Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

ME RE Exam > Exam & Quiz Questions > Flashcards

Exam & Quiz Questions Flashcards

1
Q

A licensee preparing a competitive market analysis (CMA) has information on a comparable property that is similar in all respects to the subject property except that, while the subject property is ten years old and has two baths, the comparable property is five years old and has one bath. In this case, the licensee should adjust the:

A

sale price of the comparable property, down for the age and up for the number of baths

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

A portion of an advertisement reads: “New four-bedroom, two-bath home for sale in a family neighborhood. Yours for only $1,100 per month.” This advertisement violates the provisions of the:

A

Truth in Lending and Fair Housing Acts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

If the purchase price on a condominium unit is $60,000, the amount being mortgaged is $55,200, and there are 2.5 points on the mortgage, which of the following percentages is the loan-to-value ratio on the following transaction?

A

92%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

mortgagor

A

borrower

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

example of installment sale

A

seller financing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

acceleration clause

A

allow lender to demand paid in full upon default of loan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

mortgage lien

A

pledge of the real estate as collateral for a loan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

primary purpose of secondary mortgage market

A

buy loans on real estate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

something a lender can consider when deciding to lend money

A

debt load (DTI)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

chattel mortgage

A

mortgage on personal property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

mortgage insurance premium (MIP) charged on which loans?

A

FHA loans

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

financial points are

A

calculated on the loan amount

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

amortizing mortgage, borrower pays

A

both principal and interest in each payment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

down payment requirement of conventional loan

A

20%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

who is required to abide by the terms of an offer?

A

neither buyer nor seller

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

contract can be voided by: revocation, rejection, accord/satisfaction, all of the above

A

accord and satisfaction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

is a listing agreement a bilateral or unilateral agreement?

A

unilateral

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Seller is required to pay commission on ANY sale during the agreement of a:

A

exclusive right to sell

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

are carryover clauses required in a valid brokerage agreement

A

no

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

seller brokerage agreement is between

A

seller and brokerage agency (listing company)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

brokerage agreement establishes

A

agency or non-agency relationship

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

purchase and sale agreement is between

A

buyer and seller

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

RESPA act covers which type of property?

A

1 to 4 residential units

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Foreign Investment in Real Estate Tax Act requires _____ of sales price be withheld from the closing proceeds for property that is sold by foreign nationals

A

10%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Familial status provides protection against: marital status, being divorced, having children under 18, all of the above

A

Children under 18

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Civil Rights Act of 1866 prohibits discrimination based on

A

race

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

inducing a person to sell based on entrance of a protected class into a neighborhood

A

blockbusting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Property that would be covered by Americans with Disabilities Act

A

office building (public building)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

example of boycott

A

15 RE companies getting together and deciding not to do business with a specific RE company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

NOT a triggering term in Truth in Lending Reg Z in terms of payments/price

A

CASH PRICE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Married couple, joint return are excluded from fed income taxes on a max of ________ profit on the sale of their home

A

$500,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

To qualify for exclusion of federal income taxes up to the max amount, one must live in the property ____ out of the past 5 years.

A

2

33
Q

Cap rate for property sold $940,000 with an NOI of $41,000

A

4.4

34
Q

Property value with a gross income of 74,000 and GIM of 6

A

444,000

35
Q

Value of 20 year old building that would cost $800,000 to build today. Depreciation = %40. Land value = $100,000

A

$580,000

36
Q

Value placed on a property when taken by eminent domain

A

condemnation value - must be fair market value

37
Q

Difference between modular and mobile

A

mobile has a metal undercarriage

38
Q

Sill

A

attached to the top of foundation walls

39
Q

functional obsolescence is loss of value due to

A

4 bedroom only having 1 bathrooms

40
Q

cost approach best suited for

A

school building (the “other category”)

41
Q

True or false: cap rate is a rate of return

A

true

42
Q

True or false: sq footage of a building is considered when determining value by income approach

A

false

43
Q

Effective gross income equation

A

gross income - vacancy and collection losses

44
Q

flashing is found

A

where a chimney and roof meet

45
Q

GLAAG of non-dormered cape

A

multiple area of first floor by 1.5

46
Q

True or false: Colonial is a style of roof

A

false

47
Q

Fruits of the soil are

A

perennial plants owned by the tenant or owner of the property

48
Q

an easement is

A

the legal right to use another person’s property

49
Q

True or false: life estate is an example of a leasehold estate

A

false

50
Q

Reversionary

A

grantor of a life estate when the property is returned to the grantor when the life estate holder dies and a remainderman was not named

51
Q

actual eviction

A

landlord gives proper notice to evict a tenant

52
Q

In Maine, the maximum security deposit that can be charged a person who rents a SFH is ____ month(s) rent

A

2

53
Q

Unique aspect of joint tenancy

A

rights of survivorship

54
Q

A quit claim deed gives

A

only the interest that the grantor has

55
Q

Mortgagee’s title insurance

A

protects the lender in the event of title issues

56
Q

Key required doc of a condo RESALE

A

Resale Cert

57
Q

Voluntary alienation after dead

A

transfer of real estate by will

58
Q

Quit claim deed with covenant guarantees

A

there will not be any title defects that originate during the grantor’s ownership

59
Q

covenant of quiet enjoyment in a deed promises

A

Grantee will not disturbed because of a defect in the title

60
Q 
Which of the following is an economic characteristic of real estate? 
uniqueness
indestructibility
size
liquidity
A

liquidity

61
Q

A subdivision is defined as dividing a parcel of land into ____ or more lots in a 5 year period

A

3

62
Q

Great Pond is a naturally occurring body of water of _____ acres or more

A

10

63
Q

True or false: owner of a property with Tree Growth Tax must have a registered forester provide a forest plan at least once every 5 years

A

false; once every 10 years

64
Q

Adverse possession must occupy the land for at least ___ years

A

20

65
Q

True or false: you would not need a real estate license to promote your parents house for 3 months with a commission of 2% of the sales price if it sells

A

false

66
Q

You may be penalized by which of the following for breaking license law:

  • imprisonment of up to 1 year per violation
  • $4,000 fine (up to)
  • Loss of any commission earned in the transaction
  • all of the above
A

loss of commission

67
Q

You must have a ________ license in order to be a Designated Broker

A

broker

68
Q

A person must be at least ___ years old to receive a Maine real estate license

A

18

69
Q

A broker’s license is issued for ___ years

A

2

70
Q

CE hours to complete to renew broker license

A

21

71
Q

Maine RE Commission consists of __ public members and __ industry members

A

2 public; 4 industry

72
Q

Sales agent probationary period for paperwork review is

A

90 days

73
Q

A licensee may disclose terms of an offer with the written permission of

A

both buyer and seller

74
Q

Who is responsible for providing required PD to the buyer of a listed property?

A

selling licensee (buyer agent)

75
Q

If information about the buyer client’s motivation is _______, the licensee may disclose this information

A

made public by a source other than the licensee

76
Q

A licensee must disclose they are licensed when

A

Buying property not listed with a real estate company

77
Q

Seller agent has what duty to the buyer customer?

A

Honest treatment

78
Q

A disclosed dual agency consent agreement must

A

be provided to all clients of companies that practice

79
Q

Real Estate Brokerage Agreements is required to be given to

A

buyers and sellers of 1-4 residential units

ME RE Exam (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions