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45 Hour Class > Practice Exam > Flashcards

Practice Exam Flashcards

1
Q

When does economic life begin?

A

When the improvements are constructed

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2
Q

What describes land and anything attached to it?

A

Real property

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3
Q

If an agent is found guilty of false advertising, what may the FTC issue?

A

A cease-and-desist order to stop running the ad

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4
Q

Where does most predatory lending occur?

A

The subprime market

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5
Q

Credit unions and commercial banks are what type of lenders?

A

Primary mortgage market lenders

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6
Q

What is a promissory note?

A

A contract that is a promise to pay back a loan

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7
Q

The Fair Housing Act protects which of these persons?

A

A person recovering from substance abuse

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8
Q

When does possession transfer in most transactions?

A

The day of closing

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9
Q

If an agent who represents the seller, gives advice to a buyer regarding an offering price, what type of agency would it create?

A

Undisclosed dual agency

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10
Q

What is a comparison of the prices of similar properties that have recently sold, similar properties currently on the market, and properties that have not sold called?

A

A CMA

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11
Q

Loan novation is a form of:

A

assumption and assignment.

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12
Q

In contract terms, the exchange of something of value is called:

A

consideration.

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13
Q

Within what how many days after receiving a complaint will HUD determine if there is reasonable cause to charge discrimination?

A

100

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14
Q

What tax was eliminated on small businesses due to the Taxpayer Relief Act?

A

The alternate minimum tax

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15
Q

What is a one page document that is used to update or make changes to the Seller’s Property Disclosure Statement?

A

The Seller’s Property Disclosure Statement Addendum

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16
Q

One example of discrimination in lending is:

A

discriminating in a property appraisal.

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17
Q

What is a good faith gesture that shows the seller that the buyer is serious about the offer and intends to carry out the terms of the contract?

A

The earnest money deposit

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18
Q

Who provides detailed information about identifying consumer issues?

A

The Office of Pennsylvania’s Attorney General

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19
Q

What is the payment schedule for most mortgage loans?

A

Mortgage loans are paid in arrears.

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20
Q

Before an agent makes contact with a FSBO he or she should:

A

check the Do Not Call list.

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21
Q

What are two types of breach of contract damages?

A

Loss of bargain damages and special damages

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22
Q

Who works on behalf of landlords and property management companies to collect rent and provide customer service for renters and tenants?

A

A leasing consultant

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23
Q

In what type of residential building does each owner have a percentage of ownership of the entire property?

A

A condominium

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24
Q

When must cooperating brokers determine their compensation terms?

A

They must determine compensation before beginning efforts to accept the offer of cooperation.

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25
Q

According to the CAN-SPAM Act, commercial e-mailers must reveal the identity of the sender and:

A

the name of the advertiser entity.

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26
Q

What happens when an agent intentionally fails to reveal a material fact?

A

Silent misrepresentation

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27
Q

Exclusionary discrimination is typically:

A

subtle.

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28
Q

What is a legal remedy intended to mitigate or correct an ethical issue?

A

A government regulation

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29
Q

What is the only federal grant program with the sole purpose of helping private organizations prevent and address housing discrimination issues?

A

The Fair Housing Initiatives Program

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30
Q

What section of the Seller’s Property Disclosure discusses defects in flooring?

A

Structural Items

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31
Q

What is another term given to savings and loan associations?

A

Savings banks

32
Q

What document itemizes the real estate taxes on a home and whether any taxes are due or are paid in full?

A

A tax cert

33
Q

Properties that have existing easements could be viewed as:

A

less desirable.

34
Q

What covenant assures that the grantor owns the estate to be conveyed and has the right to do so?

A

The covenant of seizen

35
Q

According to Freddie Mac guidelines, funds from gifts may be used as all or part of the 20% down payment. However, Freddie Mac requires a minimum 5 percent borrower contribution if the down payment is less than:

A

20%.

36
Q

The two types of municipal bonds are general obligation (GO) bonds and:

A

revenue bonds.

37
Q

What do you call an individual broker who is employed by another broker?

A

An associate broker

38
Q

What type of negotiation skills training is offered by the National Association of REALTORS®?

