Wake Tech Real Estate Broker Prelicensing Final Exam 2020

Wake Tech Real Estate Broker Prelicensing Final Exam 2020 Flashcards A seller asked an agent which listing agreement would allow him to sell the property himself while using the services of a broker. The agent informed him that his option(s) includedA. only the exclusive right-to sell-listingB.exclusive agency listing and opening listing.C. Open and net listing.D. only the net listing.

• exclusive agency listing and opening listing.

When the buyers purchased a 35-year-old home, the property disclosure statement read, "Hardwood floors throughout the house." At the time of purchase, the house was carpeted. Three months after they moved in, the buyers decided to purchase new carpeting. The family room was an addition to the house, and when they removed the carpet in the family room, they found plywood, not hardwood, floors. When the sellers were contacted by the agent, they replied, "We forgot. When we added the family room, we did not put hardwood floors in that room." In this situation, which of the following is TRUE?A. The brokerage firm and the sellers committed fraud.B. The brokerage firm and the sellers can be charged punitive damages.C. The sellers can be charged actual damages.D.The agent can be charged for misrepresentation.

• The sellers can be charged actual damages

As it relates to real estate, agency is created when there is an agreement to represent another party in the sale, purchase, or lease of property. Subagency is created when representing the1. buyer.2. seller.3. agent.4. lender.

• agent

A settlement sheet indicated the following information: 7%

commission to the broker; seller's mortgage payoff-$66,572.76; taxes not yet paid-$1,385; transfer tax-$310.24; deed preparation-$85; net cash to the seller at closing-$117,647. The sale price of the property was1.

$186,000.2. $199,020.3. $200,000.4. $201,020.

3. $200,000The seller's debits are: $66,572.76 (mortgage

payoff) + $1,385.00 (unpaid taxes) + $310.24 (transfer tax)

• $85.00 (deed preparation) + $117,647.00 (cash to seller)

= $186,000. This represents 93% of the sale price, as 7% is due the broker as commission. The sale price is therefore $186,000 ÷ 93% = $200,000 21.The title search on the property revealed a defect in the title. The potential buyer could not purchase title insurance on the property, and the lender would not negotiate the loan. Which of the following clouds would make the property unmarketable?1. The seller's mortgage that is paid off at closing2. A utility easement3. Property taxes not yet due and payable4. The original developer's deed that could not be found in the title search

• The original developer's deed that could not be found in

the title search

The MOST common source of lead poisoning found in residential property is1. in plumbing pipes.2. in the basement.3. caused by appliances.4. in alkyd oil-based paint..

• in alkyd oil-based paint..

Every enforceable contract for the sale of real estate must be in writing and signed by all parties, in accordance with the1. Real Estate License Act.2. Uniform Commercial Code.3. statute of frauds.4. Truth in Lending Act.

• statute of frauds.

The person who reviews all documentation and evaluates the risk of the loan is the1. real estate agent.2. loan officer.3. underwriter.4. processor.

• underwriter.

A group of investors have decided to pool their money for investment purposes. This action is called1. syndication.2.creating a prospectus.3. creating a private memorandum.4.abiding by blue-sky laws.

• syndication.

Which of the following is a trigger item that requires full disclosure under the Truth in Lending Act?1. $550 monthly payment2. 13.9% annual percentage rate3. Low down payment4. Low interest rate

• $550 monthly payment

A man and a woman purchased property as tenants in common. The woman died intestate, and the man sold the property in severalty to a cash buyer who did not purchase title insurance. Four weeks after the property was transferred, an attorney contacted the new owner. The attorney represented the heirs to the estate. In this situation, the1. heirs have a claim to the property.2. heirs have no legal claim to the property.3. agent is liable.4.seller would have no responsibility.

• heirs have a claim to the property.

All the following statements are true regarding zoning EXCEPT1. Zoning is local in nature.2. Some municipalities have the power to regulate land use outside their corporate limits in extraterritorial jurisdiction areas.3. Zoning will prevail over any conflict with restrictive covenants.4.Building permits help ensure compliance with zoning requirements.

• Zoning will prevail over any conflict with restrictive

covenants.A listing contract reads, "Seller agrees to pay XYZ Realty the commission specified herein if the Seller, acting as her own agent/broker, within 180 days after the expiration of this agreement or any lease entered into during the term of this agreement, conveys or agrees to convey the Property to any purchaser with whom Seller negotiated during the term hereof or to any purchaser, whether individually or in a combination with others, who was shown the Property by XYZ Realty or any person during the term hereof." This clause is BEST described as the1. broker protection

clause.2. indemnification clause.3. agreement of cooperation clause.4. agency relationship clause.

• broker protection clause.

A loan that does not meet Fannie Mae guidelines is BEST described as1. a nonconforming loan.2. a conforming loan.3. a conventional loan.4. an unconventional loan.

• a nonconforming loan.

A promise made by one party to induce another party to enter into a contract is1. an offer and acceptance.2. a reality of consent.3. a consideration.4. a covenant.

• a consideration

A buyer would MOST likely be protected from destruction of the premises, injury to others on the premises, and theft of personal property if the buyer purchased1. private

mortgage insurance.2. long-term care insurance.3.homeowners insurance.4. life insurance.

• homeowners insurance.

A defaulted borrower has the right to redeem his property after foreclosure. This right is1. the statutory right of