ch1 Flashcards
Which agency directly affects the amount of money available for mortgage loans and the rate charged to commercial banks?
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.
The agency that administers real estate regulations in Nevada is the:
Nevada Real Estate Division.
The Nevada Real Estate Division (NRED) regulates and administers real estate law in Nevada.
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.
This course is largely about one particular area of real estate but introduces “specialized areas of real estate.” These specialized areas require additional training and knowledge beyond the scope of this course. Which is the area of real estate do we NOT consider to be a specialized area?
Residential
While residential real estate requires appropriate training and licensing, it is not a specialized area that requires specific training beyond the initial license training.
The real estate trade organization that expects its members to follow its outlined Code of Ethics is the:
National Association of REALTORS®
The real estate industry governs itself primarily through the National Association of REALTORS® (NAR) and its adopted Code of Ethics and Standards of Practice.
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. An exchange 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 gain taxes on the sale of a primary residential property.
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 problems discovered by the inspection are not resolved to the satisfaction of the buyer, the buyer is no longer be obligated to perform the terms of the contract.
When dealing with a manufactured home, a real estate licensee can sell a manufactured structure 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 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 salesperson by the Nevada Manufactured Housing Division.
The Department of Housing and Urban Development (HUD):
establishes criteria for residential property loans insured or guaranteed by the government.
The Department of Housing and Urban Development (HUD) establishes and regulates 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 of the following would hinder the success of a new licensee?
Taking advantage of clients
Taking advantage of a client’s lack of knowledge on real estate matters is not only unethical, but will not help the licensee to become a successful real estate agent.
