Prepagent terms from YouTube studying

Question 1

If five people owned property as joint tenants:

A) and one of the owner dies, his heirs become tenants in common with the surviving co-owners
B) they need not own equal interest in the property
C) each co-owner has separate legal title to his undivided interest
D) there is still only title to the whole property

Answer 1

D) there is still only title to the whole property

Joint tenancy can be summarized with the acronym TTIP: Time, title, interest and possession. No matter how many joint tenants there are, there is still only one title to the entire property. Each tenant must hold an equal interest in the property.

Question 2

Less-than-freehold estates consist of estates held by:

A) optionees
B) trustees,
C) Lessees
D) grantees

Answer 2

C) Lessees

Less than freehold estate: also referred to a “leasehold estate“, a less than freehold estate is held by a lessee [it is important to note that it is not necessary to sign for lessee because acting as lessee is the same as signing as lessee] they are considered personal property or a chattel real

Question 3

When I situation is such that damages was not provide an adequate remedy (like a breach of contract contract), a suit for specific performance could be successfully brought by all of the following except:

A) the seller of a condominium
B) one of the principals being represented by an attorney-in-fact.
C) a licensed real estate broker acting as agent for the principals
D) the buyer of an income property

Answer 3

C) a licensed real estate broker acting as agent for the principals

Suits for quote specific performance “our remedy provided by a court that orders the losing side to perform it’s part of a contract instead of paying monetary damages to the winner. One example is when a seller backs out of a real estate sales contract, but the buyer would prefer the court to force the seller to sell rather than the awarded financial settlement. In real estate brokers cannot see for specific

Question 4

Which of the following approaches to value estimate tends to set the upper limits of value:

A) Replacement
B) income
C) comparable sales
D) market comparison

Answer 4

A) Replacement

Cost (replacement) approach set the upper limits of value. Cost (replacement) approach is the process of estimating the value of a property by adding to the estimated land value the appraisers estimate of the replacement cost of the building, less depreciation

Question 5

The unit of comparison when using the next data approach to appraise a single-family residence, is the:

A) capitalization rate;
B) square foot
C) cubic foot
D) Entire property

Answer 5

D) Entire property

Market data (comparison) approach utilizes entire property as the unit of comparison

Question 6

An appraisers narrative appraisal report of a single – family residence probably would contain no reference to:

A) A special studies zone map
B) the neighborhood amenities
C) The appraisers qualification
D) a buyers financing

Answer 6

D) a buyers financing

Narrative report is the most comprehensive of the three types parentheses letter form, short form, narrative) that includes all the information obtained by the appraiser as well as the methodology behind the calculations and value conclusion. But as comprehensive as it may be it does not contain the buyer‘s financial condition because how you pay for the property is not relevant to the value of the property itself.

Question 7

The usual listing contract authorizes a broker to:

A) convey the real property that is the subject of the listing
B) find a purchaser and Bind his principal to a contract to sell
C) assure prospective purchaser that an offer meeting the terms of the listing will be accepted by his principal
D) find a purchaser and accept a deposit with an offer to purchase

Answer 7

D) find a purchaser and accept a deposit with an offer to purchase

The usual listing contract authorizes a broker to find a purchaser and accept a deposit with an offer to purchase

Question 8

Economic obsolescence is a cause of depreciation that can occur because of:

A) wear and tear of the property
B) An out of date heating system
C) poor design in the property
D) Factors extraneous to the property

Answer 8

D) Factors extraneous to the property

Economic obsolescence is a cause of depreciation that can occur because of factors extranuous to the property. In other words, your property loses value for reasons that have nothing to do with the property

Question 9

What is the Mello-rose tax?

Answer 9

California tax for local improvements in a new community that’s being built

Question 10

Who usually has responsibility for providing streets, utilities, sidewalks, and curves in a new subdivision?

A) the builder/developer
B) the city
C) the local office of building and safety
D) the county

Answer 10

A) the builder/developer

Developers responsibilities are to make sure the streets, curbs, sidewalks, utilities and gutters in a new subdivision are completed and functional

Question 11

The law which gives cities and counties control over the physical design of subdivisions is:

A) the subdivided Lands Act
B) the Architecture Control Act
C) the City and County Act
D) the Subdivision Map Act

Answer 11

D) the Subdivision Map Act

The subdivision map act gives certain municipalities control over subdivision design. It is enforced by the respective city or county in which it is enacted

Question 12

When a lender makes a loan regulated by the real estate settlement procedures act, the loan applicant must be provided with which of the following?

