Salesperson Cafe
28.Which of the following is credited to the buyer of a property at closing? A) Sale price B) Earnest money C) Property taxes paid in advance D) Unused seller's insurance premium
B) Earnest money
7.A house has been appraised at $85,000. A buyer offers and a seller accepts the appraised value for the house. Under which of the following loan programs would the buyer, if qualified, be most likely to obtain a 100% loan? A. Are not binding on the seller B. Are binding on the buyer C. Are for very short terms D .VA-guaranteed loan
D .VA-guaranteed loan
83.A buyers's gross income is 90,000 per year. She pays 300 for a car loan and 200 for her student loan. When she applies for a mortgage the bank reuqires a maximum debt-to-income ratio of 36% on all debt, and a maximum 28% debt-to-income ratio for housinf debt. What is the maximum monthly house payment the bank will approve? A 1600 B 2700 C 2100 D 2200
D 2200
A property had a land value of $32,000, improvements of $140,000 and a straight line depreciation rate of 1.25%. After 16 years, what would be the amount of depreciation? (M071714) $21,600 $22,400 $28,000 $34,400
$28,000
An investor is considering the purchase of a commercial office building. The annual gross income is $140,000 and annual expenses are $42,000. The investor wants a 10% investment return. What is the estimate market value of the property? (A041714) $420,000 $980,000 $1,400,000 $1,820,000
$980,000
How is an earnest money deposit held in escrow reflected on the closing statement? (a) Credit to the buyer (b) Debit to the buyer (c) Credit to both the buyer and seller (d) Credit to the seller
(a) Credit to the buyer
12. Which of the following contains a property described by lot and block number? (a) Recorded plat (b) Recorded deed (c) Development (d) Government survey
(a) Recorded plat
23. How many acres are contained in the NW 1/4 of the NE 1/4 of the SE 1/4 of section 17, T1N, R3E? (a) 2.5 acres (b) 10 acres (c) 40 acres (d) 160 acres
(b) 10 acres
How is the amount of a new mortgage obtained by the buyer entered on the closing statement? (a) Debit to the buyer (b) Credit to the seller (c) Credit to the buyer (d) Debit to the seller
(c) Credit to the buyer
66. A couple visits an open house and fall in love with the floor plan and location. They tell the host would love to buy the house but do not know if they can afford it. In the conversation the broker learns that they are currently paying $1,750 per month for rent. Would the principal and interest payments be within the amount of their current if the price is $249,000 with interest rates for a zero down, 30 years mortgage at 5% interest? Be sure to use the information table. Only if they have 20% down payment A. YES B NO
-Yes, the payment is within the range of their current rent amount
A Georgia salesperson's primary role at a closing is to: 1. Observe as the agent of the broker 2. Explain the closing statement 3. Represent the lender 4. Act as the agent for the buyer+
1. Observe as the agent of the broker01
52. A broker is helping a listing client to determine an asking price for her property. The subject property has only one bath but it does have a fireplace. The house next door, which sold for $180,000, has one and a half baths and no fireplace. A house across the street, which was sold recently for $175,000, has only one bath and no fireplace. The properties have attached one-car garages. Experiences in that area sets the value of an attached garage at $18,000, of an extra half-bath at $5,000, and of a fireplace at $3,000. What is the indicated value of the subject property? 175,000 178,000 180,000 193,000
178,000
Janet is the property manger for a 20 unit building . What steps would she take when asked to prorate the rent if a new tenant wants to move in on the 8th day of the month in June ? 1. subtract 8 days from 365 to come up with the prorated rent per day 2. Divide the monthly rent by 30 days and multiply that number by 22 3. calculate the 22 day rental amount and add a prorated utility fee 4. advise the tenant that the first available move-in date is July 1
2. Divide the monthly rent by 30 days and multiply that number by 22
92.A developer/subdivider intends to divide a 20-acre parcel of land into 20 residential lots by installing water, sewer, and a roadway to each lot. The Illinois Plat Act requires A) A metes and bounds legal description of each lot B) No survey, but legal and detailed plats C) A recorded plat of the subdivision D) A record of conveyance and restrictions of the subdivision
A) A metes and bounds legal description of each lot
A licensee is emailing information regarding an open house for one of her listings. In addition to complying with state-specific requirements for advertising, which of the following must be included in the email? A) opt-out provision B) how the recipient's name was obtained C) complete property address D) listing sale price
A) opt-out provision
A buyer wants to purchase a home for $260,000. The lender appraises the home for $225,00 and offers to finance it with an 80% loan to value loan, a loan orgination fee of 1.5 points. How much will the buyer's loan orgination fee be? A. $2,700 B. $3,1203. C. $3,3754. D. $3,900
A. $2,700
What is the difference between a specific lien and a general lien? A. A specific lien is secured by a specific piece of property, and a general lien is secured by the collective assets of a person against whom the lien is held B. A general lien is secured by a specific piece of property, and a specific lien is secured by the collective assets of a person against whom the lien is held C. Specific liens require collateral, and general liens do not D. General liens require collateral, and specific liens do not
A. A specific lien is secured by a specific piece of property, and a general lien is secured by the collective assets of a person against whom the lien is held
47.If there is a cloud on the title to a property, the best means of eliminating it is A.A suit to quiet title B. A quiet transfer of the property C. Waiting 7 years for the issue to expire D. Transferring the property with general warranty deed
A. A suit to quiet title
To participate in a referral service, a broker company must? A) Be a member of a franchise. B) Have a written agreement with the cooperating broker. *** C) Be licensed in the state to which they are sending the referral to. D. Place their license in a referral status with the state licensing board.
B) Have a written agreement with the cooperating broker.
A salesperson negotiated the sale of a house for a builder. Because the house had been on the market for a long time, the builder offered to give the salesperson a television as a bonus. Which of the following is true about this situation? A) The salesperson can accept the bonus only if he notifies the purchaser. B) The salesperson can accept the bonus only with the knowledge and consent of the broker holding the license. C) Because the value of the bonus is nominal, the salesperson can accept it without notifying anyone. D) The salesperson cannot accept the bonus under any circumstances because that would be an unfair trade practice
B) The salesperson can accept the bonus only with the knowledge and consent of the broker holding the license.
2. A property is in good condition, but its value has declined because it is located in a badly deteriorating neighborhood. This is an example of which type of depreciation. A. External obsolescence B. Deferred maintenance C. Functional obsolescence D. Physical deterioration
A. External obsolescence
A licensee has a 90 day exclusive right to sell listing which is about to expire. The licensee wants to re-list the property and offers to purchase the property as a condition to extend the listing. The licensee must: A) purchase the property at the listed price by the expiration date of the listing if the property has not been sold. B) enter into a written contract to purchase which expresses all the terms and conditions of the licensee's purchase price at the time of entering into the extension of the existing listing. C) not enter into this agreement as it is considered an undisclosed "dual agency" arrangement. D) enter into a purchase agreement with the seller after the new listing expires which expresses the terms and conditions of the sale.
B) enter into a written contract to purchase which expresses all the terms and conditions of the licensee's purchase price at the time of entering into the extension of the existing listing.
In a jurisdiction where the common law of agency governs real estate activities. A broker has entered a single agency relationship with the buyer. He has put together a list of properties to show that would provide the maximum commission to the broker, but not all of these properties are suitable for the buyer's needs. In this case the broker has violated the fiduciary duty of A. Confidentiality B. Loyalty C. Disclosure D. Caution
B. Loyalty
Mary sold her property to Ron subject to her existing mortgage. If Ron defaults on the loan who is liable for the debt? (M011420) A. Ron only. B. Mary only C. Mary is primarily liable and Ron is secondarily liable. D. Ron is primarily liable and Mary is secondarily liable.
