REAL ESTATE U SOUTH CAROLINA FINAL EXAM VERSION 2

REAL ESTATE U SOUTH CAROLINA FINAL EXAM VERSION 2

Flashcards Specific performance is an example of a/an...? Essential element of a valid contract The only exception to putting money that isn't escrow funds into the escrow account is when what is being paid?Money that personally belongs to the broker.If the deed hasn't been recorded and a lender can't find any record of the transfer in the county's property information, the property can't?Be used by the previous owner to get a mortgage.If any known material facts exist about a property that could be considered adverse to someone who might buy the property, disclosing those facts is considered what?Always required.How do brokers expect their agents to use a code of ethics?As a way to help them make complicated decisions on their own.An appraiser typically values a residential home using the...?sales comparison approach In some states, a single person is allowed to serve the best interests of the buyer and the seller at the same time. What is the name of this arrangement?Dual agency What are some examples of hard construction costs that can affect real estate values?. The availability of financing Construction materials, purchase of land, and labor costs The allowed building envelope on a property is set forth in which of the following documents?Building code This takes into account all of the borrower's monthly recurring financial obligations in relation to their monthly income?Debt-to-income ratio If you're interested in ownership or management of a brokerage and all that comes with it, including being in charge of others who conduct real estate transactions, which type of license do you need?A broker-in-charge license (BIC) How does a property's exposure on the open market affect its true market value?To have the potential to be sold for true market value, a property must be on the open market for an adequate amount of time.What clause in a contract requires the parties to perform their obligations in a reasonable amount of time?Time is of the essence Which of the following forms are brokers required to present to clients before signing a listing or buyer's agreement?A relationship disclosure form.Which of the following is NOT typically addressed in a brokerage agreement?The compensation structure of the firm.If the seller already paid the annual property taxes prior to closing, the seller will receive a ............at closing.credit

Annie holds fee simple absolute title to her home. She wants to take out a mortgage on the property. Does she have the right to do so?Yes One discount point is equal to ............of the loan amount.1% (percent) Who typically forms Multiple Listing Services (MLS)?Local real estate boards who are members of the National Association of REALTORS® (NAR) How can ethical behaviors be described as they directly relate to your professional conduct?Free from bias, sustaining a high level of standards as they relate to your conduct, and upholding the reputation of your broker, agency, and the real estate industry as a whole.Where does money borrowed from a bank come from? The federal government backs loans In the real estate industry, which of the following words refers to the relationship between a principal and their agent?Agency.When a municipality issues a tax bill what do they use to establish the base value?They base the value on the best use of the property Who has the duty of good faith and compensation to the agent?The principal.A licensee is only licensed to one BIC or PMIC. What does he or she need to be represented by a different one?Getting a letter from the seller or property owner.Generally, what is the first step a prospective homebuyer takes in the real estate financing process?Applying for loan pre-approval What is it called when a life estate is based on someone else's life?Pur autre vie life estate A warranty deed is used for what purpose? To convey all rights and title to real property with the promise that the property is free and clear of all liens Which of the following types of agency is a subtype of an implied agency, where a third party believes an agency relationship exists between an agent and a principal?Ostensible agency When lending someone money to buy a home, how do banks secure their financial interest and protect their bottom line?By charging interest on the loan and having the right to foreclose on the property This type of loan does not pay down the principal balance during the term of the loan?Interest-only loan Obtaining a license by fraud, deceit, dishonesty, or substantial misrepresentation can result in significant disciplinary action. What else can it include?A revocation of their license.A seller's home burns down two days before closing. The buyer of the seller's home sues. The court rules in favor of the seller. What's the most likely basis for the ruling?The impossibility doctrine What is a licensee required to do when they are selling one of their listings to a family member?A licensee is required to provide both parties with full disclosure that he or she is representing them both at the same time, and both parties must agree to this arrangement.A comparative market analysis is conducted by the...?buyer's broker