A) An application for private mortgage insurance
B) A loan estimate
C) A bill of sale
D) forms for applying for the homeowners exemption

Answer 12

B) A loan estimate

When a home buyer applies for a home loan, the TILA/RESPA Integrated Disclosure rule requires the lender to provide a loan estimate to the buyer within three days of the receipt of the loan application, and all revisions have to be delivered at least seven days before closing. The loan estimate details the loan terms, mortgage payments, cost at closing and other cost and fees related to the loan, many of which cannot change

Question 13

The term “warehousing“ is used in real estate financing means:

A) The financing of industrial warehouses
B) A mortgage company collecting loans prior to resale
C) A large bank of savings and loan
D) unregulated real estate loans

Answer 13

B) A mortgage company collecting loans prior to resale

warehousing is when a lender collects loans and puts them out as a package for sale. It is the process by which a mortgage banker or mortgage broker assembles mortgages that he or she has made and prepares the mortgages to be sold in the secondary mortgage market. By selling these mortgages the originator now has additional capital that can be used to make more mortgages which intern may be sold in the secondary mortgage market.

Question 14

When a lender loans a borrower 100% of the purchase price of a house, and the loan is not government – related, the lender would be best protected by:

A) a downturn in the economy
B) low monthly payments
C) a low interest rate
D) appreciation

Answer 14

D) appreciation

A lender is best protected by the appreciation of the property with loans made for 100% of the purchase price of the property. Ideally the value of the home is always greater than the debt to the lender, so if the borrow defaults the lender can sell the property and get their money back.

Question 15

Difference between mortgage vs trust deed

Answer 15

Mortgage 2 part system

• mortgagor
• mortgagee

Trust deed - 3 part system

• trustor - gives the pledge
• trustee: neutral third party Who receives it on behalf of the beneficiary
• beneficiary

Question 16

Which of the following is an example of a less – than – freehold estate?

A) estate in severalty
B) fee simple determinable
C) leasehold
D) fee simple estate

Answer 16

C) leasehold

Freehold and various forms of fee simple estates mean ownership, while a lease-hold estate means renting

Question 17

A property owner lists his property for sale with a broker. During the negotiations, the owner told a broker that the owner wanted $138,000 for the property. And anything above that amount the broker could keep as his commission. The listing with this type of provision is known as a:

A) open listing
B) gross listing
C) non exclusive listing
D) net listing

Answer 17

D) net listing

Not listing agreements are legal in many states and frowned upon in the others. That’s because of the potential for unfair advantage and the conflict of interest they create. For example let’s say a seller believes his home is worth $138,000 and is happy with that amount however the broker thinks he can get $175,000 and does instead of a more typical 9500 and commissions under in that listing..

Question 18

A broker who holds a valid listing on a property places a classified ad for the property containing only the following information: “for sale: three bedroom, two bath home with swimming pool. Asking price $165,000. Telephone 555–9276“. This type of advertisement would be an example of a:

A) Silent ad
B) qualified ad
C) display ad
D) blind ad

Answer 18

D) blind ad

Blind advertising is any real estate advertisement that does not properly identify the broker. When advertising real property as an agent, a salesperson must always remember to include the employing broker‘s name in the advertisement.

Question 19

One of the main benefits of a sale-leaseback transaction would be:

A) you can get the deposit back with no objection
B) you have the option to lease the property back after the termination of the lease
C) The ability of the seller to deduct all of his future rent payment as business expenditures
D) The ability to maintain the book value of the new buyer

Answer 19

C) The ability of the seller to deduct all of his future rent payment as business expenditures

In the sale-leaseback the seller becomes a tenant, thus allowing the seller to deduct all of his future rent payments as a business expenditures

Question 20

What is the sale-leaseback?

