Real Estate Final Exam National Portion Flashcards

Real Estate Final Exam (National Portion) Flashcards

A contract with a mentally incompetent person is: unenforceable.(not correct)

The Principle of Substitution states that no one will pay

more for a property than:

a substitute buyer would have paid for the same property.(not correct) In 1988 the Federal Fair Housing Act was amended to add which of the following protected classes?Religion. (not correct) Answering an offer by changing some of the terms and

offering the new terms back to the original offeror is called:

revision.(not correct) During a recent Board meeting, the Board's membership agreed that cutting commissions to gain market share would harm the industry as a whole and agreed to set certain limits on Board members and what they could charge for their services in the marketplace. Is this legal, and why?Yes this is legal since Anti-Trust laws do not apply to private Board members and the setting of their respective pricing.(not correct)

Injunctive relief:is to prevent future discrimination.

A licensee working for a buyer notices that the floor slopes badly in one section of the house. The buyer's agent should advise the buyer to get an expert to get an opinion as to the cause of the slope.You list your property for sale with a broker. The listing contract stipulates that the seller will receive $110,000 "net," with all proceeds over $110,000 being the broker's

commission. This type of listing is:

a net listing.The lessee signs a six month written lease and pays the rent timely. The landlord sells the property just two months

later. The new owner:

legally must honor the lease for the remainder of the term.A drunken man signed an offer to purchase. The contract

that he signed is:

Valid. (not correct) Agent Johnson has been appointed by his broker as the agent of the seller in a listing agreement. Only Agent Johnson represents the seller, no one else in Agent

Johnson's office. Agent Johnson is best described as:

a designated agent.All of the following would be public land use controls

EXCEPT

deed restrictions You are managing a property that has a one year written lease signed 3 months ago. The landlord dies. The new owner wants to manage the property himself when your

management contract expires in one month. You should:

turn over the security deposit and the lease and tenant information to the new owner at the end of your contract.A summary of all the recorded instruments affecting the title to a property is called a(an) Escrow. (not correct) The term "mother-in-law suite"is considered a common physical description A property is sold which includes an old bakery business which has been in existence on this location for years. After

the purchase, the property is rezoned as residential land but allows for the bakery under a grandfather law. The new property owners wish to continue operating the bakery business, but would like to demolish the old bakery and build a new modern version with more conveniences built-in. What will the bakery's new owners likely be able to do?The new owners may continue operating the old bakery, but they may not build a new one without further

permission A grantor wishes to convey title to a grantee in a deed that creates the least protection for the grantee. The grantor

should give the grantee a:

General Warranty deed.(not correct) A property is for sale without air conditioning. A buyer wants to know if the value of the property will be increased if he installs air conditioning. He also wants to know if the sale is a good deal considering there is no air conditioning.

The best way to establish the value of the home is to:

ask the agent based on his knowledge if this is a good deal. (not correct) The Americans with Disabilities Act states that any employer with _____ or more employees must adopt non discriminatory employment procedures

• (not correct)

A property is valued at $85,000 and assessed at 50% of its value. The tax rate is $3.50 per hundred. How much are

the taxes?Select one:

$1487.50

UFFI isan insulation that was used in mobile homes and renovations until determined to be an irritant.The most important step for a property manager is a property management agreement Lenders help protect themselves from loss by using:high loan to value ratios.(not correct) Under which of the following conditions is a mutual release unfair to the agent?Buyer finds a better property In the appraisal of a public building, an appraiser would most likely select to apply which of the common methods of appraisal?Sales Comparison Approach. (not correct) An agency is best described as when the: agent represents the agent. (not correct) While showing property to a prospective purchaser, an agent tells the purchaser that this is the nicest house in the neighborhood. After buying the house, another house in the neighborhood sells for more money and the buyers of the first house realize that the other house is a nicer house. In

this situation, the agent is guilty of:

Misrepresentation. (not correct) Which of the following concepts or requirements was NOT a result of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) of 1980?the $9 billion Superfund(not correct) All of the following describe violations of antitrust laws

EXCEPT:

two brokers agree that they both will pay 2.5 percent of the sales price to cooperating brokers on all listings published in an MLS after the date of the specified agreement.(not correct)

Refusing a tenant on the basis of their profession isillegal. (not correct)

The existence of ghosts:is not a material fact.

The profit that is excluded from taxes for a married couple selling the home that has been their primary residence for

at least 2 of the last 5 years is:

$250,000.(not correct) An equal housing opportunity logo or statement should appear

• in all office leasesB. in all purchase agreementsC. in all

residential adsD. all of the above; (not correct) Which of the following types of depreciation is generally incurable?Physical depreciation. (not correct) Salesperson A for broker B has listed a home. Salesperson C for broker D is trying to sell the home to his own buyer.Salesperson C is a designated agent. Salesperson C is

primarily responsible to:

his own buyer.All of the following might legally terminate a listing with a

broker EXCEPT:

bankruptcy of the client. (not correct) When a signature is acknowledged:it is legal evidence that the signature is voluntary and genuine.What is the best explanation of when does an offer become a purchase agreement?When the seller accepts and signs an offer to purchase.(not correct) A triangular parcel of land was 393 feet on the base and 600 feet along the side perpendicular to the base. How many acres of land did the parcel contain?approximately 1.5 acres. (not correct) The relationship of the broker to the listing owner who hired him or her is best described using which term?fiduciary According to RESPA and TILA regulations (TRID), at the time of loan application the lender must follow all of the

following disclosure rules EXCEPT:

Lender must provide a loan denial letter and information on how to obtain credit report within 3 days.(not correct) A competitive market analysis most likely determines the:probable price of the property.On the Closing Disclosure Form or Settlement Statement, pre-paid real estate taxes would result in what type of entry?credit to buyer. (not correct) Which of the following terms are not discriminatory based on handicap?

• fourth-floor-walk-upB. walk to bus stopC. jogging trailsD.

all of the above You receive a monthly salary of $600 plus 3.5 percent commission on all of your listings that sell and 2.5 percent on all of your sales. None of the listings that you took sold last month, but you received $8,460 in salary and commission. What was the value of the property you sold?

$314,400

An appraiser is developing an operating statement to

determine effective gross income. The appraiser should:

divide the annual net operating income by the capitalization rate.(not correct) The disadvantage of a balloon loan is which of the following?The interest payments increase during the loan.(not correct)

Agents must disclose:A. representation in writingB. dual agency in writingC.

material facts related to property condition.D. All of the above.