Ch. 1 Exam Flashcards
The real estate trade organization that expects its members to follow it’s outlined code of ethics is the:
National Association of realtors
The real estate industry governs it’s self primarily through the national Association of realtors and it’s adopted code of ethics and standards of practice
The department of housing and urban development (HUD):
Develops building standards for manufactured structures.
The department of housing and urban development establish and regulate criteria for residential property loans insured or guaranteed by the federal government as well as enforces the many fair housing laws. The US Environmental Protection Agency establishes and enforces laws to protect the environment. Fannie Mae is a secondary market for loans.
Which is not considered a specialized area of real estate requiring additional training and knowledge?
Residential.
While residential real estate requires appropriate training and licensing, it is not a specialized area that requires a specific training beyond the initial license training.
Which statement regarding a professional home inspection is false?
The seller must perform all repairs requested by the buyer, or be in breach of contract.
Following the inspection, the buyer will have the opportunity to request that the seller make repairs in order for the buyer to proceed with the transaction. The seller can agree to do the repairs, refuse to do the repairs, or negotiate with the buyer to as to who should be responsible for the repairs. If the problem was discovered by the inspection are not resolved to the satisfaction of the buyer, the buyer is no longer obligated to perform the terms of the contract.
The agency that administers real estate regulations in Nevada is the:
Nevada real estate division
Which federal regulatory agency impacts how much money is available for mortgage loans?
The Federal Reserve Board.
The federal reserve board has a direct impact on the amount of money that will be available for mortgage loans at any given time as well as the rate charged to commercial banks.
A section 1031 tax – deferred exchange is not:
A method for the exchanger to defer capital gains taxes on the sale of a primary residence.
Exchanging is a specialized area of real estate requiring knowledge beyond basic license law. And exchange it involves a transfer of property for a like – kind property, or partial cash and property, as opposed to a sale that is cash for property. It is not a method to defer capital gains taxes on the sale of a primary residential property.
Which one of the following is not a natural resource property?
Properties abutting the sea.
A natural resource property would be a farm, ranch, forest, mining lands, or rock quarries.
When dealing with a manufactured home, a real estate license he can sell a:
Manufactured home that is permanently attached to the land.
If the manufactured home is attached to Real Property, then it can be sold by a real estate licensee he without any additional license requirements. If the manufactured home is not attached to Real Property, it is considered personal property, and can only be sold by someone who is licensed as a manufactured home dealer or sales person by the Nevada manufactured housing division.
Which of the following would hinder the success of a new licensee?
Taking advantage of clients.
Taking advantage of a clients lack of knowledge on real estate matters is not only unethical, but will not help the licensee to become a successful real estate agent.
