Real Estate Practice Final Exam Chapters 1-12 Flashcards

Real Estate Practice Final Exam (Chapters 1-12) Flashcards a broker providing escrow services for someone else's transaction Which of the following costs in a real estate transaction is not ordinarily charged to the buyer?CERCLAThe seller is allowed to keep the good faith deposit as liquidated damages after a buyer breaches the purchase agreement. Generally, how will the deposit be distributed after costs incurred on the seller's behalf have been paid?the Equal Housing Opportunity logo or slogan You're preparing a competitive market analysis. The subject property has a two-car garage; a comparable has onlya one-car garage. The value of the additional garage

space is $4,000. You should:

commission rate for listing brokerTwo brokers in a small community felt that another local broker was unethical and dishonest. They agreed not to send him any referral business, and they encouraged other

area brokers to follow their lead. They could be accused of:

no downpaymentA contingent sale collapses because the buyer is unable to sell his own property. Which form is it appropriate to use at this point?Funding feeAll of the following are characteristic of an FHA-insured

loan, except:

High level of vacanciesA list of the rental rates assigned to the various types of

units in a property is called a:

present both offers at the same timeAn unlicensed real estate assistant may:

Whatever the broker and the seller agree to If a contingency in a purchase agreement is not fulfilled despite a good faith effort to fulfill it, the party who benefits

from the contingency may:

The applicant has worked as a machine operator for seven months, after working for an online media company for eight months Under which type of listing will the seller owe a commission to the listing agent regardless of who is the procuring cause of the sale?1978Which of the following phrases describes the objective value that would be attributed to a property by a buyer on the open market?how long the buyer needs to save for a downpaymentThe parties must separately initial the appropriate paragraph in a purchase agreement if they agree to which form of dispute resolution?retail space in a commercial districtWhich provision in a purchase agreement would enable the seller to keep the property on the market and accept an offer from a second buyer?a written extension agreementAn agent receives an offer of $350,000 for a property that she has listed for $355,000. When she is about to present the offer to the sellers, another offer comes in. This one is

for $300,000. She should:

Documentary transfer taxThe buyer would be entitled to the return of her good faith

deposit in all of the following situations, except:

use the selling prices of comparable properties In a request for reconsideration of value, you should use: appraisal contingencyWhich of the following appraisal methods is a competitive market analysis based on?Unemployment benefitsA lender calculating a loan applicant's stable monthly

income would be most likely to count:

a real estate broker on behalf of an out-of-state sellerThe closing date is approaching, but the buyers are still waiting for the loan to be approved. It would be appropriate

to address this problem using:

Give Carl a notice to perform, informing him that she will terminate the agreement if he does not remove the contingency If a listing agreement contains a safety clause, this offers

the broker protection in the event of:

one-party listingA broker brings his seller an offer from a potential buyer. If

the seller asks about the buyer's race, the broker:

The deposit will be split evenly between the listing broker and the seller Which of the following is not considered a desirable characteristic in a neighborhood?always represents the sellerA listing agreement would be enforceable if it were signed

by any of the following, except:

Commission split with listing agentCarl agrees to purchase Anna's property, subject to a financing contingency. The contract gives Carl 20 days to fulfill or remove the contingency. However, after 20 days he has provided no notice of having fulfilled it or removed it. At this point, what can Anna do?Appraisal feeIf a property receives a low appraisal, an agent may try to

salvage the sale by:

It allows them to look for a home without having to complete a loan application first In the real estate industry, price fixing issues come up

primarily in connection with:

breached fiduciary duties to both parties Disclosure of and consent to a dual agency: seller secondAgent Peter is working with a buyer who is interested in a "For Sale by Owner" property she saw on her way to work.Peter would like to approach the owner to see if he'll list his property with Peter. In this situation, Peter might have the

most success with a/an:

Loan advertisements must include the annual percentage rate What federal law assigns liability for the cleanup of sites contaminated with hazardous waste and also created a fund to facilitate cleanup?$83,000A provision that is related to a financing contingency (and which may be included as part of a financing contingency

clause) is a/an:

the sale of the property in the period after the listing expiresA listing agent: Street addressA property manager's budget for a client's property will typically include which of the following as operating expenses?