B. Mary only
60. A seller talks with three different agents to establish probable selling price for a home. The first agent market analysis suggests a price around $79,900. The second agent's market analysis suggest approximately $81,500. The third agent does not research any comparable but simply list the home at $91,500. Three months later the property sells for $76,900. The agent's behavior suggests A. Failure to disclose B. Negligence C. Misrepresentation D. Puffing
B. Negligence
36. A seller places his places on the market for sale at a certain price. A buyer sees the property and makes a written offer to purchase that is 90% of the asking price. The seller rejects that offer, but states that he will accept an offer of 95% of the original asking price. The buyer rejected that counteroffer. The original offer is? A. Rescinded B. Null and void c. irrevocable d. binding
B. Null and void
What action returns a contract's parties to their positions as if the contract never happened? A. Cancelation B. Rescission C. Substitution D. Subordination
B. Rescission
Selma lists her property with XYZ Realty, ABC Realty, and MNO Realty. In each listing agreement, Selma has agreed to pay a commission to the listing firm only if that firm finds a ready, willing, and able buyer and a sale is consummated. This type of listing is: A. an exclusive agency listing B. an open listing C. an exclusive right to sell listing D. an MLS listing
B. an open listing
Which of following behaviors demonstrates the loyalty a broker owes to the seller who is his client A.A broker tells the buyer that the children of the seller are transferring to a school across town B. broker tells the buyer the seller in term farmer moving to expedite the contract C.a broker doesn't not tell the buyer about seller a pending relocation pays the seller D.a broker do not tell the buyer about lack roof paid the seller
B. broker tells the buyer the seller in term farmer moving to expedite the contract
If a person has complete control over their property, and the ownership in the property is not defeasible, what interest does the person have in the property? A. fee conditional estate B. fee simple estate C. live estate D. defeasible fee estate
B. fee simple estate
A property which has deferred maintenance is said to have: A. physical deterioration. B. functional obsolescence. C. economic deterioration. D. physical obsolescence
B. functional obsolescence.
The gross rent multiplier (GRM) would be used when estimating the value of a: A. industrial warehouse. B. income-producing residential duplex. C. commercial office building. D. vacant lot.
B. income-producing residential duplex.
89.A mortgage may be classified as which type of lien A voluntary and general B. voluntary and specific C involuntary and specific D. Involuntary and general
B. voluntary and specific
A seller's agent is contacted by a potential buyer whose financial status is questionable. When asked to write an offer, the agent should? a. Refuse to write the offer b. Relay any reservations to the seller *** c. Ask for a high earnest payment d. Require the buyer's financial statement to accompany the offer
B.) Relay any reservations to the seller
8. In a jurisdiction where the common law of agency governs real estate activities, a principal broker has a single agency relationship with his buyer. They pass a "For Sale by Owner" property that the buyer is interested in viewing. The principal broker secures a commission agreement with the seller as his customer. The seller tells the principal broker that he needs to sell the house quickly and will accept less for a quick trading. The agent MUST tell the buyer A: Nothing about this because the seller is paying the commission B: About this information because the buyer is his principal C: To make an offer with a quick closing date to protect both parties D: To make a low offer to give the buyer a little advantage
B: About this information because the buyer is his principal
54. A client is considering listing an industrially zoned 10-acre site. It has been vacant for several years and was formerly used as an automobile junkyard. What would you recommend the seller consider obtaining prior to putting the property on the market? A: A radon measurement analysis B: An environmental site assessment C: An electromagnetic field determination D: An air quality report from the Environmental Protection Agency
B: An environmental site assessment
32.The main purpose of antitrust laws is to A: Ensure a minimum price for goods B: Control the number of competitors C: Maintain and preserve business competition D: Ensure that consumers do not pay any more than maximum allowable prices
B: Control the number of competitors
A condominium complex is exempt from the fair housing requirements regarding housing for families with children if it A: Is at least 2 years old B: Is intended for at least one person 55 years of age or older per unit C: Is intended as an investment D: Houses recovering alcoholics
B: Is intended for at least one person 55 years of age or older per unit
11.a purchase money note need not contain? A. rate of interest B time and method of payment C loan -to -value ratio D principal amount of the loan
C loan -to -value ratio
Deed restriction means the same as? (A) Lease restriction (B) Master plan C) Restrictive covenant (D)Variance
C) Restrictive covenant
All of the following actions would be prohibited under the Fair Housing law EXCEPT A) providing separate housing for singles and families with children. B) setting different terms for Muslim tenants. C) limiting rental of shared living quarters to female only. D) refusing to sell to an African-American couple.
C) limiting rental of shared living quarters to female only.
93. A licensee agrees to represent a buyer who will pay a commission. The licensee find a buyer that is listed with another real estate company. In Illinois which of the following statement about this situations is true A. The licensee is now a dual agent B. The licensee has violated Illinois real estate licensee law C. The licensee is automatically entitled to a commission from both parties D. the buyer is the client, regardless of who pays a commission
A. The licensee is now a dual agent
Seller A entered into an option contract with Buyer B. The contract allowed for a price of $200,000 which Seller A honor for a 12 month period exclusively for Buyer B. This would be an example of a A. unilateral contract in which only seller a has made a promise B. Unilateral contract in which only buyer b has made a promise C. Bilateral contact which both parties obliged to perform with a period of time D. Void contract
A. This is a unilateral contract in which only Seller A has made a promise to perform.
59. The seller has required that the buyer must use his title insurance company. The seller has been told that if the buyer uses the title company, they will pay part of his real estate commissions, increasing his net proceeds from the sale, Is this a legally permissible agreement? A. This is illegal according to RESPA B. This illegal according to Regulation Z C. This is permissible if the buyer was receiving a VA loan D. This is permissible if no fee is paid directly to the seller
A. This is illegal according to RESPA
1.Which of the following is true about judgement liens A. When property is sold to satisfy the debt, a satisfaction of the judgement should be filed to clear the record B. They can affect only real property C.A judgement automatically takes first priority as a lien regardless of the dates of its processing D. They can affect only personal property
A. When property is sold to satisfy the debt, a satisfaction of the judgement should be filed to clear the record
An adjustable-rate mortgage may NOT be good for a buyer a. Who only intends to own the property for a short time b. Whose income is likely to increase c. Who is about to retire d. Who is receiving his down payment as a gift from parents
A. Who is about to retire
3.A potential buyer signs a contract with a seller but then decides not to buy. The seller may sue the potential buyer for specific performance or damages unless the contract was A. a bilateral contract. B. an installment contract. C. a land contract. D. an option.
A. a bilateral contract
Risk of negative amortization is associated with ________ mortgages. A. adjustable rate B. subprime C. fixed-rate D. conventional
A. adjustable rate
38. A licensee hears that a religious group will be opening a commune in a neighborhood. He begins contacting neighbors and telling them about this, encouraging them to list their properties with him before property values decline. This would be: A. blockbusting B. redlining C. steering D. legal
A. blockbusting
The gross rent multiplier (GRM) on a residential property would be determined by: A. dividing the sale price by the monthly rental income. B. dividing the sale price by the fixed costs. C. multiplying the sale price by the monthly income. D. multiplying the sale price by the fixed costs.
