ACEABLE FINAL EXAM PRACTICE TEST Flashcards

ACEABLE FINAL EXAM PRACTICE TEST Flashcards An oral agreement must be put in writing if: any attempt is made to obligate the buyer or tenant for a period of time What does a cooperation agreement between brokerage firms do?It defines their relationship and the way they will compensate brokers.A seller, having received multiple offers, directs the listing agent to share the terms of the offers in an effort to get the buyers into a bidding war. How should the agent respond?The agent can disclose that there are multiple offers but not the terms.Jorgie McGill is purchasing a home for $689,145. How much excise tax will be owed for the sale of this home?$1,379excise tax is always a whole dollar amount. First, round $689,145 up to the nearest $500, which is $689,500.Next, divide $689,500 by 500. You end up with $1,379 in excise tax.Yolanda does not have a real estate license. She works in a real estate office as support personnel. On an average day, she might research and compile information for MLS listings, submit MLS listings, tell prospective purchasers the listing price of homes, and place "for sale" signs in front of properties.Are any of these tasks against the license law for Yolanda to perform?Yolanda should not have researched and compiled the information for MLS listings.What is an option to purchase contract?a unilateral contract that gives the optionee a window of opportunity during which they can exercise an exclusive right to buy a property; an option fee is paid for this right Ben, a buyer's agent, learns that the seller needs to sell quickly because of recent health problems. Ben feels that this should remain confidential since it is not related to the property, so he does not tell his buyer. Were Ben's actions appropriate in this case?No. Since Ben is a buyer agent, he must disclose everything he knows to the buyer, unless prohibited by law.If a broker enters an agency agreement where the seller has agreed to give them any money they receive in the sale of the house that is over the asking price, which type of agency agreement is this an example of?net listing What does the CAN-SPAM Act do?governs the use of commercial email advertising Which method of depreciation separately weighs each type of depreciation?breakdown method The act that was created to promote the accuracy, fairness, and privacy of consumer information contained in the files

of consumer reporting agencies is the:

Fair Credit Reporting Act (FCRA) Gary is a broker. What should he advise his seller-client Katy, who is prepping her home (built in the 1950s) for sale?Gary should tell Katy to give all prospective buyers an EPA-required pamphlet and disclosure about any known lead paint in the home.What causes payments to change in an adjustable-rate mortgage?fluctuations in the cost of money

A buyer enters into a single-agency agreement with a designated broker and later decides to purchase a property listed with the same brokerage. To continue an agency relationship with the designated broker, the buyer will need

to consent to:

dual agency A broker has an active license. The broker is neither a broker-in-charge nor affiliated with one. Which of the following activities would comply with NC License Law?The broker could represent buyers in his family who are aware that he is licensed.Builder X is set up as an LLC with her spouse. Her spouse, Broker Q, represents the properties built and sold by the LLC. An unrepresented buyer becomes interested in one of Builder X's homes and Broker Q enters into a dual agency agreement with the buyer. Which of the following is true regarding this scenario?Broker Q cannot represent the buyer as a dual agent as he has an ownership interest in the property being sold.What's one difference between buying a property subject-to the seller's mortgage loan and assuming a seller's mortgage loan?With an assumption the seller has the lender's permission.A broker sets appointments and shows three houses to a buyer. He never hears from the buyer again. Which of the following is true in this situation?The broker should have a Working with Real Estate Agents disclosure in this file even if there is nothing else.Which federal act regulates telephone solicitations?the TCPA Broker Sadie is working with a property management company, XYZ Properties, to find tenants. When Broker Sadie meets with a prospective tenant, what are her duties of disclosure?She must tell the prospective tenant that she represents XYZ Properties.With a fixed-rate amortized loan, as the remaining balance

goes down, the:

interest payments go down Aneeka is purchasing Hammad's home for $282,100.Aneeka agrees to pay $5,000 in cash, and then the remaining amount over a 20-year period.How much excise tax will Hammad pay?$565The cash payment does not affect the amount of excise tax that will be paid. You'll still round the total sales price ($282,100) up to the nearest $500, which is $282,500. Divide that by 500 and you end up with $565 in excise tax.Two brokerage firms are having a commission dispute.One broker-in-charge claims that the other broker-in-charge did not give them the amount promised in a commission split. What is FALSE?The brokers-in-charge can file a complaint with the North Carolina Real Estate Commission.A broker sharing on the MLS how much of their commission they will split with another broker is an

example of:

cooperation Which of the following is an appropriate interpretation of the guidelines for measuring heated living area in a residential property?A room with a sloped ceiling must have a ceiling height of seven feet or greater for at least half of the area of the room.Which of the following is true about offerors and offerees?The offeror and offeree can potentially reverse roles in a single contract negotiation.

Comp 1 is 2,000 sq. ft. and was sold for $250,000. The subject property is 2,200 sq. ft. Assuming that size is the only difference in the properties, using the sales comparison approach, what would the value of the subject property be?$275,000The price per square foot from Comp 1 is $125.So, 200 additional square feet would create an additional $25,000 in value, putting the subject property at $275,000.

