Broker 2 Flashcards
In order for a tenant to claim relief for constructive eviction:
The landlord must have intentionally withheld required repairs or maintenance, and the tenant must prove continuous residence in the premises.
A buyer purchases a furnished condominium apartment as an investment. The document that evidences the buyer’s ownership of the furniture is a:
Bill of sale.
A broker who enters into a property management contract is considered a:
Fiduciary
A buyer’s interest in real property, acquired at the moment the seller and the buyer enter into a sales contract, is known as:
Equitable Interest
The appropriate time for a selling broker to explain the agency relationship to a prospective buyer is:
The initial meeting
A broker is asked to lease 1,200 square feet of warehouse space at $6 per square foot per year. If the broker’s commission will be 8 percent of the first year’s rental income, the MAXIMUM amount payable is:
720
A geographic region in which similar properties compete with the subject property for potential buyers is called a:
Market area.
In the absence of a formal appraisal report, which of the following choices is the MOST appropriate for setting a listing price in a new, rapidly selling neighborhood?
The price that willing buyers have recently paid for similar structures.
Which of the following factors would be included in the description of replacement cost?
Similar utility and current material.
Under an exclusive right-to-sell listing, a broker has the authority to take which of the following actions on behalf of a seller?
Accept a bona fide offer
Under a lease for a commercial property, a tenant agrees to pay $4,000 per month plus 3% of the gross monthly sales. This type of lease is called a:
Percentage Lease
The agency that is charged with enforcing the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) in the case of an owner who allows the dumping of wastes on a property is the:
EPA
A percentage lease would MOST often be used for tenants in:
Shopping center
A license holder is showing a home built in 1972 to buyers who notice paint flaking on the woodwork. How should the license holder proceed?
Advise the prospective buyers to get a lead-based paint inspection.
A lot was purchased as an investment for $10,500 and sold a year later at a loss of 20%. If the owner paid a 10% commission, what was the owner’s net loss on the sale?
2920
A broker lists a property. A potential buyer tells the broker that he has heard that the crime rate in the neighborhood is increasing. Which of the following is the broker’s BEST response to the buyer?
Check with local law enforcement authorities about the crime rate.
Which of the following statements about the law of agency is CORRECT?
It establishes a fiduciary relationship
A lender’s title policy will protect the:
Lender against existing, undiscovered title defects.
The provision in a mortgage or deed of trust that gives the lender the rights to call the entire balance due upon a default in any payment is called a(n):
Acceleration clause
In order for a property manager to determine net operating income on a property, which of the following fees is subtracted from the effective gross income?
Operating Expenses
The value placed on land and buildings by a governmental unit for use in levying annual real estate taxes is called the:
Assessed Value
If a buyer makes a 20% down payment and obtains a $75,000 mortgage, what is the sales price of the property?
$90k
A special warranty deed provides:
Protection against defects that occurred while the grantor held title.
Which of the following acts is illegal under Federal Fair Housing law?
Refusing to sell a home to a person with a poor credit history.
