Real Estate National Exam
If your clients are in a competitive bidding situation and want to include multiple contingencies in their offer, what should you say to them? "Contingencies kill deals." "Great idea. This will help our offer stand out." "Let's evaluate which contingencies matter most to you and consider omitting the rest." "To be competitive, you should remove all contingencies."
"Let's evaluate which contingencies matter most to you and consider omitting the rest."
The gross income multiplier for an area is 12x. If the estimated annual rent is $10,000, what's the property's estimated value? $10,000 $100,000 $12,000 $120,000
$120,000
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? Roberto's closing costs will be $7,050 ($235,000 x 0.03) and commission will be $14,100 ($235,000 x 0.06). If you subtract all the costs given ($7,050, $14,100, plus the $800 furnace, and the $48,750 mortgage payoff) from the $235,000 price, you end up with $164,300. $164,300 $164,771 $167,696 $168, 688
$164,300
A buyer is purchasing a property for $400,000. His lender's loan-to-value ratio is 80%. How much is the buyer financing? $320,000 $360,000 $400,000 $80,000
$320,000
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. What's the total amount the borrower will pay back over the life of the loan? $250,000.00 $30,640.65 $367,687.80 $735,375.60
$367,687.80
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? At a rate of $0.115 per $100, the mortgage recording tax amount is $575 ($500,000 x 0.00115). $115 $500 $570 $575
$575
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
$6,000
Yasmin listed a house at a 6% commission rate, and it just sold for $463,500. Her brokerage and the buyer's agent's brokerage split the commission equally between them. Then Yasmin, who has a 60/40 commission split with her broker (Yasmin gets the higher split), took her check to the bank. How much did Yasmin earn from this transaction? The total commission from the sale was $27,810 ($463,500 × 0.06). Split with the buyer's broker, Yasmin's firm's share is $13,905 ($27,810 ÷ 2). Yasmin's 60% share of the firm's commission works out to $8,343 ($13,905 × 0.60). $5,562 $6,909 $8,343 $9,200
$8,343
Which one of the following is an example of group boycotting? Acme Realty offers discounted services. Berringer Realty and Hawthorne Real Estate Group decide not to show any of Acme's listings and prohibit showings to Acme buyers to drive Acme out of business. Jamie purchases billboards in Peyton Heights and Crestview, but not in Sandlot Valley. Penny Printing produces business cards. Unhappy with the quality it received, Beta Brokerage has decided to no longer purchase their business cards from Penny Printing. Tara isn't happy with the service she received when placing ads in a local publication. She decides to no longer advertise with it.
Acme Realty offers discounted services. Berringer Realty and Hawthorne Real Estate Group decide not to show any of Acme's listings and prohibit showings to Acme buyers to drive Acme out of business.
What does the FTC consider to be a deceptive ad? Any ad likely to mislead consumers acting reasonably under the circumstances Any ad or business practice that causes or is likely to cause injury Any ad that makes a health claim Any ad with a claim that's clearly not true
Any ad likely to mislead consumers acting reasonably under the circumstances
Which type of estate gives the owner condition-free interest in a property? This type of estate conveys the highest possible interest. Fee complete Fee simple absolute Fee simple defeasible Free and clear
Fee simple absolute
The Nicholsons just bought a mid-century modern home that will require lead paint abatement. Tom and Genna, their three-year-old daughter Grace, and Genna's mom Pat are waiting to move into the split level until the abatement is complete. Who would be at the most risk of adverse lead effects if they moved in before the abatement was finished? Genna Grace Pat Tom
Grace
The fibers of what material are dangerous when inhaled because they can lodge in the lungs and intestines, causing cancer? Asbestos Lead paint Radon Silicone
Asbestos
Citytown officials know that they have an abandoned factory site that has been identified for cleanup under CERCLA. When city officials tried to trace the ownership of the property, they found several shell corporations but can't determine which individual or corporate entity actually owns the property. What is a likely outcome of this situation? Citytown will apply to the CERCLA trust fund for cleanup costs. Citytown will bill the EPA for cleanup costs. Citytown will end up paying for cleanup. The factory site won't be cleaned up and will sit empty.
