Oregon Real Estate Practice Exam Flashcards

Oregon Real Estate Practice 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 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.An easement can be terminated bymerger of the titles 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.A broker is developing a checklist to be used by licensees during the time period between writing a contract and closing. Which of the following items should be included in the "Property Inspections" section?A place to list repairs, who will pay, and when repairs are to be completed.A buyer wants to purchase a home for $60,000. The lender appraises the home for $58,000 and offers to finance it with an 80% loan-to-value loan, charging a loan origination fee of 1.5 points. How much will the buyer's loan origination fee be?$696 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 mentally disabled person who has been declared incompetent by a judge wishes to enter into a contract.Under what conditions can such a person do so?The person appointed by the court to act for the disabled person must contract on his or her behalf.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.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

A property is encumbered by a first mortgage of $60,000 and a second mortgage of $23,500. The property has just been sold at a foreclosure auction to a speculating investor

for $88,000. Assume that all costs of the foreclosure sale are included in these balances. Which of the following statements is FALSE regarding the distribution of funds?1.The first mortgagee receives $60,000.2. The second mortgagee receives $23,500.3. The second mortgagee receives nothing unless he forced the foreclosure auction.4. The former owner receives $4,500.The second mortgagee receives nothing unless he forced the foreclosure auction.

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.he real estate agency relationship is best described as thebroker's representing the principal.A property management plan may serve different purposes for different owners, and generally has to strike a balance between preservation of the property's value and generation of income. Which of the following owners would MOST likely prefer a property manager who emphasizes cash flow or income over the maintenance of value?An individual entrepreneur who owns several apartment buildings.A company agrees to lease a property to be used as a gambling casino. State laws prohibit gambling. This particular contract would be legally defined as void On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house with the closing set for April 1. What will be the seller's credit for the property taxes already paid if the buyer pays for the day of closing? Use a 360-day year and a 30-day month.$288 Even with title insurance, the policyholder may still suffer losses arising from land use change due to zoning ordinances.A broker represents a group of investors who purchase single family residences when they can be found at very low prices. Their offers are typically made with $500 deposits and cash closings within 7 days of acceptance of the offers. When the last property closed, the investors suggested the broker keep the deposit money to be used for their next purchase, as yet not identified. What must the broker do with these deposit funds?Return them to the purchasers.The sellers want to accept a purchase offer, but only if the price is raised by $5,000. What should they give the prospective buyer?Counteroffer.Even if a loan applicant's current income seems adequate to qualify for a certain loan, the Equal Credit Opportunity Act allows a lender to refuse the loan as a high risk if the applicant's main source of income is commission sales 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 builders 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.