Post License Test Flashcards by kris Sahadeo

A sales associates leads are sorted into five categories. Which is Not one of those categories?

Close friends and family
Customers
Targeted friends *
Acquaintances

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Under the Americans with Disabilities Act, architectural barriers must be removed to maximize accessibility if it is readily achievable to do so. Readily achievable is defined to mean that

The removal of barriers can be accomplished with little difficulty or expense

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A sales associate employs a licensed personal assistant. The assistant will prepare CMAs, design property flyers, hold open houses, and prospect for listing appointments. The assistant will be paid a salary of 12$ per hour and 20% of the commissions received by the sales associate. Which method of payment will satisfy all legal requirements?

The associate may pay the salary and withhold taxes, but the broker must pay commissions.

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When Sammy started with his new office, his broker suggested he practice filling I. A listing agreement using his own house. This activity will help Sa,,y squire what?

Technical Knowledge

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Wilson was preparing a CMA for a three bedroom home in Westlake. One of the three comparable sales he reviewed was smaller by 80 square feet, had an extra garage stall, and was in better condition. He made a 6,000 adjustment for square footage, a $5,000 adjustment for the extra garage stall, and a 3,000 adjustment for condition. Which is CORRECT about his analysis?

The subject home is less valuable than the comparable property

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One of the keys to prospecting success is NOT

Technical Knowledge

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Larry is making an offer for a new home. He wants to have his spouse’s name on the deed in addition to his own, but she won’t be present to sign the contract. Larry should

Amend the contract to include his wife’s name at closing

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The BEST source of listings for a new sales associate is

Sphere of influence

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Apartment properties with “adults only” designations are illegal except when

At least 80% of the units have at least one occupant who is at least 55 years of age

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John is developing a new strip shopping center in Auburndale. Which parking lot design features must be included to meet the requirements of the Americans with Disabilities Act?

There must be at least one accessible space for every 25 total spaces

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In Heritage Oaks subdivision, a relatively new neighborhood with 345 homes, the media. Home price is $350,000: last year, 58 houses were sold, a 15% decline from the previous year the TURNOVER INDEX in heritage oaks is

17%

58/345= .16812 rounded is 17%

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Sales associate Harold has prepared an appraisal of Smiths’ home. The purpose of this was so that his buyers could use the appraisal to secure in financing at Apopka National Bank. Which is NOT correct about this situation?

As long as Harold followed USPAP requirements, his appraisal was legal

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When you answer the phone and speak with a prospective buyer, your principal objective should be to

Make an appointment

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A fixed-rate, amortized mortgage with 26 payments resulting in a faster loan payoff than the traditional 30-year mortgage is called a

Biweekly mortgage

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Which is NOT allowed under the CAN-SPAM Act?

Failure to include an opt-out method in commercial advertisements

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A sales associate leans back and joins his hands behind his head while talking with a prospect. The sales associate is giving the impression of

Superiority

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Sylvia had a pool put on her property last year that cost 45,000. This year, she sold her house. The appraiser valued the pool at $12,000. This demonstrates the principal of

Contribution

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A transaction broker had the duty of

Limited confidentiality

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A contractor who disturbs paint in a 40-year-old house

Must be certified and follow specific work procedures

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Sales associate s find most of their FSBO contacts from

Classified ads

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John’s home sells for 260,500. Expenses of the sale are 3,800. The brokerage fee is $18,235. Proration so for taxes and interest are $4,450. The mortgage payoff is $162,500. What are the seller’s proceeds fro, the sale?

71,515

260,500-162,500-3,800-18,235= 71,515

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Sales associate Jones is preparing a seller’s net statement for Novaks. She estimates a closing date of June 26. Taxes are estimated at 4,000 and interest for June is $3,540. If she rounds to the nearest $100, which entries should she make on the statement

Charge the seller $2,000 for taxes and, to be safe, charge the seller $3,540 interest

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Which is NOT a requirement of a successful listing presentation?

Have at least six months’ experience in making listing presentations

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Which characteristic of a neighborhood is LEAST likely to make it a good farm area

Low price range

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A single agent broker must give a brokerage relationship disclosure when a transaction is the

Sale of a condominium

When you explain the pricing process during a listing presentation, you would NOT ordinarily discuss

The requirements of the Fair Housing Act

Brooke wants to earn at least 90,000 next year. She plans that 60% of the income will come from listings sold and 40% from sales made. If the average commission from listings sold is $3,000, how many listings must Brooke sell in order to achieve that portion of her goals?