Citytown will apply to the CERCLA trust fund for cleanup costs.
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? Community Reinvestment Act Consumer Credit Protection Act Equal Credit Opportunity Act Home Mortgage Disclosure Act
Equal Credit Opportunity Act
A calculation that describes the amount being borrowed compared to the value of a property is called ______ ratio. Appraisal Housing Loan-to-value Total debt
Loan-to-value
Lyle is a developer who placed a number of restrictions on the Happy Valley subdivision when he built it in 2003. Sara bought a home in Happy Valley in 2009 and was surprised to learn that storage sheds weren't allowed. Now Sara has noticed that sheds are popping up here and there throughout the neighborhood, and she puts up a shed of her own knowing she won't face a penalty. Which of the following is most likely to be true? Lyle set up the restriction to expire after a certain number of years. The homeowners have all applied for waivers to the existing restrictive covenant. The homeowners so desperately need storage that they're willing to face fines or legal action. The sheds are made of a new material that hadn't been invented or prohibited in 2003.
Lyle set up the restriction to expire after a certain number of years.
Marcus, a listing agent, told a potential buyer that his seller client's property had no flooding issues, though the seller had mentioned water in the basement a few years back when there was a particularly heavy rainy season. Which of these statements is true? Marcus committed intentional misrepresentation because he knew his statement was false. Marcus committed unintentional misrepresentation. Marcus didn't commit misrepresentation, because the property current has no flooding issues. Marcus is guilty of puffery.
Marcus committed intentional misrepresentation because he knew his statement was false.
What is the federal program that was created to help mitigate future flood losses across the country? Federal Flood Loss Prevention Program (FFLPP) Federal Flood Loss Program (FFLP) National Flood Insurance Program (NFIP) National Flood Mitigation Fund (NFMF)
National Flood Insurance Program (NFIP)
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 Extras Nets Utilities
Nets
The best way to start comparative market analysis data collection is to use properties that sold within which timeframe? 18 to 24 months ago Between two and three years ago In the last 12 to 18 months No later than three to six months ago
No later than three to six months ago
Following all of the client's lawful instructions describes which fiduciary duty? Disclosure Loyalty Obedience Reasonable skill and care
Obedience
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? Dower and curtsey Homestead Ordinary Pur autre vie
Ordinary
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? Graduated Gross Net Percentage
Percentage
Nevina may be creating an implied agency agreement if she does which of these? Contacts a mortgage broker to find out what first-time homebuyer programs are available Gives her neighbor a tour of another neighborhood home that's on the market Performs a CMA for an acquaintance and provides advice on setting a listing price based on other comparable properties in the area Speaks to a local civic club about the homebuying process
Performs a CMA for an acquaintance and provides advice on setting a listing price based on other comparable properties in the area
The fewer properties on the market, the greater the scarcity. What's the effect on prices? Prices are pushed downward. Prices are pushed upward. Prices remain the same. There's no correlation between scarcity and price.
Prices are pushed upward.
Which of the following statements related to the power of taxation is true? If the property is foreclosed upon, property taxes are paid after all other creditors. Property tax liens take priority over any and all other liens on the property in most states. Property tax liens take the lowest priority after all other liens on the property. Taxation is an unstable source of income.
Property tax liens take priority over any and all other liens on the property in most states.
Which of the following situations may result in inverse condemnation? Property taxes rise because of an increase in property value. Property values decrease because adjacent property was rezoned. Property values decrease because the property was rezoned. The government takes private property for public use and compensates the owner.
Property values decrease because adjacent property was rezoned.
