consumer confidence makes new buyers wary of purchasing, and homeowners hesitant to trade up. Inflation increases buying power. Low unemployment rates mean there are fewer available buyers in the market.

Confidentiality

Many of an agent's fiduciary duties to the client end with the termination of an agency agreement. Which fiduciary duty never ends? Reasonable skill and care Obedience Confidentiality Loyalty

Plottage

Marcus bought two adjoining pieces of land that were zoned for commercial use. When he realized that combining the two parcels into one would dramatically increase the land's value, he jumped at the opportunity. What's this an example of? Plottage Contribution Eminent domain Zoning

Alda tells Marge that she's hired an inspector to perform a property inspection.

Marge is a licensee in a dual agency transaction with Steven, the seller, and Alda, the buyer. Which of these is NOT an example of a conflict of offering loyalty to both parties in a dual-agency transaction? Alda tells Marge she wants to make an offer on Steven's property and asks Marge what she should offer. Steven tells Marge he can reduce his price, and Alda tells Marge she can increase her offer. During the home inspection, Marge hears the buyer tell the inspector several times, "That's no big deal. I can fix that." The buyer lists those as repairs she wants the seller to make. Alda tells Marge that she's hired an inspector to perform a property inspection.

Optionee

Margo is the potential buyer of the property in an option contract. Margo is the ______. Opter Optee Optionor Optionee

Margo is in the ownership stage of the property ownership lifecycle. Correct Answer:

Margo's accountant tells her that she's eligible to deduct the property taxes she paid last year. Select the statement about this deduction that's true. Margo has to be an investor to be eligible to deduct property taxes. Margo is in the ownership stage of the property ownership lifecycle. Margo can only deduct the property taxes charged back to her at closing. Margo is in the reversion stage of the property ownership lifecycle.

Substitution Margot knows paying $50,000 more for a nearly identical substitute property isn't the smart choice.

Margot has fallen in love with a three-bedroom, 2,500-square-foot property in her friend's neighborhood. It's listed for $400,000; however, just down the street another three-bedroom, 2,400-square-foot home very similar to the one Margot loves was just listed for $350,000. Margot and her agent immediately make an offer on the second property. Which economic principle is at work here? Conformity Substitution Progression Anticipation

Balloon loan A balloon loan allows borrowers to make lower payments, then make a "balloon," or lump sum, payment at the maturity date (the end of the loan term). A lender can amortize the loan over a 30-year period with a balloon payment at the end of 10 years.

Margot is looking for a 10-year loan with regular affordable monthly payments. In eight years, she'll inherit a good chunk of money from her grandmother and be able to pay off the remaining loan amount. What kind of loan might be best for Margot? Bridge loan Graduated payment loan Balloon loan Budget loan

The city or other governing authority establishes the air lot's height.

Marketo Building Designs is selling the air rights above its office building. The lot is 450 feet by 350 feet. How would you determine the air lot height in order to calculate the area? The height of the air lot is equal to the height of the structure under it. The city or other governing authority establishes the air lot's height. The height of all air lots is 500 feet above the existing structure. The area of an air lot can't be calculated because the height is unlimited.

Right of first refusal

Marsha leases a ranch house in a bedroom community. When the owner decided to sell the house, Marsha was given the opportunity to purchase it but declined. What does Marsha have? Right of first refusal Lease with obligation to buy Option contract Lease with option to buy

The neighbor installed a basketball hoop next to his driveway, six inches over the property line.

Marshall is a home inspector who is walking the lot of the property he's inspecting with a survey in hand. Which of the following will he note as an encroachment on the inspection report? The apple tree on the property behind drops apples onto the subject property. A path providing neighborhood access to a pond cuts through part of the subject property. The neighboring property was seized by the city to be used in a street widening project. The neighbor installed a basketball hoop next to his driveway, six inches over the property line.

Homeowner regulations

Marta and Kim are so excited—Marta received a prestigious fellowship, and she'll be studying in Spain for a year! Kim is taking a leave of absence from her job to come with her. They don't want their home in a gated community to sit empty, so they'd like to rent it out for the year. What might prohibit them from doing so? Homeowner regulations County ordinance State law Neighborhood watch group

Accepting partial performance

Martha makes an offer to buy Drake's home, and he accepts it. Under the terms of the agreement, Martha is supposed to put down an earnest money deposit of $10,000. However, she only puts down $5,000. Drake accepts the lesser deposit, and the sale ultimately is finalized. This is an example of ______. Rescinding the contract unilaterally Accepting partial performance Suing for damages Suing for specific performance

Yes, because he should have known there would be major issues converting that room to a bedroom.

Marvin knows that three-bedroom properties with two bathrooms sell quickest in his market. In an ad for a new listing, he says, "Bonus room could easily be a third bedroom." Marla and Tom visit the property with their agent, and Tom, a construction supervisor, notes that the bonus room couldn't be easily converted to a bedroom because it's too small, it has no egress and no heat source, and you must walk through a bathroom to get to it. Is Marvin guilty of misrepresentation? Yes, because he billed the property as a three-bedroom when it only has two. Yes, because he should have known there would be major issues converting that room to a bedroom. No, because any buyers interested in the bonus room as a third bedroom should be able to see for themselves that it won't work. No, because the term "easily" is subjective.

Novation Novation of a contract is the substitution of one party for another, with the full and complete release of the original party from any obligations under the terms of the contract.

Mary has a dilemma. She has a contract to buy her mother's house when her mother is finally ready to move to a senior living community. But now Mary has to move because of work, and no longer wants to buy the house. With agreement from their mother, her sister Tina steps in to replace Mary. They write up a new contract, with the only change being that Tina is now the party to the contract rather than Mary. This is an example of ______. Performance Breach Novation Assignment

Yes, Mary can use the standard forms that her brokerage uses (assuming these forms were originally created or approved by an attorney).

Mary is preparing a purchase offer for her buyer client. It's a pretty standard offer: a little below list price, with the seller paying a little toward the buyer's closing costs. Mary fills in the blanks on a standard form used in her brokerage firm based on the current situation. Is this okay? No, Mary should have her client prepare the offer. Yes, Mary can use the standard forms that her brokerage uses (assuming these forms were originally created or approved by an attorney). No, Mary should hire an attorney to prepare the purchase offer. No, Mary is not an attorney and shouldn't prepare contracts.

Building department inspectors

Matt is a developer who's obtained a permit that he must post on the job site. Which entity inspects the various phases of his work and signs off on the permit? Appraisers Building department inspectors Other builders The plumber's union

It's still in place because it doesn't terminate on the death or incompetence of the principal.

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? Rufus must now pay Max the commission that he didn't get from the original listing, and the agency relationship is terminated. Max has no recourse; the agency relationship is terminated and he receives no compensation. It's still in place because it doesn't terminate on the death or incompetence of the principal. Max now owns the subdivision as a result of the principal's death or incapacity.

This is a breach of confidentiality because confidentiality survives forever.

Monica meets a colleague from another firm, Kate, for lunch, and discovers that a former seller client, Reuben, is now Kate's buyer customer. Kate represents the seller in this new transaction. Monica tells Kate, "You know Reuben inherited a bunch of money right before he sold his house, right?" Which of these statements is true? This isn't a breach of confidentiality because Reuben is no longer Monica's client. This is a breach of confidentiality because confidentiality survives forever. This isn't a breach of confidentiality because the information shared doesn't negatively impact the client. This is a breach of confidentiality because the information impacts Reuben's negotiating ability with the seller.

Metes and bounds

Morty, a land surveyor, was called out to survey a property. After doing some research, he located the legal description for the property in question. Now, if he could just find the point of beginning located at the iron pin on the southerly line of state route 117, 30 feet east of the oak tree next to Bear Creek. What type of legal description is Morty working with? Metes and bounds Rectangular government survey Datum Benchmark

Mediation

Most often, what's the first course of action for disputed home warranty claims? Litigation Mediation Arbitration Condemnation

Murphey, the current owner

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 The federal government that originally granted the land Murphey's grandfather, the previous owner Murphey's great-great-great-grandfather

Equal Credit Opportunity Act

Natalie is a single mother of twins and receives government assistance to help make ends meet. She's been living with her mother for the last few years but really wants to buy her own home to gain some independence. She's got a little in savings and has good credit, but when a lender turns her away because she receives public assistance she worries that she'll never be able to get a loan. What act prevents automatic discriminatory practices by lenders and protects individuals like Natalie? Home Mortgage Disclosure Act Consumer Credit Protection Act Community Reinvestment Act Equal Credit Opportunity Act

External depreciation

Nearby industrial odor is an example of which type of depreciation? External depreciation Functional obsolescence Curable depreciation Physical depreciation

Specific

Nellie and Victor own a suburban ranch home and fell behind on paying their property taxes when Victor lost his job last year. Victor is working again, but they still haven't saved enough to pay their back taxes. They're worried that the county may begin foreclosure proceedings. What type of lien is this? Attachment Special assessment General Specific

Performs a CMA for an acquaintance and provides advice on setting a listing price based on other comparable properties in the area

Nevina may be creating an implied agency agreement if she does which of these? Performs a CMA for an acquaintance and provides advice on setting a listing price based on other comparable properties in the area Gives her neighbor a tour of another neighborhood home that's on the market Contacts a mortgage broker to find out what first-time homebuyer programs are available Speaks to a local civic club about the homebuying process

$106,250 Conventional loans often require 20% down to avoid PMI ($125,000), and Nico has paid a $50,000 deposit ($625,000 x .08). Closing costs are $31,250 ($625,000 x .05). He needs $106,250 to close ([$125,000 - $50,000] + $31,250).

Nico is buying a home for $625,000. His earnest money deposit is 8%. He wants to avoid private mortgage insurance (PMI) on his conventional loan, and he owes 5% in closing costs. How much money should he bring to closing? $81,250 $31,250 $106,250 $156,250

Investment group

Noah owns an LLC that buys and sells stocks on the NASDAQ 100. He needs some additional financing. To which type of lending institution might he prefer to go? A savings and loan A credit union A commercial bank Investment group

Joint tenancy

Siblings Julia and Gene are co-owners of a small retail building in which a tanning salon is currently operating. Gene really wants to leave his ownership interest to his son when he dies, but the way in which they own the property doesn't allow him to do so. What type of ownership do they have? Tenancy in common Tenancy in severalty Joint tenancy Tenancy by the entirety

$29,815.07 The combined monthly rental rate for the three suites is $29,815.07. The total square footage is 10,712 (7,152 + 3,560), so the annual rental amount is $357,780.80 (10,712 x $33.40). Divide that amount by 12 to get the monthly rental rate.

Office space in a downtown high rise rents annually at $33.40 per square foot. Max's tenant client is interested in renting two adjacent suites: one is 7,152 s.f., and the second is 3,560 s.f. What's the monthly rental rate? $354,039.99 $29,503.33 $357,780.80 $29,815.07

Tenancy by the entirety

Once Greg and Caitlin were married, they decided to purchase a home together. The most likely form of co-ownership under which they would make this purchase is ________. Estate in severalty Tenancy by the entirety Joint tenancy Tenancy in common

Interest

Only ______ is paid until the end of a straight mortgage loan term, when the principal is repaid in full. Points Principal Insurance Interest

The duty of obedience

Simone can't believe that her client won't let her put a lockbox on the property. How does he expect other agents to be able to show the home? Oh well, it's not as if he's asking her to do something illegal. The client's wish is her command. What fiduciary duty is this an example of? The duty of obedience The duty of reasonable skill and care The duty of accounting The duty of loyalty

Seller agency

Orla represents the seller, and Pardeep, an agent from a different firm, represents the buyer in the same transaction. What type of agency relationship does Orla have with her client? Dual-licensee dual agency Single-licensee dual agency Buyer agency Seller agency

Checklists help ensure that agents and staff don't miss steps in a process.

Overall, how do company checklists assist with agent supervision and help to mitigate risk? Checklists ensure that tasks are completed in a timely manner. Completed checklists in transaction files prove that agents completed all tasks. Checklists help ensure that agents and staff don't miss steps in a process. Checklists provide a method for brokers to track agent training.