Answer 20

When you sell the property and you become the tenant

Question 21

In order to comply with the regulations of the state Housing Law, a person should seek the issuance of a building permit from:

A) the California Department of Real Estate
B) the local Department of Building and Safety
C) the nearest office of the Department of Housing and Community Development
D) the California Department of Urban Renewal

Answer 21

B) the local Department of Building and Safety

The local Department of Building and Safety is responsible for issuing building permits

Question 22

Property taxes are described as “ad valorem” taxes”, “Ad valorem” most nearly means:

A) Replacement value
B) According to value
C) Market value
D) Reproduction value

Answer 22

B) According to value

Property tax by definition is a tax that is assessed according to value, or an “ad valdorem” tax.

Question 23

What is the California Transfer Disclosure Statement?

Answer 23

It’s what the seller has to fill out to reveal all known defects on the property. And if anything is faulty, the buyer has two years to go after them for it

Question 24

What type of appraisal license is required to appraise a commercial strip mail valued at $700,00:

A) certified general license
B) retail appraisal license
C) certified residential license
D) Residential real estate license

Answer 24

A) certified general license

An appraiser intending to appraise a strip mall woulbfirstcneed to acquire a certified general license

Question 25

Definitions of market value is least concerned with:

A) market cost
B) objective value
C) value in exchange
D) open market

Answer 25

A) market cost

Market value is the present worth of one commodity to draw on the open market. How much an item costs has no relevance to value

Question 26

What are settlement services in regards to RESPA?

Answer 26

any service provided in connection with a real estate settlement, which includes (but is not limited to) origination of a loan, closing services, title services, title insurance, document preparation, property surveys, inspections and appraisals, the rendering of credit reports.

RESPA prevents illegal kick backs from these services

Question 27

The main purpose of “RESPA” (Real Estate Settlement Procedures acts) is to:

A) To provide consumers with enough information to enable them to shop for settlement services
B) Place a fixed limit on settlement costs on a residential property of four units or less
C) To standardize settlement services through out the United States
D) place a fixed limit on settlement costs in all real estate transactions

Answer 27

A) To provide consumers with enough information to enable them to shop for settlement services

RESPA applies to 1-4 family residential dwellings and is primarily there to provide consumers with enough information to enable them to shop for settlement services.

Question 28

What are special purpose properties?

Examples of special purpose properties, and what appraiser would likely use what approach for them:

Answer 28

Properties with no income or comparable property

Special purpose property examples - schools, libraries or police stations

Appraiser would likely use cost approach for them

Question 29

If an appraiser is appraising a special purpose property he would probably use the:

A) income approach
B) market date approach
C) land residue approach
D) cost approach

Answer 29

D) cost approach

Cost (replacement) approach is most commonly used to appraise special purpose properties or buildings

Question 30

What are less-than-freehold estates

Answer 30

leases:

Leasehold estate

• an estate for years
• estate from period to period
• Estate at will
• estate at sufferance

Question 31

A fee simple estate is

A) a leasehold estate
B) an estate for years
C) a less-than-freehold estate
D) an estate of inheritance

Answer 31

D) an estate of inheritance

A fee simple estate, also referred to as an “estate of inheritance “, is a type of freehold estate,. It is indefinite in duration. A fee six estate can also be sold or inherited, and it is not free of encumbrances. A fee simple absolute is the most interest one can hold.

taxes are still involved

Question 32

Constructive fraud

Answer 32

For an action or series of actions to be considered constructively fraudulent instead of actually fraudulent, the acts must have taken place without the intent to deceive another party. Depending on the details of the situation, accidental omissions and honest accounting errors may be considered constructive fraud.

Question 33

Attempted fraud

Answer 33

Acts of deception that fail are considered to be attempted fraud and treated separately than actual fraud, but attempted fraud can still carry stiff penalties.

Question 34

Actual fraud

Answer 34

When the general public refers to fraud, what they are usually referring to is what the courts deem actual fraud. In order for an act of deception to be considered actual fraud, the act must be material, willful and performed with the intent to deceive. Most importantly, the deceptive act must be successful.

