RealEstateU Questions Flashcards
An investor who bought a rental house needs someone to take care of the property, screen prospective renters, coordinate repairs, handle maintenance and tenant concerns, and evictions, if necessary. He’s looking for a…? A. Property manager. B. Appraiser. C. Contractor. D. Mortgage broker.
Property manager.
Single family homes are…?
A. Private freestanding residential houses.
B. Homes that cannot house more than one family.
C. One of the least popular types of property sales.
D. Only located in cities, not rural areas.
Private freestanding residential houses.
The majority of real estate agents work with…? A. Residential properties. B. Commercial properties. C. Industrial properties. D. Foreclosed properties.
Residential properties.
Sam is looking for a warehouse, and he wants to find a real estate agent or broker who is knowledgeable in this area. He’s starting a business, and it will require space for assembly and production, but he also needs to be able to use it for distribution, warehousing, and research and development. He needs to find…?
A. An agent who specializes in industrial properties.
B. An agent who specializes in foreclosed properties.
C. A lawyer who is familiar with manufacturing.
D. A residential broker.
An agent who specializes in industrial properties.
Gloria is interested in buying a business, and she needs to find someone who is familiar with sales of retail stores, restaurants, or offices. This person should have a good understanding of the business side of property ownership, such as leases, rentals, and maintenance. What she’s looking for is a real estate agent or broker who works with…? ACommercial property. BIndustrial property. CResidential property. DAgricultural property.
Commercial property.
There is a mixed-use property for sale in Cassie’s community, and a buyer walks into her office looking for a residential space. Should Cassie consider showing him the property zoned mixed-use?
AYes, because mixed-use is a combination of commercial and residential real estate.
BNo, because residential property is never part of mixed-use.
CYes, because the buyer might change his mind.
DNo, because residential space is always zoned for single-family homes.
Yes, because mixed-use is a combination of commercial and residential real estate.
The demographics, interest rates, costs, pricing, and the economy affect the real estate market individually and together by…?
AChanging the balance.
BCausing confusion.
CIncreasing the paperwork.
DNothing, because they don’t affect the real estate market.
Changing the balance.
In economics, demand is…?
AThe supply of willing and able consumers, which can be few or numerous.
BWhen a buyer or seller has unreasonable requests.
CHarmful to good business practices.
DUseless in real estate.
The supply of willing and able consumers, which can be few or numerous.
When the supply is limited and demand is high…? APrices escalate. BPrices fall. CThe market is considered sluggish. DMore homes go into foreclosure.
Prices escalate.
Tom’s buyers are looking for a home that is located in a very popular area and they are hoping to find a deal. In order to keep their expectations realistic, Tom needs to explain to them the principles of supply and demand and how it relates to their search and the housing prices in that area. That means…?
ABecause the area is in high demand, the prices will also be high.
BBecause the area is in high demand, they can easily find a deal.
CHomes in popular areas are harder to get financing for.
DBecause it’s a popular area, the demand will be low.
Because the area is in high demand, the prices will also be high.
One of the neighborhoods in Julie’s community has suffered a downturn. There are not many jobs nearby, some homes have been abandoned, and the population has been transient. This means that the prices for the homes that are for sale there should be…?
ALower than average, because the demand is low.
BHigher than average, because the demand is low.
CNo different, because if the houses are the same as other neighborhoods, the price will be the same.
DCash only, because the banks won’t take the risk.
Lower than average, because the demand is low.
Interest rates are changing. If they are going up, this has a direct impact on buyers and the supply and demand of properties because…?
AHigher interest rates means the cost of borrowing money increases, reducing the amount borrowers can afford.
BHigher interest rates increase sales.
CHigher interest rates only affect buyers.
DHigher interest rates don’t make any difference.
Higher interest rates means the cost of borrowing money increases, reducing the amount borrowers can afford.
Pat’s buyers have found a property in a great area, but they want a corner lot. Corner lots in this particular subdivision are in high demand because there are long streets and few corners. When they find the house they want on a corner lot, they should expect…?