A. dividing the sale price by the monthly rental income.
37. Which type of easement creates a servient estate, but NOT a dominant one? A. easement in gross В. prescriptive easement С. easement appurtenant D. easement by reservation
A. easement in gross
39. What is a meeting required to establish mutual assent? A. meeting of the minds B. rejection of an offer C. offer and counteroffer D. an offer that meets the listing price
A. meeting of the minds
Which of the following types of deeds is typically used where one is releasing any interest he/she may have in a parcel of real A. quitclaim deed B. special warranty deeds C. grant deed D. general warranty deeds
A. quitclaim deed
46. Evergreen bushes and apple trees on a property that were planted by the current owner are examples of? A. real estate, B. Personal property C. Chattels D. Trade Fixtures
A. real estate,
53.Harry purchases a residential lot for $87,500. He makes two deposits of $1000 each on the contract and the balance of the down payment at closing of $6750. He receives a 90% loan with a 3% origination fee. How much money will harry need to pay for the origination fee? A.$2362.50 B. $2392.50 C. $2565.00 D.$2625.00
A.$2362.50
64. under the illinois real estate license act of 2000 a designated agency A.May be expressed or implied B. Is limited to sellers C. Is not allowed D. Is limited to buyers
A.May be expressed or implied
88 A salesperson has been trying to create a competitive market analysis (CMA) for a potential listing. The immediate neighborhood has many bank owned foreclosure properties, which seem to have depressed the prices showing up in public records and on the MLS system. In this case, the salesperson A: Can seek similar properties from a neighborhood across town with fewer foreclosures to use as "comps" B: Cannot use a CMA since it will not show true market value. The broker should ask the sellers what they want for their home and list at that price. C: Should advise the sellers to rent their present home until the market improves. This way they can have an additional income to allow them to move up to a better home in a better neighborhood. The broker could then seek to sell the rented home to a house flipper as an investment. D: Should seek any non-foreclosure "arm's length" transactions for properties similar to her subject property in the same or nearby neighborhoods. Even if their prices have been depressed by the neighborhood conditions, these will represent the best guidance to the sellers on a likely selling price.
A: Can seek similar properties from a neighborhood across town with fewer foreclosures to use as "comps"
17.A lender places a property for auction at a foreclosure sale. A number of bids are offered at the sale but none of the bids are satisfactory, so the lender decides to keep the property in inventory. This property becomes A: Real estate owned (REO) B: A judicial foreclosure C: A strict foreclosure D: Excess property
A: Real estate owned (REO)
9. Which of the following is true about competitive market analysis? A: Useful to buyer as well as to seller B: Used to establish depreciable value C: Employed for insurance purposes D: Usually based on local tax assessment;
A: Useful to buyer as well as to seller
A national company desires a parcel of land which must be four times the size of its proposed building. If the building design includes 20,000 square feet, then which of the following minimum sized lots should be purchased? A) 1 acre B) 2 acres C) 4 acres D) 8 acres
B) 2 acres
The SW 1/4, NE 1/4, SE 1/4, NW 1/4 of a certain section contains how many acres? A. 0.25 acres B. 2.5 acres C. 25 acres D. 250 acres
B. 2.5 acres
23.For the borrower, the major ADVANTAGE of Private Mortgage insurance (PMI) for a home mortgage loan is that A. the premium is typically paid by the seller. B. A smaller down payment is required. C. the entire amount of the loan is insured. D. the loan is paid in full if the borrower dies.
B. A smaller down payment is required.
21.Which of following behaviors demonstrates the loyalty a broker owes to the seller who is his client A. A broker tells the buyer that the children of the seller are transferring to a school across town B. Broker tells the buyer the seller in term farmer moving to expedite the contract C. a broker doesn't not tell the buyer about seller a pending relocation pays the seller D. a broker do not tell the buyer about lack roof paid the seller
B. Broker tells the buyer the seller in term farmer moving to expedite the contract
63. Which of the following activities requires an real estate broker license? A. earning a fee for referring a buyer B. Collecting a commission to conduct a personal property auction C. serving as resident manager of an apartment complex D. Buying easements as an employee of a utility company
B. Collecting a commission to conduct a personal property auction
86.A mortgage and a mortgage note are both A. Fully standardized instruments of conveyance B. Forms of contracts C. Non-negotiable D. Debt-releasing documents
B. Forms of contracts
70. At a listing appointment, the seller asks the broker not to disclose the prior termite treatment and repairs since they are now corrected. The broker should A go back to the office without pursuing the linting B. Insist that the seller disclose these facts to any potential purchaser c. agrees not to disclose these issues, as they no longer affect the property D confirm that repairs were made, and the extent of those repairs, before agreeing
B. Insist that the seller disclose these facts to any potential purchaser
A broker has been charged with using improper terms without full disclosure when advertising a real estate property. The broker has MOST likely violated? A) the Real Estate Settlement Procedures Act (RESPA). B) the Equal Credit Opportunity Act (ECOA).*** C) the Truth in Lending Act. D) usury laws
C) the Truth in Lending Act.
13.Which of the following analyses must be prepared by a certified appraiser? A. A CMA B. A price opinion for a lender involved with a short sale transaction C. An analysis to determine a projects estimate market capture and cap rate D. A property valuation report supporting a federally-related loan application
C. An analysis to determine a projects estimate market capture and cap rate
74. After announcing that a new City Park will soon be developed, homes in the immediate are experience a rise in value. This is an example of which of the following principles of value? A. change B. Contribution C. Anticipation D. Highest and best use
C. Anticipation
44 amortized or a balloon payment loan is that? A. the loan can be extended at prevailing interest rates, B. monthly payments are relatively small, C. At the end of the term no interest or principal is due, D. the portion applied to the payment of interest increases over time
C. At the end of the term no interest or principal is due,
49.IIn a jurisdiction where the common law of agency governs real estate activities, a buyer has a single agency with a broker. The buyer wants to purchase one of the brokerage company's listings from a seller with whom the broker also currently has a single agency relationship. This will create dual agency but in order for this relationship to be legal, it will be necessary to have written consent of the A. Seller B. Buyer C. Buyer and seller D. Seller, buyer and broker
C. Buyer and seller
76.The city wishes to purchase a parcel of property to be used as a cloverleaf for access to the nearby Interstate the landowner refuses to sell, to acquire title to the property the city will initiate a process of A. Accession B. regreation C. Condemnation D. escheat
C. Condemnation
Buyer agent Bob learns that a registered sex offender lives right next door to the home that his client wants to purchase. Bob really needs the sale, so he does not tell his client about the neighbor, nor does he inform his client about sex offender registry. Bob has violated his fiduciary duty of A. Accounting B. Confidentiality C. Disclosure D. Obedience
C. Disclosure
An historic mansion has been converted to a ten-unit rental property. When appraising the property, the appraiser would most likely give the greatest weight to which appraisal approach? A. Sales comparison. B. Cost. C. Income. D. Gross rent multiplier
C. Income.
77. An owner lists a property with a broker through an associate broker. Which of the following would NOT terminate the agency relationship? A. The employing broker dies. B. The owner is declared mentally incompetent. C. The associate broker dies. D. The property is destroyed by fire.
