California: “Helping Buyers Narrow in on Their Dream Home” Questions only (no answers)
Answers will be revealed with proper subscription
1. Duties of real estate agents include _____________.
a. Obedience
b. Confidentiality
c. Fiduciary
d. All of the answers shown
California: Helping Buyers Narrow in on Their Dream Home
2. “Empty nesters” include buyers that ________________.
a. Have no children
b. Their children have grown up and are on their own
c. 1st time buyers that do not want children
d. All of the answers shown
3. John has a new customer that he is working with and has been pre-qualified for a mortgage of $375,000. Including his down payment and closing costs he can afford a home with a list price of $500,000. The client is not sure what he really wants, but does have a list of 45 properties that he has put together from a search of the public view of the MLS. These properties range in price from $400,000 up to $650,000. What is the FIRST thing that John should do?
a. Start making appointments to view the properties
b. Work with his client to determine a list of features that are desirable
c. Filter the client’s search result by price
d. Have the customer sign an agency agreement
4. What is a possible outcome if a real estate agent does not properly manage the real estate transaction?
a. Wasted time
b. No transaction
c. A mad client that blames the agent
d. All of the answers shown
5. One of the best skills that a real estate agent can have when working with buyers is the ability to _________
a. Understand what type of buyer they are
b. Chat them up
c. Be their friend
d. Buy them a drink
6. Why is energy efficiency important for most homebuyers?
a. High cost of energy, which continues to rise
b. Desire to be “green”
c. Desire to leave a low carbon footprint
d. It is the law
7. Net income is ___________ income, while gross income is ____________.
a. Total / income after taxes
b. Total / income before taxes
c. Income after taxes and other deductions / total income
d. Income before taxes and other deductions / Income before taxes and other deductions
8. What can impact a real estate agent’s efficiency and ultimately their earnings?
a. Working with unqualified buyers
b. People not serious about buying
c. Shoppers
d. All of the answers shown
9. In most cases, the open buyer specifically appreciates the ____________that the agent performs.
a. Fiduciary duties
b. Research
c. Confidentiality
d. Friendship
10. The study done with the different types of jams suggested:
a. People are more likely to purchase something when they have lots of choices
b. People are more likely to purchase something when they have fewer choices
c. The amount of choices provided has no impact on a person’s buying decision
d. None of the above
11. Often, homeowners may want to downsize their homes. It is important for the real estate agent to understand if the reason for trading down is because their existing home is too big or if they are looking to _____________.
a. Retire
b. Travel
c. Own a second home
d. Reduce their costs
12. Which of the following are characteristics of a buyer looking to trade down?
a. May be looking to reduce costs
b. May be going through a personal or financial hardship
c. May be looking for less space to maintain
d. All of the answers shown
13. The willingness of the buyer client to ____________ is a good sign of the buyer’s seriousness to buy a home.
a. Do research of their own
b. Attend “Open Houses” on the weekend
c. Visit “Model Homes” on the weekend
d. Obtain a pre-approval or pre-qualification for a mortgage
14. Often buyers think that the home they are buying is __________, while the home they are selling is __________.
a. Priced correctly / priced correctly
b. Overpriced / priced correctly
c. Overpriced / underpriced
d. Underpriced / underpriced
15. In addition to being durable, long lasting and adding value to a home, tile and oak flooring _______________.
a. Is easy to clean
b. Easy to maintain
c. A great product for people suffering from various respiratory allergies
d. All of the answers shown
16. New and old _________ can negatively impact indoor air quality and have a negative impact on people suffering from various respiratory ailments.
a. Carpet
b. Tile
c. Engineered Hardwood
d. Wallpaper
17. The text suggests a certain website to visit that will help you find a certified contractor to perform an energy audit. What website was that?
a. Mckissock.com
b. Energyaudits.com
c. Resnet.us
d. Energystar.gov
18. Which of the following are characteristics of a first-time home buyer?
a. Older
b. Unrealistic expectations
c. Experienced
d. Knowledgeable on the home buying process
19. If a client asks a real estate agent to recommend the name of a lender or home inspector, how many names should the agent provide?
a. None
b. One
c. Two
d. Three or more
20. One of the keys with dealing with buyers that are well informed and have done research on neighborhoods is to ____________.
a. Keep answers brief and to the point
b. Provide detailed responses
c. Assume that they are not serious about buying
d. None of the answers shown
21. An effective way to manage expectations of the sales price with a seller is to ____________.
a. Show them similar properties on the market
b. Refer them to the MLS
c. Not worry about them, the house will sell at some price and at the end of the day, they will be happy
d. None of the above
22. Which of the following statements is true?
a. It is hard to find a home that has absolutely every desired feature.
b. All buyers are the same.
c. A house is a house and a buyer’s culture never factors into the decision to buy.
d. It is ok to turn down an offer on a home because the buyer is a minority.
23. What does the text suggest that you bring with you to a showing to determine how much natural sunlight will be shining through the windows at each time of day?
a. A prism
b. A compass
c. A sun dial
d. A pocket watch
24. John has been working with Jane and Joe, who are recently married, on finding them a suitable home. John found 6 homes that meets their needs and budget. Jane is very excited about 2 of the 6 homes that John has showed them. However, Joe is very negative about everything that they have seen. What issue should John consider?
a. Jane wants to buy a home, while Joe does not
b. John has not done a good job identifying their needs
c. John is looking for suitable properties in the wrong neighborhoods
d. None of the answers shown
25. The different types of buyer profiles include _______________.
a. Open Buyer
b. Closed Buyer
c. Emotional Buyer
d. Invested Buyer
26. In the event that a home is suspected to have mold, the best way to verify this is to ___________________.
a. Have the home examined by an industrial hygienist
b. Perform home tests to detect mold
c. Have the home examined by a building contractor
d. All of the answers shown
27. The best way for an agent to provide factual data is to ___________.
a. Do the primary research and report the findings back to the client
b. Guide the client to where the data can be found
c. Do not provide any assistance
d. Refer them to the seller’s agent / broker
28. In many cases there is a direct correlation between school scores and __________.
a. Transfer tax
b. Property taxes
c. State income taxes
d. Federal income taxes
29. Single-family homes that have one level are often popular with ____________.
a. Disabled buyers
b. Buyers with a member of their family with disabilities
c. Elderly buyers
d. All of the above, but an agent should NOT assume that the buyer is only interested in single story homes
30. One of the ways to mitigate the timing risks associated with a same day closing on two related transactions (A client closing on the home they sold, as well as closing on the new home they just bought) is to arrange _______________.
a. A short term rental option for the seller for a set period of time
b. A lease option for the seller, which will allow them to stay in the home they sold
c. A hotel room or suite and schedule the closing on the new home purchase 2-3 days later.
d. All of the answers shown
31. One of the results of showing a buyer lots of houses is that _____________
a. It can lead to “analysis paralysis”, where they can not decide what home to buy
b. It frees up time for the agent
c. It keeps the client engaged with the agent
d. All of the above
32. Family members often add unrealistic expectations to what type of buyer?
a. Vacation homebuyers
b. Move up homebuyers
c. First time homebuyers
d. None of the answers shown
33. If a buyer is looking to simply relocate, what is the trouble that they often have when finding a new home?
a. They rarely know what they want
b. They are rarely sure of their price range
c. They are likely unfamiliar with the market in the new area and how their current budget fits into that market
d. It does not match exactly what they had in mind
34. A buyer is relocating to Fairfax, Virginia, which is in the Washington, D.C. suburbs, due to a work transfer and is not familiar with the area. His office is located in downtown Washington. What information would be of use to him in selecting a home?
a. Driving time to his office from the home during rush hour
b. Distance to public transportation options near the home
c. Distance from his office to public transportation options near his work
d. All of the answers shown
35. One of the most important questions to ask a buyer looking to “trade up” is _______________.
a. Have you sold your home?
b. Is your house for sale?
c. Have you been pre-qualified for a new mortgage?
d. All of the answers shown
36. John, who is a buyer, is looking for a Craftsman style home with at least 1,800 square feet, is at least 75 years old and is in perfect condition, but wants to pay no more than $300,000. The agent working with John, has determined that the current market for that style home is over $600,000. John refuses to make any compromises in his requirements or make any offer on the available properties. What should the agent do next?
a. Drop John as a client
b. Discuss with their broker dropping John as a client
c. Keep looking for available properties
d. Stop returning John’s daily calls
37. What percentage of people in the United States are allergic to pets?
a. 5%
b. 10%
c. 25%
d. 40%
38. An example of a category, which could be useful in “filtering” available properties include ____________________.
a. Towns
b. Neighborhoods
c. Zip codes
d. All of the above
39. Staging of an unoccupied home is critical because _________________.
a. It allows the buyer to visualize the use of the rooms
b. Gives the house an appearance of a home
c. It allows buyers to visualize their furniture in the home
d. All of the answers shown
40. The study done with the magazines suggested:
a. People are more satisfied with their purchase when they have many choices to pick from
b. People are less satisfied with their purchase when they have fewer options
c. The amount of choices provided is not as significant to satisfaction as how those items are categorized
d. All of the above
41. James is interested in buying a new condominium in the upscale DuPont Circle area of Washington D.C. His requirements include 2BR, Den, 2 bathrooms with a minimum of 1,400 square feet. He has been qualified for a mortgage, but including his mortgage, down payment and closing costs, he is tapped out at $400,000. After an exhaustive search, the agent has discovered that there are many options available, but are well over his budget. What should the agent do?
a. Meet with James to go over what he has found
b. Provide alternatives in another neighborhood that meet James’ requirements and budgets
c. Provide alternatives in the DuPont Circle area that are within budget, but may have features that James will need to compromise on
d. All of the answers shown
42. Once pre-qualified the most important thing to ask a buyer that is interested in a new home is _____________.
a. Which new home communities have you visited? / In most cases if they have previously registered, the builder is not going to pay the agent a commission
b. When do you need a home? / Need to focus on completed homes
c. Which communities have you visited? / Able to use this information to narrow down the search
d. None of the above are correct
43. What is one of the real dangers in a client making an offer on a property that is significantly below market value, while demanding expensive repairs and the seller paying closing costs?
a. The offer will be rejected
b. The offer is so low and the terms so outrageous that the seller refuses to negotiate with the buyer under any conditions
c. The real estate agent for the buyer looks bad
d. All of the answers shown
44. The biggest factor in influencing the energy consumption of a home is ________.
a. The “tightness” of the home
b. Utility rates
c. The occupants of the home and their habits and desires to be warm or cool
d. The price of crude oil
45. One of the most valuable tools when working with any buyer is to have them put together a wish list of everything that they want a home to have. Once the list is complete, the buyer should indicate their top ________ choices.
a. 1
b. 3
c. 5
d. 10
46. Real estate agent Joe has identified a home at a great price and in a great location, which has all of the features that John and Jan desire. The only problem with the home is that it has a septic system, which they did not want. Should Joe show the home to John and Jan?
a. Yes, because John and Jan are going to need to determine how important the requirement to have a septic system is
b. The cost of maintenance
c. No, Joe did not like the house
d. Maybe, this is a judgment call by the agent, with no clear answer
47. The blower door test, coupled with an infrared camera, is used to _________________.
a. A. Assess the tightness of the building envelope and determine where air is being lost
b. B. Determine how often the air is being changed within the home
c. C. Determine indoor air quality
d. Both B and C
48. Joe has a new client that he is working with and has been pre-qualified for a mortgage of $475,000. Including his down payment and closing costs he can afford a home with a list price of $700,000. In addition, the client has signed an exclusive agency agreement. Although, the client is not sure of the features that he wants, he has a list of 87 homes that appeal to him, which he found in various real estate publications. What is the next step for Joe?
a. Start making appointments to view the properties
b. Work with his client to determine a list of features that are desirable
c. Filter the client’s search result by price
d. None of the above
49. John is a real estate agent working with a brand new buyer. The buyer has identified 75 properties that he wants to see in their first meeting. What is the first thing that John should do?
a. Jump in the car and start looking
b. See if he has been pre-qualified or pre-approved for a mortgage
c. Filter the properties to narrow the list to no more than 4 properties
d. Throw the listing papers up in the air and choose the listings that land face up.
50. The goal of a buyer ranking their priorities is to ____________.
a. Assist the agent in narrowing down the search for suitable properties
b. Force the buyer to set their priorities
c. Assist in managing the client’s expectations that compromises are going to be necessary because a house that has everything does not exist unless the client is willing to build a custom home.
d. All of the answers shown
51. When working with a buyer the better that you can understand their ________, the faster the real estate agent will find the right property.
a. Wants
b. Needs
c. Must haves
d. Dreams
52. In addition to having a client sign an agency agreement with the brokerage firm at the first meeting, what else should the agent do?
a. Get all of the client’s contact information
b. Discuss their needs
c. Have the client pre-qualified
d. All of the answers shown
53. In dealing with clients in a real estate transaction, one of the key things that every real estate agent should do is to _____________.
a. Be their client’s friend
b. Manage the client’s expectations
c. Allow them to directly participate in the face to face negotiations with the seller
d. All of the answers shown
54. In general, recent data has shown the most popular feature in a home for a first time homebuyer is a _____________.
a. Walk in closet
b. Gourmet Kitchen
c. Master bathroom
d. Outdoor deck
55. Jane and John absolutely loath their 1.5 hour commute each way into Washington D.C. from suburban Maryland and this was the only reason they sold their home, which they both loved. They have been pre-qualified for their mortgage, and can afford a home up to 1,000,000 because of the equity that they have in their existing home. As their real estate agent which house are you going to show?
a. A home with similar features that is 10 minutes closer
b. A home in a different area with the same features of their older home, but is near a subway station, which will reduce their commute by 1 hour each way
c. A larger home with many of the same features of their old home that is an excellent value, but still results in an 1.5 hour commute each way
d. None of the above
56. Which type of buyer are you likely dealing with in the following scenario? She gives off the perception that she does not really want to buy a home. She is nit-picking every detail and seems impossible to satisfy.
a. Open Buyer
b. Excited Buyer
c. Negative Buyer
d. Just the Facts
57. Assuming that a client needs financing, what is the downside to a real estate agent that spends time showing homes to a client without pre-approval of a mortgage?
a. The agent does not know if they can actually buy a home
b. The agent could be showing them homes that the client cannot afford
c. The agent does not know if the client is really serious about buying a home
d. All of the answers shown
58. The best solution to determining the energy efficiency of a home is _____________.
a. An energy audit
b. Asking the previous owner
c. Calling the utility company
d. Ask the home inspector
59. One of the downsides of a ducted forced hot air furnace system is ___________.
a. The cost of energy
b. The cost of maintenance
c. That maintenance includes a periodic duct cleaning
d. All of the answers shown
Extra random (started with cali principles-6/23) —
(ANSWERS will be revealed with proper subscription)
1) When does the licensee’s duty of confidentiality to the client end?
2) Drake has a new listing, and he signs a sub-agency agreement with Erika. Erika has a buyer customer, Trinity, who wants to see the listing and eventually buys it. What’s true about the agency relationship in this situation?
3) Serena’s customer, Ben, has some defects in his property’s title. He asks her to please keep this information to herself. What’s Serena obligated to do in this situation?
4) Which laws prevent real estate licensees from setting a standard rate for commissions or compensation?
5) Eric is making an offer on his dream home. He is ready to write the earnest money check. To whom should he make the check out?
6) Fraud is always _______.
7) Buyer brokerage relationships ______.
8) What’s the overhang on a roof called?
9) Aside from price, which of the following is a legitimate reason to counter an offer?
10) Which type of buyer usually has a fixed income and is looking for a home with little to no maintenance?
11) What type of listing agreement provides the most protection for the listing agent’s commission?
12) What do you call the person who or entity that oversees trust or escrow money?
13) Tom is comparing heating systems. He’s looking at an 80,000 BTU system with an AFUE of 85%. Which of the following statements about these measures is true?
14) Which of the following bears the weight of the building?
15) Homeowners can take several actions related to pest infestations, but ______ should be left to professionals.
16) Which of the following would be considered a substantive communication about a property?
17) Which of the following items go into the seller’s credit column and the buyer’s debit column?
18) What electrical component is usually placed in the garage or basement for ease of access?
19) Which of these is a colorless, odorless, radioactive gas that is released when uranium decays?
20) What not a good idea to post photos of your clients’ expensive belongings in place?
21) Who must provide a copy of the seller instructions if a cooperating broker requests it?
22) Your Aunt Peggy works in another county and is thinking of buying a townhome. She’s working with the seller’s agent but isn’t under an agency agreement. What should you tell her about this situation?
23) When a prospective homebuyer isn’t represented, what doesn’t she have?
24) Which of these is a problem with a property that would have a negative impact on the property value or pose an unreasonable risk on the people who will reside in it?
25) Which type of contract is not based not on words, but is based on the parties’ actions or behaviors?
26) To prepare for financing, buyers should ______.
27) Before a blueprint and building specifications will receive a building permit, the blueprint must be stamped by __________.
28) Which of these must be obtained before a developer can begin construction?
29) Mixing escrow funds with personal funds is illegal and is called _______.
30) Who determines the earnest money amount?
31) Francois wants his transaction broker, Shelly, to refuse to show her other customers and clients the property he wants to buy. What should Shelly say to Francois about his request?
32) Which of the following statements best illustrates how the National Electrical Code is enforced?
33) When using the farming approach, diversity is a key factor when identifying a neighborhood. Which statement best describes diversity?
34) What’s your relationship with a buyer who’s not a client but is a customer?
35) Which party is usually responsible for appraisal and credit report fees?
36) In a transaction broker situation, the transaction broker represents _____.
37) Calculate the total debt ratio based on the following information, assuming the lender does not consider any debt with 10 or fewer payments remaining: $1,500 condo payment; $100 monthly association fees; $150 monthly student loan payment; $300 car payment (with only four payments remaining); and a monthly gross income of $5,000.
38) Which of the following would be considered a first practical opportunity for communication about a property?
39) You are not expected to be an expert at investigating or inspecting environmental issues if it is outside your area of expertise. Encourage your clients to seek professional property inspection services to determine material _______ facts.
40) Daria is representing Max, a seller. Unbeknownst to either of them, Max’s home has a serious foundation issue that is only detectable by a trained professional. This type of problem is considered a(n) ______.
41) Which of the following expenses is typically the buyer’s responsibility?
42) Jarvis is a builder. The building codes that apply to Jarvis’s work were established at what level (or levels) of government?
43) Harmful gases resulting from waste incineration are disposed of in a special process. Where are they stored once processed?
44) The seller pays for which of the following closing expenses?
45) Which fees are negotiated between the seller and the broker, and can be either a lump sum or a percentage of the listing amount?
46) As a transaction broker, you are responsible for representing _______.
47) When a loan pre-approval is provided to a buyer, what does it mean?
48) You’re working with buyers who have found their dream home, but it’s almost more than they can afford. When the appraisal comes in, it’s higher than the agreed-upon sales price. Now what?
49) What type of window consists of one or more panes that either move up and down or side to side in tracks?
50) The _______ of a property assumes normal market conditions, a willing buyer and seller, and an arm’s length transaction.
51) Licensee Brooke receives a $1,000 bonus from the seller when she encourages her buyer client to purchase the seller’s property. She doesn’t let her client know about the bonus. Has Brooke committed a violation, and, if so, what violation has she committed?
52) You represent the Taylors, who have minor children and are looking to buy a home. They ask you whether there are registered sex offenders in the area. How should you respond?
53) Which party to the transaction pays earnest money to solidify his or her commitment to completing a real estate transaction?
54) What’s the difference between direct capitalization and yield capitalization when appraising income property?
55) Llorona is working with her transaction broker, Jorge, to list her home for sale. She asks Jorge for advice on setting the listing price for her property. What is Jorge legally allowed to tell Llorona?
56) Which of the following appears on the closing statement?
57) Which of the following statements is true regarding earnest money in Kansas?
58) States where the burden to determine a property’s condition rests on the buyer are considered _______ states.
59) When preparing a market analysis, or CMA, what’s the maximum number of adjustments you can make to the subject property?
60) Bob wants an open listing agreement. Why might this not be in Bob’s best interest?
61) Andy is interested in buying a home, but his credit score isn’t the greatest. Which of the following is a way he could improve it?
62) Private sewage disposal systems, such as septic systems, are governed by the _______.
63) Marnie decided the listing she was representing would be perfect for her family. She had her brother buy it, and after closing, he sold it to her. What is this an example of?
64) Freida is planning the plumbing system for her new building project. She wants the least expensive and easiest-to-install material for all her supply lines. She’s highly sensitive to chemical smells and hopes to avoid the use of chemicals to install the pipes. What’s her best choice in piping materials?
65) What is an escalator offer?
66) A title representative offers to pay you a referral fee for sending more clients to her. Would accepting this fee be a violation?
67) Anthony meets up with his buddy, Ted, a licensee for a brokerage in Shreveport, to discuss the possibility of Anthony getting licensed. Why does his friend tell Anthony it’s so important to get E&O coverage?
68) Cameron had a listing agreement with a client named Ben. Ben got mad at Cameron and said he was terminating the agreement. Can Ben do this?
69) Sometimes when a buyer can’t qualify for a loan, the property seller drops the price and accepts a second mortgage without disclosing it to the original lender. This is a form of mortgage fraud known as ______.
70) From whom or what entity do licensees receive compensation for brokerage services once a transaction is closed?
71) From a real estate professional’s point of view, what’s the purpose of qualifying buyers?
72) What’s the best way to respond when your buyer’s offer is accepted verbally?
73) A broker’s price opinion is generally written by ______.
74) When drafting a sales contract, how should a licensee handle areas that don’t pertain to the current transaction?
75) Last week, The Rialdis’ listing agreement ended after months on the market and not even a single offer to show for it. Today, they received a call from Mindy, a real estate professional who would like to relist the property and has some new ideas for getting it sold. What approach is Mindy using to find listings?
76) Keeping an area dry and keeping the air circulating can ______.
77) In order to avoid wire fraud, always contact the closing officer in order to ______.
78) Karissa is financing her home through a lender and is offering no money as a down payment. What type of loan is she most likely using?
79) When a listing agreement is signed, the two parties who enter into the agreement together are ______.
80) Properly pricing a property that is entering the market will ______.
81) Marissa, a buyer, asks you what she can do to prepare to buy. What should you tell her?
82) A licensee may accept compensation from ______.
83) If buyers see evidence of a pest infestation, they should always inquire with the seller to see if there is ______ on the property.
84) Rick represents Jules, a seller, who wants to know if he has to disclose his leaking roof to buyers. Rick says yes, since the problem constitutes _______.
85) When an investor receives title to a property—often by using a straw buyer—doesn’t make the mortgage payments, and rents out the home until foreclosure occurs, the investor is committing a type of mortgage fraud known as ______.
86) Licensees must always be paid by their brokers, unless ________.
87) Fiona and her husband, Ed, have just entered into their first-ever agency agreement with their new agent, Ken. The couple is a little nervous, but they like the idea that they have something in writing that explains both their agent’s responsibilities and what they’re expected to do as part of the relationship agreement. Life is good. What type of agency exists between Ken and his clients?
88) Wayne conveys a property to Robbie until Robbie’s death, when the property is conveyed to Tiffany. What is this scenario an example of?
89) Which type of mortgage has a payment that adjusts (usually upward) based on a predetermined schedule and amount?
90) What occurs when one or both parties don’t meet all terms of the contract?
91) When a buyer and seller enter into an agreement to transfer ownership of property, what type of contract will be used to complete the transaction?
92) A borrower makes the same monthly mortgage payment for the entire term of the loan. At the end of the loan period, all of the interest and principal is paid off. This is known as a ______ loan.
93) Sheila and Vickie are sisters who enter into a contract to buy a vacation property. The sisters get into a dispute, and Vickie no longer wants any part of the deal. However, Sheila talks her younger brother Joe into replacing Vickie on the contract. Vickie agrees to the substitution. This is an example of ________.
94) Buyer Josephine had just signed a contract on a house when she discovered that seller’s agent Franklin knew that this house was 3500 square feet, but he listed it at 3900 square feet. Which essential contract element has been compromised?
95) An acre of land costs $15,000. Jerry would like to purchase four acres. How much will this cost?
96) Janice’s life tenant, Jacob, is currently living on her property. Once Jacob dies, Janice has made arrangements that the property will go to the School for the Gifted. What interest does the School for the Gifted currently have?
97) ______ is the legal concept of property ownership.
98) Burt is an unrepresented buyer of Sima’s home. Sima’s listing agent is Aubrey. Who’s the client in this transaction?
99) Assume you’re entering into an agreement with a client to help him look for a property to call his own. What type of contract will you use to identify your agency relationship’s terms?
100) A(n) ________ is a set of guidelines for ethical conduct.
101) Shawn has agreed to pay $275,000 for his new home, with a $30,000 earnest money deposit. His bank is loaning him 80% of the appraised value of $350,000. In addition, the settlement costs he’s required to pay amount to 6% of the purchase price. If you wanted to calculate how much additional money Shawn needs to bring to closing, which of these would be a good place to start?
102) Which of the following is an example of a limited agent?
103) Who’s responsible for conducting the closing meeting?
104) What’s a brownfield?
105) Which of the following actions does the secondary mortgage market commonly take?
106) What is the legal effect on the purchase agreement if an attached contingency is rejected or not met?
107) What type of agency exists because of the actions and behavior of the parties?
108) As part of the license application, prospective appraisers must submit ________.
109) Along with your two siblings, you have a one-third interest in your childhood home. You’ve all decided to put the house on the market and you’ll serve as the listing agent. What must you disclose to parties to the sale?
110) A subdivision that includes space for offices, shopping centers, movie theaters, and apartment buildings is an example of a _________________.
111) Shawn specializes in the sale of retail stores and shopping centers. What types of properties are these?
112) Which of the following items go into the seller’s credit column and the buyer’s debit column?
113) Which of the following are addressed by the Subdivided Land Act?
114) Which term refers to the ordinances/regulations that protect the community and control property development within subdivisions?
115) Which of the following statements about restrictive covenants is true?
116) Donna rents an apartment in a building that’s being converted to condominiums. By law, the owner of the building must give Donna ________.
117) Marvin purchased the right to use a resort unit for two weeks every year, although he doesn’t own the property itself. What kind of timeshare is this?
118) Which option best defines voluntary alienation?
119) In how many states is undisclosed dual agency legal?
120) What is a lifetime cap, as it relates to an adjustable rate mortgage?
121) Which document is provided to borrowers no fewer than three days prior to closing and provides details about the costs of the transaction?
122) What is typically used to prove there are no encroachments on the property?
123) Which of the following is a right included with real property?
124) Sue, the seller, and Carl, the buyer, are preparing to close on their transaction. Who is responsible for reviewing the settlement statement before closing?
125) How do predatory lenders take advantage of consumers?
126) Dominique purchased a timeshare that conveys the right to occupy the property for two weeks each year, continuing for 20 years. However, the timeshare does not convey ownership. This is an example of a ______ timeshare.
127) Only brokers may do which of the following?
128) Which essential element of a deed contains the words, “does hereby bargain, grant, deed, and convey?”
129) What does procuring cause refer to?
130) If Elizabeth is a property manager, she is acting as what of type of agent?
131) Which of these describes a deed?
132) What happens to a joint tenant’s share of property when the joint tenant dies?
133) Which of the following statements about covenants is true?
134) Which of the following opinions can a real estate licensee provide?
135) A dwelling is in untenantable if it substantially lacks
136) Transfer of all of a tenant’s rights under a lease is
137) If a landlord wants to increase the rent on a unit that is regulated by the Tenant Protection Act of 2019, what’s the maximum allowed as an annual increase?
138) Malcolm loves his apartment, even though he’s rarely there. His job in international development has him on the road for months at a time. He doesn’t have to worry about missing out on his lease renewal though, because he has a(n) _____________
139) Eric’s residential tenant hasn’t paid rent for more than three months, and so Eric went to court to start eviction proceedings. He’s now been granted the right to remove the tenant. This is a(n) _________________ eviction.
140) A security deposit on furnished residential property can be no more than?
141) A retail business has a percentage lease based on 5% of gross income of up to $25,000 per month and 2 1/2% of gross income above that amount. The minimum to be paid is $1,000 per month. For a month in which the business has a gross income of $47,000, what will be the rent payment?
142) The owner of 417 Main, an office building, receives a guaranteed monthly income from her tenants and pays no expenses. She has
143) Which of these landlords had filed an unlawful detainer suit?
144) A landlord has a right of entry
145) Buyer Penelope adores the house at 212 Maple Street, but two weeks after making her offer, she’s discovered it’s got some issues that weren’t identified on the state-required seller disclosure form. She still wants to buy the house. Since the seller appears to have lied on the disclosure form, what can Penelope do?
146) Jose, who is 16, entered into a contract to sell a condo he owned. Because Jose is a minor, ______.
147) Which of these is a system that many states use to determine lien priority?
148) What’s the definition of a land contract?
149) Where is a complaint against a licensee filed?
150) Which of the following is true about condominium ownership?
151) What’s a subordination agreement?
152) Which act gives companies the right to sue a competitor for making deceptive ad claims?
153) What’s a benchmark?
154) You have clients who are interested in purchasing a property in a floodplain. As their agent, what do you want to ensure they are aware of?
155) What type of ground lease allows a tenant to buy out the lease?
156) Lenders will require which type of fund for taxes and insurance?
157) In order for you to earn compensation for brokerage activities, you must be employed as the agent of the client. How is this employment accomplished?
158) A broker’s price opinion is generally written by ______.
159) In states without full disclosure requirements, whose responsibility is it to review disclosures, ask questions, and obtain a home inspection?
160) A good way for real estate licensees to prevent problems at the closing is to ____________.
161) Whose responsibility is it to keep track of all buyer contingency deadlines and ensure they’re not missed?
162) Which term refers to a permitted deviation from current zoning restrictions that allows an owner to use land for a purpose that’s otherwise prohibited, and requires the owner to prove the zoning creates an unnecessary hardship?
163) Assigning a lower-density use zone to an area that previously allowed higher density and that may reduce property values is known as ______.
164) Mortgage lenders will ___________
165) The location of wetlands and springs at a development site is part of ______.
166) Which loan type is a fixed-rate mortgage where the monthly payments increase over time, according to a set schedule?
167) What’s a foreclosure?
168) _______ can be defined as everything that’s not real property.
169) Which of the following items must be included in the security instrument used for a real estate transaction?
170) Which of the following statements best describes a mortgage broker?
171) Appraiser Niles uses ______ to determine a range of values based on comparing a subject property to comparable sales. He makes sure to use some comparables that lack features of his subject property, and others that have even more desirable features, to balance out the comparison.
172) At what point in a residential transaction must a seller’s agent deliver a completed Residential Real Property Disclosure Report to a buyer?
173) Which of the following is a residential dwelling with attached walls, where the owner also typically owns the land on which the home sits?
174) A ______ is the expected rate of return on an investment.
175) Carolyn is representing John in the sale of his home. Which listing agreement clause gives her additional authority and obligates her to distribute the listing to other brokers?
176) _______ are artificial attachments to land that include items such as fencing, buildings, and walkways.
177) Violators of the Sherman Antitrust Act may be subject to fines. For what amount may corporations and individuals be liable?
178) You helped Frasier buy his penthouse condo. He’s just received the keys and you two have said your goodbyes after closing, and you’re heading back to the office to close out the transaction file. Which of your fiduciary duties continue?
