CE Shop Final Exam Course 2 well answered already passed, Exams of Nursing

Download CE Shop Final Exam Course 2 well answered already passed and more Exams Nursing in PDF only on Docsity! CE Shop Final Exam Course 2 What is the maximum amount of time a protection or override clause can be in effect? - correct answer ✔✔Six Months Appraiser John is determining how a property is being used to determine a more optimal function. What is he determining? - correct answer ✔✔Highest and Best Use Which of the following statements is true about the listing presentation? It's best to leave out financial data (such as a CMA or comparable property information) and listing agreements, so the seller doesn't think you're jumping the gun and already counting your commission. The less you say, the better. You don't want to overwhelm your potential clients with numbers and decisions at this first presentation. The most important part of a listing presentation is to make the buyers like you as a person. Try not to talk numbers or about their house, but instead focus on charming them. You should go into the presentation fully prepared with a comparative market analysis, listing agreement, MLS listings of comparable properties, and your plan for marketing the sellers' property. - correct answer ✔✔You should go into the presentation fully prepared with a comparative market analysis, listing agreement, MLS listings of comparable properties, and your plan for marketing the sellers' property Over how many years is a commercial property depreciated? - correct answer ✔✔39 Years Real estate licensees who want to uphold the Fair Housing Act should make a habit out of which of the following actions? - correct answer ✔✔Tell potential clients in their initial meeting that they are committed to upholding fair housing laws. Which type of listing is not legal in some states because it can lead to a conflict of interest? - correct answer ✔✔Net Listing Jimmy owns a vacant piece of land. He plans to build a home on the land and then sell it. What type of loan is he most likely to acquire to finance this project? - correct answer ✔✔Construction Which is not one of the lender requirements under the Community Reinvestment Act? Offering financing in low-income housing communities Participating in development and rehabilitation projects in low-income neighborhoods Providing loan programs for housing, small businesses, and small farms Providing school loans in low-income areas - correct answer ✔✔Providing school loans in low-income areas Which of the following scenarios is considered a violation of FTC advertising rules? - correct answer ✔✔Sarah just started her career as a solo agent and decided to try a new marketing campaign slogan: "Come let our team of hard-working agents find you the home of your dreams!" What's the best practice for handling blank areas of a listing agreement form that don't apply to a listing? - correct answer ✔✔Write "N/A" in the blanks. Which of the following is part of the Consumer Financial Protection Bureau's mission of consumer protection? - correct answer ✔✔Enforce consumer financial protection laws. The Adams family is financing their loan through Acme Bank and their agent negotiated a great sales price on their new home. Smith Title Company processed the loan documents. The Adamses must purchase mortgage insurance. Who does the insurance protect? - correct answer ✔✔Acme Bank Shannon doesn't understand why her agent wants her to add a contingency to her purchase offer. Her agent, Scott, explains that the property is in a transitional neighborhood, and it might be overpriced. What type of contingency is Scott recommending? - correct answer ✔✔Appraisal How do you calculate the area for a square room? - correct answer ✔✔Multiply the length of two sides together Madeline is a property manager who's calculating the vacancy rate for the apartment building she manages. What formula would she use to do this? - correct answer ✔✔Number of vacant units ÷ total units As a security precaution, which of the following is something you should do? - correct answer ✔✔Limit the amount of personal information you post. Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's one purpose of this document? - correct answer ✔✔To provide the estimated closing costs for Lawrence's loan A third party holds legal title to Jackie and Tom's house until their loan is paid off. What type of security instrument was used to secure the real estate transaction? - correct answer ✔✔Deed of Trust A property is 60 feet long and 75 feet wide. What is its area? - correct answer ✔✔4,500 square feet Which of the following is a legitimate reason to counter an offer? - correct answer ✔✔Price A family of four, with children ages six and nine, is denied the opportunity to view an available unit in housing intended for older persons. Which of the following statements is true? - correct answer ✔✔The federal Fair Housing Act allows an exemption for communities that are designed and operated for older persons. What must sellers provide prospective buyers of homes built prior to 1978, in addition to the federally required disclosure form? - correct answer ✔✔EPA lead safety pamphlet When a buyer takes over payments on a loan without telling the lender, this is called a purchase ______. - correct answer ✔✔Subject to existing financing Missing, cracked, or displaced roof shingles can indicate ______ damage. - correct answer ✔✔Wind In which section of the Standard Residential Purchase Agreement do buyers indicate the amount of earnest money they're putting down? - correct answer ✔✔Price and Terms Institutions that purchase loans, package them into mortgage-backed securities, then sell these to investors may commonly be referred to as ______. - correct answer ✔✔Secondary market