Real Estate Exam Review Test Mississippi Flashcards

Real Estate Exam Review Test Mississippi Flashcards The need for a loan closing to be prepared on a Uniform Settlement Statement is a requirement of?RESPA - Real Estate Procedures Act A buyer made an offer on a building subject to an inspection. Disintegrating airborne asbestos fibers were discovered. This condition is called?Friable What is the listing broker's responsibility to a prospective purchaser?A broker must not use fraud or deceit The certificate of each real estate salesperson working for a broker shall be?Displayed prominently in brokerage office The buyers signs a contract for $123,000 and deposits $12,300 earnest money. The seller can't deliver good title.the buyer wants the deposit back. What does the broker do?Return the entire amount to the buyer Using borrowed money to finance an investment is called?Leverage A salesperson has written an offer and was given a check for earnest money. How should the check be handled?Give the check to their broker for deposit in the broker's trust account.Who is required to provide a property commission disclosure statement?A builder selling a new home Which of the following would be covered be Reg Z? A loan to an individual that is secured by a residence Strict Liability means that?An owner is responsible to an injured party without excuse.A home is listed for $100k and sells for $90k. The broker's commission is 7% of the selling price. The commission is?90,000 x .07% = $6,300 A Real Estate Broker is usually a what kind of agent?Special Agent ADA does not apply to?Employees that have few than 15 employees An implied contract is?A contract in which the intentions of the parties are shown by their actions?How many days does an agent have to send in the Cooperating Agreement with out of state real estate brokers to MREC after reaching the agreement to accept the referral?10 days Contracts for the sale of real estate must be in writing to be enforceable according to?Statue of Frauds "Trigger Terms" relates to?REG Z A woman build a fence that intended beyond the boundary of her property onto her neighbor's land. This is an example of?Encroachment When a broker discovers that one of his salespersons have violated the real estate license law the broker must?Notify the Real Estate Commission A building housing an insurance company existed before the property was rezoned residential. The building is now allowed because of?A nonconforming Use

Included among legal requirements of taking title to real property as tenants in common is that?Each co-owner's interest may be conveyed separately.An appraiser is estimating the value of a building that has a net income of $5k per quarter and a cap rate of 8% What is the value of the property?5,000 x 4 = 20,000.0020,000 divided by 8% = $250k A broker has received several offers for a property he has listed. The broker must present each offer to the seller by when?Promptly upon receipt of the offer A property is appraised at $300,000.00. The body uses a 52% assessment and 40 mills is the tax rate. What is the monthly rate?$520 - 300,000.00 x 52% = 156,000 x .40 = 6240 divided by 12 months.What type of listing is prohibited or discouraged?Net Listings A non resident may apply for a real estate license in MS if?licensed broker in another state, is a broker or salesperson affiliated with a resident or non-resident MS broker or Intend to maintain an office in MS In an option contract, the optionee has 30 days to exercise his option. The option is what kind of contract?Unilateral Contract Pledging property as security for a loan without losing possession of it is?Hypothecation A mortgage on four lots with partial release clause would be?Blanket Mortgage Federal fair housing laws prohibit discrimination on what basis?Sex Depreciation generally applies to?The building ONLY In an Exclusive Buyer Agency agreement, how many days can the buyer give to terminate agreement?The buyer can terminate the agreement upon 15 days written notice to the buyer's agent.A doctor listed his home for sale under an exclusive right to sell agreement. What will terminate the listing agreement?If the salesperson dies, the listing contract will be terminated.A deed must be signed by?Grantor - the one who gives the deed On the FHA loan, the buyer would NOT be required to?Make a 20% down payment on the loan What would not legally terminate a listing with a broker?Death of the salesperson The Residential Lead-Based Paint Hazard Reduction Act of 1992 requires licensees to do what?Licensees must ensure that all parties comply with the laws?Can Brokers place blind ads?NO A real estate salesperson may not prepare deeds because?It is illegal under the real estate license law What is NOT an essential to a contract?Earnest Money A comparable property sold for 250k and it has 200 more square feet than the subject property. If square footage contributes $30 per square foot, what is the adjusted value of the comparable?

$256,000.00

Can a real estate licensee appeal a hearing decision rendered by the real estate commission and if so how many days to they have to appeal?Yes, if the appeal is made within 30 days of the notice of the commission's action.

