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Real Estate Test 1: 125 questions Flashcards
What would a licensee NOT be permitted to do? extend a listing When a buyer changes his mind and withdraws his offer to purchase before it has been accepted by the seller, what should that broker do with the earnest money?return it to the buyer What is assessment value?value the property taxes are based on Which would be an example of voluntary alienation?sale Salesperson Mike takes an earnest money deposit from a buyer client. The client gives Mike $1,000 in cash. On the way home Mike has car trouble and needs a tow. Mike's credit card is maxed out so he uses some of the cash to pay for the tow-intending to replace the money before anyone notices. Mike is guilty of conversion What insulating material was pumped into houses until its ban in the 1970s?urea-formaldehyde insulation A person inherited their grandparent's property. Which instrument would be used to convey title from the decedent to the devisee?certificate of transfer When a contract is breached, what describes the equitable remedy that allows a court to order someone to perform as agreed instead of paying damages?specific performance Melanie signs a one-year lease but, after living in the apartment for three months, gets the opportunity to go abroad for three months. Melanie transfers her possessory interest in the property to a friend. After her trip, Melanie comes back to the apartment, which had just been vacated by her friend. Which type of arrangement did Melanie have with her friend?sublease If a person wanted to obtain a real estate license and could NOT afford to pay for the required education, how might the Real Estate Commission help?a loan may be available through the Real Estate Education and Research Fund The rate of taxation in Coolville is currently 73 mills. On the ballot for the next election is a tax levy of 6 mills for the public schools. Mr. Jones' house is worth $150,000 and the local government assesses tax value at 35%. How much more in property taxes will Mr. Jones have to pay if the tax levy passes?$315 A property is valued at $100,000 and is taxed at 45 mills.The assessment rate on the property is 35%. Calculate the yearly taxes.
$1,575
May a consumer who has been harmed by a licensee acting under her license as a real estate salesperson or
broker immediately file a claim for payment from the Real Estate Recovery Fund?No, the consumer must file a lawsuit, get a final judgment, and attempt to collect
The non-breaching party to a contract has a duty by law tomitigate manages RESPA does NOTallow lenders to charge undisclosed fees John works for a new-home builder, selling homes to be built on the buyers' own land. What does John need in order to sell these homes?John does not need a license An escrow agent can be a(n)all of the answers listed If a property has an assessed value of $87,500, and the level of assessment was 35%, what is the value of the property?
$250,000
What is NOT a feature of an FHA-insured loan? no MIP insurance If the license of a salesperson is suspended or revoked, what are the permissible activities that the licensee can undertake?cannot practice real estate at all After closing on an expensive property, Salesperson Andy brags to his golf buddies that the client was a well known professional golfer. Andy forgot the buyer did not want anyone to know who he was. Which statement is TRUE?the agent has breached the duty of confidentiality A rental property has a return rate of 8%. The monthly net rental is $600. What is the market value of the property?
$90,000
The taking of private property for public use is calledcondemnation All of the following sellers are required to fill out the Ohio Residential Property Disclosure Statement EXCEPT estates When a real estate broker wishes to associate himself with another broker as a real estate salesperson, how does the Division handle this transfer?by placing the broker's license on deposit and issuing a salesperson's license Mom & Dad's Cafe is located in an area recently rezoned as residential. Will it be allowed to continue operating as a restaurant?Yes, because the restaurant will be "grandfathered" into the area Real estate agent Lori is showing a buyer client a house.The house is full of antique furniture, fixtures, and decorations. In the largest bedroom is a wall-sized wardrobe which covers the wall between the bedroom and the bathroom. A slow leak behind the bathtub has caused chronic moisture in the plaster of this wall. To which potential hazard should Lori alert the buyer?potential toxic mold on the wall A listing agreement is an agreement between seller and broker A listing agent tells a buyer customer the seller is desperate for an offer. The buyer asks the agent if the agent could tell them the seller's bottom line so the negotiations will be brief. The agent suggests 10% under list price. The seller accepts the offer. Has there been a violation?Yes, a breach of duty to the seller has occurred Who uses the term REALTIST?members of the National Association of Real Estate Brokers
A contract in which the intentions of the parties are shown by their conduct is a(n) _______ contract.implied The most common type of FHA-insured mortgage is called Section 203(b) A 10-unit apartment building has an annual gross income of $5,000 per unit. A vacancy and collection loss of 5% is normal for the area. Annual expenses total $9,250. The purchasers desire a 10% return on their investment. How much should they be willing to pay for the property?
$382,500
What was the primary reason asbestos was used prior to our knowledge of the health risks?fire resistance Which fiduciary duty extends beyond the relationship?confidentiality What lien attaches to a property to prevent the transfer of title when there is a pending lawsuit that may affect the title?attachment To emphasize the timely performance as an essential part of the contract, a contract would use the words "time is of the essence" The agency of the federal government that administers fair housing law is HUD The air space between the walls, floors, and ceiling areas of a condominium project is called common area The Equal Credit Opportunity Act does NOT prohibit lenders from discriminating against potential borrowers on the basis of amount of income Under common law of agency, whose best interest should be kept first at all times?client's A property is appraised at $150,000 and assessed for tax purposes at 35% of value. Calculate the semi-annual tax bill if the mills total is 80.
$2,100
An agent is explaining his broker's policy on agency and asks the buyer to sign a consumer guide to agency. The buyer refuses to sign. What must the agent do?Make a statement on the form that the buyer will not sign and ask the buyer to initial Upon arrival, the listing agent dealing with an elderly person realizes they would be happy receiving an offer for much less than market value. The agent decides to make a cash offer for the list price the seller chose. The agent then sells the property for market value. What duty has the agent breached?disclosure What will happen if an applicant is charged with misconduct either prior to, during, or after the examination?the applicant's application will be denied Replacement of a building best describes building the functional equivalent of the original structure The property sale will close on April 15, 2010. Taxes are $4,300 per year and are paid through December 2009.Calculate the seller's share of taxes using a calendar year (365 days).
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