AThey might have to pay more because of supply and demand.
BThe financing will be easier to get because the property is popular.
CTo be able to close sooner because corner lots have shorter escrows.
DTo have to deal with unreasonable sellers.
They might have to pay more because of supply and demand.
A lack of supply is known as…? AScarcity BDemand CAppreciation DDepreciation
Scarcity
To become a real estate broker, a person must have…?
AExperience as an agent, a broker’s license, and additional education.
BA large amount of money in escrow to cover any problems that come up.
CPrevious experience as a business owner.
DA master’s degree.
Experience as an agent, a broker’s license, and additional education.
Fill in the blank. …......... represent both the buyer and seller or both the tenant and landlord in the same transaction. Dual agents Brokerage relationship Applicants Agents
Dual agents
An agency (non-agency) relationship between the broker and their client (customer) under a brokerage engagement is defined as...? ABrokerage relationship BDual agents CApplicant DBroker
Brokerage relationship
If using experience obtained in another state, the candidate must meet which of the following conditions?
AAll items listed
BThe candidate’s previous jurisdiction can show that the applicant had a license during the previous five years
C Typically, they must prove they had an active license for three out of five years just prior to applying to the Commission.
DThe candidate must have obtained the experience within five years of applying for a Georgia license.
All items listed
Any …......... that applies for a broker license must submit a copy of its …......... agreement and its Certificate of Trade Name, filed with the Clerk of the County. Apartnership Bcorporation Ccorporation Dfranchisee
Partnership
Note: This requirement is covered under Rule 520-1-.04(6) of the Georgia Rules and Regulations.
Darryl Jones moved from Louisiana, where he was a broker, to Georgia, where he is applying for a broker license. Darryl tried several times to obtain a criminal history report from the appropriate authorities. Since he couldn’t get the required information, Darryl will need to provide all of the following EXCEPT:
Ahis marriage certificate
Bfingerprints
Cauthorization for the Commission to obtain the FBI report
Dassociated fees for the FBI report
his marriage certificate
Hans Rosenstein moved from Florida, where he was a sales agent, to Georgia. Hans completed his post-license course in Florida, a state considered similar to Georgia in terms of real estate law. Does Hans have to take the post-license course in Georgia?
ANo
BYes
CNo, but Hans is not eligible to practice real estate in Georgia.
DNo, because Hans can transfer his license to Georgia without additional fees or exams.
No
Note: Sometimes a non-resident salesperson has completed a post-license course similar to Georgia’s. As long as the course was completed prior to receiving a Georgia license, the salesperson doesn’t have to take the Georgia post-license course.
Jolie Harper is a licensed real estate agent in a Georgia brokerage. She is offered a job selling condos for the unlicensed owner-developer. Jolie must …......... and will have to reapply if she decides to practice as a salesperson under a brokerage again. A inactivate her license Bretake her agent exam Ctake the broker exam Dsubmit her resume
A inactivate her license
Any lapse longer than two years and under five years can be reinstated by paying back fees and taking the appropriate class. Which of the following is not a valid answer?
AFor community association managers, they must take the Community Association Managers Prelicense Course.
BFor a salesperson, they must take the Salespersons Prelicense Course.
CFor brokers or associate brokers, they must take the Brokers Prelicense Course.
DFor appraisers, they must take the Salespersons Prelicense Course.
A For community association managers, they must take the Community Association Managers Prelicense Course.
Note: Any lapse longer than two years and under five years can be reinstated by paying back fees and taking the appropriate class. These classes include: • For community association managers, the Community Association Managers Prelicense Course • For a salesperson, the Salespersons Prelicense Course; and, • For brokers or associate brokers, the Brokers Prelicense Course. These courses have to be taken within one year.
Maeve O’Donnell doesn’t take the post-licensing course within one year of receiving her license. She then lets her license lapse for more than five years. Which of the following is required in order for Maeve to practice real estate again?
