WA_Test 1 real estate fundamentals Flashcards

WA_Test 1 real estate fundamentals Flashcards Which of the following would be grounds for disciplinary action against a licensee?

• Conversion of funds.2. A licensee acts as a dual agent

withoutdisclosure to both buyer and seller.3. A licensee

acts as a fee broker.Not grounds for disciplinary action:An

agent gives a copy of the sales agreement to the purchaser when it has been signed only by the offeror.Siobhan listed her property with A BC Realty.She asks her agent, Robert' to draftdeed covenants that will prevent a buyerfrom subdividing the land in the future.she'd also like the agent to create a trustfrom the sale, to benefit her

disabled sister.Robert's reply should be:

I can't help you with either of thesethings; you'll need to contact an attorney.Erin entered into a lease that begins onFebruary 1, and

ends on January 31 threeyears later. This lease is an:

estate for years A seller sells his house "as is" to a buyer.Shortly after the sale closest, the buyerfinds a large hole in the ground next tothe house. The hole, which has causedsignificant damage to the foundation is,concealed with leaves and branches.Both the seller and the licensee maybe liable..A borrower takes out an $ 88,000 loan at6% interest. The monthly principal andinterest payment, amortized over 30years, is $ 585. He also makes a $12,000down payment.The borrower will need topay one discount point to the lender. Howmuch is the cost of one discount point?$ 880 A seller wanting to get an estimate of thevalue of her property before settling on alisting price should obtain a fee appraisal A borrower defaults on a mortgage Whatdoes the acceleration clause in the mortgage allow the lender to do?Demand immediate payment of theentire loan balance.Which of the following is true about a buildingdesignated a historical landmark?It may not be willfully destroyed without a permit.A real estate agent took a $3,000 cashearnest money

deposit on Friday morning: She had another appointment

on Friday Afternoon and didn't want to misplace the Money over the weekend, so she deposited it into her personal bank account. First thing on Monday morning, she

transferred the money to her firm's trust account. She has:

commingled funds. The real estate agent has violated state laws concerning trust fund handling, by commingling trust funds with her own personal funds.Price fixing, including setting commissionrates in a

community, is prohibited by the:

Sherman Antitrust Act and state antitrust laws.A real estate agent lists Harold's home,which he owns as a life estate. Harold'schildren hold the remainder interest.Anyone who buys Harold's life estate receives only the interest held by Harold.Five people buy an investment property.They take title so that they each haveequal ownership shares, and so that ifone of them dies, his share will pass tohis heirs. How did

they take title?Tenancy in common.A homeowner bought his home for $150,000. Ten years later, he refinanced his mortgage and borrowed$ 100,000.

Which of the following is true for this type of property?Interest on loans such as this one for the purchase or refinance of a principal residence is deductible.

Maria has a lease that begins on June 1and ends on

December 1 of that sameyear. Maria has a:

term tenancy A buyer's agent has repeatedly seen salesCollapse at the last minute because thebuyers weren't able to obtain financing.How could he best limit his in the future?Require prospects to be approved first.A mortgage often includes a clause requiringthe lender's consent before another borrower may assume the

mortgage. This clause is called a:

alienation clause / due-on-sale clause

A buyer who records a deed is giving:constructive notice.

Z has been certified by the Department of Social and Health Services as not in compliance with his court_ordered child support payments. What disciplinaryaction is available to the Director of the Department of Licensing?Suspend Z's license.Once a lender issues a veteran a VA guaranteed loan, the

veteran:

immediately becomes liable for theguaranteed amount Mark and Kim's two-year lease on their apartment expires.Unhappy that the couple doesn't plan to renew the lease, the property manager charges them one month's rent for failure to give notice. If the lease is silent regarding this

issue, in this case:

no notice is required and no additional fee must be paid.

A deed restriction is a covenant that:restricts future owners of the property

Under Title Vlll of the Civil Rights Act of1968, certain transactions are exempt.name one.An unlisted home that is for sale byowner, where the only advertising is asign in front of the property that readssimply "For Sale." A tenancy in which the tenant is in possession with the permission of the landlord, but there is no definite rental

period or duration of possession, is called an:

estate at will

An easement appurtenant is one that:runs with the land.

An increasingly common land use patternallows for subdivisions with smaller lotsizes and little or no setback

and side yardrequirement. These are known as:

planned unit developments.A minority buyer with a disabled daughtermakes a full-price offer on a property.The home doesn't have any grab barsin the bathroom and the front door isn'twide enough for a wheelchair. The sellerinforms the buyer's agent that the propertywouldn't be suitable for the daughter sohe is going

to refuse the offer. The buyer'sagent should:

explain the situation to the buyer andadvise her to consult an attorney and/or file a complain with HUD.An Asian-American buyer asks to beshown homes that are located in neighborhoods that he knows are primarily Asian. If a real estate agent complies.with his wishes, this

is:

legal, as it is done at the buyer's request A buyer and seller were inspecting a property,prior to the buyer making an offer. Theproperty was occupied by a tenant at thetime of inspection. The seller told the buyerthat