Real Estate National Exam Flashcards

Real Estate National Exam Flashcards A seller listed her residence with a broker. The broker brought an offer at full price and terms of the listing agreement from a buyer who is ready, willing, and able to a cash for the property.But the seller rejected the buyer's offer. In this situation the seller owes a commission to the broker what advantage does a partial amortized and balloon payment loan have?The monthly payments are small/ Pay Lump sum at the end of the loan due to insufficient funds Zoning ordinances are created by?City and Townships Which of the following is true of a quitclaim deed?It can be used to remove a cloud on a title In most listing contracts a broker who has brought a ready, willing, and able buyer to a seller who agrees to the terms of a sales contract.Earns a commission when the seller accepts Under a recession agreement?All parties returned to their original position and all monies must be returned Ownership by one person, one corporation, one partnership-what is this called?Estate in severalty Which authority allows cities and counties to enact zoning ordinances?Police Power Where are fair housing complaints filed? HUD and you have One Year A prospective tenant who is hearing impaired is looking at an apartment in a 8unit building and wishes to install a doorbell that does not ring but flashes a bright light. The

Landlord must:

Allow the tenant to make the modification at his own expense Which of following statements concerning the Real Estate Settlements procedures Act (RESPA) is false?REAL ESTATE brokers may not split a commission with

COOPERATING MEMBERS OF THE MULTIPLE LISTING

SERVICE.

Who establishes zoning ordinances?Local Authorities If a buyer can't get financing what must be paid into the contract?Finance Contingency What are considered trigger terms?Interest rate, payment amount, down payment #of payments, term of the loan, cost to close.. any financial term except APR On a settlement statement proration for real estate taxes

paid in arrears are shown as are shown as a :

Debit to seller and Credit to the buyer For a title to be executed, what needs to happen? Needs to be Signed What does the mortgage lender most often relay on when deciding how much is safe to land on a parcel of real estate?Appraisal Report The buyer receives a seller's property condition disclose in which the buyers agent believes the seller has misrepresented the condition of the property. The buyers agent should?Suggest an Inspection

A broker accepts an exclusive authorization and right to sell listing from a corporation. During the listing term, all of the officers of the corporation die. In this case, Listing remains in full effect When is a contract mutually canceled?Meeting of the minds What is NOT a necessary part of the process for changing zoning regulations?Voting Which of the following is not a good reason to reconnect the seller provide a home warranty?The fine home warranty company pays will increase the cash flow to the brokerage Which of the following items would be prorated at closing with the credit going to the seller?Prepaid Property Taxes The first person to make an acknowledgement on a deed is the?Maker Which of the following would a broker examine to get a summary of ownership history liens and encumbrances on a piece of real property?Abstract of Title A builder build a garage 16ft tall and the zoning permits no more than 15ft, which is true? Can the neighbors take action?Yes, Because it surpasses the limit The north half of the south half of section 5 contains how many acres in a given township?160 acres Persuading homeowners to sell by advising them of the imminent migration of the minority group into their neighborhood is called Blockbusting Federal rules require a Closing Disclosure document provided by the lender. The broker should counsel the borrower to review this document and compare it with the Loan Estimate document. The Closing Disclosure should be receiving by the borrower.At least 3 days prior to loan consummation Jane a licensee/salesperson purchasing land for her brothers John. Should she reveal her licensee status to the seller?YES & SHE SHOULD BE NOTIFIED IN WRITING A buyer wants to place a 5,000 cash deposit on property.The licensee to whom the payment is made must provide the buyer with?Written receipt signed by the license What is Market Price?Sold A developer intends to subdivide a large parcel of land and is in process of land planning. He has determined the geographic boundaries of the individual lots and how the street in the development will be designed to give access to each lot. When can he begin to list for sale?Immediately A deed is executed. A title is transferred when? Delivered and accepted by the Grantee In estimating the value of a 50 UNIT apartment complex which of the following approached would yield the most accurate estimate?Income approach

If a vendor owns land and want to list properties to sell with a broker that aren't built in yet for constructions and he has the blueprint and everything planned out. Can he list the seller with a broker or does he have to get codes and approval first?Zoning, Surveys, Plats need to be recorded. Get a contract with a broker When showing a home with a buyer and there is only cold water running what should you do?Tell the buyer the issue/ Questions the seller about the water heater What was asbestos used for years ago?Better Insulation The most important document in the sales process is the purchase contract because?The agent is not guaranteed a commission fee without it Latino families were beginning to move into a neighborhood that has previously been all white. A local broker passed out flyers to homeowners that said "call now before it is too late. We have beautiful new homes with attractive financing and good school. These flyers would be considered?Blockbusting Prepaid taxes are what to the seller and buyer? Credit to seller, Debit to buyer Lead paint disclosure?Buyer waive the inspection Jones the seller receives an offer to purchase and put forth a counteroffer to Brown, the buyer.Until Brown notifies Jones of his acceptance or rejection, Jones may produce a new counteroffer A buyer and seller signed a contract with buyer's financing contingency. The lender reject the loan to the buyer. What happens to the earnest deposit money?Buyer can get back the earnest deposit money because the contract is void A borrower who was making payment on a loan was required to make a balloon payment atthe end of the loan.This was most likely a?Partially Amortized Loan In many states usury laws?Establish a maximum rate of interest allowed for loans Zoning is regulated by?Federal Government When must a listing broker provide a copy of a fully execution written listing agreement to the owner?Upon execution of the listing agreement by all parties You enter into a contract with a person not knowing he was judicially declared incompetent. The incompetence of one of the parties to this agreement would make the contract?

VOID The lead paint addendum that must be presented with the purchase and sale contract for certain older homes will?Provides the buyer with the opportunity to waive the right to a lead paint inspection A beach house that is few blocks away from the ocean.licensee/seller wanted to list it as a ocean view from beach house in MLS. What should the licensee do?Refuse to do it One of the required elements of a valid real estate sales contract is that it?Must be signed by the seller What should an agent do if a potential buyer presents as offer, but the listing agent believes the person doesn't have the funds?Notify the seller Broker A has created an extremely aggressive business model which has allowed for a very quick success in the

market. The other brothers in the market area have decided not to allow Broker A to show their listings or show Brokers A listings. This would violate.The Sherman Antitrust