Section 44 unit 2 exam
A borrower has a 30-year, $500,000 loan with an interest rate of 6.25%. His monthly principal and interest payment is $3,078.59. What's the total amount he'll pay over the life of the loan? A. $1,108,292.40 B. $500,000 C. $608,292.40 D. $750,000
$1,108,292.40
Helen is purchasing a home for $150,000 and provides a $2,500 earnest money check to the seller, which will be applied to her down payment. She's financing the transaction, and her closing costs and down payment total $4,800. How much should Helen bring to the closing? A. $2,300 B. $2,700 C. $4,800 D. $7,300
$2,300
Henry submits an offer on a condo and includes an earnest money check for 10% of his offer, which the seller accepts. Later on at closing, he brings a cashier's check for $34,450 (comprising the remaining half of his 20% down payment and $7,950 in closing costs). What's the condo's purchase price in whole dollars? A. $132,500 B. $265,000 C. $344,500 D. $88,333
$265,000
Bob and Mary are financing $180,500 for a new home. Their lender will approve an interest rate of 5% if Bob and Mary pay two discount points at closing. How much will this cost them? A. $180.50 B. $32,000 C. $3,610 D. $9,025
$3,610
Kelly is purchasing a property that has an assessed value of $160,000. If the tax rate is 2.5%, what will Kelly likely pay annually in property taxes? A. $160 B. $400 C. $4,000 D. $40,000
$4,000
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? A. $115 B. $500 C. $570 D. $575
$575
Jared has a 70/30 split with his brokerage firm, and his firm has a 50/50 split with cooperating brokerages. Last month, he was paid $12,239.50 in commissions from his home sales, which totaled $538,000. Assuming every transaction for the month was shared with a cooperating brokerage, what is Jared's brokerage's commission rate? A. 2.3% B. 3.8% C. 6.5% D. 7.6%
6.5%
A buyer is purchasing a home for $400,000 and is financing $300,000. What is the loan-to-value ratio? A. 72% B. 75% C. 82% D. 96%
75%
How many acres are in a parcel described as, "The S 1/2 NW 1/4 Section 3, Township 4N, Range 2W of the 6th PM"? A. 160 B. 20 C. 40 D. 80
80
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.
A covered party grants permission to the title company to pursue the party who caused a claim or loss.
Which of the following is an example of constructive eviction? A. A landlord locks a tenant out of her unit after she fails to pay her rent for three months. B. A tenant chooses not to renew a lease when the term expires and moves out. C. A tenant dies. D. 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.
Which of these is excluded on a title insurance policy on Martha's property because of the schedule of exceptions? A. A mechanic's lien recorded by A1 Siding and Windows B. A verbal lease agreement Martha has with her neighbor who leases Martha's garage C. Last year's unpaid property taxes D. The current year's unpaid property taxes
A verbal lease agreement Martha has with her neighbor who leases Martha's garage
Kenneth entered into a contract to sell his home to Valerie, who put down a $5,000 earnest money deposit. At the last minute, Valerie backed out of the deal, and Kenneth kept the earnest deposit. This is an example of ______. A. Accepting liquidated damages B. Accepting partial performance C. Suing for damages D. Suing for specific performance
Accepting liquidated damages
Carlson presents a real estate purchase contract to his clients. Along with the contract are several supplemental documents attached to it. What are these called? A. Addendums B. Amendments C. Pro-rata D. Querries
Addendums
The town planning and zoning board is considering some new zoning regulations to ensure that one of the neighborhoods maintains its designation on the National Register of Historic Places. What type of zoning are they likely to enact? A. Aesthetic zoning B. Bulk zoning C. Incentive zoning D. Registry zoning
Aesthetic zoning
Camille, a buyer, wants to change the price already agreed to in a sales contract. What document should she use? A. Addendum B. Amendment C. Bill of sale D. New contract
Amendment
Simon is looking for a facility for a large grocery distribution operation. He found two options, one of which is offering him a triple net lease, and the other an absolute net lease. Why is his attorney arguing against the latter? A. An absolute net lease has no legal defenses if Simon fails to pay. B. An absolute net lease will cost more in the long run. C. Simon will still be responsible for insurance in an absolute net lease. D. Simon will still be responsible for taxes with an absolute net lease.
