The CE Shop Final Exam Proctor Flashcards

The CE Shop Final Exam Proctor Flashcards When a local planning board is reviewing density, it would consider ______.Federal impactImpact on neighboring statesProperty valuesSetbacks and boundaries Setbacks and boundaries Which of the following is true?It's up to your client to find out the material facts affecting property.Signing your sponsoring broker's name to a document is allowed aslong as you have their permission.You are not responsible for anything you do not put in writing.You can be held financially responsible for details not put in writing.You can be held financially responsible for details not put in writing.You can be held financially responsible for details not put in writing. It's important to make sure that all details are clear, complete, and accurate. All parties to the transaction must sign the agreement, and you must provide copies to all parties within a reasonable time.Which statement best describes a trade fixture?A fixture or item installed by a commercial tenant that becomes personal property of the landlord when the tenant moves outA fixture or item installed by a commercial tenant that's considered personal property of the tenantPersonal property of the tenant used as a bargaining chip when negotiating a saleProperty of the landlord that's used by the tenant and must remain on the premises when the tenant moves out A fixture or item installed by a commercial tenant that's considered personal property of the tenant With which type of commercial lease does the tenant pay some or all of the expenses?Gross leaseNet leasePercentage leaseSublease Net leaseWith a net lease, the tenant pays some, or all (in the case of a triple net lease), expenses.Why is it important for a buyer to know if an underground storage tank is present on a property?Buyers don't need to know.Older tanks may leak and contaminate the ground.The buyer may want to use the tank.The buyer will need to check if the tank is correctly sized.Older tanks may leak and contaminate the ground.Which of the following measurement systems is mostly used in states that were part of the original 13 colonies?Compass and rulerLot and blockMetes and boundsRGSS Metes and bounds According to the Maryland Code of Ethics, which statement most accurately describes a licensee's responsibility related to written offers on their listings?A licensee is only required to present formal written offers that are equal to or more than the listing price.A licensee is only required to present formal written offers within a certain range of the listing price of the property.All formal written offers received by the licensee must be presented to the owner, even after the seller accepts an offer.All formal written offers received by the licensee must be presented to the owner until the seller accepts an offer.All formal written offers received by the licensee must be presented to the owner, even after the seller accepts an offer.

Carl is interested in purchasing a lot that is 200 feet wide by 600 feet long. The seller has it priced at $800 per acre.How much would this lot cost?$1,600$2,204$4,132$4,800

$2,204

Which formula calculates net to seller?(Net amount + mortgage or other expenses) / (100% commission rate)Sales price ÷ (100% - commission rate)Sales price - (100% - commission rate)Sales price x (100% - commission rate) Sales price x (100% - commission rate)Net to seller = sales price x (100% - commission rate). Remember that other closing expenses and an existing mortgage also affects the seller's net proceeds.Frieda, a Maryland broker, finds herself in a dual agency situation. She's been really busy and hasn't had the time to assign two of her licensees as ICAs to the transaction. The good news is that although Frieda hasn't obtained either party's consent, neither the seller nor the buyer seem to mind. Is this situation legal?No; dual agency is always illegal.No; without informed consent, dual agency is illegal.Only if she doesn't get caught.Yes, if the parties are agreeable.No; without informed consent, dual agency is illegal.What are the two categories of comparison when evaluating comparables to a subject property in the market comparison approach?Broad and specificComponents and measuresElements and unitsGeneral and detailed Elements and unitsThere are two categories of

comparison: elements, which look at physical and

locational characteristics, and units, which look at the numbers.A valid deed must contain all of the essential elements, and ______.It must be approved by the local judgeIt must be in nuncupative formIt must be in writingIt must be sealed in an envelope and sent to all parties via registered mail It must be in writing Which term refers to a permitted deviation from current zoning restrictions that allows an owner to use land for a purpose that's otherwise prohibited, and requires the owner to prove the zoning creates an unnecessary hardship?MoratoriumProperty varianceSpecial use permitUse variance Use variance Your client, Bruno, is an investor. He is in the process of selling a fourplex and mentions to you that he hates the idea of the capital gains tax he'll be subject to. What should you tell him?"Capital gains do not apply to investment properties.""Investors don't pay taxes.""Taxes are required, no matter what you do.""You might consider a 1031 tax-deferred exchange." "You might consider a 1031 tax-deferred exchange."Investors will have to pay capital gains taxes unless they roll those gains into a new investment property and use the 1031 tax-deferred exchange process to do so.Loans available through the Farm Service Agency have which of the following characteristics?Loan terms may be as long as 38 years.They mirror the requirements for conventional loans.They're for farm loans only.They're for rural housing loans only.Loan terms may be as long as 38 years.The Farm Service Agency has loans for both rural and farm properties. Loan terms may be as long as 33 or 38 years, depending on the borrower's income.Agatha helped her client Rufus complete the form that documents Rufus's purchase offer to the seller for the

property he'd like to buy. What is this form?Buyer representation agreementListing agreementPromissory noteSales contract Sales contract

What is the highest penalty an unlicensed individual practicing real estate may be fined for more than two offenses?$10,000 per violation$1,000 per violation$25,000 per violation$2,500 per violation $25,000 per violation ______ is a process in which an appraiser determines a probable range of values for a property by comparing a group of comparable sales to the subject. The appraiser attempts to include both superior and inferior units of comparison, such as age, transaction price, etc.BracketingBridgingSubstitutingSurrounding Bracketing Although Kirk has been paying rent toward his ground lease for more than 17 years, he will never be able to buy the lease from the landowner. What type of ground lease does Kirk have?AssumableIrredeemableNon assumableRedeemable Irredeemable A licensee says, "This is a dream home with the best views in town." This is an example of ______.A lieIntentional misrepresentationPositive misrepresentationPuffery Puffery When a lower-quality property is adjacent to a higher-quality property, it can diminish the value of the higher-quality property. What economic principle of value is this?AnticipationContributionProgressionRegression Regression Shelly buys Mark's house, which is still in an option period with Monique. Monique decides to exercise her option after Shelly moves in. What will happen?Mark will have to refund Monique's option fee.Nothing will happen, as long as Shelly has a fully executed sales contract with Mark.Shelly and Mark must form a new option agreement.Shelly will have to sell the house to Monique.Shelly will have to sell the house to Monique.If the optionor/seller sells land that's under an option contract within the option period, the new owner is bound by that contract, and the optionee may enforce the option against the new property owner.If Mega Corporation owns real property, chances are it owns it in ______.CommonJoint tenancySeveraltyTrust SeveraltyCorporations own property in severalty, like individuals do.In accordance with the Maryland Property Condition Disclosure Law, when is the seller required to provide the Maryland Residential Property Disclosure and Disclaimer Statement to the buyer?No more than 24 hours after both parties have signed the agreement.Only before entering into a contract of sale with the buyer.Only if the buyer asks for it.On or before entering into a contract of sale with the buyer.On or before entering into a contract of sale with the buyer.Jenny and her friend Kali went out to lunch. Afterward, they paid the bill. Their agreement to pay for the food they were served is what type of contract?An audible contractAn express contractAn implied contractA written contract An implied contract Aside from price, which of the following is a legitimate reason to counter an offer?One party would prefer a