smith barney final exam
In dual agency, the consent form must contain all of the following except?
a. A lot and block legal description of the property
If a deed restriction prohibits a use permitted by zoning, then:
b. The deed restriction controls.
A buyer purchased a property from a seller and assumed the seller's loan. The seller wanted to be released from liability on the loan. Which of the following would accomplish this for the seller?
b. The lender would have to sign a release of liability
Under BRRETA, an agent's liability for disclosure:
b. is limited to only information he knows to be true.
A person invested $5,000 in a limited partnership. One of his concerns was the amount of his liability. Since he is one of the limited partners, can he be held liable for more than his initial investment?
b. No, because he is only liable for his initial investment
In a residential subdivision, the deed restrictions establish a central playground which uses four feet of the backyard of each owner. Barnes has decided to put in an organic garden in his backyard and in so doing he will move a piece of playground equipment. His neighbor, Bates, objects to Barnes' plan. What can Bates do?
b. Petition the court for an injunction to stop Barnes
Sophie and William build a home at a cost of $250,000 in a neighborhood where the other properties are valued in the $125,000 price range. Their home will tend to decrease in value and the others tend to increase in value. This is an example of the appraisal principle of:
b. Progression and regression
A salesperson decided to sell her house. She did not want to list the house with her brokerage company. Instead, she wanted to sell her own house as a for-sale-by-owner. Which of the following items would the salesperson have to do?
b. Put in all advertising "seller holds a real estate license", including the yard sign
Which is true regarding the findings of the Georgia Real Estate Commission?
b. The GREC could publish the name of the licensee and the status of the license
A seller and broker entered into a 30 day listing agreement to market a commercial property. One week later, the seller was dissatisfied with the broker's activities and contacted another broker about selling his property. The seller signed a new listing agreement with the new broker that took effect when the old listing expired. Which is true regarding the agreements?
b. The new broker can begin marketing the property the day after the old listing expires
Each closed real estate transaction requires a report to be filed with the IRS on form 1099. Required information includes the seller's name, social security number and:
b. The selling price of the property.
A buyer wrote an offer to purchase for a $130,000 house. The buyer asked the salesperson if they could use the title to a speed boat as an earnest deposit. Would this be acceptable as an earnest deposit?
b. Yes, as long as it is agreeable with the seller
A licensed salesperson put an ad in the paper for the sale of his own house. When would he need to inform prospects that he is an agent?
c. In the ad itself
The commission received by a listing broker who is a member of a multiple listing service is:
c. Negotiated between broker and seller.
William Wells, a principal broker, listed parcel A under an exclusive listing agreement and listed parcel B under an exclusive right-to-sell agreement. Both listings expired. Three days later, without seeing each other's property beforehand, the two owners exchanged properties in a Like-Kind exchange. William will receive:
c. No commission
A broker has entered into a signed listing agreement. Which of the following reasons would make the agreement voidable?
c. The seller was under the influence of alcohol when the contract was signed
A tenant and landlord enter into a six-month lease on July 1, 20xx to expire on Dec. 31, 20xx. Which of the following statements is correct?
c. The tenant may vacate the property on December 31, without notice
A condominium advertises a pool and tennis court, but they have not yet been completed. Which is correct?
c. This is allowed if they are labeled not yet completed and a completion date is specified.
A borrower applied for a VA first mortgage for $100,000. However, the property appraised for $80,000. If the buyer still wished to buy the property, which could happen?
c. VA could allow the veteran to make up the difference in cash.
John, an adult, entered into a contract with Paul, who is 16 years old. When John learned that Paul was a minor he decided to terminate the contract. Which of the following statements is true?
d. The contract is valid and binding only on John.
