Vermont Real Estate CE Shop Course Final Exam Flashcards

Vermont Real Estate CE Shop Course Final Exam Flashcards In which of the following situations would an agent be representing a customer in a real estate purchase?Never Aside from price, which of the following is a legitimate reason to counter an offer?The closing date is unacceptable to one party.Cracks, holes, or rotten areas on a soffit are common ______ issues.Roof Which of the following activities occurs before the closing meeting?The buyer obtains an insurance binder.What is a legal description?a description of the land that specifies the boundaries and location of a piece of real property.In a life estate, all of the following apply during the term except ______.Transferability What happens if a mortgage contingency is in effect and the buyer cannot meet the terms of the agreement due to the inability to obtain a loan?The agreement is terminated.What does a chain of title document establish? The path of title ownership over time Which of the following is a right included with real property?Exclusion What is a survey?A professional, on-site measurement of the lot lines and dimensions of a property What, when signed by all parties to a sales contract, changes the original terms of the contract ?Amendment Bob and Mary are financing $80,500 for a new home. Their lender will approve an interest rate of 6.5% if Bob and Mary pay three-and-a-half discount points at closing. How much is this?

2,817.50

Which of the following is an example of a deed restriction?Fence height What's a vendee's lien?A lien against real property for the earnest money deposit paid on a contract of purchase Which of these is NOT a form of ownership for real estate?Riparian Mary is preparing a purchase offer for her buyer client. It's

a pretty standard offer: a little less than list price, with the

seller paying a little toward the buyer's closing costs. Mary fills in the blanks on a standard form used in her brokerage firm based on the current situation. Is this okay?Yes, Mary can use the standard forms that her brokerage uses (assuming these forms were originally created or approved by an attorney.) Easements are a type of encumbrance that can affect a property. Which of the following is true about easements?Easements are often established by a written agreement between the parties.what happens to a joint tenant's share of property when the joint tenant dies?The joint tenant's interest goes to the remaining joint tenants, if only one joint tenant is left, that joint tenant owns the property in severalty.Seller Randy signed a listing agreement with Barbara, who worked very hard to find him a buyer. Randy's cousin

decided to purchase the house during the listing period. Is Barbara owed a commission according to Vermont regulations?Yes, if she has an exclusive right-to-market agreement

You represent Kyle, who's buying his first home. He signs a contract to buy Wendy's home. The contract includes the

following phrase: "Time is of the essence." You correctly

advise Kyle that this phrase means ______.The parties will be held in strict compliance to any timeframes specified in the contract.Michael doesn't have a real estate license, but he helps his friend, Nancy, sell her home. What can Michael legally receive as compensation?A heartfelt thank you Seller Randy signed a listing agreement with Barbara, who worked very hard to find him a buyer. Randy's cousin decided to purchase the house during the listing period. Is Barbara owed a commission?Yes, if she has an exclusive right-to-sell agreement.Which of the following elements of a deed signify the grantor's intention to transfer title to the grantee?Act of conveyance Bart and Claire are under contract for Claire to buy Bart's house, but her financing fell through. They decide to cancel the contract just as if it never happened. Which termination method does this describe?Rescission Which of these is an example of a rectangular survey system description?S ½ SE ¼ NW ¼ Section 2, Township Clarkson What's the name of a fee a lender charges for processing a loan?A loan origination fee Which of the following statements about the Vermont Real Estate Commission is true?All seven members of the commission are appointed to the position.Which one of the following best describes the fiduciary duty of confidentiality?You must not share your client's confidential information What's designed to protect buyers from financial loss if the title to the property they buy has defects?Title insurance Homeowners can take several actions related to pest infestations, but which of the following actions should be left to licensed pest management professionals?Applying pesticides Which one of these scenarios depicts redlining? Mortgage broker Barry refused to underwrite mortgage applications from applicants who want to buy in specific neighborhoods.The tax associated with property taxes is relatively stable and a high revenue generator because ______.Property values tend to remain stable over time Which of the following properties meets the definition of a homestead in Vermont?The principal dwelling and its surrounding parcel of land owned and occupied by Jackie, a resident individual, as her domicile.Stanley is having second thoughts about taking his neighbor to court over a written agreement they have concerning who pays the rent on a storage unit that they share, because it's used to store stolen merchandise.Stanley doesn't think the contract will stand up in court.What type of contract does Stanley have?Void

Mario doesn't want to include a religious preference in his listing ad, so which of the following phrases should he use?Apartment available for members of attached temple Which three of the following statements is NOT a power belonging to the VREC?The VREC has the authority to hear appeals.Wayne conveys a property to Robbie until Robbie's death, when the property is conveyed to Tiffany. What is this scenario an example of?Life estate Co-ownership without inheritance rights is what kind of real property ownership?Joint tenancy George just applied for a conventional loan on a cottage he wants to buy. What percentage of the loan can he expect to submit as a down payment?20% Which of the following is considered an act of discrimination under federal fair housing laws?Renting only to Catholics Jenny, principal broker of Sunny Days Realty, wants to open a branch office across town. She finds a building and appoints a broker-in-charge, Tim, to manage the branch.She lets Tim name it Tim's Sunrise Brokerage. What, if anything, has she done wrong?The branch office must have the same name as the principal brokerage.______ can be defined as everything that's not real property.Personal property In a real estate transaction, whom may a licensee represent?A client The power of the state to claim property when the owner dies without a will and without locatable heirs or creditors is also known as ______.Escheat Vermont resident Walter is selling his condo. How are the monthly condo fees usually paid? If the property being sold is a condo, the monthly condo dues are usually prorated as of the buyer's possession date (usually the closing date).They're prorated as of the buyer's possession date Which one of the following examples creates vicarious liability for the principal broker?The broker's licensee neglects to provide required disclosures to a client.In which type of contract does only one of the parties offer consideration?Unilateral What is the maximum amount a person who violates Vermont's Fair Housing Law can be fined?1,000 Mixing escrow funds with personal funds is illegal and called ______.Commingling What does REO stand for?Real Estate Owned Which fiduciary duty goes beyond closing? Confidentiality What must occur to effect a transfer of title? The grantor must deliver a valid deed to the grantee.The lender will require flood insurance if the home is

______.

Located in a flood plain The components that make up a borrower's mortgage payment can best be remembered using which acronym?

PITI