Louisiana Real Estate Practice Exams National Flashcards

Louisiana Real Estate Practice Exams (National) Flashcards

Depreciation is calculated based on the: cost of the building only

A four-bedroom house with one bathroom carries a market value of $120,000. The same house would likely be worth $125,000 if a bathroom could be easily added for a cost of

$10,000. This is an example of:

incurable functional obsolescence When discussing the concept of total square footage with your client, what is the BEST way to describe how the total square footage is measured?Total Area Under Roof (TAUR) A licensee has an agency representation agreement with a buyer. When showing another company's listing, what obligation does the licensee have to the seller and the listing broker at the other company?Disclose the agency relationship when arranging the showing and disclose material information about the buyer if presenting an offer When a principal authorizes an agent to perform a

particular act or transaction, it is an example of a:

special agency 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 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 A minority couple come to a salesperson looking for a house. The salesperson has some properties for which the couple qualify but avoids showing or mentioning these listings. Instead, the salesperson shows only properties in low-priced and integrated neighborhoods. This practice is

known as:

steering According to the principle of progression, a three-bedroom, one-story home is MOST likely to bring the highest sales

price if located in a neighborhood in which:

most homes are larger than the sale home An owner lists his home and agrees to pay a 6% commission provided he nets $10,000 after paying the commission and the balance of his mortgage, which is $75,000. To the nearest dollar, what should the selling price be to net the owner his $10,000?

$90,426

A deed restriction is applicable to the activities of:all owners, present and future

Zoning regulations and decisions are usually handled by:towns and cities

Salesperson Susan was at the local coffee shop with some agents from other offices. The subject of commissions came up, and agents began to compare their commission

rates. Susan should:

advise her friends this could constitute a violation of Sherman Antitrust Act 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 A joint tenant may transfer his or her interest under which of the following circumstances?At any time, without permission or approval, but the purchaser will not be a joint tenant The zoning of a property with a gas station is subsequently changed to allow residential use only. Which of the following is true regarding the future use of the gas station?The gas station may continue in its current use 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 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 Which of the following is most likely to be a factor used in a Competitive Market Analysis?date of sale Which of the following types of depreciation is generally incurable?Economic obsolescence A competitive market analysis takes into consideration:square footage of the subject property A written agreement in which a purchaser agrees to buy

and a seller agrees to sell is called:

a contract 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 A salesperson in a branch office is sued for damages by a buyer after the salesperson misrepresents a property. Who has the ultimate responsibility for the salesperson's actions?the supervising broker A competitive market analysis most likely determines the:probable price of the property 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

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 Three identical homes in a neighborhood were listed at the same time in a market where demand was constant.According to the law of supply and demand, which would have sold for the lowest price?The first sold A seller's statement in a property disclosure document

means:

the owner is disclosing known latent defects 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 An environmental impact statement typically describes the

effects of a proposed project on factors such as:

public health and safety Which of the following grants zoning authority to municipal governments?State enabling acts Earnest money should be deposited into a trust account:in a timely manner, according to state laws A managing broker can be held responsible for: all real estate activities of salespersons For Regulation Z to apply, a creditor is someone who extends consumer credit more than 25 times a year or more than _____ times a year if the transaction involves a residence as security.5 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 has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the broker has earned his

commission when:

the seller accepts the offer What is a method of land description that identifies a parcel by its shape and boundaries?Metes and Bounds A landowner wishes to build a neighborhood grocery store on a busy street in an area zoned for residential use. Which of the following would MOST likely be used to obtain permission for this store?Conditional use permit or zoning variance A buyer researches the neighborhood and purchases the property with the lowest asking price among several similar properties. This is an example of valuing using the Principle

of:

Substitution The buyer wants to make the purchase offer contingent on a complex mortgage arrangement. The buyer's agent who

is drawing up the contract should:

suggest the buyer ask a lawyer to furnish the wording

After unsuccessful negotiations, Joe went to court to gain regular access to his property. The judge likely granted Joe

a (an):

personal easement in gross 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 Under the common law of agency, licensees owe the broker with whom they are associated all of the following

duties EXCEPT:

indemnification A salesperson lists a property with a contract that allows for

subagency and dual agency. The salesperson is:

an agent to the broker and a subagent to the principal

The FHA functions MOST like:an insurance company

When a listing broker is preparing an Offer to Purchase for a buyer customer, contingencies involving inspections or

approval by a third party should:

have short deadlines An agency relationship between a property owner and a

property manager is usually created by:

a management agreement A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want to make the permission permanent in case he dislikes others who might move next door in the future. What should he give his neighbor?A license The main difference between tenancy in common and joint tenancy is that with tenancy in common, when a co-owner dies, his undivided interest passes to his heirs To what party or parties does the broker owe the fiduciary duty of care?the party or parties employing the broker

Real property can be converted to personal property by:severance

When compiling a competitive market analysis, a broker

would look for comparable properties that:

were located near the property being listed

Federal Truth-in-Lending laws are also known as: Regulation Z

Antitrust laws prohibit competing brokers from all of the

following EXCEPT:

receiving compensation from both the buyer and the seller Which of the following consumers would be able to derive the most benefit from a reverse mortgage?A couple in their late 60?s who need to tap their home equity to help cover their expenses but do not want to sell their house

An escheat occurs when:a property owner dies without heirs or a valid will

Even with title insurance, the policyholder may still suffer

losses arising from:

land use change due to zoning ordinances A judgment has been properly recorded. Any subsequent purchasers, whether they have actually examined the

record or not, have been given:

constructive notice An exclusive right to sell listing obtained by a broker

associate belongs to:

the employing broker only Even after an offer has been accepted and is binding, the buyer and seller may still choose to sign mutual release papers rather than proceed to closing. Which of the