179) Loyalty doesn’t survive agency termination, because you may end up representing the opposite side in a future transaction. But confidentiality and accounting survive agency termination.
180) When licensee Linda asks potential seller clients about their reasons for selling, what’s her purpose?
181) In the conveyance of real property after death, what trumps any terms specified in the deceased person’s will?
182) Which agency duties survive termination of an agreement?
183) With regard to contingencies, what responsibility does licensee Wanda have when representing buyers?
184) With which approach to value does the appraiser analyze a property’s ability to earn future income?
185) Which federal lending act was introduced to combat lending discrimination in low- and moderate-income neighborhoods?
186) How large is an acre?
187) Federal fair housing laws prohibit ______.
188) In a life estate, all of the following apply during the term except ______.
189) Zoning regulations must be aligned with an area’s ______.
190) The courts use three primary tests to determine whether something is personal property or real property. What are the names of the three tests?
191) Why is it important for a buyer to know if an underground storage tank is present on a property?
192) Tim, a new buyer client, is pre-approved for a mortgage loan of as much as $250,000. This information can help to _______.
193) It’s not a good idea to post photos of your clients’ expensive belongings. Why is that?
194) Broker Alex learns that his friend Joann is frustrated with the broker who listed her home. Alex encourages her to break her existing agency agreement and sign with him instead. This violation is an example of ______.
195) Which document provides an estimate of the costs a buyer is likely to pay at settlement?
196) Bob and Mary are financing $80,500 for a new home. Their lender will approve an interest rate of 6.5% if Bob and Mary pay three-and-a-half discount points at closing. How much is this?
197) What’s the purpose of a short sale?
198) Wyatt is selling his home to Kirk, and promises in writing to have a licensed professional repair the home’s leaky roof. After closing, Kirk, who financed the purchase, discovers that Wyatt patched the roof poorly and it leaks whenever it rains heavily. Under the Illinois statute of limitations, if Kirk wishes to sue Wyatt, he must do so within ________ of the contract breach.
199) The Lanham Act gives companies the right to ______.
200) d. +Sue competitors that are using deceptive claims in ads
201) The power of the state to claim property when the owner dies without a will and without locatable heirs or creditors is also known as ______.
202) Agents owe fiduciary duties to their clients. Among these are loyalty, reasonable skill and care, confidentiality, accounting, and disclosure. Which fiduciary duty is missing from this list?
203) George just applied for a conventional loan on a cottage he wants to buy. What percentage of the loan can he expect to submit as a down payment?
204) Which of the following best describes what an appraisal is?
205) Which of these is a recommended best practice after any discussion between a licensee and a client or other party involved in a transaction?
206) How do licensees use the funnel?
207) The funnel is a useful way to determine how your lead generation activities result in a calculated amount of income.
208) Your clients, the Meltons, found their dream home, which they will be financing with ABC Lending. What should they include with their offer?
209) In which of the following situations is it legal to receive compensation?
210) Dominic’s seller clients want him to lower his commission rate. What’s the best way for him to reply?
211) Whose consent and agreement are required to conduct a short sale?
212) Bart and Claire are under contract for Claire to buy Bart’s house, but her financing fell through. They decide to cancel the contract just as if it never happened. Which termination method does this describe?
213) Which of these photo descriptions may be a potential MLS violation?
214) The ______ provides buyers with an approximation of the costs they’re likely to pay at settlement.
215) Which of the following activities occurs before closing?
216) The buyer will need to obtain an insurance binder prior to closing, while the other activities listed here occur during closing.
217) _________ occurs when the parties meet all terms of the contract.
218) Under what circumstances may a seller legally terminate an exclusive right-to-sell listing agreement before its listing term has passed?
219) When an ______ is added to a sales contract, it changes the original terms of the contract.
220) For a deed to be valid, which two elements are required?
221) Agreeing to a specific price, price range, or minimum or maximum charges among competing firms is an example of which type of antitrust violation?
222) After signing a purchase contract, buyer Pam and seller Waylon both realize that the address for Pam’s newly-purchased home reads “344 Beverly Way” instead of the correct address: “334 Beverly Way.” Which of the following is true about this situation?
223) What’s the difference between an exclusive right-to-sell and an exclusive agency agreement?
224) Sanjiv recently signed a brokerage agreement with a landlord client. To be considered a valid contract in Illinois, the agreement must have either a provision for the client’s right to terminate annually with a 30-day written notice or ______________________.
225) Jamilynn violated antitrust law by engaging in price fixing. Which of these actions did she most likely perform?
226) What are the three most common forms of legal descriptions?
227) What type of loan may be used if the buyer is obtaining seller financing?
228) Nina signed an exclusive buyer agency agreement with Ken, her client. Ken buys a property from another agent. What might happen?
229) The zoning ordinances changed 10 years after Stan built his home, and it was grandfathered into the current zoning through nonconforming use. Now Stan is selling the home. Which of the following is true regarding the new owners’ responsibilities to comply with zoning regulations?
230) This statement is part of a promissory note attached to a security instrument: “I have the right to make payments of Principal at any time before they are due.” What’s the name of the clause where this statement is included?
231) If a buyer you represent waives the inspection, what should you do?
232) b. +Get the waiver in writing
233) Blake recently negotiated a net lease for space in an office building he owns. Under a net lease, the tenant pays ________.
234) With a net lease, the tenant pays a portion of the property operating expenses, typically the utilities.
235) Which laws does the Office of Fair Housing and Equal Opportunity uphold?
236) What was the estimated cost of improvements?
237) Which of the following measurement systems is mostly used in states that were part of the original 13 colonies?
238) You have found the perfect home for Lucy and she is ready to make an offer. The home was built in 1938. Who is responsible for scheduling paying for the home’s lead inspection?
239) Which of the following is a true statement about options and option fees?
240) The state claimed Sophia’s home under eminent domain. It appraised her property and offered to pay Sophia the appraised value for the home. What’s this process called?
241) ______ is when one party didn’t meet the terms of the contract in the specified timeframe, and is now being required to do exactly what was agreed to in the contract.
242) Jay’s new loan to purchase a property includes the seller’s existing mortgage. What type of loan is this?
243) What are PCBs?
244) Which term is used to define a search of public records going back at least 60 years to establish a property’s title history?
245) Which of the following describes the appropriate capital gains exclusion for a taxpayer’s primary residence?
246) When is a transfer tax payable?
247) A buyer can submit the earnest money deposit in the form of __________.
248) Licensees’ ethical duties to the public include not naming false consideration, _________________________, and completing paperwork accurately.
249) The cost approach to finding an appraised value measures ______.
250) Wendell is a first-time home buyer who needs to take out a loan to help finance his purchase. What is the first thing Wendell must do once the seller has accepted his offer and the contract has been finalized?
251) What is the highest penalty an unlicensed individual practicing real estate may be fined for more than two offenses?
252) Which of the following is an example of a development cost?
253) Which of the following items is something a lender is prohibited from doing if the lender wants to write qualified mortgages?
254) The question, “What’s the purpose of this appraisal?” can be answered by which step of the appraisal process?
255) A valid deed must contain all of the essential elements, and ______.
256) In order for an owner-occupant of a building with rental units to reject applicants based on sex, marital status, gender identity, and/or sexual orientation, they must not own more than how many rental units in a building?
257) How do discrimination testers work?
258) The VA guarantees _____ of the home loan amount.
259) Investors in commercial real estate often give up _________ when they purchase a new property.
260) A limited liability company combines some advantages of
261) There are many versions of property management agreements, although all management agreements should include
262) Soundproofing and decorative material, shingles and siding made before 1970 contain what hazardous material?
263) The listing agreement is a legally binding contract between __________________.
264) Rick, a builder, is getting a loan in which two properties are used for collateral. This is an example of a _______ loan.
265) Which one of the following is a buyer required to disclose in the Purchaser’s Representations section of the Regional Sales Contract?
266) What is a land contract?
267) What must occur to effect a transfer of title?
268) It’s very important that a buyer obtain a/an _________that shows that he has obtained homeowners fire and hazard insurance.
269) What is the depreciation schedule for a residential income-producing property?
270) Radon has natural origins and is a colorless, odorless, radioactive gas that’s released when ___________ decays.
271) A buyer can submit the earnest money deposit in the form of a check or __________
272) How many approaches do appraisers use when estimating a property’s value?
273) What regulation or regulatory authority identifies sites that have hazardous substances, and requires clean-up by the responsible parties?
274) What is a gaseous compound used in refrigeration cleaning solvents, Styrofoam, and aerosol propellants?
275) The definition, “The earth’s surface extending downward to the center and upward to infinity and including permanently attached natural objects,” describes ____________.
276) When possible, comparable sales from ______ should be used.
277) In relation to appraisals, what is a “federally related transaction”?
278) Which type of REIT receives most of its revenue from rental of its properties?
279) The income approach to appraisal is based on which value principle?
280) Ownership in a planned unit development consists of ______.
281) Land, plus all things permanently attached to it naturally or artificially, is ______.
282) John is an investor who wants to find out how much his money could’ve earned if he’d put it into a different investment, which is known as the ______.
283) Archie wants to buy Claire’s membership share in a cooperative. Assuming he has submitted his application, which of the following statements is true?
284) Which of the following establishes requirements for property appraisals in order to protect home buyers who use a conventional loan?
285) A property is uninhabitable in its current state. What effect will its utility have on the value?
286) Lucille is estimating the property’s loss in value for both curable and incurable items of depreciation. Which method is Lucille using to measure depreciation?
287) If an adjustment is needed for sales or financing concessions, when should an appraiser make this adjustment?
288) Which part of the cost approach equation is considered the most difficult part to estimate accurately?
289) Where in the Uniform Residential Appraisal Report would you find the number of total rooms, bedrooms, and bathrooms?
290) Property that is free-standing and not attached to real estate is called ______.
291) Which of the following is the presentation of the appraiser’s solution to the appraisal problem for a commercial property?
292) Real estate, plus all of the interests, benefits, and rights included in ownership, is also known as ______.
293) Which approach to finding value would licensed appraiser Christina probably weigh most heavily when appraising a three-unit rental property?
294) What’s the name of a process that estimates future income and then applies a discount rate in order to provide an investment’s present value?
295) You’re touring your new seller clients’ property. While you visually assess the property and measure rooms, what else should you do?
296) Why should a listing agent include a seller net sheet with a comparative market analysis?
297) Which of the following will an appraiser do first when using the sales comparison approach?
298) What type of information might an appraiser find at the local chamber of commerce?
299) Your client has an income-producing property that generates $30,000 per year. The property is valued at $400,000. What is your client’s capitalization rate?
300) Building codes, zoning laws, and environmental legislation can all influence the value of real property. How do appraisers refer to this type of value influencer?
301) When the building value is known, but the land value is unknown, the ______ technique can be used.
302) What’s the name for a capitalization method which converts a single year’s expected income into a market value?
303) A capitalization rate takes an investment’s ability to produce income and converts it into ______.
304) Which factor that influences value addresses the ease with which the property can be conveyed to another?
305) What type of capitalization helps to determine the expected return on investment the property is capable of producing in a single year?
306) The income approach to value relies on _______ when valuing single-family and two- to four-unit properties.
307) What’s an appraisal?
308) Real property rights include the right ______.
309) Which of the following best describes how an appraiser reconciles the adjusted sales prices of the comparable properties to indicate the value of the subject property?
310) Who is responsible for developing the Uniform Standards of Professional Appraisal Practice (USPAP) that licensed appraisers must follow?
311) By comparing the number of houses sold to the number of houses listed for sale in a recent time period, appraisers can determine what trend?
312) An appraiser is working to find the market rent for a 10-unit apartment building. In order to compare the subject property to similar properties, she will ______.
313) Which of the following will an appraiser use to determine potential gross income for an income property appraisal?
314) ____________ is when one party didn’t meet the terms of the contract in the specified time frame and is now being required to do exactly what was agreed to in the contract.
315) What’s the purpose of a home inspection?
316) Rick, a builder, is using two properties as collateral for a loan. This is an example of a (n) ________ loan.
317) An acre is equal to _________.
318) Niko has decided to move somewhere else when his lease ends on April 30. This would be considered termination through _________.
319) Which liens take priority over other liens?
320) Real property ownership has significant tax advantages. Which of the following is an advantage?
321) If licensees are asked to discriminate, what must they do?
322) What is self-dealing?
323) Why was the Civil Rights Act of 1866 monumental among fair housing and anti-discrimination laws?
324) The ________ protects consumers from unwanted email solicitations.
325) Given all of the laws prohibiting discrimination in housing, why does it still occur?
326) How does the income from property taxes benefit the community?
327) Which of the following is a benefit of the MLS from a broker’s standpoint?
328) Jamal is a real estate licensee. What’s his responsibility regarding household lead hazards?
329) What’s the depreciation schedule for a residential income-producing property?
330) Which of these items should real estate professionals help first-time buyers with recent credit issues understand?
331) Switches that are warm to the touch, damagd panels, and lights that dim or flicker when other appliances are in use can be signs of a (n) _________ problem.
332) With local land use, the stress placed on the community’s infrastructure is an example of __________.
333) What protects the buyer before the sale and can reimburse the buyer after the sale if a title issue arises?
334) If Mega Corporation owns real property, chances are it owns it in _________.
335) What instruments are commonly used to secure the purchase of real property?
336) Jimmy always has a face-to-face meeting before he works with any buyer. What might be a good reason for this?
337) What’s a survey?
338) _________ pay earnest money to solidify their commitment to completing a real estate transaction.
339) A defect on a title that can be monetary or physical is called an _______.
340) Sampson is acting as a buyer agent. What duties does he owe the seller in the transaction?
341) When does the sales contract become a legally binding document?
342) What’s a licensee’s responsibility regarding household lead hazards?
343) What’s the purpose of testing with regards to fair housing?
344) Local real estate developments, such as a new subdivision, will likely impact _______ the most.
345) When banks have lots of funds available for lending, what tends to happen to interest rates?
346) If Rina wants to pay off her mortgage early, what might she consider before doing so?
347) Fiona signed an agreement to either buy or not buy Nick’s vacant lot for $310,000 by a specific date. What’s this agreement called?
348) Edgar’s in the process of selling his home as a short sale. What’s a short sale?
349) You represent a buyer of a $1 million property. The seller’s agent, through the seller, offers a 2.5% cooperative agent commission. Who’s your client?
350) If a rectangular building were 40 feet by 20 feet, the area would be _________.
351) ________ may be found in paint in homes built before 1978.
352) Real estate, plus all of the interest, benefits, and rights included in ownership is also known as ________.
353) Which entity ensures that contractors perform their work according to code by inspecting their job sites?
354) How do you decide whom you represent in a transaction?
355) Which mortgage market is comprised of lending institutions that lend directly to the consumer?
356) What happens when a married couple who owns a property as tenants by the entirety divorce?
357) In caveat emptor states, whose responsibility is it to review disclosures, ask questions, and obtain a home inspection?
358) Who is responsible for ordering an appraisal, completing the loan application, ordering a home inspection, and obtaining homeowners insurance before closing?
359) Which type of antitrust violation involves two or more businesses conspiring against another business?
360) What instrument is generally used to convey property?
361) As a security precaution, when posting on social media, what should you do?
362) When a buyer hands over an earnest money check to you as the buyer’s agent, what’s your responsibility?
363) When assigning a contract, the assignor should also check to be sure that language regarding ________ is part of the purchase contract.
364) In full seller disclosure states, whose responsibility is it to notify the seller of the seller’s duty to disclose all known material defects?
365) Ken, Dale, and James are brothers who own more than 100 acres as tenants in common. The relationship between Ken and James disintegrated, and so James initiated a lawsuit. The end result is that the court gave each brother a designated set of acres to own. What was granted by the court?
366) Eva, Stella, and Lynn own a vacation home two blocks from the beach. Sadly, Stella passed away this winter, and so when summer arrives Eva and Lynn will be sharing the home with Stella’s nephew Drew, to whom Stella willed her share of the property. What type of ownership is this?
367) One way to demonstrate reasonable skill and care is by acting within the scope of your duties. When working an open house for one of her listings, Keira meets a young couple. They’re not looking to purchase anything right now, but are trying to get a sense for how much house their money will buy in different areas of town. Keira tells them about a few listings she knows about and the listing prices compared to house size and amenities. They also ask about financing a new home, the best way to save money for a down payment when they have other debt, and how much they should save. She tells them that in order to receive the best terms, they should have about 20% of the sale price saved for a down payment and that other debt will factor into the ability to obtain financing, so they should pay off anything they can. She also tells them that fixed-rate mortgages are better than adjustable-rate mortgages.
368) Was Keira’s discussion with the couple within the scope of her expertise?
369) A friend of Keira’s represents sellers of a two-bedroom bungalow that would be perfect for Keira’s buyer client. She shows the buyer the property, but doesn’t tell them she knows the seller’s agent.
370) Keira has a buyer looking at condos downtown, but she shows him a condo in the same price range slightly farther away from his desired area so he can see the difference in what his money will buy.
371) Which of the following statements about the fiduciary duty of confidentiality is true?
372) Which of the following is an example of the duty of loyalty?
373) Which of the following statements best describes a listing that terminates by performance?
374) Which act prevents the fraudulent sale of property sight unseen through the regulation of land sales across state lines?
375) The statute of frauds states that if a contract transferring ownership of real property is not in writing it is __________.
376) What is the key difference between assignment and novation of a contract?
377) When property changes hands, the deed is recorded. There’s a fee for recording. What is the benefit to the grantee of having the deed recorded?
378) How long after a notice of cessation or completion is filed can a contractor file a mechanics lien?
379) Frank has waited 30 days after notifying a client that the project he finished remains unpaid. The client has not filed a notice of completion or cessation with the county clerk. How long does Frank have left to file a mechanic’s lien?
380) What is the six-month rule for homestead exemptions?
381) Kris made an offer on Lincoln’s townhouse. However, Kris offered no earnest money. If Lincoln accepted her offer, would it be binding?
382) Which type of lien affects real and personal property?
383) What law governs the rules and regulations that tenants and landlords must adhere to in counties with 75,000 residents or more?
384) Which document is used to protect the buyer from title defects after closing?
385) In a typical real estate transaction, who is the seller?
386) A property manager is a ______ agent for the owner, and as such is authorized to perform all of the duties related to the property on the owner’s behalf.
387) Which scam, as described by the FBI, involves an appraiser working secretly with a borrower and providing a fraudulent appraisal report to the lender?
388) Which act encourages fair, truthful, non-deceptive, and evidence-supported claims in advertising?
389) Your assistant, Brady, often answers client questions about offers and negotiation. What do we know about Brady?
390) Sandra enters into a contract to sell her home to Paul. Under the statute of frauds, in order to be legally enforceable, the written contract must name the contracting parties, identify the subject matter of the contract, and ______.
391) A complaint was filed against Regina, a real estate licensee. At the TREC hearing, her license was revoked. How many commission members must have agreed with that decision?
392) Which of the following is true about title to a property?
393) The price for which an owner offers to sell a property is called the ______.
394) Per the TAR Purchase and Sale Agreement, when does the sales contract become a binding agreement?
395) In real estate contracts, which are required: legal descriptions or street addresses?
396) If a licensee is serving as a facilitator, rather than representing a buyer or seller, this must be disclosed to whom?
397) A consumer has just sued TREC for its role as an administering authority of license law. What will the likely outcome be?
398) What’s the maximum the Real Estate Education and Recovery fund will pay out on behalf of a single licensee, regardless of the number of awards or transactions involved?
399) Lacey is preparing an offer for her buyer clients, and it’s time to enter the amount of earnest money they’re going to offer. Which of the following statements is true regarding what earnest money the buyers should offer?
400) Which of these is an example of illegal market allocation?
401) A month-to-month lease agreement is considered to be this type of leasehold estate, in which the total duration is unknown.
402) What may be found in paint in homes built before 1978?
403) A property appraised for $257,000 and the buyer paid $249,000. Which value will a lender use when determining the loan-to-value ratio?
404) Per the EPA, what must be conducted before a project may be approved for development?
405) What’s the purpose of the Interstate Land Sales Full Disclosure Act?
406) As required by the statute of frauds, every deed must have which of the following?
407) Which of the following is an adverse material fact?
408) What must a license applicant demonstrate to minimize the chance of license denial?
409) Errors and omissions insurance covers _______ who are sued by consumers for inadvertent mistakes in a real estate transaction.
410) At its most basic level, which type of antitrust violation is a conspiracy between business competitors to set their prices to buy or sell goods or services at a certain price point?
411) In what type of market might an agent ask the multiple buyers who have submitted offers to submit their highest and best?
412) Which choice correctly identifies the seven protected classes according to the Fair Housing Act?
413) Your clients, the Jamesons, are selling their lakefront property. They receive an offer, and the buyer has included a pre-approval letter. The Jamesons balk, saying, “We want a pre-qualification letter, or we’re not selling.” What do you tell them?
414) Which one of the following statements regarding depreciation schedules is true?
415) Which entity guarantees loans?
416) Based on the duty of reasonable skill and care, if clients ask agents for advice in areas outside of an agent’s scope of expertise, what should agents do?
417) When finding listings, which statement describes the farming approach?
418) Mary, who’s suffering from Alzheimer’s disease, signs a contract to buy Edgar’s home. Before the deal closes, it’s determined that Mary lacks legal capacity to enter into a contract. Which party is permitted to void the contract?
419) Historically, what do property values tend to do over long periods of time?
420) Which type of estate conveys possession and control, but not title?
421) Broker Regina tells her client that a property is zoned as residential, even though she’s pretty sure it’s zoned commercial. This violation is an example of _________.
422) Uh-oh. You failed to present an offer on behalf of your client in a timely manner. As a result, the seller accepted a lower offer from another buyer. For which of the following could your buyer sue you?
423) What’s a covenant between a lessor and lessee?
424) ______ is when the buyer and seller settle all terms of their agreement.
425) What type of real estate market occurs when both supply and demand are low?
426) Once signed, the listing agreement is a legally binding contract between _______.
427) Proposed zoning ordinances must undergo tests to determine their validity. These tests include which of the following?
428) Which type of buyer tends to know little about the homebuying process and has limited funds?
429) In a deed, this person is referred to as “the party of the first part.”
430) When preparing the sales contract, when is it acceptable for a licensee who is not an attorney to offer legal advice to the client?
431) Loans available through the Farm Service Agency have which of the following characteristics?
432) Which type of property manager works mostly with real estate developers and investors?
433) How can a licensee earn commission from a seller who has not listed the property through an agent?
434) The owner-manager relationship is based on the property manager performing particular duties. This would include ______.
435) What would the monthly rate be if annual taxes are $890? Round to the nearest cent.
436) Before closing, who is generally responsible for obtaining an appraisal, completing the loan application, ordering a home inspection, and securing homeowner’s insurance?
437) Co-ownership with inheritance rights is what kind of real property ownership?
438) To what properties does the Tennessee Residential Property Disclosure Act apply?
439) Jorge is a dual agent. He owes his clients all of the following fiduciary duties except ______.
440) The Title and Conveyance paragraph of the TAR Purchase and Sale Agreement stipulates that the seller is conveying the property to the buyer with ________________.
441) An affiliate broker may perform brokerage duties under what circumstances?
442) What is a primary factor a lender reviews when determining if a borrower is a good credit risk?
443) Under which of the following conditions is it unacceptable to disclose confidential information?
444) What type of real estate market occurs when supply is high and demand is low?
445) Brenda, a new licensee, wants to impress her buyer clients, the Changs, who are practically royalty in China, their country of origin. Her responsibility is to _________.
446) Kevin, a real estate licensee, works independently instead of under a sponsoring broker. This means that he is licensed as ________.
447) Your clients, the Samsons, ask you to provide them with an appraisal in order to determine a list price for their property. Since you’re not an appraiser, what should you do?
448) Which of the following is a violation of federal fair housing law?
449) When a higher-quality property is adjacent to a lower-quality property, it can increase the lower-quality property’s value. What economic principle is this?
450) The Emery family, along with 20 other families, purchased a timeshare estate that will enable them to share a condominium in a resort community. A timeshare estate involves a ______ type of ownership.
451) Which of these pieces of legislation work together to prevent discriminatory lending practices?
452) Which of the following scenarios is an example of group boycotting?
453) Caveat emptor means ________.
454) Michael doesn’t have a real estate license, but he helps his friend, Nancy, sell her home. What can Michael legally receive as compensation?
455) Which type of real estate license requires successful completion of a 90-hour course and passing the licensing exam before a license is issued?
456) Brendon is obtaining a loan to buy a home. When reviewing his loan documents, he sees one called a note and one called a mortgage. What is the role of the note?
457) How many approaches to value do appraisers generally use?
458) Mark works at Farm and Country Bank, and has arranged an agricultural loan for Josh, a local organic farmer. Josh didn’t meet the bank’s normal underwriting standards, but Mark made the loan because he was able to arrange for a guarantee from ______.
459) When a developer selling timeshare units receives earnest money deposits or down payments, what is the developer required to do with that money?
460) Which type of events are generally on a title insurance policy’s schedule of exceptions?
461) Annie and George have been saving and are finally ready to purchase their first home for their family (including their two toddlers). They want to make an offer on a sweet little bungalow in a quiet Richmond neighborhood. If the sellers are represented by a real estate licensee, which situation would be a violation of fair housing laws?
462) Who is responsible for testing private wells for water safety?
463) Which of these statements about cooperating with other licensees is true?
464) Who is responsible for testing community wells?
a. +The local health department
465) The ______makes it illegal to send unsolicited commercial solicitations via fax without the recipient’s permission or an established relationship.
466) What is a general lien?
467) Under standard lease provisions, a demising clause would contain ______.
468) A requirement for legal competence
469) Which of the following statements describes laws and ethics?
470) How many hours of continuing education must first-year salespersons take?
471) Activities that restrain trade and reduce competition and choices for consumers are considered to be what kind of violations?
472) When prospecting and soliciting for new business, licensees should be familiar with what federal acts?
473) Real property ownership may have significant tax advantages. Which of the following is a potential advantage?
474) Your neighbor Mort wants to buy an investment property but he’s a busy man and asks you to act as his attorney in fact as well as his buyer’s agent. What should you tell Mort?
475) What’s an MLS?
476) Carson is purchasing a $600,000 property by obtaining an 80/20 loan. How much is Carson financing?
477) Why does HUD test for housing discrimination?
478) Which of the following options describes a method by which a licensee can determine an appropriate listing price range?
479) The secondary market is comprised of _________________________.
480) Which of these is NOT a form of ownership for real estate?
481) What is the purpose of the Common Interest Communities Law?
482) What are two types of evictions?
483) Federal and state fair housing laws are designed to _______:
484) If you’re in a caveat emptor state, which statement about property condition disclosures is true?
485) In caveat emptor states, while sellers can’t lie outright or actively conceal a problem—and must honestly answer prospective buyers’ questions when asked—they aren’t obligated to point out the home’s flaws or defects to buyers.
486) What can a wet environment with little air circulation do?
487) When does the purchase agreement become a legally binding contract?
488) Joe and Emma Parsons begin informally working with their neighbor Kyle, who’s a real estate licensee, to find a bigger house. The parties have not signed any agreements or discussed the arrangements. This is an example of a(n) ______ agency agreement.
489) A broker’s price opinion is generally written by whom?
490) Licensee Kyle has had a few casual meetings with a potential client, Mary. Mary told Kyle the type of home and area she’s interested in, and Kyle mentioned a few homes he thinks Mary might be interested in. Although Kyle hasn’t said he will continue to look for homes for Mary, Mary believes he’ll do just that. Which of the following statements about this situation is correct?
491) Which document spells out for buyers all settlement costs in a federally related residential real estate transaction?
492) Google and “if this, then that” alerts can assist you with which of the following?
493) The number of properties available describes this factor that influences value.
494) Which of these items should real estate professionals help first-time buyers and buyers who have experienced recent credit issues to understand?
495) Jill needs to pay the web developer who created a new website for her brokerage, but her checking account is low, so she floats herself a loan from earnest money kept in the brokerage’s escrow account and deposits it in her account for a few days before paying the developer. Which answer correctly identifies the violation(s) Jill has committed?
496) Which of these situations would result in the earnest money being disbursed to the seller?
497) Your client, Bruno, is an investor. He is in the process of selling a fourplex and mentions to you that he hates the idea of the capital gains tax he’ll be subject to. What should you tell him?
498) Mary is preparing a purchase offer for her buyer client. It’s a pretty standard offer: a little less than list price, with the seller paying a little toward the buyer’s closing costs. Mary fills in the blanks on a standard form used in her brokerage firm based on the current situation. Is this okay?
499) Cracks, holes, or rotten areas on a soffit are common ______ issues.
500) A licensee says, “This is a dream home with the best views in town.” This is an example of _______.
501) Plat of Block 28, Woodmen Heights Tract, recorded in Map Book 27, page 68, at the Eldor County Records Office is an example of which essential element of a deed?
502) Which of the following best describes the fiduciary duty of confidentiality?
503) ______ is a process in which an appraiser determines a probable range of values for a property by comparing a group of comparable sales to the subject. The appraiser attempts to include both superior and inferior units of comparison, such as age, transaction price, etc.
504) Cultivated crops are considered personal property even though they’re part of the soil, and they’re known as _______.
505) Which statement best describes a trade fixture?
506) A landlord discovers that his married tenants are expecting their first child. He wouldn’t have rented to the couple had he known they were going to have children, so he serves them with an eviction notice and tells them they must be out in 30 days. The landlord is guilty of ______.
507) What types of monies received from income-producing properties should be deposited into an escrow account?
508) Which option best describes a delivery and acceptance of a deed as required?
509) What’s the purpose of a POA’s restrictive covenants?
510) What is the term used to describe submerged land below the mean water mark?
511) In which of these situations does the disclosure for unrepresented parties need to be provided?
512) An organization with many investors who jointly participate in a real estate investment and must adhere to the rules and regulations of the Securities and Exchange Commission is a ______.
513) Which term describes the process of real property becoming personal property by detaching it from the land?
514) What’s the purpose of testing with regard to fair housing?
515) 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. How many payments will he make over the course of the loan?
516) All of the homes on Elm Street are currently on septic systems. However, the county plans to extend the sewer lines to Elm Street within the next two years. What’s the biggest reason why it’s important for your buyers to know this?
517) Which statement about lead-related health problems is true?
518) John’s property is shaped like a triangle. The street side is 185 feet, and from the street to the longest point of the triangle is 225 feet. How do you calculate the square footage of John’s property?
519) Using the capitalization formula, what is the value if the net operating income is $20,000 and the rate of capitalization is 10%?
520) A fire destroyed Meredith’s house. Meredith contacted her insurance company, and she was shocked to learn her insurance policy didn’t fully cover what she paid for the property. How does the insurance company determine the replacement value of her home?
521) A quitclaim deed does which of these?
522) In many cases, property managers must get explicit permission in order to disburse funds from a trust account. What is one common way to do so without this explicit permission?
523) Johannes must obtain a permit for a construction project that is located right next to a wetlands. Which federal law or regulation requires him to get the permit?
524) When a licensee is working with a property located near a Superfund site, what does that mean?
525) Which of these situations represents the illegal practice of redlining?
526) Jeanetta leases an apartment from Quad City Leasing. Jeanetta has filed a complaint with the state real estate licensing division stating that Marissa, Quad City’s property manager, breached her fiduciary duty of loyalty to Jeanetta. Which of these statements about this situation is true?
527) Property managers owe fiduciary duties to their clients (the landlord) and the community as a whole, not to individual residents.