C. The associate broker dies.
57. A lessesse sublets her apartment to her brother with the approval of the lessor. Which of the following is true if the brother defaults on the leassesse. A. Because the lessor approved the sublet, neither the lesses nor her brother are liable B. The lesses has no liability to the lessor C. The lesses remains liable the lessor
C. The lesses remains liable the lessor
98, An optionor and optionee make a contract for an option on a piece of land. If the optionee decides to exercise his option, when must he perform? A. The optionee does not have to do anything; it is the optionor that must decide. B. The optionee must exercise his option within 30 days. C. The optionee must exercise his option under the terms of the option contract. D. The optionee must exercise his option whenever the optionor demands.
C. The optionee must exercise his option under the terms of the option contract.
5. A feature of joint tenancy with a survivorship is that A. It provides for the disposition of personal possessions B. A corporation can be a joint tenant C. The surviving joint tenant(s) acquire the property free and clear of any liens against the deceased D. It eliminates probate
C. The surviving joint tenant(s) acquire the property free and clear of any liens against the deceased
55. An offer was presented but the seller did not accept the offer, instead he suggested different terms that would be more acceptable. Which of the following is FALSE? A. This is a rejection of the original offer. B. This is a counter offer on the original offer. C. This is a negotiation that keeps the original offer alive. D. This kills the original offer, which can no longer be accepted
C. This is a negotiation that keeps the original offer alive
1.A developer intends to subdivide a large parcel of land and is in the process of land planning. He has determined the geographic boundaries of the individual lots and how the streets in the development will be designed to give access to each lot. When can he begin to list lots for sale with a broker? A, after he records prescriptive easements for lots that have no street frontage B. When local authorities grant him a conditional use permit allowing residential construction C. When he has submitted his plat map to local authorities, received approval, and recorded it D. Immediately, as long as the current zoning ordinance permits the residential use he is planning
C. When he has submitted his plat map to local authorities, received approval, and recorded it
27. A licensee represents the seller of a commercial property. The licensee tells the buyer a new highway exit ramp will be built withinn 6 months to give access to property, although he knows that is only one of several possibilities being considered by local planners. The exit ramp is located elsewhere. Could the licensee be liable to the buyer for the statement about the ramp? A. No, the statement was licensee's opinion B. No, the cannot be held liable for the planners decision C. Yes, the statement was unjustifiable puffing D. Yes, the statement was a material misrepresentation
C. Yes, the statement was unjustifiable puffing
94.Which claim for damages would be most likely to be covered by a home warranty program? A. a special assessment for a sewer which was not disclosed B. an error in the tax proration on the settlement statement C. a furnace that breaks a few weeks after the buyer moves in D. the fact that the property was the site of a paranormal event
C. a furnace that breaks a few weeks after the buyer moves in
Neighbors Sam and Molly share the use of Sam's driveway, which is entirely on Sam's property. Sam wants to have control of driveway use in case Molly sells her home, and Samdoes not like the new owner. Sam should provide Molly with A. a license. B. a covenant C. an easement. D. an encroachment.
C. an easement.
Jake purchases a 4-bedroom, brick, 2-story traditional home in a neighborhood of other similar homes in hopes that the investment will prove, in the future, to be a sound one. Jake is operating on the principle of: A. substitution. B. regression. C. conformity. D. contribution.
C. conformity.
A metes-and-bounds legal description: A. can be created for areas excluded from the rectangular survey system B. is not acceptable in a court in most jurisdictions C. must commence and finish at the same identifiable point D. is used only in extreme cases where there is no recorded subdivision plats
C. must commence and finish at the same identifiable point
35. During a broker meeting, a broker states that a competitor is not charging enough Commission. The other broker should A. vote on a new fee B. reduce their fees C. remove themselves from the meeting D. not show the competitors listing
C. remove themselves from the meeting
Your neighbors use a portion of your property to reach their guest apartment, which is on their property. As far as you can tell, you never gave them permission to use your property, and you discuss with your attorney the possibility of preventing the neighbors from using your property. Your attorney explains that the ownership of the neighbors real estate includes an easement appurtenant giving them the right to use that portion of your property. Your property is the: A. leasehold interest B. dominant tenement C. servient tenement D. license property
C. servient tenement
________ is NOT part of the property manager's responsibilities. A. fairness and honesty B. keeping up with rental rates in the area C. telling the owner the market value of the building D. keeping up with vacancies
C. telling the owner the market value of the building
90.Who should notify buyers about the role of a home inspector in a real estate transaction? A. the lender B. the seller's agent C. the buyer's agent D. the Department
C. the buyer's agent
All of the following are agency relationships EXCEPT: A. the attorney-client relationship B. the real estate salesperson-buyer relationship C. the real estate broker-buyer relationship D. the listing broker-seller relationship E. none of the above
C. the real estate broker-buyer relationship
A licensee just attended a class on using social media to further her real estate sales career. She was so excited about the class that she immediately came home and signed up for Facebook, Twitter Twitter and LinkedIn . She has chosen a listing to market via social networking, a residence recently built to resemble an antebellum mansion. Which of the following words or phrases may she lawfully include in her advertising? A.) Updated antebellum B.) Antebellum mansion C.) Antebellum style mansion D.) Beautiful "antebellum" estate
C.) Antebellum style mansion
There are essential requirements for a valid contract. Which of the following options is related to a list of promises between two or more parties in a contract? Consideration Legality Agreement Contractual capacity
Consideration
A seller's broker is negotiating to convince a lender to accept less than the balance due as complete satisfaction of the seller's debt. if the lender agrees the transaction would be considered A - A Negotiated balance reduction B - An Equitable C - Debt Forgiveness D - A Short Sale
D - A Short Sale
A Georgia sales person is asked by a prospective buyer to write an offer on a tract of land for which a legal description is unavailable. In drafting the offer the agent uses street address and phrase "Legal description to be attached and made part of the contract". Would this be acceptable A Yes, because the legal description will be attached later. B Yes, because full legal descriptions are not always necessary in a sales contract. C No, because such complex drafting can only be performed by an attorney. D No, because an adequate description of the property must be included in the contract.
D No, because an adequate description of the property must be included in the contract.
69. Which of the following phrases may legally be used in a rental advertisement? A no children 8 no pets, no exceptions C family home D three bedrooms
D three bedrooms
Which of the following would NOT be a violation of the Georgia License Law? A) Falsifying a document used in a real estate transaction B) Failing to advise your broker in writing when buying or selling property for yourself C) Failure to give a copy of a signed offer to the purchaser D) Failure to put a street address in a legal description
D) Failure to put a street address in a legal description
Can a broker deposit earnest money and security deposits into an interest bearing trust account? A) no, the law requires that it be deposited into a non-interest bearing account B) No, earnest money must be held by the seller or builder C) Yes, providing the broker notifies the Georgia Real Estate Commission of the location and name of the account D) Yes, providing all parties to each transaction specifically agree in writing who is to receive any interest earned prior to depositing the funds
D) Yes, providing all parties to each transaction specifically agree in writing who is to receive any interest earned prior to depositing the funds
68.Which of the following would be permissible under federal fair housing laws? A. Refusing to rent to a blind man because he has a seing-eye dog and pets are not allowed in the building B. Refusing to rent a German couple because they do not seem able to speak and understand English C. Refusing to rent a single mom because her kids are so noisy D. Refusing to rent to a Canadian man because his visa expired.