General

Paulo is a property manager for several large properties. Which type of agent is he in relation to his landlord/client? Unlicensed Specific/special General Dual

Free-standing TV

Personal property includes which of the following? In-ground pool Built-in microwave Custom curtains Free-standing TV

General Property managers are general agents, who, through the property management agreement, are given the authority to act on behalf of the property owner and are responsible for all of the dealings on a specific piece of property.

Phil is a property manager. He serves as a ______ agent to his landlord/client. Universal Special General Designated

Third row, third from left

Picture a drawing of a section of land. Where is Township 16 located? Fourth row, fourth from left Fourth row, third from left Third row, third from left Third row, fourth from left

The 100-year-old wiring

Prakesh and Jean have always wanted to renovate an old home. They found a Victorian that hasn't been lived in for years and are considering making an offer. Their agent warns them that the property as it stands now may not be insurable. Which of the following might make it uninsurable? The slate roof The lack of closets The crumbling driveway The 100-year-old wiring

Enjoyment

Property owner Craig likes to sunbathe in the nude in his nice, private backyard. What part of the bundle of rights allows him to do this legally? Control Disposition Enjoyment Exclusion

Defeasance

Prudence just finished paying off the debt on her loan, so the lender released the property's title to her. What clause in her mortgage stipulates this? Acceleration Due on sale Alienation Defeasance

The properties went through the foreclosure process and didn't sell at auction.

Quad City National Bank has several REO properties on its books. Why does the bank own these properties? Quad City is in the process of foreclosing on these homes. The bank purchased the properties as investments. The properties went through the foreclosure process and didn't sell at auction. The bank purchased these properties from owners who were in foreclosure.

They were refused an apartment because Ramon is from Nicaragua.

Ramon and Bill are victims of fair housing discrimination. Which of the following must have occurred if their landlord violated specific terms of the Fair Housing Act? They were refused an apartment because they're gay. They were refused housing because Ramon is a smoker. They were refused an apartment because Ramon is from Nicaragua. They were shown an inferior apartment because the landlord doesn't like 20-somethings.

Carma and Trent must pay the finder's fee to Randall's broker.

Randall's clients, Carma and Trent, are looking for a mountain cabin. They tell Randall they'll pay him a $2,000 finder's fee if he finds the cabin that checks all their boxes and they close on it. Randall finds a likely candidate as a FSBO, and negotiations begin. What circumstance is required for Randall to receive the finder's fee? Randall must disclose the finder's fee to the seller and must be paid outside closing. Carma and Trent must pay the finder's fee to Randall's broker. Another licensee must represent the seller. Carma and Trent must disclose the finder's fee payment to the seller.

Tom's title company didn't have time to record Tom's deed before Regina closed with Martin.

Regina closed on the sale of her house to Tom on Thursday, then went to a second closing on Friday and sold it to Martin. How could the title company in Martin's transaction have missed the fact that Tom had purchased the property? Martin's title company didn't do its due diligence in researching the property ownership. Tom's title company didn't have time to record Tom's deed before Regina closed with Martin. Tom's title company failed to provide the required notification that the property was already sold. Regina's closing with Martin took place in a different county than her closing with Tom.

Regina didn't purchase the mineral rights, which have been severed from the property by the previous owner.

Regina purchases a farm with 80 acres and owns her property in severalty. What does this mean for the company that purchased the mineral rights from the previous owner? Regina is the sole owner, and the company must accept a fractional portion of the sales price in return for forfeiting the mineral rights. Regina didn't purchase the mineral rights, which have been severed from the property by the previous owner. Regina included the mineral rights in her purchase agreement, since she could not otherwise own the property in severalty. Regina and the company that purchased the mineral rights are automatically tenants in common, since they share ownership of the property.

1% of loan value

Related to real estate financing, how much is a point? $1 $10 1% of loan value 1% of sale price

If the disability for which the tenant is making the request is obvious, the landlord may not ask why it is needed.

Related to reasonable accommodation of being allowed to have an assistance animal, which statement is true? The landlord is not obligated to consider the request unless the tenant can produce either the original or a certified true copy of the animal's service certification. The landlord must consider the request but may require an additional "pet" security deposit. If the disability for which the tenant is making the request is obvious, the landlord may not ask why it is needed. If the disability is not obvious, the tenant must provide the landlord with full medical records to support the request.

Mutual

Rescission can be a(n) ______ agreement to cancel a contract. Tenuous Unlawful Mutual Ill-advised

The deed provides the greatest protection available from a grantor to a grantee.

Reuben purchased a property from a seller who gave him a general warranty deed. What's true of Reuben's deed to this property? Reuben's deed is a court-ordered deed. The deed provides the greatest protection available from a grantor to a grantee. The deed likely doesn't include a covenant of warranty. Reuben's property was likely a foreclosure purchased through a lender.

In severalty

Rhonda and Oliver bought an old schoolhouse with hopes of transforming it into a residence. They owned the property as joint tenants. After Oliver died, how did Rhonda own the building? As a tenant in common with Oliver's heir(s) As a joint tenant with rights of survivorship In severalty In trust

A minimum down payment of 3.5% is required. Borrowers with an FHA loan must pay a minimum down payment of 3.5% and have MIP. Private Mortgage Insurance (PMI) applies only to conventional loans.

Rhonda and her husband filed for bankruptcy five years ago. They want to purchase a new house but don't have the best credit score. They've decided to buy the home using an FHA loan. Which of these is a true statement? The loan-to-value ratio must be less than 80%. They must have PMI. A minimum down payment of 3.5% is required. Mortgage insurance is not required.

The HOA will be paid before any other liens, even a property tax lien.

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 lien can be attached to both her real and personal property. The HOA will be paid before any other liens, even a property tax lien. The HOA can collect twice the amount of the money that she owes. The HOA must involve an administrative law judge in order to collect.

Ron may take the fixtures as long as he repairs any damage caused by removal.

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 may take the fixtures as long as he repairs any damage caused by removal. Ron is required to take the fixtures and return the premises to its original condition. Ron is required to leave the fixtures if they're attached.

Finding properties to show to Fred and Regina

Roxanne just finished making a buyer presentation to Fred and Regina Jones. Now that they understand the difference between being customers and being clients, they're anxious to be represented. What is one of Roxanne's duties to them as their buyer's agent? Finding properties to show to Fred and Regina Ensuring that she earns a commission Notifying the Jones family of any material changes Sharing their motivations and pricing strategies with seller's agents.

A split ceiling joist in the basement

Roy purchased a newly constructed home with a warranty that covers major structural defects for 10 years, and systems (HVAC, electrical, plumbing) for three years. After living in the home a few months, Roy notices the following defects and submits them all. Which one will likely be covered by the warranty? A split ceiling joist in the basement A baseboard with paint drips A tear in the carpet A light fixture that doesn't match other light fixtures in the home

Joint tenancy

Sam and Bridget are cousins who jointly own property. They each hold 50%, they received title at the same time, they have the right of survivorship, and they have equal rights of possession. What type of ownership do they have? Estate in severalty Tenancy by the entirety Joint tenancy Tenancy in common

He may have to deal with ridicule or disdain from his broker.

Sam is a licensee who believes strongly in adhering to fair housing laws. When his broker asks him to "just lighten up a little" and work with a client who's refusing to sell to a certain buyer because of her religion, what's the potential consequence to Sam of sticking to his beliefs? He may have to deal with ridicule or disdain from his broker. He may never be able to find another client who will work with him. He may lose his license for not following his broker's directions. He may be reprimanded by HUD.

Straw buyer

Samuel and Yoshi have worked at the same firm for a few months and get along well. Samuel mentions he has a credit score in the low 800s. Yoshi, who's just starting out, persuades Samuel to sign for a loan to help Yoshi buy a property, since his credit isn't good enough. Yoshi promises to make the mortgage payments, but two months after the deal closes, Yoshi moves across the country. Samuel's now stuck with a $400,000 mortgage. What type of scheme is this? Equity skimming Straw buyer Silent second Inflated appraisal

$4,000 Sandra brings to closing the total amount of her down payment and closing costs ($7,000), less the earnest money provided when the contract was signed ($3,000), or $4,000.

Sandra is purchasing a home for $200,000 and provides a $3,000 earnest money check to the seller. Her closing costs and down payment total $7,000. Assuming that Sandra is financing the purchase, how much should she bring to the closing? $2,000 $4,000 $3,000 $5,000

$0 The VA loan program was part of the G.I. Bill of 1944, and it offers financing with no down payment.

Sandra retired from a career in the Navy and is ready to buy her first home, a small bungalow in a quiet neighborhood, for $169,900. Her military service gives her the benefit of Veterans Affairs (VA) loan. What's her required down payment? $500 $2,548.50 $0 $1,699

Arbitration

Saul was unhappy after he and Janelle liquidated their business. Janelle sold some items for less than he'd initially agreed to and he wanted the full price to be included in the profit split. He wanted to sue, but he was required to pursue other options. What contract clause kept Saul from being able to sue? Liquidated damages Damages block Choice of law Arbitration

Nikki's seller client has instructed her not to present offers that are less than the listing price. This is a conflict of Nikki's duty of disclosure, which requires her to present all offers, and her duty of obedience.

Select the situation that correctly represents a true conflict of fiduciary duties. Renee's clients don't want showings on weekends. Renee knows this may reduce market exposure and she feels it's not in her client's best interests. This is a conflict of her duty of loyalty and her duty of obedience. Terrance's buyer clients don't want him to share with the seller that they're having trouble coming up with the down payment. Terrance's duty of loyalty to his clients is in conflict with his duty of disclosure. Kai learns that her buyer clients' inspector will be reporting a furnace issue to the buyers. She doesn't want to break the news to them. Her duty of confidentiality to the seller and her duty of loyalty to her buyers are in conflict. Nikki's seller client has instructed her not to present offers that are less than the listing price. This is a conflict of Nikki's duty of disclosure, which requires her to present all offers, and her duty of obedience.

During the ownership stage, both investors and homeowners may be able to deduct mortgage interest paid.

Select the statement that accurately depicts property ownership income tax implications. During the ownership stage, both investors and homeowners may be able to deduct mortgage interest paid. First-time home buyers can deduct closing costs paid. Investors can deduct depreciation during the ownership stage; homeowners can't. When homeowners sell their property, they'll need to calculate the depreciable basis on the property.

Few states require an abstract of title when conveying property.

Select the statement that accurately describes an abstract of title. Title abstracts provide data for the title company's title search. The chain of title documents the information found during the title abstract process. A title company representative must certify the abstract of title. Few states require an abstract of title when conveying property.

A deed of trust conveys real estate to a trustee for the beneficiary named in the deed.

Select the statement that accurately reflects the type of deed used for the transfer. A deed of trust conveys real estate to a trustee for the beneficiary named in the deed. A bargain and sale deed conveys property in a foreclosure proceeding. A referee's deed conveys property from one spouse to another in a divorce proceeding. A warranty deed conveys REO property from the lender.

The covenant of quiet enjoyment promises that the grantee won't be disturbed by a title defect the grantor passes on.

Select the statement that correctly exemplifies the covenant term. The covenant of warranty promises that the grantor has the capacity to convey title. The covenant of quiet enjoyment promises that the grantee won't be disturbed by a title defect the grantor passes on. The covenant for further assurances assures the grantee that there are no undisclosed encumbrances on the property. The covenant against encumbrances is the grantor's guarantee that he or she owns the property being conveyed.

$2,064.48 In many states, the seller is considered the property owner on closing date. Divide the monthly income by the days in March ($4,000 ÷ 31 = $129.03) for daily rent, then multiply that by the 16 days Colin will own the property for the total of $2064.48.

Seller Adelaide and buyer Colin close on a transaction for two rental condos on March 15. They live in a state where the seller is considered the owner of the property on the day of closing. The combined rental income per month is $4,000. How much rental income can Colin expect to earn in March? $2,011.56 $2,300.25 $2,064.48 $2,193.51

Release

Seller Gina feels awful that Martha, who was going to buy her property, lost her job. Gina decides to ______ Martha from the purchase contract. Assign Reform Release Rescind

Dora doesn't use the back door because the steps leading to the yard are rotted.