The Hendersons don't have enough money to make the full 20% down payment their institutional lender requires. To close the sale, the seller is willing to finance a loan for the amount between the home's list price and what the institutional lender is willing to loan. What's this type of financing called? Equity mortgage Purchase agreement Purchase money mortgage Seller-insured loan
Purchase money mortgage
According to UETA, an electronic signature is defined as "an electronic sound, symbol, or process attached to or logically associated with a(n) _________ and executed or adopted by a person with the intent to sign." Computer Email Real estate broker Record
Record
Which legal description method is regulated by the U.S. Department of the Interior's Bureau of Land Management? Governmental Lot and block Metes and bounds Rectangular government survey
Rectangular government survey
A property's value is dropping because the neighboring property's yard is filled with trash. What's this an example of? Depreciation Progression Regression Substitution
Regression
Which of the following is a buyer's agent's task or duty? Advocating for the seller Negotiating for the seller Representing the buyer's interests Reviewing transactional documents with the seller
Representing the buyer's interests
Which of these is NOT an example of a group boycott? 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 so they can drive Acme out of business. Deb, a licensee, is unhappy with the marketing materials a local company produced. She shares her concerns with Irving, a colleague, and they agree to avoid doing business with this company—and to share the news with other colleagues. Sean and the associated brokers in his firm agree to purchase their marketing materials from a single supplier so they get a quantity discount. Several brokerages in a certain area agree to stop running advertisements in a local publication.
Sean and the associated brokers in his firm agree to purchase their marketing materials from a single supplier so they get a quantity discount.
In full seller disclosure states, whose responsibility is it to fully disclose all items on a seller disclosure form and any known material defects not listed on the form? Appraiser Buyer Lender Seller
Seller
Jean is a licensee for At Home Realty. She chooses her own schedule, sets her own sales goals, and is compensated based on commission. She must complete three training courses each quarter and the required number of CE hours to maintain her license. She must belong to the local REALTORS® association. The firm doesn't pay for employment taxes for Jean. She receives no insurance or other benefits. Which of these factors might cause the IRS to classify Jean as an employee instead of an IC? She must belong to the local REALTORS® association. She must take a required number of continuing education hours. She must take three training classes through the firm. She receives no benefits from the firm.
She must take three training classes through the firm.
Adamsburg, a bedroom community outside the city, is growing by leaps and bounds. There's been a boom in the number of children under age 12. Mia wants to open an in-home daycare, but she lives in a neighborhood that isn't zoned for home occupations. She applied for a/n _________ and, after a public hearing, was granted one to operate the daycare. Area variance Moratorium Special use permit Use variance
Special use permit
The Shores are in the process of buying a beautiful 3,000-square-foot home from the Bishops. They've completed all the required paperwork on their loan application. Mary's analyzing the package to determine their ability to repay the loan. She examines the property's value, the property type, and the loan-to-value ratio, among other things. Her recommendation is that the Shores' loan application be approved. What is Mary's role? Member of the loan committee The seller The seller's real estate agent The underwriter
The underwriter
Charlie rented a single-family residence from Hal and Mary. The lease specifies that Charlie can't conduct any type of business out of the property. Which clause includes this prohibition? The additional provisions clause The demising clause The prohibitions clause The use clause
The use clause
A _______ is a piece of real estate owned by multiple unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit based on the specific terms of a timeshare agreement, usually in one- to two-week intervals during the year.\ Campground membership Timeshare estate Timeshare use Vacation ownership
Timeshare estate
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 increase density in surrounding areas To increase taxes To limit overgrowth
To limit overgrowth
Which of the following is one reason a lender might charge a prepayment penalty? Because the lender is a subprime lender To cover the costs of processing an early payoff To deter buyers from ever paying off their mortgage To recover the money lost in anticipated interest
To recover the money lost in anticipated interest
Managing broker Todd is often extremely busy supervising his brokerage and training new licensees. He doesn't have time for his own clients, so he frequently sends his wife Cindy to meet with clients to sign transactional paperwork. Cindy doesn't hold a real estate license but she does have a power of attorney (POA) for Todd. All fees are paid to Todd. What is the issue with Todd doing this? Cindy should be paid any fees due. There is no issue as long as Cindy has a POA for Todd. There is no issue as long as the fees are paid directly to Todd. Todd is prohibited from allowing anyone to use his principal broker's license in order to perform real estate activities.