A broker, acting as a dual agent, with the knowledge and consent of all parties, collected one-half the commission from the seller and one-half from the buyer at settlement. Which of the following statements is true concerning this situation?
d. This action is permitted only with the consent of both parties
A buyer signed a contract and gave the broker $5,000 in earnest money. The offer was accepted by the seller and the earnest money deposited into the broker's escrow account. The buyer, however, needed $250 to pay for an appraisal. Could the broker take $250 from the escrow account and give it to the buyer?
d. Yes, provided written authorization is given by all parties to the contract
Broker Falk had a listing. Broker Carr found a buyer for Broker Falk's listing. A salesperson could close the transaction if:
d. a salesperson can NOT close a transaction, only attorneys can close them
A broker desired to charge a flat fee to all sellers in order to collect the same amount for the work, regardless of the list price of the house. The broker could do this only:
d. by informing the seller prior to the listing and obtaining agreement
Which of the following listings is the most advantageous to the broker?
Exclusive right-to-sell.
Sam sold a property to Emma for $225,000. Sam's loan balance was $44,500 with an interest rate of 7%. Emma's conventional loan was at 8% with a 90% loan to value ratio. The taxes for the year were $1250 and the home owner's insurance was $495. Closing took place on October 30th. Based on this information, answer the following question. How much was the intangible
a. $607.50 (A) $607.50:The Intangibles Tax is paid on the new loan amount, which we calculate by taking the Sale Price x LTVR = Loan amount, which we round down to the nearest 100 when necessary. $225,000 x 90% LTVR = 202,500 / 500 = 405 x $1.50 = $607.50. The correct answer is: $607.50
A lot measures 105' square. Zoning requires a front setback of 30', rear setback of 25', and side setbacks of 15'. What is the maximum square footage, of a single story structure, that could be built on this property? Draw a picture.
a. 3,750.
Which mortgage clause allows a lender to regain their investment if a borrower does not pay his payment?
a. Acceleration clause
A legal land description must:
a. Be sufficient to identify the property
According to the 1988 amendments to the Federal Fair Housing Law, which of the following would be allowed regarding a handicapped person in an apartment complex?
a. Evicting for playing loud music (excessive noise) at night
A lease that allows for annual rent to increase on each anniversary is a:
a. Graduated lease.
Depreciation can be claimed on all of the following property EXCEPT:
a. Land
Which of the following are appointed by the governor?
a. Members of the Georgia Real Estate Commission
How many agents are there in an exclusive right-to-sell listing?
a. One
The purpose of a zoning ordinance is to:
a. Promote the health, safety and general welfare of the public
Under a contract for deed, the buyer:
a. Receives an insurable interest
Which of the following is NOT prorated between buyer and seller at closing?
a. Recording fees.
A buyer and seller, neither of which is under contract with the broker, ask a broker to write a contract for them. What should the broker do?
a. Refuse to do anything because he is not their broker
The covenant whereby one warrants that he is the possessor and owner of property being conveyed is the covenant of:
a. Seizen.
When a buyer wishes to finance a home purchased with an FHA insured loan, which of the following assurances does FHA provide?
a. The property passed FHA inspection.
If the closing occurs on January 31 (and we assume taxes have not been paid) which party will owe taxes at closing?
a. The seller
A "For Sale By Owner" placed an advertisement on their property which read, "couples only - no children, please." This advertisement is:
a. illegal because of Fair Housing Laws regarding familial status
At the time of listing, a broker noticed a crack in a wall that was covered by boxes. In showing the property the licensee would:
a. inform the prospective buyer of the crack
The Sherman Antitrust Act has as one of its purposes to:
a. prohibit conspiracy in the restraint of trade.
Broker escrow accounts may be used for:
a. security deposits for rentals leased by the broker.
If the seller of a house agrees to pay the broker a 6% commission on the first $10,000 and 3.5% commission for all money received over that amount, what was the sale price of the house if the broker collected $946.50 in commissions?
b. $19,900.
Sam sold a property to Emma for $225,000. Sam's loan balance was $44,500 with an interest rate of 7%. Emma's conventional loan was at 8% with a 90% loan to value ratio. The taxes for the year were $1250 and the home owner's insurance was $495. Closing took place on October 30th. Based on this information, answer the following question. How much was the transfer tax?
b. $225.00 (B) $225.00: The Transfer tax is paid on the taxable amount. Since there is no loan being assumed, the taxable amount is the Sale price of $225,000 / 100 = 2250 x .10 = $225.00.
A lender's policy requires that the monthly payment for principal and interest cannot exceed 33-1/3% of the borrower's gross monthly income. If the monthly loan payment is to be $1,000, what is the minimum income required to support this payment?
b. $3,000 per month. If some number X 33-1/3% is equal to $1,000; then $1,000 divided by 33-1/3% or .33333 will equal that number. $1,000 divided by .3333 = $3,000 monthly gross income.
A buyer put 20% down on the purchase of a house. The lender required the buyer to pay two discount points in order to obtain a loan. The buyer paid $1,000 for the discount points. What was the purchase price of the house?
b. $62,500 $1,000 divided by 2% equals the loan amount of $50,000. The buyer putting 20% down means the loan must have been 80% of the purchase price. $50,000 divided by 80% equals the purchase price of $62,500.
Personal property which is attached to a building and which will convey with the land is known as:
b. A fixture
If a person pays for the right to purchase property at a specified price, within a specified time, the person has:
b. An option
Andy's real property tax is $2,250 and Abbe's is $1,800. The mill rate for the county in which both are located is 75. What is the assessed value of the property?
b. Andy's is $30,000 and Abbe's is $24,000. One mill is equal to $.001 (1 tenth of a cent). Mill rate (75 X .001) is $.075 or 7-1/2 cents for each $1 of assessed value. $2,250 divided by $.075 = $30,000. Andy's assessed value $1,800 divided by $.075 = $24,000 Abbe's assessed value.
A person that authorizes another to act for him or her is known as the:
b. Client
A survey is made of Tony's property and it is found that a portion of the neighbor's garage is on his property. Tony is planning to sell his property. This encroachment of the garage onto his lot:
b. Could cause his property to be unmarketable
One of the major reasons to establish zoning ordinances is to:
b. Effectively plan an area
Which of the following is NOT true about title insurance?
b. It is the same as homeowner's insurance.
In 1968 the Supreme court ruled in the Jones vs. Mayer Co. case. The courts' decision upheld the law which provides protection on the basis of:
b. Racial discrimination.
The final step in the appraisal of an apartment building is:
b. Reconciliation.
Which of the following would NOT be a legal way for a salesperson to advertise a piece of listed property?
b. Run a classified ad in their own name advertising the property for sale
When a mortgage has been completely paid off it is known as:
b. Satisfaction
The act of recording a deed in the public record's office designated for that purpose, results in which of the following?
b. Serves as constructive notice to the public
A broker decides to lower the prices of her listings after the properties have been on the market for 120 days. She finds that more buyers are now calling on these listings. Which of the following is true about such a practice?
b. She can do this only with the owner's approval
The plans for a house indicate a scale of 1/4" = 1 foot. If the living room is shown as 8 1/2" by 6 3/4", what is the cost to carpet the room if carpet is $2.70 per square yard?
c. $275.40 On a ruler there would be 4' to each inch 8.5" * 4 = 34 feet. 6.75" * 4 = 27 feet. 34' * 27' = 918 square feet. 918 / 9 sq. ft. per yd = 102 square yards. 102 * $2.70 = 275.4 = $275.40.
A lot has dimensions of 80 by 100 feet. You wish to totally enclose the back half of the lot with a fence. How many feet of fencing do you need to buy?
c. 260 feet
How many acres in a one-half square mile parcel of land?
c. 320.
An owner sells his property and immediately leases it back from the purchaser. This describes:
c. A sale and leaseback transaction
The trespass of an improvement is best described as:
c. An encroachment.
Which of the following is NOT a form of steering?
c. Attempting to have Caucasian homeowners sell their homes by representing that African Americans are attempting to buy in the neighborhood.
Why do people avoid balloon mortgages?
c. Because of the large lump sum payment that must be made when due.
In agency representation, the employer is called the:
c. Client.
Which of the following is NOT specifically protected by fair housing statute?
c. Current drug users.
Broker escrow accounts must be:
c. Designated and labeled as "escrow."
