Section 2 - Working with Buyers in Alabama

C

A licensee who is acting as either a buyer's agent or a seller's agent is acting in which of the following capacities under RECAD? A. A limited consensual dual agent B. An undisclosed dual agent C. A single agent D. A transaction broker

D

Angela is real estate broker Rene's buyer customer. What can Rene do for Angela? A. Advise Angela on how to structure her offer. B. Negotiate terms and price on Angela's behalf. C. Review documents for accuracy. D. Submit Angela's offer to the seller.

C

Avery is about to close on his first home. What will protect him from financial loss if his ownership later comes into question? A. Abstract of title B. Chain of title C. Title insurance D. Title search

A

Becky is speaking to a group of licensees about the importance of listening skills. Which of the following is a true statement? A. Most of our communication consists of body language and voice quality. B. Most of our communication consists of facial expression. C. Most of our communication consists of words. D. When we communicate it's what we say, not how we say it, that conveys the message.

A

Brenda is discussing ways in which buyer Brett can make his offer more attractive to the seller. Which type of relationship is probably in place? A. Buyer agency B. Dual agency C. Non-agency D. Seller agency

B

Broker Morgan enters into a brokerage agreement with buyer Suzanne. Which of the following does brokerage law require of this agreement? A. It must be signed and notarized. B. It must include a statement of the terms and conditions of the brokerage services. C. It must include the state's official seal. D. It must include the text of the Consumer Information Booklet.

B

Darren and Natalie are first-time buyers who have decided to purchase a newly built townhouse. Their agent, Jenner, tells them that the builder must provide a one-year home warranty. Which of the following conditions must be true? A. Darren and Natalie are getting a USDA rural development loan. B. Darren and Natalie are using an FHA-insured loan. C. Darren and Natalie are using conventional financing. D. Darren and Natalie made an all-cash offer.

D

Debbie deals with demanding buyer clients every day, so she's a pro at understanding that untempered desires are _______. A. Deal breakers B. Determining factors C. Needs D. Wants

A

Filomina is preparing to sell her home and thinks she should test for radon. Which of the following options about radon testing is true? A. Filomina can hire a professional to perform the test, or she can buy a test kit and submit it to a lab for analysis. B. Filomina can purchase a home test kit and interpret the results herself. C. Filomina is required to test for radon and perform any necessary mitigation before placing her property on the market. D. Filomina must hire a certified testing company to perform the radon test and interpret the results.

C

How must qualifying broker Rudy ensure that his affiliated licensees understand the types of agency relationships allowed at their brokerage? A. Continually update the brokerage's agency disclosure office policy and hold a formal training with his licensees every six months to ensure they understand the current policy. B. Create a 16-by-24-inch poster identifying the types of agency relationships permitted and hang it throughout the brokerage. C. Provide a copy of the brokerage's agency disclosure office policy and explain it to his licensees at least once a year. D. Test his licensees at least every quarter on the types of agency relationships permitted and hold special trainings for anyone who doesn't pass the test.

D

In accordance with Regulation Z, which of the following is considered a trigger term? A. Low down payment options. B. Low finance charges. C. Manageable monthly payments D. Pay just 10% down.

C

In the buyer customer relationship, which of the following is something you should do? A. Disclose material facts only to the seller. B. Represent the buyer. C. Represent the seller. D. Suggest negotiation terms.

C

In what ways do people communicate? A. Oral expression B. Oral expression and written language C. Words, tones, gestures, body language, and facial expressions D. Written language

B

In which of the following types of financing does the seller hold a mortgage from the buyer for some or all of the purchase price? A. Assumable mortgage B. Purchase money mortgage C. Traditional mortgage financing D. VA and FHA financing

D

James is acting as a dual agent for seller Kris and buyer Bob. Which of the following is required for James to act in this capacity? A. He must get AREC's written permission. B. He must get the parties' verbal or written consent at closing. C. He must get verbal consent from the buyer and seller. D. He must get written, informed, advance consent before entering into the relationship.