Question 35

A contract in which all parties have to fill their promises is a:

A. Completed contract
B. expired contract
C. executory contract
D. executed contract

Answer 35

D. executed contract

Question 36

The position of a building on it site in relationship to its surroundings is normally referred to as it:

A. Topography

B. orientation

C. elevation

D. Plottage

Answer 36

B. orientation

Orientation refers to a building’s positioning on its site

Question 37

According to the department of real estate regulations, it would be considered commingling if a broker:

A. deposit into the trust fund account a renter’s check for the security posit on an income property the broker owns.
B. leaves funds owed to him as a commission in his trust fund account for three weeks.
C. deposit funds received from two different individual buyers into the same trust account.
D. deposit $200 of his own money into the trust account to cover bank fees on that account

Answer 37

A. deposit into the trust fund account a renter’s check for the security posit on an income property the broker owns.

Coming going is when a real estate broker makes his client or customer funds with a broker‘s personal finds in the same account. By law, brokers are required to maintain a separate trust or escrow account for other parties funds that are held

Question 38

Although a title insurance policy does cover the risk of loss for many reasons, which of the following risk it is not covered in a title insurance policy?

A. failure of husband or wife to sign the deed
B. A zoning ordinance, regulation or plan
C. A document in a series of records is forged.
D. An unpaid city tax not shown in the policy

Answer 38

B. A zoning ordinance, regulation or plan

Title insurance generally doesn’t cover changes in zoning or city regulations

Question 39

Land zoned for use as the site for a multi family residential developments (such as apartment buildings) would be denotated as:

A) M-3
B) R-3
C) C-3
D) A-3

Answer 39

B) R-3

Multi-family residential development is zoned as R-3

Question 40

Henry made an offer to purchase real property. However, he died of a heart attack before the listing broker could notify him of a nonqualified, signed acceptance by the seller. Based on these facts, which of the following is true?

A. The offer and acceptance constitute and enforceable contract
B. the death of Henry constituted a revocation of the offer.
C. notification of the administrator or executor would bind the estate.
D. the sale would not be binding because the deed was not delivered before Henry’s that.

Answer 40

B. the death of Henry constituted a revocation of the offer.

In the event that a buyer dies prior to an acceptance by the seller, the offer is terminated. A valid contract requires “offer and acceptance“ which actually consist of three parts - offer, acceptance, and communication of acceptance. Since Henry die before acceptance had been communicated, there was never a valid contract

Question 41

For federal income tax purposes, a taxpayer could adjust the cost basis of his personal residence for which of the following terms?

A. Economic obsolescence
B. The addition of a concrete patio
C. Interest on a loan
D. Fire insurance premiums paid

Answer 41

B. The addition of a concrete patio

Adjusted cost basis is the net cost of an asset after adjusting for various tax related items. Example of an adjusted cost basis would be the addition of a concrete patio on the personal residence. You do not factor in mortgage payments in this calculation.

Question 42

Which of the following would not make a contract voidable?

A. duress
B. undue influence
C. a legal purpose
D. defraud

Answer 42

C. a legal purpose

A contract that has no legal effectiveness. For example, contract that has an illegal purpose is simply void NOT voidable

Note – this question ask “which of the following would NOT” which means it looking for a false answer, and it’s false that illegal purpose would make a contract avoidable it makes it void.

Question 43

And acknowledgment may be taken by a notary public who is:

A. grantor in a deed being acknowledged.
B. the mortgagee in a mortgage being acknowledged.
C. the grantee in a deed which is being acknowledged.
D. a corporate employee without interest in the corporations instrument being acknowledged.

Answer 43

D. a corporate employee without interest in the corporations instrument being acknowledged.

And acknowledgment may be taken by a notary public who is an employee of the grantors corporation, but only if the notary public has no interest in the transaction. Acknowledgments are done by a notary, who is a public figure authorized to attest to the signing of the documents such as deeds or mortgagees. The notary public certifis that he or she has witnessed the signing of the document by also signing the document and fix fixing his her official seal (simply said, they are who they say they are).