An absolute net lease has no legal defenses if Simon fails to pay.
Even though the Federal Trade Commission is concerned with all ad claims, what sort of ads would most likely concern the commission? A. Ads for products that don't offer any specific value to consumers B. Ads making exaggerated claims most reasonable consumers wouldn't believe C. Any ad that is demonstrably false D. Any ad that makes a health or safety claim or any claim that's difficult for the consumer to evaluate
Any ad that makes a health or safety claim or any claim that's difficult for the consumer to evaluate
Shane's buyers learned during the inspection that there was water damage around the fireplace and that the chimney needed new flashing and to be repointed. To whom must Shane disclose that information? A. Any party to the transaction B. Only the listing agent C. Only the sellers D. Only the sellers and the lender
Any party to the transaction
What type of value is of interest to taxing authorities? A. Assessed value B. Insured value C. Investment value D. Value in use
Assessed value
Tracy is looking in the MLS and sees a listing marked "REO." Which of these statements regarding REOs is correct? A. An REO property is one that the lender is trying to help the owner sell before beginning foreclosure proceedings. B. Banks acquire REOs through failed foreclosure sales or deed in lieu of foreclosure actions. C. REOs are properties that the lender has given permission to sell for less than the loan amount. D. REOs refer to investment properties a bank owns.
Banks acquire REOs through failed foreclosure sales or deed in lieu of foreclosure actions.
Desmond has a signed listing agreement with his clients, the Harpers. In exchange for helping the Harpers list, market, and sell their home, the Harpers have agreed to pay Desmond a commission. What type of agreement do Desmond and the Harpers have? A. Bilateral B. Executed C. Mutual D. Unilateral
Bilateral
Which of the following statements about independent contractors and taxes is true? A. Brokers don't withhold income or Social Security taxes for independent contractors. B. Brokers withhold income and Social Security taxes for independent contractors. C. Independent contractors don't pay income or Social Security tax. D. The IRS doesn't tax independent contractors.
Brokers don't withhold income or Social Security taxes for independent contractors.
You represent the buyer in one transaction and the seller in a different transaction. What type of agency relationship do you have with the buyer? A. Buyer agency B. Dual-licensee dual agency C. Seller agency D. Single-licensee dual agency
Buyer agency
Christine listed her house with you. Licensee Tailleur represents the buyer, Rebecca. The seller's mother, Freida, is paying your commission. Which of these factors determines how legal agency is determined in this situation? A. Christine listed the property with you. B. Christine's mother, Freida, owns the house you listed. C. Freida is paying your commission. D. Tailleur represents the seller.
Christine listed the property with you.
The Hendersons were hoping to list their home for $400,000; however, four other comparable homes in the neighborhood just went up for sale, and they now must list their property at $380,000 to sell quickly. Which economic principle is at work here? A. Competition B. Conformity C. Progression D. Substitution
Competition
______ is the principle that the more similar properties there are on the market, the lower the price will be driven. A. Competition B. Conformity C. Contribution D. Plottage
Competition
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 ________. A. Comprehensive plan B. Economic development plan C. Health and sanitation ordinances D. Zoning ordinances
Comprehensive plan
What type of loan is neither guaranteed nor insured by government agencies? A. Conventional B. Federal Housing Administration (FHA) C. U.S. Department of Agriculture (USDA) D. U.S. Department of Veterans Affairs (VA)
Conventional
Which mortgage clause requires the lender to discharge the mortgage lien once the borrower has paid in full? A. Acceleration B. Alienation C. Defeasance D. Due-on-sale
Defeasance
Margaret has an L-shaped living room. How would you calculate the area of this room? A. Divide the room into two rectangles, calculate the area of each, and add those together. B. Measure the room as if it were a single rectangle and compute the total square footage. C. Measure the room as if it were a single rectangle, compute the total square footage, and divide by two. D. Select the larger of the two rectangles that form this room, calculate its area, and multiply by two.