A

The Real Estate Negotiation Expert certification

39
Q

Compensation that a broker receives is generally revealed in a listing agreement, a buyer’s agency agreement or:

A

a management agreement.

40
Q

What function does the Federal Housing Administration (FHA) play in the mortgage loan process?

A

FHA insure loans.

41
Q

What causes population shifts away from or toward a certain locale?

A

Area preference

42
Q

What is it called when another lender buys a mortgage loan?

A

An assignment

43
Q

Individuals and business organizations whose sole enterprise is performing a real estate-related service or function are called:

A

real estate professionals.

44
Q

What should a broker consider if a seller insists on an exaggerated listing price?

A

Refusing the listing

45
Q

Since the Department of Veterans Affairs (DVA) lenders are now protected in the event of a default by the borrower, lenders have agreed to loan:

A

four times the current DVA Entitlement.

46
Q

A market study is made to find those comparable sales and listings that are what?

A

Similar to the property being appraised

47
Q

What the market recognizes as “the change in value an improvement makes to a property” is called what?

A

Contribution

48
Q

Silence often conveys a sense of:

A

control and power.

49
Q

Flood insurance protects the owner from damage caused by:

A

floods or tidal waves.

50
Q

When a buyer makes payments on a mortgage the amount going to interest decreases and the amount going to the principal:

A

increases.

51
Q

How are salespersons, who are independent contractors paid?

A

By the job

52
Q

An underwriting red flag occurs when there is a gift letter without:

A

any bank statements to back it up.

53
Q

What is an area of commercial law that deals with a set of contractual, quasi-contractual and non-contractual fiduciary relationships involving an agent and a principal to create legal relations with a third party?

A

The law of agency

54
Q

When evaluating a credit report, what do lenders typically use to determine if a borrower will qualify for a loan?

A

Qualifying ratios

55
Q

A breached contract is a(n):

A

broken contract.

56
Q

Who is responsible for the actions of real estate agents?

A

The broker

57
Q

What type of survey gives the estimated location of a home and improvements on the lot, with the accuracy of plus or minus one foot?

A

Spot

58
Q

When a home is listed, typically demand and interest fade after:

A

three or four weeks.

59
Q

What do parties create when they have no formal agency relationship but develop one through actions?

A

Implied agency

60
Q

What does Entitlement refer to in a Department of Veterans Affairs loan?

A

The maximum number of dollars that DVA will pay if the lender suffers a loss

61
Q

A listing presentation should cover your skills and expertise as well as:

A

that of your firm.

62
Q

What type of loan could be a wise choice for someone who plans to own the property for a short time and believes the property will appreciate during that time?

A

Interest-only loan

63
Q

Agent Mary had an ethics complaint filed against her by a buyer with whom she had a buyer’s agreement. An article was cited in the violation, along with a supporting Standard of Practice. Mary could be found:

A

in violation of the associated Article.

64
Q

What instrument does a trustee use to reconvey title back to the borrower?

A

Deed of Reconveyance

65
Q

An arrangement that requires the buyer to agree to something in exchange for the sale is called:

A

a tie-in arrangement.

66
Q

Units of demand, by property classification are residential, agricultural, commercial, and:

A

industrial.

67
Q

If product price increases, demand is increasing in relation to:

A

supply.

68
Q

Contract law states that a material breach of contract is a(n):

A

irreparable break in a legally binding contract.

69
Q

What is the position regarding the offering of premiums, prizes, or merchandise to list a property?

A

It is unethical.

70
Q

What section of the Buyer Agency Contract states that the contract is self-inclusive and any changes must be in writing and approved by all parties?

A

Entire Contract

71
Q

What is the longest period a listing contract can last?

A

1 year

72
Q

A broker price opinion must include what the price was based on and:

A

applicable market data.

73
Q

Which appraisal approach is a means of appraising a property based on the assumption that value is equal to the present worth of future rights to income?

A

Income

74
Q

The final step a licensee will take when preparing a CMA is:

A

estimating a reasonable selling price range.

75
Q

Mediation is often used to avoid

A

taking a case to court.

45 Hour Class (33 decks)

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