Ct Real Estate Practice exam general Flashcards

Ct Real Estate Practice exam general Flashcards According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the following disclosures MUST appear in the ad EXCEPT the prepayment penalties and rebates A broker supplies the financing for a project to build condominiums with the stipulation that he has the exclusive right to sell the completed condos. Which of the following BEST describes this relationship?Agency coupled with an interest.Without checking the facts, a broker who is the seller's agent tells a buyer that the property taxes in a particular neighborhood are among the lowest in the area. The buyer relies on the broker's statement and makes an offer on a house in the neighborhood. Before closing, it is determined that the taxes are actually among the highest in the area.The buyer could seek to rescind the contract on the basis of misrepresentation Which of the following is the first action to take when mold problems are found?Identify and remedy the cause of the problems At the closing on June 15, the buyer is assuming a mortgage presently on the property, on which the monthly interest charge is currently $600. The seller has made the payment due on June 1. Assuming a VA mortgage, what is the adjustment made at closing?Debit seller $300; credit buyer $300.A prospective seller asks a salesperson to recommend a listing price for a property. The salesperson should suggest a competitive market analysis to determine the property's value A contract has been drawn which obliges the sellers to convey title to their land to the buyers if the buyers come up with $22,000 on or before December 31st. This is called an option contract The Department of Housing and Urban Development estimates that most private homes built before 1978 contain potentially dangerous levels of lead. Because of this, some Federal agencies, such as FHA require the buyer to acknowledge disclosure of the presence of any known lead paint Building codes areordinances that specify construction standards A buyer was negotiating the purchase of a house for himself. During a conversation with the seller, the seller agreed to include all kitchen appliances in the sale, and this fact was included in the sales contract. In this situation, if the seller takes the appliances with him, what recourse does the buyer have?The buyer may sue the seller for specific performance If conditions for purchase are included in a deed and these conditions are violated, what is the penalty?Return of the property to the original owner.

Too much leverage may result innegative cash flow A managing broker can be held responsible for all real estate activities of salespersons A couple signed a lease on an apartment for a period of 1 year. The lease does NOT contain an automatic renewal clause. The couple plans to move out at the end of the lease rather than renew it. How much notice MUST they give to comply with the lease term?No notice is required.In helping a buyer to select a lender, if the buyer believes he has good credit and his income is documentable as a salary and by tax returns, the licensee might recommend a mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT more variety of loan programs available A seller tells the listing agent that her home was treated for termites 10 years ago, so there are no termites now. Before listing the property, the agent should tell the seller to disclose the termite treatment on the property disclosure.Which of the following statements about discount points is

FALSE?

They are computed as a percentage of the selling price For Federal income tax purposes, which of the following are costs of homeownership that may be deducted from gross income?Mortgage loan interest, local property taxes, mortgage loan origination fees During the listing presentation, the seller questions the amount of commission to be paid and is told the amount of commission is negotiable Legal descriptions using the government survey system are NOT generally used in the original 13 states A lawsuit for inverse condemnation may be brought bya homeowner If all other factors are equal, in which location is a parking lot likely to bring the highest sales price?Business district zoned for a six-story office building Three people buy a house as tenants in common.Subsequently, two of the owners want to sell, but the third discourages each potential purchaser. The two owners who wish to sell the house can file an action for partition against the third owner A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called a contract A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This permits the lender to demand immediate payment of the entire note A major difference between freehold and nonfreehold estates is that all freehold estates are of indeterminable duration The purpose of requiring an earnest money deposit in a real estate sales contract is to provide evidence of the buyer's intention to carry out the contract A loan which requires the borrower to pay interest only until the maturity date (or due date), and then to pay the entire principal on the maturity date, is called a term loan Prospective buyers made an offer on a property. The seller did NOT accept, but made a counteroffer. The prospective buyers signed the counteroffer and the real estate agent

delivered their acceptance to the seller. In the interim, the same buyers had found another house that they liked better and made an offer on it, which was accepted. Which of the following is TRUE?Both contracts are valid How does a creditor who has obtained a judgment get satisfaction against a debtor who will not pay?Writ of execution

A prospective buyer made an offer to purchase a property.The owner responded with a counteroffer. While the buyer was reviewing the counteroffer, the owner received a better offer. The owner can accept the second offer if the owner withdraws the counteroffer before it is accepted The day after a broker's listing on a house expired, it was listed with another broker and offered in the MLS. Several days later, a third licensee called the first broker and asked for the key to show the home. The broker should inform the caller that he is no longer the listing agent The purpose of usury laws is to regulate interest rates charged by lenders Which of the following approaches MOST reliably estimates the sales price of a single-family residence?Market data At the time of listing, the seller tells the listing agent they are moving because the neighbor has loud parties every weekend. The agent should tell potential buyers about the parties An escheat occurs whena property owner dies without heirs or a valid will While an agent is showing a listed property, the seller and the buyer enter into an oral agreement for the purchase of the home. If a dispute over the terms arises later, the agreement may be unenforceable because the agreement does not comply with the Statute of Frauds Joint tenancyrightAn estate owned by two or more people whith equal and undivided possession. Both must purchase at same time, right of suvivorship possible.A couple owns an older home in a neighborhood that is becoming a commercial area. Because of the change in the use of the land, the couple can expect the value of their parcel to increase at some future time. This is an example of the principle of anticipation A broker, acting as agent for the seller, presents an offer to buy from the broker's former college roommate. The broker knows that the buyer will increase the amount of the offer if the seller turns down the offer. When presenting the offer, the broker should tell the seller that the buyer will pay more Federal Truth-in-Lending laws are also known as Regulation Z An agent shows a home to a couple and mentions that it has a lovely fireplace in the living room. After buying the home, the buyers and agent discover that the brick fireplace is just a decorative fireplace and is not "wood burning." Which of the following would BEST protect the agent from financial loss?E & O coverage.Under the terms of their listing contract, the owners may sell their house themselves and pay no commission. If their agent sells it, a commission will be due. What kind of listing contract do the owners have?Exclusive agency listing