Todd is prohibited from allowing anyone to use his principal broker's license in order to perform real estate activities.
What's another name for an escrow account? Closing fund Locked account Savings account Trust account
Trust account
Which statement best describes an adjustable rate mortgage? A loan with a rate that fluctuates based on the economic index to which it is tied Debt that is paid off by making periodic payments mostly consisting of interest and principal Mortgage where only interest is paid until the end of the term, when the principal is paid This is a fixed-rate mortgage where the monthly payments increase over time according to a set schedule
A loan with a rate that fluctuates based on the economic index to which it is tied
Which of the following is an example of constructive eviction? A landlord locks a tenant out of her unit after she fails to pay her rent for three months. A tenant chooses not to renew a lease when the term expires and moves out. A tenant dies. A tenant moves out of the apartment after repeated unsuccessful requests to the landlord to repair the broken water heater.
A tenant moves out of the apartment after repeated unsuccessful requests to the landlord to repair the broken water heater.
After getting into a fender bender, Parker had to buy a new car. To make the down payment on the car, he had to skip a couple of his mortgage payments. He received a notice from his lender indicating the remaining amount of his loan is due immediately and in full. What clause in his mortgage stipulates this? Acceleration Alienation Defeasance Due-on-sale
Acceleration
The Adams family is financing their loan through Acme Bank and their agent negotiated a great sales price on their new home. Smith Title Company processed the loan documents. The Adamses must purchase mortgage insurance. Who does the insurance protect? Acme Bank Smith Title The Adamses The realtor
Acme Bank
The appraisal on Jean's property came in at $22,000 less than the agreed-upon sales price, so the buyer, Thomas, wants to renegotiate the terms. If they can come up with a new price that is satisfactory to both parties, what will they use to document this? Addendum Amendment Annotation Appendix
Amendment
Which of these situations might be addressed by limitations or a subject to clause in the deed Jane is using to convey property to Moira? An easement runs across the property, permitting Jane's neighbors to access the neighborhood boat dock. Jane has given Moira 24 hours to accept delivery of the deed. Jane wants to limit her liability for any title defects that may occur. Moira's acceptance of the deed is subject to receiving her financing
An easement runs across the property, permitting Jane's neighbors to access the neighborhood boat dock.
Chrissy lives in Lake Ridge Estates, a neighborhood in which vinyl siding may not be used on homes. This HOA regulation is what kind of private land control? CC&R Deed restriction Law Regulation
CC&R
Sam was putting up a basketball hoop by his driveway when one of the officers of the homeowners association walked by. "I'm so sorry," she said, "but you'll have to take that down. Basketball hoops in direct view of the street are prohibited." What is in place in Sam's subdivision that would prohibit this? CC&Rs Deed warranty Law Regulation
CC&Rs
Joan is representing the buyer, Carlton, and Reggie is representing the sellers, Zeb and Teresa Martin. Carlton's Great Aunt Matilda has agreed to pay any portion of Joan's commission the sellers don't cover. Teresa's father, Teddy, has agreed to pay half of the sales commission that will be owed to the listing agent. Which of these statements is true? Carlton and the Martins are the agents' principals in this transaction. Matilda and Teddy are the agents' principals in this transaction . Reggie's clients are Zeb, Teresa, and Teddy. Since she's paying Carlton's share of the commission, Matilda is Joan's client.
Carlton and the Martins are the agents' principals in this transaction.
