Nevada Real Estate Exam Prep Questions Flashcards

Nevada Real Estate Exam Prep Questions Flashcards

• An appraisal will bot help you with ________. Fair market interest - an appraisal is usually performed on

a price of property to help with buying, selling, eminent domain, estate valuation, exchanges do ownership, mortgage approval, property and other taxes, and various court proceedings.

• Most appraisers work ________.independently, on a fee-for service basis - to avoid conflicts

of interest, most appraisers work independently on a fee-for-service basis.When an agreement of the parties is demonstrated by their acts and/or conduct, this is known as what type of contract?

ImpliedExplanation: In an implied contract, the agreement

of the parties is demonstrated by their acts and/or conduct.**For this question, disregard selling costs, taxes, etc.

choose the closest answer:A parcel of land is sold for

$163,000. If it appreciates at 14% compounded per year and the seller keeps it for 7 years, how much will the seller pay for it?$65,000Explanation: To solve use the formula: V = P(1+r/n)^nt · V = future value of the investment ($163,000) · P = principal investment amount · r = annual interest rate (14%) · n = number of times that interest is compounded per year (1) · t = number of years the money is invested for (7) o $163,000 = P(1+0.14/1)^1*7 o $163,000 = P(1.14)^7

• $163,000 = P(2.5022) o $163,000/2.5022 = P o P =

65,142 o P = 65,000 The Real Estate Settlement Procedures Act (RESPA) explicitly prohibits an agent from paying kickbacks or

unearned fees. The act does NOT prohibit a:

brokerage referral fee.Explanation: RESPA prohibits the

payment of kickbacks or earned fees, but it does not prohibit brokerage referral fees.In order for a seller of a property to realize a final net amount of $362,000 after paying a broker's commission of 6%, what must the minimum sales price be (rounded to the nearest dollar)?

$385,106Explanation: The seller will realize 94% of the

sale proceeds after he pays the 6% brokerage commission.

$362,000/.94 = $385,106

A notary's acknowledgment of the signature on a deed is

necessary:

for the deed to be recorded.Explanation: All deeds,

mortgages, and similar documents must be acknowledged before they can be recorded.If a buyers earnest money check is returned for insufficient funds after being deposited into the brokers trust account,

the broker should:

Tell the seller or cooperating broker that the check

bounced.Explanation: Although the broker's client may be

able to replace the funds quickly, the broker should inform the cooperating broker/seller immediately. An unfunded bank check is material fact (and possibly fraud). Licensees should avoid the appearance of impropriety, protect the public and disclose material facts concerning a transaction.

• An express contract is ____.either written or oral - an express contract is created in

words, either written or oral. The other answer choices are not true.Which option best describes an exclusive-right-to sell listing?The listing agent will be paid the commission no matter

who procures the buyer.Explanation: When a principal

signs an exclusive-right-sell listing with a broker, the principal will pay the broker a commission even if the principal or another agent procures the buyer.

• All of these are good examples of severance

except______.dividing a single room into two rooms - severance is converting real property to personal property. When it is removed, it turns back into personal property.

• What financial instrument is given by a borrower to the

lender as a promise to repay a debit?a note - a note or promissory note, is evidence of a debt that can be resold.Which type of deed does NOT contain covenants or warranties?

QuitclaimExplanation: A quitclaim deed does not contain

covenants or warranties.Mark, a licensed broker, conveys an offer from his client to Janet, a licensed agent, wherein Mark's client wishes to purchase a 200-acre farm from Janet's client for $500,000, two 5-year-old tractors and 200 sheep. What would the consideration offered by

ValuableExplanation: Contracts must be bound by

consideration, offered by one party to induce another to enter a contract. Valuable consideration is anything of value which includes money, goods, personal services, exchange of property or the promise to deliver something of value. Valuable consideration may also consist of love and affection and is sufficient to support a gifted deed.

• A ______ is a promise of real property, kept by the

lender to secure the loan.note - the legal definition of a note, as it applies to real estate, is a promise of real property to secure a loan. While the complete term is promissory note, today's professionals simply use the term note and you should know that it refers to promissory note. The word promise in the question was a clue to the correct answer. (a mortgage is also a representation of debit obligation that the borrow keeps.The lender gets the note.) Charles wanted to offer to purchase Tony's home and engaged Mary to be his agent. When the offer was delivered to Tony, it had a provision limiting the time for acceptance to 48 hours. Tony rejected the offer. After thinking about it for 36 hours, Tony ca It was terminated when Tony first rejected the

offerExplanation: A rejected offer does not have to be

formally withdrawn or revoked, and automatically terminates an offer. An offer may also be terminated by an expiration date, communication or notice of revocation before acceptance, accepted counteroffer, or death or insanity of either the offeror or the offeree before acceptance.

• Subprime loans are usually an option for_____?people with subpar credit and come with a higher interest

rate - Subprime loans carry a higher interest rate because the bank/lender feels they carry the greatest risk of full repayment.

• When an agent is invested in a project outside his or

her agent status, this is called ________.agency coupled with an interest. - agency coupled with an interest is when an agent invests time or money in a property and also agrees that before doing so, he or she will be the agent ( but one is not conditional on the other).

• A buyer and seller agree to wait until the seller's listing

is expired to make the sale in order to avoid paying the broker his share. How can the broker get his commission?prove in court he was the procuring cause of sale - a court will likely grant commission to a real estate broker if he can prove he was the procuring cause of sale, even if the listing expired. Legally this is referred to as a broker protection clause.

• Which of the following is not a requirement for a deed

to be valid?recording in a county courthouse - although recording lets others know of the deed's existence and it is probably a

great idea, it is not required for a deed to be a valid document. Many lenders require that it be recorded, but recording is not required to make the deed valid.