CE Shop National Exam Flashcards

CE Shop National Exam Flashcards The Johnsons have owned a small restaurant for more than 20 years. It's open for lunch and dinner six days a week, and 80% of its weekday revenue comes from the happy hour drink and appetizer specials. The town in which their restaurant is located recently constructed a new middle school and stripped the liquor license from the Johnsons' restaurant, because it no longer complies with the ordinance to be 500 feet from a school property. The Johnsons have accused the town of _____.CondemnationEminent domainEscheatInverse condemnation Inverse condemnation(Inverse condemnation occurs when a property's value is negatively affected by government regulation, but the owner is not offered just compensation according to the requirements of the Takings Clause.) What does the Federal Trade Commission regulate?AdvertisingCommission disbursementsFederal real estate transactionsListing trades Advertising Brynn's listing agent told potential buyers that all offers on Brynn's property would be considered at 5 p.m. on May 3.By that date and time, there were four offers. The persons making these offers are the ______.ExaminersExecutorsOffereesOfferors Offerors(The party or parties making an offer is or are known as the offeror or offerors.) An example of this type of leasehold estate is a month-to-month lease.Estate at sufferanceEstate at willEstate for monthsPeriodic estate Periodic estate(A periodic estate automatically renews at the end of its lease term, such as at the end of a given month.) Alison and Brent are financing their house purchase of $232,500 with an FHA loan. Their credit score qualifies them for the minimum down payment. What do they need to put down?$10,462.50$11,625$6,975$8,137.50 $8,137.50(The minimum down payment for an FHA loan is 3.5%, so Alison and Brent's down payment needs to be $8,137.50 ($232,500 x 0.035).) Which of these is an example of a sub-agency relationship?Aldrich accepts a designated agency appointment from his broker so his firm can represent both the buyer and the seller.Blaine represents the buyer in a transaction with an unrepresented seller.Greta refers a buyer client to a more experienced colleague, asking for a referral fee from the colleague.Morris, who's licensed independently, finds a buyer customer for Greg's listing with Marvel Homes and is obligated to act in the best interest of Marvel Homes' client.Morris, who's licensed independently, finds a buyer customer for Greg's listing with Marvel Homes and is obligated to act in the best interest of Marvel Homes' client.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?Housing designated for senior use"Mrs. Murphy" exemptionOwner-occupied buildings with no more than four unitsSingle-family housing

sold or rented without the use of a broker Single-family housing sold or rented without the use of a broker(Single-family housing sold or rented without the use of a broker is exempt, provided the owner doesn't own more than three single-family homes at one time.)

How are principal meridians and baselines used in the rectangular government survey system?All legal descriptions in this system use a single principal meridian and multiple baselines.A principal meridian separates each township from the next and baseline separates each tier from the next.Each legal description in this system originates at the intersection of a principal meridian and a baseline.The boundary formed by two principal meridians and two baselines forms a township.Each legal description in this system originates at the intersection of a principal meridian and a baseline.What's a monument?43,560 square feetA permanent land marker sometimes used in legal descriptionsA point from which elevations are measuredThe subdivision of air above the land A permanent land marker sometimes used in legal descriptions(Monuments are permanent land markers and are often used in the metes and bounds system.) 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?$247,957.29$248,854.17$249,103.12$250,000.10 $249,103.12(If $1,145.83 of the total payment is interest,

that leaves $896.88 to be applied to principal: $250,000 -

$896.88 = $249,103.12.)

Burt terminated his exclusive right-to-sell listing agreement with Scott, his listing broker, without cause. Burt may legally do this as long as he's ______.A real estate licenseeUnhappy with Scott's servicesWilling to find his own buyerWilling to pay Scott's commission anyway Willing to pay Scott's commission anyway The ______ is the federal act that deals with telephone solicitation.BitphoneTelecommunication Device Act of 2003Telecommunications Information ActTelephone Consumer Protection Act Telephone Consumer Protection Act(The federal act dealing with telephone solicitation is known as TCPA, or the Telephone Consumer Protection Act.) Blake is allowed to use his property in a way that's prohibited under current zoning ordinances, because those ordinances would cause undue hardship for him. What gives him this permission?Area varianceMoratoriumSpecial use permitUse variance Use variance Richard is interested in purchasing some rural land and included outbuildings. When reviewing the legal description, he sees the name of a principal meridian. What type of legal description is this?Lot and blockMetes and boundsMonument and benchmarkRectangular government survey Rectangular government survey(Legal descriptions that use the RGSS usually include the state, name of the principal meridian, township, and range designations with compass directions and section numbers.) Kurt bought a vacant lot in a development that was 85% completed. When he started working with the builder to lay out where the house and driveway would lie, it was determined that he would need an easement because his driveway would spill over onto the adjacent lot by a few feet. What type of easement is this?Easement appurtenantEasement by necessityEasement by prescriptionEasement in gross Easement appurtenant

Jerome is developing an ad for three properties he has listed in an upscale community. He wants to keep it short and simple. Which of these would NOT trigger full disclosure under TILA?10% down payment30-year fixed rate with no pointsA monthly payment of $900Get a low

4.925% APR

Get a low 4.925% APR(An ad can show the APR without disclosing all the other credit terms. But if certain other "trigger" terms are included, such as down payment, payment amount, number of payments, or interest rate (other than APR), this would require full disclosure.) If a contract is for an illegal purpose, it's ______.EnforceableLegalValidVoid Void When a government entity exercises its powers to create zoning ordinances, what must be followed?Federal zoning codesThe area's comprehensive planThe state's zoning codesUniversal design standards The area's comprehensive planAn area's comprehensive plan outlines future development plans and goals of the area. Zoning decisions should follow this plan.Which of these is a potential title issue with a foreclosure?Clouds on titleDelays due to internal title auditHomeowner's right of equitable redemptionLengthy closing process Clouds on title(Potential clouds on the title from unpaid taxes or other types of liens are more common with foreclosure properties than standard sales. While the right of redemption, delays for audits, and a longer process are also issues, they're not title-related.) Jean is a licensee for At Home Realty. She chooses her own schedule, sets her own sales goals, and is compensated based on commission. She must complete three training courses each quarter and the required number of CE hours to maintain her license. She must belong to the local REALTORS® association. The firm doesn't pay for employment taxes for Jean. She receives no insurance or other benefits. Which of these factors might cause the IRS to classify Jean as an employee instead of an IC?She must belong to the local REALTORS®association.She must take a required number of continuing education hours.She must take three training classes through the firm.She receives no benefits from the firm.She must take three training classes through the firm.Which of these is a violation of the RRP Rule?A homeowner performs DIY work in a home built prior to 1978.A seller of a home built in 1952 doesn't make the appropriate lead disclosures.Contractors from a home improvement store install windows or doors.Contractors perform renovations that disturb lead-based paint without holding proper certification.Contractors perform renovations that disturb lead-based paint without holding proper certification.(The federal Lead Renovation, Repair, and Painting (RRP) Rule requires firms that do renovation or repair work in homes built prior to 1978 to be properly certified in using lead-safe work practices, but it doesn't prohibit DIY work.) Gary has an 80% LTVR on his new $318,000 townhome with an annual interest rate of 4.125%. What's his interest payment the first month?$1,093.13$1,126.25$874.50$901 874.50(The loan amount is $254,400 ($318,000 x .8). The first month's interest is $874.50 ([$254,400 x .04125] ÷ 12).) Sander and Ginny bought an old industrial site and plan to get grant money to put an environmental education center on the site. There are a few structures on the property, but they are in disrepair, and it will likely be less expensive to