What should a real estate agent do if a client asks for legal advice? Ignore the client.Advise the client to consult with an attorney.Marketable title usually means what...?That property title is free of all claims and encumbrances What type of agency is created with an oral or written agreement between a principal and an agent?Express agency The process of substituting a new obligation or contract for an old one is known as...?Novation Which of the following water sources is not covered by the rules of the Safe Drinking Water Act (SDWA)?Wells serving fewer than 25 people Residential properties are typically valued using the...?sales comparison approach If the annual property taxes were paid prior to the closing date, the buyer will receive a ..............at closing.debit What is one of the most significant differences between loan pre-qualification and loan pre-approval?Lenders request and verify more information to issue a loan pre-approval than a loan pre-qualification.Which of the following elements is not typically included in a commercial real estate contract?Owner Occupency Clause An interest-only loan is also referred to as a/an...?Straight loan Agent Alice wants to help Owner Owen sell his property, but Alice wants to make absolutely sure she receives a commission when the property is sold. What kind of listing agreement she should she ask Owen to make with her?An exclusive right to sell listing When selecting comparable properties to look at when estimating the value of a home using the sales comparison approach, appraisers need to look for which of the following elements?Homes sold in an arms-length transaction that are as similar as possible to the property being appraised.If you're planning to join a professional organization, how should you treat its Code of Ethics?Even though you are not bound to follow the association's code, you should make every effort to comply.Anyone who's been convicted or pleaded guilty to certain kinds of crimes might not be eligible to get a South Carolina real estate license. Which crimes are these?A Fair Housing violation.Building codes regulate which of the following? All of the answer choices provided are correct Which of the following phrases describes a tenant who leases a property without a written lease document?Tenant at will What can the borrower purchase upfront to reduce the interest rate on their mortgage?Discount points Where can a real estate agent look to determine the zone of a property?The local zoning maps Which of the following is addressed in a municipalities comprehensive plan?All of the answer choices provided are correct If the seller and buyer agree to cancel the real estate contract, this is called...?Mutual termination Why might an agent make an unethical decision? Because they've considered all other options and picked the wrong one.Which loan is considered a non-amortizing loan? Interest-only loan

What is a package loan?A loan that includes funds to buy personal property and a home Which type of agent is authorized to perform a range of acts on behalf of the principal?General agent.The charge by a lender for the use of money for a period of time is known as...?interest All offers and counter offers need to be complete and presented promptly, as well as always being?In writing.Accrued interest on a conventional loan is prorated on a ........... day calendar.

30.0 When qualifying a buyer, the lender will take into account which of the following expenses for the buyer?All of the answer choices provided are correct Conventional loans with a loan-to-value ratio greater than 80% typically require...?Private mortgage insurance This type of loan offers the best terms for first-time home buyers?FHA-insured loan A mortgage lien is an example of a/an...? A voluntary lien When does full performance occur with a sales contract?When the contract is fulfilled.Which of the following is a contingency that may be found in a sales contract?All of these are contingencies that may be found in a sales contract Which of the following is a federal anti-trust law?The Sherman Anti-Trust Act Breaks occur in the chain of title when...? The sequence of buyer to seller is broken, and a buyer is found in the history of deeds with a seller that did not have title to the property Mike and Mary, siblings, own a cabin together. When Mary dies, Mike learns that Mary's share of the cabin will pass through her Will to her husband. How did Mike and Mary own the cabin before she died?Tenants in common Are real estate professionals subject to the limitations established by the National Do Not Call Registry?Yes. There are no exceptions to this rule for real estate professionals.John Sample died, leaving no will and no identifiable heirs.As a result, his real estate reverted back to the state.Which police power describes what happened?Escheat A common part of most mortgage contracts, the PITI clause outlines the buyer's obligation to cover the interest and principal on their property loan as well as which of the following two expenses?Property tax and insurance.The lender is also known as the...?Mortgagee How do you calculate a homeowner's annual property tax bill?Multiply their combined property tax rate by the assessed value of their home.Most residential leases are...?Gross leases What happens to the deed after title is transferred to the buyer?It gets recorded A warehouse may be constructed in which of the following zones?Industrial