($250,000 + $25,000 = $275,000)

Each discount point is 1% of the:loan amount

Fiona's lender will be evaluating her for a mortgage loan.To do this, the lender will consider things like her long-term debt, the anticipated monthly mortgage payment, and her income. They have two formulas or measures they will look at.What are those formulas and how are they collectively known?Payment-to-income ratio and debt-to-income ratio are the two formulas or measures collectively known as the qualifying ratios.Gabby and Daniel agree to replace their existing contract with a new one and to allow Kelsey to take Daniel's place in the new contract as a party to the agreement with Gabby. Kelsey now has all of Daniel's rights and

obligations in the contract. This is an example of:

novation Conventional conforming loans are:neither insured nor guaranteed by the government What does the parol evidence rule say about contracts?Oral evidence can be used to support a written contract but can NOT be used to contradict one.In a fixed-rate, amortized loan, how does the amount of the monthly payment going towards principal change over time?The amount going towards principal will increase over time.Agent X lists a property for a seller. The seller insists on an Open Listing Agreement. Once listed, Agent Q from a different firm brings a buyer to the property and secures a contract for sale. Which of the following is true?No compensation was earned from the seller by either agent in this scenario.If a cooperating broker acting as a subagent is showing a buyer a property listed by a broker on behalf of their seller-client, who is representing the buyer?no one Which of the following is TRUE about working with sellers in North Carolina?The agency agreement must be in writing from the beginning.In North Carolina residential and commercial sales transactions, agency disclosure should be documented

with:

the Working With Real Estate Agents (WWREA) Disclosure form As an independent contractor, the income taxes of a broker

are:

paid by the broker in quarterly installments Ellen, a buyer's agent, submits an offer to Christine, a seller's agent. The offer is for $440,000 with a closing date of 4/24. The seller likes the offer, but wants to close a little later. The seller strikes through 4/24, writes 5/15, initials the change, and signs the offer. Christine calls Ellen to tell her it's a deal, just with a different closing date. Has a contract been formed? Why or why not?No, any change to the offer creates a counteroffer (which constitutes a rejection of the original offer). The buyer has not accepted the counteroffer.

Real estate brokerage relationships in North Carolina are

governed by all of the following EXCEPT:

North Carolina's law of fiduciaries Which listing agreement allows multiple real estate brokers (and the owners themselves) the right to sell the property, with a commission being paid to whomever is the procuring cause of the sale?open listing What do the statute of limitations and the doctrine of laches have in common?Both are concerned with making sure legal claims are made within a reasonable time frame.Javier is buying a home for $210,000 by obtaining an 80% LTV conventional loan for 30 years at 5%. The mortgage factor is 5.37. If annual property taxes and insurance are $1,200, what is the PITI payment?$1,002.16To find the monthly PITI payment, you'll need to find the loan amount so that you can use that amount to calculate the monthly principal and interest payment using the mortgage factor. Then you'll need to divide the annual property taxes and insurance by 12 to find the monthly amount and add that to the principal and interest payment.LOAN: $210,000 X 80% LTV = $168,000 MONTHLY P&I:

($168,000 ÷ 1,000) x 5.37 = $902.16 MONTHLY TI: $1,200

/ 12 = $100 MONTHLY PITI PMT: $902.16 + $100 =

$1,002.16

Kelly Anne has been working with a buyer, Quentin, under an oral buyer agency agreement. Now that he has found a house he would like to purchase, Kelly Anne asks Quentin to sign the "Exclusive Buyer Agency Agreement." If Quentin refuses to sign the agreement, how can Kelly Anne still be a part of the transaction?Kelly Anne must officially terminate the oral buyer agency relationship and explain to Quentin she would now be representing the seller and will have a duty to reveal any and all confidential information she learned about him to the seller Agent Alana previously sold several lots in a subdivision under development. All of those passed a potable water test. Alana then sells Lot 10 without checking whether this lot satisfies the potability test. She tells the buyer that Lot 10 has adequate potable water, although this later turns out

not to be true. This is:

negligent misrepresentation What is the term used to describe the discharge of contracts as a result of the application of law without regard for the parties' agreement or cooperation?operation of law A buyer agent assists a client in making an offer on a property that is represented as a 3,200-square-foot colonial. However, the listing agent had transposed the numbers, and the house is only 2,300 square feet. Would the buyer agent be liable for this misrepresentation?Yes. This mistake was so large that the buyer agent should have noticed a "red flag" and asked for verification.A single-family home is tenant occupied. Calculate the GRM with a selling price of $234,000 and monthly rent of

$1,850.

10.54GRM is property price divided by gross annual rental income. In this case, 234000 ÷ (1850*12) = 10.54 Lien In Lenders is foreclosing on borrower Tricia's home.The proceeds from the sale will cover all but one of the liens on the property. Which of these debts won't be paid in full after all of the money is distributed?a junior mortgage