Alabama Post License 2 Flashcards

Alabama Post License #2 Flashcards Which statement is FALSE about home tours? X Salespersons should point out every appealing feature to the buyer.Which statement is TRUE about URLTA?X This law standardizes the relationship between residential landlords and tenants.Which statement is FALSE regarding material facts?X They are limited to property conditions only.In the year their licenses will expire, salespersons must submit their continuing education credits to the AREC by X September 30 Which illegal practice ISN'T a breach of anti-trust legislation?X Steering Jeanne and Nick Consumer want to know the pre-tax revenue stream of their residential rental. Based on $474 in monthly operating costs, $41,250 annual gross income and $14,710 debt service cost, what is the yearly pre-tax amount?

X $20,852

Katie & Randy Wrentor have a $115,000, 15-year fixed rate mortgage at seven percent. If the payment factor is 0.0089883, annual taxes are $1,500 and insurance is $200 per month, what is the Wrentors' monthly PITI payment?

X $1,358.65

If a licensee is hoping to enter the property management

sector, her best prospecting source is:

X Her current investor clients Unit 24 listed the top five complaints the public filed against real estate professionals. This one was ranked number

four, making up 10 percent of the total:

X Failure to fulfill agency duties What impact did Alabama Supreme Court Case Ray v.Montgomery have on the state's caveat emptor policy?X Ruled that buyers had the responsibility to use "due diligence" in determining a property's condition.An apartment complex generates $33,030 annually from leases. In addition, each month, the coin laundry yields $245 and vending another $70. If the monthly operating costs are $1,105, what is the investor's yearly gross income?

X $36,810.00

According to the BROIL acronym, business investments

include all but these rentals:

X Broiler chicken houses Which statement is FALSE about floor duty? X The licensee on floor receives all the new business.What is the second "pre-listing" step with seller prospects?X Creating a database profile of the consumer Which statement is FALSE regarding tenant lease contracts in Alabama?X The capable parties are the tenant, landlord and the licensee.At a minimum, how often should licensees update their sellers about their listings?X Weekly FSBO sellers have several reasons for not hiring real

estate professionals. This ISN'T a common one:

X They enjoy the "DIY" (do-it-yourself) real estate process.

Licensees should spend the LEAST amount of time on

these two topics until after the seller signs the listing:

X Property disclosures and marketing Ken & Teresa Leaser have a $192,000, 25-year fixed rate mortgage at eight percent. The payment factor is 0.0077182, annual taxes are $1,407 and insurance is $390 per month. The Leasers make $63,550 each year. Do Ken and Teresa qualify for the housing ratio limit set by secondary mortgage markets like Fannie Mae?X No. Their rate of 37.56% is above the 28% limit.Which statement is TRUE about pricing property using the CMA?X Low net adjustments are the best indicators of value.Which statement is TRUE about the single agency real estate relationship?X All single agency agreements must be in writing What percentage of underground storage tanks leak and after how many years?X 40%; 15 to 20 years According to Rule 790-X-1-.11, which course ISN'T acceptable as part of a licensee's continuing education curriculum?X Personal development

This law is the foundation for all U.S. anti-trust policies:X Sherman Act

What is the best way for licensees to proceed when their family and friends are looking to buy/sell realty?X Be their single agent in order to provide complete advocacy and loyalty.Which of these ISN'T a requirement for a tax-deferred exchange?X Closing the transaction within 90 days Eighty percent of a licensee's time should be devoted to all but this task, which should constitute only 20 percent of a

salesperson's total work time:

X Business building What should licensees do if sellers don't want to complete the paperwork at the end of the listing presentation?X Be understanding, but politely point out that time is crucial and make plans for follow-up.On average, which economic cycle takes longer to

complete: the overall business market or the real estate

industry?X Real estate at 22 years What is the first task a buyer's agent should do when her client indicates he wants to make an offer on a home?X Contact the listing salesperson to see if the realty is still available.Which of the following personal real estate transactions can salespersons handle without their qualifying brokers?X Brokers are responsible for all of these transactions.What are the two exceptions to Alabama's caveat emptor policy and which court cases defined them?X New realty (Cochran v. Keeton) and health/safety issues (Cashion v. Ahmadi) This Alabama Supreme Court decision ruled that when licensees evade or give misleading answers to direct

inquiries by consumers, they are guilty of fraud:

X Ray v. Montgomery According to the "Risk Management 101" article, some licensees MISINTERPRET Alabama law §34-27-2 (b) (1) to

mean that:

X Salespersons can handle their personal real estate transactions independent of their qualifying broker.What must salespersons do to satisfy the continuing education (CE) requirements for their first license renewal?X Complete the post-license course and pass the exam at 70% or better.