AShe needs to reapply as an original applicant.
BShe has to pay a $100 fee.
CShe can no longer practice real estate in Georgia.
DShe can just request a new license number from the Commission.
A She needs to reapply as an original applicant.
A nonresident broker may be the qualifying broker for all except which of the following companies? Aappraisal practice Ba limited liability company Ccorporation Dpartnership
appraisal practice
Drew Fenstemaker writes a contract that guarantees seller Warren Wilson $100,000 for his property, while Drew walks away with any amount resulting from a sales price over $100,000. However, if the home sells for less than $100,000, Drew must make up the deficit. Which of the following statements is correct?
AEven if Warren is happy with this arrangement, net brokerage agreements are illegal in Georgia and Drew is risking his license with this rather shady deal.
BThis is a legal practice in Georgia.
CThis is acceptable only if the sales price is under $500,000.
DThis is acceptable only if the sales price is under $1,000,000.
A Even if Warren is happy with this arrangement, net brokerage agreements are illegal in Georgia and Drew is risking his license with this rather shady deal.
Community Association Managers may need to obtain a …......... or the appropriate insurance if they meet certain thresholds. Afidelity bond Bsales contract CManagement agreement DCAM agreement
fidelity bond
If the qualifying broker of a corporation, partnership or limited liability company resigns, dies or is discharged, the entity has ............ days to find a new qualifying broker. In case no qualifying broker is found, the brokerage must stop all real estate services. A60.0 B15.0 C30.0 D365.0
60.0 days
The Commission keeps electronic licensing records for…? A15 years B40 years C7 years D2 years
15 years
Note: This requirement is covered under Rule 520-1-.04(4) of the Georgia Rules and Regulations.
Refunds of earnest money are credited at closing or paid by check. The total of all checks should reflect a zero balance except for the…? Abroker’s commission Bsales agent's commission Cthe buyer down payment Dsales price
broker’s commission
Sales agent Lisa Pringle sells the McDonalds' home to a buyer Lisa also procured (who is also related to Lisa). Lisa negotiated a $30,000 discount off the original sales price from the motivated sellers. In exchange for the lower sales price, Lisa promises the McDonalds new living room furniture for another home she plans to sell to them. This is a violation of the ............ unless Lisa discloses it on the closing documents during the sale of the McDonalds' house. Arules for consideration Bethics laws Cfederal real estate law Dfair housing laws
Rules for consideration
Note: Licensees can rebate any part of a fee, commission or other compensation to a principal for services related to the sale, purchase, lease or exchange of real estate. The rebate must be disclosed on the closing statement. The licensee cannot mislead another licensee, lender, principal title or government entity regarding the source of money used to complete the real estate transaction.
Glenn Thomas is a broker who sold a house for the Houstons 2.5 years ago. Glenn must retain all documents related to the sale of the home for at least…? A6 months B2 months C1.5 years D1 year
6 months
Note: A broker should keep copies of documents and records for three years. This includes brokerage engagements, sales contracts, leases, closing statements and any documents for a real estate transaction.
Jacob Brown knows the owner of a restaurant in downtown Atlanta. The owner confides to Jake that she wants to sell her business. Luckily for the business owner, Jacob knows someone looking to buy an established restaurant. Jacob asks a real estate buddy to draw up the sales contract. Jacob asks for a commission since he was the procuring cause of the sale. However, Jacob doesn’t have a real estate license in Georgia. Which of the following is true:
AJacob isn’t entitled to any commission for the services of real estate.
BJacob is entitled to a commission.
CJacob can receive a kickback from the buyer or seller as long as no one on the Commission finds out.
DJacob has to buyer the restaurant himself and run it for 2 years prior to selling the property.
Jacob isn’t entitled to any commission for the services of real estate.