Question 44

Blockbusting is best described as an attempt:

A. by banks to refuse loans to homeowners in certain segments of the city.
b. by insurance companies to refuse to issue homeowners policies to certain residents of the city.
c. To form gorilla bands to use violent action to integrate neighborhoods.
D. To panic a neighborhood into thinking property values will decline due to an unwanted persons moving in

Answer 44

D. To panic a neighborhood into thinking property values will decline due to an unwanted persons moving in

Using race, ethnicity or any other personal characteristic of an individual or a group to influence the buying or selling a real estate is illegal and carries stiff penalties that can be pursued by local state and federal authorities as well as affected individuals

Question 45

A trusteed may be released from the records by:

A. payment in full.
B. a title report.
C. recording a Reconveyance deed.
D. recording the notes.

Answer 45

C. recording a Reconveyance deed.

In order to clear the Deed of Trust from the title to the property, a deed of reconveyance must be recorded with the county recorder or recorder of deeds

Question 46

The primary purpose of a listing agreement is to:

A. give the broker permission to sell all of his principles properties.
B. list all improvements and amenities of the property
C. serve as a contract of employment between the owner and the broker
D. serve as a guide for a sales contract

Answer 46

C. serve as a contract of employment between the owner and the broker

A listing agreement is, in fact, a form of employment agreement in which party a agrees to perform such and such task for party be in exchange for a defined amount of compensation

You are employed to find a buyer

Question 47

Defined as a loss in value from any cause, depreciation is generally divided into three categories. the loss of value due to the normal ware and tear on property is called:

A) physical deterioration
B. External obsolescence
C. functional obsolescence
D. Economic deterioration

Answer 47

A) physical deterioration

This describes the normal upkeep, repair and ultimate replacement of things such as roof shingles, heat and cooling systems, this describes the normal upkeep, repair and ultimate replacement of things such as roof shingles, heat and cooling systems, appliances and so forth.

Question 48

Allison has just qualified for her sales persons license. How much time does she have to file her application to practice?

A) two years from the date she passed the exam
B) One year from the date she passed the exam
C) two years from the date she was notified she had passed the exam
D) One year from the date she was notified she passed the exam

Answer 48

B) One year from the date she passed the exam

Although most people who pass the exam are anxious to get the license and begin practicing real estate, the rules you allow up to a year to make the application

Question 49

An increase in the availability of money with lead to which effect?

A) interest rates would NOT be affected due to the RESPA guidelines
B) interest rates would go down
C) interest rates would go up
D) interest rates would not be affected due to TRUTH IN LENDING

Answer 49

B) interest rates would go down

Just like most things in a free market economy, mortgage loans are subject to the laws of supply and demand. Thus, when there is more mortgage money in the marketplace “looking for a home “, borrows have more choices which leads to increased competition among lenders which leads to lower interest rates.

Question 50

If five people owned property as joint tenants:

A) and one of the owner dies, his heirs become tenants in common with the surviving co-owners
B) they need not own equal interest in the property
C) each co-owner has separate legal title to his undivided interest
D) there is still only title to the whole property

Answer 50

D) there is still only title to the whole property

Joint tenancy can be summarized with the acronym TTIP: Time, title, interest and possession. No matter how many joint tenants there are, there is still only one title to the entire property. Each tenant must hold an equal interest in the property.

Question 51

On a settlement statement, the cost of the lenders title insurance policy required for a loan is usually shown as a

A. credit to seller.
B. Debt to seller.
C. Credit to buyer.
D. Debit to buyer.

Answer 51

C. Credit to buyer.

A settlement statement is a document that summarizes all of the fees and charges that a borrower and lender face during the settlement process of a loan transaction. Different types of loans have varying requirements for settlement statement documentation

Question 52

When an owner sues the government to get compensated, it is known as:

A. condemnation
B petition
C. Escheat
D. inverse condemnation

Answer 52

D. inverse condemnation

Inverse condemnation is a term used in the law to describe a situation in which the government takes private property by Eminent domain, but fails to pay the just compensation required by the constitution. In order to be compensated the owner must sue the government. In such cases the owner is a plaintiff and that is why the action is called inverse- the order of parties is reversed, as compared to direct condemnation where the government is the plaintive who sues the defendant owner to take his property

Question 53

A lease where the tenant pays the property taxes, maintenance and other expenses is a colon

A. percentage lease
B. Gross lease
C. sandwich lease
D. net lease

Answer 53

D. net lease

A net lease is a property lease in which the tenant pays all expenses normally associated with ownership, such as utilities, maintenance, repairs, insurance and taxes

Question 54

When may a real estate broker, serving as agent and the seller, refuse to transmitting offer to the principal

A. when the owner has already excepted a back up offer
B. when the broker is acting as a gracious agent
C. never
D. with the broker is acting on the express instructions of the principal and his refusal

Answer 54

D. with the broker is acting on the express instructions of the principal and his refusal

An agent is employed to carry out the instructions of the principal, they can advise a principal and what to do, but at the end of the day they work for the principal and must carry out the principal instructions as long as those instructions are lawful.

