Hondros College- Real Estate Exam Principles and Practices

Hondros College- Real Estate Exam Principles and Practices Flashcards A lender must provide the Closing Disclosure to a borrower at least _____ prior to settlement.A) 1 business dayB) 3 business daysC) 3 calendar daysD) 5 business days b Suellen meets with licensee Nick to discuss selling the home where she has lived for 30 years. Suellen wants to purchase a condo in a new community and have enough to buy some new furniture without going into debt. She tells Nick she needs to make $215,000 on the sale. Anything he can get over and above that amount will be his to keep.This is an example of...A) exclusive agency listingB) exclusive right to sell listingC) net listingD) open listing c Milo, who is buying a house, was reviewing the deed when

he noticed the property description says: "Beginning at the

old oak tree, then South 15 degrees East, thence North 90 degrees..." What type of system is that?A) government surveyB) lot and blockC) metes and boundsD) plat map c In an attempt to avoid foreclosure, a homeowner asks his lender to accept a purchase price that is less than the amount owned on the property. This type of arrangement is a...A) deed in lieu of foreclosureB) deficiency agreementC) fiduciary deedD) short sale b David is buying a home for $240,000. He makes a down payment of $48,000. If he pays three discount points, what is the total cost of the points?A) $3,000B) $3,840C)

$5,760D) $7,200

c An acceleration clause in a mortgage allows the lender to...A) change a penalty in the borrower misses a paymentB) change a penalty if the borrower pays off the loan earlyC) declare the loan due if the borrower defaultsD) declare the loan due if the borrower sells the property c Phil owns shares in a corporation that gives him the right in a unit of a building that is owned by the corporation. Phil lives in a...A) condoB) cooperativeC) leasehold estateD) timeshare b A broker takes a listing from a seller. In the third month of the listing the seller had a fatal heart attack. Regarding the listing agreement , which statement is TRUE?A) The broker must disclose if the seller had the heart attack at the listingB) the broker must now reduce the priceC) the broker must remove the sign and the lockboxD) the heirs must

work with the broker to get the estate sold c Of these, which would be an unenforceable deed restriction?A) all lots in a subdivision must be at least half acreB) call my nurse complacent no more than one political sign in the yardC) no fences in the subdivision can exceed

• feetD) property cannot be sold to a woman

d

ABC remodeling corporation buys a new warehouse for their trucks and excess building materials. How will they take title?A) joint tenancyB) tenancy by entriesC) tenancy in commonD) tenancy in severalty d Which form of real property ownership is the MOST comprehensive?A) defeasible fee estateB) fee simple estateC) leasehold estateD) life estate b Brady, a licensed real estate broker, takes a seller's listing, but later decides he wants to buy the property himself.Brady can purchase the property for himself...A) if he gets someone else to represent the sellerB) if he discloses to the seller that he is the buyerC) only after the listing agreement expiresD) never; a licensee cannot purchase one of his own listings b Mike has always loved the little cottage at the end of the lane. One day, he knocks on the door and asks owner Carrie if she'd like to sell. She says she's not likely to sell.he offers to pay her $2,000 today if she would agree to contact him is she ever gets an offer on the cottage, giving him the opportunity to make the purchase before anyone else. This is an example of an...A) contingency clauseB) option to purchaseC) right of first refusalD) tendering performance c What is the purpose of requiring mortgages to make payments into an escrow account?A) Allow that borrower to obtain actual cash from the equity built up in the propertyB) ensure that hazard insurance and property are paidC) ensure the lender the additional interest on an adjustable rate loanD) provide a cushion for there borrower in the event of a job loss b Which information obtained from the client CANNOT be kept confidential?A) the boundary line of the property subject of the transaction is in disputeB) the current resident occurred on the property was diagnosed with HIV/AIDSC) A murder of a previous resident occurred on the property three years agoD) the neighboring property is a group home for developmentally disabled adults a Lester leases a storefront for his candy business. The rent the first six months was $500 and is set to increase 10% every month for the next 18 months as business takes off.Lester has what kind of lease?A) graduated leaseB) ground leaseC) index leaseD) percentage lease a Sheri, a young lady with disabilities, applies to rent a single family house. She states that she needs to install grab bars in the shower and a ramp into the house from the garage.

Landlord Don would violate federal fair housing laws if he..A) insists Sheri make the renovations and remove them when her lease is upB) makes the renovations at his own expenseC) makes the renovations but requires sheri to pay for the materials and laborD) refuses to allow Sheri to make the renovations d Which of these phrases would LEAST LIKELY be evidence of conspiracy to commit an antitrust violation if said by a