D. Refusing to rent to a Canadian man because his visa expired.
Before attempting to show a property listen in the multiple listing service by another company, a salesperson should: A) notify the Georgia real estate commission B) call the seller and request permission C) call the multiple listing service D) call the listing company
D) call the listing company
The purchase and sales agreement provides for the release of earnest money to the seller after the buyer's property inspection. The seller requests the earnest money prior to the property inspection. The broker should : A) Release the earnest money to the seller immediately B)notify the buyer of the broker's intention to release the money to the seller C) release the earnest money on the buyer's verbal approval D) refuse to release the earnest money
D) refuse to release the earnest money
Which of the following is true regarding a competitive market analysis? A. A broker may not charge a fee for performing a competitive market analysis B. A competitive market analysis does not have to be in writing and can be presented orally C. A competitive market analysis is equivalent to an appraisal done by a licensed professional appraiser D. It may include public records, past transactions, and an analysis of the market condition
D. It may include public records, past transactions, and an analysis of the market condition
When estimating the value of a property using the income approach, which of the following would NOT be considered an operating expense? A. Property taxes. B. Insurance costs. C. Maintenance expenses. D. Mortgage payments (debt service).
D. Mortgage payments (debt service).
6.In general, option contracts A. Are not binding on the seller B. Are binding on the buyer C. Are for very short terms D. Must be in writing
D. Must be in writing
15. Which of the following is applicable to housing for persons with disabilities? A. Guide dogs may be prohibited in a 6-unit building with a no-pets restriction B. Owners are responsible for modifications required by tenants C. Protection under the ADA applies to physical limitations, not mental limitations D. Newly constructed residential structures of 4 units or more must have wheelchair access to ground floor units.
D. Newly constructed residential structures of 4 units or more must have wheelchair access to ground floor units.
A borrower who was making payments on a loan was required to make a balloon payment at the end of the loan. This was mostly likely a? A. Fully amortized loan B. Straight loan C. Term loan D. Partially amortized loan
D. Partially amortized loan
a borrower who was making payments (principal plus interest) on a loan was required to make a ballon payment at the end of a - A. Fully amortized loan B. Straight loan C. Term loan D. Partially amortized loan
D. Partially amortized loan
Which of the following is the difference between the value of a property and the total amount of liens against the property? A. investment B. basis C. down payment D. equity
D. equity
16.which of the following types of deeds provides the purchaser of real estate the greatest protection? A. quitclaim deed B. special warranty deeds C. grant deed D. general warranty deeds
D. general warranty deeds
The seller has a beautiful dining room ceiling fixture that matches his entire dining room set. If the sales contract does NOT specifically state whether the fixture is included in the sale or excluded from it, the buyer's agent can tell the buyer to expect that the dining room fixture will be A. excluded from the sale because it is clearly part of the seller's dining room suite of furnishings B. excluded from the sale if the seller takes it down himself and mends the hole in the ceiling C. included in the sale only if the buyer purchases the dining room furniture D. included in the sale because it is attached to the ceiling
D. included in the sale because it is attached to the ceiling
45. A listing has expired with one firm. a licensee from another firm wants to contact the owner to list the property. The licensee may call the owner only if the A. owners are not listed on the Do-Not-Call list. B. licensee showed the property while it was listed with the other firm. C. property was listed with another firm in the multiple listing service in the last 180 days. D. licensee gets written approval from his responsible broker.
D. licensee gets written approval from his responsible broker.
34. A private integrated club refused to rent one of its condos to a minority family. The club explained that it did not rent the condos to the public since the condos were from members only. Is the club in violation of the federal fair Housing Act , and if so how? A. yes, because when race is involved, no exceptions to the federal fair Housing Act exist B. yes, because the club had minority members, and therefore were not eligible for exemption from the federal fair Housing Act C. no, because as an integrated club, they could discriminate on the basis of race in renting facilities D. no, because a private club may restrict the rental of its own lodging to its members as long as the lodgings are not operated commercially
D. no, because a private club may restrict the rental of its own lodging to its members as long as the lodgings are not operated commercially
The law in all states provides that contracts for the sale of real estate or an interest in real estate are unenforceable unless they are in writing and signed by the parties. What law is this? A. statute of limitations B. statute of estoppel C. statute of real estate D. statute of frauds
D. statute of frauds
29. The property a licensee has just listed is walking distance from a public beach. The agent has decided to describe it in a multiple listing service as "waterfront property".What issues, if any, should the agent consider before doing this? A. it is perfectly fine so long as the agent specifies the details in the remarks section B. this would be the best way to list the property as it would get the most attention from buyers C. the agent should ask the seller's permission before electing to describe it as a waterfront property D. to describe the property as waterfront could violate truth in advertising laws and could constitute fraud
D. to describe the property as waterfront could violate truth in advertising laws and could constitute fraud
87.Two parcels of land priced at $2,100 per acre were purchased. One parcel was 5 acres in size, and the other was 1 square mile in size. How much should these two parcels have cost together? A. $766,000 B. $914,760 C. $1,060,500 D.$1,354,500
D.$1,354,500
A seller's agent is contacted by a potential buyer whose financial status is questionable. When asked to write an offer, the agent should.... A.) Refuse to write an offer B.) Relay any reservations to the seller C.) Ask for a high earnest money payment D.) Require the buyer's financial statement to accompany the offer
D.) Require the buyer's financial statement to accompany the offer
4. A recently widowed farm owner has called a broker to list a one-acre building site in order to raise the money to pay the property taxes. How should the broker proceed? A: Pace off the land, put markers on the corners, and advertise the building site for sale B: Draw up the legal description of the property, list it, and begin the marketing campaign C: Refuse the assignment, as one cannot divide and sell a portion of one's land without selling all of it D: Contact the municipality to determine if this is possible, and then have a surveyor prepare the description
D: Contact the municipality to determine if this is possible, and then have a surveyor prepare the description
In a commercial real estate transaction, which of the following deed types would be used in a conveying the property to a new owner. l. Special Warranty II. ll. General Warranty iii. Ill Deed of Trust NV. Iv Deed in Lieu of Warranty I. II, III I and II III and IV II and III
II and III
A salesperson was involved in a transaction that consisted of a 6 month lease and an option to purchase. Which of the following statements best describes how the salesperson should handle the documents? a. Fill in the lease but not the option b. Send the documents to an attorney and have the attorney prepare the forms c. Fill in the option but not the lease as the lease was for 6 months or less d. Fill in both the lease and the option on standard forms and take to the broker for review
d. Fill in both the lease and the option on standard forms and take to the broker for review
A lender requested that the entire loan balance be paid immediately because the property on which the loan was made had been sold. What clause in the mortagage loan allows this? a) Alienation clause b) prepayment clause c) condemnation clause d) defeasance clause
a) Alienation clause
19.A person acquires an option to purchase a parcel of another person's land. Which of the following statements is correct? a) an option is a promise by the optionee to enter into a contract in the future b) the term and conditions of the sale must be stated if the option is a valid contract c) the consideration for the option right, plus interest, will be automatically applied to the purchase price if the option is exercised d) the potential buyer is the optionor and the seller is the optionee
a) an option is a promise by the optionee to enter into a contract in the future
A purchase agreement will not be terminated EXCEPT for the following reason? a. Death of offeror/offeree b. Contingency acceptance agreement c. Revocation of an offer if not met within time specified. d. Hospitalized buyer
a. Death of offeror/offeree
A buyer is purchasing a bank-owned property. The broker explains the type of deed she will be receiving only promises that the bank has the right to sell the property and that they have not encumbered it. What type of deed will the buyer most likely receive? a. Special warranty b. General warranty c. Trustee's deed d. Deed in lieu
a. Special warranty
A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If he accepts, which of the following will be true? a) because its voluntary, it will not be adverse item on buyers' credit b) The lender will take the file subject to any junior liens c) the lender will usually retain his rights under mortgage insurance or VA guarantee d) the loan will still be assumable
b) The lender will take the file subject to any junior liens
78. A city has rules requiring that a 4 unit apartment building must be on a lot of at 15,000 square feet and provide a minimum of two off street parking spaces per unit. These rules are example of the right of: a) police power b) eminent domain c) taxation d) escheat
b) eminent domain
To an individual who you are representing they would be considered the? a. Customer b. Client c. Principal d. Fiduciary
b. Client
If someone gets a deed at a foreclosure sale saying the bank had the right to seize it, what deed is this? a. Deed in lieu b. Special warranty c. General Warranty d. Trustees deed
b. Special warranty
A 15 year old inherited property, is the contract? a. Void b. Voidable c. Enforceable d. Invalid
b. Voidable
A person required to hold an active real estate license is someone who a. auctions farmland b. is personal representative of an estate c. acts as a court-appointed trustee d. is certified public accountant acting with the scope of her professional duties
b. is personal representative of an estate
Subdivision plat approved. Once approval is granted what is the next step that must be taken? a. utility inspection b. the plat must be recorded c. building permits d. a public hearing must be held
b. the plat must be recorded
Select the true statement regarding adverse possession of real property. a.)All states have the same requirements regarding the adverse possession of real property. b.) To successfully acquire real property through adverse possession, the possessor's possession must be observable. c.) A possessor may acquire real property through adverse possession even if his or her possession has been sporadic. d.) Adverse possession usually involves compensation given by the possessor to the former owner.