B

Jane is a licensee who is an expert at identifying and accomplishing her client's goals. She understands that every client is different. If her approach doesn't seem to be working, she quickly changes course and does something else. When she does this, she is demonstrating __________________. A. Acuity B. Flexibility C. Outcome D. Visualization

B

Johnstone's Realty is a new discount, menu-based brokerage firm. Its approach usually results in a lower listing commission rate than other firms offer. Johnstone's also offers a lower cooperating brokerage split than most other firms. Business is booming for Johnstone's, and the remaining firms in town are concerned. These brokers agree to not show Johnstone's listings to their buyer clients. What is this an example of? A. Blockbusting B. Group boycotting C. Market allocation D. Steering

D

Kat knows she must advocate on her buyer client's behalf. What does this mean? A. She must put her client's interests ahead of those of all other parties, even if it means breaking the law. B. She must put her client's interests ahead of those of all other parties, unless her broker tells her otherwise. C. She must put her client's interests ahead of those of all other parties, without exception. D. She must put her client's interests ahead of those of other parties, unless doing so violates her duties to another party.

B

Lacey is a licensee who can quickly change course and adapt to various individuals and situations. What quality is she demonstrating when she does this? A. Acuity B. Flexibility C. Outcome D. Vision

D

Lincoln has been working with Kennedy, a buyer customer. What can Lincoln do for Kennedy if Kennedy hasn't signed a buyer agency agreement? A. Discuss financing strategies with Kennedy. B. Discuss ways to make Kennedy's offer more competitive. C. Review an offer for accuracy. D. Submit Kennedy's offer on a listing.

D

Luis met buyer Shawn at the coffee shop for the first time this morning and started talking about Shawn's plans for buying a house. They haven't signed any brokerage agreements at this point. In what capacity is Luis acting for Shawn? A. A limited consensual dual agent B. A single agent C. A sub-agent D. A transaction broker

A

Related to title insurance, what is "subrogation"? A. A covered party grants permission to the title company to pursue the party who caused a claim or loss. B. The act of conveyance when the seller turns over all property rights to the buyer with a clear, marketable title. C. The process by which the lender receives coverage under a title insurance policy the borrower has purchased. D. The process by which the title policy pays out any claims to the buyer or lender.

C

Shondra is acting as a buyer's agent for Tim and Johanna in a real estate transaction. What's the best description of her role? A. A limited consensual dual agent B. An illegal dual agent C. A single agent D. A transaction broker

A

Some groups of people are more vulnerable to lead poisoning and its effects than others. Of those listed, who is most vulnerable? A. Children B. Men C. Pets D. Women over age 70

A

Stucco-like building materials that are susceptible to rain penetration, drying issues, and drainage problems are called _________. A. Exterior insulation and finish systems (EIFS) B. Fascia C. Overhang D. Soffit

D

The ADA was established, among other reasons, to ensure that people with disabilities have access to the same locations as those without disabilities. The ADA creates a set of standards that designers and builders must follow ______. A. Only for buildings deemed "residential" B. Only when altering buildings built after 2010 C. Only when building new buildings D. When building new or altering older facilities

C

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

B

The ability to quickly change course and adapt yourself to various individuals and situations is known as ___________________. A. Acuity B. Flexibility C. Outcome D. Visualization

A

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

D

To which of the following borrowers might a lender be most likely to recommend an FHA loan? A. An investor who intends to use equity in another investment property as his down payment B. A retired couple interested in downsizing from a large four-bedroom house they own free and clear to a condominium C. A single stockbroker with a $40,000 down payment and significant assets in a stock portfolio D. A young couple with only a few thousand dollars saved for a down payment and relatively low credit scores

A

What are the primary types of financing available to a buyer? A. Conventional, VA/FHA, and assumable mortgages B. Purchase money mortgage, VA, and FHA C. The bank of mom and dad, loan shark D. Traditional and money mortgage

C

What is the most common way that asbestos enters the body? A. Asbestos coating in water pipes can contaminate drinking water, which is then ingested. B. Asbestos in paint can be released into the air as the paint peels, which is then inhaled or ingested. C. When asbestos fibers decay or are disturbed, the friable particles can be inhaled. D. When rocks and soil decay, asbestos gas is released, which is then inhaled.

