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Real Estate National PSI Exam > Exam 2 > Flashcards

Exam 2 Flashcards

1
Q

When compared to FHA loans, conventional loans off the borrower…

A

lower loan to value ratios

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2
Q

The borrowers mortage is payable in monthly installments that include principal and interest over 15 years, the last payment is a larger amount than the regular monthly payments. This is known as a…

A

Ballon mortgage.

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3
Q

Effective delievery of a deed depends upon the…

A

Intention of the grantor.

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4
Q

An appraiser seeking to find market value would be concerned with all the following except…

A

original cost of the property.

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5
Q

Whose obiligation is it to disclose lead based paint on homes before 1978?

A

The seller

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6
Q

A form of real property ownnership with the right of occupancy and use of specfic property for a specific portion of each year for either a fixed number of years or forever?

A

Timeshare

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7
Q

A mortgage broker acts as a…

A

intermediary.

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8
Q

A voidable contract is…

A

enforeable, but is subject to rescission by one of the parties to the contract.

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9
Q

Trust accounts hold…

A

funds not belonging to the firm.

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10
Q

As a listing agent, what obligations do you owe to unrepresented buyer?

A

Honesty and fairness.

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11
Q

What is market cap and how is it calculated

A

See example

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12
Q

A declaration made by a person to an official stating that a deed has been freely and voluntarily executed is called…

A

An acknowledgement.

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13
Q

The escrow agent represnts…

A

both the buyer and the seller.

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14
Q

If there is a default on a mortgage, the mortgagor, after the foreclosure sale, may have the statutory right of…

A

redemption

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15
Q

A valid deed must name the…

A

Grantor and Grantee

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16
Q

An exlusive agency listing is NOT…

A

the owner must pay a commission if the property is sold directly by the owner.

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17
Q

Consideration in a contract:

A

May be an exchange of promises.

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18
Q

The main north and south line in a government survey from which townships are located is called as…

A

Principal meridian

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19
Q

An established business relationship (ERB) exists if the consumer was involved in a transaction with the company during the previous…

A

18 months

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20
Q

Who is responsible for the buyers actions if they fail to produce the money for a cash offer?

A

The buyer

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21
Q

Which form of agency gives the agent the broadest powers to act for the principal?

A

Universal agency

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22
Q

Senior housing may refuse to rent to families if…

A

80% of the units are occupied by one person over the age of 55.

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23
Q

A seller mentions over the phone to the listing agent that she is willing to take less then the current sales price. The listing agent tells a REALTOR marketing group: “Bring any offer. The seller will take less then the asking price.” Did the agent break her fiduciary duties?

A

Yes, the seller did not get give the agent written permission to share confidential information.

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24
Q

An appraiser was hired to prepare a feasibility study for adding a swimming pool to a 24 unit apartment building. What basis of appraising would be used?

A

Contribution

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25
Q

If a seller has already accepted one offer and later accepts another offer on a contingent basis, this contract is called a…

A

Back up contract

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26
Q

If there is a disagreement concerning assessed value of real property the burden of proof is upon the…

A

taxpayer

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27
Q

When are licensed real estate professionals allowed to discriminate?

A

Never

28
Q

All of the following are a type of zoning control except…

A

Rent controls

29
Q

To earn a commission, a listing broker with any exclusive listing must procure a ready, willing and able buyer at the seller’s listing terms and…

A

nothing else.

30
Q

When a property is sold “as-is” who is liable for disclosing any known defects in the property?

A

The seller only

31
Q

A buyer pays $45k for a lot. Five years later, he puts it on the market for 20% more than he originally paid. The lot then sells for 10% less than the asking price. What is the selling price of the lot?

A

$48.6k

32
Q

A remedy in court compelling the seller to sell the property is known as..

A

specific performance

33
Q

Prohibiting the sale of property based on the buyers race is..

A

Invalid, even if owner’s agreed.

34
Q

Which of the following statements best describes the concept of land owernership?

