Jacks questions Flashcards
Which is legal in Montana?
Net listings
The Broker’s trust account:
must be maintained in a Montana financial
institution.
When should a Broker confirm that a
listing form has been properly
completed by the Salesperson?
before the seller signs the listing
A Broker mistakenly placed the earnest money
into the firm’s general account rather than into
the trust account. The Broker is guilty of:
commingling
Does a resident property manager need
to have a Montana Property Manager’s
license?
No, a resident property manager is
exempted from having a Property
Manager’s license.
A Supervisory Broker’s license is revoked. The
Salespersons’ licenses are:
suspended and must be returned to the
Board by the Broker.
A Broker on office floor duty meets a
prospective buyer. A buyer agency
relationship is formed when:
The Broker and Buyer sign a buyer
agency agreement.
A Broker must disclose to the seller:
The buyer who wants the seller to
finance the deal has a history of credit
abuse.
Which party pays for the roof inspection
contingency if the contract of purchase
does not specify?
the buyer
If the seller and buyer sign a purchase
agreement that instructs the Broker to
wait for 8 months before depositing the
earnest money, the Broker should:
follow the instructions in the purchase
agreement
Upon written request, the Board will
clarify?
trust accounting rules
Earnest money for a real estate
transaction:
is not required by law in any state
Under Montana law, mineral and water
rights:
Are divisible and separable
What should be done with the earnest money
in a cooperative sale?
The earnest money must be deposited
within 3 business days unless otherwise
specified
Montana law requires a Representation
Disclosure Form to disclose:
whom the licensee will represent in the
transaction
The seller is out of the country. The Broker has received a written offer that is acceptable to the seller. The seller indicates via phone that she wants to accept. The Broker should:
use a facsimile transfer or electronic
means to obtain the seller’s signature
A listing Broker carefully explained to the buyer
that the Broker represented the seller. The
buyer stated that he clearly understood the
relationships. Has the Broker acted lawfully?
No, the agency relationship disclosure must
be written and signed by the buyer.
A listing must have:
the signatures of all listing owners of
record
An ad for a listed property should include
which of the following?
the agent’s license status
A Montana Broker may split a commission with
a Idaho salesperson only if:
the commission is paid to the Idaho
salesperson’s supervising Idaho Broker
A licensee representing only the seller
must provide the Relationship Disclosure
Form to the buyer or buyer’s agent no
later than when:
Negotiations commence
A listing Broker must:
have a termination date in the listing
A listing firm and selling firm are cooperating
on a 50/50 basis to sell a large ranch.
Unfortunately, the buyer’s large earnest money
check didn’t clear the bank.
The seller agent should notify the seller that
there is no earnest money with the buyer’s
offer.
Prior to license suspension, a Broker is entitled
to a hearing before the Board UNLESS:
by stipulation the Broker has waived the
right to a hearing
A listing Broker must:
attempt to verify ownership
The employment contract between the
Broker and salesperson should include:
the salesperson’s tax status
A salesperson doesn’t pay her license
renewal fee. Her license is terminated. If
she later decides to re-enter the
profession four years later, she must:
retake the licensing examination
A goal of the Affirmatively Furthering Fair
Housing regulation was to:
ban single family zoning in all parts of
the U.S.
The Buyer Broker may receive a
commission from:
any party with the knowledge and
consent of the buyer
Local governments enforce zoning laws by
requiring a/an?
building permit
A real estate broker has a listing in a
residential subdivision which has
undergone government condemnation.
The listing is:
Terminated
How can a homeowner limit the impact of
a mortgage default on the homeowner’s
future credit rating?
Deed in Lieu of Foreclosure
Which is true if the lender accepts a Deed in
Lieu of Foreclosure from a defaulting
mortgagor?
The lender takes title to the property
subject to any junior liens.
Q plans to purchase property by using a
contract for deed.
The payment of all or part of the
purchase price will be deferred.