B

What's the purpose of pre-qualification? A. To be pre-approved B. To determine in which price range the buyer should shop C. To determine the market value of the home D. To guarantee the seller that the buyer can qualify for a loan

A

When a client simply must have something in order for the transaction to proceed, it's considered _______. A. A need B. An item that would be nice to have C. An untempered desire D. A want

A

When his buyer client said, "If there's no garage, I'll walk away," Eric understood that this meant the garage was _______ for the buyer. A. A need B. An item that would be nice to have C. An untempered desire D. A want

D

When there's no buyer agency agreement in place, which of the following tasks can a licensee perform for the buyer? A. Discuss financing strategies. B. Discuss ways to make an offer more attractive to the seller. C. Review an offer for accuracy. D. Submit an offer on a listing.

C

Which Alabama law requires purchase agreements to stipulate who is representing each party in the transaction? A. Alabama Adverse Possession B. Homestead protection C. RECAD D. Regulation Z

A

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

D

Which of the following is something a licensee would typically do for a buyer customer? A. Discuss financing strategies. B. Discuss ways to make the buyer's offer more attractive to the seller. C. Review offer documents for accuracy. D. Submit all offers to the seller promptly.

A

Which of the following is/are illegal? A. Both disparate impact and disparate treatment B. Disparate impact C. Disparate treatment D. Neither disparate impact nor disparate treatment

D

Which of the following optional documents explains the various brokerage arrangements available for licensees to provide to consumers in Alabama? A. A Guide to Alabama Brokerage Arrangements B. Consumer Relationships Under RECAD C. The Alabama Real Estate Institute form D. The consumer information booklet

A

Which of the following property details can be verified online without previewing a property in person? A. Neighborhood information B. Noise C. Seller property disclosures D. Traffic

C

Which of the following statements is true of the mortgage commitment stage of the loan approval process? A. Funds for taxes and insurance are collected at the time of pre-approval. B. The lender is required to issue a loan once the borrower has been pre-approved. C. The underwriter determines if a loan meets the lender's underwriting standards. D. Underwriting is performed before the loan package is complete.

D

Which of the following statutes is designed to ensure that lenders provide applicants with timely information about the total financial charge over the life of the loan? A. Equal Credit Opportunity Act (ECOA or Regulation B) B. Fair Housing Act C. Real Estate Settlement Procedures Act (RESPA or Regulation X) D. Truth in Lending Act (TILA or Regulation Z)

A

Which of the following would a home inspector note as a defect in a report, due to its link to lung cancer? A. Asbestos tiles in a basement B. Cedar shake siding C. Copper water pipes D. Old linoleum tiles in a kitchen

A

Which of these landlord policies is discriminatory? A. All residents must show a U.S. birth certificate as part of the application process. B. Max occupancy in an apartment may not exceed fire regulations. C. No barbecue grills are allowed on balconies. D. No skateboards allowed on the historic hardwood floors.

A

Your buyer client, Percival, was pre-approved for the exact amount he needed to buy the home of his dreams, and he made an offer that was accepted by the seller. What's his next step? A. Complete a loan application. B. Obtain pre-approval from another lender. C. Review the underwriter's decision. D. Sign a purchase agreement.

C

Your buyer is worried that after she closes on her property, she'll find out someone else has a claim to its ownership. What can reassure her? A. Abstract of title B. Chain of title C. Title insurance D. Title search

C

______ is naturally created when the gas in rocks and soil decays. It can cause cancer. A. Asbestos B. Lead paint C. Radon D. Silicone