The CE Shop Real Estate Course Final

Which one of the following provides the best example of single agency?

An agent from one firm acts as the agent for the buyer

The fibers of what material are dangerous when inhaled because they can lodge in the lungs and intestines, causing cancer?

Asbestos

A person was sued for damages related to a car accident in which they were involved last year. As part of the proceedings, the court placed a lien against the person's primary residence. What type of lien is this?

Attachment

A buyer is purchasing a property for $500,000. His lender's loan-to-value ratio is 90%. How much is the buyer financing?

$450,000

Online and social media advertisements for Mississippi real estate must ____

Comply with all federal and state real estate advertising rules

Which one of the following is true about ownership or title to a property?

Constructive notice to the public of real property ownership occurs when the deed is recorded

What does CC&R stand for?

Covenants, conditions, and restrictions

Mississippi broker Dan Salisbury is preparing an ad in a local newsletter. Which of the following is the acceptable way for him to represent himself in the ad?

Dan Salisbury, licensed real estate broker

Without this easement - usually involving access to a road - the owner requiring the right of passage would be landlocked

Easement by necessity

Greta is working with agent Brandon to sell some property. Nelson represents the buyer, Rigby. Of these four parties, who will pay the earnest money?

Rigby

Gregory and Dianne are American citizens of Cuban origin, and when their home loan is denied, they suspect discrimination. Which of the following acts prohibits lender discrimination on the basis of the protected class of national origin?

Equal Credit Opportunity Act

Sam grants Steve a license to hunt deer on his property. Which of the following statements about the license is true?

Sam can revoke the license at any time

Mississippi salesperson Al, who works for MS Homes under responsible broker Cindi, hasn't received the commission he's owed by ABC Brokerage. What can he do to recover this commission?

Have Cindi initiate against ABC Brokerage to recover the commission

Doug is selling his home by a short sale. What likely happened recently in Doug's life?

He lost his job

You're representing Cassidy, who's selling her family home in Biloxi. Which of these facts about the home is considered a stigmatizing factor?

Her husband's suicide on the premises last year

Which of the following is considered unauthorized practice of law?

Interpreting the legal consequences of a client's actions

A property is 1,920 acres. How many square miles is this?

Three

The benefits of a home warranty for buyers are clear. Why might sellers want to offer a home warranty to buyers?

To protect themselves from any claims after closing

Mississippi salesperson Tony's license is on inactive status. However, his previous responsible broker, Jim, still owes Tony for his work on a transaction he conducted while under Jim's supervision. Which of the following is true of this situation?

Jim may pay Tony compensation for this transaction without violating the law.

Which of the following defines when a lender charges a borrower more than the highest allowable interest rate?

Usury

An express agreement is ____

Written or verbal

A licensee stating that a property is "guaranteed to increase in value over the next five years" is an example of ____

Misrepresentation

Parcels of land are valued at $50,000 each. However, when two of the parcels are joined, they are valued at $120,000. What economic principle is at work here?

Plottage

What can water damage on a ceiling or wall indicate?

Plumbing Issues

A strip mall valued at $850,000 has a $67,500 annual net operating income. What is the capitalization rate for the strip mall?

7.9%

Jenna was surprised that the charming Tudor she was touring was still on the market. "I don't see anything bad on the disclosure," she told her agent, "and the price seems fine. Why do you think it hasn't sold?" her agent Louise responded, "Well, I heard that UPS was opening a new air hub two miles away early next year." Why might this affect Jenna's or other buyers' interest in the property?

A UPS hub would mean many more flights overhead each day

Which of the following statements is true about zoning classifications?

A home business would be considered an accessory use.

Which of the following is an example of constructive eviction?

A tenant moves out of the apartment after repeating unsuccessful requests to the landlord to repair the broken water heater

Tristan's offer has been signed by all parties and delivered to the seller. This means that ____ has occured

Binding acceptance

Which loan is a type of gap financing that is used temporarily until the consumer can obtain permanent financing?

Bridge loan

What type of rules ensure the safety and accessibility of an office building?

Building codes

Which department typically decides which development projects require a permit or approval?

Building department

Leisl and Brent Franklin are selling their Biloxi home to Casper Fantome. They deliver the Property Condition Disclosure Statement late. Which of the following statements is true of this situation?

Casper has the right to terminate the offer to purchase contract by delivering written notice of termination to the Franklins or their agent.

Why did the implementation of TRID impact closing dates?

Certain financing changes may trigger a new three-day waiting period

What's the term for someone who has agency representation with the licensee?

Client

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 ____

Comprehensive Plan

Shemar owns a started home a few miles outside of the city center, and he wants to deed it to his grandson, Tyler. According to the paperwork Shemar had drawn up, Tyler will own the property as long as he continues to pay the property taxes on time. After the second missed property tax payment, ownership would revert to Shemar. What did Shemar place on the deed?

