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exam smart practice exam Flashcards With the exception of real estate taxes, liens generally are
repaid at a foreclosure sale based on the:A » dollar amount
of the lienB » actual need of the creditors involvedC » recording date of the lienD » original date of the agreement that led to the lien being filed
- recording date of the lien
An offer to purchase contract was contingent upon the buyer receiving a loan. The buyer was not able to obtain financing. The buyer informed both the seller and the broker of the loan denial. Which of the following statements is true?A » The broker must pay cash for the propertyB » The broker must return the earnest money to the buyerC » The seller may have cause to sue the buyer for specific performanceD » The seller may keep the earnest money as a form of liquidated damages B » The broker must return the earnest money to the buyer A husband and wife go to a casino and lose $200,000, mostly on a credit line they opened with the casino. The casino starts foreclosure on the couple's home. If the foreclosure is successful, how much will the couple be allowed to keep from the equity in their home?A » $ 7,500B
» $30,000C » $ 15,000D » $ 0
- $30,000This law was revised on 1/1/06. Illinois law
allows $15,000 per family member protected from unsecured creditors, up to $30,000.A person was applying for a new VA loan on a single family home purchase. Which federal law was passed to ensure the buyer received disclosure of the total closing costs?A » Truth-In-Lending Laws (Regulation Z)B » The Equal Credit Opportunity ActC » Usury lawsD » The TILA-RESPA Integrated Disclosure Rules (TRID) D » The TILA-RESPA Integrated Disclosure Rules (TRID) A buyer's agent presents an offer to a seller. The buyer's agent is not acting as a dual agent. In relation to the
buyer's agent, the seller would be a(n):A » clientB »
customerC » principalD » prospect
- Customer
- beneficiaryThe beneficiary is the lender.
From which of the following persons may a salesperson lawfully receive a commission?A » SellerB » MLSC » The salesperson's brokerD » A cooperating broker C » The salesperson's broker A property was sold in a state using a trust deed as the form of security. Who benefits MOST from the holding of the trust deed?A » TrusteeB » TrustorC » BeneficiaryD » Landlord
When a tenant pays taxes and insurance in addition to
normal rent, this would be called a:A » graduated leaseB »
percentage leaseC » gross leaseD » net lease
- net lease
Which of the following is an example of involuntary alienation?A » WillB » ForeclosureC » DedicationD » Deed
- foreclosure
An Illinois rental finding service is employed by Helena to find her a suitable apartment. What can Helena expect?A » To receive lead-based paint and mold information before looking at any unitsB » To pay an upfront commission, not to exceed 5% of the first month's rentC » To only look at units in newer buildingsD » To sign a contract which specifies obligations of the service and fees to be paid D » To sign a contract which specifies obligations of the service and fees to be paid What does a standard title insurance policy cover?A » Questions of surveyB » Rights of parties in possessionC » Unrecorded liensD » Recorded title defects and liens D » Recorded title defects and liens A property manager is contemplating renting a space to a tenant with a mental disability. The manager is worried about this tenant posing a threat to the other tenants in the building. Under federal guidelines, what should the property manager do?A » Distribute leaflets to the other tenants about the new tenantB » Inform the property owner if the manager suspects any problemsC » Confer with a manager of a condominium to get another opinionD » There are no federal guidelines on this issue B » Inform the property owner if the manager suspects any problems The main difference between a cooperative and
condominium is that:A » a cooperative owner obtains fee
simple title to the unitB » a cooperative owner pays their own taxes and mortgage on the unitC » a condominium owner owns and finances their own unitD » a condominium owner receives a proprietary lease
- a condominium owner owns and finances their own unit
An item in a house that is usually easy and inexpensive to
remedy is:A » a structural foundation issueB » a roof
replacementC » major water leaks in a basementD » radon gas
- radon gas
In advertising for prospects, all of the following terms could
be used EXCEPT:A » political party affiliationB » military
personnelC » upper bracket buyersD » national origin
- national origin
A for-sale-by-owner lists a property with a broker. The broker puts the listing in the multiple listing service. The seller continues to advertise the property themselves. The seller then finds a buyer for their own property but still owes
a commission to the broker. This must have been a(n):A »
exclusive agency listingB » exclusive right to sell listingC » open listingD » net listing
- exclusive right to sell listing
A subordination clause in a mortgage does which of the following?A » It changes the priority of the mortgagesB » It cancels the mortgage after the final paymentC » It prevents the loan from being assumedD » It calls the loan due and
payable upon nonpayment A » It changes the priority of the mortgages A buyer purchased a seller's home and assumed the seller's loan. The seller does not want to remain liable for the loan. What should the seller do?A » Put in the sales
contract that the seller will not be liable anymoreB » Have the buyer agree to a release of liability in the sales contractC » Arrange for the title company to give a release of liability to the sellerD » Arrange for the lender to give a release of liability to the seller D » Arrange for the lender to give a release of liability to the seller
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