Divide the room into two rectangles, calculate the area of each, and add those together.
Home inspector Murray is explaining to first-time buyers what he looks for during a home inspection. What is his primary goal? A. Document health and safety issues that may affect both the cost and enjoyment of the home. B. Estimate how much cosmetic upgrades may cost the buyers. C. Verify lot lines and acreage calculations. D. Verify the presence of any easements or encroachment on the property.
Document health and safety issues that may affect both the cost and enjoyment of the home.
Seth is a licensee representing seller Dora. Which of these items is Seth required to disclose to prospective buyers about the property? A. Dora doesn't use the back door because the steps leading to the yard are rotted. B. Dora keeps sunflowers planted in the back yard because the local birds can eat the seeds. C. The neighborhood kids like to ride their bikes in Dora's driveway. D. The pink geraniums in the window boxes are fake.
Dora doesn't use the back door because the steps leading to the yard are rotted.
Natalie is a single mother of twins and receives government assistance to help make ends meet. She's been living with her mother for the last few years but really wants to buy her own home to gain some independence. She's got a little in savings and has good credit, but when a lender turns her away because she receives public assistance she worries that she'll never be able to get a loan. What act prevents automatic discriminatory practices by lenders and protects individuals like Natalie? A. Community Reinvestment Act B. Consumer Credit Protection Act C. Equal Credit Opportunity Act D. Home Mortgage Disclosure Act
Equal Credit Opportunity Act
Which of the following statements about escrow accounts is correct? A. An escrow account is a temporary account that's opened for use with a single transaction and closed after the transaction closes. B. An escrow account is held by either the buyer or seller, and houses the buyer's earnest money until closing. C. Escrow accounts are managed by brokerage firms, and hold funds used to pay operating expenses and agent commissions. D. Escrow accounts are managed by escrow agents, and are used to hold funds belonging to others, such as earnest money deposits.
Escrow accounts are managed by escrow agents, and are used to hold funds belonging to others, such as earnest money deposits.
Janice wanted to sell her townhome, and her neighbor was considering buying it. She wanted to put it on the market while she waited to find out if her neighbor was going to buy. In order to receive the best possible representation but avoid paying a commission if her neighbor buys the property, which type of listing agreement would best suit Janice's needs? A. Exclusive agency B. Exclusive right to sell C. Net D. Open
Exclusive agency
After purchasing a property, what can Jeremiah do to clear a possible future claim on the property's title? A. File a suit to quiet title. B. File suit against the lender. C. File suit against the seller. D. Have a second title search performed.
File a suit to quiet title.
The cost approach method Burt used before investing in his new community was highly dependent on his depreciation estimates. As they begin building the homes they realize the guest bedroom in each has a point of entry that prospective buyers do not like in the layout of the house. The depreciation of this design defect is ______. A. External depreciation B. Functional obsolescence C. Physical depreciation D. Reoccurring depreciation
Functional obsolescence
Jerome is developing an ad for three properties he has listed in an upscale community. He wants to keep it short and simple. Which of these would NOT trigger full disclosure under TILA? A. 10% down payment B. 30-year fixed rate with no points C. A monthly payment of $900 D. Get a low 4.925% APR
Get a low 4.925% APR
Two essential elements of a deed are the _________. A. Grantee's signature and the habendum clause B. Grantor's signature and conveyance clause C. Grantor's signature and grantee's signature D. Habendum clause and the habeus corpus clause
Grantor's signature and conveyance clause
What does the income approach to value rely on when valuing properties that are five or more units? A. Gross income multiplier B. Gross rent multiplier C. Monthly gross rent D. Sales comparison
Gross income multiplier
Brittany has a small office in a professional building. She has a set monthly lease payment that has been calculated to include maintenance of the common areas in the building, such as the restroom and small kitchen, and all nets, utilities, and janitorial charges for her space. The payment also includes taxes and insurance. The landlord takes these payments and pays the individual expenses himself. What type of lease does Brittany have? A. Graduated lease B. Gross lease C. Net lease D. Percentage lease
Gross lease
Title II of The Americans with Disabilities Act of 1990 prohibits discrimination based on disability in programs, services, and activities provided or made available by public entities. Which agency enforces Title II when it relates to state and local public housing, housing assistance, and housing referrals? A. ADA B. FHA C. HHS D. HUD
HUD
Marion gave her granddaughter Sheila the deed to a brand new home, on the condition that Sheila complete her PhD in astronautics. When Sheila dropped out of school and got a job as a greeter at a big box store instead, Marion ______ to regain ownership of the property. A. Had no recourse B. Had to purchase the property from Sheila C. Had to take legal action D. Wasn't required to take any action
Had to take legal action
Oliver is working to provide a buyer and a lender with a formal opinion of the value of the property the buyer is purchasing. What is Oliver's role? A. He's a certified or licensed appraiser. B. He's a home inspector. C. He's a real estate licensee. D. He's a tax assessor.