b.) To successfully acquire real property through adverse possession, the possessor's possession must be observable.
30. Which of the following substances is a colorless, tasteless, and odorless radioactive gas? a . asbestos b. carbon monoxide c . radon d. ozone
c . radon
what type of mortgage loan is likely to be tied to a publicly available index that is mutually acceptable to the lender and the borrower? a) renegotiable rate mortgage b) graduated payment mortgage c) adjustable rate mortgage d) Freddie Mac
c) adjustable rate mortgage
1.A lender may add 1/12th of the estimated cost of the annual property taxes and hazard insurance on the mortgaged property to the monthly loan payment deposit in: a) a PMI account b) a margin account c) an impound, escrow, or reserve account d) an adjustment account
c) an impound, escrow, or reserve account
79.Which of the following is a violation of a property managers fiduciary obligations to an owner a) disclosing information about a property physical defects b) providing booklets about lead based paint to tenants c) hesitating to verify a tenants income d) accepting a signed lease on the owners behalf
c) hesitating to verify a tenants income
40.A property sold for $150,000. The loan to value ratio was 80% and was two discount points charged. Which of the following was a cost of the discount points a. $600 b. $1500 c. $2400 d. $3000
c. $2400
A buyer has specified in writing an interest in purchasing a property without any legal obligation and without defining a specific project. This is referred to as? a. An option b. No binding option c. A letter of intent d. A project intent letter
c. A letter of intent
A broker with a license in referral status is permitted (authorized) to do which of the following? a. Refer listing to the broker's previous Managing Broker for a fee. b. Conduct open houses on behalf of the other licensees. c. Appraise real estate for a fee. d. Act as a showing assistant for Managing Broker
c. Appraise real estate for a fee.
Discount points? a. Increase yield to seller b. Decrease yield to seller c. Increase yield to lender *** d. Decrease yield to lender
c. Increase yield to lender
Buyer and seller enter into a contract. The buyer refuses to purchase for a reason not to excused by a contingency. Which statement is correct? a. The seller is entitled to damages the buyer caused, which are taken from either the earnest money deposit or the 20% down payment. b. The original buyer gets the earnest money deposit back as soon as there is a new offer. c. The seller has the right to terminate the contract and keep the earnest money deposit. *** d. The seller has the right to keep 20% of the down payment on property.
c. The seller has the right to terminate the contract and keep the earnest money deposit.
85.Time is of the essence means a. Time limit set forth in the contract must be carefully observed b. Nothing c. You must perform every act under the contract on the exact date d. You must close as fast as you can
c. You must perform every act under the contract on the exact date
Which of the following statements about a Georgia real estate salesperson's license which is on inactive status is correct? a. The licensee must be affiliated with a broker during the time it is inactive b. The licensee may activate the license by taking 6 hours of continuing education courses for each year that the license was inactive c. Licenses which are inactive do not expire d. If the license is inactive for more than two years, the licensee must take the 25 hour postlicense course whether or not it had previously been taken
d. If the license is inactive for more than two years, the licensee must take the 25 hour postlicense course whether or not it had previously been taken
What is the difference between market value and market price, if any? a. There is no difference. b. Market value is a broker's estimate; market price is a precise number derived by a licensed appraiser. c. Market value is an average price derived from comparable sales; market price is a price based on the cost of creating the property. d. Market value is an estimate; market price is the price at which a property sold.
d. Market value is an estimate; market price is the price at which a property sold.
56.Which disclosure is the most commonly requires in a residential real estate sale a. Radon b. Lead based paint C. Neighborhood composition d. Seller's property disclosure
d. Seller's property disclosure
Sellers broker negotiating to convince lender to accept less than the balance due as satisfaction to the debt.? a. Negotiated balance reduction b. Equitable redemption c. Debt forgiveness d. Short sale
d. Short sale
A broker listed a home. The listing agreement must be delivered to the owner? a. Within three business days b. In triplicate c. Within five business days d. Upon signing the agreement
d. Upon signing the agreement
Real estate taxes that are paid in advanced are prorated on the closing statement as. a. no entry to buyer; a credit to seller. b. no entry to buyer; a debit to seller. c. a credit to buyer; a debit to seller. d. a debit to buyer; a credit to seller.
d. a debit to buyer; a credit to seller.
A seller has listed a home with a broker for $112,000. The seller is leaving for a 45-day cruise midway through the listing period, and authorizes the broker through a limited power of attorney to accept any offer of all cash at a price of $108,000 or more pending his return. The broker receives an offer for $110,000 all cash. The broker a. must forward the offer to the seller's attorney for consideration b. may not accept the offer until the seller returns c. may sign a deed of conveyance if the seller does not return on time. d. may accept the offer
d. may accept the offer
A couple applied for a loan to finance the purchase of a new home. What federal act was created to ensure that they have knowledge of all closing costs? a. fair credit reporting act b. equal credit opportunity act c. uniform settlement act d. real estate settlement procedures act
d. real estate settlement procedures act
1. A licensee is emailing information regarding an open house for one of her listings. In addition to complying with state-specific requirements for advertising, which of the following must also be included in the email? A Opt-out provision B How the recipient's name was obtained C Complete property address D Listing sale price
A Opt-out provision
41. If a home warranty program is to be offered on a listing, the licensee should A) Provide a list of contractors who can make the necessary repair B) Specify who will pay the one-time insurance premium C) Find a private insurance who will administer the warranty D) Suggest the seller wait for a prospective buyer to ask for it
A) Provide a list of contractors who can make the necessary repair
a claim based on adverse possession of property must not be A) notorious B) open C) hostile D) secretive
A) notorious
67 .An easement by necessity could be granted if A. An owner could not access his property. B. A cable company could not repair phone lines. C. A railroad company would need to reroute tracks. D. A gas company could not access a new subdivision.