Seth is a licensee representing seller Dora. Which of these items is Seth required to disclose to prospective buyers about the property? Dora doesn't use the back door because the steps leading to the yard are rotted. The neighborhood kids like to ride their bikes in Dora's driveway. Dora keeps sunflowers planted in the back yard because the local birds can eat the seeds. The pink geraniums in the window boxes are fake.

Credit of $1,214.85

Susan is selling her house for $265,000, and closing is set for June 19. She prepaid the property taxes ($1,350) and insurance ($925). Using a calendar-year proration method for calculations, how will these amounts appear on Susan's closing statement if Susan owns the property on the day of closing? Debit of $1,214.85 Credit of $1,059.10 Credit of $1,214.85 Credit of $1,350 and debit of $925

"I highly recommend a home inspection contingency with your offer to protect yourself in the event there are major defects with the house."

Seth is a licensee working for a buyer, Britney. She wants to make sure the seller accepts her offer on a charming Cape Cod, so she plans to make a full-price offer right away. How should Seth respond? "Since you love this house, this is the best way to make sure you get it. Let's write up the offer and send it over right now." "Your offer may be more attractive if we come in at $5,000 over the list price." "I highly recommend a home inspection contingency with your offer to protect yourself in the event there are major defects with the house." "Your offer would be more attractive if it were all cash."

Group boycotting

Several brokerages in a certain area agree to stop running advertisements in a local publication. What type of antitrust violation is this? Market allocation Price fixing Group boycotting Tie-in arrangement

Any party to the transaction

Shane's buyers learned during the inspection that there was water damage around the fireplace and that the chimney needed new flashing and to be repointed. To whom must Shane disclose that information? Only the listing agent Only the sellers The sellers and the lender Any party to the transaction

Obedience

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 ______. Obedience Loyalty Disclosure Accounting

A commercial bank

Shelly's flower business is blooming and it's time for her business to grow. She plans to take out a business loan to open two more shops on the north side of town. Which lending institution would she most likely go to for the loan? A savings and loan A credit union An investment group A commercial bank

An act of waste

Sherman, who owns property in a life estate, neglects the property, significantly diminishing its value. This is called ______. A possessional prerogative An act of waste An estate at sufferance A lease option

The condo owners

Shira bought a condominium in a planned unit development. The development has a small playground, tennis and basketball courts, and a putting green. Who owns these recreational facilities? The PUD developer The condo owners The development investors The businesses located in the PUD

Defeasance

Shirley's lender discharged the mortgage lien on Shirley's property after processing her final payment. Which clause requires the lender to take this action? Defeasance Due on sale Acceleration Alienation

Eminent domain

Smalltown is building a new interstate exchange to facilitate access to shopping and restaurants. In order to do so, it purchased two homes and tore them down so the ramps to and from the interstate could be constructed. What principal allowed Smalltown to do this? Doctrine of laches Escheat Eminent domain Abandonment

Client

Someone who has agency representation with the licensee is a ______. Consumer Client Fiduciary Customer

Whether consent was voluntary.

Sondra thinks the new business contract she's signed with her business partner is valid. Both parties are legally competent, the purpose is a business transaction so it's a legal purpose, an offer was made and accepted, and a fee has been negotiated and documented. Which essential element of a valid contract has Sondra not yet considered? Whether the contract is in writing. Whether consent was voluntary. Whether the parties are over 21. Whether the contract has been translated into all possible languages.

A lien theory state

Sondra, a buyer, signs all the required mortgage documentation, promising to make all payments to her lender. Unfortunately, Sondra falls on hard times and misses multiple payments, and the bank has indicated that it is going to foreclose on her. The foreclosure proceedings are more difficult for the lender because Sondra holds the title to the land. What kind of state does Sondra live in? An intermediary theory state A deed of trust theory state A title theory state A lien theory state

A right of way provides a pass-through, but not a right to use the property.

Sondrine's beach cottage has a right of way that allows nearby residents to get to the beach. What is the primary difference between a right of way and an easement? A right of way offers the right to use the property for some function, as compared to just as a pass-through. A right of way provides a pass-through, but not a right to use the property. A right of way is always for an indefinite time period. A right of way always has a defined expiration date.

Incentive zoning

The Druid Hills neighborhood sits firmly within a single-family residential zoning area. Most of the lots are a third of an acre or larger. A 20-acre parcel on the edge of the neighborhood was recently sold. The buyer is a developer who wants to build condominium flats, as multi-family housing is in short supply. The town is considering rezoning that parcel because the developer plans to also include a public park and a walking trail. What kind of zoning is this? Spot zoning Downzoning Incentive zoning Aesthetic zoning

Conflicts of interest, material facts, and adverse material facts

Specifically, what does the fiduciary duty of disclosure relate to? Conflicts of interest and confidential information Adverse material facts and publicly recorded facts Material facts and adverse material facts Conflicts of interest, material facts, and adverse material facts

Acceleration

Stacy has gone into default on her mortgage. Her lender is demanding that the entire loan balance be paid in full. Which mortgage clause permits her lender to do this? Alienation Acceleration Due on sale Defeasance

Legal descriptions of both properties

Stan and Emile are arguing over their shared lot line, since Stan thinks that Emile planted a privet hedge on Stan's property. Stan filed a civil legal action against Emile. What will the court use to determine the actual lot line? Affidavit from surveyor Aerial photographs Testimony from long-time neighbors Legal descriptions of both properties

Credit cards

State usury laws are typically not applicable to what type of lending? Consumer loans Personal loans Loans from private lenders Credit cards

Zero

Steve is preparing a market analysis for the Joneses and has selected three comparable (competitive) properties. What's the maximum number of adjustments Steve should make to the Joneses' property? Three Two One Zero

Plat map

Sunshine Surveyors Inc. created a lot and block survey for a new residential development, Happy Acres. The first thing they did when they surveyed the new neighborhood was to reference a metes and bounds land description. From there, they divided the land into numbered lots and blocks. This output is known as a ________. Benchmark Plat map Monument Rectangular survey

The listing agreement with her current broker has expired.

Tabitha listed her small-town property for sale. The community is in a decline; the largest local employer just shut its doors. The house has been on the market for several months with no offers. Tabitha decides to rent the property out instead of selling it. Under what condition may she do this without penalty? Since she's converting it to a rental, she can terminate the listing. The listing agreement with her current broker has expired. The local economy doesn't support the property sale, so she's permitted to move the listing agreement to the larger city. She's received no offers on the listing, so she can terminate her listing agreement.

Private land control

Tammy and Reginald bought a house with a gas line easement on the property. An easement like this one placed by the utility company is an example of a ______. Covenant Private land control Deed restriction Subdivision regulation

Nets

Taxes, insurance, and maintenance are property expenses that are sometimes covered in a tenant's lease payment. These are collectively referred to as the ________. Doubles Nets Extras Utilities

Sublease

Teresa, a new occupant, took possession of a leased property with the permission of the landlord and Cheri, the vacating tenant. However, Cheri remains bound by the terms of the contract until it expires. This is an example of a(n) ______. Constructive eviction Novation Actual eviction Sublease

Fair Housing Act

The Arbor Heights Community passed a zoning ordinance that requires group homes of disabled citizens to be situated outside of city limits. This is a violation of the ______. Municipality Zoning Act City Charter Act Fair Housing Act Zoning Disability Act

$1,055

The Davises pay the annual property tax of $1,825 on their lake house every January. On a whim, they sell the lake house to the Bennets to buy a Winnebago and travel the country. Closing is set for July 31. Assumptions: Use the calendar year proration method; it's not a Leap year; the buyer owes everything for the day of closing. How much of the pre-paid property tax was the Davises' responsibility? $1,064.70 $1,069.77 $1,055 $1,050

Any ad that makes a health or safety claim or any claim that's difficult for the consumer to evaluate

The Federal Trade Commission is concerned with all ad claims, but is most likely to be most concerned with ______. Any ad that makes a health or safety claim or any claim that's difficult for the consumer to evaluate Any exaggerations of a property's view Any ad likely to mislead consumers acting reasonably under the circumstances Any ad that is demonstrably false

Executed

The Graysons just closed on their new home. They move in tomorrow. What type of contract do the Graysons have? Executed Option Executory Unilateral

Purchase money mortgage

The Hendersons don't have enough money to make the full 20% down payment their lender requires. To close the sale, the seller is willing to finance a loan for the gap between their down payment and the amount the institutional lender is willing to loan. What's this type of financing called? Purchase agreement Equity mortgage Seller-insured loan Purchase money mortgage

Sex

The Housing and Community Development Act of 1974 added which protected class to federal fair housing law? Color Disability Religion Sex

Inverse condemnation

The Johnsons have owned a small restaurant for more than 20 years. They're open for lunch and dinner six days a week, and 80% of their weekday revenue comes from the happy hour drink and appetizer specials they offer. The town in which their restaurant is located recently constructed a new middle school and stripped the liquor license from the Johnsons' restaurant, because it no longer complies with the ordinance to be 500 feet from a school property. The Johnsons have accused the town of _____. Inverse condemnation Eminent domain Escheat Condemnation

Method of annexation

The MARIA acronym helps to identify the five tests of a fixture. Which of the following tests refers to how and whether the item is attached to the property? Adaptability of the item to the land's use Method of annexation Intention in placing item on land Agreement of the parties

Religion

The Millers moved to a small town and were interested in buying a house. At the first meeting with real estate sales professional Nora, she asked them where they went to church. They replied that they were atheists and didn't attend church. Nora then told them that she didn't know of any listings that met their needs, even though that wasn't true. Nora is discriminating based on ______. National origin Religion Familial status Sex

HUD

The Office of Fair Housing and Equal Opportunity is a part of which federal department? HHS NHA CIA HUD

Demand and utility

The Richards' farm is located on a 10-acre parcel of land, which is very rare to come by in their area. However, the house is rundown and in need of many repairs. Buyers in the area looking for a move-in ready home would need to either look elsewhere or wait several months for the home to be renovated. Which factors are negatively impacting the value of the Richards' property? Demand, scarcity, and transferability Utility and transferability Demand and utility Utility, scarcity, and transferability

The loan origination and lender fees that they paid at closing

The Siegels are purchasing a commercial investment property and plan to use straight-line depreciation on their financial statements and tax calculations. Which of the following would NOT be included in the Siegel's depreciation basis calculations? The cost of the electrical system upgrades they did after purchase The cost of the title insurance for the property The loan origination and lender fees that they paid at closing The price that they paid for the property, minus any land costs

A survey

The Simpsons are buying a five-acre tract that has always been part of a larger parcel. When the owners of the large acreage decided to subdivide it, they needed to have a legal description created for the five-acre lot. What was used as the starting point for creating that legal description? A survey A plat map A benchmark Metes

$2,149.30

The Slathertons are looking at buying a $300,000 property with a 20-year loan at a 6% interest rate. How much would their monthly principal and interest amount be? Plug in the numbers using the amortization chart in your resources see what the payment per month would be. (Use the amortization chart your lesson instructed you to print out.) $2,149.30 $3,1596.30 $2,421.65 $2,981.92

Fee simple defeasible

The Swansons left the family property to their son, Jason, with the stipulation that he does not build on it. The type of estate Jason holds is ______. Leasehold Fee simple defeasible Fee simple absolute Qualified lease

The Federal Communications Commission

The Telephone Consumer Protection Act is overseen by ______. The Federal Communications Commission The National Association of REALTORS® The National Security Agency The state attorney general

Downzoning

The Town of Petersville has just decided to restrict density in one area of town that previously allowed a higher density. This is known as ______. Aesthetic zoning Reduction zoning Downzoning Density zoning

Transferability

The ease with which the property can be conveyed to another describes which factor that influences value? Demand Transferability Scarcity Utility

Anticipation

The economic principle known as ______ means that the value of property today is impacted by the current value of the total expected future benefits. Anticipation Highest and best use Conformity Progression

Mortgage payment

The acronym PITI is a reference to what real estate-related concept? Annual property maintenance Required loan documentation Mortgage payment Annual property taxes

Supply and demand Supply and demand says that when supply goes up, prices go down, because there is less demand.