Quentin brought an application before city council to build a shopping mall on 17 acres south of town that currently don't have a zoning designation. The council referred him to the planning commission, which will review the application in light of the city's ________. Comprehensive plan Economic development plan Health and sanitation ordinances Zoning ordinances
Comprehensive plan
Sophie received title to her grandmother's farm last spring. For almost 100 years, Sophie's family has kept cows and goats on the 120-acre property. The deed came with a caveat: Sophie is never to raise pigs on the farm. If she does, then the property is transferred to her brother. What did Sophie's grandmother create? Abatement Condition Covenant Restriction
Condition
Which of these items around the fireplace could be a clue that there is a problem? Ash and soot in the firebox Cracked or sloping firebox or hearth Hole in the soffit Missing mantle
Cracked or sloping firebox or hearth
Don and Becky realized too late that the contract they signed for the sale of their home didn't include any language about a rent-back if the home they're building isn't ready in time. What can their listing agent do? Create a contract addendum with the required language. Create a contract amendment with the required language. Create a counter-offer to present to the buyers. Terminate the contract on Becky and Don's behalf.
Create a contract amendment with the required language.
Sue is selling her house for $265,000. Closing is set for June 19, and Sue owns the day of closing. She has a loan balance of $78,000 at a 4.2% rate, and she's current on her payments. She prepaid the property taxes ($1,350) and insurance ($925). Using a calendar-year proration method for calculations, how will these amounts appear on Sue's closing statement? Since she already prepaid the property taxes, first determine the tax daily rate: $1,350 ÷ 365 = $3.70. Next, determine how many days from closing until the end of the year, which is 195 days. Next, multiply the daily rate you calculated in the first step, $3.70, by how many days from closing, 195: $3.70 X 195 = a $721.50 seller credit. Any prepaid seller's homeowners insurance will be refunded to the seller outside of closing, so this doesn't appear on the closing statements. Credit of $1,059.10 Credit of $1,350 and debit of $484.04 Credit of $721.50 Debit of $1,214.85
Credit of $721.50
When a property owner wishes to convey her property to a new owner, she will generally use a ______. Deed Lease Mortgage Title abstract
Deed
A part of your property is used by the local utility company to maintain its power lines. What's this an example of? Easement Eminent domain Encroachment Illegal use
Easement
Gene and Alex bought a property that backed up to a neighborhood park. The previous owner mentioned that ever since the park was built eight years ago, the next door neighbor who works at the park has cut through the yard to get to the park rather than going around via the streets, which saves about half a mile. What kind of easement is this? Easement by prescription Easement in gross Express easement Visible easement
Easement by prescription
A poor floor plan is an example of which type of depreciation? External depreciation Functional obsolescence Incurable depreciation Physical depreciation
Functional obsolescence
Juan has finalized his comparables and is ready to determine a property's appraised value. How does he do this? He reviews his process and places more weight on the most similar comparables that he believes to be the most valid. He takes an average of the adjusted comparable values. He uses the highest adjusted value from his comparables. He uses the lowest adjusted value from his comparables.
He reviews his process and places more weight on the most similar comparables that he believes to be the most valid.
What economic principle is related to a property's most profitable use that is both legal and economically feasible? Anticipation Contribution Highest and best use Progression
Highest and best use
Drake's offer to purchase Kevin's condo currently has a financing contingency, an inspection contingency, an appraisal contingency, and a sale of current home contingency. Kevin also got an offer from Lucy, which came in at $5,000 less than Drake's offer but with only an appraisal contingency. What is true about Drake's offer compared to Lucy's? It's likely viewed as a less favorable offer. It's likely viewed as a lowball offer. It's likely viewed as a more favorable offer. It will likely set off a bidding war.
It's likely viewed as a less favorable offer.
What's one benefit of a rural development loan? It doesn't have to be repaid. It includes marketing assistance for farmers. Its optional longer term means a lower monthly payment. Its optional shorter term means a quicker payoff.
Its optional longer term means a lower monthly payment.
