CE Assesment Flashcards
Jim represents Joel in the sale of Joel’s country acreage and house. Jim’s business partner, Rolly, informed Jim that he wants to put an offer in to purchase the property, with the intention to subdivide it. Which statement best represents the disclosure requirements regarding this transaction?
A. Because Jim isn’t buying the property for himself, he has no disclosure requirements.
B. Jim may disclose that he’s partners with Rolly, only if Rolly agrees.
C. Jim must disclose that Rolly is his partner and that Rolly intends to subdivide the property.
D. Rolly must disclose that he and Jim are business partners.
C. Jim must disclose that Rolly is his partner and that Rolly intends to subdivide the property.
A branch of Elite Realty in Illinois is changing managing brokers. When must the Division of Real Estate be notified? A. Immediately B. Within 15 days C. Within 30 days D. Within seven days
B. within 15 days
Stan and Margo want to redevelop an old industrial site in order to create a microbrewery and event space. However, an environmental review found that hazardous chemicals were once used on site, and there is a possibility they will be released during redevelopment. Stan and Margo may not be liable for cleanup, under what federal law? A. CERCLA B. EIS C. SARA D. Wetlands Conservation Act
C, SARA, or the Superfund Amendments and Reauthorization Act, created an innocent landowner defense. Often, the courts will review a SARA case and determine liability.
What must sellers provide prospective buyers of homes built prior to 1978, in addition to the federally required disclosure form?
A. EPA lead safety pamphlet
B. List of reputable home improvement contractors
C. Verbal assurance that the home is lead-free before offering it for sale
D. Written proof that the home is lead-free
A. EPA lead safety pamphlet
A seller received $800,000 for a 5.5 acre rectangular parcel alongside a road frontage. The property is 400 feet deep. What was the price per front foot of the property? A. $1,335.67 B. $2,000 C. $363.64 D. $598.95
A. $1,335.67
First, find the square footage (5.5 × 43,560 = 239,580). You’re given one dimension of the rectangle, so find the other: 239,580 ÷ 400 = 598.95 front feet. To find the price per front foot, $800,000 ÷ 598.95 = $1,335.67 per front foot.
Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 states that its purpose, in part, is to require that real estate appraisals used in connection with federally related transactions be performed ______.
A. By licensed real estate professionals
B. By members of the Appraisal Foundation
C. In the most expeditious and inexpensive way possible
D. In writing, and in accordance with uniform standards
D. In writing, and in accordance with uniform standards
Regal, an out-of-state licensee who is friends with Cari, a licensee with Perfectly at Home, referred one of her buyer friends to Cari. Cari plans to pay Regal a referral fee. Which statement about this fee is true?
A. Cari must pay the fee directly to Regal since Regal is an out-of-state licensee.
B. Cari must pay the referral fee through her brokerage firm to Regal’s brokerage firm.
C. It’s illegal for Cari to pay an out-of-state licensee a referral fee.
D. Since Cari is paying (not receiving) the referral fee, there are no disclosure requirements.
B. Cari must pay the referral fee through her brokerage firm to Regal’s brokerage firm.
Sylvia, who's 15 years old, and her neighbor Marge, who's 24, sign an agreement that Sylvia will babysit Marge’s toddler for the summer for $10 an hour. What type of contract is this? A. Enforceable B. Unilateral C. Valid D. Voidable
D. Voidable
Related to reasonable accommodation of being allowed to have an assistance animal, which statement is true?
A. If the disability for which the tenant is making the request is obvious, the landlord may not ask why it is needed.
B. If the disability is not obvious, the tenant must provide the landlord with full medical records to support the request.
C. The landlord is not obligated to consider the request unless the tenant can produce either the original or a certified true copy of the animal’s service certification.
D. The landlord must consider the request but may require an additional “pet” security deposit.
A. If the disability for which the tenant is making the request is obvious, the landlord may not ask why it is needed.
Jerome is developing an ad for three properties he has listed in an upscale community. He wants to keep it short and simple. Which of these would NOT trigger full disclosure under TILA? A. 10% down payment B. 30-year fixed rate with no points C. A monthly payment of $900 D. Get a low 4.925% APR
D. Get a low 4.925% APR
A real estate transaction has a closing date of May 20. The seller, who’s responsible for closing costs up to but not including the day of closing, has already paid annual property taxes of $1,949. How will the closing statement reflect the proration for the seller? Use a calendar year proration, and round to the nearest dollar. Credited $1,207 Credited $742 Debited $1,207 Debited $742
The seller is required to cover the property taxes for January 1 through May 19, which is 139 days. The seller will be credited $1,207, because $1,949 ÷ 365 = $5.34, and $5.34 × 226 days (the number of days the buyer will own the property and have to cover property taxes) = $1,206.84. That’s $1,207 when rounded to the nearest whole dollar.
John and Amy purchased a builder's home warranty when they bought their home. They have found structural damage that could be a detriment to their home. On average, how many years does a home warranty cover structural damage? 10 years Five years One year Three years
10 years
A homeowner has converted two rooms in his home to a rental unit. What does the “Mrs. Murphy” exemption permit him to do?
a. Advertise for a tenant of a specific race.
b. Move out of the property and rent both portions of it, relying on the “Mrs. Murphy” exemption to permit renting only to single females.
c. Refuse to rent to a female tenant.
d. Use the services of a real estate professional to advertise for a male tenant.
C. The “Mrs. Murphy” exemption applies to owner-occupied buildings with no more than four units. The owner may choose to rent only to a like-sex tenant but may not discriminate on any other basis.
Monique took her Illinois managing broker’s licensing exam for the first time. Which of these statements is true?
If she failed the exam, Monique must retake her pre-licensing coursework before taking the exam again.
Monique can retake the exam up to four times.
Monique has one year after passing her exam to apply for her broker’s license.
Monique has two years from the time she passes her exam to apply for licensure.
Monique has one year after passing her exam to apply for her broker’s license.
Jeanetta leases an apartment from Quad City Leasing. Jeanetta has filed a complaint with the state real estate licensing division stating that Marissa, Quad City’s property manager, breached her fiduciary duty of loyalty to Jeanetta. Which of these statements about this situation is true?
As a property manager, Marissa doesn’t owe fiduciary duties to clients or residents.
As a property manager, Marissa owes fiduciary duties to her client and the apartment community.
If Marissa did breach a fiduciary duty to Jeanetta, Jeanetta has a legitimate complaint.
Marissa owes fiduciary duties only to the landlord.
As a property manager, Marissa owes fiduciary duties to her client and the apartment community.