He's a certified or licensed appraiser.
Which of the following is a true statement about building code regulations? A. If there's no state or local building code to cover a situation, the national code applies. B. States have the authority to change national building code requirements. C. The building code provides the maximum standards for buildings. D. When state and federal building codes conflict, the less strict code prevails.
If there's no state or local building code to cover a situation, the national code applies.
You're a new licensee who's thrilled to be working with five different buyer clients. Under what circumstances is it appropriate for you to determine the earnest money amount for your clients? A. If the buyer is a first-time buyer B. If the buyer is buying a second home C. If the buyer seems confused D. In none of these circumstances
In none of these circumstances
Mr. Schroeder installed built-in bookcases that he intended to remain as part of the home forever. This refers to which part of IRMA? A. Independence of the item B. Intent of the parties placing the item on the property C. Relationship of the parties D. Replacement of the item
Intent of the parties placing the item on the property
Virginia is finally living her dream—she bought a coffeehouse in a charming college town. After she closed on it, her attorney sat down with her to discuss various business licensing and legal requirements she'll have to meet. Virginia was surprised to learn that her five-table establishment is affected by the Americans with Disabilities Act. What must be true about the coffeehouse? A. It includes at least 400 square feet of public space. B. It's a commercial enterprise that's open to the public. C. It sits in a city center. D. It was built after 1978.
It's a commercial enterprise that's open to the public.
The primary purpose of the Real Estate Settlement Procedures Act is to ensure that buyers ______. A. Can get federally guaranteed loans B. Get favorable interest rates C. Have mortgage options to choose from D. Know all settlement costs up front
Know all settlement costs up front
Layla, a licensee, has had a few casual meetings with a potential client, Marcus. Marcus has told Layla the type of home and locations he's interested in. Layla has mentioned a few homes that she thinks Marcus might be interested in. Although Layla hasn't said that she will continue to look for homes for Marcus, Marcus believes she'll do just that. Which of these statements about this situation is correct? A. Because Layla doesn't know if Marcus is working with another agent, she's just inadvertently created a dual agency situation. B. Because Layla has performed some agency tasks for Marcus, she has an express agency agreement with him. C. Layla and Marcus have no agency agreement, either express or implied, until Layla begins showing Marcus homes. D. Layla's actions may have created an implied agency agreement with Marcus.
Layla's actions may have created an implied agency agreement with Marcus.
Which statement about lead-related health problems is true? A. Lead can be traced to senioritis. B. Lead causes blindness upon contact with the eyes. C. Lead is associated with coronary heart disease. D. Lead may cause behavioral problems, learning disabilities, seizures, and, in extreme cases, death.
Lead may cause behavioral problems, learning disabilities, seizures, and, in extreme cases, death.
