COLIBRI REAL ESTATE FINAL EXAM 2024/2025, Exams of Business Economics

Download COLIBRI REAL ESTATE FINAL EXAM 2024/2025 and more Exams Business Economics in PDF only on Docsity! COLIBRI REAL ESTATE FINAL EXAM 2024/2025 COLIBRI REAL ESTATE FINAL EXAM 2024/2025 Why is the condition of bearing walls more important than non bearing walls? - Precise Answer ✔✔Bearing walls support the ceiling and the roof. Owner Tom decided to lease out his basement to a college student. By leasing the basement, Tom has - Precise Answer ✔✔transferred a portion of his bundle of rights What is a forecast of income and expenses that can be projected over five years? - Precise Answer ✔✔Stabilized budget A buyer told broker Lena that she wants to move to Cuban neighborhood. Then the buyer asked if Lena could show her the best home in a Cuban area. How should Lena respond to this request? - Precise Answer ✔✔Lena should explain to the buyer that she ethically and legally cannot recommend housing based on national origin. Which of the following wills may be considered invalid? - Precise Answer ✔✔A will that is not signed. Broker Torrey hires salesperson Wes as an independent contractor. As an independent contractor, Wes can expect which of the following from Broker Torrey? - Precise Answer ✔✔Performance Expectations Which of the following statements best describes what happens with a judicial foreclosure? - Precise Answer ✔✔The mortgaged property is sold under the supervision of a court. Which of the following best describes the principle of conformity? - Precise Answer ✔✔A home maintains its highest value by being in a neighborhood with similar-type housing. The cost of doing direct mail advertising depends on - Precise Answer ✔✔The frequency of the mailings Which form does RESPA require lenders to use to detail the costs that the buyer and seller will pay at closing? - Precise Answer ✔✔Closing Disclosure Real Estate licensees should know enough about building ordinances to be able to - Precise Answer ✔✔Alert clients of potential problems in a home. 160 County Drive has 4 acres of open pasture and a 1,900 square foot home. The home has 2 bedrooms and 4 bathrooms. Call 555-555-5555 now for information! What is missing from this advertisement that makes it a blind ad? - Precise Answer ✔✔The brokers identification. Robert owns his property and enjoys the full bundle of rights. Can he use his property as collateral for debt? - Precise Answer ✔✔Yes, Robert can encumber his property. Alex'x home has been on the market for eight months. What is the most likely reason Alex's home has not been sold yet? - Precise Answer ✔✔The property is overpriced. Broker Austin represents a party in a transaction where there is a dispute regarding the deposited escrow money. What should Austin do? - Precise Answer ✔✔Hold the money until both parties (or their lawyers) provide a written release. Unlike buyer/seller agency agreements that create _________, the management agreement creates ________. - Precise Answer ✔✔Special agency, General agency A cooperative is - Precise Answer ✔✔a type of residential property. Licensee Alex only represents the buyer in a transaction. What is Alex called in this situation? - Precise Answer ✔✔A single Agent Which of these activities is appropriate to do within the first few days of obtaining a listing? - Precise Answer ✔✔Have the managing broker send a "Thank you for listing" letter to the sellers "This property has the best view in the entire county." This statement is an example of - Precise Answer ✔✔Puffing The cost to replace an improvement with original materials is known as - Precise Answer ✔✔Reproduction cost One of the major considerations in a master plan is - Precise Answer ✔✔The effect of development on traffic patterns and the environment. Under the _______ of recording, title passes when the conveyance is registered on the title certificate. - Precise Answer ✔✔Torrens System If a cooperative corporation cannot pay its bills, what would happen? - Precise Answer ✔✔The corporation owning the property would be dissolved, and all of the residents could lose their interest in the cooperative. Ownership of a property reverted to the grantor of the estate when its usage failed to conform to a stated condition in the grant. What type of estate existed? - Precise Answer ✔✔Fee simple defeasible What is the balance on an amortized loan of $780,000 after the first payment if the interest rate is 5% with a monthly P&I payment of $3,780? - Precise Answer ✔✔$779,470 How does the Federal Reserve control lenders? - Precise Answer ✔✔They tell lenders what percentage of assets they must keep as reserves. What type of agency cannot be revoked by the principal, nor is terminated if the principal dies? - Precise Answer ✔✔Agency coupled with an