528) In which of these situations would the property most likely be conveyed with a trustee’s deed?
529) states that use a deed of trust as security for a mortgage, the trustee conveys foreclosed property with a trustee’s deed.
530) Luci’s client Kaden wants to purchase a new construction property, and he wants to get as much house as he can afford. Which of the following does Luci need to advise Kaden about regarding interest rates when purchasing a newly built home?
531) Jerrica is set to close on the property she’s buying on Friday. Because of other delays in the closing date, Jerrica’s interest rate as of the day of closing will increase by 1/4 of a percent. What impact does this have on the closing?
532) Mike’s been friends with Tim since college. They often work together: Mike flips houses and Tim’s an appraiser that he uses frequently. It works out great for both friends and Mike definitely gets a better appraised value on the flips Tim handles. For every appraisal Tim handles for him, Mike gives him a $100 gift card. In what illegal practice does it sound like they’re engaging?
533) For conventional loans in which the loan-to-value ratio is in excess of of a certain percentage, lenders generally require private mortgage insurance. What’s this percentage?
534) Loans above 80% don’t conform to Fannie Mae/Freddie Mac guidelines, so a lender may require PMI to offset the risk.
535) Corinne is 68 years old and employed full time. She’s of Spanish descent, is raising her 12-year-old grandson, and lives with her partner, Katherine. She requires an accessible apartment because she uses a wheelchair. Under which of the following federally protected classes might Corinne be protected if she faces housing discrimination?
536) Federal fair housing laws don’t name age, employment status, or sexual identity as protected classes. Corinne would be protected if she experienced housing discrimination based on her national origin, sex, disability, or familial status.
537) Savvy’s buyer client made an offer on a property but is having second thoughts. Savvy tells her client that she’ll ask the seller’s agent for an extension on the inspection period “to gather more bids,” and use that time to look at other properties to avoid losing out on the current property. Savvy’s client found a property she liked better, so they made an offer. The offer was accepted, so Savvy contacted the first property’s agent to terminate that offer. Is this wrong?
538) In pricing a property, what might expired listings tell the real estate professional?
539) How are principal meridians and baselines used in the rectangular government survey system?
540) A buyer is purchasing a property for $400,000. His loan-to-value ratio is 80%. The lender also charges a 1% loan origination fee. How much is the loan origination fee?
541) An 80% LTVR means the buyer is financing 80% of the purchase price. This equates to $320,000, and 1% of this amount is $3,200.
542) Margo’s accountant tells her that she’s eligible to deduct the property taxes she paid last year. Select the statement about this deduction that’s true.
543) Katherine is purchasing a second home as an investment/vacation property. She has a large down payment, and the seller is financing the rest of the purchase. Which of these statements is true?
544) In a seller-financed transaction, the Closing Disclosure and Loan Estimate aren’t required. Some other form of statement may be prepared to show the buyer and the seller their respective closing figures.
545) The purchase price of the home Leroy is buying is $300,000. He’s putting $100,000 down and is paying three discount points. How much will this cost?
546) What title guarantees will Jody have if her property is deeded to her after a foreclosure?
547) Which of these statements about statutory duties and fiduciary duties is true?
548) The two real estate firms in one small town, Vineyard Realty and Homestead Homes, agree to charge the same commission rate to avoid the possibility of clients selecting a firm based simply on price. What specific federal legislation prohibits this?
549) Which of these examples describes a prepayment penalty?
550) An abandoned or otherwise unused commercial or industrial site with suspected contaminants is known as what?
551) year! Kim is taking a leave of absence from her job to accompany Marta. They don’t want their home in a gated community to sit empty, so they’d like to rent it out for the year. What might prohibit them from doing so?
552) County or state laws likely wouldn’t address homeowners’ ability to lease an owned piece of property, but HOA regulations might.
553) What’s the primary difference between an ordinary and a pur autre vie life estate?
554) 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?
555) Jerry and Simon signed a contract so that Jerry could purchase all of Simon’s restaurant equipment for one 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?
556) Dave’s company just did some renovation work on a free-standing hobby store in order to ensure that it’s ADA compliant. As Dave is doing the final walk-through, he notes that the aisles are now wider, the restrooms each have an accessible stall, and the water fountain near the restrooms is lower and has more clearance. But he notices that one critical renovation hasn’t been made. Which of these is key for ADA compliance?
557) Pay phones aren’t required, nor are accessible cash registers. But ramps for wheelchair access to the store are key!
558) How many acres are in a parcel described as, “The E 1/2 SE 1/4 NE 1/4 Section 3, Township 4 North, Range 2 East of the 6th PM”?
559) If the private individual owner doesn’t own more than three single-family homes at one time, which exemption from the Fair Housing Act could apply?
560) Celia was obtaining a conventional loan, and she put $50,000 down as a down payment. Why might her lender also require her to obtain private mortgage insurance?
561) Roland’s farm land is assessed at 1.5 million dollars and the improvements for $500,000. At a tax rate of 4 mills, how much are Rolan’s monthly taxes?
562) Which of these areas would be included in the livable area calculation?
563) In a residential real estate sale involving a federally related loan, what entity is required to provide Real Estate Settlement Procedures Act disclosures to the consumer?
564) Shalonda is looking to purchase a home for $325,000 using a conventional loan. She has $49,000 to place as a down payment on the house. Which of the following statements is true?
565) Seller Jamison is closing on his property with buyer Conrad. Jamison paid the current year’s property taxes already. Is this a prepaid or accrued expense, and how will it be represented on the settlement statement?
566) These taxes have already been paid, so they are a prepaid item. They’ll appear as a buyer debit and seller credit at closing.
567) If there’s no state or local building code to cover a specific situation, what code must the builder abide by?
568) A closing agent has several duties to perform both before and after the closing. Which of the following is a task the closing agent must complete after the closing?
569) A brokerage firm that hires licensees as employees instead of as independent contractors must ______.
570) Stu is buying Freddie’s property. What must occur for the transfer of title to take place?
571) What’s the penalty for violating federal do not call rules?
572) Which of the following is an example of commingling?
573) 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?
574) Christine listed her house with you. Tailleur represents the buyer, Rebecca, and the seller’s mother, Freida, is paying your commission. Which of these factors determines how legal agency is determined in this situation?
575) LaTonya’s aunt left her a bungalow on the outskirts of the city. For many years, it was the place for family holiday gatherings, and LaTonya’s sister was even married there. That’s why her family is so upset to learn that she plans to sell the bungalow as soon as she gets it cleaned out. Which real property right allows her to sell the property?
576) The right of disposition includes the right to determine how, when, and if the property is to be sold or transferred to another owner.
577) Which of the following would be a description used for real property and a fixture?
578) Your client Faye is buying a condo downtown for $565,000 and financing 60% of the purchase. Her lender is charging a one-point loan origination fee and two discount points. Can you help Faye calculate the dollar amount for points she’s going to pay on her loan?
579) Jansen and his listing agent just left the closing on Jansen’s house. What kind of notice does Jansen, his agent, the buyer, and the buyer’s agent have regarding the sale of Jansen’s house?
580) 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?
581) Why are lenders required to provide the Loan Estimate and Closing Disclosure forms to loan applicants and borrowers?
582) While walking around the exterior of a rural home she’s inspecting, Juanita noticed a metal vent pipe sticking out of the ground 25 feet from the house. She documents this because it may be a sign of what potential environmental hazard?
583) What factors directly affect an adjustable rate mortgage?
584) Sondra thinks the new business contract she signed with her business partner is valid. Both parties are legally competent, the contract has a legal purpose, an offer was made and accepted, and a fee has been negotiated and documented. Which essential element of a valid contract has Sondra not yet considered?
585) The only element Sondra hasn’t considered is whether the consent to enter into the contract was voluntarily given. Only real estate contracts have to be in writing, and parties are legally competent to enter into contracts from the age of 18.
586) 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?
587) Shira bought a condominium in a planned unit development. The development has a small playground, tennis and basketball courts, and a putting green. Who owns these recreational facilities?
588) Joe gave land to a school, but still wanted to have some control over its use, so a deed was prepared that gave the school title as long as the land is used for educational purposes. What type of interest does the school have?
589) Ashton, an appraiser, is estimating value using the sales comparison approach. He applies more weight to two comparables over several others he used. What process is he utilizing?
590) Through a correlation process, the most weight may be given to one or two comparables, or equal weight may be given to all. The term reconciliation is often synonymous with correlation.
591) Casey signed a contract form offering a purchase price of $309,000 on a home, and gave his agent a $5,000 earnest money deposit. The owner is out of town and her agent can’t reach her. At this point what does Casey have?
592) Sandra is purchasing a home for $200,000 and provides a $3,000 earnest money check to the seller. Her closing costs and down payment total $7,000. Assuming that Sandra is financing the purchase, how much should she bring to the closing?
593) Sandra brings to closing the total amount of her down payment and closing costs ($7,000), less the earnest money provided when the contract was signed ($3,000), or $4,000.
594) Alexandra sells her house to Clark for $178,000. They negotiate to split the transfer tax, which has a rate of $0.33 per $100. What do they each pay to cover the transfer tax?
595) Joan is representing the buyer, Carlton, and Reggie is representing the sellers, Zeb and Teresa Martin. Carlton’s Great Aunt Matilda has agreed to pay any portion of Joan’s commission the sellers don’t cover. Teresa’s father, Teddy, has agreed to pay half of the sales commission that will be owed to the listing agent. Which of these statements is true?
596) What’s a typical prepaid item that will go into a seller’s credit column and a buyer’s debit column on a closing statement?
597) Related to the legal test of a fixture, in the acronym MARIA, what do the two As stand for?
598) Which of these is NOT one of the ways in which an agency relationship may be terminated without penalty for either the agent or the principal?
599) Which statement best describes an adjustable rate mortgage?
600) 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?
601) Which task is NOT the responsibility of an escrow officer?
602) Which of these is NOT a likely features of a bridge loan?
603) Following all of the client’s lawful instructions describes which fiduciary duty?
604) Georgina is an escrow agent who’s holding funds for several transactions. Which of these statements about how she’ll disburse these funds is true?
605) A prospective buyer is curious why a previous owner is selling such a perfect home. The licensee knows that the previous owner recently died due to complications from AIDS. How should the licensee respond to the prospective buyer’s inquiry?
606) Broker Sam has extended an offer to licensee Jane, who has accepted the offer. Jane will work as an independent contractor for Sam. Based on this, which of the following statements is true?
607) You’re showing your buyers a house that clearly has a second-story addition. What important thing do you need to find out from the sellers?
608) Shemar owns a starter 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?
609) Gus has applied for a home equity line of credit from his federally insured bank so that he can make some renovations to his kitchen. The same bank is his lender for his home mortgage. Will this loan be subject to Real Estate Settlement Procedures Act requirements?
610) Chip is a residential and commercial agent. His friend asks him to list his cattle ranch for sale, but Chip’s never listed an agricultural property before. How should Chip handle this listing so he can still work for his friend but also not work outside his area of expertise?
611) Chip could turn down the listing or refer the listing to a more experienced agent. If he wants to work the listing for his friend, he should disclose his lack of experience to the client and ask permission to partner with an ag expert at his firm.
612) Tiers in the rectangular government survey system are formed by ______.
613) SARA is an amendment to which environmental act?
614) Rhonda purchased an existing pet store in her neighborhood, and she’s so excited! Her animal-loving aunt is thrilled for Rhonda but disappointed that she won’t be able to visit the store in her wheelchair, as the aisles are narrow and there isn’t enough room to move around. What is true about Rhonda’s responsibilities to her aunt and other people with disabilities?
615) Related to reasonable accommodation of being allowed to have an assistance animal, which statement is true?
616) 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?
617) Subtract the closing costs from cashier’s check amount ($34,450 – $7,950=$26,500) for half of down payment. The total DP was double this ($53,000). Next, divide $53,000 by 20% (to find purchase price ($53,000 ÷ .2=$265,000). Purchase price is $265,000.
618) What’s the estimated value by cost approach for a property if the site value is $25,000, the new cost of improvements is $100,000, and the total depreciation estimate is $15,000?
619) An appraiser used the cost approach to estimate a property’s value at $220,000. The site value was $50,000, and the total depreciation estimate was $4,000. What was the estimated cost of improvements?
620) Dean’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. Dean most likely has a _______ lease for the office space.
621) The best way to start comparative market analysis data collection is to use properties that sold when?
622) Why is proof of ownership required when transferring real property?
623) Tom and Martha live in a neighborhood where lawn ornaments are prohibited. They want to put up a nativity scene at Christmas and argue that the covenant doesn’t apply to temporary decorations but only to permanent ones. Their homeowners association disagrees. Which entity enforces subdivision covenants?
624) At what point must a listing agent disclose material facts to all parties involved in the transaction?
625) Which of these situations might be addressed by limitations or a subject to clause in the deed Jane is using to convey property to Moira?
626) Most often, what’s the first course of action for disputed home warranty claims?
627) Gabe’s home has an assessed value of $172,000, and his tax rate is .55%. What are the annual taxes?
628) First you have to convert the percentage to a decimal. .55% = .0055, so multiply the assessed value by the tax rate to calculate annual taxes: $172,000 × .0055% = $946.
629) Which of the following is an acceptable ad based on Regulation Z?
630) Citytown officials know that they have an abandoned factory site that has been identified for cleanup under CERCLA. When city officials tried to trace the ownership of the property, they found several shell corporations but can’t determine which individual or corporate entity actually owns the property. What is a likely outcome of this situation?
631) 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 ________.
632) Since the parcel isn’t currently zoned, zoning should be established in alignment with an area’s comprehensive plan.
633) Belinda is a licensee whose client asked her to draft an addendum containing complicated terms that even Belinda doesn’t fully understand. Belinda should ______.
634) Which act sets guidelines for public and common use areas at housing developments?
635) Sebastien’s four-story home includes a 400-square-foot unfinished bonus room on the top floor, an upper level with 850 square feet, a main level with 1,450 square feet (which includes a garage that’s 500 square feet), and a finished basement that’s 900 square feet. The MLS system in Sebastien’s area includes below-grade square footage. What square footage will be reported on his MLS listing?
636) Sebastien should exclude the unfinished bonus room and the garage and add the remaining area (850 + (1,450 – 500) + 900).
637) Your buyer, Billy, wants to make an offer on the craftsman house he saw today, but he wants the sellers to start the paperwork for a tax reassessment before closing. This isn’t part of the standard sales contract in your area. What will you use to accomplish this request?
638) Joaquin sold his house for $327,600. He bought it several years ago for $139,900 with a $100,000 loan. The loan balance when he sold it was $73,400. What was Joaquin’s equity?
639) Kelly is closing on the house she’s purchasing on Wednesday. Which of these statements is true?
640) Gerald practices real estate in a state that recognizes sub-agency. Which of the following statements is true of Gerald’s authority to appoint a sub-agent?
641) Any delegation of a licensee’s agency-related tasks must be made in writing, and must be approved by the principal.
642) 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”?
643) If a community isn’t growing in an orderly fashion, which local land use group is likely at fault?
644) Tracy is looking in the MLS and sees a listing marked “REO.” Which of these statements regarding REOs is correct?
645) Failed foreclosure sales and deed in lieu of foreclosure actions result in lenders taking title to properties they previously had mortgage loans on. These properties are called real estate owned, or REOs.
646) Melisa’s mother gave her house to Melisa, along with a signed copy of the deed granting ownership to Melisa. Years later, Melisa decides to downsize by selling the property. The title company shows that the property is still in Melisa’s mother’s name. What does Melisa have to do to clear this up?
647) What’s a good policy that a buyer’s agent should employ regarding contingencies?
648) Alice owned a double lot on the waterfront. She sold the lot to Ronesha and included a deed restriction prohibiting construction of any building taller than one story. Ronesha wants a three-story house. What should she do?
649) What type of arrangement allows the buyer to retain title to the property, but places a security interest in the property on behalf of the seller?
650) Tristan’s offer has been signed by all parties and delivered back to the seller. This means that ______ has occurred.
a. +Binding acceptance
651) Compared to conventional loans, what are typical characteristics of construction loans?
652) An __ contract or agreement is one that exists based not on words, but on the parties’ actions or behaviors.
653) __ consist of agreements in which the terms are stated by the parties. The terms may be stated orally or in writing. But the contract as a whole must reflect the intention of the parties.
654) The Equal Credit Opportunity Act is designed to prevent discrimination in ______.
655) __ asks the court to force the opposing party into a contract that binds them to actually perform the contract at issue, rather than award damages for breach of contract. In real estate litigation, a buyer can force a reluctant seller to live up to the purchase and sale agreement.
656) __ are typically voluntary liens. Voluntary liens are placed on the subject property with the consent of the owner. This is usually done through the loan documents (mortgage and promissory note).
657) When a loan is recasted, what does it essentially become?
658) Which of the following may be used to defer paying taxes when there is an almost immediate repurchase of what’s called a “like-kind” property?
659) What is a clear zone?
660) When it comes to advertising in real estate, a __ is an established zone created to prevent safety hazards and unsightly advertising.
661) ______ is a leasehold estate of definite duration that terminates automatically and is inheritable.
662) Sandra enters a contract to sell her home to Paul. Under the statute of frauds, the written contract must name the contracting parties, identify the subject matter of the contract, and ______.
663) What is a capital gain?
664) For an investor, purchase price plus closing expenses is known as ___________________.
665) Your client, Lee, a foreign investor, is selling his property and learns a 15% withholding of the sales price will be imposed. Why is this?
666) The requirement is two of the last five years, and the exclusion is up to $250,000 for single taxpayers and __ for couples filing jointly.
667) The __ is a person who applies for a mortgage and makes a home purchase on behalf of another. The actual buyer may be someone with bad credit who is unable to qualify for a mortgage themselves, or a scam artist looking to profit by manipulating the mortgage and real estate transaction process.
668) A __ typically has no right of survivorship. This means that if A and B are tenants in common of Blackacre, and A dies, A’s share does not to go B. Rather, A’s share goes to the party selected in A’s will.
669) Kevin, your buyer client, signed a contract to buy Lydia’s home. The contract states that “time is of the essence.” You correctly advise Kevin that this means ______.
670) Ensuring land is put to the use for which it is best suited while also protecting livability of a community and property values is achieved through ______.
671) The local planning and zoning commission is reviewing multiple applications at this week’s meeting. Which of the following new developments is likely to be reviewed relative to a mixed-use zoning ordinance?
672) A __ lease is usually for a large open space that may have few amenities.
673) A __ is the “embryo stage” of a land purchasing process that analyzes and determines if the property is practical for the planned use of the land. This task can also include reviewing all aspects of the property from both a financial and environmental perspective as well.
674) A __ is a legal proceeding that asks the court to remove any claims, or “clouds,” against the title so that it can be conveyed.
675) Terry has a costume shop in a commercial building. He has a one-year lease that automatically renews for another year unless either Terry or the landlord terminates. What type of leasehold estate is this?
676) __ does impact property values and may be perceived as infringing on personal rights; therefore, public opinion is sought before zoning changes are made.
677) In an amortized mortgage, the monthly payment is the same each month. While the portion used to pay interest decreases over time, the portion used to repay principal ______________.
678) Edgar is in the process of selling his home in a short sale. What’s a short sale?
679) ______ is allowed to perform appraisals on any type of real estate.
680) Frank took out a mortgage from First National Bank in order to purchase a new home. In a lien theory state, who or what retains the title to the property?
681) Which type of property management situation requires a license?
682) According to the Telephone Consumer Protection Act guidelines, who or which entity may call a person listed on the Do Not Call Registry?
683) With an interest-only payment plan, ______.
684) Which term involving trespassing is used when someone other than the owner claims title to real property?
685) Which of the following is true about pocket listings?
686) What type of contract is one in which the terms of the agreement and consideration to be exchanged are defined in words, whether verbally or in writing?
687) A landlord locks a tenant out and requires the tenant to pay past-due rent before regaining access to the unit. This is considered ______.
688) Which activity requires a license?
689) In addition to residential and commercial real estate sales, King County Realty has an active residential property management department. The firm rarely holds earnest money on sales transactions, so it has a single trust account for earnest money and security deposits. The firm ______.
690) How do you decide which party you represent in a transaction?
691) What is a margin, as it relates to an adjustable rate mortgage?
692) Your client, Brian, is an investor who likes to put as little cash down on his investments as possible. Brian believes in the power of ______.
693) In order to be enforceable, what does the statute of frauds require a real estate contract to be?
694) What is usury?
695) Stanley is having second thoughts about taking his neighbor to court over a written agreement they have concerning who pays the rent on a storage unit that they share, because it’s used to store stolen merchandise. Stanley doesn’t think the contract will stand up in court. What type of contract does Stanley have?
696) What brokerage activities can Austin perform if his license is inactive?
697) Seller Darlene wants to know when she’ll be paid the full amount of the purchase price for her property. What should you say?
698) Three friends entered into a contract to buy a vacation property. The friends got into a dispute, resulting in one of them wanting out of the deal. The remaining two friends didn’t want to lose the deal, but couldn’t afford it on their own. They talked a fourth friend into replacing the person who backed out of the contract. The seller agreed to the substitution, and they moved forward with the purchase. What does this describe?
699) Cheryl wants new carpeting for her rectangular living room. Her living room is 18 feet by 12 feet. How much carpeting does she need?
700) What’s alienation with regard to real estate?
701) One regulatory requirement says that a broker has a specified amount of time to provide copies of transaction documents to a managing or designated broker. How long is this window of time?
702) Carlos, a property manager at Your Best Bet Property Management Company, manages multiple properties for their owners. Which of the following statements is true?
703) When you refuse to screen prospective buyers based on their ethnicity, your client, Matt, “fires” you as his agent, and you agree to his decision to part ways. Do you still owe this guy any fiduciary duties?
704) Liz listed her property with an agreement end date of May 31. The property went under contract on May 12, and the buyer’s earnest money was deposited on May 13. Based on the home inspection results, the buyer legally terminated the contract on May 20. When did the listing agreement between Liz and the listing broker officially terminate?
705) Curtis is having second thoughts about taking his partner to court over a written agreement they have concerning the purchase of a rental property. Curtis doesn’t think the contract will stand up in court because the partner is only 17 years old. What type of contract does Curtis have?
706) The appraiser applies a capitalization rate to an income comparison of similar properties with which of the four methods used to measure depreciation?
707) Janice’s life tenant, Jacob, is currently living on her property. Once Jacob dies, Janice has arranged for the property to be given to the School for the Gifted. What interest does the School for the Gifted currently have?
708) James creates a trust to hold a piece of real estate he owns. He directs a corporate fiduciary to hold title to the real estate and provides instructions for the management, control, and disposition of the real estate upon his death. Given that the trust only holds real estate, James likely set up a(n) ______ trust.
709) Which entity is responsible for deciding the general layout of a specific municipality —a city, town, or village—and mapping the zones and the uses allowed within each zone?
710) What’s the purpose of a brief adjudicative hearing?
711) What is the purpose of an operating budget?
712) Janie’s got an open house scheduled for Sunday, but lets her friend in on Saturday to preview it. It’s love at first sight! With the owner out of town, Janie decides to cancel the open house so there won’t be any other offers. Her friend makes an offer and it’s accepted on Monday. What fiduciary duty or duties has Janie breached?
713) During the closing, whose job is it to deliver the title commitment after ensuring the title is marketable and without defect?
714) Isabella is thinking about buying a one-bedroom residence in a cooperative. A residence in a cooperative, unlike a condominium, is considered ______.
715) What is the term for paying off a loan over time?
716) Maria’s neighbor is building a shed in his backyard that appears to be about a foot over the property line into her yard. What term describes the placement of the shed on Maria’s property?
717) The Jeffersons would like to sell their home. However, they had their home painted last year and never paid the contractor. The contractor has placed what type of lien on the home?
718) Which of these is an example of a lot and block description?
719) Which term refers to the division of community land into designated districts on a map that includes a text description defining the uses permitted under each classification?
720) What’s a vendee’s lien?
721) The Consumer Financial Protection Bureau ______.
722) The government’s power to take private land for public use is called ______.
723) A tenant is entering into a 12-month agreement with an owner of an upscale apartment complex to rent an apartment. What type of contract will be used to identify the rental arrangement’s terms?
724) Dual agent Barbara Park can only disclose Seller Carrie’s reason for moving if:
725) Which term is used when someone claims someone else’s property by using it for an extended period of time?
726) Which of the following is a residential dwelling with shared walls where the owner also typically owns the land on which the home sits?
727) The ______ provides administration and enforcement of federal fair housing laws.
728) You’ve signed a listing agreement with a client. Which of the following activities will you address next in order to complete the sales process for your listing?
729) Which liens take priority over all other liens?
730) What form should be provided to borrowers no fewer than three days prior to closing?
731) Which of the following statements about agents and the duty of obedience is true?
732) What does REO stand for?
733) What does the rectangular government survey system use as the basis for legal descriptions?
734) Randi is a licensee who would like to update her advertising. What must she be sure to include on any advertising listed with her or any other brokerage?
735) Seller Randy signed a listing agreement with Barbara, who worked very hard to find him a buyer. Randy’s cousin decided to purchase the house during the listing period. Is Barbara owed a commission?
736) Mario doesn’t want to include a religious preference in his listing ad, so which of the following phrases should he use?
737) Homeowners can take several actions related to pest infestations, but which of the following actions should be left to licensed pest management professionals?
738) Which of these transactions would require the Missouri licensee to provide written disclosure of his or her interest?
739) Which of the following is true about an attorney’s opinion of title?
740) What’s designed to protect buyers from financial loss if the title to the property they buy has defects?
741) When considering buying property subject to an existing lease, it’s critical to understand the lease terms, including the lease duration, rent amount, renewal/purchase options, and the __________________.
742) Which of these may be covered by a builder-backed home warranty?
743) Jasper has a new listing, and he appoints Esther as his sub-agent. Esther brings Julie, a buyer customer, to the transaction, and Julie buys Jasper’s listing. What’s true about the agency relationships in this situation?
744) Heath leases space in a commercial building for his sporting goods store, and the building owner insisted on having Heath sign a percentage lease. Under the terms of a percentage lease, Heath must pay ________.
745) With which type of government power can a lien be placed on a property, giving the government a claim to the property?
746) The Johnsons are shopping for a mortgage loan and are attracted to the below-market interest rate offered for the first year of an adjustable rate mortgage. What’s this type of rate called?
747) At a business meeting among heads of the top brokerages in town, the keynote speaker discussed a minimum listing fee. What’s this is an example of?
748) The tax associated with property taxes is relatively stable and a high revenue generator because ______.
749) A fee a lender charges for processing a loan is called _______.
750) The Knolls are purchasing a property and are concerned about the title. They want to have a title search performed. Who can perform a title search?
751) What type of emails are prohibited by the CAN-SPAM Act?
752) Clara signs a net lease for office space. Under a net lease, she’ll be responsible for ________.
753) Charles is selling his home to Sheila. Charles has an existing loan that he will continue to make payments on. Charles is also extending credit to Sheila for the balance of the purchase price. Sheila will make monthly payments to Charles. What type of financing is used in this transaction?
754) Which of the following equals one furlong?
755) Which of the following is considered an act of discrimination under federal fair housing laws?
756) Compared to working without a buyer agency agreement, a buyer who works under a buyer agency ?
757) Switches that are warm to the touch, damaged panels, and lights that dim or flicker when other appliances are in use can be signs of a(n) ______ problem.
758) What is the purpose of the Consent for Dual Agency form?
759) What types of leases must be recorded?
760) Which of these is an example of a rectangular survey system description?
761) Jorge is a dual agent in a single-license dual agency situation. He owes his clients all of the following fiduciary duties EXCEPT ___________.
762) Shelly buys Mark’s house, which is still in an option period with Monique. Monique decides to exercise her option after Shelly moves in. What will happen?
763) Your client exchanged one property for a similar property and did not have to pay capital gains taxes that year. How did he do this?
764) Soundproofing and decorative material, shingles, and siding may contain what hazardous material?
765) Jay’s new loan to purchase a property includes the seller’s existing mortgage. This type of loan is called a ______ loan.
766) What is one drawback of a real property transfer?
767) When assigning a contract, the assignor should ensure that ______ is not prohibited in the purchase contract.
768) You’re trying to impress your neighbors, who are considering selling their house. You’d like to get the listing. They ask you about a listing your firm has that’s been on the market forever. Why isn’t it selling, they want to know? You answer:
769) Which of the following occurs when a property owner dies without having a will in place, and no heirs or creditors can be found?
770) To effect a transfer of title by deed, _________________ must occur.
771) When operating under a power of attorney concerning the transfer of real property, who may sign in place of the principal?
772) Carla Ricardo asks the landlord if she could be let her out of her lease early. The landlord agrees to let her out of her lease, no strings attached. Carla and her landlord have decided to terminate the contract through _________________.
773) Single agency is _______.
774) Which of the following closing activities occurs on the day of closing?
775) In relation to appraisals, what’s a “federally related transaction”?
776) First-time homebuyers can access up to $________ of their Roth IRA accounts, penalty-free, under certain conditions.
777) Which of the following is the best definition of a covenant between a lessor and lessee?
778) Which of the following is a material fact that must be disclosed to prospective buyers?
779) The National Fair Housing Alliance believes in promoting the message that __________ neighborhoods are stronger neighborhoods.
780) Which of the following can indicate drainage problems?
781) Which of the following are landlords required by law to ensure?
782) A deed must be ______________ before it can be recorded.
783) What type of agency exists because a written or oral agreement is in place?
784) Which act introduced the “innocent landowner” defense that states that a landowner isn’t responsible for clean-up of contamination that occurred prior to their ownership, provided they have not tried to cover up the contamination and can prove due diligence in investigating the property when it was purchased?
785) Which of the following terms best describes real property?
786) In the sales comparison approach, the appropriateness of the various comparable sales in relationship to the subject is considered in a process known as ______, where certain factors may be given more weight.
787) What is the definition of a testator?
788) You are meeting with prospective clients in person for the first time. What are you required by law to explain to them?
789) Which of the following is true?
790) What type of tenancy can be automatically created if a tenant under a lease stays beyond the lease’s terms, and the landlord continues to accept rent from that tenant?
791) What might the financial implications be if a buyer needed to use individual retirement account funds toward a down payment?
792) Kip is a sub-agent working with a buyer customer, Charlie, for Sheila’s listing of May’s property. To whom does Kip owe his loyalty?
793) When a lower-quality property is adjacent to a higher-quality property, it can diminish the value of the higher-quality property. What economic principle is this?
794) At what point in a residential transaction must a seller’s agent deliver a completed Residential Real Property Disclosure Report to a buyer?
795) Which portion of a mortgage payment is the financial institution’s charge for the use of its money?
796) What’s it called when a person who has possession of a property through a life estate abuses the property or allows it to deteriorate?
797) Which ownership type involves one person owning the property?
798) Which of the following is designed to protect buyers from financial loss if the title to the property they buy has defects?
799) When people are treated differently because they were born in another country or are from a specific part of the world, this is discrimination based on _______.
800) You’re obligated to preserve all the confidential information you receive from a seller client. This obligation ______.
801) REEB automatically suspended the licensee’s real estate license when the board found the licensee guilty of which of these offenses?
802) Which one of the following elements of a deed signify the grantor’s intention to transfer title to the grantee?
803) The transfer tax rate is $0.37 per $100. A property that sold for $300,000 would have a ______ transfer tax.