If a licensee makes an offer on a property as part of a brokerage engagement or an extension of an engagement, the terms and conditions of the engagement must be set down in a…? Awritten agreement Bverbal agreement CMLS listing DCAM agreement
written agreement
You don’t recognize a charge on your credit card made to the Georgia Real Estate Commission, so you dispute the charge. Later, you learn that the charge was valid. In addition to paying the owed fees, what other step must you take?
AYou must pay an additional $100
BYou must retake your agent exam
CYou must pay turn in your license and give up your real estate career
DYou must pay an additional $500
You must pay an additional $100
Dalton White was a broker in Florida for two years prior to moving to Georgia. The Florida Real Estate Commission shows no record of Dalton’s broker license. Which of the following actions can validate his experience?
AHe submits sales and closing documents he has handled in the last two years. He asks three brokers he has dealt with to submit affidavits of his participation in transactions with them.
BHe submits sales and closing documents he has handled five years ago.
CHe asks three friends to write letters of recommendation to the GREC.
DDalton cannot validate his experience from Florida.
He submits sales and closing documents he has handled in the last two years. He asks three brokers he has dealt with to submit affidavits of his participation in transactions with them.
Note: This requirement is covered under Rule 520-1-.04(2) of the Georgia Rules and Regulations.
If you serve in the army reserve and are studying to be a broker, you effectively get 10 points added to your score. Which of the following is true?
A5 points are added in each of Information Gathering and Decision Making sections.
B10 points are added in each of Information Gathering section.
C10 points are added in each of Decision Making section.
D20 points are added in each of Information Gathering and Decision Making sections.
5 points are added in each of Information Gathering and Decision Making sections.
Any …......... must include its certificate of authority issued by the Secretary of State's office. Alimited liability company, or LLC, Bcorporation Cpartnership Dfranchisee
limited liability company, or LLC,
Note: This requirement is covered under Rule 520-1-.04(6) of the Georgia Rules and Regulations.
The Georgia Real Estate Commission may do all the following except…?
AParticipate in various real estate transactions
BSanction a licensee
CDetermine fees for license renewals
DExamine the trust accounts of any real estate professional
Participate in various real estate transactions
When the Commission determines it is necessary to investigate or examine a brokers’ trust account, they…?
AMay hire outside help to conduct the examination
BMust notify the licensee 30 days ahead of time
CMust work closely with the licensee accused of wrongdoing
DNotify the local police department
May hire outside help to conduct the examination
License applications where the applicant has a prior felony on their criminal record…?
AMay be approved provided all conditions laid out by the Commission are satisfied
BShall never be approved
CCan be approved even if the license applicant is on probation
DCan be approved once the applicant has completed their jail or probation time
May be approved provided all conditions laid out by the Commission are satisfied
Anyone who is a qualified broker…?
AShould understand their license is at risk if they have an affiliate broker working for them who does something wrong
BShould be aware their license is only at risk if they do something wrong
CMay not operate an office where they are the sole proprietor
DDoes not have to notify the Commission of any address change
Should understand their license is at risk if they have an affiliate broker working for them who does something wrong
When taking funds from a client for deposits, prepaid taxes or insurance, or for any other reason a licensee…?
AMust keep the funds segregated by opening a separate trust or escrow account
BCan use the funds as they deem appropriate
CCan put the funds in their regular business account
DDoes not have to do anything special
Must keep the funds segregated by opening a separate trust or escrow account
If a licensee mishandles funds in a trust account, they shall…?
ABe responsible for repayment of any claims paid by the Georgia recovery fund along with interest and penalties
BLose their real estate license permanently
CBe required to get a surety bond before they collect any funds from clients in the future
DBe fined $25,000
Be responsible for repayment of any claims paid by the Georgia recovery fund along with interest and penalties
Note: When a licensee is found to have acted improperly resulting in a claim being filed and paid by the Commission, they shall have no access to a new license until such time as the licensee has repaid the amount in full, plus interest at the judgment rate.
Should any licensee be accused of fraudulent representation the Commission may…?