players Can buyers using a contract for deed in Minnesota also take advantage of state first-time homebuyer programs? *No, because contracts for deed already have the advantage of lower payments. *No, buyers using a contract for deed are not eligible for those programs. *Yes, all first-time homebuyers are eligible. *Yes, as long as they fill out the appropriate paperwork. - correct answer ✔✔No, buyers using a contract for deed are not eligible for those programs. Which statement is true regarding most government loans? Borrowers must put at least 20% down. Private mortgage insurance (PMI) is required. The government provides the funds. They're insured or guaranteed by the government. - correct answer ✔✔They're insured or guaranteed by the government. Which of the following would NOT require the issuance of a home warranty in Minnesota? A major home renovation that includes plumbing installation The sale of a newly constructed four-unit residential building The sale of a newly constructed single-family dwelling The sale of a single-family home from the original owner and occupant to a new owner - correct answer ✔✔The sale of a single-family home from the original owner and occupant to a new owner In Minnesota, "offer to purchase" and "sales contract" are alternate terms for the __________________. Buyer representation agreement Deed Listing agreement Purchase agreement - correct answer ✔✔Purchase agreement Kelly is closing on the house she's purchasing on Wednesday. Which of these statements is true? Kelly must receive the Loan Estimate at least four days before closing. The closing officer must deliver the Closing Disclosure at closing. The lender must provide the Closing Disclosure by Friday of the week before closing. The Loan Estimate amounts must be within 1/4 of a percent of the final settlement costs. - correct answer ✔✔The lender must provide the Closing Disclosure by Friday of the week before closing. We know that the original loan was for $17,000 with an interest rate of 9.5%. How much interest would be charged if the loan is paid off in 11 months? $1,416 $1,480 $1,545 $1,615 - correct answer ✔✔$1,480 17,000 * 0.095 = 1,615 1,615/12 (monthly rate) = 134.58 134.58 * 11 = 1,480.42 and then just round down to whole # If you sell a home for $143,000, and your commission rate is 5%, what is your commission on the sale of this home? $7,150 $7,500 $8,580 $9,440 - correct answer ✔✔$7,150 143,000 * 0.05 = 7,150 Which type of buyer agency offers the flexibility to work with multiple agents but results in buyers acting on their own behalf since no agent owes fiduciary duties? Exclusive agency Exclusive right to represent Limited agency Open agency - correct answer ✔✔Open Agency Boris is an appraiser working for the Smith family. They've hired him to perform an appraisal on their six- bedroom house. What two types of data will Boris gather? Digital and hand-written General and specific Old and recent Pertinent and unrelated - correct answer ✔✔General and Specific Which contingency protects the buyer in the event the buyer cannot get a loan? Appraisal Financing Inspection Interest rates - correct answer ✔✔Financing What is the name of the set of regulations used to enforce the Equal Credit Opportunity Act? Regulation 120, Part B Regulation B Regulation C Regulation ECOA - correct answer ✔✔Regulation B Terrance is behind on his mortgage payments. He received a notice from his lender notifying him that he's in default, giving him options for addressing the default, and providing information about foreclosure prevention counseling. Terrance didn't take any action, and the lender initiated foreclosure by advertisement proceedings. The property was sold at auction six weeks ago. What is the statutory redemption period? The period after the foreclosure sale during which Terrance could continue to occupy the home and buy it back The period between Terrance receiving the default notice and when the foreclosure sale was held The period between the foreclosure sale and Terrance's eviction The timeframe between Terrance receiving the default notice and the date he can purchase the property back - correct answer ✔✔The period after the foreclosure sale during which Terrance could continue to occupy the home and buy it back When working with a seller, you signed a listing agreement that ensured you'd receive a commission, provided the property sold during the listing term. What type of listing agreement did you sign? Exclusive agency Exclusive right to collect commission Exclusive right to sell Net listing - correct answer ✔✔Exclusive right to sell If a property's income value is $200,000 and it's earning a net operating income of $40,000, what is the cap rate? 20% 25% 40% 5% - correct answer ✔✔20% 40,000/200,000= 0.2 Your buyer clients, the Thompsons, told you about a problem they ran into with the lender that handled their mortgage. The Thompsons, who are African American, were given less favorable loan terms than a white couple they know who used the same lender. You know the Thompsons have excellent credit. Which act should you make them aware of? Community Reinvestment Act Consumer Credit Protection Act Equal Credit Opportunity Act Home Mortgage Disclosure Act - correct answer ✔✔Equal Credit Opportunity Act Inconsistent temperatures from room to room is a common indication of a problem with what system or home feature? Electrical Foundation Heating and cooling Roofing - correct answer ✔✔Heating and cooling In which section of a Minnesota lease will you find the beginning and ending dates of the lease? Occupancy and Use Receipt Tenants Term - correct answer ✔✔Term Which of the following is an essential element of a valid real estate contract? Duress Legal purpose Misrepresentation Mutual mistake - correct answer ✔✔Legal