804) How does discrimination still occur, even though it’s illegal?
805) As a property manager, Darby expects to _______.
806) Which type of estate conveys all rights of ownership?
807) Alexandra is perusing her closing statement, particularly those amounts that are a benefit to her. What’s the term for these items?
808) You’ve signed a listing agreement with a client. Which of the following activities will you address next in order to complete the sales process for your listing?
809) Which stage of the property ownership life cycle can be affected by income tax issues?
810) How can an agent offer dual agency legally?
811) Which type of contract involves an exchange of consideration between two parties?
812) A clause that allows the parties to agree that they won’t litigate if there are any contract disputes is a/n _________.
813) Conrad and Evan have been renting their house in Green Bay for several years. The end of their current lease is approaching, and the couple wants to continue renting the home. Which of the following is true of the lease arrangement they will enter into with their landlord?
814) What is the definition of a tax lien?
815) What figure results when you subtract the buyer credits from the buyer debits on the closing statement?
816) Roger just discovered that his loan includes a hidden balloon payment, so now he must ________.
817) Mario does not want to include a religious preference in his listing ad, so he decides to use which of the following phrases?
818) Juniper is buying a newly constructed home with a fireplace and garage. A _______ is required, per state laws.
819) Seller Julius knows he has asbestos in his insulation, and he wants to remove it before listing his house. What’s Julius’s best option for removal?
820) A listing agreement describes how compensation the seller’s agent earns will be shared with the licensee who brings the buyer. This is known as the _______.
821) Fred wants to make sure that his home is radon free. He wants to check all likely access points, including which of the following?
822) Ralph has a right of first refusal agreement on his neighbor’s property. When the property goes up for sale, how will Ralph exercise his right?
823) Which of the following is an example of a deed restriction?
824) A property manager is authorized to perform all of the duties related to the property on whose behalf?
825) uyer Yun-Wah is purchasing a property for $400,000. His loan-to-value ratio is 80%. The lender also charges a one-point loan origination fee. How much will his loan origination fee be?
826) What’s the area of a rectangular building that’s 40 feet by 20 feet?
827) Karen wants to sell her lakeside vacation home. Upon visiting for the first time in six months, she discovers it flooded during the rainy season. She should have the property checked for _______.
828) Al is a real estate licensee. Assuming that none of the following people are his clients but are parties to a potential transaction, to whom must he provide an agency disclosure form?
829) REALTOR® Jim wants to become a social media influencer to get his name out there as an exceptional real estate professional. Why might this be a good idea?
830) What is it called when a seller removes an item or fixture from a property (so that it becomes personal property instead of real property) before an agreement of sale has been signed or after negotiations have commenced?
831) Which of the following is something the seller is required to disclose to a buyer in a transaction?
832) Which of the following is a duty that licensees owe to ALL parties in a transaction?
833) Which of the following is a reason that wetlands are protected?
834) What’s an encumbrance?
835) Felicity doesn’t mind if her listing firm represents potential buyers of her home, but she would prefer that her listing agent only represent her in the transaction. What type of agency relationship should she select in her residential listing contract?
836) Vanessa has just returned $200 to a former tenant whose security deposit was $800. What else, if anything, must she do?
837) In terms of encumbrances, what’s a license?
838) Shelly is a landlord and places an advertisement for her apartment complex saying, “Bienvenido! These Spanish-style apartments are perfect for the Spaniard in you.” Is this a fair housing violation?
839) What’s the term for an addition to a sales agreement form that can be added before it is signed without changing any of the other terms that have already been agreed upon?
840) Ella, a listing agent, accidentally discriminated on the basis of familial status by using which statement in her advertisement?
841) Which of these is a requirement when licensees present a party’s written proposal to their client?
842) Which of these statements regarding the purpose of real estate governance is the most accurate?
843) Lease types, space planning, area design, and building layout are especially important for a property manager who’s working with a ______.
844) What responsibilities does a real estate professional have regarding property taxes?
845) Licensees conduct CMAs to determine ______.
846) Listing agent Paula receives three offers for the property overnight and finds them in her inbox first thing in the morning. How should she handle them?
847) A home sells for $225,000. Per the listing agreement, the total commission is 7% of the sales price. The listing brokerage will split the full commission with the buyer’s broker 50/50. Kiko the seller’s listing agent has a 70/30 split arrangement with her brokerage, with Kiko receiving the “70”. After sharing the commission with the buyer’s broker and her commission split with her brokerage, how much will Kiko receive?
848) Determine which of the following statements is TRUE when an as-is clause is used.
849) What do buyers provide to the seller as an indication that they are serious and intend to go through with the purchase?
850) To avoid discriminating against those with disabilities in her advertisements, June, a listing agent, should use which of the following phrases?
851) Lenders require that borrowers purchase and maintain adequate _____, which is usually bundled into their monthly PITI payment.
852) Where is an appropriate place for a broker to place client trust funds?
853) You should make sure that any property management agreement you sign has _______ that outlines why and when you have the right to terminate a contract with an owner.
854) REEB has received information that leads the board to believe that a broker has pursued a continuing course of mortgage fraud. Which of these statements about the board’s authority is true?
855) The potential for health hazards related to ______ must be disclosed when selling or renting homes built before 1978.
856) Which law requires the EPA to establish air quality standards?
857) In which type of contract does only one of the parties offer consideration?
858) Which of the following is a private agreement that impacts the use of the land?
859) John is a qualified third party conducting a standard review of a property. John is conducting a(n) ______.
860) Lester, a confirmed bachelor, decided to celebrate the fact that he just made the final payment on his home in Oshkosh. He invited several friends over for a “burn the mortgage” party. How does Lester own his home now?
861) Jerome is buying Joanne’s bungalow in Kenosha. Both parties decided they would prefer a title agent hold the earnest money prior to closing. In what type of account is the earnest likely to be deposited?
862) A late spring snow melt caused a river to swell past its bank. The flooding led to many landowners losing portions of their properties. What is the process called that caused this land loss?
863) Wanda wants to use some copyrighted material on her website. The law _______.
864) Which of the following describes a timeshare?
865) When can real estate agents give legal advice to a buyer about backing out of a contract?
866) Raj wants to protect some of the equity in his home in case of bankruptcy or foreclosure. He should file a(n) _____.
867) A claim of misrepresentation can stand up in court if it includes ________ elements.
868) The ______ form is used to form the type of contract that only binds the seller, who must not sell the property to anyone else during the specified time period. The buyer, on the other hand, isn’t bound by the contract.
869) Hilary just learned that some of the repairs the seller was going to make on the house she is buying in the Milwaukee suburbs will not be completed before closing. Rather than delaying the closing, what can Hilary and the buyer do?
870) Levinia is preparing a sales contract for her clients Rose and Lily. When is it acceptable for her to offer them legal advice?
871) What’s the term for paying off a loan over time?
872) What occurs when a tenant moves out because an issue with the unit makes the unit uninhabitable, such as a lack of heat in the winter?
873) What’s true of a contract amendment once it’s signed by both parties to the transaction?
874) What term is used to describe the illegal use of escrow funds, such as earnest money?
875) Serena works in the property management department of a large apartment complex. For which of the following tasks would she be required to hold a real estate license?
876) When preparing a property for showing, which of the following is true?
877) Sam the appraiser is most likely to use the cost approach for which of the following properties?
878) Why might a buyer want to assume a loan?
879) Leading up to closing, who should ensure that all deadlines are being met, all contingencies are cleared, and all paperwork is fully executed and delivered?
880) Which of the following responsibilities does the commercial property manager have that the residential property manager doesn’t have?
881) Which mortgage market is made up of lending institutions that lend directly to the consumer?
882) Which IRS forms are independent contractors and employees required to complete?
883) Lacey is preparing an offer for her buyer clients, and it’s time to fill in the amount of earnest money they’re going to offer. Which of the following statements is true regarding what earnest money the buyers should offer?
884) Jamie enters an agreement to buy Yolanda’s home. Per the agreement, Jamie promises to provide a $5,000 earnest money deposit, whereas Yolanda promises to sell her home to Jamie. These promises represent forms of ________, which are required to make the contract valid.
885) As supply increases, price ______.
886) Which of these statements about licensee cooperation is true?
887) Which term describes a contract in which the parties have met all agreement terms?
888) Which type of REIT receives most of its revenue from rental of their properties?
889) Government tax assessment offices determine the _________________ by comparing similar properties in a geographic area.
890) Dawn and John own a home together, but they’re getting a divorce. They agree that John will keep the house and assume the loan they signed together. Will the alienation clause in their security document prevent the assumption?
891) The process the government uses to take someone’s property is called __________.
892) The designated broker for Jennifer’s firm left the firm without warning. Can Jennifer and her fellow licensees continue to provide brokerage services?
893) Abe signs a contract to buy Penelope’s home. The deal eventually closes, but Penelope fails to hand over the home’s keys to Abe. A week passes, and Abe files a lawsuit in an attempt to force Penelope to give him the keys. This is an example of ________.
894) Archie wants to buy Claire’s membership share in a cooperative. Which of the following statements is true?
895) A line of credit that’s based on a percentage of the equity a person has in a property and which can be drawn upon for a number of years is known as a ______.
896) Which of the following statements about the duties that seller and buyer clients owe to their agents is true?
897) Janie’s got an open house on Sunday but lets her friend in on Saturday to preview it. It’s love at first sight! With the owner out of town, Janie decides to cancel the open house so there won’t be any other offers. Her friend makes an offer and it’s accepted on Monday. What fiduciary duty or duties has Janie breached?
898) What must you disclose to be in full compliance with an agent’s fiduciary duty to disclose?
899) How should you respond to a buyer who says the following? “I know that you technically can’t show me just the white neighborhoods, but I’m paying for your help. My time is valuable, and I don’t want to waste it going to showings in neighborhoods I don’t want to see. If you won’t screen properties for me the way I want you to, I’ll find someone else who will.”
900) When preparing the sales contract, when is it acceptable for a licensee to offer legal advice to the client?
901) Which option is a right guaranteed under the Privacy Act of 1974?
902) After selling your first house, you decide to cash the commission check yourself, and then give a bonus to your licensed assistant. What type of violation have you committed?
903) What’s the purpose of police power?
904) Trinity is 18 and wants to be a managing broker in Washington. She has completed the required 90 hours of coursework. What else might prevent her from taking the managing broker’s licensing exam?
905) Place the stages of the loan approval process in the correct order.
906) What’s the term for a contract for which one or more terms have yet to be completed?
907) The DOL director received a complaint against broker Carl Savage and has decided to investigate. What’s the next step in the process?
908) You prepared a comparative market analysis and have a plan for educating the seller about the value you can provide. Which stage of the residential sales process are you in?
909) What’s a legal description?
910) Jacob and Cynthia are purchasing a house from Carlos. They want to be protected from having to purchase the house if they find substantial property condition defects. What can they do with the contract to protect themselves?
911) Which of the following is an example of the duty of obedience?
912) Prior to closing on the property, Monica substituted her daughter’s name, Melanie, as the buyer. Although Melanie is now listed as the buyer, Monica isn’t released from her contractual obligations. This is an example of ______.
913) According to the Federal Communications Commission, who or which entity may call a person listed on the national Do Not Call Registry?
914) Why would a retail tenant be willing to sign a lease in which a percentage of sales proceeds are paid to the landlord?
915) What type of agency exists when a buyer’s broker is the listing agent for the same property?
916) Which term refers to a tract of land divided into lots or plots and used for building purposes?
917) How are independent contractors compensated and their income reported?
918) Which of the following statements is true about a licensee’s duties to a landlord the licensee represents?
919) A property owner’s right to access ponds, lakes, oceans, and other closed bodies of water bordering the owner’s land is called ______ rights.
920) Melissa, a new broker, is excited to meet with her first seller. She knows she needs some sort of form to outline her agreement with the seller. What should she do?
921) Renatta is under contract to sell her home to Marcus. Marcus has a financing contingency, and he finds that he’s unable to get financing for the home. He terminates the contract under this contingency. Renatta’s brokerage firm is holding the earnest money. What is their responsibility regarding disbursement of those funds?
922) You represent Cynthia and Ronald, who signed a contract to buy Margie’s home. The contract included the phrase, “time is of the essence.” You explain to Cynthia and Ronald that this phrase means ______.
923) The installment land contract is what type of financing?
924) A real estate licensee can provide which of the following opinions?
925) The secondary mortgage market is comprised of _________________________.
926) Which document is provided to borrowers no fewer than three days prior to closing and provides disclosures about the costs of the transaction?
927) Which document given before closing provides an estimate of the costs a buyer is likely to pay at settlement?
928) If a lead-based paint risk assessment or inspection reveals hazards on the property and the seller refuses to fix the problem, what options does the buyer have?
929) How much notice must a tenant give if they want to terminate their lease?
930) Elisa and Simone signed an agreement to list Simone’s house for sale. After the contract was signed, Simone lost her job, and her father, George, offered to help Simone out by paying Elisa’s commission. The buyer’s agent, Carl, also reduced his commission by a quarter of one percent to help Simone out. Who is Elisa’s client?
931) Renae showed a property to a Shannon, a buyer client, then to another client later that week. The second client made an offer and the seller accepted. The next day, Shannon called Renae to make an offer on the property and was angry that Renae showed it to another buyer. Did Shannon have a case?
932) How does the building department ensure that a builder who has obtained a permit builds according to code?
933) When must informed consent for dual agency be obtained?
934) When a local planning board is reviewing density, it would consider ______.
935) What regulation or regulatory authority identifies sites that have hazardous substances, and requires the responsible parties to clean them up?
936) Agatha helped her client Rufus complete the form that documents Rufus’s purchase offer to the seller for the property he’d like to buy. What is this form?
937) Which of the following is an example of positive misrepresentation?
938) What type of violation are you committing when you fail to include a material fact or make false or misleading advertising statements?
939) Although Kirk has been paying rent toward his ground lease for more than 17 years, he will never be able to buy the lease from the landowner. What type of ground lease does Kirk have?
940) Dan is buying Chuck’s property, which is listed with Nevin’s brokerage. Who are the parties to the exclusive right-to-sell listing agreement?
941) Which formula calculates net to seller?
942) Which of the following terms best describes an item that is both a fixture and real property?
943) To indicate that they understand and consent to the terms that appear on each page of the sales contract, what are the seller and buyer required to do?
944) A negotiable instrument must contain an order to pay or a ________.
945) Offers become binding contracts when they’re ______.
946) Cari is preparing an operating budget, and it shows a net loss. What should she do?
947) What is tortious interference?
948) Which of the following statements is true regarding conventional loans?
949) Genevieve is a licensee interested in purchasing a new home. She found the perfect place, which happens to be listed by the brokerage where she’s affiliated. What must she do if she intends to purchase the property?
950) What pricing strategy could work well in any market, primarily by generating buyer interest?
951) Why is it important for a company to revisit its objectives periodically?
952) A(n) _______ is an independent contractor who’s an employee by statute for certain employment tax purposes. An example is a food delivery driver who’s paid on commission.
953) A ____________________ is a worker who’s classified by the common understanding of the profession. An example would be a food server.
954) Georgette is meeting with her buyer clients to fill out the purchase and sale agreement. Which of the following must be true?
955) You’re writing an offer for your buyer client in a cold market. What would be a good negotiation strategy?
956) What’s it called when a real estate company establishes policies and procedures designed to keep confidential information secure, particularly regarding in-house transactions?
957) The buyer and seller are prorating property taxes. Step one is to calculate the daily rate. Next, the number of_________ is multiplied by the daily rate to get the prorated amount.
958) When evaluating the income listed on a loan application, what will the lender consider?
959) Not wanting to cause the sellers or mortgage lenders unnecessary concern, Gwen, the buyer’s agent, wasn’t exactly forthcoming about a slight change in her client’s financial status that her client had shared with her in confidence. Which fiduciary duty to the customer is Gwen violating?
960) What determines how frequently an interest rate adjusts in an adjustable rate mortgage?
961) Which of the following is an example of what would be included in a mission statement?
962) You’ve just accepted a new listing. Why would you want to view the details of past listings for this property?
963) Liam is buying Abigail’s home. Per their agreement, Liam promises to buy the home for $325,000, and Abigail promises to sell her home to Liam. These promises represent forms of ______, which are required to make the contract valid.
964) Jacob and Alexa have decided that they’ve had enough of city life and it’s time to move to the county. Which of the following should be included in the listing agreement they sign with Carla?
965) When preparing a purchase agreement, when is it appropriate for a licensee to offer legal advice to the client?
966) What’s the best way to describe your sphere of influence?
967) Terry just passed her licensing exam, and she’s been working with a broker for the last two months. So far, though, she doesn’t have any clients. How can she spend her time most productively?
968) Which of these is the best definition of a property’s market value?
969) Which entity guarantees government loans?
970) Of the benefits of seller agency, which is the most important to convey to a seller?
971) When you interview with a broker, which of the following goals should your questions help you confirm?
972) You have a duty of honesty and fairness to customers. You have a duty of obedience to your clients. What happens if a client asks you NOT to be honest about a material fact related to the property?
973) What’s a residential marketing plan?
974) Jan is a listing agent assisting the Chesters with the sale of their home. What is one of Jan’s duties?
975) When performing a market analysis, you’ll want to evaluate the number of houses on the market in a given price range and region. What is this data point called?
976) In Janie’s comparative market analysis, comparable A has an adjusted price of $118,000, comparable B has an adjusted price of $112,500, and comparable C has an adjusted price of $121,300. What would be a good way to use this data?
977) What is the purpose of the seller net sheet?
978) Stella is looking for a good broker with whom to affiliate. She begins her search by identifying brokerages located in a particular area. Which of these would be most important in terms of location?
979) Which of the following statements about using real estate assistants is true?
980) Minimizing risk in part means avoiding public networks, unsecure sites, and ______ sites.
981) Which of the following is the best piece of advice you would give to a licensee for avoiding legal concerns over any contract?
982) If you’re alone at an open house, what should you never post online?
983) Broker Janelle is deciding on an office location for her new firm. The main purpose of the office will be to meet with customers and clients. Where can she find data about where her prospective clients are located to help her decide on an office location?
984) Matt is representing the Tyler family in the sale of their house. What should he tell them about the property disclosure form?
985) What are vacancy rates, new building permits, inventory rates, and sales volume?
986) Clayton is your seller client, and you’ve provided him with an appropriate list price range for his house. He’s now found another house he’d like to purchase, but he needs to sell his current house before he can make an offer. Should his desire for another property impact pricing strategy?
987) Jose, a listing agent wants to write an ad for his new listing. Which of the following phrases is acceptable under fair housing guidelines?
988) Benji is a buyer’s agent, and he’ll receive a split of the commission paid from the sale of Harriet’s listing. The property sold for $425,000. The total commission paid from the sale is 6%, split evenly between the buyer and seller brokerages. Benji has an agreement with his broker that he earns 80% of the commission received. How much will Benji be paid from this sale?
989) To meet legal and ethical standards, all transactional records that you keep should be complete and ________.
990) Built-to-Last Construction, Inc., entered into a contract to build a new home for Jane and Dick Monahan. The contract specified that the home must be completed by June 1. Built-to-Last Construction finished the home on May 28. What’s this an example of?
991) Calculate the housing ratio based on the following information: $1,500 condo payment; $100 association fees per month; $150 monthly student loan payment; $300 car payment (with only four payments remaining); and a gross monthly income of $5,000.
992) Which of the following options describes a method by which a person with a real estate license can determine an appropriate listing price range?
993) In an analysis of comparables, property A is next door to the subject property and had six adjustments. Property B is three blocks away and had three adjustments. Property C is six blocks away and had two adjustments. Property D is one block away and had eight adjustments. Which comparable should carry the most weight in determining a list price range?
994) Your client, Arliss Xavier, insists on finding a buyer who is willing to pay top dollar for her property. You, on the other hand, would like to get the property sold so you can get your commission. What should you do?
995) Camille makes it a point to check the MLS for seller clients’ properties’ former MLS listings. What information will she find there?
996) Can Jeremy, a licensee, receive a referral fee for sending his buyer client to Ajax Title?
997) Marcus is representing a seller client. Which of the following is a true statement?
998) Last week, The Rialdis’ listing agreement ended after months on the market, with not even a single offer to show for it. Today, they received a call from Mindy, a real estate professional who would like to relist the property and has some new ideas for getting it sold. What approach is Mindy using to find listings?
999) What’s the purpose of the loan application?
1000) Because of the lack of control over the individual by the employing party, which of the following persons is not classified as an employee?
1001) From a seller’s perspective, what’s one reason to use the MLS to promote a property?
1002) REALTOR® Randy has a seller client who’s proving difficult to work with, and Randy knows he won’t appreciate the advice Randy needs to give him: The market has cooled and the listing price they agreed to should be lowered. He puts off contacting his client, hoping someone will make an offer in the meantime. Is Randy acting according to the NAR Code of Ethics?
1003) Sylvia, who’s suffering from early onset Alzheimer’s, signs a contract to buy Theodore’s home. Before the deal closes, it’s determined that Sylvia lacks legal capacity to enter into a contract. Which party or parties is permitted to void the contract?
1004) Why is it important to try to view the world from your client’s perspective?
1005) While reviewing her purchase contract, Jeanette’s client asked, “What does this inspection contingency do?” How should Jeanette frame her response?
1006) Edmond, a broker, signs a listing agreement with Julia, who’s selling her home. Julia insists that the agreement state that only Christians will be allowed to buy her home. For what reason would this agreement be considered void?
1007) The formula for net to seller is sales price x (100% – _______).
1008) Besides building seller rapport, what’s a key purpose of touring a subject property?
1009) Which of the following phrases should Monica include in her new listing ad if she wants to be careful to avoid including a religious preference?
1010) What value principle assumes that if an identical property were sold recently, its sales price should be a good indicator of the value of the subject property?
1011) Which term means a calculated percentage used to determine who owes how much of a given expense over a certain period of time?
1012) Traci is hosting an open house for her seller, Alex. Rashid, a potential buyer, stops by, loves the home, and starts talking with Traci about buying the property. Rashid isn’t working with a broker. How does Traci avoid an undisclosed, unintentional dual agency situation?
1013) In accordance with RESPA prohibitions, rebates may only be offered by licensees to transaction parties, if _____.
1014) Lorena is getting ready to post information about her new listing on social media. Which of the following should she do?
1015) One type of seller financing is a(n) ______.
1016) In most states, tenancy in common is the assumed form of property ownership unless otherwise noted in a contract. Which of the following statements about tenancy in common is also true?
1017) Which of the following is a legitimate business deduction for income tax purposes for a real estate licensee?
1018) Which of the following statements applies to both employees and independent contractors?
1019) What’s the acronym for the legislation that eliminates illegal referral fees among settlement service providers?
1020) If an appraisal contingency is in place, what happens when a property appraises lower than the agreed-upon sales price?
1021) What measurement indicates how many properties are selling in a given area?
1022) Per the Real Estate Settlement Procedures Act (RESPA), licensees may not receive or give referral fees or finder fees (or anything of value) from/to whom?
1023) Where are the top two places you should spend your marketing dollars?
1024) When does express agency exist?
1025) The Real Estate Settlement Procedures Act is a consumer protection statute that ______.
1026) What’s a cooperating broker?
1027) You’re the agent for a 2,500-square-foot property that has four bedrooms, two baths, and a full basement. Your first comparable is a 2,400-square-foot home with three bedrooms, one-and-a-half baths, and no basement that’s listed for $239,000. You adjust the price by $2,500 for the lack of a bedroom, $3,000 for the missing half bath, and $5,000 for the reduced square footage. What is the adjusted price of the comparable property?
1028) Although open houses don’t usually result in the sale of the home, they’re still important. Why?
1029) How does a budget compare to a forecast?
1030) What is another name for a land contract?
1031) Which of the following is a map of a proposed subdivision development that must be approved by the planning commission, before development may begin?
1032) What’s the most common way that buyers’ brokers protect their compensation?
1033) Who’s ultimately responsible for determining the role a licensee is expected to play in any transaction?
1034) Why do licensees help buyers estimate closing costs?
1035) A $400,000 property depreciated in value by 2%. What’s its new value?
1036) To determine the indicated market value of a subject property, which of the following data would be correct to use?
1037) Which buyer negotiation strategy is unlikely to work in a hot market?
1038) It’s not a good idea to post photos of your clients’ expensive belongings. Why is that?
1039) As supply increases, what happens to price?
1040) Denise is a real estate licensee performing a market analysis. She uses the rule of three, which means that she selects three comparables that ______.
1041) What’s your responsibility regarding contingencies when representing a buyer?
1042) Which one of the following best describes the fiduciary duty of confidentiality?
1043) Which of the following are common with hot markets?
1044) Three friends entered into a contract to buy a vacation property. The friends got into a dispute, resulting in one of them wanting out of the deal. The remaining two friends didn’t want to lose the deal, but couldn’t afford it on their own. They talked a fourth friend into replacing the person who backed out of the contract. The seller agreed to the substitution, and they moved forward with the purchase. What does this describe?
1045) What does the Rule of Three say about comparables when preparing a CMA?
1046) As demand increases, what happens to price?
1047) What element of the listing presentation outlines the various ways a licensee will advertise and boost awareness of a seller’s property to potential buyers?
1048) How does the seller agency relationship benefit the seller?
1049) What is closing?
1050) Prior to closing on the property, Monica substituted her daughter’s name, Melanie, as the buyer. Although Melanie is now listed as the buyer, Monica isn’t released from her contractual obligations. What is this scenario an example of?
1051) Which type of worker is defined in statute under tax law as an independent contractor and not an employee, examples of which include direct sellers, licensed real estate agents, and certain companion sitters?
1052) Matt and Elaine are brokers who plan to go into business together, and they’re working on a business plan to present to prospective lenders. Which section will provide a synopsis of the plan?
1053) Jillian just received a trio from a title company. It contains a property profile, deed, and ______.
1054) If a seller receives a full-price offer, which of the following is a true statement?
1055) You represent Cynthia and Ronald, who signed a contract to buy Margie’s home. The contract included the phrase “time is of the essence.” How do you explain to Cynthia and Ronald what this phrase means?
1056) After adjusting sales prices of comparables for a market analysis, which comparable carries the most weight in determining a list price range?
1057) Kathy is preparing a market analysis for her clients, the Winstons. Why might she include a seller net sheet?
1058) The Nguyens must get top dollar. Competitive properties are priced at $250,000 and $255,000. What’s a good pricing strategy?
1059) The _______ orders the title search in an escrow closing.
1060) What’s the purpose of the buyer pre-qualification letter?
1061) Mona is a licensee who strives to be professional in all of her actions, so how does she keep her business account?
1062) Which of the following is a true statement regarding short sales?
1063) Mary is preparing a purchase offer for her buyer client. It’s a fairly standard offer: a little less than list price, with the seller paying a little toward the buyer’s closing costs. Mary fills in the blanks on a standard form used in her brokerage firm based on the current situation. Is this okay?
1064) What is the purpose of a pre-closing checklist?
1065) After signing a purchase contract, buyer Pam and seller Waylon both realize that the address for Pam’s newly-purchased home reads “344 Beverly Way” instead of the correct address: “334 Beverly Way.” Which of the following is true about this situation?
1066) When Shelby had lunch with an old high school friend, he mentioned his new career as a real estate licensee. They spent a few minutes discussing the real estate market, and Shelby’s friend promised to call when he and his wife started looking for a home to buy. Then they continued reminiscing about old times. Is the cost of the meal now an allow
1067) James’s brokerage, Urban Roots, will specialize in urban living spaces. During the situational analysis, he found that the population his brokerage will serve prefers to meet with sales agents virtually. Part of the brokerage’s mission statement is: “Help our customers to find the perfect urban living space in a way that suits their busy lifestyles.” Which of the following should be included in Urban Roots’ plan to address this?
1068) Henrietta makes an offer for $250,000 on Ollie’s bungalow. Ollie has until June 21 to respond to her offer. Before Ollie responds, Henrietta finds a house she likes better, and she withdraws her offer to Ollie. Which of the following is true of this situation?
1069) Which of the following hardware and software configurations is best suited for a brokerage office that will primarily serve as a meeting place for virtual sales professionals?
1070) You’re working with sellers who need to maximize their proceeds. Competitive properties are priced at $370,000 and $375,000. What’s a good pricing strategy?
1071) Nancy is thinking about paying off her mortgage loan early. She looked at the loan contract and found that her lender charges a pre-payment fee based on a percentage of interest paid within six months. The lender charges 80% of six months’ interest. Nancy’s mortgage has $50,000 remaining, and she pays 6% interest. How much would she owe in penalty fees?
1072) An example of confidential information is ______.
1073) Which of the following best describes the purpose of the Truth in Lending Act?
1074) Adam owes $125,000 on his home. It’s currently worth $340,000. How much equity does Adam have in his home?
1075) As a security precaution when posting information for a listing, which of the following should you do?
1076) One reality of real estate is that you’ll often need to ______ in order to make a sale.
1077) In the income capitalization approach to appraisal, NOI is found by ______.
1078) What is a reason a homeowner may seek a short sale?
1079) Peter is a broker with a listing agreement with the sellers, the Averys. Under the terms of the listing agreement, Peter will earn his commission whether he, the Averys, or another brokerage finds a buyer for the property. What type of listing agreement did the Averys sign?
1080) Why is it important to include active comparable listings in a market analysis?
1081) What, when signed by all parties to a sales contract, changes the original terms of the contract ?
1082) After the open house has ended, it’s best to _______.
1083) Your sellers, the McIntoshes, ask you about the MLS and why they should market their house on it. Which of the following would you tell them?
1084) Two types of prorations are _______.
1085) Bart is an independent contractor. Which of these does his managing broker have the right to do?
1086) Abe signs a contract to buy Penelope’s home. The deal eventually closes, but Penelope fails to hand over the home’s keys to Abe. A week passes, and Abe files a lawsuit in an attempt to force Penelope to give him the keys. Of what is this an example?
1087) When interest rates are lowered, real estate purchases become more ______ for buyers.
1088) When looking for a broker with whom to affiliate, an important consideration is to find out if the broker is ___________ .
1089) Under which of the following circumstances might you be advised to refuse to write a listing contract with sellers?
1090) Buyer Josephine had just signed a contract on a house when she discovered that seller’s agent Franklin knew that this house was 3500 square feet, but he listed it at 3900 square feet. Which essential contract element has been compromised?
1091) What is usually the first place serious buyers look for homes for sale?
1092) Risks to computer systems can be reduced by avoiding public networks, ______ sites, and suspicious sites.
1093) Which of the following is an action that real estate licensees may take without practicing law illegally?
1094) The multiple listing service is a go-to resource for data when researching a subject property. What information will you find there?
1095) Pam is a new real estate licensee who must receive a high level of supervision. Even with the supervisory requirement, the Internal Revenue Service allows Pam to be classified as an ______.
1096) A listing agent’s primary duty to a seller is to ______.
1097) What does a credit score tell a lender?
1098) Which of these is a factor in calculating a consumer’s credit score?
1099) Ginger, a licensee, tours a home that’s packed with clutter. She should ______.
1100) Real property ownersip has significant tax advantages. Which of the following is an advantage?
1101) Ways to minimize computer risks include avoiding public networks, unsecure sites, and ______ sites.
1102) Which of the following describes a sale subject to a mortgage?
1103) Homes built before 1978 may have what environmental hazard in their paint?
1104) Why would a buyer want to know whether any additions or alterations were made to a property?
