Real Estate Express Post-License Final Exam Study Questions and

Real Estate Express Post-License Final Exam Study Questions and answers Flashcards What are some ways licensees can transfer risk? when citing facts about a property, attribute the source of the informationrefer clients to public sources to obtain specific informationhave errors and omissions insurance What must a broker do when a licensee leaves and goes to work for a different broker?the former broker must sign a release form and send it to the Commission.The ultimate outcome of a decision or series of decisions is what?The possibility of risk Why must an attorney be involved in closings? All legal documents used at closing must be prepared by an attorney.-A broker or closing agent can manage the proceedings at closing.When would a personal assistant working at a Brokerage need a license?If they're explaining simple contract to prospective buyers.They do not need a license if they are only performing ministerial acts.What must be proven in order for a salesperson to reinstate a lapsed license?Any salesperson whose license lapses for failure to complete the post-license course may reinstate the license by completing the course within six months of the lapsing of the license, if ALL of the following conditions are true(1) The licensee enrolled in the post-license course within one year of the issuance of an original license(2) He or she paid all required fees for the course(3) The licensee failed to complete the class requirements, can produce a medical doctor's certificate explaining the incapacitation which caused the failure to complete the course OR shows proof that the failure was due to cancellation of the course by the approved school.Would you have to pay the same amount if you renew your license online?Renewing a license on-line will result in a discounted fee to the licensee.Dan and Sally purchased their first home for $95,000. They put 10% down and got a 90% mortgage. How much is the intangible recording tax on their new home?

• 95,000 (cost of home) x .90 (% of mortgage) = $85,500-

85,000 (new debt) / 500 = 171- 171 x $1.50 = $256.50Intangible taxes are based on the amount of a Mortgage Loan.When calculating Intangible taxes, divide the NEW debt by $500, round up the fraction and then multiply the result by $1.50($85,500 / $500 = 171 x $1.50 =

$256.50)

What would be considered as additional living area?A game room added directly onto a house with a separate central heat/AC system.What is the difference between a "resident manager" and a "property manager"?-the resident manager usually lives on the property. A property manager does not have to live on the property.Grant sold his home for $275,650. What is the total transfer tax due on the sale?Multiply the sale price by .001 (1/10th percent)$275,650 x .001 = $275.65.(Don't deduct an original mortgage but do

deduct any "assumed" loan amount from the price before calculating the tax).

what is tenancy by the entirety?A form of ownership by married couples that is derived from the religious concept that a married couple become one person. Therefore, each party owns 100% of the property.-it is rare, but in some states How long do real estate documents such as listings, buyer agency contracts, sales contracts and settlement statements have to be retained by the brokerage?

• yearsloan applications do not have to be retained for 3

years.What are you violating when you "over promise" profits?It would be a violation of License Law for a licensee to promise or guarantee a buyer that the property will increase in value and the buyer can profit for a sale later.What is a violation of Fair Housing laws, in regards to familial status?Denying housing to families with children under the age of 18, as well as pregnant women.What is an exposure pathway?The means by which a hazardous substance travels from its safe containment to, and then into, a human being What is often the most observed area of unintentional misrepresentation in real estate lawsuits?Measuring the structure of a property, because most licensees are not skilled in floor areas, etc.What is the difference between a transaction broker and a real estate agent?The transaction broker CANNOT disclose confidential information, suggest an offering price or terms, or participate in the negotiation process in any way other than carry the offers back and forth.To be an agent, a licensee must have a written brokerage services agreement with a client.What is an example of unequal reference? White and Hispanic What can a licensee do in regards to environmental hazards?study and become more knowledgeable about them.- we are not qualified to do inspections or assessments for customers/clients.What are some of the acts that address Civil Rights and Fair Housing?The Civil Rights Act of 1866 - the basic law affecting discrimination according to Race in the use or occupancy of any kind of real estate, including land, commercial and residential.The 1896 Supreme Court Case Plessy V.Ferguson, established the ruling that "separate but equal" was okay. It wasn't repealed for sixty years until The Civil Rights Act of 1964.Fair Housing Act (Title VIII of the Civil Rights Act)1968 - prohibits discrimination in the sale, rental and financing of dwellings based on race, color, religion, sex or national origin.1974 - Congress amended the Fair Housing Act to include gender.1988 - (effective March 12, 1989) - amended to include disability or familial status Where/When might diversity occur?a communityan officea neighborhoodin pricingin reputationsDiversity can be either a good thing or a bad thing, depending on how your organization chooses to treat it.Who does the Ernest money belong to and when must it be deposited?Ernest money belongs to the buyer until (and perhaps after) closing.It must be deposited in a federally insured trust or escrow account on receipt unless the parties have

agreed otherwise in writing