Florida home inspectors

Must have a high school diploma, complete a 120- hour course and pass a state examination

Which is NOT one of the three types of operating expenses of an income property

Debt service

The pricing pyramid is a visual graphic used in the pricing process showing

That there will be more activity if the property is priced from homes that have been sold.

A principal change to RESPA in 2010 was

A redesigned three-page Good Faith Estimate

The Florida Office of Financial Regulation requires that

Loan originators have a criminal background check made annually at renewal time

Apartments that are currently available for rent and in excellent condition will be part of a

Show list

A salesperson wishes to take home 60,000 annually. If taxes, dues, advertising, and fees are about 35% of his total earnings, he should set his goal at

$92,300

Which is recommended when showing properties to prospective buyers

Set appointments with the seller using a range of time rather than a specific time

Two successive year-to-year quarterly increase of the gross domestic product are interpreted as a

Recovery

Under the Do-Not-Call Registry rules, a telemarketer

May not use the registry to find new prospects

Exclusive agency listings

May be entered into the MLS

Florida law does NOT require brokers to

Have minimum commission rates on all listings

A comparable property has four bedrooms; the subject property has only three. If the appraiser estimates the difference based on number of bedrooms is $10,000, there should be a

Minus $10,000 adjustment to the comparable

An appraiser estimates that the better physical condition of the subject property requires an adjustment of $6,000 and makes a

Plus 6,000 adjustment to the comparable

A comparable property has four bedrooms, but is in worse physical condition than the subject, which has three bedrooms. The appraiser estimates that the difference in condition warrants a $6,000 adjustment, and the difference in number of bedrooms requires a $10,000 adjustment, when the correct adjustments for size and physical confirm have been made, the resulting net adjustment for these property characteristics will be

Minus $4,000

A private homeowner may not discriminate in the sale of his residence based on race

Because of the civil rights act of 1866

All other things being equal, probably the most convincing evidence that will help a seller decide that the buyer is "ready, willing and able" is

A substantial good faith deposit and a bank pre-approval letter

Which term is in the junk fax prevention act

Established business relationship

The Visions' home sells for $430,000. Expenses of the sale are $4,800. The brokerage fee is $21,500. Proration so for taxes and interest are $6,450. The mortgage payoff is $362,500. What is the seller's equity?

$67,500

Sales associate Bertha prepared an offer on the Smiths' residence. She inserted a handwritten provision that conflicted with one of the printed terms of the contract form. If the seller signs the offer, the effect of the conflicting provisions will be that the

Handwritten portion supersedes the printed provision

In case the seller default and the contract was written using the FAR Residential Sale and Purchase Contract, the buyer

May cancel the contract

What should buyer Henry do to make sure the seller didn't damage the home during moving

Do a pre-closing walk through inspection

Open listings

May be oral, written, or implied

Before closing, the sales associate should NOT

Check out the plumbing, electric appliances, and heating and air systems to be certain they are in working order

Owner John wants to sell his house and would prefer to save the commission. He lists with broker William on the basis that if the property is sold by a broker, William is entitled to a commission, but if John sells his own property he owes no commission. This is an

Exclusive listing

To protect herself from mortgage fraud, Nelda should NOT

Sign any loan documents that contain blanks

When listing a property, a sales associate should NOT get the legal description from

The county tax appraiser's records

Questions to ask when qualifying a buyer's housing objectives do NOT include

How much cash is available for a down payment

A percentage added to the index of an adjustable rate mortgage that results in the "calculated rate" is the

Margin

If prospective buyers currently have a home that must be sold before they can buy, the sales associate should

See the home and make a listing appointment

A sales associate is completing a buyer's cost estimate. Price is $150,000 and buyers will get an 80% loan. The GFE shows total settlement costs of $7,100. The lender estimated prepaids at $2,200. If the buyer gives a $6,000 good-faith deposit, how much would be due at closing?

$33,300

Except for an uncooperative owner or tenant, the major reason listings expire is almost ALWAYS

Overpricing

A sales associate showed seven homes to a couple. They found just the right home, but tells the sales associate they want to "sleep on it". The sales associate should

Ask permission to prepare the paperwork as if they were buying, then go over it

When curb appeal is not very good, buyers often ride by a for-sale-by-owner house without stopping. This would be discussed during a listing presentation as the problem of

Showing the property

A property sold for $149,240. The buyer paid 20% Dow. And financed the balance with a new mortgage. How much must be paid for the documentary stamp taxes on the deed?

$1,045.10

Which best describes a "nominee loan"?

