Real Estate Exam Multiple Choice Flashcards

Real Estate Exam Multiple Choice Flashcards Who is the person who obtains a real estate loan by signing a note and a mortgage?A. MortgagorB.BeneficiaryC. MortgageeD. Vendor

• Mortgagor

When determining whether a borrower is qualified to obtain

financing, a lender will look at the following except the:A.

Borrowers credit scoreB. Borrowers credit payment historyC. Condition of the property the borrower which is the purchaseD. Amount of money the borrower has as a down payment

• Condition of the property the borrower which is the

purchase Which of the following is not a duty owed to both parties?A.ConfidentialityB. Providing accurate informationC.ObligationD. Disclosure of adverse material facts

• Obligation

A buyer has just closed on a VA loan. Due to the amount of the guarantee and the purchase price of the property, the buyer did not have to put any money down. What kind of title does a buyer receive at closing?A. Legal titleB.Equitable titleC. Quit claim titleD. Trustees title

• Legal title

What kind of mortgage does a buyer recieve when a seller acts as a lender and grants a loan to the buyer for a portion of the purchase price?A. Blended rate mortgageB.Package mortgageC. Purchase money mortgageD.Buydown mortgage

• Purchase money mortgage

Which land-use is permitted with the understanding that it will eventually be illuminated?A. Nonconforming useB.VarianceC. Down zoningD. Spot zoning

• Nonconforming use

A licensee would not do which of the following in regards to secondary market mortgage fraud?A. Report aparent fraud situation to the department of financial institutionB. If asked to rewrite an offer, prepare it accuratelyC. Get suspicious requests from lenders in writingD. Continue with the transaction, placing the clients interest first

• Continue with the transaction, placing the clients interest

first A similarity between condominium and cooperative

ownership is:A. All owners have equal percentage

interestB. Both condominium and Cooperative owners have a real property interestC. Both condominiums and cooperative are likely to be managed by an associationD.To transfer ownership of either a condominium or cooperative, the grantor would use a deed

• Both condominiums and cooperative are likely to be

managed by an association How should a buyer draft a second counter offer so The counter offer includes the first three items of the first counter offer?A. Write a new offerB. State the terms of the

second counter offer and incorporate the first three items of the first counter offer by referenceC. Re-issue the first counter offer with a multiple counter offer to incorporate any additional changesD. These provisions cannot be included because the seller rejected them

• State the terms of the second counter offer and

incorporate the first three items of the first counter offer by reference

What is the effect of a transaction if a buyer accepts a sellers WB - 46 multiple counter proposal?A. A binding contract for sale is createdB. The seller must accept the multiple counter proposal before it is bindingC. The first buyer to accept and deliver the multiple counter proposal back to the seller will become the primary buyerD. The buyer that does not become the primary buyer will automatically be put in secondary position

• The seller must accept the multiple counter proposal

before it is binding Which of the following liens takes priority prior to being recorded in public records?A. Construction lienB. Special assessment LaneC. Tax lienD. Mortgage lien

• Construction lien

When performing a market analysis, a licensee compares a

properties amenities:A. To allow for depreciationB.

Because no two properties are the sameC. To obtain assessed valueD. To reflect changes in the marketplace

• Because no two properties are the same

Which of the following statements best describes loan insurance or a loan guarantee?A. If a borrower is unable to pay, the monthly mortgage payment will be madeB. If a borrower dies, the mortgage is paid offC. If the property declines and value the buyer will not lose equityD. If the borrower is unable to pay, the lender has some protection against potential loss

• If the borrower is unable to pay, the lender has some

protection against potential loss Buyer makes a written offer and the seller changes some of the terms of the offer, signs it, and delivers it back to the buyer. what is the status of the offer?A. It is a contract for saleB. Does a contract for sale but does not include the sellers revised termC. It is a contract for sale if the buyer initials the sellers revisions delivers it back to the sellerD. It is a rejection of the offer and a presentation of a counter offer

• It is a rejection of the offer and a presentation of a

counter offer The best way to determine the permitted use for a

particular property is to:A. Refer to the state statutes

regarding the land-useB. Refer to local ordinancesC. Look it up in the MLSD. Ask the existing landowner

• Refer to local ordinances

Who establishes loan amounts for FHA insured loans?A.State governmentsB. Rural developmentC. The department of housing and urban developmentD. The primary mortgage market

• The department of housing and urban development

When entering a WB - 36 buyer agency/tenant

representation agreement:A. A licensee must give agency

disclosureB. The buyer must use a separate form if the buyer selects multiple representationC. The buyer must agree to multiple representationD. Agency disclosure is not required because the agent will be representing the buyer

• A licensee must give agency disclosure

What is a feature of a conventional fixed rate mortgage loan?A. Borrowers must have 20% down paymentB. They are easier to qualify for than non-conforming loansC.Borrowers must purchase private mortgage insurance if the down payment exceeds 20%D. Lender does not sell them to the secondary market

• Borrowers must have 20% down payment

A borrower has obtained alone amortized over 30 years, but the borrower needs to pay it off in five years. This is

most likely:An adjustable rate loanB. A fixed rate loanC. A

balloon loanD. A land contract

• A balloon loan

What property does not need to have a tightness test conducted an underground storage tanks?A. An owner occupied propertyB. Properties with a tank of less than 1100 gallonsC. Any residential propertyD. Any property with a youth of more than two families

• Properties with a tank of less than 1100 gallons

Which of the following statements is most correct regarding a buyer and a firm that have entered into the WB - 36 buyer agency/tenant representation agreement?A. The buyer must conduct all negotiations through the buyers firmB.The buyers firm must be involved in property showings were the buyers concernedC. If the buyer purchases the property covered under the agreement, the buyer will owe the firm commissionD. Buyer is not allowed to work with other firms or the seller directly during the terms of the buyer agency agreement

• If the buyer purchases the property covered under the

agreement, the buyer will owe the firm commission A licensee would be acting appropriately by giving a party

the following information:A. Advice on how to title

propertyB. How to use the multiple counter proposal to negotiate with more than one buyerC. Whether an offer is void because the buyer did not submit a timely long commitmentD. Using a real estate license prevent a party from needing the services of an attorney

• How to use the multiple counter proposal to negotiate

with more than one buyer A selling licensee procured a buyer for another firms listing.

The selling licensee is:A. An agent of the buyerB. An agent

of the listing firmC. A customer at fireD. A principal firm

• An agent of the listing firm

What is the purpose of the expiration date on line 23 of the sellers WB - 46 multiple counter proposal?A. It serves as a safeguard for a buyer because the seller may not cancel before the deadlineB. Represents the latest time a buyer may return the approved multiple counter proposalC. It indicates that other buyers cannot respond before the deadlineD. It Represents the deadline for any buyer counter offers

• Represents the latest time a buyer may return the

approved multiple counter proposal A recorded instrument that place is private restrictions on

land is a:A. Zoning restrictionB. Deed restrictionC. Writ of