AConduct a thorough investigation including a review of their books and trust accounts
BPublish their name in the newspaper
CNot be able to take any action
DGo to court to sue the licensee
Conduct a thorough investigation including a review of their books and trust accounts
Contracts issued to potential buyers or sellers must…?
AContain a start and finish date, be in compliance with Georgia law, and disclose any conflicts of interest
BTell the buyer or seller what the licensee thinks they need to know
CNot include information about deposits or possible fees that may result if the transaction is complete
DBe approved in a Georgia court
Contain a start and finish date, be in compliance with Georgia law, and disclose any conflicts of interest
To participate in real estate transactions in Georgia you…?
AMust have an active Georgia license or be otherwise approved by the Commission
BMust have a legitimate place of business and only work from there
CCan do a limited amount of transactions without a license
DCan act on behalf of a licensed broker without telling anyone
Must have an active Georgia license or be otherwise approved by the Commission
To maintain a real estate license in Georgia, you must…?
AFollow all rules laid out by the Georgia real estate Commission
BNot move out of Georgia
CContinue to operate in the same office
DNot do anything wrong
Follow all rules laid out by the Georgia real estate Commission
Upon issuance of a license, a real estate professional can…?
AExpect the license to be delivered to the broker whom the licensee shall be working for
BDecide what form you want your license delivered in (e.g. paper or electronic)
CHave the license mailed to any address they want
DPick the license up at the Commission’s office
Expect the license to be delivered to the broker whom the licensee shall be working for
Christine is looking at an older home in a quiet neighborhood. She knows that it might be hard to repair or replace the dwelling if it was directly hit by a tornado or there was a fire. The best homeowner policy for her is probably an HO-8 policy specifically designed for older homes. Which statement most accurately gives an overview of the Older Home Coverage?
AThe plan doesn’t cover water damage without an additional rider, but pays the actual cash value minus depreciation.
BThe plan covers full replacement value, plus all known perils, including water damage.
CThe plan typically has an extremely high deductible because older homes are prone to spontaneous fires.
DThe plan includes special coverage for manufactured homes and condos more than 30 years old.
The plan doesn’t cover water damage without an additional rider, but pays the actual cash value minus depreciation.
Note: The HO8 home insurance policy is normally used to insure older homes that would be extremely difficult to replace if destroyed. As a result, the HO8 policy normally insures your home at market value, or replacement cost. Market value can also be referred to as actual cash value.
Gene is showing homes to a first-time buyer in an area that is prone to floods. The client tells him he likes the houses, but he has already lost two homes to floods and doesn’t think he will be able to afford insurance. Gene tells his client there is an option called the ………… specifically designed for his situation.
AThe Fair Access to Insurance Requirement (FAIR) program
BFEMA’s Minimum Coverage for Flood-prone Designations plan
CHome & Land Flood Protection Plan
DThe High Risk Flood Zone program
The Fair Access to Insurance Requirement (FAIR) program
Note: The Fair Access to Insurance Requirements (FAIR) Plan is a state-mandated program that provides fair access to insurance for individuals who are having trouble insuring their property due to the fact that insurers consider them high risk.
Which list below covers the three most common homeowner policy coverage areas?
ABuildings, building contents, and medical coverage for people who are hurt on your property
BStructures, land, and landscaping, and medical liability
CBuilding, land, and building contents
DNone of the answer choices provided are correct
Buildings, building contents, and medical coverage for people who are hurt on your property
Note: Building damage, a person’s belongings, and medical coverage are the most common.
Many factors can increase or reduce monthly mortgage payments. Assume that a buyer is planning to buy a $150,000 home, and any loan payments will not include closing costs or insurance. Which scenario will produce the highest monthly payment?