Both B and CA seller accepts a contingent backup offer from a second buyer and notifies the first buyer under a release clause.The first buyer decides to remove the sale of buyer's property contingency. What happens next?The seller and the first buyer will complete the transaction, assuming the buyer can come up with the downpayment An agent putting together a listing proposal wants to

estimate the property's value. He should:

Fair Credit Reporting ActWhich of the following will not be included in calculating the APR of a real estate loan under the Truth in Lending Act?may not disclose this information, because to do so would violate the Rumford Act A standard homeowner's hazard insurance policy will not

cover:

the buyer makes payments to the seller, who makes the payments on the underlying loan Miguel is a new salesperson for Imperial Realty.Dissatisfied with the lack of mentoring at Imperial, he decides to work for Millennium Real Estate instead and has his license transferred. At the time of the switch, he has two listings. What happens to his listings?You represent the seller in a transaction. You receive a lowball offer from a buyer that you represented several years ago when he was selling a property. You know that he is very wealthy and could easily afford your seller's full

listing price. You may:

A transfer disclosure statement would not be required in

the sale of a:

BuyerThe buyer has accepted the transfer disclosure statement, and the inspection contingencies have been fulfilled; but the purchase agreement also has a sale of buyer's property contingency clause. At this stage, the buyer would be entitled to a refund of her good faith deposit in each of the

following circumstances, except:

Sandy's acceptance of Bill's offer wasn't in writing, so she may accept another offer without liability to Bill A listing agent receives three offers on a house almost simultaneously. The first two offers are for $4,000 and $5,000 less than the listing price, while the third offer is for

$20,000 less than the listing price. The agent should:

Foreign Investment in Real Property Tax Act If an advertisement for a home with financing states the monthly payment amount, what else must be disclosed?comparable sales that are at least as similar to the subject property as the appraiser's comparables All of the following would show up on a loan applicant's

credit report as derogatory credit information, except:

Exclusive right to sell listingYour buyer has found a house she likes, but doesn't have enough funds available to make a significant good faith deposit. She has a CD maturing in a week that will give her more cash. How should you advise the buyer to proceed?CMA/appraisalWhich of the following items will be included in a real property transaction?All of the aboveThe property's sales price is $210,000 and the appraised value is $200,000. The lender won't make a loan with a loan-to-value ratio over 90%. As a result, the maximum

loan amount for this transaction is:

Release clauseIn a real estate transaction, who is required by law to inspect the property and disclose any material defects observed?The agent does not represent the seller or the listing agent, and will therefore not be liable for their misconduct While canvassing a neighborhood, a salesperson informs local homeowners of the city's plans to build a group home for the mentally disabled nearby. "Home prices here will probably fall as a result. Have you thought of selling your home while you can still get top dollar?" The salesperson's

actions would probably be considered:

Both the higher security deposit and the newspaper ad violate the Fair Housing Act

A seller's counteroffer:

Discount pointsBefore showing properties to a prospective buyer, the

agent should:

buydownWhich of the following federal laws gives borrowers the right to see their credit reports and challenge erroneous information?a group boycottThe seller of a commercial building is a corporation. Who may sign the purchase agreement to accept the buyer's offer?Both A and BAt an open house, a listing agent gives some prospective buyers suggestions regarding how much to offer, without explaining that she is representing the sellers. The agent

has:

unemploymentA seller offers to pay six discount points on behalf of the buyer. This will reduce the buyer's interest rate from 9% to

8%. This is known as a:

provide general information about the broker's servicesWhich of the following can a licensee do without engaging in the unauthorized practice of law?may retain no more than $12,000 as liquidated damagesWhat feature would an ARM include in order to limit how much the borrower's principal balance may increase because the monthly interest accruing is more than the monthly payment amount?income from self-employment consisting of a continuous series of short-term consulting positions for the last three years A real estate agent's advertisements for residential

property should always include:

• days from when the statement was deposited in the mailIn choosing a closing date, you should take all of the

following into account, except:

Cancellation agreementA buyer obtains a 90% institutional loan for $270,000 toward the purchase of a $300,000 house. The buyer does not have the necessary $30,000 for the downpayment, so the seller takes back a $15,000 ten-year mortgage and the buyer contributes the other $15,000 in cash. This

arrangement is known as a/an:

cash equivalent financingTo submit a counteroffer that makes several changes, the

listing agent should: