TN Course Exam Questions Flashcards
Agricultural property management is the only PM specialty where you might be expected to what?
manage a staff of specialists
The Uniform Residential Landlord and Tenant Act
sets standards for improving oral lease agreements
The agent owes what duty ONLY to the client?
obedience
To avoid charges of price fixing, licensees must
refrain from talking as if they have discussed fees with licensees from other firms
If Tom has monthly income of $3,000 and his wife’s monthly income is $3,500 what is the estimated max loan payment they would qualify for under the FHA guidelines?
29% - max
$3,000 + $3,500 = $6,500
$6,500 x 29% = $1,885
How can a licensee be at risk when disclosing an agency relationship?
if the licensee fails to inform and disclose properly
How would a neighborhood transitioning from residential to some other use affect a home’s estimated selling price?
it could increase or decrease the selling price, depending on what kind of use the area is moving to
Where does someone go to file a complaint that a licensee-member has violated the Code of Ethics?
The local REALTOR board or association
When a contract is unenforceable, a court will not
compel a party to perform their end of the contract
When entering into an executive buyer representation agreement, the licensee must advise the buyer in writing that
the buyer should contact only the licensee to arrange property viewings
Within ___ from the date a broker’s original license was issued, the broker must complete 120 class room hours of real estate education to renew the license
3 years
A counteroffer is
the rejection of an offer and a simultaneous new offer
What is not a required disclosure by either seller or agent?
earthquake zone
what are the 2 ways escrow funds are most often mishandled?
commingling and conversion
most real estate licensees specialize in what type of property?
residential property
In TN a real estate licensee may be charged with the unauthorized practice of law for
charging a fee for helping a client draw up an option contract
When several houses that are equal in seize, quality and appeal are for sale, the valuation principle that says a buyer will not pay more for one than for another is called?
substitution
wheat type of document may a real estate licensee prepare without being guilty of unauthorized practice of law?
Sales agreements
what is secondary financing?
a loan to cover purchase costs that are not covered by the primary loan
Failure to correctly compete forms is a violation by the ____ and not the ____
licensee, sponsoring broker
When code of ethics violation complaint goes to a Grievance Committee, the committee has the authority to
dismiss the complaint
It is _____ for a real estate licensee to pay a commission to an unlicensed individual or company
unlawful
A license is issued on September 1, 2020. What will it expire if not renewed?
September 1, 2022
When using forms with clients the agent should never
charge a fee for helping with a form
when calculating a borrower’’s debt ratio, what is not included in calculating a borrower’s debt loan?
estimated tax payments
which legislation prohibits discrimination in housing based on protect class status in advertising the sale or rental of housing?
Civil Right Act of 1968
In a transaction using a contract for deed, what does the buyer initially receive?
equitable title
licensee Lou has found a property he would like to purchase as an investment. What must he do?
make a written disclosure of personal interest to the seller
Licensees should learn to measure and calculate areas accurately in order to avoid
the risk of misrepresentation
which HUD doc provides info to builders regarding fair housing compliance?
Fair Housing Act Accessibility Guidelines
Buyer wants the seller’s drapes and TV includes in the purchase price of the seller’s condo. What should the buyer’s agent do?
list the items in the sales contract
If an appraisal comes in low what is NOT an option?
the buyer can pay for a second appraisal, which the lender would have to accept
Securing a loan by pledging property without giving up ownership to the property is called
hypothecation
To aid in risk reduction programs, TN firms are required to keep written records of all real estate transactions for at least ___ years after closing or termination
3
What is the difference in the principal broker’s supervisory responsibilities to an employee affiliate broker and an independent contractor affiliate broker?
There is no different in the supervisory responsibilities of the broker to any affiliate brokers
The legal remedy for a contract default that terminates the contract and returns the valuable consideration to its original order is called
rescission
What kind of lease is most common for residential properties?
Gross lease
A property condition disclosure is required when?
prior to acceptance of a purchase contract and at or before closing
In TN, a PM who performs duties that include negotiating, security deposits, rents, and lease tiers must
be licensed
what is one reason for low appraisal?
an artificially inflated price due to multiple offers
To practice ethically, real estate professionals should
esclude disparagement of competitors
What is NOT a general duty of a PM?
performing a property appraisal to determine value and income potential
FHA guidelines require the income ratio on a mortgage loan to be
no more than 29%
What economic principle underlies the value of real property says that a property is at its highest value when it fits into its surroundings?
Conformity
How much may a seller contribute toward discount points and selling costs on a purchase financed by an FHA loan?
6% of the sales price
when working as a seller’s agent, a licensee must never disclose
anything harmful to the client’s interest
What neighborhood factors must be considered when using a CMA?
land contour
The TN landlord and tenant act allows the landlord to enter the rented premises at
any time when acting to prevent damage or destruction; to make repairs or show the property, on giving proper notice
Among the primary sources of real estate ethics and standards it
state real estate licensing regulations
What is not a required disclosure either by the seller or agent?
confirmation of property measurements
What would be an appropriate risk management response if a seller asks about the religion of a potential buyer?
