2,800B. 4,000C. 6,800D. 3,000

Real Estate National Exam 4 Flashcards A property is advertised for sale on the radio. What part of the advertisement involves a trigger term?A. the house is in a neighborhood of beautiful homesB. the house is close to schools and churchesC. easy financing is available to qualified buyersD. the seller offers an interest rate of only 5% on purchase mortgages

• the seller offers an interest rate of only 5% on purchase

mortgages If a lot measured 140' x 200' and there was a lot premium of $20 per front foot, what premium would be charged?A.

$2,800B. $4,000C. $6,800D. $3,000

A. $2,800

Which of the following is the best example of an emblement?A. BarleyB. Sugar caneC. Rose bushesD. elm tree

• Barley

A party inherits a property. He wants to sell it quickly, as he wants the cash. He contacts a broker to list the property for $300,000. The broker knows that homes in that neighborhood are selling for $325,000 and more. What should the broker do?A. Take a net listing on the propertyB. Buy the property himself as an investment or to resellC. Provide the seller with a CMA and encourage the seller to price it correctlyD. List the property for $300,000 as this is what the seller wants

• Provide the seller with a CMA and encourage the seller

to price it correctly Mary, a single woman with no children, owns her own home. She dies intestate. What happens to her property?A.the courts will appoint an executer to settle her estate.B.the courts will appoint an administrator to settle her estate.C. the executor she chose will settle her estate.D.her heirs will inherit her property by devise.

• the courts will appoint an administrator to settle her

estate.Gently used water from showers, sinks and tubs is

called:A. clearwaterB. blackwaterC. whitewaterD.

greywater

• greywater

The Exclusive Right to Sell Listing entitles the broker to:A.

the right to sell without exclusivityB. the exclusive right to be the only broker to sell the listingC. rights to sell with the right to convey titleD. exclusive right to a commission no matter who sells the listing

• exclusive right to a commission no matter who sells the

listing Which of the following statements about Contract for Deed is FALSE?A. Contract for deed is not fully executed until the seller delivers the deed to the buyerB. Legal title is transferred to the buyer when the agreement is signedC.Contract for Deed is also called an installment contractD.The buyer is the vendee and the seller is the vendor

• Legal title is transferred to the buyer when the

agreement is signed

Homeowner's insurance will not protect a property for

damage due to:A. floodingB. fireC. vandalismD. storms

• flooding

A landlord and tenant sign a lease agreement and the tenant pays for the first and last month's rent. The landlord learns that the tenant is only 17 years old. Which of the following statements describes this lease?A. It is voidable at the option of the tenant because he is a minorB. It is voidable at the option of the landlord because the tenant did not disclose his ageC. It is valid and binding on both parties because the tenant already paid some rentD. It is void because there was no real mutual agreement

• It is voidable at the option of the tenant because he is a

minor What law was passed to increase the balance available for cleanup in the Superfund when CERCLA could no longer meet the needs for this?A. EISB. SARAC. ESAD. FEMA

B. SARA

What does the GIM convey or determine?A. Net yieldB.ValueC. Rent/monthD. Operating expense

• Value

Monthly taxes and insurance on a single-family home are $1200. Lenders are qualifying at 28% with a loan factor of $5.00. What monthly income will buyers need to qualify for a $300,000 loan?A. $9,463B. $6,493C. $9,643D. $9,346

C. $9,643

A buyer has defaulted on a sales contract. The seller has agreed to keep the earnest money deposit as compensation. What remedy has the seller agreed to?A.Liquidated damagesB. Partial performanceC. Suit for specific performanceD. Money damages

• Liquidated damages

Which clause in a mortgage requires that the loan balance be repaid if the property is sold, or changes owners?A.subordination clauseB. defeasance clauseC. alienation clauseD. acceleration clause

• alienation clause

A property is advertised as "For Sale by Owner." The seller owns 2 homes. The seller receives several offers and chooses the buyer based on the buyer's national origin.Neither party is represented by a broker. Which of the following is true about violation of the Fair Housing laws?A.The seller is in violation of the Fair Housing ActB. The seller is not in violation of the law because his actions do not involve a brokerC. The seller is guilty of a Class A MisdemeanorD. The seller is guilty of a civil offense

• The seller is not in violation of the law because his

actions do not involve a broker

A listing agent will always:A. give advice and opinions to

the buyer and the sellerB. give full disclosure of all facts to both partiesC. treat both parties with honesty and fairnessD. support and defend the needs of the customer

• treat both parties with honesty and fairness

A standard policy of title insurance will not provide

protection for:A. illegal acts of attorneysB. forged deedsC.

survey or boundary problemsD. human error in copying

and recording

• survey or boundary problems

Using compound depreciation, what would be the value of a $250,000 property at the end of 2 years if depreciation is

calculated to be 4% per year?A. $230,400B. $230,000C.

$210,000D. $150,000

A. $230,400