1105) When a client understands what dual agency is and agrees in writing to allow a firm to act as a dual agent for them in a real estate transaction, this is known as ______.
1106) What is one drawback of sub-agency from a seller’s standpoint?
1107) In a real estate transaction, who may a licensee represent?
1108) Members of the Real Estate Commission serve _________-year terms.
1109) If a consumer wants to file a deceptive ad complaint, which entity should be contacted?
1110) Species habitat, beauty, erosion control, and pollution treatment are all reasons why wetlands are ___________.
1111) Kerry is a real estate licensee who has committed an ethical violation. Which of the following is a true statement about her potential penalties?
1112) One of Mrs. Wilson’s tenants is leaving in a few months. She hates to see this particular tenant go because he has been an ideal tenant—always paying his rent on time, keeping his place clean, and never a complaint. Unlike so many of her other tenants, this tenant deserves to get back his security deposit. By law, when must Mrs. Wilson return the deposit to her tenant?
1113) If a licensee is convicted of a controlled substance offense, what can the Real Estate Commission do?
1114) A buyer asked Clifton why she would benefit from signing an agency agreement with him. Clifton answered: ______
1115) At a business meeting attended by the heads of the top brokerages in town, the keynote speaker discussed a minimum listing fee. This is an example of ______.
1116) What type of agency relationship exists if an agent from ABC Realty represents a buyer and the seller is affiliated with Net Realty?
1117) Article 3 of the Code of Ethics requires NAR brokers to cooperate except
1118) Which term describes the addition of alluvion land to a property through the natural process of accretion?
1119) Which of the following are examples of Single Agency?
1120) Under what name must sole proprietors conduct business?
1121) Glenda is engaged as seller’s agent. Gary, the seller, hasn’t consent to dual agency. A prospective buyer would like Glenda’s assistance in drafting an offer to present to Gary. Can Glenda do this?
1122) The lender, the loan applicant, and the _____________ all complete part of the request forms for verification of deposit forms.
1123) April is having a limited coverage searched performed on her condo. When is a limited coverage search used?
1124) Which Law does the Office of Fair Housing and Equal Opportunity Uphold?
1125) According to the NAR code of Ethics and Standards of Practice Preamble, “REALTORS should recognize that the interests of the nation and its citizens require the ____________.”
1126) Ownership is a right in the bundle of rights. Which of the following is considered a form of ownership?
1127) Which of the following financing types involves the sale of personal property with the real property?
1128) In a transfer of ownership in real property, who conveys the title?
1129) At what level or levels does antitrust oversight exist?
1130) Stephanie’s primary residence is in SC, has a fair market value of $225,000, and is in an area with a millage rate of .325. Stephanie qualifies for the state homestead exemption. What could she expect to pay in property taxes?
1131) Sally is a licensee working under a written brokerage agreement with buyer Barney. Although she’s assisting him in the transaction, he’s her customer (not her client), and she doesn’t owe him any fiduciary duties. Based on this, you know that Sally’s acting as a __________.
1132) What’s a subordination agreement?
1133) Which of the following describes the appropriate capital gain exclusion for a taxpayer’s primary residence?
–Random-part2-practice—
1) Erica presented an offer to her seller client, and after a bit of negotiating with the buyer and buyer’s agent, the offer was accepted. Which one of these activities will Erica be taking care of at this point in the sales process?
2) The duty of honesty to your customer trumps your duty of confidentiality to your client.
3) Your buyer clients Jen and Tony really like the patio set and bedroom furniture in the house you’ve just shown them. Because the market is hot, what would you advise they do?
4) The maximum annual tax on real property Proposition 13 sets is capped at 1% of the property’s market value each year.
5) A property’s base value can increase by as much as 2% each year under Proposition 13.
6) An addition, such as a garage, will result in a change in the base year for the entire property.
7) It’s possible for a property to have two different base value years.
8) Prohibits monopolies and actions that cause an unreasonable restraint of trade
9) They’re guilty, so what do we need to prove? It’s all a matter of per se. What does per se mean?
10) How is procuring cause related to a protection clause?
11) What’s an REO property?
12) What should you make sure your clients understand about the scope of the preliminary title report?
13) Protects the buyer’s earnest money in the event the buyer is unable to obtain financing.
14) If the property does not appraise at or more than the sales price, the buyer can terminate.
15) The buyer has made the offer to purchase based on the buyer’s current property selling.
16) With an appraisal contingency, the buyer can use the fact that the property hasn’t appraised to terminate and receive a refund of the earnest money.
17) Sellers are often reluctant to accept offers contingent on the sale of another property, and when they do, they usually reserve the right to market and show the property to other buyers.
18) In an offer that’s contingent on the sale of the buyer’s current home, even if their home doesn’t sell by the agreed-upon deadline, the buyer has the option to remove the contingency and proceed with the sale.
19) Can you define an option contract?
20) At what point does an option contract become binding for both parties?
21) Who can enforce an option contract—the optionee or the optionor?
22) The option agreement is designed to be used with a purchase agreement or a lease agreement.
23) What document should detail the typical reports a property manager needs to provide for a property owner?
24) Which of these refers to the agreed-upon price between a buyer and a seller?
25) The maximum amount of income a property can generate from all sources when fully occupied and when rents are fully collected
26) Income received when tenants pay for some or all of the property’s operating expenses
27) Actual gross potential income is offset by this, which occurs when units are not rented or tenants do not pay their full obligation
28) What information is a property owner likely to gather from the effective gross income?
29) The Business and Professions Code requires that transactional records be kept for how long?
30) Janice wants to sell her townhome, and her neighbor is considering purchasing it from her. While she’s waiting to find out if her neighbor is serious, she wants to market it and receive the best representation possible. What type of listing agreement will save Janice the cost of a commission if her neighbor does ultimately decide to buy Janice’s townhome?
31) A good question to ask an investor to determine the type of services they may want from you is:
32) Sometimes, the __________ of the property can have the burden of being responsible for paying sales tax.
33) It’s the licensee’s responsibility to know how and when taxes and real estate ___________.
34) An agent stating that property is “guaranteed to increase in value over the next five years” is an example of ___________.
35) Also included in Prop 13 is a maximum ______ % annual inflation factor, based on the Consumer Price Index (CPI).
36) Just because several brokerages have the same commission rates, it doesn’t mean a price fixing violation is occurring. What must exist for a violation to occur?
37) What responsibilities do licensees have regarding contingencies in a real estate transaction?
38) Although an independent contractor, this worker is defined as an employee by statute for certain employment tax purposes. An example would be a food delivery driver who is paid on commission.
39) Having information about clients you’re meeting allows them to be identified and tracked down in case something goes wrong. This is why you should do what?
40) When might an additional provision be needed in an agreement of sale?
41) In an option contract, prior to the optionee exercising the option to buy, which parties are bound to carry out their contractual obligations?
42) When is the mortgage loan commitment or title insurance contract signed?
43) Which of the following actions occurs prior to a closing?
44) Whose responsibility is it to determine instructions?
45) How do you find the Return on Investment (ROI) ?
46) According to the California real estate commissioner’s regulations, how many types of recordkeeping are acceptable for trust funds?
47) What is a convertible mortgage?
48) What does an equity Real Estate Investment Trust invest in?
49) What is basis?
50) Which of the following is an unauthorized practice of law?
51) Which of the following types of training/course might be one that the Missouri Real Estate Commission would consider for a core course requirement to fulfill the CE requirements for real estate licensees?
52) How often must a Maryland licensee check the license status of a general contractor if recommending the service provider to a potential buyer?
53) During a residential transaction, when must an Illinois seller’s agent deliver a completed Residential Real Property Disclosure Report to a buyer?
54) n accordance with the Illinois Real Estate License Act, sponsoring brokers must keep copies of all disclosures on file for ____________________.
55) Charlie, who owns and leases out a commercial building, pays taxes, maintenance, and insurance on the building. What type of lease agreement does Charlie have with his tenants?
56) Which of the following is one benefit to business owners for leasing instead of buying real estate for their business?
57) Damien was representing a commercial property owner. Which one of the following duties can the owner expect Damien to perform on the property owner’s behalf?
58) Farm families financing the purchase of properties in rural areas may be able to obtain financing through this government agency if they meet certain criteria, such as income requirements.
59) what’s one benefit of a rural development loan?
60) What entity services rural development loans?
61) what attracts borrowers to adjustable rate mortgages?
62) Manuel is selling his home to Selena. He has an existing loan that he’ll continue to make payments on, and he’s extending credit to Selena for the balance of the purchase price. She will make monthly payments to him. What type of financing are the parties using in this transaction?
63) After switching careers, Alice just graduated from culinary school and is looking to purchase a house. Until she gets her feet wet with her new job, she knows the cost of living with her mortgage is going to be tight. Which mortgage might help her manage her expenses each month?
64) What type of arrangement allows the buyer to retain title to the property but places a security interest in the property on behalf of the seller?
65) Walt and Ginger were informed by their landlord that their option to purchase the bungalow they’re renting has just been terminated. Which of the following things that can occur is likely to terminate an option to purchase?
66) Margaret isn’t ready to buy Jill’s property, but she pays Jill a fee that guarantees she’ll be notified if another buyer appears. If another buyer does make an offer, Margaret has the opportunity to purchase at the price and terms of the offer. Margaret has a(n) ______ on Jill’s property.
67) Edna leased her house to Joan with a right of first refusal. Edna’s cousin, who knows that she needs liquid assets, just offered her $250,000 for the house. What does Joan have to do if she wants to buy the house?
68) the ueta makes it legal and binding for contracts to be
69) Both parties have to sign the agreement in order to demonstrate that ________.
70) You’re talking to a co-worker at lunch and she mentions she has a box of baby clothes her kids have outgrown that she needs to get rid of. You have a baby on the way, so you offer to pay her $25, and she agrees to bring the box to work the next day and give it to you. Which of the following is true in this situation?
71) Your neighbor hires a middle school student to mow his lawn every two weeks. He draws up a written contract in which he clearly outlines the student’s mowing responsibilities and the payment the student will receive in return. Which of the following is true in this situation?
72) Which clause in a contract states that one or more parties won’t be held liable if there are losses or expenses related to the contract?
73) Sylvia, who’s 15 years old, and her neighbor Marge, who’s 24, agree that Sylvia will babysit Marge’s toddler for the summer for $10 an hour. What type of contract is this?
74) 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 ______.
75) What happens to the company license if the qualifying broker dies or becomes incapacitated?
76) Julie is working with buyer clients and has prepared an estimated closing statement. Which of the following statements is true?
77) Buyer Susie’s a little nervous about the $20,000 earnest money check she just deposited with the title company. When should she expect to see this money applied toward her purchase of the property?
78) Which of these is a recommended strategy for a real estate professional who wants to avoid being asked to violate fair housing laws?
79) Renae moved to the U.S. from Nigeria and became a citizen. Which act specifically provides Renae with the right to buy, sell, convey, inherit, and possess property?
80) Ramon and Bill are victims of fair housing discrimination. Which of the following must have occurred if their landlord violated specific terms of the Fair Housing Act?
81) Cambridge Apartments provides an open parking lot for its residents. There is adequate parking, and all spaces are available on a “first-come, first-served” basis. Alton has MS and uses a motorized wheelchair. Must Cambridge reserve a parking place specifically for Alton if he requests?
82) Which statement related to reasonable accommodation for an assistance animal is true?
83) What must occur to effect a transfer of title?
84) A real estate licensee must conduct marketing campaigns in a way that ______.
85) The property management _______ provides detailed information about the rental property, such as market analysis, competitive analysis, and property analysis.
86) Rick is representing Jules, a seller, who wants to know if he has to disclose his leaking roof to buyers. Rick says yes, since the problem constitutes _______.
87) The purpose of the Truth in Lending Act (TILA) is to ______.
88) Adella received money for her down payment in the form of a tax credit on her federal tax return. This tax credit is known as a __________________________.
89) Subdivision regulations imposed by developers in an effort to maintain control of the development of the subdivision are an example of ______.
90) Deed restrictions imposed by a developer who wants to maintain specific standards in a subdivision under development are often called _______.
91) Personal property includes which of the following?
92) Ron’s company leased a building so that they could build an escape room experience. After operating for two years, their attendance (and thus their profits) started to drop significantly, so they decided it was time to close the location. When they started taking down the installation, they realized that some of the structures they built will damage the walls if they try to remove them. Which of these is true about these trade fixtures?
93) Agent Terry meets a potential seller, Cate, who’s unhappy with her agent. “Break your contract with your agent,” Terry says, “and I’ll work hard for you.” Less than a week after Cate breaks with her agent and signs with Terry, he puts her house on the MLS and puts a for sale sign on her property with her permission. The two of them arrange an open house. Did Terry break any rules?
94) Jerrold reviews the floor plan of the Knoxville house he’s going to sell. It’s 3,800 square feet. In his advertising, he bumps that number up to 4,000 square feet to better justify its asking price. What has Jerrold done?
95) Patty is writing an online ad for several condos she’s selling. “More than 3,000 square feet!” she writes. She’s pretty sure that this is the average size of the condos. She included her brokerage firm and her license status on the advertisement, as well. How did Patty do?
96) What information does the Loan Estimate NOT provide to buyers under required disclosures law?
97) Sam’s kids talked him into putting up the basketball hoop that their grandparents got them for Christmas. On a quiet Saturday afternoon, Sam is busy nailing the backboard to the front of their garage facing the street when one of the officers of the homeowners association walks by. “I’m so sorry,” she says, “but you’ll have to take that down. Basketball hoops in direct view of the street are prohibited.” What is in place in Sam’s subdivision that would prohibit this?
98) Which department typically decides which development projects require a permit or approval?
99) What classification of water rights includes the two smaller sub-classifications of navigable and non-navigable waterways?
100) Bonnie is calculating the square footage of a listing. The upper level of the home is 450 square feet. The main floor is 1,200 square feet, including an unfinished laundry area that’s 225 square feet. The 1,200-square-foot basement is finished. Bonnie’s MLS system disregards below-grade square footage. What square footage will Bonnie mention in her MLS listing and marketing materials?
101) Your 15-year-old son just signed a contract joining a health club, which costs $50 a month. Is this contract valid?
102) Steve is preparing a market analysis for the Joneses and has selected three comparable properties. What’s the maximum number of adjustments Steve should make to the Joneses’ property?
103) Which statement regarding fee simple defeasible estates is true?
104) Which of these is an example of antitrust violations common to real estate?
105) In marketing her new listing, Alice asks the photographer to “touch-up” the photos of the house so that the old roof and siding look as though they are new. Which statement about this is true?
106) Trinity has applied for a home equity line of credit to perform some upgrades on her home. Within what timeframe must her lender provide the Closing Disclosure?
107) Trina is a licensee at Midtown Homes. Which of these factors indicates that she’s classified as an employee?
108) Jordan works as a property manager for several residential property owners. When she receives security deposits from tenants, how long does she have to deposit them into an escrow account?
109) A mortgage is a legally binding document that creates a lien on a piece of property and gives the lender the right to foreclose on the property if the borrower defaults. Who or what entity is considered the mortgagee?
110) How are fines assessed for violations of the CAN-SPAM Act?
111) When is a cease and desist order effective?
112) In contract law, undue influence differs from duress in that duress includes ______.
113) Nellie and Victor own a suburban ranch home and fell behind on paying their property taxes when Victor lost his job last year. Victor is working again, but they still haven’t saved enough to pay their back taxes. They’re worried that the county may begin foreclosure proceedings. What type of lien is this?
114) Why did the implementation of TRID impact closing dates?
115) Your neighbors build a high-quality addition to their home, increasing its value compared to your own home’s value. Because of this, you notice a bump in your property value. Which economic principle is at work here?
116) What’s the relationship between TILA, RESPA, and TRID?
117) Sandra and Dwight are neighbors who share a common driveway, but the driveway is on Dwight’s property. What kind of ownership rights does Dwight have of the driveway?
118) Which of the following is most likely to have an extremely negative effect on the time and cost of a development project?
119) Agency may be legally terminated in which of the following ways?
120) 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?
121) Monica received a promotion at work that requires her to relocate. Because of the timing of her promotion, she’ll need to buy a new house in her new city before her current one is sold. So, she won’t have any equity from her current home to make a down payment on the new house. What loan option would allow her to make the purchase before selling the old house?
122) The Amarals are purchasing the house of their dreams and have plans to stay in it for at least the next three decades while they pay back their conventional 30-year loan. Their primary focus, over the life of the loan, is to reduce their payments as much as possible. What is something that could help them achieve this?
123) How might the lengthy purchase process for a short sale or foreclosure impact a buyer’s financing?
124) How many parties does a deed of trust involve?
125) Philip owns land in a state where growing marijuana is illegal. He wants to set up a small marijuana growing operation and export to states where marijuana has been legalized. He asks his attorney about the possibility. “No,” his attorney explains. “It’s not possible. Although you own the property outright, the right of ______ only allows you to manage the property in ways that are legal in this jurisdiction.
126) Which one of the following could be a clue that a property was formerly a waste disposal site?
127) What’s another term for deed in lieu of foreclosure?
128) A License holder may have more than one claim against hom. However, payments made from the Real Estate Education, Research, and Recovery Fund on behalf of the license holder must not exceed what amount?
129) Amy plans to open a brokerage. What might make her select a franchise?
130) What’s one of the main differences between a traditional mortgage loan and an interim loan?
131) Which section of the Exclusive Buyer Brokerage Agreement allows for an addendum to cover any special situations not outlines in the agreement?
132) Jeremy has just finished completing his loan application and has gathered supporting documentation needed to determine whether the application will be approved. Which of these titles best describe who Jeremy is?
133) A contract in which only one party is bound is __________________.
134) Bernie works for Quckwell Lending and accesses several lenders to find a loan product that works best for his clients. What is Bernie?
135) Which title search method only goes back as far as when the last title search performed, and assumes the last search was done accurately, legally, and that any issues were resolved?
136) Which of these would be considered a special circumstance that may require prior approval from a third party before a listing agreement can go into effect?
137) What is the assessed value of a property with a fair market value of $249,500?
138) Rhonda is interested in putting money toward a timeshare estate, which would allow her to use a condominium for two weeks each year. Timeshare estates _____________.
139) What doe each component of the 80/10/10 ratio represent in a split-or piggyback-loan?
140) As a(n) ___________ property manager, you spend most of your time on maintenance, landscaping, security issues, and enforcing HOA regulations.
141) When is transfer tax payable?
142) As a licensee, what should you do as soon as it’s known that closing will be delayed?
143) What does the claims for loss statement in a title policy say?
144) How can lapsed homeowners insurance lead to default of the mortgage loan?
145) Kristin wants to buy her listing. What must she do to be on the up and up?
146) What type of zoning is used to separate one type of property of another use?
147) Which of the following options describes a method by which licensee can determine an appropriate listing price range?
148) Rachel and Nick are selling their home. Before the property is sold, a title search is conducted to determine if there are any _________________.
149) Fiona signed an agreement to either buy or not buy Nick’s vacant lost for $310,000 by a specific date. What’s the agreement called?
150) A complaint was filed against Bard, a licensee. A hearing was help, and GREC issued a/an _______________________, which resulted in a small fine and the requirement for Barb to take some additional education.
151) What actions are taken to account for the release of gases produced by decomposing trash in a decommissioned landfill?
152) What’s a computerized loan origination system?
153) When assessing a contract, the assignor ensure that __________ is not prohibited in the purchase contract.
154) Marcy listed her property with Jennings Homes in March. The market is slow, and Marcy’s property isn’t in great condition, though she’s sure she can get top dollar for it because of its location. Her agent encourages her to either reduce the price or fix the property up, but she refuses. Both Marcy and her agent are frustrated. What’s the best options for both of them?
155) Milton, a broker, agrees to sell his sister’s house. She needs to receive at least $200,000 and offers Milton a deal: If he sells the house for $205,000, he can keep anything over $205,000. So he lists the house at $220,000-he wants to make some money, too. If it sells at this price, he gets $15,000. What type of agreement is this?
156) What’s a listing agent’s primary duty to a seller?
157) Monica, who’s selling her home to Ethan, promises in writing to have a licensed professional repair the home’s leaky roof. After closing, Ethan discovers that the roof was poorly patched by the homeowner and leaks whenever it rains heavily. Under the statute of limitations, of Ethan wishes to sue Monica, he must do so within _____ of the contract breach.
158) Which type of estate is a life estate?
159) What occurs when a landlord has a tenant removed from the premise through a suit for possession?
160) Stanley is having second thoughts about taking her neighbor to court over a written agreement they have concerning who pays the rent on a storage unit that they share, because it’s used to store stolen merchandise. Stanley doesn’t think they contract will stand up in court. What type of contract does Stanley have?
161) What’s the difference between an exclusive right-to-sell and exclusive agency agreement?
162) What’s the legal process used to determine a will’s validity and to ensure that the will accurately reflects the deceased person’s wishes?
163) When Polly the puppy escaped her fenced-in yard, her owner, Jane, posted a reward for her safe return. What type of contract was Jane creating?
164) One of the risks of buying a condominium is that _________________.
165) Which of the following agencies is responsible for regulating the Equal Credit Opportunity Act?
166) Whose responsibility is it to notify GREC of a licensee’s transfer?
167) Cecil is a licensee who wants to purchase a home listed by the brokerage where he;s affiliated. What must he do?
168) Jillian has a loan-to-value ratio of 90/10. This means __________.
169) What effect will a property utility have on the value if it’s currently uninhabitable?
170) What’s the Mortgage Electronic Registration Systems, Inc (MERS)?
171) Which of the following is the probable sales price of a property if the property were sold under normal market conditions?
172) What’s a lease?
173) What is the purpose of a lender’s title policy?
174) You make an investment with other real estate investors. Because of the profit-oriented nature, and the fact that the profit depends solely on the management effort of others, this is likely what?
175) A VA Loan…..
176) _________________ occurs when the parties meet all terms of the contract
177) For what reason do borrowers commonly seek the assistance of individual private lenders?
178) ______________________ are artificial attachments to land that include items such as fencing, buildings, and walkways
179) Which of the following best describe what Ginnie Mae does in the secondary mortgage market?
180) How long can a broker wait after non-payment of a commission to record a lien against a commercial property?
181) SRT Mortgage has a borrower who has fallen behind on her mortgage. Rather than go through a foreclosure, the borrower is attempting to sell the property. An offer come in for less than the borrower’s loan balance and closing costs, but for more than what the lender feels it’d get at a foreclosure sale, so it approves the purchase. What is this an example of?
182) What are the rights and privilege’s granted with a fee simple estate commonly called?
183) When evaluating the income listen on a loan application, what will the lender consider?
184) Which of the following options can a real estate licensee provide?
185) Bianca wants to buy a cooperative, but she’s unsure that she can afford it. With a cooperative, her share of mortgage interest and real estate taxes will be
186) If a property owner owns more than 10 units, security deposits must be kept
187) What is one reason that carbon monoxide could be called a sneaky toxin?
188) Local real estate developments, such as a new subdivision, will likely impact ______ the most.
189) A duplex produces a monthly gross rental income of $1,800. The GRM an appraiser extracts from the local market is 125. Calculate the property’s estimated value.
190) Real estate, plus all of the interest, benefits, and rights included in ownership, is also known as ______.
191) What’s typically used to prove there are no encroachments on the property?
192) When people are treated differently because they have an accent, were born in another country, or are married to someone from a specific part of the world, this falls under discrimination based on ______.
193) Real property rights include ______.
194) What does the income approach to value rely on when valuing single-family and two- to four-unit properties?
195) A wet environment with little air circulation can ______.
196) An ______ is an addition to an existing sales contract and can be added without changing other terms already agreed upon in the contract.
197) Agatha has helped her client, Rufus, complete the ______, which documents Rufus’s purchase offer to the seller for the property he is interested in buying.
198) Amy has entered into a specialty contract (also known as a contract under seal) with another party. In Maryland, if Amy discovers that there has been a contract breach, how long does she have to sue the other party?
199) Which of the following provides everything a lender wants to know to value the property as collateral for a loan?
200) Jenny and her friend, Kali, go out to lunch. Afterward, they pay the bill. Their agreement to pay for the food they were served is what type of contract?
201) For income-producing properties, how is rent prorated at closing?
202) Janine wants to meet with her potential buyer clients face-to-face in her office. What’s her reason for doing this?
203) Which term refers to a permitted deviation from land use for a purpose that, under the current zoning restrictions, is prohibited and causes the property owner unnecessary hardship?
204) What’s the term used in real estate to describe when personal property is attached to real property, thereby making it a fixture?
205) Which of the following will appear on the closing statement?
206) Down the Road Brokerage has an in-house transaction situation and has appointed one of its licensees to represent the buyer client and one to represent the seller client. The two licensees are acting as what type of agents?
207) Archie signs a contract to buy Pam’s home. The deal eventually closes, but Pam fails to hand over the home’s keys to Archie. A week passes, and Archie files a lawsuit in an attempt to force Pam to give him the keys. This is an example of ________.
208) A licensee stating, “This is a dream home with the best views in town,” is an example of ______.
209) Federal and state fair housing laws prohibit activities that are ___________________.
210) What happens when a married couple who own a property as tenants by the entirety divorce?
211) The mishandling of escrow funds can result in _____________________.
212) Five siblings enter into a contract to buy a vacation property. The siblings get into a dispute, resulting in two of them backing out of the deal. This leads to a termination of the original contract. Three of the siblings then enter into a new contract to buy the property. This is an example of ________.
213) Manny has a client who wants to purchase a commercial building. Manny doesn’t have any experience negotiating commercial purchases. Which action should Manny take to demonstrate his good faith and most ethical behavior toward his client?
214) Which of the following is true about market allocation?
215) A buyer representation agreement is similar to which document used when representing a seller?
216) What’s a promissory note?
217) Which agency enforces fair housing laws?
218) Which of these items go in the seller’s credit column and the buyer’s debit column?
219) When must the consent for dual agency be reaffirmed by the parties to the transaction?
220) Which of the following is true about depreciation schedules?
221) Regardless of whether a seller elects to complete the property condition disclosure or disclaimer, what must the seller disclose?
222) What’s the amount a lender charges for the use of its money?
223) Joe and Emma Parsons begin informally working with their neighbor, Kyle, a real estate licensee, to find a bigger house. The parties have not signed any agreements or discussed the arrangements. This is an example of a (n) __________ agency agreement.
224) What type of listing agreement offers the most protection to the broker?
225) Can a seller withdraw a listing before the broker spends time and money?
226) The seller cannot cancel a listing with a broker once the broker has…..
227) In addition to showing the property, locating a buyer/tenant, communicating terms, promoting features and terms, and assisting in negotiations, what other responsibility does a listing agent have once the listing agreement has been signed?
228) The listing agent must ________________________ of items in the listing agreement
229) If a listing agent fails to verify that the parties who have signed the listing agreement are the actual persons who hold the title to the property, he/she may increase……
230) Who enforces the National Do Not Call Registry?
231) Are brokerage companies required to have a Do Not Call policy (even if they do not engage in cold calling)
232) How often must a brokerage company update their Do Not Call list?
233) What is the penalty for calling someone on the Do Not Call Registry?
234) Which of the following would NOT terminate a listing?
235) When a property is sold by a licensee other than the listing broker, who would the seller pay the commission to in an exclusive right to sell listing?
236) The difference between an exclusive agency and an exclusive right to sell listing is
237) What is the primary purpose of a listing agreement?
238) What is the key job of the agent?
239) Which of the following is not in violation of the CAN-SPAM Act?
240) How frequently must companies access and update the Do-Not-Call Registry?
241) The CAN-SPAM Act is federal regulation governing
242) Which of the following are the marketing responsibilities of the seller?
243) An arrangement in which brokers pool their listings and all commissions are then divided between the listing broker and the selling broker is called what?
244) What is an “extender clause”?
245) Which of the following is a feature of an open listing?
246) The failure to perform provisions of a contract without a legal excuse is known as what?
247) An agency could be terminated by all EXCEPT which of these circumstances?
248) How long does a buyer have to cancel a contract if they decide not to complete the purchase of a timeshare?
249) Where is a complaint against a licensee filed?
250) Which of the following is a difference between a limited service agent and an independent contractor?
251) Two designated agents, Mitch and Mickey, represent the buyer and seller in a single transaction, respectively. What else do you know about the agency situation?
252) What type of agency exists when a buyer’s agent is also the listing agent for the same property?
253) Rick, a builder, is using two properties as collateral for a loan. This is an example of a(n) ______ loan.
254) A duplex produces a month gross rental income of $1,800. The GRM an appraiser extracts from the local market is 125. Calculate the property’s estimated value.
255) Fiona and her husband, Ed, have just entered their first-ever agency agreement with their new agent, Ken. The couple is a little nervous, but they like the idea that they have something in writing that explains both their agent’s responsibilities and what they’re expected to do as part of the relationship agreement. Life is good. What type of agency exists between Ken and his clients.
256) Under which type of buyer agency agreement does a buyer receive the most representation from a single agent?
257) Which of these items go into the seller’s credit column and the buyers debit column?
258) Which of the following financing types involved the sale of personal property with the real property?
259) Gertie and Frank both have alzheimer’s disease. They fall in love in a disabled home and get married by signing a marriage certificate. This is an example of a _________ contract.
260) You have found the perfect home for Lucy and she is ready to make an offer. The Home was built in 1938. Who is responsible for scheduling & paying for the home’s lead inspection?
261) With which type of commercial lease does the tenant pay some or all expenses?
262) What type of listing agreement will offer most service by their listing agent and still give them this option?
263) In which of the following situations can an agent represent a customer in a real estate purchase?
264) The cost approach to finding an appraised value measures _________.
265) The earth’s surface, extending downward to the center of the earth and upward to infinity, including permanently-attatched natural objects is called ________.
266) Ownership is a right in the bundle of rights. Which of the following is considered a from of ownership?
267) Which of these may be covered by a builder-backed home warranty?
268) Jay’s new loan to purchase a property includes the sellers existing mortgage. This type of loan is called a _______ loan.
269) Lacey is preparing a sales contract for her buyer clients, and it’s time to fill in the amount of earnest money they’re going to offer. Which of the following statements is true regarding who determines the earnest money amount?
270) Cracks, holes, or rotten areas on a soffit are common _________ issues.
271) The Equal Credit Opportunity Act (ECOA) is also known as ________.
272) What’s a land contract?
273) Which of the following is true about VA loans?
274) Kris has made an offer on Lincolin’s townhome. However, she’s offered no earnest money. If lincoln accepts her offer, is it binding?
275) Sheila and Vickie are sisters who enter into a contract to buy a vacation property. The sisters get into a dispute, and Vickie no longer wants any part of the deal. However, Sheila talks her younger brother Joe into replacing Vickie on the contract. Vickie agrees to the substitution. This is an example of __________.
276) The landlord generally pays taxes, maintenance, and insurance with which type of lease?
277) For an antitrust violation to occur, which element must be present?
278) Substitution of an original party to a contract with a new party, or substitution of an original contract with a new contract.
279) What is the ratio of annual before-tax cash flow to the amount of cash a consumer has invested called?
280) If there are questions regarding the exact property description, which of the following is recommended?
281) Jasper has a new listing, and he appoints Esther as his sub-agent. Esther brings Julie, a buyer customer, to the transaction, and Julie buys Jasper’s listing. What’s true about the agency relationships in this situation?
282) Which of the following is true regarding an appraiser’s three approaches to value?
