Mass Real Estate National Exam Flashcards

Mass Real Estate National Exam Flashcards 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.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.A judgment has been properly recorded. Any subsequent purchasers, whether they have actually examined the record or not, have been given constructive notice The FHA functions MOST likean insurance company.State laws differ on whether a buyer is entitled to know about a suicide that occurred in the house last year.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.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 major difference between freehold and nonfreehold estates is that all freehold estates are of indeterminable duration.Which rule-of-thumb formula for estimating property value is being offered to an investor who is told that a house renting for $900 a month should sell for about $90,000?

GRM A buyer is getting a fully amortized loan for $220,000. The bank will give the buyer the loan for 15 years at 5 1/2% or for 30 years at 6 1/2%. To the nearest dollar, what is the difference between the monthly payments for these two loans? (BE SURE TO USE THE AMORTIZATION TABLE.) 407 An owner lists her home at a 7% commission rate and wants to net $45,000 after paying the mortgage balance of $68,000 and the broker's commission. To the nearest dollar, what should the selling price be to net her $45,000?

$121,505

Failure of a real estate agent to comply with Fair Housing practices is punishable by license revocation and criminal prosecution.

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.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.A realty firm has just entered into an agreement to represent a home builder in the sale of a new subdivision.The firm has located several potential buyers and five homes have been sold to purchasers that the firm's agents have contacted. The realty firm has an agency relationship with the builder.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.An appraiser MUST be licensed or certified to handle Federally related work on residential property valued at more than

$250,000

Antitrust laws prohibit competing brokers from all of the following EXCEPT receiving compensation from both the buyer and the seller.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.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 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.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 legal easement can be created by any of the following

EXCEPT

merger of the titles.Which restrictive covenant would be considered illegalcovenant that restricts selected parcels within a defined subdivision 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.Unrepresented buyers ask the licensee who listed the home whether they should order a property inspection as a part of their due diligence for the purchase of the home.Which of the following would be the most appropriate way

for the listing agent to respond?If you feel it is in your best interest, please do so.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.Although states make specific laws governing water rights and the rights in land that borders water, most states