Real Estate National Exam 3 Flashcards

Real Estate National Exam 3 Flashcards A property is advertised for sale on the radio. What part of the advertisement involves a trigger term?A. the house is in a neighborhood of beautiful homesB. the house is close to schools and churchesC. easy financing is available to qualified buyersD. the seller offers an interest rate of only 5% on purchase mortgages

• the seller offers an interest rate of only 5% on purchase

mortgages Who in a transaction would be the borrower?A. vendorB.vendeeC. trusteeD. mortgagor

• mortgagor

A license holder in an agency relationship:A. owes a

fiduciary duty to customersB. must treat all parties with honesty and fairnessC. supports and defends the best interest of customersD. is not responsible for accounting of funds held in a transaction

• must treat all parties with honesty and fairness

A property is advertised as "For Sale by Owner." The seller owns 2 homes. The seller receives several offers and chooses the buyer based on the buyer's national origin.Neither party is represented by a broker. Which of the following is true about violation of the Fair Housing laws?A.The seller is in violation of the Fair Housing ActB. The seller is not in violation because his actions do not involve a brokerC. The seller is only in violation for 6 monthsD. The seller is only in violation for 2 years

• The seller is not in violation because his actions do not

involve a broker Which of the following statements about the lead-based paint disclosure is true?A. The seller must keep a copy of the disclosure for 4 yearsB. The disclosure allows the buyer to waive the right to a lead inspectionC. It must be provided for all properties built before 1979D. It gives the buyer the right to have an inspection within 14 days of the effective date of the contract

• The disclosure allows the buyer to waive the right to a

lead inspection The right to use a neighbor's private road for entry and exit to your property, which would pass to a buyer upon the

sale of your property, is best described as:A. an easement

in grossB. an easement appurtenantC. a licenseD. a prescriptive easement

• an easement appurtenant

The direct sales comparison (market data) approach would

be MOST appropriate for establishing the value of a:A.

5-year-old single-family houseB. duplexC. churchD.working farm

• 5-year-old single-family house

What is the difference between replacement cost and reproduction cost of a building?A. Both approaches describe a building with the same usefulness, but the

replacement cost uses modern materials and methods, while reproduction uses historic materials.B. The replacement cost is about style and appearance while the reproduction cost duplicates the buildingC. Physical, functional and economic obsolescence all reduce replacement costD. Only the reproduction cost is concerned with the utility of the building

• Both approaches describe a building with the same

usefulness, but the replacement cost uses modern materials and methods, while reproduction uses historic

materials.A property use granted by the zoning committee or deed

restrictions that benefits the neighborhood is called:A. a

POAB. non-conforming useC. a conditional useD. a variance

• a conditional use

Kathy has a signed contract that has not yet gone to closing. It has created an equitable estate for her. This

contract can also be described as:A. defeasibleB.

executoryC. voidD. voidable

• executory

A buyer and seller have signed a purchase agreement and all contingencies have been met. The seller has changed his mind and no longer wants to sell. What legal remedy can the buyer use to force the seller to consummate the sale?A. sue for liquidated damagesB. accept mutual rescissionC. sue for specific performanceD. sue for punitive and compensatory damages

• sue for specific performance

A broker has a listing, and the seller is overseas. There is no possibility of the use of electronic documents and the seller would like the broker to represent him at closing and sign all the required documents. What authorization would allow the broker to do this?A. A listing agreement signed by the seller will allow the broker to do thisB. A limited agency agreement will allow the broker to do thisC. A limited power of attorney acceptable to the title company will allow the broker to do thisD. A special agency agreement will allow the broker to do this

• A limited power of attorney acceptable to the title

company will allow the broker to do this A tenant signs a lease agreement that calls for periodic increases of rent at scheduled intervals. The lease is

referred to as:A. a gross leaseB. a net leaseC. a graduated

leaseD. a percentage lease

• a graduated lease

A property is being listed for sale by a broker. The property has a 35-foot easement across the front and zoning requires a 45-foot setback. Which of the following actions should be taken by the broker when listing this property?A.He must disclose the zoning setback only, since it will take precedence in this caseB. He should only disclose the easement as it will make marketing the property easierC.He does not have to disclose either restriction as that is the seller's responsibilityD. He must disclose both limitations

on the property use

• He must disclose both limitations on the property use

During a real estate transaction, who determines the amount of the earnest money?A. the buyerB. the sellerC.the agent presenting the offerD. the agreement of the buyer and seller

• the agreement of the buyer and seller

Which of the following is NOT a contributing factor in mold growth?A. Adequate ventilationB. A leaking septic systemC. Newer homes with tighter constructionD. Excess Moisture

• Adequate ventilation