Real Estate Basics and Beyond Practice Exams Flashcards

Real Estate Basics and Beyond Practice Exams Flashcards A licensee must place the interests of his client before all others in negotiation of a transaction except where that duty of loyalty is going to violate his legal duties to a customer or to another client in a dual agency A property was listed by Alpha Brokers and was submitted to the MLS. Two weeks larter and offer was submitted to the Alpha Brokers from the Beta Brokers Based on this information, Beta Brokers has to be paid directly to the buyer.Regarding income taxes which of the following is false?All investment and business property can be depreciated over 27.5 years.A title search will reveal all of the following exceptconstruction defect Because George's property boundary is the high water makr of a lake, when the water gradually receded from its usual high water mark George the land has become George's property. This is an example of reliction The comission which a seller's agent will receive for selling property is determined by negotiation between the broker and the seller Local government persmission to operate a childcare center in a residnetial area would be termed a conditional use permit Sam orally agreed to buy a lot from Ella for $90,000. Under the Statuate of Frauds after Sam begins to develop the lot, with Ella's oral permission, Ella cannot terminate transaction on the basis that the agreement was oral Which of the following is true of a spot survey It shows the location of easements, encroachments, and improvements After Ken stopped into an open house, he decided that he would like to make an offer. Barbi, the agent holding the open house may do which of the following?Wirte the offer without representing Ken, but advise Ken he might want to consider obtaining his own agent.In order to qualify for a loan, a buyer may have to satisfy certain qualifying ratios. Which of the following is true regarding these ratios?A back-end ratio relates payment on long term debt to total gross income.Leo put his home up for sale for $450k When is did not sell he spent 5k to paint and upgrade the appearance of the property. As that point his agent recommended relisting the property for $460k. Instead Leo decided to replace the kitchen and spent $30k doing so. At that point his agent recommended relisting for $480. This is an example of the principle of dimishing returns Steve and Allen are licensees in the same real estate office. Steve has listed a home and Allen has a buyer who wishes to make an offeron the home. The policy of their company is that in these situations neither Steve nor Allen will remain agents of the seller or buyer, but instead will be

neutral and attempt to assist the party with home they have been working in concluding the transaction. Tnis is an example of a facilitator realtionship When a trust deed is used as a security instrument in real estate financing, the beneficiary is the lender Zoning cal be all of the following except retroactive

Sam was renting property from George under a 5 year lease with 2 years remaining. He was paying $2k a month rent on a net lease. Wuincy agreed to lease the property from Sam for the remainder of the term for $2500 a month.Under these circumstances Sam has subleased to Quincy.Fran, Ann and Jan own a property as joint tenants. As a result if Fran dies, Jan and Ann would each have 50% ownership as joint tenants A buyer made an offer at less that the asking price. The seller made a counter offer. The buyer would not accept the counteroffer. The seller then agreed to accept the first offer. The situation now is that the seller could make an offer to the buyer at the original terms offered by the buyer which could become a contract if accepted by the buyer.What law prescribes the rights and duties between a property manager and his clients?Law of Agency Which of the following is true of real estate securities?A rental pool is a security when participation is required with the purchase of a condominium.A veteran may obtain federal VA financing for the purchase of a home any number of times, as long as he has eligibility Broker Anderson is holding an open house on one of his listings. A prospective buyer asks him how much he thinks the houseis worth and if the sellers would take less than the askingprice. How should he respond?Tell the buyer that he is only authorized to present the property at the listed price, but that he is obligated to present any written offers the buyer would like to make.When one party performs part, but not all of his contractual obligations and the other party relives him of the obligation to perform the rest, this may be called accord and satisfaction In a real estate officethe affliated licensees are agents of the broker The shared wall between two townhouse units is called aparty wall Rob and Roy are licensees in the same real estate office.Rob has listed a home and Roy has a buyer client who wishes to make an offer on the home. The policy fo their company is that these situations, Rob will remain the agent of the seller and Roy will remail the agent of the buyer. This is an example of a designated agency relationship in which Rob and Roy are single agents.George, a buyerm asked his agent Denny to find out why the owners were selling an advertised property.Denny soeaks with Neil, the sellers listing agent, and was told the owner had purchased another home cannot afford the payment on both homes and is in danger of significant financial damage if he cannot sell quickly. Neil does not inform Denny that the seller did not give permission to disclose this info. If Denny discloses this info to George, the seller can hold Neil liable for disclosing confidential information In representing a buyer in the purchase of a property, the agent made a number of statements regarding the suitability of the property for the buyers intended use that turned out to be inaccurate. HE also worded a contingency

in a manner that did not adequately protect his client.WHen the buyer sued the agent and the brokerage, the broker contacted the insurance agent that sold him bis errors and omissions insurance policy In Shelly vs Kramer, the Supreme Court held that restrictive covenants dealing with race are unenforceable Hal has an adjustable -rate loan with a payment cap that allows him to pay less than the amount needed to pay off