ATaking out a 20 year fixed rate private owner mortgage at 4.25 percent with 5 percent down
BTaking out a 30 year fixed rate FHA mortgage at 4.25 percent with a 3.5 percent down payment
CTaking out a 30 year fixed rate VA mortgage at 5.75 percent with zero down
DTaking out a 30 year fixed rate Conventional mortgage at 6.0 percent with a 20 percent down payment
Taking out a 20 year fixed rate private owner mortgage at 4.25 percent with 5 percent down
Note: The longer the loan term, the lower the monthly payment. This may be offset by the loan’s interest rate. The higher the interest rate, the higher the monthly loan payment.
Candice wants to buy a new home. She doesn't have a lengthy credit bureau file and is looking for a loan vehicle that will not require a large down payment. She is surprised to learn that the ............ considers non-borrower income and nontraditional credit sources when reviewing mortgage applications. AFannie Mae HomeReady mortgage program BVA financing program CConventional loan standards DFresh Start Home Buyers Program
AFannie Mae HomeReady mortgage program
Note: HomeReady mortgages are a line of conventional home loans offered by Fannie Mae that are meant to help low- and moderate-income borrowers buy or refinance. HomeReady loans reduce the typical down payment and mortgage insurance requirements, but they’re also more flexible about allowing contributions from other people.
A seller has accepted an offer from John. John wants to remodel and add an outdoor pool when he has enough equity built up to cover the project. Which loan arrangement will help him build equity faster than the others? AMake a 40 percent down payment upfront. BNegotiate the highest interest rate. COpt for a shorter loan term. DOwner finance to avoid PMI.
Make a 40 percent down payment upfront.
Note: If John makes a 40% down payment, he will already have a significant amount of equity in the property.
Which statement is true of PMI?
APMI is usually only required on conventional loans with a down payment less than 20%, or if the buyer wants to refinance a home with less than 20% equity built up.
BPMI is typically required for loans processed with a minimal down payment.
CPMI is equally divided among all installment payments for the life of the loan.
DHomeowners purchase PMI through independent agents and make separate payments directly to the insurance company.
PMI is usually only required on conventional loans with a down payment less than 20%, or if the buyer wants to refinance a home with less than 20% equity built up.
Note: PMI is a mortgage guaranty insurance available to conventional lenders on the first, high risk portion of a loan. PMI is typically required on conventional loans with a down payment of less than 20%.
Katlin told her real estate agent that she is looking for an investment property. She recently took a class on buying low and selling high, so she plans to buy a home in a low-income neighborhood, furnish it with high-end appliances and all the latest in home technology. Her real estate agent cautions her against this strategy, because…?
AOver renovating doesn’t guarantee a quick and high-profit turnover.
BBuyers are suspicious of a home that looks too nice for the neighborhood.
CShe may make the neighbors mad if her rehabilitation forces their property value down.
DOnly market conditions increase property values.
Over renovating doesn’t guarantee a quick and high-profit turnover.
Note: Not all improvements will increase the value of the property beyond the cost of the improvements.
Patty is working with a commercial real estate investor. While touring an older manufacturing property, the client mentions much of the equipment will have to be updated in a few years because it is fast becoming obsolete. Which depreciation method did Patty most likely bring up during this discussion because it depreciates assets based on wear and tear, obsolescence, and damage? AAlternative Depreciation System BGeneral Depreciation System CStraight-line method DAccelerated Depreciation
Alternative Depreciation System
Note: The alternative depreciation system is commonly used for equipment.
Mortgage lenders generally require a policy that covers specific perils for structures and dwellings at full replacement value, without depreciation. However, they do not require coverage for...? AContent BFire damage CFlood damage DWind damage
Content
Note: Lenders are more concerned with the property itself. They want to ensure the value of the property will be maintained. For this reason, lenders do not require insurance for personal property.
How does a lien holder place a lien on movable property?
AFiling a UCC-1 statement with the appropriate state authority.
BDisplaying a sign on the home.
CLiens cannot be placed on movable property.
DMovable property is usually included with the mortgage.
Filing a UCC-1 statement with the appropriate state authority.
