Seller's broker
negotiating to convince lender to accept less than the balance due as
satisfaction to the debt
A. Negotiated balance reduction
B. Equitable redemption
C. Debt forgiveness
D. Short sale
Example of modular
construction
A. Home used as a model
B. Prefabricated homes
C Apartment building
D. Mobile home
Which of the following
terms identifies the clause that allows a lender to call the entire remaining
loan balance due in the event of buyer default?
A. Novation
B. Entitlement
C. Acceleration
D. Hypothecation
A buyer has specified
in writing an interest in purchasing a property without any legal obligation
and without defining a specific project. This is referred to as
A. An option
B. No binding option
C. A letter of intent
D. A project intent letter
Which of the following
statements is true concerning an unrecorded deed?
A. It is not valid between the grantor and the grantee
B. It need not name the grantee
C. It need not contain a legal description
D. It does not give
constructive notice of ownership
One of the major
disadvantages of real estate as an investment is that
A. Managing it requires expertise
B. It is highly speculative
C. It's liquidity is limited
D. The tax advantages are minimal
***20x22 garage must
be attached to house in a subdivision. This type of regulation is?
A. Municipal
B. Restrictive Covenant
C. Zoning
D. Building
Map question
2702 York
Landlord sells
property to a third party but tenants have signed a 1-year lease. What is true
about the new owner?
New owner cannot take possession until lease expires
Loan estimate and
disclosure forms have been deliverers to the client. During final walkthrough
what could allow the client to extend closing an additional 3 days?
A. Change in fixed rate
B. Taxes
Under normal
circumstances, the purpose of a protection clause in a listing agreement is
To preserve the brokers right to a commission if she
registers a buyer to whom she showed the property during the listing, and the
buyer purchases it later the listing expires
A vet with a thriving
practice who wants to add a satellite office on the south side of town. He will
consider an existing building but would prefer a vacant parcel on which he will
build to his own specifications. He prefers a property of at least one acre,
and will need a building of at least 2,700 square feet. The broker has located
two properties that may suit and has obtained the surveys on both. How should
the broker advise the ver with regards to offering for either property?
Verify the zoning for both properties
A broker is asked to
compute the capitalization rate for an investment property valued at $750,000.
Which formula should the broker use?
The income approach
It is a real estate valuation
method that uses the income the property generations to estimate fair value.
Its calculated by dividing the net operating income by the capitalization rate
An owner has a
freestanding cabinet that was custom-built to fit an alcove of the living room.
When the owner sells the home, the cabinet will be BEST described as
Personal property
A broker's license has
a tenant client who wishes to minimize any future increase in expenses for the
office space she is interested in leasing. What type of lease should the broker
recommend?
Gross lease
A seller made a
counteroffer to a buyer and has agreed to keep the offer open for a set period
of time. Meanwhile a second buyer makes the seller a higher offer. Which
statement is true?
The seller can rescind the counter offer and accept the
second buyer offer
In a jurisdiction
where the common law of agency governs real estate activities, a buyer is
signing open buyer agency agreements with many brokers. He has been viewing
multiple properties with multiple brokers.
The buyer will be liable for One commission to the broker
who locates the property that he purchases
What is the primary
reason for secondary mortgage market?
Buy from banks so banks can make loans
Property located by
the airport that needs more land for runway. What should you tell your client
that decides not to sell
That the city and local entities can take her property by
eminent domain
On a rectangular
survey what is Range 3 West?
The answer has a 12 and 18
Broker is showing a
house and knows that there was a murder/suicide within. What should the broker
do
A. Say nothing
B. Tell potential buyer
Tell potential buyer - if representing buyer
Say nothing - if representing seller
A seller received an
offer for their house, but sent back a counter offer and in that counter offer
they specified a period of time in which the buyer had to accept. During that
time the seller gets a better offer from a different buyer. Does the seller have
to wait to hear back about the counter offer before accepting the new offer?
They can rescind offer and accent new ofer as long as
original offer has not been accepted
Subdivider met mapping
regulations of local government and applied to have subdivision plat approved.
Once approval is granted, what additional steps must be taken before lots are
sold?
Building permits must be obtained
A broker takes a check
from a client for repairs for $800, the repairs were only $700. The client gets
the receipt and notices $100 is missing. What should the managing broker do?
Personally apologize, explain the situation and write a
check for the $100
The purchase and sales
agreement provides for the release of earnest money to the seller after the
buyer's property inspection. The seller requests the earnest money prior to the
property inspection. The broker should
A. Release the earnest money to the seller immediately
B. Notify the buyer of the broker's intention to release the money to the
seller
C. Release the earnest money on the buyer's verbal approval
D. Refuse to release the
earnest money
Earnest money can be disbursed only at closing, or if contract fails/breaches,
can be released upon a written agreement from both parties to a transaction
When payments are made
on amortized mortgage loans, the debt service includes
A)Only the repayment of principal on the mortgaged property
B)Only the payment of interest on the mortgaged property
C)Payment of both principal and interest on the mortgaged
D)Property Payment of
principal, interest, taxes, and insurance on the mortgaged property
A computational
technique used in the income approach to valuation, which converts net income
into an indication of value. Is the
A)Reproduction cost
B)Capitalization rate
C)Unit value
D) Gross rent multiplier (GRM)
According to the truth-in-lending act (regulation Z), which of the
following must be stated in the truth-in-lending disclosure?
A. attorney fees
B. cost of title policy
C. broker's commission
D. annual
percentage rate
Which of the following describes a
title problem that must be corrected before closing?
A. leased mineral rights
B. an
outstanding insurance claim
A buyer is looking in several different cities for land to
purchase for a shopping center. The buyer has decided to hire several real
estate licenses, each representing the buyer in that licensee's city. Which of
the following types of agreements would most likely protect the buyer from
owning multiple commissions?
a. exclusive agency representation
b. nonexclusive right to lease
c.
nonexclusive buyer agency
d. exclusive right to sell
Broker A has created an extremely aggressive business model
which has allowed for very quick success in the market. The other brokers in
the market area have decided not to allow broker A to show their listings or
show broker A's listings. This would violate:
Regulation Z
The Sherman
antitrust act
The legal remedy for canceling a
contract and restoring the parties to their original positions is called
a.
rescission
b. recapture
c. rejection
d. reversion
An important function of zoning laws is
to
A. exercise the power of eminent domain in condemning
property for public use
B. ease
commercial development by restricting residential density
C. protect the public from interfrior construction
practices
D. ensure conforming land use
A redemption right
refers to
A. right of the lender to call off the sale
B. right of the lender to redeem inferior mortgages
C. right of foreclosed borrower to buy the property back
D. immediate possessory right
of the buyer at a foreclosed sale
C. right of foreclosed
borrower to buy the property back
If a gap in the chain
of title is discarded, what would it create?
a) lien
b) encumbrance
c) cloud on the title
d) adverse possesion
At the time of
closing, it is customary that the real estate taxes on residential properties
are
A. split evenly between
borrower and seller
B. pro-rated between borrower and seller
C. paid by borrower
D. paid by seller
a mortgagor obtains an 80% loan to value mortgage on a property
purchased for 80,000. the mortgagor pays 3 discount. how much will be paid in
points ?
a- 1.920
point count base on
loan amont not purchase price
b 2,400
c 4800
d 6400