PSI Exam Prep Oregon Real Estate Flashcards

PSI Exam Prep Oregon Real Estate Flashcards Usury laws were enacted to protect theborrower 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 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 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.At the time of harvest, crops that require annual planting are generally considered to be Personal Property.Too much leverage may result in?negative cash flow The buyer is assuming the mortgage presently on the property in the mount of $110,000. What is the adjustment made at closing?Credit buyer $110,000; no adjustment to the seller.Antitrust laws prohibit competing brokers from all of the following EXCEPT receiving compensation from both the buyer and the seller.A broker says, while showing a rural property, "This property has the world's purest well water." This would be an example of an expression of opinion, or puffing, which could lead to misrepresentation.A will has been drawn up leaving the family homestead to the owners' granddaughter. Once that has been done, the owners may make any changes they wish through a codicil or a later will.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 the seller $300; Credit the buyer $300.Ownership of common stock in a corporation gives an interest that is classified as personal property.A written agreement in which a purchaser agrees to buy and a seller agrees to sell is called a contract a major reason for buying and owning a condominium rather than a detached single-family home is that a condominium tends to be more affordable.The FHA functions MOST likean insurance company.The purpose of requiring an earnest money deposit in a real estate sales contract is to provide evidence of the buyer's intention to carry out the 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.If a borrower can afford to make monthly principal and interest payments of $1,000 and the lender will make a

30-year loan at 5-1/2%, or a 20-year loan at 4-1/2%, what is the largest loan (rounded to the nearest $100) this buyer can afford? (BE SURE TO USE THE AMORTIZATION

TABLE.)

$130,000

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 in the seller turns down the offer. When presenting the offer, the broker should tell the seller that the buyer will pay more.Without checking the facts, a broker who is the seller's agent tells a buyer that the property taxes in a particular neighborhood are among the lowest in the area. The buyer relies on the broker's statement and makes an offer on a house in the neighborhood. Before closing, it is determined that the taxes are actually among the highest in the area.The buyer could seek to rescind the contract on the basis of misrepresentation.Under a land contract for deed, who retains fee ownership of the property?Vendor A couple listed their home with a broker. After 2 months, the seller found a buyer, and the sale closed. The seller was not obligated to pay a commission to the broker. This listing was MOST likely an exclusive agency listing.A salesperson qualified a minority couple with two children and defined their price range as between $110,000 and $120,000 for the three-bedroom house they wanted. They asked to look at two listings in a nonminority neighborhood.The salesperson did not show them the properties because they were priced under $90,000 and had only two small bedrooms. Did the salesperson act appropriately and why or why not?no, because it is appropriate to show any property for which the buyer is qualified.The real estate broker who is listing a house for sale should personally verify the number of sq feet in the building.MOST closed real estate transactions should be reported to the IRS. REQUIRED information includes seller name(s) and social security number(s) and the sale price.The principal difference between zoning and planning as they relate to land use control is that zoning is a legal implementation while planning is a process.An appraiser MUST be licensed or certified to handle Federally related work on residential property valued at more than

$250,000.

An agency relationship between a property owner and a property manager is usually created by a management agreement.A deed restriction is applicable to the activities ofpresent and future owners.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