A Purchase Money Mortgage specifies
each of the following EXCEPT:
debt to income ratio
State law requires that all mortgages be
signed by:
the mortgagor
The rights in foreclosure may be changed
by:
a subordination agreement
Local Bank desires to be able to foreclose on mortgaged property without utilizing the court system. Local Bank should insert which provision in all of its mortgages?
Power of sale clause
Which mortgage clause is most important
to the lender if it is contemplating a
foreclosure?
Acceleration clause
The owner of a vacant lot currently has a
mortgage on the property. The owner
desires to obtain a construction loan. It
will most likely to be necessary for the
owner to obtain a/an:
subordination agreement
The government takes a parcel of
property with unknown ownership. This
is an example of:
Escheat
Which of the following is true regarding
zoning regulations?
they impact the property’s value but
not the property’s title
The right of an individual or individuals to
use and possess real property and to
exclude all others is:
fee simple
A homeowner within a subdivision
that has extensive restrictive
covenants has discovered a violation
of the covenants. The homeowner:
may sue anyone in the subdivision
violating the restrictions.
A and B purchase land as joint tenants.
A dies. Who owns the property?
B
Each of the following may be joint
tenants EXCEPT:
a government or a corporation
A, B, and C have invested in an office building as joint
tenants. W is interested in purchasing C’s portion of
the property.
W may purchase C’s portion and will become a
joint tenant with A and B.
A gives B an ordinary life estate. The life
estate will terminate upon death of the:
recipient
Allison and Trimble desire to purchase an
investment property without establishing
a right of survivorship. They should utilize
which real property ownership form?
Tenancy in Common
A lien:
is created to use property as security
for a debt
In a condominium, the balconies, the post
office boxes, the storage areas, and the
designated parking spaces are all
examples of:
limited common elements
Which document is recorded by a lender
at the same time that the lender initiates
a mortgage foreclosure action?
a lis pendens
A Broker lists a property. The Buyer
rejects Buyer Agency. Which is correct?
The Seller is the principal and the Buyer
is the prospect.
Which refers to a listing where the listing
Broker might receive no commission even
though the listing Broker was the
procuring cause of the sale?
A net listing
If a mortgage is assumed, who would sign
the novation to release the mortgagor?
mortgagee
An optionee is obligated to:
pay consideration for the option
If a contract is entered into by an
intoxicated person, the intoxicated
person may treat the contract as:
Voidable
An enforceable contract requires:
valuable consideration
A seller listed a building at $800,000 but
the furniture wasn’t included. A buyer
offered $800,000 with the furniture to be
included. The seller signed the document
but crossed out the reference to the
furniture.
This is a counteroffer and a rejection
of the buyer’s offer.
Is it legal for a seller to restrict
development to 2 acres or more per tract?
Yes because this does not violate
public policy.
Which of the following is an example of a
real property interest?
a ceiling fan
Which of the following refers to a right
which runs with the land?
an appurtenance
A tenant with a 1-year lease does legal research to determine what will happen if the landlord sells the property. Assume that there is nothing in the lease addressing the situation.
The lease is not affected in any way and the new owner cannot take possession of the rental unit until the lease terminates.
When showing an apartment rental to a
prospective tenant, the property manager
explained that the SubZero refrigerator was
included in the lease. The tenant moved in
but the prior tenant had removed the
refrigerator that belonged to him. Is the new
tenant entitled to the prior tenant’s
refrigerator?
No because it belonged to the prior
tenant.
An optician signed a 1-year lease. At the end of the year, the optician simply moved out without any further oral or written notice. Does the optician owe an extra one month’s rent?
No because no notice is required
A leased property is sold. Which takes
legal precedence?
The Lease
Which of the following is an
appurtenance?
A tree in the yard
When his listing expired, Broker Carl provided both the seller and the next listing broker with the names of the persons to whom Carl had shown the property. This was done to satisfy which listing provision?
Protection Provision
Several real estate firms agree not to
cooperate with another firm offering very
low listing commissions. This agreement
is:
boycotting which violates the Sherman
Antitrust Act.