The economic principle that tells us that when supply goes up, price goes down, is commonly referred to as what? Supply and demand Regression Conformity Price dropping

Amendment

The appraisal on Jean's property came in $22,000 less than the agreed-upon sales price, so buyer Thomas wants to renegotiate. If they can come up with a new price that is satisfactory to both parties, what will they use to document this? Addendum Annotation Amendment Appendix

$90.57 Multiply the assessed value by the tax rate and divide by 12 to calculate monthly taxes. ($209,000 x .52%) = $1,086.80 ÷ 12 = $90.57

The assessed value for your buyer clients' new purchase is $209,000. They feel they got a great deal since they're purchasing the property for $175,000. They've asked you to estimate their monthly property taxes. You know the rate for their jurisdiction is .52%. $121.98 $101.12 $90.57 $75.83

Three to six months

The best way to start comparative market analysis data collection is to use properties that sold in the last ______. Three to six months 18 to 24 months Two to three years 12 to 18 months

The duty of accounting The duty of accounting continues even after the transaction closes. For instance, any money the agent holds after a transaction closes must be accounted for until it's delivered to the appropriate party.

Which fiduciary duty may continue even after the transaction closes? The duty of reasonable skill and care The duty of obedience The duty of disclosure The duty of accounting

The duty of accounting

Which fiduciary duty requires agents to handle their clients' funds and paperwork properly? The duty of confidentiality The duty of accounting The duty of obedience The duty of disclosure

Enforcement

The doctrine of laches refers to the ______ of restrictive covenants/deed restrictions. Creation History Enforcement Types

Real estate

The duty of reasonable skill and care assumes that agents can provide expert advice to their clients in which area? Home construction Mortgages Real estate Property tax assessments

The Freedom of Information Act

The federal Government in the Sunshine Act is part of what? The Sarbanes-Oxley Act The Freedom of Information Act The first amendment The SPEECH Act

Prices are pushed upward.

The fewer properties on the market, the greater the scarcity. What's the effect on prices? Prices remain the same. Prices are pushed downward. Prices are pushed upward. There's no correlation between scarcity and price.

Asbestos

The fibers of ______ are dangerous when inhaled because they can lodge in the lungs and intestines, causing cancer. Radon Asbestos Silicone Lead paint

Joint tenancy

Which form of real property ownership (for owners other than married couples) means there's equal ownership shares with undivided possession rights? Tenancy in common Tenancy in severalty Joint tenancy Tenancy by the entirety

Planning board

Which group ensures that community growth is controlled and orderly? Planning board Master commission HOA Zoning board of appeals

https://www.google.com

Which of the following Internet addresses is secure? www.http://amazon.com http://www.google.com http://www.facebook.com https://www.google.com

The specified term in the agency agreement expires.

Which of the following actions would result in the legal termination of an agency agreement? The client wants to add another addendum to the sales contract. The client wants the seller to make improvements to the property. The specified term in the agency agreement expires. There is an unexpected death in the agent's family.

Reviews a developer's project plat

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 Reviews a developer's project plat Reviews the zoning for a developer's project Considers granting a special use permit to a developer

$4,025 A point is 1% of the loan amount. Three-and-a-half points (one-and-a-half and two) is 3.5% of $115,000, or $115,000 x .035 = $4,025.

The lender will charge a one-and-a-half-point origination fee and two loan discount points. What will be the total due for points on a $115,000 loan? $2,300 $575 $4,025 $1,725

A high rise with residential, retail, and entertainment space

The local planning and zoning commission is reviewing multiple applications at this week's meeting. Which of the following new developments is likely to be reviewed relative to a mixed-use zoning ordinance? Four patio homes on six acres A high rise with residential, retail, and entertainment space A one-story building with retail and office space A self-storage facility

Physical depreciation

The loss in value caused by deterioration in physical condition is called ______. Physical depreciation External depreciation Functional obsolescence Economic obsolescence

Novation releases the original party from all obligations while assignment does not.

What is the key difference between the assignment and novation of a contract? Individual contracts must specifically allow novation but not assignment. Assignment releases the original party from all obligations while novation does not. Novation releases the original party from all obligations while assignment does not. Novation is disallowed in many states while assignment is not.

$6,000

The purchase price of the home Leroy is buying is $300,000. He's putting $100,000 down and is paying three discount points. How much will this cost? $2,000 $4,000 $6,000 $9,000

They often involve a conflict of interest.

Which of the following is true about net listings? They often involve a conflict of interest. They don't include compensation for the buyer's agent. They're legal in all 50 states. The listing agent is guaranteed at least some commission.

Fannie Mae, Ginnie Mae, Freddie Mac, Farmer Mac, and lending institutions that buy loans from other lenders

What is the secondary mortgage market made up of? Lending institutions that lend directly to consumers Fannie Mae, Ginnie Mae, Freddie Mac, Farmer Mac, and lending institutions that buy loans from other lenders The U.S. Department of Veterans Affairs and the Federal Housing Administration Savings and loans, thrifts, and credit unions

Ensure funds are available to borrowers

The secondary mortgage market buys loans from the primary market. In other words, it helps ______. Streamline lenders' bankruptcy processes Avoid foreclosure of borrower properties Ensure funds are available to borrowers Prevent bank runs by consumers

At first substantive contact

When must an agent disclose an agency relationship to an unrepresented transaction party? Relationships don't need to be disclosed At closing When asked about the relationship At first substantive contact

Supply and demand

When prices go down because there are too many homes on the market and too few buyers, this is an example of ______. Conformity Progression Supply and demand Regression

Aesthetic zoning

The town planning and zoning board is considering some new zoning regulations to ensure that one of the neighborhoods maintains its designation on the National Register of Historic Places. What type of zoning are they likely to enact? Aesthetic zoning Bulk zoning Incentive zoning Registry zoning

Advertising

What does the Federal Trade Commission Act regulate? Federal real estate transactions Listing trades Advertising Commission disbursements

Gross income multiplier

What does the income approach to value rely on when valuing properties that are five or more units? Sales comparison Gross income multiplier Monthly gross rent Gross rent multiplier

Substitution

This economic principle says that a property's value is determined by what it would cost to purchase a similar property. Anticipation Substitution Competition Contribution

Compass headings and directions

What does the metes and bounds system use to develop a property's legal description? Townships and sections Compass headings and directions Principal meridians and base lines Plat references

Rate, index, and margin

What factors affect an adjustable rate mortgage? Rate, loan-to-value ratio, and index Rate, index, and margin Amortization tables, index, and rate Index, tax basis, and margin

Drainage

Three days ago, there was a severe thunderstorm in Shirley's town. Today, there's still a large puddle of water on her property, but it doesn't appear the neighboring properties have any puddles. This could indicate a(n) ______ problem. Drainage Easement Foundation Encroachment

Ask Daniel to sign a quitclaim deed to release his ownership share.

Through the divorce process, Gail was granted ownership of the couple's vacation timeshare. Gail is ready to sell the timeshare but discovers that her ex-husband's name is still on the deed, creating a cloud on the title. What should Gail do? File a quiet title suit against Daniel. Ask Daniel to sign a general warranty deed so the new buyers enjoy all the deed covenants. Ask Daniel to sign a quitclaim deed to release his ownership share. Purchase a title insurance policy for the new owners to cover any eventual ownership issues.

Parallel township lines

Tiers in the rectangular government survey system are formed by ______. Parallel range lines Parallel township lines Parallel baselines Parallel principal meridians

Method of annexation

Tim and Tina Wells bought a home with absolutely beautiful perennial gardens in the back. The plantings were designed to bring birds, bees, and butterflies and to provide color for most of the year. When they did the final walkthrough, they were dismayed to see that many of the shrubs and flowering plants had been removed. They expected these plantings to be considered part of the real property because of the ________. Method of annexation Intention in placing the item Agreement of the parties Adaptation to the land

A public record of tenancy

Title insurance will cover claims by individuals who live or lived on the property in question, as long as what's in place? Approval from the current owner An affidavit from the resident A public record of tenancy A tenant add-on insurance policy

Township lines and range lines

What forms the boundaries of a township? Baselines and township lines Township lines and range lines Tiers and range lines Principal meridians and baselines

Conditions of sale

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 listed has the highest priority? Location Market conditions Conditions of sale Physical characteristics

Identify the contracting parties

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. Identify the contracting parties Be reviewed by an attorney Achieve a result that's fair to all parties Be agreed to verbally

Establish a separate escrow account for each property.

To prevent commingling and accidentally using the funds from one income property to pay for the expenses of another, a broker should ______. Establish a separate escrow account for each property. Keep the funds from one of the properties in his personal bank account. Create distinct names for each property and track the funds in separate spreadsheets. Ask another broker in his firm to manage the second property.

Investors

To whom would a 1031 tax exchange usually appeal? Investors Wholesalers Retailers Traditional home buyers

Banks acquire REOs through failed foreclosure sales or deed in lieu of foreclosure actions.

Tracy is looking in the MLS and sees a listing marked "REO." Which of these statements regarding REOs is correct? REOs refer to investment properties a bank owns. REOs are properties that the lender has given permission to sell for less than the loan amount. Banks acquire REOs through failed foreclosure sales or deed in lieu of foreclosure actions. An REO property is one that the lender is trying to help the owner sell before beginning foreclosure proceedings.

Sign the note, mark it "Paid in Full," and return it to Travis.

Travis has made the final payment on his loan according to the loan terms. What must the note holder do to acknowledge that the debt has been repaid? Endorse the note and return it to Travis. Destroy the note. Sign the note, mark it "Paid in Full," and return it to Travis. Assign the note to Travis.

The CD isn't required for a HELOC.

Trinity has applied for a home equity line of credit (HELOC) to perform some upgrades on her home. Within what timeframe must her lender provide the Closing Disclosure? Three days before closing Three days from her loan application date At closing The CD isn't required for a HELOC.

Reasonable skill and care and obedience

Tristan refuses to let Marla to list his property on the MLS, even though Marla told him that more exposure to the property will generate more potential buyers. Which two fiduciary duties are at odds in this situation? Reasonable skill and care and obedience Loyalty and confidentiality Reasonable skill and care and confidentiality Loyalty and reasonable skill and care

The two firms have agreed not to compete in one another's markets.

Two competing firms are found guilty of illegal market allocation. Which of the following scenarios must be true? The two firms have agreed not to compete in one another's markets. The two firms have agreed to set commission rates and/or co-op fees at a specific amount. The two firms are owned by the same umbrella company. The two firms are located in different parts of the state.

The agreement between the two firms

Two large local brokerage firms agreed to lower their commission rates to the same amount, approximately 1% lower than any other firm in town. After extensive marketing of their new lower rate, these two firms began to see a big increase in the number of listings they received, costing their competitors substantial amounts of money. What about this situation makes it a per se antitrust violation? The dollar amount the competitors lost The marketing efforts the two firms used The agreement between the two firms The size of the two brokerage firms

$8,697.60

Two neighbors agree to equally split the cost of installing a chain link fence on a 2,880-foot boundary between their properties. How much will each neighbor owe if the chain link fence costs $6.04 per foot? $17,395.20 $11,596.80 $8,697.60 $5,798.40

$31,743.58 Straight-line depreciation for a commercial building means that you should divide the building's basis ($619,000) by 39 years. The yearly depreciation is $15,871.79, and you'd multiply this by two to get the two-year depreciation total.

Two years ago, Amelia purchased a commercial building for $619,000. It was in great shape, so she didn't need to make any renovations. She will use straight-line depreciation to determine the amount of depreciation she can take each year. What is the total amount of depreciation Amelia has accounted for including last year and this year? Can't be determined with the information given. $31,743.58 $15,871.79 $7,935.90

Percentage

Tyra owns a nail salon that's located in a strip mall. Her rent every month includes $1,800 base rent and 10% of her gross sales. What kind of lease does Tyra have? Percentage Net Gross Graduated

Group boycotting

Unhappy with some of the fees a local mortgage company charges her clients, Renee decides to not do business with that company and convinces buyer agents showing her listings to not do business with this company, either. What is this an example of? Tie-in arrangement Group boycotting Price fixing Market allocation

The former owner might owe a debt to lien holders who aren't fully paid.