Lawrence is a buyer closing on a home for which he's obtaining financing. Which document will give Lawrence an estimate of the costs he'll likely pay at closing? A. Buyer Worksheet B. Closing Disclosure C. Loan Estimate D. Mortgage Disclosure
Loan Estimate
Putting clients' interests ahead of all others describes which fiduciary duty? A. Confidentiality B. Disclosure C. Loyalty D. Reasonable skill and care
Loyalty
In a trust, the trustee is the person who ______. A. Creates the trust B. Is empowered to void the trust for any reason C. Makes sure the terms of the trust are carried out D. Receives the benefits of the trust
Makes sure the terms of the trust are carried out
A couple of licensees you know from different firms are tired of competing with one another for the same listings. You overhear them saying, "You take the north side of town and I'll take the south, so we aren't stepping on each other's toes." You stop their conversation to tell them they're committing an antitrust violation. Which one is it? A. Group boycotting B. Market allocation C. Price fixing D. Tie-in arrangements
Market allocation
Which of these is an example of an agent NOT executing the duty of reasonable skill and care? A. Kevin, Corinne's buyer agent, helped her write her offer and reviewed it to make sure it was what she wanted before presenting it to the seller's agent. B. Marta agreed to list a commercial property even though her expertise is in residential real estate. C. Morgan is careful to protect and manage all his client's earnest money deposits. D. Rex promptly submits all offers to his seller client.
Marta agreed to list a commercial property even though her expertise is in residential real estate.
The MARIA acronym helps to identify the five tests of a fixture. Which of the following tests refers to how and whether the item is attached to the property? A. Adaptability of the item to the land's use B. Agreement of the parties C. Intention in placing item on land D. Method of annexation
Method of annexation
Roger is an unlicensed assistant in Dave's office. He performs tasks for several of the firm's licensees. Katherine is a licensed assistant and performs tasks for three of the firm's independent contractor licensees. The firm's broker, Michaela, has her own licensed assistant. Which of these statements best represents Michaela's liability for the acts of all these assistants? A. Michaela is only responsible only for her own personal assistant. B. Michaela is responsible for all licensees and employees associated with the firm. C. Michaela is responsible only for the licensed assistants. D. Michaela is ultimately responsible for her assistant and for Roger (the unlicensed assistant).
Michaela is responsible for all licensees and employees associated with the firm.
Which of these is an example of conversion of funds? A. Marcus converted a CD to cash and deposited it in the firm's operating account. B. Monica used funds from the firm's trust account to pay her firm's rent. C. Soo Min transferred funds from her firm's trust account to the closing company's trust account in time for settlement. D. Tristan deposited a client's earnest money check into the firm's operating account.
Monica used funds from the firm's trust account to pay her firm's rent.
Which clause in the listing agreement gives the listing broker the authority and obligates the broker to market the property to other brokers? A. Broadcast clause B. Marketing clause C. Multiple listing clause D. Provisionary clause
Multiple listing clause
Mardee represented condo owner Carol, and they signed an exclusive agency listing agreement. If Carol found her own buyer, would she owe Mardee a commission? A. No, because Carol is not a real estate licensee. B. No, because Carol procured the buyer. C. Yes, because they have an exclusive agency listing agreement. D. Yes, but she only owes the listing commission.
No, because Carol procured the buyer.
Elaine owns a home on a flag lot behind James. Her easement for a common driveway runs through James's property. What kind of ownership rights does Elaine have of the driveway that runs through James's property? A. Absolute B. Non-possessory C. Possessory D. Temporary
Non-possessory
Frank is representing Jonathan in the sale of his home. A buyer approaches Frank at Jonathan's open house, and Frank agrees to represent her in purchasing Jonathan's house. What must Frank do to avoid an illegal dual agency situation? A. Inform the buyer that he represents the seller. B. Obtain dual agency consent from all parties. C. Obtain dual agency consent from the buyer. D. Obtain dual agency consent from the seller.
Obtain dual agency consent from all parties.