Question 55

Effective date of a real estate purchase contract is the date that:

A. the seller accepts the offer.
B. the security deposit was made.
C. the acceptance is communicated to the buyer.
D. the offer is made.

Answer 55

C. the acceptance is communicated to the buyer.

Mutual agreement, offer and acceptance, is actually a three-step process: offer, acceptance and communication of the acceptance back to the offer

Question 56

When a buyer gives the agent a post date a check, eight:

A. may not be excepted by the agent.
B. must be cast immediately.
C. must be delivered to the seller within one day.
D. may be retained but must be disclosed to the seller

Answer 56

D. may be retained but must be disclosed to the seller

an agent may except a post dated check from a buyer as long as it is disclosed to the seller

Question 57

According to the truth-in-lending act, consumers must be informed of credit terms by:

A. the trustee.
B. in escrow.
C. the broker.
D. the lender.

Answer 57

D. the lender.

The truth-in-lending act was designed to protect borrowers by requiring lenders to make a meaningful disclosure of credit terms to the borrower. It requires lenders to provide borrowers with loan cost information so they understand the cost of their credit and so they can comparison-shop for loans.

Question 58

A contract in which all parties have to fill their promises is a:

A. Completed contract
B. expired contract
C. executory contract
D. executed contract

Answer 58

D. executed contract

An executed contract is a contract which has been completely carried out by the parties

Question 59

An appraiser is typically paid:

A. a fee based on a percentage of the appraisal value.
B. A fee based on the amount of time and effort.
C. a standard fee agreed-upon by the national appraisal association.
D. fee agreed-upon after the appraisal is completed

Answer 59

B. A fee based on the amount of time and effort.

There are two functional reasons for the “time and effort“ rather than valuation method. First is the fact that the differences between any two properties make it impossible to relate the complexity of the task to the value of the property. A high-end property could be a relative “no-brainer“ while a pretty particular midmarket home could have dozens of variables to be analyzed. The second reason is that basing fees on value places and obvious incentive on appraisers to estimate high does distorting reality

Question 60

In the cost approach to value, the appraiser makes use of the:

A. sales price of similar buildings in the area
B. Estimated current replacement cost of the building
C. Assessed value of the building
D. Owners original cost of the building

Answer 60

B. Estimated current replacement cost of the building

The cost approach is a real estate valuation measure that surmises that the price a buyer should buy for a piece of property should equal the cost to build an equivalent building. And cost approach appraisal, the market price for the property is equal to the cost of land plus cost of construction minus depreciation

Question 61

The word “improvement “would refer to all of the following except:

A. A sanitary sewer system
B. Streets
C. The foundation
D. Trade fixtures

Answer 61

D. Trade fixtures

The term “trade fixture“ refers to an item installed by a tenant in a rented commercial property that he or she reviews at the end of the occupancy.

Question 62

Which of these is an example of external obsolescence?

A. vacant, abandoned, and run down buildings in an area.
b. numerous pillar supporting the ceiling in a store.
C. Cole cellar in a house with central heating.
D. leaks in the roof of a warehouse, making the premises unusable and therefore unreachable.

Answer 62

A. vacant, abandoned, and run down buildings in an area.

External obsolescence, also known as economic obsolescence, is a factor that reduces the value of an improvement because of some thing external to the property itself. It’s not about whether the house is outdated or not, I’d rather something outside of the home that is causing a lower value. It’s usually something that cannot be cured

Question 63

A balloon payment is usually associated with a

A. Variable mortgage that varies with the cost of living index.
B. Blanket mortgage.
C. Large payment during the term or at the end of the payment schedule.
D. package mortgage

Answer 63

C. Large payment during the term or at the end of the payment schedule.

A balloon payment is a large payment due at the end of a balloon loan, such as a mortgage, commercial loan or other amortized loan. A balloon loan typically features a relatively short term and only a portion of the loan principal balance is amortized over the term.