What happens after a foreclosure if there isn't enough money from the sale to pay off all of the lien holders against a property? The former owner might owe a debt to lien holders who aren't fully paid. The former owner's wages will be garnished for the remainder of what's owed. The lien holders must refile on the former owner's next property. All claims are void if there isn't enough money after the foreclosure sale of the property.

Covenants

When referring to private land use restrictions, fence height, additional structures, and architectural design are generally categorized under ______. Contingencies Covenants Conditions Codes

Remainderman

Upon a life estate holder's death, the estate either reverts to the original owner or to another person the original owner has named, known as a ______. Backup Remainderman Holder-in-waiting Reversionary

Yolanda

Victor buys a property from Yolanda for $200,000. Using a land contract, Victor agrees to pay Yolanda in monthly installments of $4,000 over the course of 50 months. Until Victor pays Yolanda the $200,000, who retains the title? Yolanda Victor's beneficiary Victor A trustee

It's a commercial enterprise that's open to the public.

Virginia is finally living her dream—she bought a coffeehouse in a charming college town. After she closed on it, her attorney sat down with her to discuss various business licensing and legal requirements she'll have to meet. Virginia was surprised to learn that her five-table establishment is affected by the Americans with Disabilities Act. What must be true about the coffeehouse? It sits in a city center. It includes at least 400 square feet of public space. It's a commercial enterprise that's open to the public. It was built after 1978.

They sublet the bungalow for a month without permission.

Walt and Ginger were informed by their landlord that their option to purchase the bungalow they're renting has just been terminated. Which of the following things that can occur is likely to terminate an option to purchase? Ginger put up new curtains. They went on vacation and left the house empty for 12 days. Walt lost his job. They sublet the bungalow for a month without permission.

Roof

Water buildup, ice damming, and a fascia damaged by moisture are common ______ issues. Foundation Roof Chimney Window

Any material, adverse information that the licensee has actual knowledge of concerning the physical condition of the property

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 Any known or assumed information about a property Only information that would make the property sell more quickly Only information that the seller wants the licensee to share with prospective buyers

Final closing costs

What information would the Loan Estimate NOT provide to buyers under the TRID-required disclosures law? Loan payment schedule Final closing costs Loan fees Estimated closing costs

He only needs to disclose easements if they're known.

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 should require his seller to do online research in the county records database. 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.

Artificial attachments to land that include items such as fencing, buildings, and walkways

What are improvements with regard to property? Natural fixtures that are part of the land and that enhance its value Another name for a building permit The right to increase the value of a property Artificial attachments to land that include items such as fencing, buildings, and walkways

Websites, social networking, and email

What are the three areas of technology where licensees are most exposed to litigation risks? The MLS, email, and voice mail Presentation software, email, and word processing software Websites, email, and spreadsheets Websites, social networking, and email

Elements and units

What are the two categories of comparison when evaluating comparables to a subject property in the market comparison approach? General and detailed Broad and specific Components and measures Elements and units

A material fact may have more or less effect on a buyer based on the buyer's needs and values.

What is true about a material fact that a licensee must disclose? Material facts are only those that can be easily seen or discovered. A material fact may have more or less effect on a buyer based on the buyer's needs and values. All material facts are related to physical conditions. All parties considering the property would regard the material fact in the same way.

It limits the availability of the property for sale to those who are "pre-approved" by neighbors.

What makes a 'Choose Your Neighbor' marketing letter potentially discriminatory? It limits the availability of the property for sale to those who are "pre-approved" by neighbors. There's no requirement for the number of neighbors who receive the letter. It prevents illiterate neighbors from participating in selection of buyers. The letters don't allow neighbors to agree on the actual buyer.

The dominant estate owner takes action that shows a clear intent to stop using the easement.

What must happen for an easement to be terminated due to abandonment? The dominant estate owner takes action that shows a clear intent to stop using the easement. The owner of a servient estate buys the dominant estate property. The owner of the dominant estate finds an alternate route and no longer needs the easement. The owners of both estates decide not to use the easement.

Underground storage tanks

What property feature could lead to soil contamination? Brick pavers Multi-car garage Irrigation system Underground storage tanks

Seek a sale at the best price at terms acceptable to the seller.

What responsibility does the seller's agent have to the seller? Ensure the sale is profitable for the seller. Advocate for the seller and help present the property in the best light, even if it means covering up material defects. Advocate for and ensure the sale is profitable for the seller. Seek a sale at the best price at terms acceptable to the seller.

Timeshare

What type of estate involves 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 in one- to two-week intervals during the year? Apartment Timeshare Leasehold Lifetime

Title insurance

What type of insurance will protect a lender's collateral interest in a property that's being financed? Hazard insurance Collateral insurance Title insurance Mortgage insurance

Assessed value

What type of value is of interest to taxing authorities? Assessed value Insured value Value in use Investment value

Investment value

What type of value may consumers be interested in if they are looking for the potential rate of return? Insured value Assessed value Value in use Investment value

False or misleading

What types of email subject lines are prohibited by the CAN-SPAM Act? Include the subscriber's name Longer than 20 characters Shorter than five characters False or misleading

Substitution

What well-known economic principle says that a property's value is determined by what it would cost to purchase a similar property? Similar cost principle Conforming value Regression Substitution

A facility where unrelated adults with disabilities live

What's a group home? A home that's grouped closely to other dwellings for increased density Any multi-family dwelling A facility where unrelated adults with disabilities live An institution, such as a prison or mental health facility

A permanent land marker sometimes used in legal descriptions

What's a monument? A permanent land marker sometimes used in legal descriptions A point from which elevations are measured The subdivision of air above the land 43,560 square feet

An action to locate and notify all who may have some claim on the title, and determine the validity of all claims

What's a quiet title action? A type of title insurance that reimburses the policyholder if the neighborhood is noisier than normal A way to anonymously purchase property without filing the title or transfer on record A lien placed against a potential land owner for property purchased by another An action to locate and notify all who may have some claim on the title, and determine the validity of all claims

A 36-square-mile square formed in the use of the rectangular government survey system

What's a township? A 36-square-mile square formed in the use of the rectangular government survey system A permanent reference point used in the measurement of elevations A one-square-mile square formed in the use of the rectangular government survey system The point of beginning used in a metes and bounds survey

Discount point

What's an upfront charge to make up for the difference between the interest rate the borrower is paying and the rate the lender normally requires? Interest Usury Discount point Note

Trust account

What's another name for an escrow account? Locked account Trust account Savings account Closing fund

Chattel

What's another term for a trade fixture? Dowry Chattel Corporeal Appliance

A decrease in property value

What's depreciation? An increase in property value A refinancing strategy A decrease in property value Paying off of a loan over time

A fee paid to lenders for the use of their money

What's interest, as related to a mortgage loan payment? Random charges A fee to keep other borrowers from taking interest in your property and buying it out from under you A fee paid to lenders for the use of their money Extra money paid to cover any unexpected bank fees

Acceptance

What's it called when all parties sign a contract, but before the seller's acceptance is delivered to the buyer? Contract closing Acceptance Binding acceptance Exercise of an option

Loyalty

What's one of the most fundamental of all fiduciary duties, and is the one that underlies all other duties? Accounting Disclosure Loyalty Obedience

The earth's surface, extending downward to the center of the earth and upward to infinity, including permanently attached natural objects

What's the best definition of land? The earth's surface, extending downward to the center of the earth and upward to infinity, including permanently attached natural objects Real estate, plus all of the interests, benefits, and rights included in ownership Land, plus all things permanently attached to it, naturally or artificially Everything that's not real property

A title that is clear and free of encumbrances

What's the definition of a marketable title? A title that has been gifted by a relative A title that is about to go on the market A title that is clear and free of encumbrances A title that has been granted by public grant

$41,484 Solicitors may be charged as much as $41,484 for every email they send that violates the CAN-SPAM Act.

What's the maximum per-email fine you can be charged if you violate the CAN-SPAM Act? $41,484 $26,000 $12,000 $5,000

Three

What's the minimum number of business days prior to closing that lenders have to provide borrowers with the Closing Disclosure form? Two Three Four Five

Falsely inflated appraisal

What's the most common indicator of illegal property flipping? Underwriting hassles Violation of fair housing laws Falsely inflated appraisal Unrepresented seller

An ordinary life estate ends with the death of the estate holder; a pur autre vie life estate ends with the death of someone other than the life estate holder.

What's the primary difference between an ordinary and a pur autre vie life estate? A pur autre vie life estate ends within a specified time period; an ordinary life estate ends when someone other than the estate holder dies. An ordinary life estate ends with the death of the estate holder; a pur autre vie life estate ends with the death of someone other than the life estate holder. An ordinary life estate ends when the grantor dies; a pur autre vie life estate ends when the estate holder dies. An ordinary life estate ends within a specified period of time; a pur autre vie life estate ends when the estate holder dies.

To establish history of past ownership

What's the purpose of a chain of title? To determine whether encroachments exist and to determine the boundaries of the property To establish history of past ownership To insure the policy owner against financial loss if the title to the real estate has covered defects To establish proof of insurance

It protects the buyer against loss resulting from previously unreported title defects.

What's the purpose of title insurance? It protects the lender against any future default in the buyer's payment. It protects the property against future damage. It protects the buyer against unexpected expenses from any future improvements. It protects the buyer against loss resulting from previously unreported title defects.

Documents the type of and timeline for financing, and outlines what to do if financing falls through

What's the role of the mortgage contingency in a sales contract? Documents the type of and timeline for financing, and outlines what to do if financing falls through Describes the lender and interest rates the buyer will use when purchasing the property Describes seller financing options if the buyer isn't pre-qualified for a mortgage Documents the seller's credit rating and pre-approved purchase price

Redlining

What's the term for a lender refusing to lend in a specific area, often based on the area's minority make-up? Gerrymandering Steering Redlining Blockbusting

Metes

When Shauna looked at the legal description of the property she was interested in purchasing, she read the following: "Beginning at the corner of State Route 61 and Hallowell Road, north for 314 feet, then southwest for 193 feet." In this description, what does "north for 314 feet" represent? Benchmark Metes Bounds Monuments

The trustee holds the deed, and the lender holds the note.

When a deed of trust is used as a security instrument, who holds the deed and the note? The lender holds the deed and the note The trustee holds the deed, and the lender holds the note. The lender holds the deed, and the trustee holds the note. The trustee holds the mortgage and the note.

The lender holds the mortgage and the note.

When a mortgage is used as a security instrument, who holds the mortgage and the promissory note? The borrower holds the mortgage and the note. The lender holds the mortgage, and the borrower holds the note. The borrower holds the mortgage, and the lender holds the note. The lender holds the mortgage and the note.

Regression

When a property's value is suffering because the neighboring property is filled with trash, and the neighbor's home is in a state of disrepair, you have an example of ______. Bad Neighbor Syndrome Regression Substitution Progression

Lease duration

When considering buying property subject to an existing lease, it's critical for your client to clearly understand the lease terms, including the property management responsibilities, rent amount, renewal/purchase options, and the ______. Tenants' phone number Security deposit amount Lease start date Lease duration

Access to restrooms

When modifying commercial buildings to meet accessibility requirements, owners should focus their attention on these four areas: accessible approach and entrance, access to goods and services, ______, and any other necessary measures, such as access to public amenities. Improved acoustics Access to restrooms Sufficient cooling and heating Carpeted halls and stairways

Types of obsolescence

When using the sales comparison approach to value a property, all of these are categories of adjustments except ______. Market conditions Types of obsolescence Location Financing terms and cash equivalency

Special

When working with a client on a real estate sale, a real estate licensee is usually which type of agent? Designated Universal Special General

Exclusive right to sell

When working with a seller, you sign a listing agreement that provides you with 100% assurance that you'll receive commission, provided the property sells during the listing term. What type of listing agreement did you sign? Net listing Exclusive right-to-collect commission Exclusive right to sell Exclusive agency

Yes, the duty to account for transaction documents, funds, and property

When you represent a seller as a listing agent, do you owe any duties to buyer agents? Only if the agent works in your office Yes, the duty to account for transaction documents, funds, and property Yes, the same duties you owe to the seller Yes, the duties of loyalty, confidentiality, and reasonable skill and care

Federal Trade Commission Act

Which act created an agency to investigate antitrust practices? Sherman Antitrust Act Federal Trade Commission Act Clayton Act Attorney General Act

Housing for Older Persons Act of 1995

Which act states that communities and facilities that meet certain criteria for providing housing to older persons are legally exempt from the familial status discrimination? Federal Fair Housing Act of 1968 Fair Housing Amendments Act of 1988 Housing and Community Development Act of 1974 Housing for Older Persons Act of 1995

Department of Housing and Urban Development

Which agency enforces Title II under the Americans with Disabilities Act of 1990, when it relates to state and local public housing, housing assistance, and housing referrals? Department of Equal Opportunity Department of Civil Rights Department of Housing and Community Development Department of Housing and Urban Development

Income approach

Which approach to value is typically used for two- to four-family units? Sales comparison approach Income approach Cost approach Revenue approach

Indemnification clause

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 Time of performance clause Indemnification clause Severability clause

Multiple listing clause

Which clause in the listing agreement gives the listing broker the authority and obligates the broker to market the property to other brokers? Provisionary clause Broadcast clause Multiple listing clause Marketing clause

The seller specifies a price desired for the property and agrees to pay the broker any amount received more than that price.