283) Kat is an investor and uses an FHA loan to purchase a duplex. She never occupies the property but instead rents it out. This is ______.
284) Which of the following is a contract between a seller and a buyer to transfer title to real property?
285) Which municipal agency grants special use permits?
286) How is general property tax calculated?
287) Tax assessors determine property values for each property within the assessor’s taxing unit. Which of the following is a taxing unit?
288) Your investor client has asked you to place a low-ball offer on his behalf. How might you convince a seller to accept?
289) Compared to working without a buyer agency agreement, a buyer who works under a buyer agency ____________.
a. Receives a higher level of service
290) Which of these is a written description of a blueprint?
291) Investors come in all shapes and sizes. Some may only be looking for someone to find them deals. Others may want someone to show properties and submit offers. What question should you ask to determine what type of investor you’re working with?
292) You’re working with buyers who have found their dream home, but it’s almost more than they can afford. When the appraisal comes in, it’s lower than the agreed-upon sales price. Now what?
293) Let’s say you have an investor with an NOI (net operating income) of $40,000 and a debt service of $30,000. What is your investor’s debt service ratio?
294) Why is a building’s “envelope” an important consideration in energy efficiency?
295) Regulating and protecting places and objects that have special character, historical, and aesthetic interest, is the responsibility of which municipal agency?
296) If the builder or owner of a new condominium building wants to change the price of all of the units, or all the two-bedroom units, what must the builder/owner do?
297) Which of the following is not an encumbrance, but a temporary right to enter the land or use property belonging to another for a specific purpose?
298) Which of the following is a written outline of the sales transaction often referred to as an offer to purchase or a purchase offer?
299) Energy efficient windows, weather stripping and ___________ are areas homeowners should consider when trying to eliminate heat loss/gain.
300) Doris needs to renew her real estate license for the first time, and she’s already completed 20.5 hours of continuing education. How many additional hours of CE does she need to complete?
301) DOS Regulation 175.23 requires brokers to maintain ______ for a period of ______, including the amount of commission paid for each transaction.
302) The duty of confidentiality survives agency unless the former client is found guilty of fraud or ______.
303) A seller you’re working with still owes $50,000 on his mortgage but wants to net $20,000 after the mortgage and 7% commission are paid. What is the minimum for which the house must sell?
304) Which of the following is a percentage of market value and is the amount of property value to which the tax rate is applied?
305) You have a client who has an investment property valued at $400,000. Annual cap rates are 8%. What can your client expect in net operating income?
306) Which document allows a prospective buyer the right to reserve a specific unit, which may or may not be under construction?
307) What is one drawback of sub-agency from a listing broker’s standpoint?
308) Ralph is a borrower obtaining an FHA loan from Happy Bank to finance his mortgage. Who is the mortgagor in this scenario?
309) PITI stands for principal, interest, taxes, and _____.
310) Which approach to value used by appraisers relies on the sales price of comparable properties to help determine the adjusted market price?
311) Some sensitive individuals can end up in the hospital because of chemicals used in carpet and other manufacturing materials used in remodeling or new construction. What’s the cause of this danger?
312) New licensee Cara wants to avoid accidentally engaging in unauthorized practice of law when she’s helping clients fill in contracts. What’s the best way for her to do this?
313) Which of the following is a true statement about cooperatives?
314) A ______ is the component of a septic system that is generally made of gravel or sand and naturally filters wastewater.
315) Janice is a listing agent assisting the Chens with the sale of their home. What is one of Janice’s duties?
316) Which of the following statements is true regarding federal fair housing law?
317) Real estate licensees currently enjoy the unique privilege of retaining their independent contractor status for IRS purposes, despite the fact that ____________.
318) For a taxpayer wanting to use a Small Claims Assessment Review (SCAR), which of the following is true?
319) Maury, a landlord, has decided to sell Elm Street Apartments. As you know, sale of the property does not affect the lease of the tenant. What are Maury’s legal obligations to the current tenants?
320) For which of the following properties is the cost approach most likely to be used?
321) Which of the following is a potential drawback to a real property exchange?
322) What generally happens when a tenant moves out of a rent-controlled apartment?
323) Chris used the VA guaranteed loan program to purchase a home five years ago. He now wants to sell that house and buy a new one. Is Chris allowed to use the VA loan program a second time?
324) If an agency policy indicates that licensees will have traditional buyer or seller agency relationships with their clients, the agency relationship is with ________.
325) What does a firewall do?
326) As an insurer’s condition for issuing an errors and omissions policy, what should brokers be prepared to do?
327) Dean is an experienced licensee whose career has focused on such things as mineral, oil, gas, and water rights, and hunting and gaming licenses. Based on this, you can deduce that Dean’s real estate niche is in which of the following?
328) Adam has been showing condos to his childhood friend Steve, even though Steve hasn’t signed an agency agreement. Unbeknownst to Adam, Steve contacted the listing agent for a condo he liked and told him he wanted to submit an offer. The listing agent wrote it up, the seller accepted the offer, and Steve became the proud owner of a new condo. Is Adam owed a commission?
329) Agent Magda’s new clients are clutter bugs. Before she photographs their home, Magda should:
330) The purpose of the employee and independent contractor agreements is to _________________.
331) The sellers in a transaction ask to have an extra week after the scheduled closing date to stay in the home. How is this handled on TAR form RF 401 Purchase and Sale Agreement?
332) The listing broker’s compensation can be either a percentage of the sales price, or what?
333) ______ occurs when the parties can’t legally or practically do what they’ve agreed upon due to circumstances beyond their control.
334) Investors call investing in this type of property “dead money.”
335) Risk is an inherent part of real estate activities. this is why________ is recommended for all licensees
336) According to the NAR Code of Ethics and Standards of Practice preamble, “REALTORS® should recognize that the interests of the nation and its citizens require the ______.”
337) An _____ ____ may be for any amount agreed to by the parties.
338) Complaint forms submitted to TREC must be filled out completely and include supporting documentation. What will happen next?
339) The legal concept of parens patriae gives which state position the authority to sue on behalf of citizens?
340) In counties governed by the Uniform Residential Landlord and Tenant Act (URLTA), which of the four types of lease termination would result in the landlord needing a court order to take action against the tenant?
341) What would make a ‘Choose Your Neighbor’ letter an allowable form of advertising a property for sale?
342) How do license laws promote professional competence?
343) Why must a seller disclose the presence of an underground storage tank?
344) All of the following would impact list price EXCEPT ________.
345) Prior to closing on the property, Monica substituted her daughter’s name, Melanie, as the buyer. Although Melanie is now listed as the buyer, Monica isn’t released from her contractual obligations. What is this scenario an example of?
346) What’s the purpose of the buyer pre-qualification letter?
347) Where can a licensee report an antitrust violation?
348) Wayne is a licensee and would like to update his advertising. What must he be sure to include on any advertising?
349) Before you sign an exclusive right to sell agreement with a seller, what must you do?
350) Alice has signed a back-up contract with Harry, the seller. Upon what does their agreement depend?
351) Using the term REALTOR® when not authorized to do so is an example of ________.
352) Which document provides details about the costs of the transaction and is provided to borrowers no fewer than three days prior to closing?
353) Kelsey and Jerrod have a housing ratio of 30% and a total debt obligation of 41%. Their credit score is 640. Do they meet the underwriting requirements for an FHA loan?
354) Bart is an independent contractor. That means that his managing broker, Lee, has the right to ______.
355) The risk identification process for a brokerage firm involves identifying what?
356) Often, errors and omissions insurance providers will require a brokerage to have ______.
357) Brian has just finished completing his loan application and has gathered supporting documentation needed to determine whether the application will be approved. Which of these parties best describes who Brian is?
358) For which of the following acts might a broker be subject to disciplinary action?
359) On Thursday, Angie decided to accept Harry’s counteroffer for the purchase of his house. She signed the counteroffer and placed it in the mail. On Friday, Harry decided that he had asked too low a price for the house, so he faxed Angie stating that the counteroffer was withdrawn. On Saturday, Harry received Angie’s acceptance in the mail. Under the mailbox rule, which of the following is true?
360) All of these are typical tasks that an unlicensed real estate assistant may do, except:
361) Which of these factors would tend to lower overall property values most in a single-family residential neighborhood?
362) One of the legal obligations of a seller’s agent is providing a copy of the seller’s transfer disclosure statement to:
363) Which California law prohibits discrimination by business establishments in general?
364) Which of the following actions by a broker would be illegal under the federal Fair Housing Act?
365) Once a listing agreement has been signed:
366) A buyer makes and signs a written offer. The seller writes in one small change to the offer and signs it. This document is known as:
367) To successfully sue a seller for a commission owed, a broker who worked under a nonexclusive listing must be able to prove that she was:
368) An apartment rental application contains a question about marital status. This question is:
369) A seller has accepted another offer, but your client doesn’t want to give up. Even now, she can submit an offer to the seller, called a:
370) When an agent is preparing a competitive market analysis, the adjusted sales price of a comparable property:
371) The buyer receives the transfer disclosure statement in the mail. How many days does she have in which to rescind the purchase agreement?
372) Which of these is a fundamental difference between the natural hazard disclosure statement and the real property transfer disclosure statement?
373) A buyer submitted an offer with a deposit on a property on June 1. The offer included the condition that it must be accepted within 48 hours. The sellers were out of town, however, and could not be contacted until June 6. At that point, the sellers eagerly signed and returned the purchase agreement; but now the buyer says he does not want the property any longer and is demanding the return of his deposit. A court would rule that:
374) A listing agreement with a property description that is not a complete legal description:
375) Most listing contracts authorize a broker to:
376) Which of the following methods of advertising is legal?
377) An agent is preparing a CMA and evaluating possible comparable sales. Which of the following characteristics would most likely make a property unsuitable for use as a comparable?
378) What is the minimum time limit for employment in an exclusive listing agreement?
379) The buyer’s offer states that the deposit check will be held by the broker uncashed until the seller has accepted the offer. The broker may comply with these instructions:
380) A real estate agent who is acting as a buyer’s agent:
381) Which kind of listing agreement requires the seller to pay a commission to her broker if the property is sold, unless the seller sells the property herself?
382) A real estate salesperson is often approached by home buyers of a particular race. His usual practice is to show them homes in neighborhoods where most of the residents are the same race as the buyers. He avoids showing these buyers properties in integrated areas. This is called:
383) Broker Ray is closely acquainted with the Subdivision Heights neighborhood in his town. Over the years, Ray has made it a practice to contact homeowners in person and also to send them quarterly mailings. This method of finding listings is known as:
384) A homeowner preparing his home for sale should do all of the following, except:
385) Which of the following does California law require a real estate agent to do in a residential transaction?
386) In order to be enforceable, an exclusive listing must be signed by:
387) A broker, in dealing with the public, may not:
388) If a seller uses an open listing, she may employ several brokers:
389) A prospective buyer has submitted an offer to Broker Randolph that meets the asking price. As Randolph is on his way out of the office to present the offer to the seller, one of Randolph’s salespersons brings in another offer on the same property that is for $5,000 less. Randolph should:
390) Which of the following is equivalent to value in exchange?
391) Two types of value that are often contrasted are subjective value and:
392) A licensee acting as a finder (or middleman) won’t owe agency duties to either party, as long as:
393) Which of the following would be considered a design deficiency in newer, high-end construction?
394) Which of these is not a way in which an agency can be created?
395) Two properties, each worth $50,000, are combined into one larger parcel that has a value of $120,000. This increase in value is called:
396) A salesperson shows his broker an offer for one of his listings that has a good faith deposit in the form of a promissory note. The broker should tell the salesperson that:
397) An agency relationship is best created through:
398) Before making a listing presentation, an agent should:
399) The seller’s agent is most likely to be liable for damages to a buyer if she:
400) The best indication of a property’s value comes from:
401) According to the Americans With Disabilities Act:
402) After several months of trying to sell a property, the seller’s agent decided to purchase it herself. She must:
403) When does an offer to purchase become a binding contract?
404) A seller’s agent intends to give part of his commission to the buyer. The agent:
405) A listing broker presents his client with a full-price offer from a ready, willing, and able buyer. The seller refuses the offer and tells the broker it’s because the buyer is black. The buyer makes an offer on another property. Which of these steps could the broker take?
406) When performing a competitive market analysis, agents typically make numerous adjustments to the comparables’ prices. This is because:
407) Young buyers with limited funds are typically:
408) Agent Mary notices that a competitor’s listing is about to expire. She should:
409) Two brokers in a small community felt that another local broker was unethical and dishonest. They agreed not to send him any referral business, and they encouraged other area brokers to follow their lead. They could be accused of:
410) Which of the following can be affected by conditions of sale?
411) Your buyer client, Percy, needs to obtain financing to buy his dream house. What’s his first step?
412) A sloping hearth is a common _____ issue.
413) In what type of market is pricing a home below market value an especially good strategy?
414) In a real estate transaction in which you represent the seller, your duty to other parties is ______________________.
415) The Costa-Hawkins Rental Housing Act…
416) Shawna is reviewing Brian’s loan application. She needs to verify the assets he’s claimed, specifically his bank account balances. Which form should she have him complete?
417) Real property ownership may offer significant tax advantages. Which one of the following is a potential advantage?
418) What’s the primary difference between reproduction cost and replacement cost?
419) When a lender charges a borrower more than the highest allowable interest rate, it is called
420) How many days do purchasers have from the date they signed a contract to notify the seller their intent to cancel the contract?
421) Which of the following statements may be true of self-employed individuals seeking to obtain a home loan?
422) In the event a broker-in-charge becomes medically incapacitated or dies, an associated licensee may be permitted to act as the broker-in-charge for up to?
423) Katherine purchased a home in South Carolina for $415,000. What’s the county portion of the deed recording fee for this transaction?
424) Glenda is engaged as a seller’s agent. Gary, the seller, hasn’t consented to dual agency. A prospective buyer would like Glenda’s assistance in drafting an offer to present to Gary. Can Glenda do this?
425) Is there ever a situations where it is legal to receive compensation?
426) Who is the person in charge of carrying out the terms of the trust
427) The trustee is the person in charge of carrying out the terms of the trust
428) Certain properties are exempt from fair housing law requirements. Which of the following properties is NOT exempt?
429) When a property owner intentionally transfers property to another party, it’s called voluntary alienation.
430) When operating under a power of attorney concerning the transfer of real property, who may sign as the grantor?
431) What’s another term for voluntary conveyance?
432) In a real estate transaction, whom may a licensee represent?
433) Which entity has the authority to represent the state and citizens of the state in antitrust cases?
434) Percy and Maxwell have formed a team within their real estate brokerage firm. They’ve been tossing around some different names to use. Which of these would be permitted?
435) Which of the following describes commingling?
436) For a deed to be valid, which two elements are required?
437) Shelley is selling her condo in the city and moving to a house in the suburbs. Her agent gave her a list of things she must do to prepare for the sale, including completing the residential property disclosure statement. When should this statement be provided to buyers?
438) You’re working with a couple who state they definitely must sell at a price of $275,000. They’re more concerned about getting that price than the amount of commission they’ll pay, and they say you can keep any amount the sale brings in that’s more than $275,000. What type of listing is this?
439) The enforcement of antitrust laws, investigation into possible violations, and subsequent prosecution of violations are handled by the __________.
440) The lender, the loan applicant, and the _______ all complete parts of the request for verification of deposit form.
441) There are many versions of property management agreements, although all management agreements should include _______.
442) The purpose of the ______ is to promote fairness and transparency for mortgages and other financial products and services through education, enforcement, and research.
443) Which of the following, based on the abstract of title, is used to create the title commitment before title insurance is issued?
444) Which type of appraisals may only be done by certified general appraisers?
445) What type of agreement opens the door to possible dual agency situations, since it creates an agency relationship between a buyer and all affiliates of a brokerage?
446) Which of the following is true regarding the definition of agency?
447) Jared, a seller, has found his own buyer and wants to terminate his exclusive right-to-sell listing agreement with Sue, his listing broker. Can he do so without penalty?
448) Kristin has been unable to make her mortgage payments. Her property went to auction, but the lender didn’t accept the high bid. What stage of the foreclosure process is this property now in?
449) Which of the following is the most common type of buyer representation agreement?
450) You’ve just signed a listing with a new seller client. What’s true about electronic delivery of written notice or contract forms to your seller?
451) Your buyers love the 1891 Victorian they have under contract, but they want to get both the water and the paint tested as soon as possible. What are they testing for in both water and paint?
452) Which of these is a NOT a reason why agency disclosure is mandated?
453) After a life estate holder dies and ownership rights have either reverted to the original owner or have been transferred to a remainderman, with what type of estate is the property held?
454) What’s the relationship between the Loan Estimate and the Closing Disclosure?
455) Which of the following is a legitimate and legal way that an exclusive right-to-sell listing agreement may terminate without the seller owing a commission?
456) Which group ensures that community growth is controlled and orderly?
457) Derrick was thrilled to find out that the land he purchased includes several small caves. He’s been spelunking for about three years and looks forward to exploring the caves on weekends. Which real property right allows him to do so?
458) When assigning a contract, what should the assignor ensure is permitted in the purchase contract?
459) Remembering the acronym PITI can help borrowers recall what makes up their __________
460) Which type of buyer tends to look for a home with less space, with a similar or better. quality of living?
461) Stan wants Vince to list his house. What does Stan need to do to have Vince represent him in all marketing and negotiation tasks?
462) In a deed, this person is referred to as “the party of the second part.”
463) A VA loan __________.
464) What’s used to calculate the housing debt-to-income ratio and total-debt-to-income ratio?
465) Broker Alex learns that his friend Joann is frustrated with the broker who listed her home. Alex encourages Joann to break her existing agency agreement and sign with him instead. This violation is an example of ____________.
466) An organization with many investors who jointly participate in a real estate investment and must adhere to the rules and regulations of the Securities and Exchange Commission is a _____________.
467) A seller would like to be represented by you, and only you. What type of agency do you recommend?
468) Sherman owes $225,000 on his home. It’s currently worth $240,000. How much equity does Sherman have in his home?
469) Roger just discovered that his loan includes a hidden balloon payment, so now he must ___________.
470) If the monthly property tax rate is $74.15 and the closing is on April 30, what will the seller owe at closing? Assume a statutory calendar and that the seller hasn’t made any payments. Round to the nearest cent.
471) Which document given before closing provides an estimate of the costs a buyer is likely to pay at a settlement?
472) The earth’s surface, extending downward to the center of the earth and upward to infinity, including permanently-attached natural objects, is called ____________.
473) You’re obligated to preserve all the confidential information you receive from a seller client. This obligation ___________
474) What is the definition of an appraisal?
475) Jasmine has signed a lease that details what she can and can’t do on the property. If she wants to refer back to her lease, where would she look for this information?
476) Mary Lou owns property in a rural part of the state. She was recently approached by a representative of a company that would like to drill for oil on a piece of her property. What type of lease is the representative likely discussing with Mary Lou?
477) Which of the following property managers must have a license?
478) Your clients, Charles and Jane Bingley, are first time homebuyers who don’t have a 20% down payment. What would be the best thing for you to tell them?
479) A period of stagnation in real estate when no one is buying and no one is selling is known as ______________.
480) Your assistant, Brady, often answers clients questions about offers and negotiation. What do we know about Brady?
481) What are the two categories of comparison when evaluating comparable to a subject property in the market comparison approach?
482) A home sells for $225,000. Per the listing agreement, the total commission is 7% of the sales price. After half of that goes to the buyer’s agent’s managing broker Devin, the other half of it goes to Sheila, the buyer’s agent. But the seller’s agent, Kiko, also has an agreement with her brokerage for a 70/30 split, with the “70” going to her. How much is Kiko’s commission?
483) Which clause is used in a security instrument to protect the original note holder if the security instrument is sold and the borrower subsequently defaults?
484) Which of the following options describes a method by which a licensee can determine an appropriate listing price rage?
485) What’s the purpose of the Intestate Land Sales Full Disclosure Act?
486) When preparing the sales contract, when is it acceptable for a licensee who is not an attorney to offer legal advice to the client?
487) A(n) __________ is a set of guidelines for ethical conduct
488) Barney defaulted on his mortgage, and his lender is preparing to foreclose. Which type of foreclosure is typically used when a mortgage is used as the security instrument?
489) Homeowners can take several actions related to pest infestations, but which of the following actions should bereft to licensed pest management professionals?
490) Lease types, space planning, area design, and building layout are especially important for a property manager who’s working with a __________.
491) What important seller responsibility is documented in the listing agreement?
492) What regulations or regulatory authority identifies sites that have hazardous substances, and requires the responsible parties to clean them up?
493) What type of agency agreement creates a relationship between a buyer and a single licensee rather than between a buyer and a brokerage?
494) With which approach to value doe the appraiser analyze a property’s ability to earn future income?
495) Which of the following careers in real estate requires extensive experience in real estate investment and sales?
496) Switches that are warm to the touch, damaged panels, and lights that dim or flicker when other appliances are in use can be signs of what sort of problem?
497) Which statement best describes the method used to reconcile the value found for a property from the tree appraisal approaches?
498) Loans available through the Farm Service Agency have which of the following characteristics?
499) Which federal lending act was introduced to combat lending discrimination in law-and moderate-income neighborhoods?
500) Marvin purchase the right to use a resort unit for two weeks every year, although he doesn’t own the property itself. What kind of timeshare is this?
501) How is the Supreme Court case of Brown vs. Board of Education significant in the way fair housing laws are implemented today?
502) In the sales comparison approach, the appropriateness of the various comparable sales in relationship to the subject is considered in a process known as ________, where certain factors may be given more weight.
503) What’s the deprecation schedule for a residential income-producing property?
504) The _______ isn’t used in states that were part of the original 13 colonies, or in Texas, West Virginia, and Kentucky.
505) Marco is anxious to buy a home and is willing to waive the appraisal contingency. Do you still need to provide him with a Buyer’s Inspection Advisory?
506) What, according to RESPA, must the lender give to the borrower disclosing whether or not they intend to transfer the loan to another lender?
507) At which point in the process does scheduling a photographer take place?
508) Mello-Roos was enacted in 1982 to provide for non-specific _____________ improvements.
509) Why should a buyer ask the type and age of heating and cooling systems?
510) Matt’s sellers have a very valuable collection of artwork displayed in their home. It perfectly showcases various rooms in the home. What advice should Matt provide to his sellers when preparing to sell the home?
511) Which of the following is a common chimney or fireplace problem?
512) Real estate is a _____________, unlike stocks or bonds.
513) Net operating income ‒ ______________ = cash flow
514) This generation was born between the mid 1920s and mid 1940s. Only 55% of those in this generation financed their purchase, which is a far cry from today’s actions.
515) Gross potential rental income ‒ ______________ = effective gross income
516) Which of the following statements about the signed sales contract is true?
517) What’s it called when a property is owned by the bank after failing to receive an acceptable bid at foreclosure?
518) Net operating income can be found in the _____________ statement that the property manager puts together for the property owner.
519) Three categories exist for this classification of a worker, who is defined in statute under tax law as an independent contractor and not an employee: direct seller, licensed real estate agent, and a certain companion sitter. This worker’s status is ________.
520) A complaint was filed against Barb, a licensee. A hearing was held, and GREC issued a/an __________, which resulted in a small fine and the requirement for Barb to take some additional education.
521) Which of the following is the property of the broker even if secured by the licensee, as provided for in the independent contractor agreement?
522) Which of the following best describes what Ginnie Mae does in the secondary mortgage market?
523) Gia is acting as a seller agent. Which of these is a duty she must perform?
524) A home sells for $225,000. Per the listing agreement, the agent is paid 7% of the sales price, with half of that amount paid to the buyer’s agent. The seller’s agent also has an agreement with her brokerage for a 70/30 split. How much is the agent’s commission?
525) In a condominium building, what pays for the exterior maintenance, insurance and payroll for building personnel, and interior maintenance, trash pick-up, landscaping and snow removal, and building insurance?
526) What does each component of the 80/10/10 ratio represent in a split—or piggyback—loan?
527) Who’s responsible for testing private wells for water safety?
528) The exemption to the Fair Housing Act that would normally apply is moot when a real estate agent represents _______.
529) Brenda and Joe have 20% cash to put down toward the purchase of their home, and they have great credit. What might be their best option for getting a traditional mortgage loan?
530) If you engage in commingling, what have you done?
531) A buyer is purchasing a property with a fair market value of $94,675, which has an assessed value of $37,870. If the mill rate is 30, what will the buyer likely pay annually in taxes?
532) Which of these would likely be covered by a builder’s home warranty?
533) Sally prefers the predictability of a mortgage payment that doesn’t change during the repayment. Which type of loan offers this feature?
534) Ed Smith is a sole proprietor using the trade name “Ed Knows Real Estate.” Under what name may Ed legally conduct business?
535) What are the loans the Federal Home Loan Bank makes to member banks called?
536) Jemma’s name, address, and license status appear on all forms of advertising, whether she is making the advertisement herself or not. Why would her information appear on advertisements, even when she didn’t specifically place the ad?
537) Bambi is buying a property as in a land sales contract. Due to her financial interest in the property, she retains equitable title, while the seller retains _______.
538) Which of the following is true of retainer fees?
539) What’s Fannie Mae’s mission?
540) A property that’s been converted to natural gas may actually have which issue?
541) The Uniform Vendor and Purchaser Risk Act specifies the rights and duties that apply when a property is _________________.
542) Jenny and Sam are engaged to be married. Any real estate either owns at the time of marriage will remain that person’s property in severalty, while any property attained after the wedding belongs to both of them equally. This describes what type of ownership?
543) What is an acceleration clause in a mortgage?
544) When using the market comparison approach, the comparable property’s relationship to the subject property is a process known as __________.
545) Maria, a qualifying broker, established a new trust account at her firm. By law, within how many days does she have to notify the commission that she established a new trust account?
546) When reviewing her mortgage documents, Reva learns that should she miss scheduled payments, fail to pay property taxes, or allow the property to fall into disrepair, she may be in ______.
547) Rachel and Nick are selling their home. Before the property is sold, a title search is conducted to determine if there are any ______.
548) A landlord discovers that his married tenants are expecting their first child. He wouldn’t have rented to the couple had he known they were going to have children, so he serves them with an eviction notice and tells them they must be out in 30 days. The landlord is guilty of ______.
549) What’s the broadest estate a person can have in real estate?
550) When is a title search conducted?
551) If you work for a property management company that manages property for more than one owner, what must you have in order to collect rent and perform other real estate functions?
552) What is a tax levy?
553) For safety reasons, you should not allow strangers to see_____________.
554) What are the two primary differences between the security deed and the deed of trust?
555) What type of taxation does a limited liability company enjoy?
556) A contract in which only one party is bound is ______.
557) How can lapsed homeowner’s insurance lead to default of the mortgage loan?
558) Elisa and Simone signed an agreement to list Simone’s house for sale. After the contract was signed, Simone lost her job, and her father, George, offered to help Simone out by paying Elisa’s commission. The buyer’s agent, Carl, also reduced his commission by a quarter percent to help Simone out. Who is Elisa’s client?
559) Raul has his broker’s license and has been appointed by the governor to serve as a GREC member. Which of the following criteria made him eligible to be a broker member of the commission?
560) _________ is when one party didn’t meet the terms of the contract in the specified time frame, and is now being required to do exactly what was agreed to in the contract.
561) In addition to being properly executed (signed), what’s another requirement for recording a document?
562) Edwin has been a successful real estate professional for many years. After starting off listing residential and commercial properties, Edwin now lists properties that involve light and heavy manufacturing, warehousing, and distribution. Of the six categories of real estate, what types of properties does Edwin handle?
563) A buyer’s offer calls you with a great offer for your seller client. What is the best next step?
564) The ECOA Valuations Rule requires disclosure of valuation data to the buyers who pay for the appraisal. Which of the following is included in the new rule?
565) Which of the following is a non-ownership interest in land by someone other than the owner that gives that person the right to access or use the property?
566) What is the purpose of the agency disclosure?
567) What went into effect in 2009 as an addendum to carbon monoxide regulations?
568) Which of the following is true about easements appurtenant?
569) When assessing taxes, the percentage of market value (or full market value) is called
570) Your builder client, Jeffrey, is building a subdivision. HUD require his walkways to be built ___________.
571) When may informed consent for dual agency be obtained?
572) Which of the following is the term used for the authorization for how tax funds are spent and collected?
573) Phil, who is a wholesaler, is ready to sell a property. What will his sales strategy be?
574) Which agency upholds federal, state and local public health laws, regulating drinking water safety, septic system approval and certain waste water treatment approval?
575) A lease with option to buy is a good home buying solution for some buyers. Which of these statements about a lease with option to buy is FALSE?
576) What does liability insurance cover?
577) If step one for the borrower is a pre-qualification letter and step two is applying for the loan, what’s step three?
578) When a borrower first obtains a mortgage, which portion of PITI receives most of the mortgage payment?
579) Which of the following describes a claim or charge against a property by someone other than the property’s owner?
580) To have a clear idea of what you want to achieve in a transaction, what should you focus on?
581) To compute the tax rate, each taxing authority takes the total funds required for the upcoming fiscal year and ____________________.
582) CCIM, SIOR, CPM, BOMA and ISCS are accreditation programs for licensees who represent ______ investors.
583) ______ conveys the emotional content of words. Angry, disrespectful, or inappropriate words directed at you may be indicators of a threat.
584) Mary Jane owns a building in which electrical service is supplied to the entire building through a utility-owned meter, and the cost of the service is shared among the building’s tenants. What type of system does she have?
585) What’s the intent of the expense stop in a lease escalation clause?
586) Which of the following is the first wooden member of the structure from the ground up that is used as the nailing surface for the floor system?
587) Broker Alex learns that his friend Joann is frustrated with the broker who listed her home. Alex encourages Joann to break her existing agency agreement and sign with him instead. This violation is an example of ______.
588) Under what circumstances is the seller obligated to pay the listing agent a commission if the agent is working under an exclusive agency agreement?
589) Which individual takes a look at a potential borrower’s application and verifies things like their employment and financial information, then analyzes their credit report as well as the appraisal report on the property?
590) When a buyer purchases a cooperative unit to live in, what types of shares are owned?
591) The components that make up a borrower’s mortgage payment can best be remembered using which acronym?
592) Which of the following is paid in cash (or check) up-front by the buyer?
593) Who should ensure that all deadlines are met, all contingencies are cleared, and all paperwork is fully executed and delivered before closing?
594) This homeowners policy, commonly known as rental insurance, provides coverage to tenants for the loss of personal property.
595) The sponsor of a condominium project must submit the offering plan to the Attorney General for approval. The sponsor also appoints the board of mangers as well as the managing agent for the condominium owners. At what point must the sponsor relinquish control of the board of managers?
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1) What are the loans the Federal Home Loan Bank makes to member banks called?
2) After reviewing the final page of the Closing Disclosure, Gloria is concerned that she’s being charged excessive points and fees. Page five provides her options for making a credit-related complaint to the ______.
3) When figuring income taxes, licensees should figure the amount they are required to pay based on gross income minus ______.
4) Mutual savings banks are concentrated mostly in the ______ U.S.
5) What feature is a key benefit of the VA guaranteed loan for veterans?
6) Which of the following is a legitimate business deduction for income tax purposes for a real estate licensee?
7) Clark is selling his home to Myrna. Clark will retain the title to the property until Myrna has paid the loan in full. What type of financing is used in this transaction?
8) What is hypothecation?
9) Who’s required to sign a promissory note?