Deed condition

What type of leasehold is characterized by possession of a property without the express permission of the property owner, such as a situation in which a tenant continues to occupy an apartment after the lease has terminated?

Estate at sufferance

Your client tells you to do something. It would violate fair housing laws, but it will earn you an amazing commission. What should you do?

Explain that you cannot do it, because it's a fair housing violation, and you could both get into trouble for doing what she's asked

Your client submits an application to rent a condo unit. He has excellent credit and has had the same job for a long time. He uses a cane to help with his mobility. When his application is rejected, he feels it's due to his disability. He is protected under what federal law?

Fair Housing Amendments Act of 1988

What government agency provides online information that allows the public to determine if a property address is located within a special flood hazard area (SFHA)?

Federal Emergency Management Agency

What are the duties, such as confidentiality, obedience, and reasonable skill and care, that an agent owes to clients?

Fiduciary

The income approach to valuation is used _____

For some single-family houses and two- to four-family units

Mississippi broker Leland has just helped his seller client close on his house in Jackson. From whom will Leland receive his compensation for his work on this transaction?

From his responsible broker

Which of the following covenant terms promises that the grantor will provide any additional assurances that the grantee reasonably requires and perform any acts necessary to correct any defect in the title being conveyed?

Further assurances

Mississippi licensee Brad is selling a property he owns. His license is inactive at the moment, and he's between brokerage firm affiliations, so he's decided to list it with his friend's brokerage. Which of the following is true regarding disclosure of his license status?

He doesn't need to disclose his license status in the advertising, but he'll need to disclose it in the contracts

Mississippi license Luis is changing responsible brokers. What must he do regarding this change?

He must submit written notice to the MREC regarding this change, along with the name of his new responsible broker, within three days

If John suspects that his neighbor's deck encroaches on his back yard, what should John do to determine whether an encroachment exists?

He should consult a survey for the exact property lines

Where are underground storage tanks primarily found?

In older homes and former industrial sites

Which approach to value is typically used for investment property of two- to four-family units?

Income approach

Two buyers entered into a contract to purchase a home. One of the buyers pulled out of the deal, and a substitute buyer took the original buyer's place in the contract. All of the parties agreed to the substitution. What is this an example of?

Novation

What is the name of the process of substituting one party to an existing contract with a new party, releasing the original party from all contractual obligations and rights?

Novation

A homeowner specified in their will how title to the home would transfer. At their death, alternate conveyance occurred. What likely happened?

Operation of law

Because there were no deadlines specified in the contract, a buyer delayed applying for a loan to help purchase the property. The seller ended up suing the buyer for breach of contract, stating that the delay was impacting the seller's ability to purchase a new home. What did the buyer fail to do?

Perform contractual obligations within a reasonable time

Which of the following is a legitimate reason to counter an offer?

Price

A licensee tells a potential client that all licensees in the area charge a commission fee of 2%. What antitrust violation does this imply?

Price fixing

A property management agreement is between a property manager and a _____

Property owner

What's the purpose of the Home Mortgage Disclosure Act?

Requires financial institutions to maintain, report, and publicly disclose information about their mortgages

The three types of appraisals most commonly used are the _____, the cost approach and the income approach.

Sales comparison

What responsibility does the seller's agent have to the seller?

Seek a sale at the best price at terms that are acceptable to the seller

Who is responsible for ensuring property descriptions are accurate?

Sell and seller's agent

Lynda has decided to take some additional time off work to spend with her new baby, so she's placed her license on inactive status. Which of the following is true?

She can't practice real estate, but she must still renew her license to maintain the inactive status

Salesperson Dahlia is representing a seller on behalf of her broker, Leo. Salesperson Ken is representing a buyer on behalf of his broker, Stefani. Dahlia's listing agreement provides for compensation to the buyer's agent in the transaction. From whom will Ken receive his compensation?

Stefani

What well-known economic principle says that a property's value is determined by what it would cost to purchase a similar property?

Substitution

Marlon and Leah are interested in buying a home in a new homeowner opportunity area. The 100-year-old row house was renovated and is like new on the inside. The property taxes decreased by more than $5,000 last year. What's the likely reason for this?

Tax abatement

What is the name of the federal law that sets forth guidelines regarding telephone solicitation?

Telephone Consumer Protection Act of 2003

Which one of these forms of ownership gives owners the right of inheritance and allows co-owners to sell their fractional undivided interest without permission from other co-owners?

Tenancy in common

Jenson signed a seller agency agreement with Susan. Right before closing, a hurricane destroyed the property. What happened to Jenson and Susan's agreement?

The agreement terminates by force of law

A property was sold using a general warranty deed. Which one of these statements is true?