Which of the following best describes a net listing? The seller and agent agree to split the profit from the proceeds of the sale. The seller works with many agents, and only the agent who procures the buyer is owed a commission. The seller specifies a price desired for the property and agrees to pay the broker any amount received more than that price. The seller reserves the right to sell the property and not have to pay a commission.

Discovery of hazardous materials on the project site

Which of the following can have an extremely adverse effect on the time and cost of a development project? CERCLA's policy of strict liability FHA's minimum building standards Discovery of hazardous materials on the project site Proximity of the project site to public transportation

A furnace or air conditioning unit that does not kick on when the temperature is adjusted

Which of the following can indicate issues with heating and cooling? Moisture in the basement Windows that won't open or close Consistent temperatures throughout the home A furnace or air conditioning unit that does not kick on when the temperature is adjusted

Geographic area developed in a community and identified by number

Which of the following describes a census tract? Subdivision blueprint Geographic area developed in a community and identified by number Plan that includes water usage, sewers, utilities, and fire and police support Land divided into lots for development

Creosote

Which of the following is a common chimney or fireplace problem? None of these Holes in the soffit Damage around the fascia Creosote

Keep the property in good repair

Which of the following is a mortgagor's responsibility? Assign the mortgage Keep the property in good repair Foreclose on the property if in default Charge late payment penalties

The zoning designation for the given property

Which of the following is a planning and zoning issue that most prospective buyers might need to know? How to get a home occupation permit How many members are on the zoning board The zoning designation for the given property When the town comprehensive plan will be updated

Promissory note

Which of the following is a promise on the part of the borrower to repay a certain sum of money to another party (the lender or holder of the note) under specified terms? Promissory note Deed of trust Mortgage lien Usury

Local governments and their planning boards control budgeting, site-plan review, and building codes.

Which of the following is a true statement about police power and public land use controls? Local governments and their planning boards control budgeting, site-plan review, and building codes. Police power is citizens' rights to police themselves. Planning, zoning, and subdivision development are primarily controlled at the state level. Government agencies may exercise police power only when it does not restrict the freedom of its citizens.

If there's no state or local building code to cover a situation, the national code applies.

Which of the following is a true statement regarding building code regulations? If there's no state or local building code to cover a situation, the national code applies. The building code provides the maximum standards for buildings. When state and federal building codes conflict, the less strict code prevails. States have the authority to change national building code requirements.

A sale in the area may prompt a reassessment, impacting new buyers.

Which of the following is a way in which property taxes could impact your clients? Tax abatements could harm buyers financially. Tax refunds are not possible if property tax deductions are taken. Neighbors may be jealous about favorable tax rates. A sale in the area may prompt a reassessment, impacting new buyers.

No yard work

Which of the following is an advantage of condominium ownership? No HOA dues No yard work No neighbors No shared walls

Jeff installed a sidewalk next to his driveway, six inches outside his property.

Which of the following is an encroachment? Jeff installed a sidewalk next to his driveway, six inches outside his property. The state took ownership of Dawn's property when no heirs could be located following her death. A path providing neighborhood access to a pond cuts through part of Bill's property. The city seized a formerly private parcel of land for public use.

Fannie Mae

Which of the following is an example of a government-sponsored enterprise (GSE)? Federal Reserve Federal Housing Finance Agency Ginnie Mae Fannie Mae

Acme Realty offers discounted services. Berringer Realty and Hawthorne Real Estate Group decide not to show any of Acme's listings, and to prohibit showings to Acme buyers to drive Acme out of business.

Which of the following is an example of group boycotting? Jamie purchases billboards in Peyton Heights and Crestview, but not in Sandlot Valley. Tara isn't happy with the service she's received when placing ads in a local publication. She decides to no longer advertise with them. Acme Realty offers discounted services. Berringer Realty and Hawthorne Real Estate Group decide not to show any of Acme's listings, and to prohibit showings to Acme buyers to drive Acme out of business. Penny Printing produces business cards. Unhappy with the quality they've received, Beta Brokerage has decided to no longer purchase their business cards from Penny Printing.

Deed

Which of the following is an instrument of conveyance? Promissory note Title insurance policy Deed Mortgage

They are the right to use the open space above buildings.

Which of the following is true about air rights? They cannot be bought or sold. They include mineral rights. They are the right to use the open space above buildings. They are the right to use the space directly below buildings.

Investors can depreciate an appreciating asset.

Which of the following is true about investors and tax depreciation? Investors are not allowed to take a business deduction for annual depreciation. Investors can depreciate an appreciating asset. Depreciation is not limited to investment properties. Most investors try to avoid depreciation.

Client data can be compromised if the brokerage's computer system is compromised.

Which of the following is true about reducing risks to computer systems? There is nothing a licensee can do to reduce risk to brokerage computer systems. It's a good idea to leave your computer unlocked. Client data can't easily be compromised through a brokerage computer. Client data can be compromised if the brokerage's computer system is compromised.

Conventional

Which of the following loans may require compliance with Appraiser Independence Requirements? Commercial VA FHA Conventional

A home where a homicide, suicide, or haunting occurred

Which of the following may be considered a stigmatized property? A home with no basement A home where a homicide, suicide, or haunting occurred A home that has been on the market for more than one year A home with a panic room

In both types of listings, the seller won't owe a commission if she finds the buyer herself.

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 will owe a commission to the broker that brings the buyer. In both types of listings, the seller is required to pay a commission to one or another broker. In both types of listings, the seller won't owe a commission if she finds the buyer herself. In both types of listings, the broker owns the commission regardless of who sells the property.

You must disclose all known environmental hazards for both residential and commercial properties.

Which of the following scenarios accurately represents your environmental disclosure responsibility as a real estate licensee? You must disclose all known environmental hazards for commercial properties only; residential disclosure is the seller's sole responsibility. You must disclose all known environmental hazards for both residential and commercial properties. You must disclose all known environmental hazards for residential properties only; commercial disclosure is the seller's sole responsibility. You must disclose all suspected environmental hazards for both residential and commercial properties.

A hail storm damaged some shingles last year.

Which of the following scenarios describes a condition that is adverse? The county offers a homestead exemption. The school across the street is adding full-day kindergarten next year. A hail storm damaged some shingles last year. The furnace is three years old.

The seller didn't disclose any leaks, but the licensee sees moisture on the basement floor.

Which of the following scenarios describes actual knowledge that a licensee must disclose? The licensee heard a rumor that the city may buy houses on the street next year to build a freeway ramp. The licensee learned that the property had a tax reassessment last year. There are community-wide rumors that the property in question is haunted. The seller didn't disclose any leaks, but the licensee sees moisture on the basement floor.

Results are often reviewed and approved by a community board.

Which of the following statements about the EPA's environmental impact study is true? An EIS is generally conducted in one step. The primary focus of an EIS is to perform cleanup for landfill areas that are being reclaimed. Results are often reviewed and approved by a community board. An EIS is only required for projects that are located near protected wildlife.

It doesn't extend to material facts relating to the property.

Which of the following statements about the fiduciary duty of confidentiality is true? It encompasses any and all information the client tells the agent, not just confidential information. It ends with the termination of the agency agreement. It doesn't extend to material facts relating to the property. It never conflicts with the duty of disclosure.

It's owed to other parties, not just to the agent's clients.

Which of the following statements about the fiduciary duty of disclosure is true? It only applies to the seller's agent. It requires the agent to disclose everything to all parties. It's owed to other parties, not just to the agent's clients. It's owed to the agent's clients only.

A legally binding, written contract between a property's potential buyer and seller

Which of the following statements best describes a sales contract? A legally binding, written contract between a property's seller and a listing agent A legally binding, written contract between a property's potential buyer and seller A legally binding, oral contract between a property's potential buyer and a listing agent A legally binding, oral contract between a property's potential buyer and seller

A home business would be considered an accessory use.

Which of the following statements is true about zoning classifications? A home business would be considered an accessory use. Condos are always commercial property. Multifamily housing is zoned commercial. A residential property may only have one use.

Property tax liens take priority over any and all other liens on the property in most states.

Which of the following statements related to the power of taxation is true? Property tax liens take priority over any and all other liens on the property in most states. If the property is foreclosed upon, property taxes are paid after all other creditors. Property tax liens take the lowest priority after all other liens on the property. Taxation is an unstable source of income.

The asset is worth less because it's deteriorating physically.

Which of the following would be a description of economic depreciation? The asset is worth more because of capital improvements. The asset is worth less because it's deteriorating physically. The owner/investor is making less income from the property than previously. Investors can take a business deduction for annual depreciation.

Get a low interest rate of 4.75% (4.925% APR) with as little as 10% down payment and a 30-year fixed rate with no points.

Which of the following would be an acceptable ad based on Regulation Z? Get a low interest rate of 4.75% with as little as 3% down. Get a low interest rate of 4.75%, with 85% loan to value. Get a low interest rate of 4.75% (4.925% APR) with as little as 10% down payment and a 30-year fixed rate with no points. Get a low interest rate of 4.75% on a monthly payment of $900.

As part of a comprehensive marketing strategy that doesn't limit or restrict potential buyers

Which of the following would make the 'Choose Your Neighbor' flier an allowable strategy for finding prospective buyers? As part of a comprehensive marketing strategy that doesn't limit or restrict potential buyers For rural properties greater than 20 acres For property located in a gated community With seller consent

A pool house connected to the house by a hallway

Which of these areas would be included in the livable area calculation? An attached garage A detached garage A pool house connected to the house by a hallway An unfinished attic area with seven-foot ceilings

An unfinished laundry area

Which of these areas would typically be excluded from a home's livable area calculation? A finished laundry area The bathrooms An unfinished laundry area A finished loft area with 9 foot ceilings

Marty is representing Dwayne in both the sale of his current home and the purchase of his new home.

Which of these circumstances does NOT require agent disclosure? Marty is representing Dwayne in both the sale of his current home and the purchase of his new home. As part of his corporation, Sean, a licensee, owns several investment properties. He's selling one. Megan has listed her brother's townhome for sale. Gary represents the buyer. He's a shareholder in the title insurance company the buyer has selected.

The seller will defend against all claims against the property's title.

Which of these guarantees is offered by a general warranty deed but not a special warranty deed? The seller owns the property (title). The seller is legally allowed to sell the property. The property is free of debt or other claims taken on by the grantor during the ownership period. The seller will defend against all claims against the property's title.

Encroachment

Which of these is NOT a right included in a real property owner's bundle of rights? Control Possession Encroachment Enjoyment

Jake's firm agrees to charge all clients a listing commission of between 2% and 2.5%. Any agreement (formal or informal) between competing firms to fix prices or standardize listing terms or commission splits, etc., is considered price fixing.

Which of these is NOT an example of price fixing? Jake's firm agrees to charge all clients a listing commission of between 2% and 2.5%. The brokerage firms that belong to a specific association agree to prohibit buyer commission rebates. Five local brokers agree to the same commission split with cooperating brokers. Two local firms agree to the same commission split between them and their associated licensees.