10) Brenda and Joe have 20% cash to put down toward the purchase of their home, and they have great credit. What might be their best option for getting a traditional mortgage loan?
11) A buyer defaulted on the mortgage and the lender is preparing to foreclose. Which type of foreclosure is typically used when a mortgage is used as the security instrument?
12) Regarding active real estate investments, which statement is true?
13) Which factor that influences value addresses the ease with which the property can be conveyed to another?
14) Jay’s new loan to purchase a property includes the seller’s existing mortgage. What type of loan is this?
15) SRT Mortgage has a borrower who has fallen behind on her mortgage. Rather than go through a foreclosure, the borrower is attempting to sell the property. An offer came in for less than the borrower’s loan balance and closing costs, but for more than what the lender feels it’d get at a foreclosure sale, so it approves the purchase. What is this an example of?
16) The borrower’s closing costs and down payment have changed from the Loan Estimate, and the seller’s credit has increased. Which section on page three of the Closing Disclosure can help borrowers identify information that has changed from the Loan Estimate?
17) With an interest-only payment plan, ______.
18) The lender, the loan applicant, and the ______ all complete parts of the request for verification of employment form.
19) Lenders require that borrowers purchase and maintain adequate _____, which is usually bundled into their monthly PITI payment.
20) What effect do high interest rates have on borrowing?
21) Which type of title search method only goes back as far as when the last title search was performed and assumes the last search was done accurately, legally, and that any issues were resolved?
22) Which entity sets conforming loan limits?
23) Which factor that influences value focuses on the number of properties available?
24) With which approach to value does the appraiser analyze a property’s ability to earn future income?
25) Which of the following types of loans issued in California may be protected from a deficiency judgment?
26) What does the cost approach to finding an appraised value measure?
27) The Kimballs and their lender have agreed to a loan modification. How is the loan modification documented?
28) Which of the following statements is true regarding conventional loans?
29) Which of the following describes the Federal Reserve’s open-market operations?
30) What’s the purpose of the loan application?
31) Ruby is selling her home. The buyer, who’s not a veteran, would like to assume Ruby’s VA loan. Is this allowed?
32) What’s the acronym for the legislation that eliminates illegal referral fees among settlement service providers?
33) Which type of loan provides short-term financing for the purpose of developing improvements on vacant land or on land that has improvements, but will soon have more?
34) Eliza wanted her financial affairs kept private after her death. How could she best do this?
35) Which of the following would disqualify someone from obtaining an MLO endorsement?
36) The total amount that’s treated as home acquisition debt for tax purposes has to be less than ______ for married couples filing jointly.
37) Why is it common for lenders to sell mortgages on the secondary market?
38) What’s the purpose of a short sale?
39) The Loan Estimate allows consumers to compare loans using both the APR and the _______.
40) Which type of property takes 27.5 years to completely depreciate?
41) Lenders require that borrowers purchase and maintain adequate _____, which is usually bundled into their monthly PITI payment.
42) A defect on a title that can be monetary or physical is called an ______.
43) An investment strategy that focuses on looking for smaller multi-family properties, fixing them up, and renting them out describes which of the following?
44) Which of the following is used to protect the buyer from title defects after closing?
45) What is the ability to pay off liens against a property until a foreclosure sale is held?
46) If a property’s value decreases over time, it has experienced ______.
47) Bambi is buying a property on an installment sales contract. Due to her financial interest in the property, she retains equitable title. What does the seller retain?
48) How does the Federal Housing Administration help prospective homeowners?
49) Which of the following outcomes is most likely if the Fed decreases reserve requirements?
50) Cash flow in a personal finance system requires personal savings goals to be funded from the personal checking account rather than the business checking account. Why?
51) Which of the following is indicative of the limited partnership method of real estate investment?
52) What type of loan may be used if the buyer is obtaining seller financing?
53) Jack and Edith purchase a home using a loan from their bank. Their mortgage creates a(n) ______ lien on the property they’ve purchased.
54) Which of the following items is something a lender is prohibited from doing if the lender wants to write qualified mortgages?
55) A buyer is shopping for a mortgage loan and are attracted to the below-market interest rate offered for the first year of an adjustable rate mortgage. What’s this type of rate called?
56) For whose estate would a living trust be most beneficial?
57) What’s NOT true about a California real estate licensee who obtains an MLO endorsement?
58) Which one of the following statements is true about the FHA Energy Efficient Mortgage program?
59) Which approach to value used by appraisers relies on the sales price of comparable properties to help determine the adjusted market price?
60) Sharon, a new real estate licensee, is tracking all of her spending for one month. What’s the likely purpose of this exercise?
61) A line of credit that’s based on a percentage of the equity a person has in a property and which can be drawn upon for a number of years is known as a ______.
62) As a new licensee, it’s easy to make an inadvertent mistake when representing a client. What type of insurance would cover you if this happened?
63) A seller you’re working with still owes $50,000 on his mortgage but wants to net $20,000 after the mortgage and 7% commission are paid. What is the minimum for which the house must sell?
64) According to the IRS, a foreclosure is viewed as a ______.
65) Which of the following are phases of the real estate cycle?
66) When evaluating the income listed on a loan application, what will the lender consider?
67) The “first in time” rule of liens refers to lien priority according to ______.
68) Kirk is buying a home using an FHA loan. Which of the following would meet the FHA requirements for Kirk’s down payment?
69) Which of the following did the Dodd-Frank Act accomplish?
70) Ruth and Paul live in a rural area where emergency services, health care, and even neighbors take time and travel to access. They know their house could use some renovation to make it safer for their kids. What government program offers loans and grants to assist people like Ruth and Paul?
71) Which of these items is required for a promissory note to be a valid instrument?
72) Dawn and John own a home together, but they’re getting a divorce. They agree that John will keep the house and assume the loan they signed together. Will the alienation clause in their security document prevent the assumption?
73) Which business structure is the simplest to form, yet involves the most liability?
74) The purpose of the ______ is to promote fairness and transparency for mortgages and other financial products and services through education, enforcement, and research.
75) What’s another term for voluntary conveyance back to the lender?
76) Can Jeremy, a licensee, receive a referral fee for sending his buyer client to Ajax Title?
77) Sheila is selling her 15-acre property. She’s willing to carry back the loan for the buyer, Persephone, and she asks her real estate agent, Nick, to arrange the financing deal. Under what California law must Nick, the arranger of credit, provide disclosures about the financing?
78) A $300,000 property depreciated in value by 3%. What’s its new value?
79) Very few foreign lenders provide loans for real estate purchases in the U.S. Countries that had banks that issued real estate loans were ______, Taiwan, and the U.K.
80) Which type of agreement is used for large commercial real estate projects?
81) Which of the following items must be included in the security instrument used for a real estate transaction?
82) The ______ balances the powers of federal agencies by requiring them to follow specific processes and procedures, such as providing for public participation in rulemaking.
83) The ______ were enacted to address the effects of the subprime mortgage crisis, spur economic activity, and increase accountability in government spending.
84) How common is judicial foreclosure?
85) Matt is a loan officer with Kentucky State Bank and has an MLO endorsement. Which act governs his MLO-related activities?
86) The Real Estate Settlement Procedures Act is a consumer protection statute that ______.
87) Shawna is reviewing Brian’s loan application. She needs to verify the assets he’s claimed, specifically his bank account balances. Which form should she have him complete?
88) Which statement is true about a purchase money mortgage?
89) Which of the following is the primary goal for a consumer when reviewing a Loan Estimate?
90) Which of these is the better debt service ratio?
91) Which of the following conditions contributed to the 2007 financial crisis?
92) Which law places certain requirements on an individual who works for a borrower, for compensation to stop or delay a foreclosure sale?
93) The California ______ requires mortgage loan originators to give clients a specific disclosure statement and includes restrictions on how much they can charge for their loan origination or loan brokering services.
94) Arthur does not have an MLO endorsement. Legally, which of these actions can he perform?
95) Per the Real Estate Settlement Procedures Act (RESPA), licensees may not receive or give referral fees or finder fees (or anything of value) from/to whom?
96) What does a lender use a credit score to determine?
97) In a hypothecation scenario, the borrower owns the property and has possession rights. What does the lender have?
98) What California legislation prohibits arbitrary discrimination by businesses that offer services to the public?
99) Which U.S. Department of Veterans Affairs program allows a veteran to refinance a conventional loan to a VA loan?
100) Which secondary market institution seeks to provide credit to rural communities?
101) (ANSWERS will be revealed with proper subscription)
102) –00CeshopFinance00FINAL2
103) What is HUD’s stated mission?
104) A property is uninhabitable in its current state. What effect will its utility have on the value?
105) The components that make up a borrower’s mortgage payment can best be remembered using which acronym?
106) Which of these is an example of usury?
107) Which of these is considered an MLO activity?
108) What is a judicial foreclosure?
109) Bank failures and the loss of depositors’ funds occurred during the Great Depression. This led to the creation of which agency?
110) Who typically performs a CMA or BPO?
111) A buyer with a $250,000 loan has a monthly principal and interest payment of $2,042.71. If $1,145.83 is interest, what is the new principal balance after the first payment is applied?
112) 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. How many payments will he make over the course of the loan?
113) Which of the following best describes a property’s assessed value?
114) Which of the following factors affect an adjustable rate mortgage?
115) Which of the following is a likely effect when the discount window is open?
116) Which of the following best describes the purpose of the Truth in Lending Act?
117) Which type of loan is a temporary loan often used by buyers who have not yet closed on their prior property?
118) Which act prohibits lenders from continuing foreclosure proceedings if a borrower has an application for a loan modification or other alternative pending?
119) Why is it important to identify the values that are important to you when you’re developing a plan for your personal finances?
120) What real estate investment strategy involves an investor purchasing many properties and reselling them immediately for a small profit?
121) Why don’t mortgage brokers service loans beyond placement?
122) Which of the following statements is true about the FHA Section 251 ARM?
123) Which of these is a function of the U.S. Treasury?
124) Chris used the VA guaranteed loan program to purchase a home five years ago. He now wants to sell that house and buy a new one. Is Chris allowed to use the VA loan program a second time?
125) What does the FHLB do?
126) What is a lifetime cap, as it relates to an adjustable rate mortgage?
127) Which of these is a factor in calculating a consumer’s credit score?
128) A buyer has a 15-year, $250,000 loan with a 5.5% interest rate. How much of the monthly payment is interest?
129) What type of lien against a property will be paid first in the event of a foreclosure?
130) Which of the following items are ongoing business expenses that a licensee should expect to pay?
131) The FHA 203(b) loan is a mortgage option for homebuyers who ______.
132) Which of the following best describes what Ginnie Mae does in the secondary mortgage market?
133) Which of these describes an implicit goal of a personal financial plan?
134) Which of the following is a good description of a home equity loan?
135) Which type of business structure shelters personal assets in the event of a lawsuit against the business owner?
136) Brenda is developing her personal financial plan. One of the first things she does is to identify her personal values, which she then connects to her budget. Why?
137) Kelsey and Jerrod have a housing ratio of 30% and a total debt obligation of 41%. Their credit score is 640. Do they meet the underwriting requirements for an FHA loan?
138) Which of the following government-sponsored enterprises purchases loans from agricultural lenders and sells financial instruments backed by these loans?
139) Your client exchanged one property for a similar property and did not have to pay capital gains taxes that year. How did he do this?
140) Why would some national lenders have state-level compliance issues?
141) Which of the following financing types involves the sale of personal property with the real property?
142) Which type of loan is made from the equity in the home?
143) When you start your personal finance system, you’ll take these steps: identify current expenses, estimate income, set financial goals, ______, and set up accounts.
144) Which of these is a recommended method for a licensee to estimate ongoing business expenses?
145) The lender is required to provide the consumer with a Loan Estimate form within what time period of application for a loan?
146) This statement is part of a promissory note attached to a security instrument: “I have the right to make payments of Principal at any time before they are due.” What’s the name of the clause where this statement is included?
147) In California, what type of foreclosure process is used if the lender seeks to pursue a deficiency judgment?
148) With a no down payment VA loan, the mortgage can’t be more than the amount of the ______.
149) What is an initial cap, as it relates to an adjustable rate mortgage?
150) Which of the following statements is true about start-up costs for a licensee?
151) As a licensee, when might you seek out the help of a certified public accountant?
152) Cash flow in a good personal financial plan requires money allocated to personal financial goals to be distributed in which way?
153) Which statement is true about a package mortgage?
154) Which of the following best describes a residential mortgage loan as it relates to the MLO endorsement?
155) What does the income approach to value rely on when valuing single-family and two- to four-unit properties?
156) What’s one of the main differences between a traditional mortgage loan and an interim loan?
157) Which entity guarantees government loans?
158) Brad and Chrissie decided to make some improvements to their house, so they went to the lender they used for their first mortgage and got a home equity loan. The new loan agreement includes a cross-default clause. What does that mean?
— Extra random (FinanceClass part3) —
1) Annual MIP can be removed from an FHA loan by _____.
2) What’s an example of an inquiry a consumer initiated that may appear on a credit score?
3) What is one of the qualifying standards for a VA-guaranteed loan?
4) A buyer is purchasing a ppt for $500k. His down pymnt of $50k and is financing the rest. What’s the amount of the loan origination fee if the lender charges one-and-a-half points?
5) The fewer ppts on the market, the greater the scarcity. What’s the effect on prices?
6) A loan with borrow options that can be long term with periodic adjustments or short term with more frequent adjustments to the rate is a(n) ___ mortgage.
7) What describes a Housing Choice Vouchers?
8) Lucy is a mortgage banker. Her business is regulated by ____.
9) A loan made from a homeowner’s equity where funds are drawn over time and the bank gains corresponding ppt ownership is called a ______.
10) Which entity generally acts in the secondary market?
11) Your clients, the Nguyens, have signed a contract for deed to purchase a ppt. What rights do the Nguyens receive?
12) What’s true about buydowns with a VA loan?
13) In ’08, as a response to the ’07 financial crisis, the Federal Housing Finance Agency began acting as conservator over which institutions?
14) What’s a reason a seller might consider selling his ppt through an installment plan instead of a traditional sale?
15) What falls under the definition of ‘dwelling’ according to Senate Bill 36?
16) What does the lump sum payment at the end of an interest-only mortgage loan consist of?
17) Brenda’s go-to financial expert has no fiduciary responsibility to her. This is because she’s working with a(n) ____.
18) During which phase of the RE cycle does a RE professional have the most impact?
19) How many hours of continuing edu must a RE licensee complete each year to renew their MLO endorsement?
20) Which entity buys loans primarily through thrifts?
21) Rather than be foreclosed on, Jarod turned his deed over to his bank. This is called a _____.
22) Elijah has identified his personal values, estimated his income, and analyzed his current expenses. With this info, he’s ready to ______.
23) Carla is a licensee who uses a personal financial system that recommends that all of her commission checks be deposited into her ____ account.
24) Payment history, age of accounts, credit usage, types of accounts, and ___________ are factors considered in calculating a credit score.
25) Lic Lynn has several accounts set up as part of her personal financial plan to help her manage cash flow. She’s allocated 10% of each commission check to business expenses, 15% to taxes, 8% to her retirement fund, 12% to various savings goals, and the rest goes to her living expenses. When she received a check, how does she direct the funds?
26) You’re estimating your annual income and find that the average sale price of a home in the area you’ll be working is $300,000. You determine your expected commission is 2% and you plan to make six transactions in the year. Assume there is no broker’s split. What will your estimated income for the year be?
27) When obtaining a mortgage to purchase a home, the borrower uses the ppt as ______.
28) What describes the federal funds rate?
29) What must a prudent lender do with the info received on a loan app?
30) What is the current value of a ppt that was purchased two years ago for $260k, assuming an appreciation rate of 2%?
31) The ____ was a response to the practice of redlining and was enacted in 1977.
32) PMI may be required on conventional loans where the loan-to-value ratio is in excess of ___%
33) The funding fee on a VA loan is waived when ____.
34) The doc that describes the loan amount and the terms for repaying and is attached to a security instrument is called the ____.
35) Your client, Shelby, a veteran using a VA loan to finance his purchase, just learned that the CRV came in lower than the sales price. But no problem: Shelby’s bro is willing to loan him the difference. If the loan is approved ____.
36) What best describes the state of the market during the over-supply phase of the real estate cycle?
37) Who needs to obtain a mort loan originator endorsement and register with the Nationwide Mortgage Licensing System and Registry?
38) What would most likely be found in the “potentially negative items” section of a credit report?
39) What is the secondary mortgage market made up of?
40) Millie and Jerry are purchasing a home using their VA loan benefit. The sale price on the home they buy is $320k, with 100% financing. Assuming that Jerry has a typical level of entitlement, how much of their loan does the VA guarantee?
41) What is the economic impact of mortgage loan payments?
42) A ppt valued at $1 mill is returning a net income of $85,000. What’s its cap rate?
43) Which type of RE investment trust derives its income from the rent or sale of ppt and interest dividends?
44) Lydia put the minimum 3.5% down on her $210k home. She’ll have to pay a MIP. What type of loan does Lydia have?
45) In which phase of the RE market cycle would you expect to see ppt under valued and a large supply of homes on the market?
46) Danny and Wendy recently relocated to California. They are buying a 3 bed home in an estab neighborhood where they look forward to raising a family. Their RE agent, Brunhilda, thinks that their income, which is on the low side, and the ppt could make them eligible for ___, which would offer reduced, fixed interest rates on a loan.
47) Kristoff got a bit behind on his mort and missed several pymnts. He and his lender devised a schedule that gives Kristoff an opportunity to make up those delinquent pymnts. What is this an example of?
48) In order to analyze your spending habits, you should track ___.
49) The amount of the ___ a veteran must pay depends on factors, such as military status, down pymnt amnt, and whether the veteran’s entitlement is being used for the first time or a subsequent time.
50) The amount of the ___ a veteran must pay depends on factors, such as military status, down payment, and whether the veteran’s entitlement is being used for the first time or a subsequent time.
51) Analyzing spending habits allows you to evaluate the impact of a purchase in terms of ____.
52) Cheyenne is selling the family farm on an installment contract. What is one advantage of selling the farm this way?
53) A buyer is purchasing a pt for $400k. his lender’s loan-to-value ratio is 80%. How much is the buyer financing?
54) Several actions take place on the secondary mort market. What is a common activity?
55) A calculation that looks at all recurring (or installment) debt – such as monthly mort, car, credit, and loan pymnts – as a percentage of the borrower’s monthly gross income, is called ____.
56) When does the mort insurance requirement requirement end for a borrower with a VA loan?
57) Bobby is completing a residential loan app. On the app, he lists his liabilities. What are liabilities?
58) What type of loans issued in CA may be protected from a deficiency judgement?
59) ____ is a legal action that liquidates or restructures debt. It can have a long-lasting negative impact on the borrower’s ability to obtain financing.
60) Tyler is a developer who renovates a long-abandoned warehouse in a low-income neighborhood into a community center, complete with space for after-school programs, a daycare, and a gym. Tyler is able to complete the reno with a loan funded by a local bank. Which act req financial institutions to make credit available for this type of development?
61) An increase in ppt value is ____.
62) What is a potential concern of a buyer who’s entering into a contact for deed with a seller?
63) Which RE finance instrument includes the promise to repay and the security instrument within the same document?
64) What are ppt taxes in a mort pymnt?
65) An ARM usually offers an initial interest rate that’s ___ a fixed rate mortgage for a period of time.
66) Tina is purchasing a home that appraised for $10k more than the sales price. On which figure will the lender base the loan-to-value ratio?
67) Wendy has been approved for her first mort. The lender advertised a 4.6% interest rate. She’s nervous about the terms and fees. What info is the lender required to provide?
68) Stacey’s lengthy military service makes her uniquely eligible for a(n) ____.
69) Cassie is helping her buyer client, Gus. As they discuss preparations for closing, she cautions Gus, “make sure you review the Closing Disclosure as soon as you receive it and ____”
70) The Farm-Credit System is _____.
71) Maxine is purchasing a small craft shop, including the underlying real estate. She applies for a commercial loan from her federally insured bank to complete the purchase. Is Maxine’s transaction covered by the RESPA
72) What’s the purpose of CA’s Covered Loan Law?
73) In which phase of the RE market would you expect to see unemployment increasing, prices falling, and foreclosures on the rise?
74) For which of these properties would gross rent multiplier be calculated?
75) Because of the Mortgage Disclosure Improvement Act, the only advance fee that a creditor can charge to a consumer before providing required loan disclosures is ___.
76) Because of the Secure and Fair Enforcement for Mortgage Licensing Act, borrowers can determine if mortgage loan originator is ___.
77) The ___ account is a recommended component of a personal financial plan that should be started as early as possible and contributed to throughout your working life.
78) The two most common insolvency methods put in place when a bank fails are the purchase and assumption method and the ___ method.
79) The planned transfer of money from your business checking account to your personal checking account to your savings accounts is called ____.
80) Closing costs are itemized on page two of the Closing Disclosure and all amount are ___.
81) A borrower who has received a certificate of eligibility will qualify for a VA loan ____.
82) A borrower sued a foreclosure consultant for violating the Mortgage Foreclosure Consultant Law. The borrower may receive actual damages, legal fees, and in severe cases ____.
83) Which doc is used to estab the path and proof of ownership?
84) Your client has a VA loan and wants to refinance to a lower rate. What’s the simplest option?
85) What best describes the CA short sale addendum?
86) When you develop your financial plan, you should start by ____.
87) Your business is booming, and you’d really like someone else to maintain your financial records. The best person for this role is ___.
88) In calculating a PITI mort payment, the annual taxes and insurance are divided by ___, and added to the monthly principal and interest payment to make up the total monthly payment.
89) If the annual taxes on a ppt are $1,000, how much is paid monthly?
90) With this type of loan, personal ppt is included with the real ppt in the sale. It’s commonly seen in commercial real estate, but you may also see this in the sale of furnished condos
91) The lender, the employer, and the ___ all complete parts of the request for verification of employment form.
92) What is a potential ramification for the seller if a short sale is completed?
93) A homeowner is behind on his mortgage. He’s decided to try to sell the ppt and is working with his lender to do so. He owes $315k on his loan balance and closing closts. He has an offer for $300k, which the lender approves. What is this an example of?
94) Melanie is a buyer who has agreed to purchase Stan’s ppt using a contract for deed. Who holds legal title to the ppr during the term of the loan?
95) One alternative to foreclosure is a voluntary conveyance of ___.
96) There are a lot more sellers than buyers in the current market. How will this demand influence value?
97) Because of the funding fee required for a VA loan, a borrower with no down payment funds saved should ____.
98) Craig’s loan is secured by a mortgage. Who holds legal title when this security instrument is used?
99) What is it called when the borrower and lender work together to restructure work together to restructure the terms of a home loan?
100) Which type of real estate investment trust involves both residential and commercial ppts?
101) Which of these are essential elements of personal financial responsibility?
102) By stabilizing and improving the mortgage market, the FHA helped to build ____.
103) Albert wants to sell his house to his cousin, who’s willing to assume the loan. What clause in Albert’s mortgage requires him to obtain the lender’s permission to do this?
104) The annual MIP is recalculated each year using ___.
105) Describe an equity real estate investment trust?
106) Which of the following is a difference between mortgage brokers and mortgage bankers?
107) The lender, the loan applicant, and the _______ all complete parts of the request for verification of deposit form.
108) Which of the following statements best describes a mortgage broker?
109) What are reserve requirements?
110) Which type of lien is a specific lien?
111) How many approaches to value do appraisers generally use?
112) Which clause is used in a security instrument to protect the original note holder if the security instrument is sold and the borrower subsequently defaults?
113) Why do lenders care so much about property condition?
114) Your client, Bruno, is an investor. He is in the process of selling a fourplex and mentions to you that he hates the idea of the capital gains tax he’ll be subject to. What should you tell him?
115) What is liquidity?
116) On a VA loan, the funding fee ______.
117) What U.S. Department of Veterans Affairs program assists Native Americans in financing the purchase, construction, or improvement of homes on federal trust land?
118) What are mortgage-backed securities?
119) Kylie has a small farm where she grows vegetables and sells her produce to restaurants. She want to expand it, and needs a loan to purchase some additional acreage. What makes it unlikely that most lenders will want to offer Kylie the loan that she needs?
120) On the borrower’s Closing Disclosure, the interest rate _______.
121) What are debentures?
122) ______ is directly influenced by construction of new homes, conversion of existing properties to residences, and construction costs.
123) The Federal Housing Administration helps prospective homeowners by ______.
124) In what phase of the real estate cycle do foreclosures rise and home prices fall?
125) What information does Schedule B-2 of a title commitment provide?
126) Which of the following made mortgages attractive investments?
127) “Private companies created by the U.S. Congress to make borrowing easier and more cost effective” describes ______.
128) Which of these factors is NOT used to define money?
129) A good personal financial system requires ______ reviews of performance so that you can modify it as needed.
130) Juanita invests in mortgage-backed securities. What is the likely impact on her as an investor when mortgage interest rates rise?
131) The Federal Housing Administration, Government National Mortgage Association, and the Office of Fair Housing and Equal Opportunity all operate under ______.
132) What is a periodic cap, as it relates to an adjustable rate mortgage?
133) Which of the following statements is true about the FHA annual mortgage insurance premium?
134) What is a qualified mortgage?
135) What does Section 8 of RESPA prohibit?
136) M&R Lending has borrowers who are in default. Those borrowers have listed their house for sale and must obtain M&R’s approval before they can accept any offers. What is this an example of?
137) When does recaptured depreciation apply?
138) Which type of business structure is the simplest for an independent contractor licensee to start?
139) Beatriz is employed by Regional Bank & Trust. When working with mortgage clients, she discusses a range of products Regional Bank & Trust offers. What is Beatriz?
140) Paul uses a personal finance system that allocates a percentage of income to his monthly expenses and his savings goals. If his total monthly expenses equal $3,000 and his income one month is only $2,000, how much will he put toward a savings goal to which he’s allocated 2%?
141) Which of these jobs does the Bureau of Engraving and Printing do?
142) How are real estate investment trusts sold?
143) What program does the U.S. Department of Veterans Affairs offer to assist Native Americans in financing the purchase, construction, or improvement of homes on federal trust land?
144) Which of the following practices would be considered predatory lending?
145) What’s a certified opinion or estimate of value of a particular property as of a particular date?
146) Assisting in the purchase of repossessed homes, ensuring that all clients receive fair and equitable treatment, and recommending FHA financing to a client are all ways that a licensee makes use of ______.
147) Christopher has questions about information shown on the Loan Estimate he received from his lender. What should he do?
148) The SAFE Act is intended to help consumers select which professionals, knowing that they are honest and competent?
149) Rachel is a real estate licensee. At what point should she begin funding her tax savings account to pay her quarterly estimated tax?
150) What’s another term for voluntary conveyance?
151) Why do life insurance companies use participation financing for larger projects?
152) When you start your personal finance system, you’ll take these steps: identify current expenses, estimate income, set financial goals, ______, and set up accounts.
153) Barry, a contractor, is performing work involving an FHA 203(k) loan. When will he get paid for his work?
154) Which of these jobs does the U.S. Mint do?
155) Mindy is reviewing Becky’s loan application. She needs to verify the work and salary information. Which form should Mindy have Becky complete?
156) What instrument is used to record the conversion to an ARM from a fixed rate of interest?
157) Some foreign lenders provide loans for real estate purchases in the U.S., but not many! Countries that had banks that issued real estate loans were Canada, Taiwan, and ______.
158) The Johnsons are shopping for a mortgage loan and are attracted to the below-market interest rate offered for the first year of an adjustable rate mortgage. What’s this type of rate called?
159) Manny is obtaining a home loan. He goes to his local bank and talks with Deborah, who discusses the lending products the bank offers. What is Deborah?
160) Which of these activities has a far-reaching effect on the country’s overall economy and is the largest indicator of the country’s economic health?
161) Adrian purchased a house for $220,000, financing $200,000 using a 30-year conventional mortgage at 4% interest. His monthly principal and interest payment is $955. The annual property taxes are $1,400, and the combined annual insurance premium is $900. What’s Adrian’s PITI payment each month?
162) What federal executive-level agency works to implement goals that ensure affordable housing, protect consumers, and build inclusive communities in the U.S.?
163) Completing a residential loan application requires providing information about the borrower, the loan being applied for, and the ________.
164) On a VA loan, the ______ helps the lender determine if the value of the property makes it suitable for use as collateral on the loan.
165) Melvina has a Home Equity Conversion Mortgage. She feels secure because she knows that ______.
166) A borrower makes the same monthly mortgage payment for the entire term of the loan. At the end of the loan period, all of the interest and principal is paid off. What type of loan is this?
167) Planning, construction, buying/selling, and moving are four of the five new-home construction phases or activities that impact the economy. What’s the fifth?
168) Seller concessions on a VA loan ______.
169) The primary FHA loan program used to purchase a one- to four-family home is ______ of the National Housing Act.
170) What is HUD’s stated mission?
171) Which of these is a requirement for a property purchased using the VA guaranteed loan program?
172) The amount of the funding fee for a VA loan is calculated as ______.
173) Which are phases of the real estate cycle?
174) The U.S. Department of Veterans Affairs offers special programs, which can be used to adapt housing to accommodate the disability, to veterans or military members with permanent and total service-connected disabilities. What are these programs?
175) What’s the most likely reason borrowers would choose a private loan company?
176) Which entity guarantees loans?
177) What’s Fannie Mae’s mission?
178) The FHA sets limits on how much of a loan it will insure based on the ______.
179) With a no down payment VA loan, the mortgage can’t be more than the amount of the ______.
180) Dylan is in default on her mortgage. She decides to hand over the deed to her property rather than face foreclosure proceedings. This is an example of ______.
181) Bernie works for Quickwell Lending and accesses several lenders to find a loan product that works best for his clients. What is Bernie?
182) According to the PMI Act of 1998, at what percentage of equity position does personal mortgage insurance cancel for homeowners?
183) The Bakers are selling their home, and they’ve picked the perfect time. The market isn’t saturated with a lot of properties for sale, but there are many buyers looking to make a purchase. What type of market is this?
184) What entity oversees Fannie Mae and Freddie Mac, and regulates the Federal Home Loan Bank?
185) Which term describes the action taken to force a sale of real property encumbered by a lien?
186) Shelly received Brian’s loan application and provided him with a loan estimate. Who does Shelly most likely represent?
187) Which clause in a mortgage or deed of trust describes the borrower actions that constitute default and allow the lender to make the debt immediately due and payable?
188) Which of the following best explains the alternative foreclosure types, such as foreclosure by writ of entry?
189) ______ is directly influenced by factors such as employment levels and wages, interest rates, population changes, confidence in the market, and availability of loans.
190) How are real estate investment trusts sold?
191) Traditionally, what represents supply and demand in the real estate market?
192) Why might a lender request a property survey in addition to a title search?
193) What’s true about the funding fee on a VA loan?
194) In accordance with RESPA prohibitions, rebates may only be offered by licensees to transaction parties, if _____.
195) Which of the following helps to protect the appraisal process from outside undue influence?
196) Which of the following statements is true about the practice of seeking deficiency judgments?
197) What makes credit unions so competitive with large commercial banks?
198) What is the term used to describe a lien, encroachment, or other issue on a title?
199) Why might a buyer want to assume a loan?
200) Brendon is obtaining a loan to buy a home. When reviewing his loan documents, he sees one called a note and one called a mortgage. What is the role of the note?