Kendra made an offer on Sam's property. Sam rejected Kendra's offer, but made a counter-offer. Kendra is now considering the counter. What role does Kendra currently have in this scenario? A. Examiner B. Executor C. Offeree D. Offeror
Offeree
On what type of listing (or listings) may a net listing be used in states where they are legal? A. Exclusive right-to-sell listings only B. Open, exclusive agency, or exclusive right-to-sell listings C. Open listings only D. Open or exclusive agency listings only
Open, exclusive agency, or exclusive right-to-sell listings
Tyne entered a contract to buy Fred's home. Per the terms of the contract, Tyne agreed to pay $20,000 in earnest money by this coming Wednesday and have the property inspected within seven days. She submitted the earnest money deposit on time and had the property inspected within five days. What action does this scenario exemplify? A. A purposeful voiding of the contract B. Buyer misrepresentation C. Partial performance of this part of the contract D. Performance of this part of the contract
Performance of this part of the contract
Nevina may be creating an implied agency agreement if she does which of these? A. Contacts a mortgage broker to find out what first-time homebuyer programs are available. B. Gives her neighbor MLS listing information for another neighborhood home that's on the market. C. Performs a CMA for an acquaintance and provides advice on setting a listing price based on other comparable properties in the area. D. 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.
Jacob is a developer who purchased 78 acres and had it subdivided into half-acre lots. He decided to install sewer and underground electric for the entire subdivision, because he thinks that he will easily recoup his initial infrastructure investment. This is an example of which economic characteristic of real property? A. Area preference B. Immobility C. Permanence of investment D. Scarcity
Permanence of investment
Peter wants to set up a land trust so that his children can benefit from his real estate investments after he dies. He asked his financial advisor Tom to manage the trust, and Tom agreed. How is the trust created? A. Peter conveys the real estate to Tom. B. Peter dies. C. Peter purchases the real estate. D. Tom distributes income from the real estate investments.
Peter conveys the real estate to Tom.
The loss in value caused by deterioration in physical condition is called ______. A. Economic obsolescence B. External depreciation C. Functional obsolescence D. Physical depreciation
Physical depreciation
Subdivision regulations imposed by developers in an effort to maintain control of the development of the subdivision are an example of ______. A. Eminent domain B. Private land use control C. Profit limitations D. Taxation
Private land use control
Patricia is meeting with James and Cindy, potential buyers of a listing. They are in the office to make an offer when James says, "The only thing that bothers me are those black spots on the ceiling in the bathroom. Do you think that could be the bad kind of mold? It's not dangerous, is it?" What should Patricia do? A. Refer James and Cindy to a qualified mold professional. B. Tell them not to worry about it. C. Tell them that she will personally go out and clean it up. D. Tell them they could probably clean it up with a little bleach.
Refer James and Cindy to a qualified mold professional.
If a buyer makes an offer that the seller finds lacking, which of the following actions is the seller most likely to take? A. Ask the seller's agent to talk with the buyer's agent. B. Call the buyer to negotiate better terms. C. Increase the asking price. D. Respond with a written counter-offer.
Respond with a written counter-offer.
Homebuyer Nancy has made an offer to purchase a house and has plans to schedule a home inspection. How can her agent assist her in relation to the home inspection? A. Negotiate a kickback from the home inspector. B. Pay for the home inspection. C. Require the buyer to use the agent's favorite home inspector. D. Review the inspection report with her and discuss options.
Review the inspection report with her and discuss options.