Student dorms, nursing homes, and on-campus fraternity houses are considered...? ATemporary housing BLow-rent options CMixed-use housing DPublic housing
Temporary housing
Note: These are examples of temporary housing since the tenants are not staying long-term.
The comprehensive plan must balance the needs of current residents with…?
AThe financial interest of developers and future residents
BNeighboring cities’ expansion goals
CFederal migration regulations
DShrinking municipal budgets
The financial interest of developers and future residents
Note: The financial interests of the residents must be taken into account. The remaining answer choices will not apply to a comprehensive plan.
The "bulk" of a building is also known as the...? ABuilding envelope BFloor area ratio CLot area DZoning district
Building envelope
Note: The bulk regulations determine the building envelope for a property.
That portion of a zoning lot, which when viewed from above, is covered by a building, is known as...? ALot coverage BFloor area ratio CLot area DBuilding envelope
Lot coverage
Note: This question refers to the definition of lot coverage.
When a building fully complies with the local zoning ordinances, it is referred to as...? AAs-of-right BNon-conforming CConventional DProper
As-of-right
Note: An as-of-right building fully complies with the local zoning ordinances.
What is the maximum allowed buildable square footage on a property if the property measures 10,000 square feet, and the maximum permitted floor area ratio is 4.0? A40,000 sq.ft. B4,000 sq.ft. C400 sq.ft. D40 sq.ft.
40,000 sq.ft.
Note: You can find the maximum buildable square footage of a property by multiplying the lot area by the floor area ratio. In this example, the lot measures 10,000 sq.ft., with an FAR of 4.0. 10,000 x 4.0 = 40,000 sq.ft.
Who is responsible for assuming the financial burden and oversight of the construction of all roadways, sidewalks, alleys, nature trails, and other non-residential areas within a new subdivision? AThe developer BThe local economic development council CFuture owners DTaxpayers through municipal bonds
The developer
Note: The developer is typically responsible for building the infrastructure for a sub-division. This includes roads and landscaping.
The …………. helped the insurance industry develop a survey for municipalities to establish building guidelines in the early 20th century.
ANational Board of Fire Underwriters (NBFU)
BAssociation of National Insurers
CAssociation for Cooperative Operations Research and Development (ACORD)
DInternational Building Code Board Members
National Board of Fire Underwriters (NBFU)
Note: Early versions of building codes focused primarily on fire protection. This led to the creation of the NBFU.
Meghan is negotiating a deal to buy an abandoned property “as is” from a mortgage company. Her agent advises her to ask the seller to remove some old metal drums with an unknown liquid in them, which have been stored in a shed. Her reasoning is that…?
APeople who transport substances on the EPA’s National Priorities List may be subject to penalties and fines.
BShe is concerned about the cost of disposal.
CThe agent is a tough negotiator and is trying to save Meghan time and money.
DThe mortgage company is required to deliver the home ready for occupancy.
People who transport substances on the EPA’s National Priorities List may be subject to penalties and fines.
Note: Previously used tanks should be verified to ensure they do not contain harmful substances.
Which EPA regulation covers water sources like lakes, rivers, springs, streams, and underground wells?
AThe Safe Water Drinking Act (SWDA)
BCERCLA
CThe Resource Conservation and Recovery Act (RCRA)
DThe Clean Water Act
The Safe Water Drinking Act (SWDA)
Note: The SWDA was enacted in 1974 and is the principal federal law in the United States intended to ensure safe drinking water for the public. Pursuant to the act, the Environmental Protection Agency (EPA) is required to set standards for drinking water quality and oversee all states, localities, and water suppliers that implement the standards.
Congress passed the Interstate Federal Land Sales Full Disclosure Act in response to…?
AGrowing concerns over fraudulent and deceptive marketing practices by developers
BForeign investors failing to meet contractual obligations
CFluctuating currency rates
DPublic demand for more oversight in the real estate sector as a whole
Growing concerns over fraudulent and deceptive marketing practices by developers
Note: When purchasing a property out-of-state, the buyer may not obtain all of the information needed to make an informed decision. This lead to more fraudulent acts by developers, which ultimately lead to the creation of the Interstate Federal Land Sales Full Disclosure Act.