Which of these is an example of severability? Jules and Katrina are under contract for the purchase of Katrina's house. A dispute arises over some contract terms, and they end up in court. The court rules one of the terms invalid but leaves the remainder of the contract in force. Mark's contract with Reuben states that either party may sever the contract if any contract term is only partially performed. Misty's lease agreement with Thomas contains a provision that permits her to sever the lease if Thomas doesn't remodel the apartment as promised. Ricardo and Timothy are under contract in the sale of Ricardo's office building. Ricardo's tenant leases gives him the option to sever the lease agreements upon sale of the building.
Jules and Katrina are under contract for the purchase of Katrina's house. A dispute arises over some contract terms, and they end up in court. The court rules one of the terms invalid but leaves the remainder of the contract in force.
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 can only deduct the property taxes charged back to her at closing. 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 is in the reversion stage of the property ownership lifecycle.
Margo is in the ownership stage of the property ownership lifecycle.
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 Case law Material facts Physical matter
Material facts
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 is applied last? Conditions of sale Location Market conditions Physical characteristics
Physical characteristics
What does the lot and block system use to develop a property's legal description? Compass headings and directions Plat references Principal meridians and base lines Townships and sections
Plat references
A rundown home, overgrown with weeds and in desperate need of repairs, is driving down property values on the block. What economic principle is at work here? Anticipation Contribution Progression Regression
Regression
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
Release
What's the term for a requirement that all property owners in a subdivision have a six-foot privacy fence surrounding their entire property? Deed Doctrine of laches Restrictive covenant Setback
Restrictive covenant
Greta is working with agent Brandon to sell some property. Nelson represents the buyer, Rigby. Of these four parties, who will pay the earnest money? Brandon Greta Nelson Rigby
Rigby
Tres owns a warehouse in an area that is zoned light industrial. With an increased demand for housing in the area, Tres wants to create loft-style condos and have his property designated as residential, even though the surrounding buildings will remain light industrial. What type of zoning is this? Aesthetic zoning Downzoning Incentive zoning Spot zoning
Spot zoning
The question, "What's the purpose of this appraisal?" can be answered by this first step of the appraisal process. Determine highest and best use Estimate land value. Identify data needed. State the problem.
State the problem.
Which of these statements about statutory duties and common law fiduciary duties is true? Statutory duties are the same as fiduciary duties. Statutory duties spring from common law and include six duties that licensees owe clients. Statutory duties spring from state statutes and tend to be more specific than fiduciary duties. Statutory duties tend to be more broad than fiduciary duties.
Statutory duties spring from state statutes and tend to be more specific than fiduciary duties.
What is the name of the federal law that sets forth guidelines regarding telephone solicitation? Bitphone Telecommunication Device Act of 2003 Telecommunications Information Act Telephone Consumer Protection Act
Telephone Consumer Protection Act
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 area of an air lot can't be calculated because the height is unlimited. 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 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.
What title guarantees will Jody have when she buys a property at a foreclosure auction? The covenant against encumbrances The covenant of further assurances The covenant of quiet enjoyment The covenant of seisin
The covenant of seisin
Henrietta is 17 years old. She wants to sell the property given to her by her grandmother. Which covenant provided by the general warranty deed may prevent her from doing so? The covenant of further assurances The covenant of seisin The covenant of the right to convey The covenant of warranty
The covenant of the right to convey
Which fiduciary duty requires agents to handle their clients' funds and paperwork properly? The duty of accounting The duty of confidentiality The duty of disclosure The duty of obedience
The duty of accounting
Alex's client doesn't want prospective buyers to track dirt and mud throughout her clean home. She asks Alex to place a box of booties by the front door with a sign asking visitors to wear the booties while viewing the home. Alex does as his client instructs—no questions asked. What fiduciary duty is this an example of? The duty of accounting The duty of loyalty The duty of obedience The duty of reasonable skill and care
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 accounting The duty of loyalty The duty of obedience The duty of reasonable skill and care
The duty of obedience
Renee listed her property for three months starting on March 13. By August, the property hasn't sold. This is after lots of marketing and effort from the agent, a price adjustment, and several showings. Renee decided to list the property with another firm. Under which of these conditions can Renee list the property with another firm without breaching her agreement? She can terminate with no penalty as long as she lists with another firm. The agent abandoned the listing. The agent didn't put forth enough effort, so Renee can terminate the agreement. The listing agreement expired.