201) What might happen if borrowers miss scheduled mortgage payments, fail to pay property taxes, or allow the property to fall into disrepair?
202) Which of the following statements about the secondary mortgage market is true?
203) What’s the purpose of a suit to quiet title?
204) Which of these actions represent a common interaction between the primary and secondary mortgage markets?
205) The purpose of the Truth in Lending Act (TILA) is to ______.
206) The question, “What’s the purpose of this appraisal?” can be answered by which step of the appraisal process?
207) Why don’t mortgage brokers service loans beyond placement?
208) The veteran’s certificate of eligibility describes ______.
209) The Kimballs have missed two mortgage payments and are working with their lender to modify their loan. What is the goal of a loan modification?
210) Which of the following is an example of a voluntary lien?
211) One of the ways that the FHA has stabilized and improved the mortgage market is through the introduction of ______.
212) Which institution was created by Congress as the Federal Home Loan Mortgage Corporation (FHLMC) in 1970?
213) Which of the following is a possible result of a community growing too little or not at all?
214) Which of the following statements best describes a mortgage banker?
215) For which of the following properties is the cost approach most likely to be used?
216) What is typically used to prove there are no encroachments on the property?
217) What type of agency exists because of the actions and behavior of the parties?
218) The Consumer Credit Protection Credit Act, which includes the Truth in Lending Act, is also known as _________________.
219) Patty is buying a three-bedroom mountain home. After applying for a loan, she received the Loan Estimate at least _______ business days before closing.
220) John wants to do a 1031 tax exchange with a property he just sold. How many days does he have to identify a new property for the exchange?
221) Juaquin is an appraiser. What purpose do Juaquin and other appraisers serve?
222) Conforming loan limits vary based on location and ______.
223) Which of the following is NOT part of the assumptions section of the Loan Estimate?
224) When consumers make a small down payment, borrow the remaining amount of the purchase price from a lender, and reap the rewards off of hte full investment value, they are demonstrating what concept?
225) What is the purpose of the request for verification of employment?
226) The Federal Housing Administration funds its mortgage insurance program ______.
227) With a straight mortgage, what type of payments are made up until the end of the loan term?
228) Melanie is a buyer who has agreed to purchase Stan’s property using a contract for deed. Who holds legal title to the property during the term of the loan?
229) Interest-only loans are a form of ______ buyer financing.
230) It’s possible for the adjustment period on an adjustable rate mortgage (ARM) to have ranges, such as three or ______ years apart.
231) Bindy received a loan based on the amount of equity she had in her house. She used this lump sum to fund her daughter’s college education. What type of loan did she get?
232) Which of the following best describes the state of the market during the recession phase of the real estate cycle?
233) The energy efficient mortgage program insured by the FHA requires an energy consultant to provide the lender with a report listing recommended modifications for energy efficiency, an estimate of the cost for each recommendation, and ______.
234) The FHA Energy Efficient Mortgage allows modifications such as solar panels as long as ______.
235) When the Torrens system is used to perform a title search, who acts as title guarantor in case a claim is filed?
236) Veterans who wish to use the Native American Direct Loan must ______ and their tribe must have a valid agreement with the VA to offer the program.
237) Jeremiah is preparing to begin the homebuying process. Which of these is an action he should take?
238) _______ are part of the loan-approval process and are responsible for completing a loan application and supplying supporting documentation.
239) Joe decided to borrow funds from his retirement account to fund the down payment on his new house. It’s now two years later and he lost his job. What is true about his pension plan?
240) Real estate professionals handle many documents related to real estate transactions. Which one of the items listed below is one of the most important in detecting mortgage fraud?
241) What information does Schedule B-1 of a title commitment provide?
242) Kara is a lender who is working with prospective buyer, Stan. What does Kara ask Sam to provide to show his work history and earning information?
243) Borrowers must list their assets when completing a residential loan application. What are assets?
244) Sam has a mortgage that has a static interest rate, but monthly payments that increase over time according to a set schedule. What type of mortgage does Sam have?
245) The Federal Housing Administration’s qualifying standards for a mortgage loan ______, but the mortgage insurance the FHA provides balances the risk for the lender.
246) Which of the following best describes the state of the market during the over supply phase of the real estate cycle?
247) The ______ tells the lender how much entitlement the veteran has available under the VA loan program.
248) Which party to the loan approval process is responsible for completing a loan application and supplying supporting documentation?
249) Which of the following describes amortized debt?
250) Which of the following is the best example of the economic principal of leveraging, as it applies to a real estate transaction?
251) Which of the following represents a potential concern when borrowing funds from a pension or retirement plan?
252) The characteristics of value include which of the following?
253) A mortgage banker gets paid through fees from ______ and servicing loans.
254) What is the formula for calculating the total housing ratio? / The formula for the total debt ratio is:
255) Maria is a borrower reviewing her Closing Disclosure. She notices a section under “Other Costs” with a number of fees that were not shown on her Loan Estimate, such as the commissions to the real estate brokers and the home inspection fee. Should Maria contact her lender about this issue?
256) Which of the following statements about the Torrens system is true?
257) What information does Schedule A of a title commitment provide?
258) Monty retired 10 years ago and would like to see the world, but his retirement account won’t support his desire to travel. Monty heard of a loan that would allow him to take advantage of the equity in his home by getting monthly payments from the bank by using his house as collateral. What is this type of loan called?
259) Which range of credit scores do most consumers fall into?
260) Which of the following contributed to the 2007 financial crisis?
261) Veterans who use the VA’s Specially Adapted Housing grant must ______.
262) Margo, a mother of three, is in the largest percentage of consumers with a score of _______. Margot’s tried unsuccessfully to get approved for loans, but she was issued a credit card that included many extra fees and required deposits.
263) Brandon’s home has been foreclosed on. He had an outstanding loan balance of $145,000, which he owed to his lender, XYZ Lending. There’s also a lien against the property recorded in 2014 for an unpaid student loan of $25,000, and a HELOC established in 2012 of $30,000, of which he’d used $10,000. If his foreclosure nets $150,000, how much will each creditor be paid?
264) Mike has had some financial problems and is considering borrowing from his retirement plan. Which of the following is a true statement?
265) Which of the following outcomes is most likely if the Fed increases reserve requirements?
266) Borrowers with which credit rating are considered subprime?
267) When Brenda applied to have her FHA loan refinanced under the Streamline Refinance program, one requirement of the loan was that ______.
268) The Martins are buying their first house and are a little nervous about whether they’ll be able to afford payments long term. Page four of their Closing Disclosure is of particular interest to them because it lists specific disclosures, such as escrow account information, with the purpose of ______.
269) Fannie Mae, Freddie Mac, and the Federal Home Loan Bank are examples of ______.
270) Which type of lien affects real and personal property?
271) Leading up to closing, who should ensure that all deadlines are being met, all contingencies are cleared, and all paperwork is fully executed and delivered?
272) Easements are a type of encumbrance that can affect a property. Which of the following is true about easements?
273) Eleanor is in the market for a home loan. She feels confident knowing that South Carolina’s _______ will protect her from predatory lending practices.
274) For income-producing properties, how is rent prorated at closing?
275) Co-ownership without inheritance rights is what kind of real property ownership?
276) Which act encourages fair, truthful, non-deceptive, and evidence-supported claims in advertising?
277) Jenny and her friend Kali went out to lunch. Afterward, they paid the bill. Their agreement to pay for the food they were served is what type of contract?
278) Of the following, who typically prepares the closing statement?
279) How can an investor roll over any gain realized in an investment property into another property and defer paying capital gains taxes?
280) The state claimed Sophia’s home under eminent domain. It appraised her property and offered to pay Sophia the appraised value for the home. What’s this process called?
281) The Real Estate Offer Rejection Form has been required by law in South Carolina since ________.
282) Who generally writes a broker’s price opinion?
283) In states without full disclosure requirements, whose responsibility is it to review disclosures, ask questions, and obtain a home inspection?
284) Your assistant, Brady, often answers client questions about offers and negotiation. What do we know about Brady?
285) Which document should be provided to borrowers no fewer than three days prior to closing?
286) What’s the best definition of a cooperating agent?
287) Which of the following is not a benefit of living in a PUD?
288) Which of these is an example of voluntary alienation?
289) With local land use, the stress placed on the community’s infrastructure is an example of ______.
290) Janice’s life tenant, Jacob, is currently living on her property. Once Jacob dies, Janice has arranged for the property to be given to the School for the Gifted. What interest does the School for the Gifted currently have?
291) Which of the following documents will show the buyer and seller which costs to pay at closing?
292) Jamie enters an agreement to buy Yolanda’s home. Per the agreement, Jamie promises to provide a $5,000 earnest money deposit, whereas Yolanda promises to sell her home to Jamie. These promises represent forms of ______, which is required to make the contract valid.
293) What’s a foreclosure?
294) What is the type of possession in which a tenant stays after the right to possess has terminated?
295) Darryl is an unlicensed personal assistant to Yvonne, a licensee. Yvonne is careful to direct his activities so he doesn’t do anything that would require a license. Why is she so careful about this?
296) Which of the following activities occurs before the closing meeting?
297) How do you decide which party you represent in a transaction?
298) Wayne conveys a property to Robbie until Robbie’s death, when the property is conveyed to Tiffany. What is this scenario an example of?
299) An appraiser is most likely to use the cost approach for which of the following properties?
300) Which document do property managers and the owners they represent sign to formalize the relationship?
301) This document is filed with a condominium building’s master deed and details such items as ownership meetings and common elements’ maintenance log.
302) Mark works at Farm and Country Bank, and has arranged an agricultural loan for Josh, a local organic farmer. Josh didn’t meet the bank’s normal underwriting standards, but Mark made the loan because he was able to arrange for a guarantee from ______.
303) You are calculating prorations. Which of the following items go into the seller’s credit column and the buyer’s debit column?
304) Calculate the total debt ratio based on the following information, assuming the lender does not consider any debt with 10 or fewer payments remaining: $1,500 condo payment; $100 monthly association fees; $150 monthly student loan payment; $300 car payment (with only four payments remaining); and a monthly gross income of $5,000.
305) Dual agent Barbara Park can only disclose Seller Carrie’s reason for moving if:
306) Cracks, holes, or rotten areas on a soffit are common ______ issues.
307) Frieda is practicing dual agency, and neither party seems to mind, even though she didn’t obtain informed consent. Is this legal?
308) If Mega Corporation owns real property, chances are it owns it in ______.
309) Cultivated crops are considered personal property even though they’re part of the soil, and they’re known as _______.
310) If Johnson Marketing’s capital gain on the sale of its business was $479,000, capital improvements were $227,000, and the adjusted basis in the property was $976,000, what was the sales price?
311) What is the purpose of a deed?
312) The Knolls are purchasing a property and are concerned about the title, so they want to have a title search performed. Who can perform a title search?
313) Benefits to an auction buyer or seller ______.
314) Which of the following auction properties would most likely be considered by a developer who wants to jump in and start building right away?
315) Licensee Grant is representing both the seller and the buyer in a transaction. What is the term for this type of agency?
316) ____________ have no restrictions on the types of real property they’re qualified to appraise.
317) What value principle assumes that if an identical property were sold recently, its sales price should be a good indicator of the value of the subject property?
318) Which of the following is the most thorough presentation of the appraiser’s solution to the appraisal problem?
319) Amperage is the amount of electricity flowing through a wire, and ______ is the amount of electrical pressure upon the wire.
320) Why are industrial lofts and warehouses often converted for residential or commercial uses?
321) Which of these best describes an appraiser’s typical work environment?
322) Species habitat, beauty, erosion control, and pollution treatment are all reasons that wetlands are ______.
323) Marissa, a buyer, asks you what she can do to prepare to buy. What should you tell her?
324) Under the Kentucky Property Management Agreement, how many days’ notice does an owner have to give an agent or broker regarding the contract’s early termination?
325) If an endangered species or wetlands exist on a site, which of the following is true?
326) A ___________ is qualified to appraise any one- to four-unit residential property, regardless of value or complexity, but isn’t qualified to appraise subdivisions.
327) Trent is at a(n) ______ auction, meaning that there’s a confidential minimum amount that will be accepted as the winning bid.
328) What’s a rehabilitation loan?
329) Which of the following statements about KREC’s one-time showing agreements is true?
330) What is a company checklist?
331) Denise is a real estate licensee performing a market analysis. She uses the Rule of Three. This means she selects three comparables _______.
332) Which type of depreciation is a loss in value due to defects in a structure’s design?
333) You’re obligated to preserve all the confidential information you receive from a seller client. This obligation ________.
334) The cost approach to finding an appraised value measures _______.
335) In the conveyance of real property after death, what trumps any terms specified in the deceased person’s will?
336) If there’s an overall change in market value, what type of adjustment can an appraiser use to show the overall effect of the change?
337) Suppose Aimee wants to plan ahead and take the same number of credit hours a year to meet her 48 hours of required post-licensing education during KREC’s stipulated time period for PLE. How many hours of PLE would she need to complete each year?
338) Investors looking at property in a depressed neighborhood may be anticipating the _________ phase of a real estate cycle.
339) Price levels, vacancy rates, new building permits, inventory rates, and sales volume are all _______.
340) How many anchor stores does a regional shopping center normally have?
341) The power of the state to claim property when the owner dies without a will and without locatable heirs or creditors is also known as ______.
342) What effect will a property’s utility have on the value if it’s currently uninhabitable?
343) Remembering the acronym PITI can help borrowers recall what makes up their ______.
344) Which of the following is a common problem with a foreclosure property purchase?
345) Careful handling of all funds is crucial to the success of a brokerage firm. Of special importance, however, is handling of ______.
346) The ______ model is used to value raw, vacant land when the highest and best use development divided into residential parcels.
347) Carla creates a trust to convey her assets to her children. Her brother, Alvin, is placed in charge of making sure the terms of the trust are carried out. In this example, Carla is the ________.
348) Why do appraisers gather and analyze information about a subject property’s neighborhood?
349) Legal permissibility, physical possibility, financial feasibility, and ______ are all considerations when determining highest and best use.
350) Why is poor weather or lackluster marketing a detriment to a seller on auction day?
351) The purpose of the Uniform Electronic Transaction Act (UETA) is to ____________.
352) Uh-oh. You failed to present an offer on behalf of your client in a timely manner. As a result, the seller accepted a lower offer from another buyer. You could be sued for ______.
353) Which of the following describes a legal description?
354) Annabelle loves convenience, especially when it comes to shopping. She wants to invest in a commercial property that’s about 72,000 square feet and offers a hair salon, a few small restaurants, and a dry cleaner for the people who live in the area. What type of retail space is Annabelle considering?
355) When a lender charges a borrower more than the highest allowable interest rate, it is called ______.
356) Your buyers have done all the research possible on a property and are excited that they have the winning bid on auction day. They then discover that they don’t really get the property. What’s the most likely reason?
357) What must you do to assist your clients with environmental issues?
358) What type of agency exists when a buyer’s broker is the listing agent for the same property?
359) Which type of exclusive brokerage agreement in Kentucky provides the highest service to a seller client and the most protection for the broker’s commission?
360) A residential income property has 10 units. Each apartment rents for $1,000 per month and has two bedrooms, a bathroom, a living room, and a kitchen. What’s the scheduled rent for this property on an annual per room basis?
361) An appraiser is performing an income-based appraisal on a commercial property. Which of these items would be shown as a fixed expense on the appraiser’s reconstructed operating statement?
362) In full seller disclosure states, whose responsibility is it to notify the seller of the seller’s duty to disclose all known material defects?
363) HVAC is an acronym for what?
364) Why does the sales comparison approach rely upon data from arm’s length sales?
365) Rick is obtaining a loan for a commercial property. What can he expect from the loan process?
366) Which of the following terms refers to the increase or decrease in land value that occurs when several parcels are combined into one large plot?
367) Which approach might an appraiser weigh more heavily while reconciling the appraisal value of a vacant lot?
368) Which of the following formulas is used with the index method to find the reproduction cost?
369) In a 1031 exchange, there are rules governed by Section 1031 of the Internal Revenue Code. The rules include _______________.
370) Which best describes a purchase money mortgage?
371) Britney is selling her bungalow on an installment contract. The buyer made payments dutifully for five years, but has not made any payments for more than a year. Which of the following is true?
372) Another term for a valuation is ______.
373) When using an amortization chart, you use the interest rate and the loan term to arrive at a number, such as 5.17808. Now what do you do?
374) The final page of the Closing Disclosure provides loan calculations that tell the consumer ______.
375) What’s TRID?
376) Monty retired 10 years ago and would like to see the world, but his retirement account won’t support his desire to travel. Monty heard of a loan that would allow him to take advantage of the equity in his home by getting monthly payments from the bank with his house as collateral. What is this type of loan called?
377) Which government entity oversees open market operations?
378) What percentage of homes in the U.S. are owner-occupied?
379) Qualified mortgage requirements are set by the ______.
380) John wants to do a 1031 tax exchange. He just sold his property. How many days does he have to identify a new property?
381) Which type of mortgage is seller financing in which the buyer gives a mortgage to the seller toward the purchase price, and which buyers use as down payment financing?
382) The rate at which a bank can obtain a loan from its Federal Reserve bank when using commercial paper as collateral is called ______.
383) Robin has great credit and was able to secure a loan for her oceanside dream home. Her 30-year, fixed rate loan is for an amount that’s above conventional loan limits. What type of loan does Robin have?
384) What is the benefit Ginny Mae investors have over other MBSs?
385) Loans create ________ for banks and other financiers.
386) A refinance is a ______.
387) The ______ clause allows the borrower to prepay principal on the loan at any time without penalty.
388) In which phase of the real estate market cycle would you expect to see property under valued and a large supply of homes on the market?
389) When a lender has a lien on a property, what rights does the lender hold?
390) The Mortgage Disclosure Improvement Act gives applicants a _________ to review and approve the Loan Estimate and Closing Disclosure form.
391) With this common loan type, the home is used as collateral and the loan creates a second mortgage if the first mortgage hasn’t been paid off.
392) Veterans using the ______ program aren’t required to submit a COE, get a new appraisal, or verify income.
393) Ted is in foreclosure but has some equity in his property. An investor suggests that Ted enter into a sales contract with him for a substantially higher price than the investor would actually be paying. The investor pockets the cash and allow the house to be foreclosed on. What sort of scheme is this?
394) Interest rates that are more than _____ over the current market rate are considered predatory lending.
395) Secured corporate bonds use ________ as collateral.
396) Which of the following is a true statement about deducting interest on mortgages taken out in tax years 2018 to 2025?
397) According to the National Association of REALTORS®, the majority of foreign investors in U.S. real estate are ______.
398) Under which section will you find any credits provided by the seller?
399) The section on the Loan Estimate called “Services You Cannot Shop For” includes fees for ______.
400) Which of the following is a true statement about the “hardest hit fund”?
401) Which of the following is an example of leveraging in a real estate transaction?
402) How do you determine debt coverage ratio?
403) Annual MIP can be removed from an FHA loan by ______.
404) Jody is concerned about the ______ that doesn’t allow her to start her gardening greenhouse because it sits next to a nature conservancy.
405) Rich wants to add a room to his house, so he takes out a home equity loan. This creates a/an __________ lien.
406) Kendra is purchasing a home and is ready to find a lender who will give her terms that she can afford. She has done her homework and knows that she can use ______ to compare loans and find the one that will best meet her needs.
407) Sylvia is a single mother living in a small town surrounded by ranch and farm land. She would like to buy a house there, but her income as a hair stylist makes it hard for her to qualify for a conventional loan. What government program might provide her with a direct loan to purchase a home?
408) Which of the following is an example of an inquiry initiated by a creditor that may appear on a credit report?
409) In addition to itemizing what are the borrower-paid closing costs, the prepaids section includes the __________ for each item.
410) Federal Housing Finance Agency established percentage targets and ___________ for loans made to low- to moderate-income borrowers.
411) Most adjustable rate mortgages have a feature that allows borrowers to _________ to a fixed-rate during a specific period of the mortgage.
412) What’s another name for the Homeowners Protection Act?
413) Which of these is a true statement about when a promissory note is sold?
414) An industrial development bond is a variety of _____ bond.
415) It’s possible for the adjustment period on an adjustable rate mortgage (ARM) to have ranges, such as three or ____ years apart.
416) The Federal Housing Administration’s loan program ______.
417) Which of these items did the FHA implement to stabilize and improve the mortgage market?
418) The ______ was enacted in 2010 to create stricter regulation of the financial services industry.
419) What did the National Association of REALTORS® say about foreign investment in U.S. real estate?
420) You may see a ________ named as a land contract, real estate contract, contract for sale, agreement for deed, or as articles of agreement.
421) Which of the following could be different from the amount on Loan Estimate that was initially received and can impact the monthly payment?
422) The housing ratio is the borrower’s monthly housing obligation as a percentage of ______ income.
423) Jackie is 10 days late on her loan payment. Will her lender place her loan in default?
424) The FHA offers a program for loan insurance on adjustable rate mortgages under ______ of the National Housing Act.
425) Robbie’s lender notifies him of an impending foreclosure, and is told that his property will be sold at public auction. After the auction occurs, Robbie receives a notice of eviction for which the lender had to petition a court. What does this describe?
426) What factors affect an adjustable rate mortgage?
427) What’s one reason a borrower would choose a split-or piggyback-loan option?
428) Which of these acts has special provisions for borrowers who are victims of overcharging?
429) Millie and Jerry are purchasing a home using their VA loan benefit. The sale price on the home they buy is $320,000, with 100% financing. Assuming that Jerry has a typical level of entitlement, how much of their loan does the VA guarantee?
430) The ______ sets requirements for mortgage loan originators.
431) Qualified mortgages require debt-to-income ratios of no more than ______.
432) Brenda’s go-to financial expert has no fiduciary responsibility to her. This is because she’s working with a(n) ______.
433) The Farm Credit System funds are acquired from __________.
434) The three types of finance instruments that can be used when financing a real estate purchase are the note with mortgage, note with deed of trust, and ________.
435) Nick and Nora are purchasing their first home. Like most homebuyers, they obtain a mortgage loan, using the property as ______.
436) Glenn is purchasing a home for $400,000. The property appraised at $415,000, and Glenn is financing $300,000. What’s the loan-to-value ratio?
437) Emily has great credit and was able to secure a loan for her oceanside dream home. Her 30-year, fixed-rate loan is for an amount that’s above conventional loan limits. What type of loan does Emily have?
438) Danica and Rae purchased a home using a conventional fixed-rate loan that was 90% of the purchase price, since they could only afford a 10% down payment. Their monthly payment will include ______, but only for a portion of the loan term.
439) Acme Bank, a primary lender, sells its loans on the secondary market, so it makes sure that all its loans meet ______ requirements.
440) Chuck is selling his property to Kyle. Chuck has agreed to finance the transaction for Kyle, who will make payments to Chuck while Chuck retains the legal title to the property. What’s this an example of?
441) Lydia put the minimum 3.5% down on her $210,000 home. She’ll have to pay a mortgage insurance premium (MIP). What type of loan does Lydia have?
442) The VA-guaranteed loan uses _____ to pay for the costs of the program.
443) Krista is obtaining a loan to buy a home. Her loan agreement consists of one document called a note and one called a deed of trust. What is the role of the note?
444) When Stacy’s clients ask her if she can recommend a mortgage broker, she promptly gives them the name of the best mortgage broker she knows, Gary Jones. Later, she always receives a check from Gary as payment for the referral. Would this be legal or illegal under the Real Estate Settlement Procedures Act (RESPA)?
445) The purpose of the Truth in Lending Act (TILA) is to _______.
446) Scott is a California real estate licensee with an MLO endorsement. Arthur, his assistant, does not have an MLO endorsement but he does have a real estate license. Which of these activities must Scott perform?
447) Shelly’s flower business is blooming, and it’s time for her business to grow. She plans to take out a business loan to open two more shops on the north side of town. Which lending institution would she most likely go to for the loan?
448) Lizzy rents an apartment in a building that’s being converted to condominiums. By law, the owner of the building must give Lizzy ________.
449) Which of the following provides everything a lender needs to know in order to value the property used as collateral for a loan?
450) Which of the following license holders in Pennsylvania is exempt from fulfilling the continuing education requirements as part of the license renewal process?
451) The lender will require flood insurance if the home is ______.
452) Janie’s got an open house scheduled for Sunday, but lets her friend in on Saturday to preview it. It’s love at first sight! With the owner out of town, Janie decides to cancel the open house so there won’t be any other offers. Her friend makes an offer and it’s accepted on Monday. What fiduciary duty or duties has Janie breached?
453) When a lower-quality property is adjacent to a higher-quality property, it can diminish the value of the higher-quality property. What economic principle of value is this?
454) What piece of regulation or regulatory authority requires all levels of government to perform an environmental assessment any time any action is taken that may impact the environment?
455) The State Real Estate Commission holds regular meetings and at least one public meeting a year in Pittsburgh, Philadelphia, and ______.
456) When an appraiser relies on comparable properties to estimate the adjusted market price of a property, the appraiser is using the _______ approach.
457) Thanks to this act, sites containing hazardous substances are identified, and responsible parties must clean them up.
458) Broker Hal enters into a listing agreement with seller Jane. Jane insists that the agreement state that only native-born U.S. citizens be allowed to buy the home. For what reason will this agreement be considered void?
459) Disclosing which of the following facts would be considered a fair housing violation?
460) Which of the following is a prohibited activity under Pennsylvania law?
461) What’s a covenant between a lessor and lessee?
462) In real estate contracts, which are required: legal descriptions or street addresses?
463) Which of the following is one of your duties as a listing agent?
464) Jill needs to pay the web developer who created a new website for her brokerage, but her checking account is low, so she floats herself a loan from earnest money kept in the brokerage’s escrow account and deposits it in her account for a few days before paying the developer. Which answer correctly identifies the violation(s) Jill has committed?
465) A Pennsylvania licensee who acts in the buyer’s best interest and makes a continuous good-faith effort to find a property until the buyer enters into a purchase contract is a ______.
466) Which of these trusts is created according to the terms of the will of a deceased person?
467) You represent a buyer of a $1 million property. The seller’s agent, through the seller, offers a 2.5% cooperative agent commission. Who’s your client?
468) Which of these is an example of a lot and block description?
469) Which of the following best describes the concept of appreciation?
470) How large is an acre?
471) Which of these items should real estate professionals help first-time buyers and buyers who have experienced recent credit issues to understand?
472) A period of stagnation in real estate when no one is buying and no one is selling is known as _____________________.
473) What’s the purpose of the Interstate Land Sales Full Disclosure Act?
474) Which type of Real Estate Investment Trusts derives a portion of its income from interest dividends?
475) Hugh works as a loan officer at a bank. Because of the SAFE Act, he must be registered with the
476) Which transaction must comply with Appraiser Independence Requirements?
477) A buyer has a 30-year, $750,000 loan with a 5.75% interest rate. How much of the monthly payment is interest?
478) Which statement is true regarding government loans?
479) Under the ______________ , every mortgage loan originator must be fully licensed and carry a mortgage surety bond.
480) To be eligible for an ___________________ ,an applicant must have participated in farm or ranch management for at least three years.
481) A homeowner has been paying her mortgage for several years and has built up equity. She decides to take out a home equity line of credit because she needs some cash. This credit will create A
482) Which of the following describes a Treasury note?
483) The _________________ clause allows the borrower to prepay principal on the loan at any time without penalty.
484) Which of the following describes a Treasury bill?
485) Financing for a real estate transaction can use a note with a ___________________ or a note with a deed of trust.
486) Real estate professionals keep a multitude of other professionals busy during the buying and selling process. Which of these professionals or entities are most active outside of the buying and selling process?
487) Carmen purchased a single-family residence in Monterey County for $480,000 using an FHA loan. At the same time, Yancy made an offer on a single-family residence not far away in Fresno County for $300,000, and was told he could not use an FHA loan for the purchase. Why?
488) The ______ was created in response to the practice of redlining.
489) What’s the most common indicator of illegal property flipping?
490) Which of the following items would be included in the M2 money measure?
491) Mortgage revenue bonds are a variety of what other type of bond?
492) Rather than face foreclosure, Tony decides to cut his losses. He voluntarily conveys his property to his lender. What type of foreclosure alternative is this?
493) Conventional loans that are outside Fannie Mae or Freddie Mac guidelines are said to be ______.
494) Maggie has a neighbor, Jim, who’s facing foreclosure. She likes Jim and wants to help him out, so they agree to do a subject to purchase. What does this mean?
495) Farmer Mac is a program that ____________ for agricultural property loans, rural utility loans, and certain loans guaranteed by the U. S. Department of Agriculture.
496) Life insurance companies sometimes like to insure their investment in commercial projects by insisting on an equity position. This is known as ___________ financing.
497) Completing a residential loan application requires providing information about the borrower, the property being purchased, and the ________.
498) Hugh works as a loan officer at a bank. Because of the _____________, the must be registered with the Nationwide Mortgage Licensing System.
499) Financing for a real estate transaction can use a note with a _________ or a note with a deed of trust.
500) What is a government-sponsored enterprise (GSE)?
501) Under the “Projected Payments” section of the Loan Estimate, the consumer can review ______.
502) Who is the intended consumer group for the Streamlined Modification Program (SMP)?
503) In the event of a client lawsuit against an independent contractor operating under an LLC, typically, only ______ are at risk.
504) Mary Francis is on her way home from work and stops at the grocery store. The business account she opened recently gave her an ATM card to go with it. Should she use the card to buy groceries?
505) Which of the following is the most liquid money measure?
506) Which entity sets the criteria for the conforming loan limits?
507) Which of these features is shared by the mortgage and the deed of trust?
508) In a residential real estate sale involving a federally related loan, who’s required to provide Real Estate Settlement Procedures Act disclosures to the consumer?
509) The rate at which a bank can obtain an overnight loan from another bank without providing collateral is called ______.
510) One common predatory lending practice is to charge fees for unnecessary or ____________ loan products or services.
511) Janice is planning to borrow money from her retirement savings. Which of the following is a true statement about her situation?
512) Kathy decided to borrow funds from her retirement account to fund the down payment on her new house. Which of the following is true about this loan?
513) What did a 2019 National Association of REALTORS® study say about foreign investment in U.S. real estate?
514) You are preparing a competitive market analysis on a vacant lot that you hope to list for sale. Which of the following approaches to value will be used in the development of the estimated value?
515) The period over which a property may be profitably utilized is called its:
516) Wear and tear to the load bearing members of a building would be classified as:
517) While the economy is experiencing inflation, interest rates:
518) A broker secured a buyer for his client and the seller accepted. Under which type of listing could a broker not receive a commission?
519) Mr. Seller signs an open listing on his home with five different brokers. In this case:
520) A parcel of vacant land is listed for $100,000, requiring 20% down with the seller
to carry back the balance. The broker brings in a full-price cash offer, but the owner
refuses. The broker is entitled to:
521) Under a lease, the leasehold interest lies in the:
522) Which of the following requires real estate listings to be in writing?
523) All of the following listings require that the broker be the “procuring cause” of the
sale if he/she is to be entitled to a commission, EXCEPT:
524) Payment history, age of accounts, credit usage rate, inquiries, and _______ are factors considered in calculating a credit score.
525) A RAM is a type of equity financing. What does RAM stand for?
526) Kobi, an appraiser, is appraising a single-family home used for a rental. If he wants to use the income approach, he will likely use ______.
527) Veterans using the ______ program aren’t required to submit a COE, get a new appraisal, or verify income.
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