WI Real Estate Practice Exam Flashcards

WI Real Estate Practice Exam Flashcards

Answer: BThe Real Estate Settlement Procedures Act

(RESPA) prohibits the payment of kickbacks for the referral of real estate business to settlement service providers.Which of the following is prohibited under the Real Estate Settlement Procedures Act? (RESPA)a. A lender refusing to issue a loan based upon a person's religion.b. A broker receiving a fee from a lender for the referral of a client.c. A creditor stating the required down payment in an advertisement while neglecting to disclose other loan terms.d. A lender originating a loan without disclosing to the borrower the total finance charges, the annual percentage rate, the total amount financed and the total payments that will be made.

Answer: BThe selling broker becomes an agent of the

listing brokerThe selling broker has a customer relationship with the buyer and as a subagent is the agent of the principal broker, or in this case the listing broker.A selling broker procures a buyer for another broker's

listing. The selling broker is:a. An agent of the buyerb. An

agent of the listing brokerc. A customer of the buyerd. A principal broker

Answer: CThe lender DOES NOT consider the condition of

the property when determining whether or not a buyer is qualified. The condition of the property, however, is a factor in whether or not the lender will issue a loan on a particular property.When determining whether a borrower is qualified to obtain financing, a lender will look at all of the following

EXCEPT:a. The borrower's credit scoreb. The borrower's

credit payment historyc. The condition of the property the borrower wishes to purchased. The amount of money the borrower has as a down payment

Answer: BContact the local building inspector.Typically the

city planner or building inspector is the best person to consult regarding any zoning questions.The uses permitted under a particular zoning classification vary based upon locality . To see what the permitted use is, one could also review the textual portion of the zoning law.The best way to determine the permitted use for a

particular property is to:a. Refer to state statutes regarding

land useb. Contact the local building inspectorc. look it up in the MLSd. Ask the existing landower

Answer: AA construction lien is given as security to those

who perform labor or furnish material or professional services in the improvement of real property. Construction liens establish priority from the date the first visible work commenced on the property.Which of the following liens take priority prior to recording in public records?a. Construction lienb. Special assessment lien,c. Tax lien,d. Mortgage lien

Answer: CThe writ of execution is a court order instructing

the officer of the court to carry out the decision of the court.It is used in a judgment where the sheriff is told to seize a debtor's property so that it can be sold to pay off a debt.All of the following would be considered an

ENCUMBRANCE except:a. unpaid property taxes,b. An

easement necessity,c. A writ of execution,d. A judgment

Answer A:Property taxes are calculated according to the

value of the property. Special assessments are generally apportioned according to benefits received, rather than by the value of the land and buildings being assessed.Which of the following is most likely determined by the overall value of the property?a. Property taxesb. Special assessmentsc. Judgment liend. Mortgage lien

Answer: BA deed restriction because it places private

restrictions on landA zoning restriction is a Public form of

land use regulation.A recorded instrument that places private restrictions on

land isa: Zoning restriction,b. Deed restriction,c. Writ of

attachment,d. License

Answer: BRequire the dog owner to clean up after the dogIt

is a violation of fair housing laws to refuse to sell or rent to an individual based upon a disability. The eviction of the individual or the requirement for extra compensation from an individual as a condition of continued residence because he keeps a service animal is also considered to be a discriminatory act. The animal must be allowed wherever any other tenant is allowed to go.A disabled individual with a service dog wants to purchase a condo with a "no pets" policy. In this situation the condo

association may:a. Charge a higher monthly association

fee to pay for the extra wear and tear caused by the dog.b.Require the dog owner to clean up after the dogc. Require the individual to keep the dog in the unit at all times unless leaving or entering the unitd. Decide not to sell to the individual

Answer: CBoth the condo and co-op are likely to be

managed by an association.The owners of condo units are likely to have a percentage (%) ownership and transfer ownership using a deed.The owners of a co-op have equal (=) ownership.Co-ops do not have interest in real property.Instead they own stock in a corporation. To transfer ownership in aco-op you use a proprietary lease.A similarity between condominium and cooperative

ownership is:a. All owners have equal percentage

interests,b. Both condo and co-op owners have a real property interest,c. Both condo and co-oops are likely to be managed by an association,d. To transfer ownership of either a condo or a co-op the grantor would use a deed

Answer: BNo two properties are the same.When

conducting a market analysis, the amenities of a comparable property have to be adjusted to more accurately reflect the amenities offered in the subject property. If a comparable property has a two-car garage and the subject property has a three-car garage, value needs to be added to the selling price of the comparable to more accurately reflect the value of the subject property.When performing a market analysis, a licensee compares a

property's amenities:a. To allow for depreciationb. Because

no two properties are the samec. To obtain assessed valued. To reflect changes in the marketplace

Answer: C$825.90Round the selling price to the nearest

100.Transfer tax is .003$275,300 x .003 = $825.90 The seller has a sales contract for $275,250. What is the seller's transfer fee?a. $820.75b. $825.75c. $825.90d.

$830.90

Answer: DPlanned Unit Development (PUD) is a zoning

district written and negotiated specifically for the subject property. It may allow a developer to cluster building and services together in a way that would not be possible or permissible according to a municipality's regular zoning ordinances.A condo complex and a PUD can look similar on the surface. The differences between the two is found within the documents that created the development.A concept in housing design that allows for high density dwellings and maximum use of open spaces to create park

and recreation space is known as a:a. Condominiumb.

Cooperativec. Housing developmentd. Planned unit development

Answer: AA nonconforming use is a land use that was in

existence when a zoning ordinance was enacted and the nonconforming use is allowed to continue even though it does not comply with current zoning regulations.Nonconforming uses have special protected status, however, they are often limited by local ordinances in an attempt to eventually eliminate them.Which land use is permitted with the understanding that it will eventually be eliminated?a. Nonconforming useb.Variancec. Downzoningd. Spot zoning

Answer: DThe water softener is attached to the property

and is treated as a fixture unless otherwise stated in the offer to purchase.The sellers are closing on their property tomorrow. They may remove all of the following property from the house,

except the:a. Mirror hanging on a nail on the wall,b. Master

bedroom curtains and valances,c. Dog kennel sitting in the backyard,d. Rented water softener