The listing agreement expired.
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. The zoning board may require the developer to include parklands in the neighborhood expansion. Two of the residents on Brandon's street have in-home occupations.
The property is right in the middle of a historic preservation district.
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 reserves the right to sell the property and not have to pay a commission. The seller specifies a desired price for the property and agrees to pay the broker any amount received that's more than that price. The seller works with many agents, and only the agent who procures the buyer is owed a commission.
The seller specifies a desired price for the property and agrees to pay the broker any amount received that's more than that price.
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 buyer's home inspector refuses to share the inspection report with the seller. The seller refuses to complete a property disclosure form. The seller's agent fails to disclose a conflict of interest.
The seller's agent fails to disclose a conflict of interest.
When state and federal laws differ, as they sometimes do with fair housing and/or human rights, which of these statements is true? State and local law override federal law. State lawmakers decide which law prevails. The conflicting law is invalidated, effectively removing the law's requirements. The state law may not remove rights granted to citizens under the federal law.
The state law may not remove rights granted to citizens under the federal law.
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 Ramon is from Nicaragua. They were refused an apartment because they're gay. They were refused housing because Bill is a smoker. They were shown an inferior apartment because the landlord doesn't like 20-somethings.
They were refused an apartment because Ramon is from Nicaragua.
In marketing her new listing, Alice asks the photographer to "touch-up" the photos of the house so that the old roof and siding look as though they are new. Which statement about this is true? If Alice didn't have the actual color of either the roof or the siding changed, this does not rise to the level of false advertising. This is deceptive advertising for which Alice, but not her broker, can be disciplined This is deceptive advertising for which both Alice and her broker may be disciplined. This is not a deceptive practice since any serious buyer will see the actual property before making an offer.
This is deceptive advertising for which both Alice and her broker may be disciplined.
What's the minimum number of business days prior to closing that lenders have to provide borrowers with the Closing Disclosure form? Five Four Three Two
Three
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. Regina's closing with Martin took place in a different county than her closing with Tom. 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.
Tom's title company didn't have time to record Tom's deed before Regina closed with Martin.
It's January, and the pool at Roger's listing has been prepped for winter for several weeks. The homeowner assures Roger that it's in good working order. Roger has no reason to disbelieve the homeowner, so he tells prospective buyers that the pool is fine. The property sells, spring comes, and the new owners call to complain that the pump doesn't work, and the pool drain appears to be clogged. What did Roger commit? Fraud Negligent misrepresentation Puffery Unintentional misrepresentation
Unintentional misrepresentation
Kevin and Regina sold their property to Vickey using a general warranty deed. Which of these statements is true? Either Regina or Kevin can convey the property. Kevin and Regina are the grantees. Vickey is the grantee. Vickey is the grantor.
Vickey is the grantee.
You sign a contract to purchase a machine that will allow you to travel back in time and meet Abraham Lincoln. Assuming that time machines don't actually exist (for now), what type of contract is this? Enforceable Unilateral Void Voidable
Void
Supply and demand determine competition within a market. Which of the following is a true statement? When there are fewer houses on the market, buyers will pay less. When there are fewer houses on the market, demand wanes, as well. When there are fewer houses on the market, neighborhood blight occurs. When there are fewer houses on the market, sellers can demand more for their properties.
When there are fewer houses on the market, sellers can demand more for their properties.
Sondra thinks the new business contract she signed with her business partner is valid. Both parties are legally competent, the contract has 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 consent was voluntary Whether the contract has been translated into all possible languages Whether the contract is in writing Whether the parties are over 21
Whether consent was voluntary
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 a licensed general contractor did the work Whether or not the addition was permitted Whether or not the materials used match the original construction
Whether or not the addition was permitted