A. An owner could not access his property.
A seller is offering his property for sale in as-is condition. A buyer enters into a contract with the seller and has the home inspected. The inspection reveals a latent defect known to, but not disclosed by the seller The buyer A. Can void the contract due to the seller's failure to disclose the latent defect B. Can reduce the contract sales price by the cost of correcting the defect C. Must go through with the purchase because the house is being sold as is D. Can force the seller to correct the defect
A. Can void the contract due to the seller's failure to disclose the latent defect
Which of the following will not terminate an offer to purchase real estate? A. Death of the offeror/offeree. B. Conditional acceptance of the offer by the offeree. C. Revocation by the offeror after being notified by offerees acceptance. D. Failure to accept offer within time stated therein by the offeree.
A. Death of the offeror/offeree.
When a licensee advertises a property for sale of for lease using a franchised trade name, the advertisement MUST contain the A. Listing broker's name and phone number B. Broker's name as licensed with the Colorado Real Estate Commission C. Broker's name in smaller print than the trade name D. Address and phone number of the franchisor
A. Listing broker's name and phone number
14. A buyer purchased a home using a VA loan. An appraiser was assigned to estimate the value of the property for the lender. The appraised value was determined to be less than the contract price. If the buyer really wants the property, which of the following choices is the buyer's BEST option? A. Make up the difference between the contract price and appraised value in cash. B. Do nothing because the seller must sell the property at the appraised value. C. Hire an appraiser and see if a second appraisal yields a higher appraised value. D. Seek an FHA lender who will automatically make up the difference between the contract price and the appraised value.
A. Make up the difference between the contract price and appraised value in cash.
84.Mary knew that her marriage was on shaky ground when she bought a house in her own name. She was hoping to save the relationship, so she wrote a quitclaim deed conveying the property from herself to herself and her husband as joint tenants, NOT as tenants in common with full rights to survivorship. She told her husband she had done this, but the deed was NOT recorded. When Mary and her husband finally divorced, the deed disappeared. In a state, which is NOT a community property or curtesy state, does the ex have a claim to the property? A. No, however, had the deed been recorded, it would have served constructive notice and such would be defensible B. Yes, she told him it existed and the courts always accept oral argument when it relates to real property C. As they were legally married at the time of the conveyance he automatically owns a one-half interest D. As he did not sign the original conveyance as grantee, it was not a legal deed
A. No, however, had the deed been recorded, it would have served constructive notice and such would be defensible
31. Under an option to buy, the ownership of land will change when the A. Option is signed by parties B. Option or does not fulfill the obligation C. Optionee exercises the option D. Specific time has expired
A. Option is signed by parties
Which of the following will NOT be considered relevant if HUD investigates a prospective home buyer's allegation of discriminatory treatment by a licensee in a brokerage office? A. Records of the houses shown and properties suggested to the prospective buyer B. Whether or not the HUD Equal Housing Opportunity post is displayed in the office C. Whether the licensee believed she was acting in the best interests of the prospective buyer D. The reports of undercover testers who visited the office
A. Records of the houses shown and properties suggested to the prospective buyer
35. A broker has a single agency relationship with the seller. Any REQUIRED property condition disclosure would be completed by the A. Seller B. Broker C. Agent on behalf of broker D. Agent on behalf of seller
A. Seller
26. If a sales associate is an independent contractor A. The IRS can require the with holding of income tax B. A sponsoring broker has no right to supervise a sales associate C. A sponsoring broker has no responsibility for the sales associate D. The sales staff is exempt from withholding if complient with IRS regulations
A. The IRS can require the with holding of income tax
25.A broker has listed a property for $225,000. An offer of $210,000 contingent upon inspection comes in the first week and the seller accepts it. Another offer of $205,000 comes in the second week. The seller accepts it as a secondary offer contingent upon the termination of the first offer. The first offeror demands the seller spend $5,000 in repairs before going through with the purchase. The seller may do all of the following EXCEPT A - agree to do the needed repairs and consummate the transaction with the first offeror. B - ignore the demand and sell the property to the second offeror. C - terminate the first agreement in writing and sell to the second offeror. D - refuse to do the repairs and still proceed with the sale in as is condition.
B - ignore the demand and sell the property to the second offeror.
81. Alpha realty's policy manual states that it charges a 6% commission and it offers a 3% cooperative fee to any selling brokerage. A licensee from beta realty represents a buyer who purchased a property listed by Alpha for 450000 Beta paid the buyer's licensee 55% how much was the buyer licensee paid? A.6075 B .7425 C.13,500 D.14,850
B .7425
A condominium complex is exempt from fair housing requirements regarding housing for families with children if it? A: Is at least 2 years old B Has capacity of 80% seniors 65 and older C: Is intended as an investment D: Houses recovering alcoholics
B Has capacity of 80% seniors 65 and older
Broker A has created an extremely aggressive business model which has allowed for very quick success in the market. The other brokers in the market area have decided not to allow broker A to show their listings or show broker A's listings. This would violate: A Regulation Z B The Sherman antitrust act C The real estate boycott act D The real estate settlement procedures act
B The Sherman antitrust act
91. In a real estate transaction, two Illinois licensees sponsored by the same brokerage firm may disclose confidential information only to the A) Other licensee B) Designated managing broker C) Client and the other licensee D) Other licensee and the designated managing broker
B) Designated managing broker
Which of the following statements about airborne radon is TRUE? A) it has an easily detectable odor B) it is only found in older wood frame structures C) it is inexpensively detected and mitigated D) It is not harmful to adults who do not smoke
C) it is inexpensively detected and mitigated
1. A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If he accepts, which of the following will be true? A Because it is voluntary, it will not be adverse item on the buyer's credit B. The lender will take the title subject to any junior liens C The lender will usually retain his rights under mortgage insurance or VA guarantee D The loan will still be assumable
B. The lender will take the title subject to any junior liens
Which among the following is considered as features of the sole proprietorship ? A. Limited liability B. Unlimited liability C. No responsibility D. No liability
B. Unlimited liability
22.A home is being purchased for $275,000. The buyer agrees to an 80% loan with the seller paying $5,000 of the buyer's closing costs. What amount will the buyer have to meet his down payment: A) 45,000 B) 50,000 C) 55,000 D) 60,000
C) 55,000
Which of the following is the BEST example of the protection offered by Fair Housing laws to a person with a disability? A) Any multi-story building with four or more dwelling units must have an elevator B) Any person with a mental disability, regardless of the degree of disability, must be allowed to rent C) A person who is blind and uses a seeing eye doc must be allowed to rent in a building that does not allow pets D) A lessor must make modifications to a rental units to allow any person with a physical disability to rent
C) A person who is blind and uses a seeing eye doc must be allowed to rent in a building that does not allow pets
Fees collected by the Real estate commission are held: A) by the real estate commission members B) in the commissioners personal checking account C) in the general fund of the state treasury D) in an interest bearing trust account
C) in the general fund of the state treasury
A low loan-to-value ratio indicates a A) lower equity in the property B) greater risk of foreclosure C) higher equity in the property D) greater use of leverage
C) higher equity in the property
A salesperson is faxing listings to potential buyers. The faxes must contain the: A) address of the listed properties B) list price of each property C) name and phone number of the listing firm D) expiration date of each listing
C) name and phone number of the listing firm
10.which of the following best defines a material fact in the real estate context? A. a property deficiency that must be recorded at the time of sale. B. a representation made on a licensee's marketing sheet that has been verified by the licensee C. A fact significant enough to influence an individual's decision about whether or not to purchase D. a latent deficiency of a property that may be disclosed to a prospective buyer only if an offer is made
C. A fact significant enough to influence an individual's decision about whether or not to purchase
97 A condominium developer has two restrictive covenants in the declaration of restrictions. One is that all units be owned by unmarried person, and the other is all units must be used for residential purposes. If the first provision is declared invalid by court order, will the second remain in force? A. Yes because it is not affected by the court order. B. Yes, because condominiums may not be used for commercial purposes C. No because once one provision is invalidated, the rest automatically become invalid. D. No because the developer must first receive the agreement of all affected parties before the second provision becomes valid again.