The buyer is the grantee

Which one of these would void a deed that's intended to convey property?

The grantor is not mentally competent

The elevator at Morningside Apartments is broker. Who is responsible for making sure it's repaired?

The landlord

What type of agreement accounts for commission to be paid and includes the seller's permission for marketing the property?

The listing agreement

Which of the following facts about a property in Mississippi would a licensee need to disclose?

The property is subject to an easement that could adversely and significantly affect an ordinary purchaser's use or enjoyment

Your buyer clients have access to property tax information for each listing that you've given them. Why are they asking you about county tax assessment schedules?

The property taxes may change drastically after reassessment

Sgt. Johnson is an active member of the Marines. He's been serving for 10 years. He wants to buy a home with no money down. What loan option seems like the best fit?

VA

Christina purchased a house from Thomas. When did she officially gain ownership of the property?

With the transfer of deed from the seller to the buyer

Mary is a Mississippi licensee who is selling a home for the Andersons. The Wilkes are interested in buying the Andersons' property. Which one of the following duties does Mary owe both the Andersons and the Wilkes?

Accounting

In Mississippi, any communication by a real estate licensee or other person on behalf of a real estate licensee is considered to be ____

Advertising

Which of the following statements regarding reasonable accommodations and modifications is true?

An individual can make a request for accommodation or modification at any time

Which of the following is the least specific method for describing a property?

Street address

Mississippi licensee Adele had just arrived at the Office on Saturday morning when a potential buyer who introduced herself as Jess stopped in. Jess had several printouts of properties she'd found online, and said to Adele, "I was wondering if you could take me to tour these properties I found Online." What's the best way for Adele to answer?

"I'd love to help you! We'll need to discuss a few things first, though."

Aaron is purchasing a $350,000 property. He made an earnest money deposit of $4,000, is financing $340,000, and making a $10,000 down payment. He has $7,000 in closing costs. How much does Aaron need to bring to closing?

$13,000

Your clients are purchasing a $160,000 home. If they have a down payment of 25% and the bank charges two points at closing, how much are they paying in points?

$2,400

Dale and Barbara, your buyer clients, aren't thrilled about the current interest rates on home loans. They opt to pay two discount points to their lender to bring down their monthly payment. They're financing $235,000 on their new $400,000 home, so how much can they expect to pay for points at closing?

$4,700

At what level of government are budgeting, site plan review, and building codes controlled?

Local

A tenant's new business venture is a software services firm where IT professionals handle programming and customer service tasks for a number of business clients. His employees all work at tables in an open office space. He most likely has a ____ lease for the office space.

Loft

Kyle, a Mississippi licensee, wants to promote some of his listed properties on his business Facebook page. Which of the following must her do?

Make sure his principal broker's or brokerage's name is prominently displayed

Which of the following scenarios describes an example of unilateral rescission in Mississippi?

Marcus, the seller, fails to update the Property Condition Disclosure Statement after a plumbing leak caused floor damage in several rooms, so the buyer canceled her offer

Edna leased her house to Joan with a right of first refusal. Edna's cousin just offered her $250,000 for the house. What does Joan have to do if she wants to buy the house?

Match the offer on the table

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?

Method of annexation

Darcy's portfolio is on fire! She's got four upcoming listings, and each of them will go on the market for at least $500,000. Before she can count her commission earnings, though, she's got some paperwork to get through. Since Darcy wants to stay on the right side of the law, which of the following sellers does Darcy need to remind about completing the PCDS?

Mikey, an investor who's selling a property that he converted into a three-unit apartment building

What are trust funds?

Money belonging to others held for a specific purpose in the course of a real estate transaction

The acronym PITI is a reference to what real estate-related concept?

Mortgage payment

Which of the following is a requirement in order to be appointed to MREC?

Must have been a Mississippi resident for six years, a broker for five years, and be able to serve a four-year term.

In which of these situations has the licensee compromised the duties of loyalty and disclosure?

Nate didn't tell his client about a conflict of interest related to the sale of his client's property

What phrase do many real estate contracts contain that remind the parties to avoid unnecessary delays to the transaction, and to adhere to all contract dates?

Time is of the essence

To safeguard consumers, what does the Consumer Credit Protection Act, which includes the Truth in Lending Act, require of lenders?

To fully disclose the terms and conditions in any offers of credit

When does a transfer tax become payable?

Upon recording of the deed

Paul and Blake are touring an open house when they notice that the glass on the sliding patio door is very foggy. Is this a concern, and if so, why?

Yes, this is a sign of a leaky seal which reduces efficiency

When you're representing a client in a real estate transaction, what's your responsibility regarding tax advice?

You should tell clients the typical ways that taxes will apply and encourage them to seek advice from a tax professional