Real estate commissions are negotiable, not fixed in

compliance with this federal law:

X Clayton Act According to state law Rule 790-X-3-.04 (1), licensees have

to provide actual closing statements for:

X This law standardizes the relationship between residential landlords and tenants A buyer CAN'T rely on a general home inspector to:X Determine the toxicity of mold.Which investor partnership DOESN'T allow passive investors?X General partnership Regarding property inspections, licensees SHOULDN'T:X Urge buyers to adopt an "inspect-it-yourself" attitude in order to save money.X Urge buyers to adopt an "inspect-it-yourself" attitude in order to save money.Employing the 30-day/12-month proration method, what is the buyer's portion of the $2,760 property taxes if the closing date is April 18?

X $1,932

The "M" in the CALM Negotiation Principle refers to:X Middle ground

Which of these ISN'T a probable indicator of asbestos?X Synthetic stucco According to the 1975 Magnusen-Moss Warranty Act: X Any consumer products with warranties must be fully and fairly disclosed to buyers.Foreclosed properties can constitute _____ percent of the

available realty in major U.S. cities:

X 30% The process of proving a will before a duly authorized court

or person is known as:

X Probate Ken & Teresa Leaser have a $192,000, 25-year fixed rate mortgage at eight percent. If the payment factor is 0.0077182, annual taxes are $1,407 and insurance is $390 per month, what is the Leasers' monthly PITI payment?

X $1,989.14

Which type of listing agreement can be described as a "running of the brokers"?X Open Anne and Ben Bier are purchasing a home with annual taxes of $1,047. Using the 365-day method, what is their share of the cost if their closing date is May 7?

X $682.70

Listing agents can be confident that a buyer's financing

application has been approved when they:

X Have proof from the lender that the application has been approved What percentage of a REIT's assets must be vested in the real estate market in order to legally avoid corporate taxation?X 75% Licensees should show the most appealing property at this

point along the home tour:

X Near the beginning Using the 365-day proration technique, what is the seller's share of the $433 monthly utility expense if the closing date is August 9?

X $125.71

If Janet and Phil Boroer are approved for a mortgage with a $1,220 PITI payment, earn $48,500 annually and have an additional $525 in monthly debt, what is their housing ratio?

X 30.18%

Which of these computer programs is best equipped to build or maintain a professional real estate web site?X Adobe Dreamweaver

Which nonverbal indicates that the listener is considering or is already in agreement with the speaker's words?X Hands on chin or neck How can a licensee BEST establish rapport and credibility with the owner during the listing presentation?X Through preparation, a professional appearance and a service-oriented attitude What is the definition of a REIT?X A corporation with at least 100 shareholders that invests in real estate assets.

Most listings expire because of:X Overpricing.

Regarding CMAs and appraisals, which statement is TRUE?X In federally regulated sales, it's illegal for licensees to do appraisals for their own sellers.Licensee Jeanne Dreemaker works as an independent contractor for her broker. She needs to bring home $45,000. Based on the percentage salespersons need to reserve for taxes, what amount does Jeanne actually have to make?

X $60,750

What real estate relationship works best for experienced sellers mainly needing help advertising their property?X Transaction brokerage The main purpose of each of these laws is consumer disclosure, except for this one

X DNCR

Which statement is FALSE about RECAD?X Licensees can't serve consumers who refuse to sign the disclosure form.What statement accurately describes the relationship between the local and overall real estate market?X Sometimes their cycles coincide and at other times they vary depending on market conditions.This customer/client group will make up the largest

percentage of your database:

X Targeted strangers What is the time frame that should be allowed between contract signing and closing so any contingencies can be cleared?X 30 to 60 days Sy and Lib Selyr originally paid $193,000 for their investment property. They are selling it for $179,800 and have closing costs amounting to $1,325, and total depreciation taken was $12,000. What is their capital gains/loss amount?X $2,525 loss Which closing tasks are usually overseen by the lender?X Ordering the land survey and choosing the property appraiser.How many hours of continuing education credit must an Alabama salesperson complete every two years starting with their second renewal period?X 15 hours This statement is FALSE regarding FLBO prospects: X Licensees don't need to check public FLBO numbers against the DNCR.If Janet and Phil Boroer are approved for a mortgage with a $1,220 PITI payment, earn $48,500 annually and have an additional $525 in monthly debt. Would Janet and Phil meet the housing ratio limit established by the FHA?X Yes. Their 30.18% rate is below the FHA limit of 31%.Licensees should contact their farm members at least 12 times annually. How many of these should be personal