Question 64

Which activity requires a real estate license?

A. an MLS providing listing information to members
B. a resident manager who collects rent on behalf of a building owner
C. a service that, for a fee matches, individuals who want to buy and sell properties
D. An executor selling and the se building

Answer 64

C. a service that, for a fee matches, individuals who want to buy and sell properties

Real estate licenses, authorizations issued by state governments, give agents and brokers the legal ability to represent a home seller or buyer in the process of buying or selling real estate.

Question 65

An exclusive agency listing guarantees the broker his commission:
.
A. If a broker finds a buyer for the property.
B. only if the sales price exceeds the listing price
C. if the property changes ownership for any reason
D. if the seller sells the property

Answer 65

A. If a broker finds a buyer for the property.

And exclusive agency listing is an agreement between a seller and a real estate firm or agent granting the firm our agent the right to be the only firm or agent to market and sell a property, but the seller retains the right to find their own buyer without having to pay a commission to the listing agent

Question 66

An unlicensed personal assistant working for a licensed broker may do which of the following activities?

A. write add and submit them to the newspaper and online approved by the broker.
B. write up an offer for a buyer and then have the broker sign the contract later.
C. host open houses.
D. email brokers weekly updates to the brokers clients

Answer 66

A. write add and submit them to the newspaper and online approved by the broker.

A person without a license can write ads under the supervision of the license real estate professional. The rest of the activities are licensed activities.

Question 67

Procuring cause would not be required for a broker to receive a commission in a:

A) Open listing
B) Net listing
C) Exclusive right to sell listing
D) Exclusive agency listing

Answer 67

C) Exclusive right to sell listing

And exclusive right to sell listing is an agreement in which a real estate agent has the sole right to sell a specific property, usually within 3 months. During this. The seller cannot list the property with any other agent and (unlike in an exclusive agency listing) must pay the agents commission even if he or she (and not the agent) finds a buyer

Question 68

A personal, revocable, non-assignable right to use the property of another is called:

A. a license.
B. An option.
C. An easement.
D. The lease.

Answer 68

A. a license

A personal, revocable, non-assignable right to use the property of another is called a license

Question 69

On an escrow closing statement, an existing mortgage that is to be assumed by the buyer is treated as:

A. a credit to seller.
B. All of the other options are correct
C. a credit to the buyer
D. a Debt to the buyer

Answer 69

C. a credit to the buyer

A loan being assumed by the buyer is listed as a credit to the buyer and a debt to the seller. The closing statement looks at the loan in relation to the purchase price of the property – they assume the loan is a credit for the buyer toward the purchase of the property, even if this seems loan is a debt to the buyers personal accounts.

Question 70

Conventional loans are made from

A. Fannie Maes funds
B. private sources
C. FHA Funds
D. Home owners loan corporation

Answer 70

B. private sources

Conventional loans are made from private sources. A conventional mortgage or conventional loan is any type of homebuyers loan that is not offered or secured by government entity

Question 71

Usury MOST nearly means:

A) illegal interest
B) making loans without the benefit of cosigners.
C. lending money at fluctuating interest rates.
D. being capable of multiple usage

Answer 71

A) illegal interest

Each state sets its own ceiling for the maximum interest rate lenders may charge. Rates above that ceiling are considered usurious and illegal. No reputable lender exceeds those rates and those that make a practice of it are commonly known as loan sharks.

Question 72

Pledging property as security for a loan without losing possession of it is called what?