Purposes Georgia, a buyer, recently lost her job and hasn't been able to make payments on her contract for deed agreement. The seller can either evict her or ______. Extend the contract Forgive her Sue her Turn the agreement over to a bank - correct answer ✔✔Extend the contract John's home is up for sale. He originally bought it five years ago for $300,000. Its current value is $350,000. His real estate agent notified him that a buyer just made an offer on his home for $365,000, which is the price for which other similar homes in the neighborhood are selling, and John accepts. What does the price of $365,000 represent? The appraised value The assessed value The investment value The market value - correct answer ✔✔The market value Which of the following is true about lockboxes? They must be hidden from plain sight. Which mortgage clause requires the lender to discharge the mortgage lien once the borrower has paid in full? Acceleration Alienation Defeasance Due-on-sale - correct answer ✔✔Defeasance Licensee Janice has found a way to work with prospective buyers without ever leaving her desk: She sets them up with automated email messages for listings that meet their criteria, and answers any questions they have when they call. Is Janice doing anything wrong? No, this is how agents work with buyers. No, this is how all agents work. Yes, because she should meet them in person before working for them. Yes, because this constitutes the illegal practice of real estate. - correct answer ✔✔Yes, because she should meet them in person before working for them. If, after seeing your carefully prepared comparative market analysis, a seller doesn't agree with the price range you prepared in your listing presentation, your best practice would be to ______. Decline the listing if the seller's price and your price analysis are too far apart. List the property at the seller's price and hope to reduce the price later. Offer to purchase the property at your suggested list price if it doesn't sell at the seller's price. Split the difference. - correct answer ✔✔Decline the listing if the seller's price and your price analysis are too far apart. Find the area of a square flower bed where each side measures 4.5 m. 1 meters squared 20.25 meters squared 4.5 meters squared 9 meters squared - correct answer ✔✔20.25 meters squared The Elliotts have lived in their current house for five years. Space got a little tight after their first child was born. Now that they're expecting their second child, they've decided they really need a new house with more space in a good school district. What type of buyers are the Elliotts? First-time buyers Retirees Trade-down buyers Trade-up buyers - correct answer ✔✔Trade-up buyers When Marcy toured her new client's house, she noticed paint peeling off of the shutters. When she asked the seller if the house was painted with lead-based paint, he replied, "I'm not sure ... I inherited the house from my dad, who built it in the '50s." What is Marcy required to do? Based on the build date, she should assume the property has lead-based paint and advise the seller that it must be remediated before listing the property. Have the seller test for lead-based paint. Inform the seller that he needs to complete the lead-based paint disclosure form and provide potential buyers with the EPA pamphlet regarding lead hazards. Take a sample of the peeling paint with her, have it tested, and have the seller reimburse her for the testing cost at settlement. - correct answer ✔✔Inform the seller that he needs to complete the lead- based paint disclosure form and provide potential buyers with the EPA pamphlet regarding lead hazards. ROI = ______ / initial cash investment Cash flow Effective operating income Gross operating income Principal payment and interest - correct answer ✔✔Cash flow What can brokerages do to ensure licensees use technology properly? Forbid new technology from being used for marketing and communication. Have a solid policies and procedures manual in place. Review all communications sent between licensees and consumers. Track internet and phone usage. - correct answer ✔✔Have a solid policies and procedures manual in place. If two parties enter into a contractual agreement with each other to perform an illegal act, which of the following statements is true of the contract? It is voidable, because Jesse is not mentally competent to sign a contract. It is voidable, because Jesse probably signed it under duress. It is voidable, because the consideration, as a percentage rather than a dollar amount, is not clearly stated. It is void because it is not for a lawful purpose. - correct answer ✔✔It is void because it is not for a lawful purpose. Which one of the following statements is true for a sale that's subject to an existing mortgage lien? A novation can be used to remove the original borrower's liability. The lender may charge a fee to the new borrower. The lender may require the new borrower to meet qualification standards. The seller's credit score may improve although he's not making any mortgage payments. - correct answer ✔✔The seller's credit score may improve although he's not making any mortgage payments. Which one of the following statements about asbestos is true? Homeowners can safely remove it. It's harmful only if left in place. It's not harmful at low levels. No amount of it is considered safe. - correct answer ✔✔No amount of it is considered safe. Jasmine has a mortgage on her property, but allows her homeowner's insurance to lapse. Which of these is a possible consequence of this action? Jasmine can't occupy the residence. Jasmine can't pay off her loan early. The lender can put Jasmine's loan in default. The lender can sue Jasmine. - correct answer ✔✔The lender can put Jasmine's loan in default.