interest A written pledge by a lender to lend a certain amount of money to a qualified borrower on a particular piece of real estate for a specified time under specific terms is a(n) - Precise Answer ✔✔Conditional Approval Which statement about a deed in lieu of foreclosure is false? - Precise Answer ✔✔It gives the borrower an opportunity to change the loan terms. Francis just signed the papers on a conventional 30-year, $210,000 loan. He was wondering what type of interest will he be paying on the loan. What is the correct answer? - Precise Answer ✔✔Simple Interest Broker Ron wants to open a separate escrow account for each transaction he is involved in. Is this legal? - Precise Answer ✔✔Yes, there is no legal limit on the number if escrow accounts a broker can have. If a cooperating broker accepts the offer of subagency from a listing broker, to whom does the cooperating broker owe fiduciary duties? - Precise Answer ✔✔Seller Carla has been walking across a path on John's property for the past 22 years. John knows about this but has never given Carla permission. What might a court grant to Carla? - Precise Answer ✔✔An easement by prescription What is the definition of "valuable consideration" in regard to contract validity? - Precise Answer ✔✔Something specifically offered in exchange for something else Under what type of contract is a seller obligated to sell, but the buyer is not obligated to buy? - Precise Answer ✔✔Option Which of these listing agreement statements is false? - Precise Answer ✔✔The seller can change the listing agreement whoever he or she wants The assessed value of Sidney's home is $350,000 but the home was recently appraised at $225,000. As a result, Sidney believes her tax bill is way too high. What option does Sidney have? - Precise Answer ✔✔She can file a complaint with the local board of assessment review. A town is replacing a sidewalk that serves eight homes. The length of the sidewalk is 900 feet. Laura's property has 60 feet of the sidewalk. If the cost of the project to be paid by a special assessment is $18,000, what will Laura's assessment be? - Precise Answer ✔✔$1,200 Which of the following would be considered community property in a community property state? - Precise Answer ✔✔A car the spouses bought together after the marriage. How might a voidable contract become valid? - Precise Answer ✔✔If the party who has reason to disaffirm the contract elects instead to perform it Why would a property with a rectangular system description also have a metes and bounds legal description? - Precise Answer ✔✔Because the property is irregular in shape. What is another common name for the lot and block system of legal descriptions? - Precise Answer ✔✔The recorded plat method Homeowner Louise has been lax in protecting her property rights. According to the ___________, Louise may lose those property rights. - Precise Answer ✔✔Doctrine of Laches What is the most common lease term for space in an office building? - Precise Answer ✔✔3-5 years Vicky was posing as a customer of Establishment Realty. However, she was really there to see if Establishment Realty was following fair housing laws. Vicky was a - Precise Answer ✔✔Tester Bobbie decided to redeem her property after a tax sale. Bobbie exercised her - Precise Answer ✔✔Statutory right of redemption A property has a Gross Income Multiplier of 14, and value of $800,000. What is its annual income? - Precise Answer ✔✔$57,143 Jordan has a month-to-month lease with landlord Greg. What type of lease did Jordan sign? - Precise Answer ✔✔Estate from period- to period A tenant who stays beyond his lease without consent of the landlord is known as - Precise Answer ✔✔A tenant at sufferance Which of the following legal description methods has been used the longest in the US? - Precise Answer ✔✔The metes and bounds system When the agency relationship has been terminated, the licensee is no longer considered the principal's agent and does not owe any further duties to the principal except for - Precise Answer ✔✔Accounting and Confidentiality A(n) ________ is one that conflicts with the ordinances that were enacted after the use commenced. - Precise Answer ✔✔Legal nonconforming use Which of the following is a valuable skill for a property manager to have? - Precise Answer ✔✔Knowledge of building systems Which of these statements about an independent contractor is false? - Precise Answer ✔✔He or she is reimbursed for all business expenses Seller Monica is selling her property to Harriet. What is Monica's primary responsibility at closing? - Precise Answer ✔✔To deliver marketable title In the appraisal process, looking at the number of recreational facilities, the distances to schools and adequacy of public transportation is called - Precise Answer ✔✔Neighborhood Analysis