A. Purchase money mortgage
B. Hypothecation
C. An impound account
D. a subordination agreement

Answer 72

B. Hypothecation

Hypothecation is an agreement whereby a person puts up collateral to secure the debt of another. This means that a person (not the debtor) agrees that a piece of real estate belonging to him or her will be collateral for a debt

Question 73

four months ago, a seller entered into a legally binding written contract to sell his property. Later the seller refused to complete the transaction since he felt the value of the property would increase in the near future. Under these circumstances the statute of limitations could affect the rights of the buyer to prevail in a civil action due to a breach of the written contract within:

A. One year
B. 90 days
C. two years
D. four years

Answer 73

D. four years

The right rising out of a written contract must be pursued in court within four years of the default “breach“, according to the statute of limitations

Question 74

Personal income taxes are structured using rates that are:

A. progressive.
B. progressive.
C. equal.
D. Level.

Answer 74

B. progressive.

Progressive means that more you make, the more you pay. It might also be termed “graduated“

Question 75

David wants to use the GRM to find the value of the property. What data does David need to obtain from comparable properties to accurately calculate a GRM

A. Annual rent and the selling price.
B. net income and selling price.
C. net income and capitalization rate.
D. Original cost and annual income.

Answer 75

A. Annual rent and the selling price.

The gross rent multiplier (GRM) is calculated by dividing the monthly or annual gross rent into the selling price of the property

Question 76

When selling a business, real estate brokers need to know that the term successor’s liability involves certain obligations to the:

A. Department Corporations
B. The Internal Revenue Service
C. State Board of equalization
D. bureau of real estate

Answer 76

C. State Board of equalization

The term successors liability refers to the purchasers liability for the sales tax collected by the previous owner but not remitted to the state

Question 77

Ownership of an undivided interest in land with no right of survivorship is found in:

A. tenants-in-common
B. joint tenancy
C. fee simple defeasible estate
D. Severalty

Answer 77

A. tenants-in-common

The words “undivided interest “couple with “no right of survivorship “referred to tenant and common

Question 78

Sarah is a newly licensed broker and has just opened her own office. How long must she keep transaction records?

A. 3-years
B. 2-years
C. 4-years
D. 1-year

Answer 78

A. 3-years

Sarah must keep transaction records for three years. This includes not only closing documents, but trust fund information, all listing, all deposit slips and cancel checks and all other documents executed by Sarah in connection with her real estate practice

Question 79

When an owner is selling his or her home, to whom would they most likely give a copy of a structural pest control report?

A. to the escrow company
B. to the brokers or salespeople representing potential buyers
C. to the buyer if requested
D. The broker, at the time of listing

Answer 79

C. to the buyer if requested

Structural pest inspections and reports are not required by law, but are often the condition of the buyer, the contract or the lender. When requested, the report must be delivered by the seller or listing agent before closing

Question 80

When was all the listings in an office the renegotiated?

A if a couple gets divorced
B. if there are multiple offers
C. If the Broker Dies
D. A listing can never be renegotiated

Answer 80

C. If the Broker Dies

There are many reasons a listing can be negotiated but it must be renegotiated when a broker dies because a listing is held by the broker.

Question 81

Real property taxes become a lien on:

A. February 1st.
B. July 1st.
C. January 1st.
D. November 1st.

Answer 81

C. January 1st

Next year’s real property taxes become a lein on January 1st

Question 82

In financing, the “secondary market” refers to the place where:

A. conventional loans or originated
B. secondary financing may be obtained
C. FHA loans are originated
D. existing loads are bought and sold

Answer 82

D. existing loads are bought and sold

The secondary mortgage market is where home loans and servicing loans are bought and sold between lenders and investors. Most home loans in the US are eventually sold to the secondary mortgage market. When I consumer obtains a home loan, that loan is under written, funded and serviced by a bank or lending institution.

Question 83

On a settlement statement, the cost of the lenders title insurance policy required for a loan is usually shown as a

A. credit to seller.
B. Debt to seller.
C. Credit to buyer.
D. Debit to buyer.

Answer 83

C. Credit to buyer.

A settlement statement is a document that summarizes all of the fees and charges that a borrower and lender face during the settlement process of a loan transaction. Different types of loans have varying requirements for settlement statement documentation

Question 84

An unlicensed personal assistant working for a licensed broker may do which of the following activities?

A. write add and submit them to the newspaper and online approved by the broker.
B. write up an offer for a buyer and then have the broker sign the contract later.
C. host open houses.
D. email brokers weekly updates to the brokers clients

Answer 84

A. write add and submit them to the newspaper and online approved by the broker.

A person without a license can write ads under the supervision of the license real estate professional. The rest of the activities are licensed activities.