Certain industrial and commercially zoned properties are exempt from ISLA rules, providing all of the following conditions are met, with the exception of…?
AThe buyer agrees to pay an exemption fee in the amount equal to 5% of the purchase price.
BThere is at least one public road access into the property approved by local authorities.
CThe lessee or purchaser must show proof of being a legally organized business entity prior to recording a deed or executing a lease.
DThe purchaser must attest in writing the property will be used solely for non-residential activity.
The buyer agrees to pay an exemption fee in the amount equal to 5% of the purchase price.
Mitchell has decided to sell a home in a covenanted community with HOA bylaws. A potential buyer has a family member who is hearing impaired and is concerned about traffic hazards. The buyer would like to learn if there are options to improve community safety. Which governing body has jurisdiction over roadway signage, traffic control devices, and speed limits?
AAll of the answer choices provided are correct
BHOA board members
CDepartment of Transportation Standards
DMunicipal Code Enforcement
All of the answer choices provided are correct
Note: All of the answer choices provided have jurisdiction.
Which document establishes the mechanism for transferring ownership to the first buyers, and all subsequent buyers? AThe plat BA warranty deed CA quitclaim DA bill of sale
The plat
Note: This question refers to the definition of a plat.
With only a few exceptions, structures built with only wood have a maximum height of...? A2 floors B3 floors C1 floor DThere is no limit
2 floors
Note: Generally speaking, wood-framed buildings are limited to 2 floors. There are some exceptions if the building includes a sprinkler system.
The EPA was originally established to…?
AStem the escalating negative impact on human health and the natural environment.
BRemediate hazardous dump sites
CProhibit the use of lead paint
DMonitor green building initiatives
Stem the escalating negative impact on human health and the natural environment.
Note: The EPA was established in 1970 and is responsible for maintaining and enforcing national standards under a variety of environmental laws.
Which ISLA exemptions apply to individual lots? ARegulatory exemptions BPartial exemptions CFull statutory exemptions DZoning exemptions
Regulatory exemptions
Note: Regulatory exemptions apply to individual lots.
If a proposed building does not comply with the dimensional requirements of the zoning resolution, which of the following must be obtained? AArea variance BUse variance CConforming variance DNon-conforming variance
Area variance
Note: A variance must be obtained to build anything that does not comply with the local zoning ordinances.
Every development must comply with local ordinances. Which agency/official typically sets per-capita parking space requirements? AZoning Office BFire Marshall CBuilding & Permit Office DDepartment of Transportation
Zoning Office
Note: Parking space requirements are set forth by the local zoning office, and spelled out in the zoning ordinances.
According to the ADA, what is the minimum height requirement of handrails on ramps? A34 inches B28 inches C24 inches D48 inches
34 inches
Fire stairs in a building will typically exit to the…?
ABuilding’s lobby
BFloor below
CBasement
DAll of the answer choices provided are correct
Building’s lobby
Note: Fire stairs almost always exit to the building’s lobby or the street itself.
What was the primary EPA objective in establishing the Clean Water State Revolving Fund?
ATo empower states to proactively manage water quality.
BTo increase federal authority over state development and building expansion near navigable waters.
CTo modernize wastewater treatment plants.
DTo reduce the manufacture and sale of harsh chemicals.
To empower states to proactively manage water quality.
Note: The CWSRF is a federal-state partnership that provides communities a permanent, independent source of low-cost financing for a wide range of water quality infrastructure projects.
Becca, a real estate agent who serves a semi-rural area, recently learned that ............ of all post office locations are owned by individuals and leased back to the USPS. This information may be helpful when she works with investors looking for a stable, guaranteed return on investment. A75 Percent (%) B63 Percent (%) C100 Percent (%) D50 Percent (%)
75 Percent (%)