In return for providing financing for a
developer, a Broker is given the exclusive
listing on all properties in the
development. The Broker is:
an agent coupled with an interest
If the government condemns the whole
neighborhood, including your listing, what
happens to your listing?
The listing is terminated
A residential tenant died. The landlord
seizes the tenant’s furniture in an attempt
to collect the balance owing on the rent.
This is an example of illegal:
Distraint
A tenant failed to pay rent. Which provision in the lease would permit the landlord to avoid a civil trial yet enter a judgement against the tenant in the public records?
Confession of Judgment Provision
A buy-sell agreement calls for the seller to
provide a standard title policy issued by a
title company of his choice. The buyer
offers to increase the purchase price and
thus the net proceeds to the seller and
Broker if he can use a different title
company. This is
Lawful
Mary is a licensed Broker acting as a property
manager. She receives a rental application from
a Russian who will be working in a local hospital
to gain knowledge to return to a similar position
in Russia. Mary is concerned about the
applicant’s visa status. Mary is best advised:
not check the applicant’s visa status.
Antitrust laws are designed to:
Promote business competition
Which environmental hazard is most
easily detected AND mitigated?
Radon
A listing seller says that she will only
consider cash offers. The broker
should present:
ALL offers
Under the Comprehensive Environmental
Response, Compensation, and Liability Act
(CERCLA), who is liable for damages from
industrial pollution on the property?
Seller
A borrower has a negatively amortized loan. Which of the following is
true about such loans?
The monthly payment is insufficient to pay the interest thus the loan
balance is increasing.
An adjustable-rate mortgage (ARM) would have potential
disadvantages for which of the following borrowers?
A retired couple
In a loan with private mortgage insurance (PMI) which of the following
is true?
The borrower will have a smaller down payment
In a residential neighborhood the Megan’s Law registry indicates an
individual on the registry lives in the neighborhood. What are the
implications of this fact?
Residential real estate values may decrease.
At closing, which of the following transactions are likely to be part of
the settlement statement?
Property taxes paid in advance will be prorated and a credit to the seller
Which of the following would not be considered relevant in
determining if a real estate broker or salesperson violated Federal Fair
Housing laws?
The motives of the broker
An adjustable-rate mortgage would be most
disadvantageous for which borrower?
A retired couple
How much or little land is available to sell
reflects the concept of:
Scarcity
When a property manager receives a security
deposit for a rental, what should they do next?
Give it to the Broker who will put it in the trust account.
A transfer tax levied by the city or state is
computed based on:
The sale price of the property.
A settlement charge at closing that is NOT
prorated is:
The sale price
On a convention mortgage with a high
loan-to-value ration, the mortgage insurance is
paid by:
The Buyer
In the U.S. Government Survey, the line
running East and West is called:
The Baseline
The replacement cost of a property as used
in the cost method of valuation is described
as:
The cost to build a property with similar materials and utility.
The fact that land and other real estate can be
used for many things is the basis of value from:
Utility
Avulsion: A big storm, 100-year flood, etc. washes away half of your
property. Did the property line change?
NO!
What an appraiser does to weight the three methods
used in appraisal to arrive at the final estimate of the value.
Reconciliation:
number in a Township starting in the NE corner and east
to west and then back west to east; serpentine!
Sections
VA loans require an appraisal from a
VA certified appraiser
Package or Chattel Mortgage is secured by
personal property
$5 consideration given for a written right
of first refusal is:
VALID
An offer may be accepted by:
The offeree only
A Broker has been charged by HUD with a violation of the Fair Housing laws. Why would the victim prefer to have the dispute heard by a Federal Court rather than by an Administrative Law Judge?
The Federal Court judge has no limit
on the amount that can be awarded
as monetary damages.
An appraiser is estimated the value of a home in a neighborhood. The
city has just announced that a planned park nearby will be completed
within the year. The appraiser estimates that this will increase the
value of the property according to the
Principle of Anticipation
An adjustable rate mortgage would be best for which
borrower?
A buyer who does not plan to own the house for
very long.
A mortgage loan balance being paid down
through periodic payments is called:
Amortization
