Tenneesse New Affiliate 30 hour Program Missed questions
Caveat Emptor
"Let the buyer beware"
The borrower also has sufficient credit and income.
A borrower who has received a certificate of eligibility will qualify for a VA loan under which of the following circumstances?
Contingency
A condition that must be satisfied for a contract to be fulfilled
Good consideration
A gift
bilateral contract
A mutual contract that involves an exchange of promises or other consideration between two parties
Broker
An unrepresented _____ who's a party to a transaction is known as a principal.
False (they don't represent either party; assist both parties as customers)
Facilitators represent both parties in a transaction (T/F)?
Through a funding fee charged to most borrowers
How does the VA fund the mortgage guarantee program so that lenders can be reimbursed for any losses from borrower default?
The seller could go to jail.
If a seller knowingly misrepresents facts or fails to disclose something, what could happen?
The broker and all affiliates
If an agency policy indicates that licensees will have traditional buyer or seller agency relationships with their clients, the agency relationship is with ________.
FHA
Insured loans for purchasing, building and repairing homes
Housing ratio
PITI/ monthly income= housing ratio
Housing ratio of 31%, total debt obligations 40%
Read through each of the following pieces of information about buyers' debt obligations and determine which one will qualify for an FHA loan based on the qualifying ratios.
False
Real Estate Professionals are licensed at the Federal Level
Certificate of value
Required for VA loans; similar to an appraisal
Tie-in arrangement
Requiring the consumer as a condition of a transaction to use ore not use a particular service or product (illegal under antitrust law)
CRV
The ______ is provided by a VA-assigned appraiser.
State Laws and Regulations
Where will you find official documentation about the licensing of real estate professionals?
Unilateral Contract
A contract in which consideration is only given by one party to the other
Voidable Contract
A contract that is missing an essential element and thus may be canceled by one or more parties
Estate for years
A leasehold estate of definite duration that terminates automatically at a given date. It can be for one day, a number of days, weeks, or months.
Periodic Estate
A leasehold estate that automatically renews unless one party notifies the other of the intent to terminate. automatic renewals require the landlord to give between 15- and 30-day notice that the lease is about to renew. Without this notice, a landlord cannot automatically renew the lease at its expiration, even if the tenant does not provide notice of termination.
Residual income and debt-to-income
A lender qualifies a borrower for a VA loan based on ______.
Deed of trust
A security instrument in which the borrower (trustor) gives deed of trust to a third-party (trustee), who is usually closely connected with the lender (beneficiary). In the case of default, the beneficiary instructs the trustee to foreclose under the power of sale clause.
Express vs. Implied
A stated (written or oral) agreement between two parties to specific terms vs. a contract that exists based not on words, but on the actions or behaviors of the parties
OPEN/NONEXCLUSIVE LISTING
Allows the seller to contract with multiple agents, but only pay a commission to the agent who locates the buyer
blockbusting
An illegal practice in which licensees or others encourage homeowners to sell because of an influx or expected influx of minorities into the area
The sale has closed
As a listing agent, when are you no longer obligated to present offers to your client?
24 Hours
Brokerage documents that the TREC requests must be provided within _____ of the request.
Comparative Market Analysis
CMA
The lender can consider compensating factors, even if their credit history isn't great.
Carla and Sven have a previous foreclosure, but now they are a few years away from that. They make good money with their jobs, and have about $30,000 available to use for a down payment and closing costs. Why might they consider an FHA 203(b) loan, even if they have sufficient down payment for a conventional loan?
Yes
Celeste hopes to qualify for an FHA loan. She calculates her housing ratio as 31%, and her total debt obligation as 42%. Her credit score is 580. Does she qualify under FHA underwriting guidelines?
Estate at will
Estate at will This is a leasehold estate in which the duration of the estate is unknown at the time it is created. Either party may terminate the lease by giving proper notice to the other party. In New York, notice of termination must be given at least 30 days before the termination date. Month-to-month leases are examples of estates at will.
It defines how and how much the agent will be paid.
From an agent's perspective, what's one benefit of a buyer representation agreement?
False (can't wear two hats in Tennesse)
Licensees can serve as an agent for one party and a facilitator for the other to avoid dual agency.
False
Listing broker compensation must be a percentage of listing price (T/F).
Yes, she should have partial entitlement left.
Nadia uses a VA loan to buy a house for $125,000. She wants to buy the neighboring property, an empty lot, so she can improve the house using the extra land. The lot is for sale for $135,000. Can she use a VA loan for this purchase?
Yes
Sandra is a single woman fresh out of college. She hopes to qualify for an FHA loan. Her lender calculates her housing ratio as 31% and her total debt obligation as 43%. Her credit score is 480. Does she qualify under FHA underwriting guidelines?