Remind them of the listing agreement they signed and how it discussed that basing a decision on someone’s religion is against anti-discrimination laws? and with that in mind, if the buyer’s religion is really important to you, I can refer you to an expert
Broker requires all of their buyers to sign offers with the stipulation that they will use Acme Home Inspection Services. This practice is called?
tying arrangement
Violators of federal fair housing laws may be punished with?
fines and jail
Does a contract need to be in writing if the item being sold is $1,000?
Yes
“farming” is the practice of?
prospecting for business in a selected area
Under what listing agreement can the owner of a property sell the property without owing the licensee a commission?
exclusive agency
to avoid a breach of contract due to an unavoidable delay, the best course of action is to?
execute an amendment rescheduling the closing date
In TN, all ads for real property must
be under the firm’s name
What is the amount a lender normally requires to be included for taxes and insurance in a borrowers monthly mortgage payment?
1/12th of the annual real estate taxes and hazard insurance payment
When is a residential sale exempted from the property condition disclosure requirement?
transfer is by deed in lieu of foreclosure
When a licensee has an agreement to provide services as an agent to more then one party in the same transaction when the interests of the party are adverse, this is called?
dual agency
what type of lease is not required to be in writing?
month to month
According to TRID rule, the settlement agent must give the seller
closing disclosure
MLS is a
listing shared with members of an organization who agree to cooperate in return for a commission share
Cancellation and discharge of a contract does NOT include?
revocation without repercussions
according to the level of authority delegated to the agent, the usual real estate agency is?
limited agency
What does an offeree lose the right to accept an offer?
when the offeror revokes the offer
Proper disclosure prevents clients from claiming they were
misled
a TN licensee must use the “Exclusive Right to Sell” form that is required by
the licensee’s broker
When is the latest an agent may obtain written confirmation of their agency disclosure from a seller who has no agent?
before executing a listing agreement or presenting an offer
What is the least desirable grade of office property?
Class D
A Kentucky real estate firm has a web site on a server in TN. The web site states that the firm is a TN real estate firm. Is this allowed under TN law?
No, it is a violation of the License Act and Commission Rules
What is the best explanation for why ethical decisions are difficult to make?
ethical dilemmas are often more a matter of degree than or right vs. wrong
The PM must consider the needs and goals of the _____ to run the building effectively
tenant as much at the owner
In TN, a rental is considered abandonment when?
30 days absence plus failure to be up to date on rent
NAR guidelines do NOT address
issues of courtesy or etiquette
Federal Fair Housing law is administered by who?
the office of fair housing and equal opportunity
strategies for managing risk does NOT fall into what category?
protection
which legislation forces property owners and managers to allow a disabled resident to keep a service dog when there is a no pets policy?
Fair Housing Amendments Act of 1988
an affiliate broker’s license should be displayed where?
in her broker’s principal place of business
in order to have a buyer agency relationship with a buyer, a licensee must obtain what?
written agency agreement from the buyer
Affiliate broker must not be paid by whom?
parties other then the broker
A licensee who represents a buyer in the purchase of a property must disclose what?
adverse facts about the property to the buyer
Why is it sometimes necessary to include a bill of sale with a purchase contract?
a Bille of sale confirms that all promised inclusions are in fact part of the conveyance
what was the first legislation to prevent discrimination in residential properties financed by FHA and VA loans?
executive order 11063 or 1962
How can a licensee be at risk when disclosing an agency relationship?
if the licensee fails to inform and disclose properly
What is a PM’s most important duty?
to max ROI for the property owner
as a facilitator, what must be disclosed to all parties in the transaction?
facilitator status and sources of compensation
In a licensee if a facilitator, there is not a signed _____ with the ____
agency agreement, seller or buyer
A seller’s confidential info may be shared with the managing broker if the licensee is a ____ agent?
designated
what is liable for errors or inaccuracies on the property condition disclosure if the condition change occurred AFTER the disclosure was delivered to the buyer?
no one
if a loan I subject to RESPA, when must the lender give the borrower an estimate of closing costs?
within 3 days of receiving the loan application
What type of agency is one where a broker has an agency relations with a client and an affiliate broker is working as that broker’s agent?
subagency
What is the best way to respond to questions about “what kind of people” live in a neighborhood?
refer the questioner to someone who has the expertise to give a actual answer
What is an agent’s best risk reduction move if a seller wants to help a buyer with financing?
make sure all agreements between the parties are in writing
What is necessary to show reasonable cause for soliciting a referral fee from another licensee?
There must be a subagency, referral, or cooperative relationship between the licensees