Delaney signed a buyer's representation agreement with Martha. After Delaney made an offer on a house, she changed her mind and terminated the agency agreement.

Which of these is NOT one of the ways in which an agency relationship may be terminated without penalty for either the agent or the principal? Phyllis listed her home with Brad. Brad put the property on the MLS, but Phyllis hasn't heard from him in more than two months. Delaney signed a buyer's representation agreement with Martha. After Delaney made an offer on a house, she changed her mind and terminated the agency agreement. Richard listed Ole's ski chalet for sale. Two weeks later, an avalanche destroyed the property. Martha listed Sonja's home for sale. Martha helped Sonja negotiate an offer and performed the other tasks required of her. The closing has taken place.

Real estate transactions aren't covered by consumer protection laws; agency law and disclosures provide the only protections.

Which of these is a NOT a reason why agency disclosure is mandated? Before buyer representation came into being, buyers were often unaware that the agent they worked with actually represented the seller. Consumers may compromise their bargaining position if they're not aware how agency relationships work. Consumers often don't realize that the agency relationship guarantees that they benefit from the agent's fiduciary duties. Real estate transactions aren't covered by consumer protection laws; agency law and disclosures provide the only protections.

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.

Which of these is an example of a sub-agency relationship? Blaine represents the buyer in a transaction with an unrepresented seller. 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. Aldrich accepts a designated agency appointment from his broker so his firm can represent both the buyer and the seller. Greta refers a buyer client to a more experienced colleague, asking for a referral fee from the colleague.

Monica used funds from the firm's trust account to pay her firm's rent.

Which of these is an example of conversion of funds? Soo Min transferred funds from her firm's trust account to the closing company's trust account in time for settlement. Tristan deposited a client's earnest money check into the firm's operating account. Monica used funds from the firm's trust account to pay her firm's rent. Marcus converted a CD to cash and deposited it in the firm's operating account.

Dean lists his property on August 1. After just a few showings, he accepts an offer on August 12. The closing takes place on September 22.

Which of these is an example of listing agreement termination by completion/performance? Wendall lists his property on January 1. His agent fails to show or market the property, and Wendall revokes the listing agreement on March 1. Dean lists his property on August 1. After just a few showings, he accepts an offer on August 12. The closing takes place on September 22. Margaret listed her property on April 1. She receives and accepts an offer on April 3. On closing day, the buyers back out. On December 15, Kevin lists his property for three months. On March 16, he declines to extend the listing agreement.

Researching the property tax amount that a client will pay on the home he's purchasing.

Which of these is an example of practicing within your area of competence? Informing your clients that the odd odor in the property is from an ongoing black mold issue. Recommending that your married clients take title to their new property as joint tenants. Researching the property tax amount that a client will pay on the home he's purchasing. Telling your client that the wood shavings outside the basement window means there are termites in the home.

Contribution

Which of these principles of value is related to how a change to a portion of a property impacts the value as a whole? Impact on value Contribution Plottage Progression

Are you aware of any structural issues with the property?

Which of these questions can an agent in a dual agency transaction answer without breaching her duties to either client? How much should my counter-offer to the buyer be? What repairs or concessions should I ask for from the home inspection? Are you aware of any structural issues with the property? What should I agree to fix from this list the buyer sent?

Kevin's MLS remarks note that the condo has the city's "most beautiful twilight view of downtown and the bay."

Which of these represents puffery? Kevin's MLS remarks note that the condo has the city's "most beautiful twilight view of downtown and the bay." Kim notes that the property "overlooks a serene, peaceful green space." It's next to a cemetery. Kari's ad boasts that the property is "just blocks from the proposed metro light rail station." Katherine's ad for her newly-renovated home states, "New from the studs up." Her carpenter might have a different story.

Bobby, the buyer, makes an offer on a house that doesn't meet the appraisal contingency. He cancels the sale.

Which of these scenarios is an example of rescission? A sales transaction falls through when Nora, the buyer, doesn't qualify for financing. Bobby, the buyer, makes an offer on a house that doesn't meet the appraisal contingency. He cancels the sale. Sally, the seller, sells her property to two different buyers. Both buyers sue Sally for specific performance. Buyer Alice decides to join the Peace Corps. She and the seller mutually agree to cancel the sale and the seller keeps Alice's earnest money.

The seller's agent fails to disclose a conflict of interest.

Which of these situations is addressed by the fiduciary duty of disclosure? The buyer fails to disclose to the seller his need to close on the property quickly. The seller's agent fails to disclose a conflict of interest. The buyer's home inspector refuses to share the inspection report with the seller. The seller refuses to complete a property disclosure form.

Jacob, a broker, acts as the dual agent and appoints Mark to represent the buyer and Todd to represent the seller in the same transaction.

Which of these situations is an example of designated (appointed) agency? Marvel's broker at Homeworks Realty appoints her as the buyer's agent in a transaction. Tim's broker at Great Homes Real Estate appoints him as the seller's broker in the same transaction. Meredith's broker appoints her to represent both the buyer and the seller in a single transaction. Jacob, a broker, acts as the dual agent and appoints Mark to represent the buyer and Todd to represent the seller in the same transaction. Michele is the firm's managing broker. She's the designated dual agent in all dual agency transactions.

Grayson tells his seller client, Geneva, that he'll reduce the listing commission if Geneva uses MBS Title Services to close her transaction.

Which of these situations represents an illegal tie-in arrangement? Monica agrees to rebate a portion of the commission earned when her buyer client buys a house if the client also lists her current home with Monica. Trina tells her buyer, Martin, that she won't perform any brokerage services for him unless he signs an agency agreement. Grayson tells his seller client, Geneva, that he'll reduce the listing commission if Geneva uses MBS Title Services to close her transaction. Martha gives her buyer clients a list of home inspectors and encourages them to call several who are both on and not on the list to find one who meets their needs.

Hunter, a mortgage broker, refuses to underwrite mortgage applications from applicants who are buying in specific neighborhoods.

Which of these situations represents the illegal practice of redlining? Arlo, a licensee, distributed a flyer in several neighborhoods warning of impending commercial developments that would negatively impact property values. Hunter, a mortgage broker, refuses to underwrite mortgage applications from applicants who are buying in specific neighborhoods. Jaime is working with Korean clients. He's focusing on homes in Korean communities because he thinks his clients will be more comfortable there. Eunice refuses to allow her agent to show her house to families with children.

A promissory note is a negotiable instrument and can be transferred to a secondary holder who has the right to enforce the note's terms.

Which of these statements about the promissory note is true? A promissory note isn't transferable, so it must be held by the original lender until paid in full. A promissory note serves as collateral for a mortgage loan. A promissory note is a negotiable instrument and can be transferred to a secondary holder who has the right to enforce the note's terms. A promissory note isn't a legal document.

A fair housing specialist will review the complaint.

Which of these statements best represents what happens after a federal fair housing complaint is made? A fair housing specialist will review the complaint. FHEO will contact the alleged perpetrator to gather information. An official housing discrimination complaint will be filed, and a fair housing specialist will be assigned to the case. HUD will review the complaint to determine if it's valid.

Tell parties to the transaction that she's a licensee when she's buying a property for herself.

Which of these tasks is a licensee required to perform based on her fiduciary duties? Indemnify her seller client from damages from failing to disclose a material defect. Provide advice to her clients regarding how to take title to their property. Reimburse her state's recovery fund for damages paid out on her behalf. Tell parties to the transaction that she's a licensee when she's buying a property for herself.

Ensure that the buyer receives copies of all signed paperwork.

Which of these tasks must a licensee perform for her buyer client? Explain to the buyer that there's really no need to review transaction documents because they're all standard. Ensure that the buyer receives copies of all signed paperwork. Explain to the buyer how to deposit the earnest money into the seller's personal checking account. Advise the buyer on how to get the seller to come down on the asking price.

A verbal lease agreement Martha has with her neighbor who leases Martha's garage

Which of these will a title insurance policy on Martha's property exclude on the schedule of exceptions? A mechanic's lien recorded by A1 Siding and Windows A verbal lease agreement Martha has with her neighbor who leases Martha's garage Last year's unpaid property taxes The current year's unpaid property taxes

When asked by the buyer's agent if the seller was firm on his price, Margo said, "Everything's negotiable," and winked at the other agent.

Which of these would be a breach of Margo's fiduciary duty of confidentiality? Margo told her seller client Troy the percentage commission split she gets from her broker. When asked by the buyer's agent if the seller was firm on his price, Margo said, "Everything's negotiable," and winked at the other agent. Margo told a potential buyer that the city council was considering rezoning the area around the property to commercial/light industrial. Under court order, Margo revealed conversations about the financial status of her previous client.

The grantor is not mentally competent.

Which of these would void a deed intended to convey property? The grantee is not mentally competent. The transfer includes no monetary consideration. The grantor is not mentally competent. The grantee's signature is not acknowledged.

Testamentary trusts do not avoid probate.

Which one of the following statements about testamentary trusts it true? The costs of administering a testamentary trust is not borne by the beneficiaries. Testamentary trusts do not need to be reviewed by an attorney. Like living trusts, testamentary trusts avoid probate. Testamentary trusts do not avoid probate.

Inform sellers of their responsibility to make all required property condition disclosures.

Which one of the following tasks must a licensee perform for seller clients? Set the listing price of the property based on comparables. Tell the sellers how to deposit the buyer's earnest money into their personal checking account. Inform sellers of their responsibility to make all required property condition disclosures. Assist the seller in finding someone who can effectively market the property.

Termination of co-ownership by partition

Which one of the following types of ownership termination allows each tenant to have a specific, divided portion (partition) of the property exclusively? Termination by division Termination of estate in severalty Termination of co-ownership by partition Termination of joint tenancies

Corrie shows Marvin several properties and prepares CMAs for each. She assists him in making an offer on one.

Which one of these is an example of the doctrine of estoppel? Josie represents Carmine in her search for a rural property. Josie shows Carmine a property that's just perfect, but she never hears from Carmine again. She then discovers that Carmine bought the property directly from the seller. Corrie shows Marvin several properties and prepares CMAs for each. She assists him in making an offer on one. He becomes difficult to work with, and she then says she's not his agent because they don't have a signed agency agreement. Tonya tells Kinsey that she's a licensed agent and proceeds to represent Kinsey as a buyer's agent. Kinsey later discovers that Tonya isn't licensed. Roark tells all his buddies at coffee that he's getting $600 a month rent out of his old barn. His best friend just shakes his head, knowing that Roark is only getting half that amount.

An agent from one firm acts as the agent for the buyer

Which one of these is the best example of single agency? Two agents from one firm, where one acts as an agent for the buyer and the other is the agent for the seller An agent from one firm acts as the agent for the buyer Two agents from different firms, where one acts as a sub-agent for the other A broker acts as a dual agent to one party only

Joint tenancy

Which ownership type is defined by four unities: time, title, interest, and possession? Freehold estate Tenancy by the entirety Tenancy in common Joint tenancy

Immobility

Which physical characteristic of land addresses the concept that the geographic location of a piece of land is fixed and can never be changed? Immobility Uniqueness Indestructibility Situs (location)

Indestructibility

Which physical characteristic of land addresses the concept that while improvements may deteriorate over time, the land itself cannot be destroyed? Immobility Uniqueness Indestructibility Permanence of investment

Possession

Which residential sales contract provision specifies the date by which the buyer will have unfettered access to the property? Inspection Possession Property Fixtures and personal property

No level of it is considered safe.

Which statement about asbestos is true? It can be safely removed by homeowners. It's harmful only if left in place. It's not harmful at low levels. No level of it is considered safe.

It doesn't extend to material facts relating to the property.

Which statement about the fiduciary duty of confidentiality is true? It never conflicts with the duty of disclosure. It doesn't extend to material facts relating to the property. It ends with the termination of the agency agreement. It encompasses any and all information the client tells the agent, not just confidential information.

His firm and the state permit it and he obtains the proper consent.

Which statement best describes the criteria that would permit Tristan to legally engage in dual agency? His firm and the state permit it. His firm and the state permit it and he obtains the proper consent. His firm permits it and it's an inadvertent dual agency situation. The state permits it and he discloses the dual agency to all parties.