When a non-resident broker participates with a MS Broker?The MS Broker must file a cooperative agreement with MS REC A broker's license can be revoked if they? Negotiate a commissions based on the rate set by the local board of Realtors.If the BUYERS agent knows that the house her buyer wants has been the site of a murder suicide what should the agent do?Disclose it to the buyer before writing the offer, the buyer's agent is required to disclose even though it may be non material.When for any reason the owner fails or is unable to consummate the transaction, the broker must?Return the Earnest Money to the purchaser Real Estate broker is required by the REC regulations to keep all real estate records on file for a period of how many years?

• years

Inventory sold as part of a business would be transferred to the buyer by a ?Bill of Sale Is the licensee liable if there is an error in the Property Disclosure Statement?The licensee is not liable for an error in the PCDS unless they have actual knowledge of the error.Standing timber is legally considered to be what kind of property?Real Property What must a licensee disclose in their advertising?Their status as a real estate licensee, Any personal interest they have in a property being sold or purchased and Their company name when marketing properties on social media.A broker has listed a home under an exclusive right to sell listing agreement. The broker's commission is earned when?He finds a buyer, ready, willing and able to buy on the listed terms.The insurance report that tells about previous insurance claims is?CLUE - Comprehensive Loss Underwriting Exchange The salesperson is the agent of the?Broker the commission the listing agent has already negotiated with the seller Exclusive Buyer Agency, the commission is usually paid by?A broker sold a property in "as is" condition. Both seller and broker knew the plumbing was in disrepair. Would an action by the buyer for fraud be successful?Yes, the duty to disclose a material fact can't be avoided by an "as is" provision.A broker wants to list a house where the seller states that he is unwilling to sell to an Asian. The broker should do what?Not accept the listing The owner of a life estate in property?Is entitled to possession of the property A homes value is increased because of it's proximity to schools, parks, and transportation. These neighborhood sites are referred to as?Amenities What can a Real Estate broker NOT do with Earnest Money?Retain commission when refunding earnest money A buyer has contracted with a seller to buy property. The contract was dated January 1. The closing was on March

• What is the status of the contract on April 1?

Executed

When must a working with a real estate broker for be executed?Before obtaining information that might be confidential Any non-resident broker or salesperson must meet what Continuing Eduction?Meet MS continuing education requirements The Federal Equal Credit Opportunity Act requires that a rejected credit applicant to be informed, in writing, the reason within how many days?30 days A sellers agent does not have to disclose what? If seller has HIV/AIDS because it is a protected class and is not a threat to buyers.A real Estate Licensee can prepare a Broker's Price Opinion and receive compensation if?They are active and in good standing and the BPO meets the required standards and guidelines.A salesperson listed an owner's home under an exclusive right to sell listing contract. What is true about who the listing belongs to?Only to the Broker When must a licensee furnish a copy of an offer to the purchaser?At the time it is signed by the purchaser A land description that begins at a specific point and proceeds around the boundary of a parcel of real estate by reference to linear measurements and directions is?Metes-and-Bounds You look at four houses for sale in the same area and choose the house with the lowest asking price. You're probably easing your decision on the principle of?Substitution, no one wants to pay more than what they want for an equal property.What is not a material fact to be disclosed by a buyer's agent?Disclose provisions of the offer that are not favorable to the buyer.Brenda and Carl, a married couple, bought a principal residence in 1998 for $300k. They sold the property in 2012 for $600k. Capital gains on their profit will be?Answer is ZERO, married couples can make up to 520k on property without paying capital gains. Single can make up to 250k divided by .09 = 222,222.00The annual net income for an office building is $20k. If an owner realized a 9% return on her investment, the value of the building would be?Is a large crack in the living room wall a latent defect?No, it is visible.A homeowner employed a contractor to build a swimming pool. The owner did not pay, what time of lien is NOT represented by this lien?General Lien Which of the following reflects the stages through which a neighborhood passes?Growth, Stability, Decline, Revitalization Which of the following provides for money compensation to an owner whose land is taken for a new road?A lien of encumbrance If a buyer can afford a P&I payment of $1,200 and the amortization rate for 5 1/4% 30 year mortgage is $5.68 per thousand, how much money can the buyer afford to borrow?You don't use 5/14 at 30 year, $1,200 divided by 5.68 = 211.27. 211.27 x1000 = $211,267.61 A landlord allowed a tenant confined to a wheelchair to make several minor physical changes to an apartment.These changes are called?Reasonable accommodations or modifications