True
Sellers of single-family residential real properties must provide a property condition disclosure or disclaimer statement to prospective buyers. (T/F)
True
Sellers who decide to lease if they can't sell a property owe the listing agent the leasing commission that's documented in the agreement (T/F).
Commission Maximums
Some Activities that real estate licensees perform are affected by license laws, ant others are not, Which is not affected: Required Education, Ethical Client Interactions, Work Schedules, Required Experience, Membership in Civic Organizations, Commission Maximums
The VA loan
Sylvia is shopping for a mortgage. Because she's a veteran, she compares the VA home loan with the 3.5% down FHA mortgage. If she has only $5,000 available in cash, with all else being equal, which loan will allow her to spend more on a home?
Exclusive Right to Sell Listing
T e broker earns a commission no matter who finds the buyer for the property during the term of the listing
Licensed real estate activities, Agency contracts, Referral fees
TREC enforces and administers laws on: Licensed Real estate activities, appraisal activities, agency contracts, Referral fees
Website
TREC may be discipline you if you don't show your firm name on each page of your __________________________.
The end-of-year loan balance, plus the balance after the next 11 payments
The annual MIP is recalculated each year using ______.
Exclusive Agency
The broker only earns commission if the broker or any of the members of the broker's firm bring the buyer to the transaction
The veteran has a 10% or higher VA disability
The funding fee on a VA loan is waived when ______.
steering
The illegal practice of nudging buyers away or toward a specific area based on the presence or absence of protected class members in the area relative to the buyers.
redlining
The practice of a lender to refuse to lend in a specific area, often based on the minority makeup of the area.
False
The requirement to provide a property condition disclosure or disclaimer statement applies only to sellers who are represented by a real estate licensee. (T/F)
All risks posed by business operations
The risk identification process for a brokerage firm involves identifying what?
True
The seller must provide the disclosure or disclaimer statement before full execution of the sales contract. (T/F)
Novation
The substitution of one party for another in an agreement; the original party is released from all obligations
Leasehold estate
The type of relationship defined between the landlord and tenant when they sign a lease. Leasehold estates grant possession, but not title, to the tenant. Title stays with the landlord.
True
There is no single, standardized form that sellers have to use to provide their disclosure or disclaimer statement. (T/F)
Holdover tenant
This is the type of tenant who retains possession after the right to possess the property terminates.
Assignment
To substitute a new party for one of the original parties
They must always disclose themselves as licensees
Under what circumstances must Tennessee Real estate licensees disclose their license status when buying or selling their own property
Contracts conveying the ownership or interest in real property must be in writing to be enforceable, and must be signed by the parties
What does the statute of frauds require regarding real property contracts?
Mortgage insurance premium, required for FHA loans
What is MIP and when is it required?
Disclosure is not a substitute for an agency agreement.
What is true about disclosing agency status in Tennessee?
Complainants can pursue a civil suit independently
What is true about filing a civil suit related to a complaint in Tennessee?
Agency relationships
What professional behavior does Article 16 of the NAR Code of Ethics address?
File a complaint with the TREC
What should a consumer do to report a possible license violation?
Conversations and Recommendations
What should you document to avoid E&O claims
6 years
What's the statute of limitations in Tennessee for a breach of contract claim?
By adding standard language, found in TAR form RF 707, to the Special Stipulations section of the sales contract
When completing the Tennessee Association of REALTORS® form RF 401 Purchase and Sale Agreement, how will a licensee indicate that the sale is contingent upon the sale of the buyer's current property?
There is no mortgage insurance requirement for a VA loan.
When does the need for mortgage insurance end for a borrower who has a VA loan?
Working with a Real Estate Professional
Which TAR form would you sue when discussing real estate with a consumer who has never worked with a real estate professional?
Sufficient income
Which of the following is a requirement to qualify for a VA loan?
The applicant must have a certificate of eligibility.
Which of the following is a true statement about borrower qualification standards for a VA-guaranteed loan?
Mitigation
Which of the following risk strategies involves taking steps to minimize the impact and likelihood of occurrence?
They're allowed only on fixed rate loans.
Which of the following statements is true about buydowns with a VA loan?
The FHA may adjust the percentage used to calculate MIP on FHA loans.
Which of the following statements is true about the MIP on an FHA loan?
Creed
Which protected class, in addition to the seven federally protected classes, does Tennessee add in its Human Rights Act?
To provide specific legal protections for the parties
Why are there different purchase contract forms for commercial and residential real estate transactions?
Agency policies simplify a licensee's work when bringing on a new client.
Why is it important for a broker to implement an agency policy as part of the firm's operations?
Determine the value of the loan that the VA will guarantee
With a VA loan, the certificate of reasonable value is used to ______.
1968
Year at which lead based paint disclosures are required?
Yes, you can deduct 50% of the cost of your meals
You attend a business-related conference that includes an overnight stay away from home. Can you deduct the cost of your meals during the conference?