C. No because once one provision is invalidated, the rest automatically become invalid.
A licensee is the property manager for a shopping center. The shopping center owners tells the licensee to avoid internet marketing because he distrusts the technology. The licensee discusses this with the owner, but eventually complies. The licensee's compliance is due to the duty of A. Care B. Loyalty C. Obedience D. Fair dealing
C. Obedience
2.In a mortgage/trust deed form of loan the terms of payment and interest rate would be found on the A. Deed B. Loan application C. Promissory note
C. Promissory note
82.In a mortgage/trust deed form of loan the terms of payment and interest rate would be found on the A. Deed B. Loan application C. Promissory note
C. Promissory note
12.A real estate licensee is a cc of a local title company. It is permissible for the licensee to tell all of his clients to use this company when A) it is in the best interest of the client. B) the licensee does not ask for other recommendations. C) the client does not ask for other recommendations D) the licensee discloses his interest in the company to the client.
D) the licensee discloses his interest in the company to the client.
20. negative amortization is A.-the number of basis points a lender adds t an index to determine the interest rate of an adjustable rate mortgage B. -the result of every interest only mortgage loan C. -insurance coverage on a real estate hat compensates the owners for physical damage to a property from fire, wind or other hazards D. -an increase in mortgage debt that occur when they monthly payment is not large enough to cover the interest due
D. -an increase in mortgage debt that occur when they monthly payment is not large enough to cover the interest due
which of the following best completes the following metes and bounds description? beginning at the intersection of bunker hill road and munson avenue, thence 150 feet south, thence 85 feet west, thence 150 feet north, thence: A. 150 feet south to POB B. 150 feet west to POB C. 85 feet west to POB D. 85 feet east to POB
D. 85 feet east to POB
48. A buyer is interested in buying a home in an older neighborhood where new sidewalks have just been installed. The buyer contacts his own real own estate broker and signs a buyer agency agreement. His agent shows him the property, which is listed with a different company. The only taxes mentioned in the MLS information are the general real estate taxes. When asked, the seller says she knows of no other taxes against the property. The buyer's agent should A. Heck with the state to see if there is a special assessment pending B. Say nothing to the buyer because it is not discussed in the listing information C. Take the seller's word that there are only general real estate taxes on the property. D. Advise the buyer that there may be special assessments levied against the property.
D. Advise the buyer that there may be special assessments levied against the property.
66. An Illinois real estate broker in a real estate transaction is permitted to A. Sell their personal home without disclosing license status B. Advertise a property without permission from the owner C. Deliver escrow money D. Explain legal points in a contract
D. Explain legal points in a contract
Which of the following does not buy loans in the secondary mortgage market? A. Federal National Mortgage Association B. Government National Mortgage Association C. Federal Home Loan Mortgage Corporation D. Federal Housing Administration
D. Federal Housing Administration
What's the major difference between freehold estate and leasehold estate?A. Have an ownership interest B. Terminate upon the death of the person on whose life they are based C. Are estates of inheritanceD. Are estates for a fixed term D. Have an ownership interest
D. Have an ownership interest
When doing the sales comparison approach, the comparable property has a fireplace. The subject property does not have a fireplace. Which of the following adjustments should be made? A. The subject property should be adjusted upwards. B. The subject property should be adjusted downwards. C. The comparable property should be adjusted upwards. D. The comparable property should be adjusted downwards.
D. The comparable property should be adjusted downwards.
73. a licensee's advertisement for a home is perfect for single mothers with two small children "which of the following does this advertisement violate? A. The Sherman anti trust act B. The civil right act of 1968 C. State law in a majority of state D. The feral fair housing act
D. The feral fair housing act
61. a licensee must provide disclosure of licensed status when acting as a principal if A. Any relative of the licensee has ever lived in the residence B. The agent of the other party asks about this specifically C. The licensee does not have eros and omission insurance D. The licensee has any economic interest in the property
D. The licensee has any economic interest in the property
Fred is a licensee at ABC realty and he has a listing to sell 123 Main St. The listing will not expire for 70 more days. If Fred decides to move his license to QRS Realty, what is the status of the listing? A. Fred cannot qualify for any part of the commission even if Fred finds a buyer who purchases 123 Main St during the listing period B. It is Fred's listing so he will automatically get the listing commission when the property sells regardless of the change of brokerage companies C. Fred can inform both the seller and the principal broker of ABC Realty that he is moving the listing to QRS Realty and continue to market the property D. The listing belongs to the firm, ABC Realty, and the rights to a commission if the property sells during the listing will be determined by the policies of ABC Realty
D. The listing belongs to the firm, ABC Realty, and the rights to a commission if the property sells during the listing will be determined by the policies of ABC Realty
May a licensee who is NOT the listing agent hold an open house for the listing broker within the same company? A. Yes, but the licensee would have to disclose to visitors that only the listing broker could write up an offer. B. No, because the licensee does not represent the seller and would be a conflict of interest C. No, the licensee would need to sign another listing with the seller to hold the open house. D. Yes, this would be allowed with appropriate disclosure and permission from the seller
D. Yes, this would be allowed with appropriate disclosure and permission from the seller
A broker lists several newly constructed affordable homes of a builder client. The broker wishes to advertise these homes targeting first time buyers. Which of the following financing terms in the advertisement would trigger further financial disclosure requirements under the Truth-in-Lending Act? A. Terms to fit your budget B. FHA and VA financing available C. easy monthly payment plans available D. buy for less than $5000 down for a monthly payment under $850
D. buy for less than $5000 down for a monthly payment under $850
A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If he accepts, which of the following will be true? A. Because it is voluntary, it will not be adverse item on the buyer's credit B The lender will take the title subject to any junior liens C The lender will usually retain his rights under mortgage insurance or VA guarantee D The loan will still be assumable
The lender will take the title subject to any junior liens
1. 42. An owner who lives out of state contacts a licensee who is in the state where the owner's property is located. The owner hires the licensee to sell the property for $150,000. The licensee realizes that the land is in an area that has recently been rezoned for a higher use. He tells the owner he will purchase the property himself. He does so, and, 3 weeks later, sells the same property for $175,000. Which of the following statements about this situation is correct? a. The licensee cannot legally act as an agent for an owner who lives out of state without either an active license from that state or the help of a cooperating out-of-state licensee b. Since the property sold at a profit within 6 months after the purchase, the licensee must inform the owner of his selling price c. The licensee can legally purchase the property only after informing the owner of the zoning change and how it will affect the property. d. As long as the licensee has informed the owner of his intentions to purchase the property himself, his actions are proper and legal
a. The licensee cannot legally act as an agent for an owner who lives out of state without either an active license from that state or the help of a cooperating out-of-state licensee
71. Which of the following would not qualify as a like-kind 1031 tax-deferred exchange? a. an apartment building for an industrial building b. a waterfront rental home for a mobile home park c. a two family home for a small apartment building d. an office building for a 20 year lease on a retail pad site
a. an apartment building for an industrial building
