Real PSI Flashcards - disclosure to the client What type of mortgage ...

Real PSI Flashcards The agent owes care, accounting, confidentiality, and disclosure to the client What type of mortgage loan is likely to be tied to a publicly available index that is mutually acceptable to the lender and the borrower?Adjustable rate mortgage The purchase and sales agreement provides for the release of earnest money to the seller after the buyer's property inspection. The seller requests the earnest money prior to the property inspection. The broker should refuse to release the earnest money The major advantage of ownership in severalty is flexibility in making decisions A lender whose mortgagor has defaulted may be offered a deed in lieu of foreclosure. If he accepts, which of the following will be TRUE?The lender will take the title subject to any junior liens If there is a cloud on the title to a property, the best means of eliminating it is a suit to quiet title A developer intends to subdivide a large parcel of land and is in the process of land planning. He has determined the geographic boundaries of the individual lots and how the streets in the development will be designed to give access to each lot. When can he begin to list lots for sale w/ a broker?when he has submitted his plat map to local authorities, received approval, and recorded it The clause designed to ensure that a broker will receive a commission if negotiations w/ a ready, willing, and able buyer are completed after the listing has expired is called an extension or "tail" clause Which of the following types of deeds provides the grantee with the least protection?quitclaim Which of the following is a health hazard that results from the decay of natural radioactive materials?radon gas The definition of "market price" isthe actual sale price of the property Which of the following approaches would allow you to estimate value if you know the construction price per square foot?Cost Prospective buyers for a house want to operate a recycling center in their back yard. Local zoning laws do not allow this. What do they need to do first?Obtain a variance or special exception Which disclosure is the most commonly required in a residential real estate sale Seller's property disclosure A salesperson's client is the lessee. Who does the salesperson represent?Tenant The person conveying an interest ownership in real property is known as the grantor

Which of the following statements about airborne radon is TRUE?It is inexpensively detected and mitigated An important function of zoning laws is to ensure conforming land use What possible consequence would the knowledge of a Megan's Law registrant in the neighborhood cause?Values in a single family, owner occupied neighborhood may decline due to the presence of a convicted sex offender A letter of intentforms a basis for further negotiations A low loan-to-value ratio indicates ahigher equity in the property A property was listed w/ a broker, but the owners advertising the property found a buyer and negotiated the sale themselves. After the closing, the owners paid a full commission to the broker. The broker MUST have had an exclusive right to sell A lender requested that the entire loan balance be paid immediately because the property on which the loan was made had been sold. What clause in the mortgage loan allows this?Alienation clause A complaint must be filed w/ HUD within what period of time after a fair housing violation has occurred?

• 1 year

Neighbors Sam and Molly share the use of Sam's driveway, which is entirely on Sam's property. Sam wants to have control of driveway use in case Molly sells her home, and Sam does not like the new owner. Sam should provide Molly with a license With reference to a loan, the principal is the total amount borrowed A 15 year old inherited some property from a grandparent.The 15 year old put the property on the market and accepted an offer. Could the 15 year old legally reverse the agreement to sell?Yes, the contract is voidable because the seller is a minor According to the CAN SPAM Act, every email advertisement for real estate services must do all of the following EXCEPT advise the recipient that it will take 180 days to remove the recipient's name from this email list A competitive market analysis is used to estimate themost probable price a property will bring A MAJOR difference between freehold and nonfreehold estates is that all nonfreehold estates are estates for a fixed term In estimating the value of a 50-unit apartment complex, which of the following approaches would yield the most accurate estimate?income Zoning ordinances are typically established by town and city governments The sellers have listed their property for sale because they are in a difficult financial situation and would like to get the house sold quickly. If one of the other sellers in the area asks why that client is selling, the listing agent should respond by explaining that they are looking to sell their house Which of the following statements in an advertisement would be an example of non-disciplinary language under

HUD's Fair Housing Advertising Guidelines?female seeking female roommate

What is required to establish mutual assent? meeting of the minds 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 at that point Which of the following statements in an advertisement would be an example of non-discriminatory language under HUD's Fair Housing Advertising Guidelines?"female seeking female roommate" During a broker meeting, a broker states that a competitor is NOT charging enough commission. The other brokers should remove themselves from the meeting A couple applied for a loan to finance the purchase of a new home. What Federal Act was created to ensure that they have knowledge of all closing costs?Real Estate Settlement Procedures Act A buyer's agent is NOT permitted to tell a buyer that:a former occupant of a property had AIDS A contract is terminated ifit is impossible for one of the parties to perform The listing broker has been presented with multiple offers.The seller has said he would accept only a cash offer on his home, so the broker will present all offers to the seller The legal remedy for canceling a contract and restoring the parties to their original positions is called rescission An escrow or trust account is often held by a lender to payproperty taxes and insurance payments Negative amortization isan increase in mortgage debt that occurs when the monthly payments is not large enough to cover the interest due A seller wants $120,000 for his home, and still owes $20,000 of his original loan at 7%. The current interest rate is 12%. A buyer can pay $60,000 down and wants to carry a mortgage that includes the seller's $20,000 existing mortgage and the remaining $40,000 for a total of $60,00 at an interest rate of 10%. What kind of mortgage loan is this?Wraparound A buyer has specified in writing an interest in purchasing a property without any legal obligation. This is referred to as a letter of intent What should buyers insert into their purchase offer to make sure they would NOT have to go through with the purchase if they CANNOT obtain the necessary financing?Contingency A broker lists several newly constructed affordable homes of a builder client. The broker wishes to advertise the homes targeting first time buyers. Which of the following financing terms in the advertisement would trigger further financial disclosure requirements under the Truth in Lending Act?Buy for less than $5,000 down w/ monthly payments under $500 In a mortgage/trust deed form of loan, the terms of payment and interest rate would be found on the promissory note Which of the following is NOT example of a fixtureCast iron garden bench