The identity of the borrower is concealed through the use of a straw buyer who allows the borrower to use the straw buyer's credit history

A principal is responsible for the acts of his or her

Single agent

Sales associate Williams is estimating the prepayments for a new loans that will close on June 7. If the first payment is due on August 1, how will the prepaid interest be calculated for the closing statement?

The buyer will be charged from June 7 through June 30

A seller's listing agreement with a broker contains a provision that automatically extends the agreement an additional 90 days after expiration unless canceled in writing by either party. The listing is

Void

The principal of conformity to maintain and enhance property values in a subdivision is protected best by

Restrictive covenants

A technique recommended in the text to help sellers to favor your buyers over competing buyers is to

Have your buyers write a letter to the seller telling why they want to buy the home

A FAR Residential Purchase and Sale contract contains a contingency that the appraisal must equal or exceed the purchase price of $187,000. The appraisal comes back at $183,000. The contract is now

Voided by the buyer

If you are presenting an offer on a property listed with a cooperating broker, you should NOT

Present the offer without the listing agent being present

Which is NOT the right way to make successful prospecting calls?

Make them at random hours on different days

The LAST item that should be covered when presenting an offer to the seller is the

Price

The federal law requiring fair consideration of consumer loan applications from women and minority races is the

Equal credit opportunity act

The minimum legal description for a platter subdivision would NOT include

The name of the subdivision

A title defect is found which. Is difficult to remove by ordinary means. This cloud is the. Normally cleared by

Filing a suit to quiet title

Sales associate John is talking with a customer. She. The customer nods his head, John smiles and occasionally nods. John is using a reflecting method called

Matching

When staging the home, the seller should NOT

Demonstrate her personality with unique decorating touches

Which would NOT be included in the operating expenses of an income property

Mortgage principal

A non-cash expense intended to account for the eventual wearing out of major components of the property is called

Reserves for replacements

The Americans with Disabilities Accessibility Implementation Act does NOT protect

Homosexuals

The phase of a business cycle after a recession is which consumer confidence is shaken and consumers reduce spending is called

Contraction

Which is NOT one of the four basic loan processing procedures

Determining a buyer's housing objective

John has a house listed at $200,000 on Third Avenue. It's overpriced and he feels it has only a 70% chance of selling in the original listing term. He also has a $300,000 house that has an 80% chance of sale. A quality review of his listings shows he realistically has

1.5 listings with a volume of $380,000

A sales associate receives a good faith deposit from a buyer on Wednesday. If the broker holds the escrow account, the funds must be deposited no later than

Monday of the following week

Jill applies for a $200,000, 30-year fixed-rate mortgage loan at 5%. The mortgage payment factor is .0053682. Taxes for the year are $4,000 and insurance is $2,400. Jill's monthly payment for PITI will be

$1,606.97

A loan officer tells a buyer that the mortgage interest rate will be higher because the home is located in a minority area. This is an illegal practice called

Redlining

Rudy agreed to purchase a home from sam, an acquaintance. It was not written, but the parties shook hands to cement the deal. Rudy paid a $5,000 earnest money deposit to Sam, which makes it an

Unenforceable contract

Which transaction using the FAR Residential Purchase and Sale Contract would be MOST appropriate?

Sale of a house

If a contract for the sale of a condominium includes a list and separate valuation of the personal property,

Sales tax must be paid on the personal property

A buyer is ready to purchase with a 15% down payment. The sales associate suggests that he put down at least 20% percent if possible because

The buyer can save money by not having to pay for mortgage insurance

When vacancy and collection losses are subtracted from potential gross income the resulting amount is called

Effective gross income

Owners of the 650 homes in Happy Farms subdivision list their houses, on average, every six years. If sales associate Marian farms that neighborhood and lists 40 percent of the homes, how many homes can she expect to list this year

At closing a seller will not be asked to sign an affidavit that

He is losing money on the sale

Which is NOT a component of a full title report

Credit report

Which is NOT be considered a "post-closing duty?"

Making a walk-through inspection of the property

Callers on real estate for sale classified advertising generally ask the licensee for the

Price of the property

If the property taxes for the year are $4,780, the closing date is January 16, with the day of closing belonging to the buyer, What is the proration p, using the 365-day method?

Debit seller, credit buyer 196.44

Long term capital gains are taxed at a minimum of

15 percent

Two competing brokers have lunch and agree to increase their commission rates to seven percent at the same time, thus violating

Antitrust laws

The fact that a property was on the site of a homicide

Need not be disclosed in a real estate transaction