Sam sold a property to Emma for $225,000. Sam's loan balance was $44,500 with an interest rate of 7%. Emma's conventional loan was at 8% with a 90% loan to value ratio. The taxes for the year were $1250 and the home owner's insurance was $495. Closing took place on October 30th. Based on this information, answer the following question. How much was the prepaid interest and by whom was it paid?
c. Emma $90
If a listing broker tells a prospective buyer, ".. go ahead and make that offer, I'm sure the seller will accept it...", the broker may have created an agency relationship which would be described as:
c. Implied agency
An attorney who is not a real estate licensee gives referrals to a real estate company. Can the attorney receive a referral fee from the licensee?
c. No, as the attorney does not have a real estate license
An owner and tenant signed a one year lease agreement. The owner sold the property to a buyer 4 months later. The buyer wanted to move into the property immediately. The original lease contract signed by the seller and tenant was silent on this point. Can the buyer of the property move in immediately?
c. No, because the tenant can stay in the property for the duration of the original lease contract
Which of the following is incurable depreciation?
c. Noxious odors from a nearby chemical plant.
A cooperative owner has exclusive use of her unit by reason of a:
c. Proprietary lease.
Which of the following statements BEST illustrates the difference between puffing and misrepresentation?
c. Puffing is an exaggeration, not concealing material facts; misrepresentation is unjustly harming a person by concealing material facts
Interest that is calculated every month based on the remaining loan balance is best referred to as?
c. Simple interest
A salesperson told a buyer that the air conditioner would stay with the house. However, he had NOT checked it out with the seller. After closing, the seller took the air conditioner. Which would happen?
c. The GREC can take disciplinary action or dismiss a complaint if filed
When necessary, who forecloses in a trust deed state?
c. The Trustee
A purchaser submits an offer to a seller with the condition that the property is to be financed by a conventional loan at no more than 10% interest. If the seller agrees but such financing cannot be obtained, which of the following is true?
c. The purchaser may request his deposit be returned
An apartment complex has $450 less rental income per month because it is located next to a busy highway. Using a capitalization rate of 8%, how much is the loss in value?
d. $65,700. $450 X 12 months = $5,400 gross annual loss $5,400 divided by 8% = $67,500 loss. The correct answer is: $67,500.
What would be a likely buffer zone?
d. A park between a residential apartment building and a high-rise office complex
Which of the following statements is/are true?
d. All of the above
The Equal Credit Opportunity Act makes it unlawful to refuse to grant credit to qualified applicants on the basis of:
d. All of these choices.
How are the members of the Georgia Real Estate Commission chosen?
d. Appointed by the Governor and confirmed by the Senate
To be a professional property manager of a large apartment complex, one would need to know about all of the following EXCEPT:
d. Appraisal techniques.
Broker Jane is acting as a dual agent in a real estate transaction and decides to appoint salesperson Sara to represent the seller and salesperson Ben to represent the buyer. Ben and Sara both work in Jane's firm.
d. Ben and Sara are designated representatives.
Jones buys a lot that has no access by way of a public road. He can gain access to his land by way of his neighbor's land that has public road access:
d. Either if the grantor of the property caused the lot to be landlocked or if his neighbor agrees to give him an easement.
The owner of an undivided interest in land with no right of survivorship owns it as a:
d. Either tenant-in-common or tenant in severalty.
Who is required to comply with the Fair Housing Laws?
d. Everyone, unless specifically exempted by the law.
Georgia's law that is focused on deceptive advertising is:
d. FBPA.
If a person is alleged to have violated the Civil Rights Act of 1866, the complainant would file suit in which of the following?
d. Federal Court.
A licensed salesperson, in renting a house the salesperson owns, could advertise in which of the following manners?
d. For rent by owner--Landlord holds a real estate license--541-3567
Which is true about a net listing?
d. It is illegal in Georgia
Which of the following would not be legally sufficient to support consideration in a sales contract?
d. Love and affection.
A corporation buying real property would take title under:
d. Tenancy in severalty.
When does a broker earn his commission?
d. When the offer to purchase has been signed and accepted by the seller