The legal description of the project, easements that run with the land, and street and traffic patterns are all under consideration when a local planning board ______. A. Calculates the developer's project application fee B. Considers granting a special use permit to a developer C. Reviews a developer's project plat D. Reviews the zoning for a developer's project
Reviews a developer's project plat
Chris is in the process of purchasing a property with 20 acres of farmland in a rural area of the state. Assuming his income meets the criteria of the program, what type of loan may Chris find the most desirable? A. Growing equity mortgage B. Rural development loan C. VA-guaranteed loan D. Wrap-around mortgage
Rural development loan
Jerry and Simon signed a contract giving Jerry the option to purchase all of Simon's restaurant equipment for a set price after Simon closes his restaurant next month. The contract contains a provision that states Jerry has one year from the purchase date to file a suit relative to the purchase. After the year is up, Jerry forfeits the right. What kind of contract clause is this? A. Specific time B. Statute of limitations C. Time is of the essence D. Time of performance
Statute of limitations
Which type of pest may make mud tubes—tunnels that run along the walls—or shed tiny wings? A. Carpenter ants B. Fire ants C. Powder post beetles D. Termites
Termites
Which of these statements accurately describes finance- and housing-related legislation? A. As a stipulation of the Housing and Community Development Act, lenders must offer reasons when rejecting loan applications and must respond to all applications within 30 days. B. The Americans with Disabilities Act added familial status and disability (both physical and mental) to the existing protected classes. C. The Equal Credit Opportunity Act of 1974 required lenders to provide consumers with equal access to credit and prohibited credit discrimination based on just the three protected classes of race, color, or national origin. D. The Fair Housing Act of 1968 prohibited discrimination in the sale, rental, and financing of housing based on race, color, religion, or national origin.
The Fair Housing Act of 1968 prohibited discrimination in the sale, rental, and financing of housing based on race, color, religion, or national origin.
Which of these is a TRUE statement regarding truth in advertising violation penalties? A. A cease-and-desist order from the Federal Trade Commission related to deceptive advertising becomes effective 30 days after issuance. B. The Federal Trade Commission determines the severity of the penalty based on the severity of the violation. C. The Federal Trade Commission typically imposes jail time for truth in advertising violations. D. The severity of the civil penalty for violating truth in advertising laws is based on the number of consumers affected by the deceptive ad.
The Federal Trade Commission determines the severity of the penalty based on the severity of the violation.
Your 15-year-old son just signed a contract joining a health club, which costs $50 a month. Which of the following best describes this contract? A. The contract is missing a legal object. B. The contract is missing offer and acceptance. C. The contract is void. D. The contract is voidable.
The contract is voidable.
A disabled tenant has requested reasonable accommodations be made inside his unit to improve his ability to move around and enjoy the unit. Under ADA, which of these actions MUST the landlord take? A. The landlord must pay for the accommodations. B. The landlord must permit the tenant to make reasonable accommodations and can require the tenant to personally pay for it, but the landlord will have to pay if he wants the unit returned to its original condition upon the tenant vacating the unit. C. The landlord must permit the tenant to make the reasonable accommodations and can require the tenant to pay for the changes and return the unit to its original condition when vacating. D. The landlord must respond to the tenant's request within 10 days; otherwise, the tenant can have the changes made and deduct the costs from his monthly ren
The landlord must permit the tenant to make the reasonable accommodations and can require the tenant to pay for the changes and return the unit to its original condition when vacating.
Two competing firms are found guilty of illegal market allocation. Which of the following scenarios must be true? A. The two firms are located in different parts of the state. B. The two firms are owned by the same umbrella company. C. The two firms have agreed not to compete in one another's markets. D. The two firms have agreed to set commission rates and/or co-op fees at a specific amount.
The two firms have agreed not to compete in one another's markets.
What's providing legal advice to a client considered? A. A good habit B. Going above and beyond C. Great customer service D. The unauthorized practice of law
The unauthorized practice of law
What would happen if you bought a house and later found out that there were unpaid liens against the property? A. Nothing. The former owner owes the money on the liens. B. The lien claimants would lose their liens against your property. C. The unpaid liens could trigger a foreclosure on your property. D. You would have to assume a loan to pay off the liens.
The unpaid liens could trigger a foreclosure on your property.
If individuals want to use their property in a way that's not permitted by a zoning ordinance, they must submit a request for a variance to which one of the following groups? A. The architectural review board B. The building department C. The planning board D. The zoning board of appeals
The zoning board of appeals
Which of the following is a planning and zoning issue that most prospective buyers might need to know? A. How many members are on the zoning board B.. How to get a home occupation permit C. The zoning designation for the given property D. When the town comprehensive plan will be updated
The zoning designation for the given property
Danette hasn't paid the first quarter water bill on her property. It was due on April 1. She's closing with the buyer, Jason, on April 1. What type of expense is this and how will it appear on the settlement statement? A. This is an accrued expense, and will appear as a buyer debit and a seller credit. B. This is an accrued expense, and will appear as a seller debit and a buyer credit. C. This is a prepaid expense, and will appear as a buyer debit and a seller credit. D. This is a prepaid expense, and will appear as a seller debit and a buyer credit.