A

Ownership of the property is to the sky above and downward to the center of the earth, as well as the surface.

35
Q

If a seller accepted an offer but changed the date of possession and initiated that change…

A

it would become a counter offer, subject to acceptance by the buyer.

36
Q

Advertising property or services by real estate professionals even on social media should at least include…

A

The brokerage firms name

37
Q

A person who hires or apoints an agent is called the …

A

principal

38
Q

The process used to take private land for public use is known as…

A

condemnation

39
Q

Which of the following had priority claim over a previously recorded trust deed?

A

Unpaid property taxes

40
Q

The best description of a contract is…

A

An agreement between competent parties and based on legal consideration that creates legally enforceable duties and obligations.

41
Q

Closing is June 12 for the current year. The water bill is a flat rate and is paid in arrears. The bill is $41.69 for the period June 1 through June 30. The buyer is to pay the date of closing. What is the debit and credit?

A

$15.29

42
Q

All of the following concerning real estate are true except…

A

A promissory note is the security for the deed of trust.

43
Q

All of the following are a necessary element in the formation of a contract except…

A

performance

44
Q

The fact that land has a number of important uses is the basis for the essential element of value known as…

A

utility

45
Q

An option in a contract by which the owner of property gives another person the right to purchase his or her property for a stated sum within a given period of time is…

A

A voluntary encumbrance

46
Q

A property manager representing the landlord must…

A

avoid giving false information to a tenant.

47
Q

The promissory note must contain an acceleration clause and a(n)…

A

Prepayment clause

48
Q

If a commercial property sold at a court foreclosure does not sell for an amount sufficient to satisfy the mortgage loan debt, the mortgage may obtain…

A

a deficiency judgement

49
Q

The phrase “time is of the essence” is most likely to be found in a…

A

sales contract

50
Q

The length of a safety clause in a listing agreement is determined…

A

negotiation between seller and broker.

51
Q

A sale closes on Feb 12, with the seller having the day of closing. The buyer is assuming the seller’s mortgage, which has an outstanding balance of $28k as of the closing date. The last mortgage payment was made on Feb 1. The annual interest rate of 7.75% and interest is paid in arrears. What interest proration appears on the buyers closing statement?

A

$72.36 credit.

52
Q

A deed of trust is normally used to…

A

secure a debt with real property.

53
Q

The practice of inducing panic selling based on race or another minority group is known as…

A

blockbusting

54
Q

The balance of the loan was $150k after the last payment, and the closing is scheduled for tomorrow. If the prepayment penalty is 0.5% what would be reflected on the seller’s side of the settlement statement?

A

A debit of $750.

55
Q

All of the following are prorated at closing except…

A

Sale price

56
Q

A second offer made on a property prior to the seller’s acceptance of the first should be…

A

Submitted to the seller immediately.

57
Q

If a seller signs an offer made by a purchaser, the first thing the listing agent should do is…

A

Give a copy to the seller.

58
Q

Liquidated damages are most likely to be found in which of the following?

A

Purchase contract

59
Q

The deed covenant that states that the grantor owns the property and has the right to convey it is the covenant of…

A

selsin

60
Q

In what corner of a township would you find Section 1?

A

Northeast corner

61
Q

Reconcilliation is best defined as…

A

the appraiser’s weighting of each property and approach to value.

62
Q

A house sells for $165k. If the seller agrees to pay 5.5% discount points on a $155k mortgage and the broker’s fee is 6%, how much did the seller net?

A

$146,575

63
Q

When the property is sold “as-is” the seller must disclose…

A

Any known material defects.

64
Q

The purchase contract specifies that the listing brokerage and the seller may keep the earnest money if the buyer defaults. This stipulation is known as…

A

liquidated damages

65
Q

The column of townships running north and south is numbered according to its distance from the principal meridian and is referred to as…

A

Tracts

Real Estate National PSI Exam (1 decks)

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