Real Estate Missed Questions

One of the requirements for a valid contract known as a mutual agreement is also called a o o o o meeting of the minds. bilateral contract. dual agency. mutual rescission.

meeting of the minds.

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 2,400 2,850

1,425 Only finished above-ground space should be counted in Bonnie's MLS listing. That means the square footage of the upper floor plus the main floor (minus the unfinished laundry area). Bonnie should report 1,425 square feet (450 + 1,200 - 225).

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

Competition

What factors does the underwriter consider in reviewing a mortgage loan application? Capacity, collateral, and criminal record Credit, capacity, and collateral Credit, capacity, and collections Credit, credentials, and collateral

Credit, capacity, and collateral Underwriters review the borrowers credit score and history, capacity to repay the loan, and collateral.

What's the relationship between the Loan Estimate and the Closing Disclosure? Lenders issue the Loan Estimate to verify the figures detailed on the Closing Disclosure. Lenders issue the Loan Estimate within three days of receiving an application, and Closing Disclosure figures should be similar to the Loan Estimate. Loan Estimate figures should match Closing Disclosure figures exactly. The Closing Disclosure outlines the lender's responsibilities to the borrower.

Lenders issue the Loan Estimate within three days of receiving an application, and Closing Disclosure figures should be similar to the Loan Estimate. Lenders first issue the Loan Estimate; borrowers can compare the Closing Disclosure, issued before closing, to the estimate's figures.

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

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

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

Mindy Licensees shouldn't decide the amount of earnest money a buyer should offer or that a seller should accept. They can discuss ordinary practice, but the seller may state a minimum acceptable amount, and a buyer can determine the amount to offer.

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

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. Sub-agency refers to a licensee from one firm who brings an unrepresented buyer for a property listed by another firm. The sub-agent represents the seller in this situation.

When a buyer finances a newly built home with a Federal Housing Administration loan, what does the FHA require the builder to do? Create a fund equaling 20% of the home's cost set aside to cover construction defects for the next 10 years Provide a builder-backed home warranty Provide the buyer with a 30% discount on materials and labor for home repairs Purchase a third-party home warranty to protect the buyer

Purchase a third-party home warranty to protect the buyer

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

No, because the listing agreement is contractually binding. The listing agreement is contractually binding but may be terminated without penalty under specific circumstances. The seller finding a buyer isn't one of those circumstances if the listing is an exclusive right-to-sell agreement.

Victor's family has always owned this particular lake house. When he was little, he remembers the "beach" being no more than four feet wide before the waterline. Now Victor brings his own children to the lake house, but the beach is almost seven feet wide. What natural process could explain the beach being bigger? Avulsion Erosion Reliction Riparian

Reliction Reliction is the process by which water gradually recedes, which reveals new land.

Your clients closed on their property yesterday, but you still have some paperwork that you need to deliver to them as soon as possible. Under which fiduciary duty are you acting? The duty of accounting The duty of confidentiality The duty of disclosure The duty of obedience

The duty of accounting The duty of accounting may continue even after the transaction closes. The agent must account for any documents or money belonging to the client until it is delivered to the appropriate party.

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

The lender holds the mortgage and the note. The note and mortgage are the lender's leverage to foreclose in the event of default.

Which of the following is a typical accrued adjustment? Heating oil in the tank Prepaid taxes Unpaid real estate taxes Utilities billed and paid in advance

Unpaid real estate taxes Accrued expenses are those that the seller owes at the day of closing but that the buyer will eventually pay, such as unpaid real estate taxes.