This is an accrued expense, and will appear as a seller debit and a buyer credit.
What phrase do many real estate contracts contain that reminds the parties to avoid unnecessary delays to the transaction, and to adhere to all contract dates? A. Haste makes waste B. Patience is a virtue C. Seek the advice of an attorney D. Time is of the essence
Time is of the essence
Which of the following clauses directs the parties to a real estate sales contract to proceed in good faith, and not unduly delay the process? A. Acceleration clause B. Indemnification clause C. Severability clause D. Time is of the essence clause
Time is of the essence clause
Which of the following is one reason a lender might charge a prepayment penalty? A. Because the lender is a subprime lender B. To cover the costs of processing an early payoff C. To deter buyers from ever paying off their mortgage D. To recover the money lost in anticipated interest
To recover the money lost in anticipated interest
What is the purpose of earnest money? A. To encourage the seller to come down in the asking price for the property B. To provide the seller with funds to make required repairs to the property before selling it C. To retain the services of a licensee D. To show the seller that the buyer is serious and intends to go through with the sale
To show the seller that the buyer is serious and intends to go through with the sale
In contract law, undue influence differs from duress in that duress includes ______. A. Deception B. Fraud C. Trickery D. Use or threat of force
Use or threat of force
What type of timeshare involves a buyer agreeing to pay a one-time purchase price and an annual maintenance fee, and in return selecting an accommodation time and having the right to use the unit for a specified number of years? A. Lifelong B. Permanent C. Renewable D. Vacation
Vacation
When does offer and acceptance occur? A. When one party makes an offer, and the other party signs it and returns to the original party B. When one party makes an offer on a property, and the other party turns it down C. When one party makes an offer to a second party, and the second party makes a counter-offer D. When one party signs a contract voluntarily with full understanding of the terms
When one party makes an offer, and the other party signs it and returns to the original party
Jason purchased his dream home six months ago. After Jason received an inheritance from his uncle, he decided to pay off his mortgage. What should he consider before doing this? A. A second mortgage B. The state of his local housing market C. Whether he will incur a prepayment penalty D. Whether his uncle would like this
Whether he will incur a prepayment penalty
Unauthorized practice of law and acting outside the scope of one's expertise are similar issues. Which of the following circumstances specifically relates to the unauthorized practice of law? A. Predicting a specific tax increase or decrease B. Predicting the return on investment for a rental property C. Recommending specific investments D. Writing contract addenda or additional provisions that cover unfamiliar circumstances
Writing contract addenda or additional provisions that cover unfamiliar circumstances
Marvin knows that three-bedroom properties with two bathrooms sell quickest in his market. In an ad for a new listing, he wrote, "Bonus room could easily be a third bedroom", even though he knows from experience that this isn't true because the room is too small, has no egress and no heat source, and can only be accessed by walking through a bathroom. Is Marvin guilty of misrepresentation? A. No, because any buyers interested in the bonus room as a third bedroom should be able to see for themselves that it won't work. B. No, because the term "easily" is subjective. C. Yes, because he billed the property as a three-bedroom when it only has two. D. Yes, because he knew there would be major issues converting that room to a bedroom.
Yes, because he knew there would be major issues converting that room to a bedroom.
Zach wants to purchase a property that's subject to an existing lease agreement, which includes the tenant's right to renew the lease. What is Zach's obligation, if any, to uphold the terms of the lease agreement? A. As the new owner and landlord, Zach can disregard the renewal option. B. As the new owner and landlord, Zach can terminate the existing lease. C. Zach is under no obligation to uphold any part of the existing lease agreement. D. Zach must honor that right and allow the tenant to renew at the end of the term.
Zach must honor that right and allow the tenant to renew at the end of the term.