Recording the deed provides constructive notice of the property sale.

Which statement most accurately describes the type of notice provided by recording a change of ownership document? Recording the new owner's title policy serves as constructive notice of the sale. Recording the promissory note provides constructive notice of the property sale. Recording the deed provides actual notice of the property sale. Recording the deed provides constructive notice of the property sale.

Market allocation

Which type of antitrust violation occurs when real estate firms agree to divide their market so they don't compete with one another? Tie-in arrangements Price fixing Market allocation Group boycotting

Tie-in arrangement

Which type of antitrust violation occurs when the providing of one service is made dependent on the customer or client obtaining another recommended service? Group boycotting Market allocation Price fixing Tie-in arrangement

Fee simple absolute

Which type of estate gives the owner condition-free interest in a property? This type of estate conveys the highest possible interest. Fee simple defeasible Fee complete Free and clear Fee simple absolute

Warm light switches might mean there is an electrical problem.

While showing your buyers through a home, you flipped on the light in the powder room and were concerned because the light switch felt warm. Why is this a concern? Warm light switches might mean there is an electrical problem. Warm light switches might mean the house doesn't cool well. Warm light switches might mean the house doesn't heat well. Warm light switches might mean there is a structural problem.

You are only liable for disclosing known hazards, not suspected ones.

While walking through your seller's commercial property prior to listing it, you noticed that the soil is a strange color, and that there are some solid deposits in the soil toward the back of the property. You recommended that the seller have the soil tested for the presence of any sort of hazardous material. Which of the following is true? The seller has to disclose hazards because it's a commercial property. You are only liable for disclosing known hazards, not suspected ones. Your seller is required to pay for any tests that you recommend. You are liable for disclosing suspected hazards to all parties.

$5,430

Whitney and Justin are about to close on their refinance, and their loan amount is $362,000. They are paying a 1.5% origination fee. How much will their origination fee be? $1,500 $5,430 $5,100 $6,200

Less creditworthy borrowers

Who does the subprime market cater to? Investors High-wealth individuals Property managers Less creditworthy borrowers

Property owners and property managers

Who is responsible for ensuring accessibility requirements for a commercial property are met? Property owners only Property managers only Property inspectors only Property owners and property managers

Certified appraiser

Who typically performs an appraisal? Real estate licensee Inspector Certified appraiser Tax assessor

Real estate licensee

Who typically prepares a CMA or a BPO? Appraiser Inspector Real estate licensee Loan servicer

They can rust and cause leaks and low water pressure.

Why are galvanized pipes a problem in older homes? They indicate the heating and cooling system(s) are outdated. They are out of date and can lead to a variety of electrical problems. They can rust and cause leaks and low water pressure. They are not a problem.

Borrowers who can't afford loan payments may have taken out other loans against the property.

Why is a foreclosure more likely to have title issues than a non-foreclosure? Lenders don't take appropriate precautions to maintain clear title. Borrowers who can't afford loan payments may have taken out other loans against the property. Borrowers who are in foreclosure are permitted to acquire unrecorded liens. Lenders are permitted to place secondary liens on property that's entering the foreclosure process.

It gives the buyer a snapshot in time of the home's condition.

Why is a home inspection recommended? It helps the buyer identify cosmetic changes that must be made. It's free to the buyer. It's required by law for most residential transactions. It gives the buyer a snapshot in time of the home's condition.

Both easements and encroachments affect the property's lot size, enjoyment, and use, which can affect a property's value.

Why is it important for a buyer to know if any easements or encroachments exist on a property? Both easements and encroachments are illegal. The buyer could end up in court. Both easements and encroachments affect the property's lot size, enjoyment, and use, which can affect a property's value. The buyer will have to remove these before the property can be re-sold. It helps determine special assessment levies.

It helps ensure buyer loyalty.

Why might a licensee want a buyer to sign a buyer representation agreement? It's required by law. It will ensure that he'll receive the standard commission rate. It helps ensure buyer loyalty. It provides the agent with bragging rights.

Thieves may see this as an opportunity to enter the house unseen.

Why should you avoid describing a property as "secluded" when marketing through a social network? Most homebuyers are interested in being part of a community. Everyone defines secluded differently, so it isn't specific enough. Thieves may see this as an opportunity to enter the house unseen. Property descriptions should focus more on the home, not its surroundings.

It's owned as an estate in severalty.

Widget Corporation just bought land on which it plans to build a new manufacturing facility. How is the land owned? There isn't enough information given to tell. It's a joint tenancy. The land is held as a tenancy in common. It's owned as an estate in severalty.

Attachment

Will was sued for damages related to a car accident in which he was involved last year. As part of the proceedings, the court placed a lien against his primary residence. What type of lien is this? Attachment Mechanic's General Voluntary

Cost to build an exact replica of the subject, with the same materials and deficiencies

With the cost approach to value, what is the reproduction cost? Cost to build a functionally equivalent improvement Cost to build an exact replica of the subject, with the same materials and deficiencies Cost to buy the property Cost of the materials used in construction

Easement by necessity

Without this easement—usually involving access to a road—the owner requiring the right of passage would be landlocked. Easement appurtenant Easement by prescription Easement by necessity Easement in gross

Whether or not the addition was permitted

You're showing your buyers a house that clearly has a second-story addition. What important thing do you need to find out from the sellers? How much the seller's heating and cooling bills went up after the addition was put on Whether or not the materials used match the original construction Whether or not the addition was permitted Whether or not a licensed general contractor did the work

$720

You're working with a buyer who's purchasing a home appraised at $80,000. The buyer is obtaining a 90% loan, and the lender will charge a one point origination fee at closing. How much will the loan origination fee be? $712 $720 $728 $800

$875

You're working with buyers who are pre-approved for a loan of up to $200,000. Assuming they lock in a 5.25% interest rate at closing, how much of their first payment will go toward interest? $824 $825 $874 $875

Addendum

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 Annotation Amendment Appendix

Ensure that Katrina knows that not all contingencies have been cleared.

Your buyer Katrina is ready to close on her new home, but when you checked yesterday the seller still hadn't dealt with the foundation issue that the inspector found. What is your responsibility at this point? Ensure that Katrina knows that not all contingencies have been cleared. Threaten the seller's agent with a lawsuit if the problem isn't quickly fixed. Make the seller fix the foundation issue. Report the seller and the seller's agent to the real estate commission.

She'll pay it at closing.

Your buyer client, Christine, asks you when she'll have to pay the transfer tax. What do you tell her? She'll pay it when the down payment is made. She'll pay it at closing. She'll pay it when property taxes are assessed. She'll pay it when the seller accepts Christine's offer.

$4,680 A 60% LTVR means that Max is financing 60% of his purchase of $520,000, which equals $312,000 ($520,000 x 0.60). The loan origination fee is 1.5% of the financed amount: $312,000 x 0.015 = $4,680.

Your buyer client, Max, just signed a purchase agreement for a $520,000 home. He has a 60% LTVR, and his lender's charging a 1.5% loan origination fee. What loan origination fee can Max expect to pay at closing? $4,200 $4,680 $2,200 $3,120

You need to communicate to the listing agent that the buyers are requesting regrading.

Your buyer clients Sylvie and Daryl reviewed their inspection report and decided that they would address small repairs themselves, but they want the seller to have regrading done to direct water away from the house. What is your responsibility at this point? You should help the buyers gather tools and materials for the small repairs. You must identify three potential contractors from whom the sellers can select. You need to communicate to the listing agent that the buyers are requesting regrading. You need to send the report to the sellers and ask them what they'd be willing to fix.

Equal Credit Opportunity Act The Equal Credit Opportunity Act lists protected classes against which lenders may not discriminate when making credit available. You should be aware of the rules and notify your clients if the rules have possibly been broken.

Your buyer clients, the Thompsons, told you about a problem they ran into with the lender that handled their mortgage. The Thompsons, who are African American, were given less favorable loan terms than a white couple they know who used the same lender. You know the Thompsons have excellent credit. Which act should you make them aware of? Home Mortgage Disclosure Act Consumer Credit Protection Act Community Reinvestment Act Equal Credit Opportunity Act

Lead

Your buyers love the 1891 Victorian they have under contract, but they want to get both the water and the paint tested as soon as possible. What are they testing for in both water and paint? Radon Asbestos Mold Lead

No, since the sales price is less than $250,000.

Your client is purchasing a single-family home with a conventional loan. The listing price is $150,000. Does this situation require a licensed or certified appraiser? Yes, all property transfers require an appraisal. Yes, properties with sales prices of less than $175,000 require a certified appraiser. No, since the sales price is less than $250,000. No, since conventional financing does not require an appraisal.

Yes, it's required.

Your client is purchasing a single-family home with a conventional loan. The listing price is $380,000. Does this situation require a licensed or certified appraiser? Yes, it's required. No, it's not required. It may be required, depending on in which state the property is located. It's at the seller's discretion.

Unless stated otherwise in the lease, the existing tenants usually have the right to retain possession of a property, even if it's sold during their lease term.

Your client, Darnell, is interested in buying a rental property that has current tenants. He plans to rent the property to friends the month after he buys it. Which of the following statements is true and could affect Darnell's decision to buy the property? As the new owner, Darnell can change the lease term so that the current tenants have to leave 30 days before his friends to move in. As the new owner and landlord, Darnell has the right to terminate the lease so his friends can move in. If the existing tenants pre-paid the rent for a year to the former owner, they will also have to pay rent to Darnell. Unless stated otherwise in the lease, the existing tenants usually have the right to retain possession of a property, even if it's sold during their lease term.

Keep records of your recommendations and a written response from Eric.

Your client, Eric, is interested in purchasing an industrial property to start a new business. You've recommended that soil, air, and water testing be done, but Eric is on a tight budget and doesn't feel these tests are necessary. What should you do? Perform the tests yourself. Support Eric in his decision and do nothing further. Keep records of your recommendations and a written response from Eric. Refuse to be a part of the transaction.

39 years

Your client, Joseph, has a commercial income-producing property. How long does he depreciate this property? 27.5 years 39 years Indefinitely Zero years (commercial properties cannot be depreciated)

$1,073.64

Your clients are looking at buying a $200,000 property with a 30-year loan at a 5% interest rate. How much would their principal and interest payment be per month? Plug in the numbers using the amortization chart in your resources see what the payment per month would be. Remember: The monthly payment multiplier is per $1,000 of the mortgage. $1.347.91 $1,296.21 $1,073.64 $1,001.32

$2,400 $160,000 x .75 = $120,000 (the loan amount after their 25% down payment). Take $120,000 ÷ 1 (point) = $1,200. 2 points then would be $1,200 x 2 = $2,400.

Your clients are purchasing a $160,000 home. If they have a down payment of 25% and the bank charges two points at closing, how much are they paying in points? $2,475 $2,450 $2,400 $2,350

Progression

Your neighbors build a high-quality addition to their home, increasing its value compared to your own home's value. Because of this, you notice a bump in your property value. Which economic principle is at work here? Conditional value Regression Price bump Progression

No, his fiduciary duty is to his own client. The buyer's agent must be responsible for advising on a fair price for the property.

Zack represents a seller and receives an offer through another agent. The offer is higher than the listing price. The property is already listed at a very high price, and no other offers have been received. Is Zack obligated by his duties to the other party to disclose that the offer is too high? Zack can request that both parties consent to dual agency so that he can negotiate an honest price that will be fair to all. No, his fiduciary duty is to his own client. The buyer's agent must be responsible for advising on a fair price for the property. No, but Zack should honor his duty to all parties by asking his client to decline the offer. Yes, Zack must be honest and fair with all parties in the transaction.

Plottage

______ is an increase in property value caused by the joining of two neighboring parcels of land. Plottage Progression Anticipation Contribution

Competition

______ is the principle that the more similar properties there are on the market, the lower the price will be driven. Conformity Contribution Competition Plottage

Easements

______ provide a limited right to use a property for a specified purpose. Easements Shared structures Encroachments Setbacks

Conformity

______ says that value is created and maintained when the characteristics of a property fit in with its surroundings. Anticipation Contribution Conformity Substitution