Download Real Estate Practice Final Exam: Questions and Answers and more Exams Real Estate Management in PDF only on Docsity!
Colibri Real Estate Practice Final Exam
A seller decided to back out of a sales contract for no good reason. What recourse does the buyer have? - CORRECT ANSWER-To sue for specific performance. What are the primary advantages of PEX piping? - CORRECT ANSWER-PEX piping is able to withstand both high and low temperatures and it is highly resistant to chemicals. How does Planned Unit Development zoning differ from ordinary zoning? - CORRECT ANSWER-I requires that multiple tracts of land be developed according to a single design for efficient use of space. Home Hoarding Realty is advertising to the public that their managing broker has been in the business 37 years and has sold over 1,250 homes. This is an example of - CORRECT ANSWER-institutional advertising Which of the following would qualify as an example of retail property? - CORRECT ANSWER-A shopping center Which of the following statements best describes what happens with a judicial foreclosure? - CORRECT ANSWER-The mortgaged property is sold under the supervision of a court. Which of the following best describes the principle of conformity? - CORRECT 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 - CORRECT ANSWER-The frequency of the mailings A type of mortgage which allows the lender to increase the outstanding balance of a loan up to the original amount of the loan in order to advance additional funds is called an - CORRECT ANSWER-open-end mortgage Why is the condition of bearing walls more important than non bearing walls? - CORRECT 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 - CORRECT ANSWER-transferred a portion of his bundle of rights
What is a forecast of income and expenses that can be projected over five years? - CORRECT 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? - CORRECT 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? - CORRECT 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? - CORRECT ANSWER-Performance Expectations Of the following liens: a $100,000 mortgage, a $2,500 property tax bill, and a $8, mechanic's lien and a $25,000 judgement lien, which will be paid off first after a foreclosure sale? - CORRECT ANSWER-The $2,500 property tax lien On a $280,000 loan, the lender charges a 2 point service charge. How much does the borrower have to pay for just these two points? - CORRECT ANSWER-$5, Neal's home has been foreclosed on and sold at a Sheriff's sale. The sale brought in $500,000 and the total liabilities on the home were $425,000. Who receives the additional $75,000? - CORRECT ANSWER-Neal Broker Jon is attaching a rider strip to a For Sale sign. What information is most likely on this rider strip? - CORRECT ANSWER-Jon's cell phone number Which is false regarding a promissory note? - CORRECT ANSWER-It is the term used for a note that is guaranteed or insured by a governmental agency. What is a disadvatage of real estate investment? - CORRECT ANSWER-It is not highly liquid A broker induces an owner to sell by telling him that Muslims are moving into the neighborhood. This broker is guilty of - CORRECT ANSWER-blockbusting Given the net income of a property, the appraiser can determine an opinion of the value for that property by - CORRECT ANSWER-Dividing by the rate of capitalization Morgan owned a large condominium on the ocean. She died and no legal heirs were found. Who will receive title to the property? - CORRECT ANSWER-The State or County
Licensee Alex only represents the buyer in a transaction. What is Alex called in this situation? - CORRECT ANSWER-A single Agent Which of these activities is appropriate to do within the first few days of obtaining a listing? - CORRECT 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 - CORRECT ANSWER-Puffing The cost to replace an improvement with original materials is known as - CORRECT ANSWER-Reproduction cost One of the major considerations in a master plan is - CORRECT 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. - CORRECT ANSWER-Torrens System If a cooperative corporation cannot pay its bills, what would happen? - CORRECT 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? - CORRECT 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? - CORRECT ANSWER- $779, How does the Federal Reserve control lenders? - CORRECT 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? - CORRECT 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) - CORRECT ANSWER-Conditional Approval Which statement about a deed in lieu of foreclosure is false? - CORRECT 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? - CORRECT ANSWER-Simple Interest Broker Ron wants to open a separate escrow account for each transaction he is involved in. Is this legal? - CORRECT 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? - CORRECT 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? - CORRECT ANSWER-An easement by prescription What is the definition of "valuable consideration" in regard to contract validity? - CORRECT 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? - CORRECT ANSWER-Option Which of these listing agreement statements is false? - CORRECT 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? - CORRECT 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? - CORRECT ANSWER-$1, Which of the following would be considered community property in a community property state? - CORRECT ANSWER-A car the spouses bought together after the marriage. Which of these statements about the Americans with Disabilities Act is TRUE? - CORRECT ANSWER-An apartment manager might be required to allow a tenant with a disability to widen a doorway. The size of jurisdiction's tax base is derived by - CORRECT ANSWER-subtracting exemptions from assessed values.
The essential criteria for an acceptable legal description is that it - CORRECT ANSWER-Accurately locates the parcel in the opinion of a court Which of the following statements is false regarding a tenancy in common? - CORRECT ANSWER-The co-owners must be married Which parties typically purchase title insurance once the transaction is complete? - CORRECT ANSWER-The lender and buyer An income producing property rents for $2,790 per month and the GRM is 97. What is the estimated market value of the property? - CORRECT ANSWER-$270, Escrow moneys should be held in the broker's - CORRECT ANSWER-escrow account New salesperson Juliet has been assigned office duty for Saturday and Sunday. What is another common term for office duty? - CORRECT ANSWER-Floor time How might a voidable contract become valid? - CORRECT 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? - CORRECT ANSWER-Because the property is irregular in shape. What is another common name for the lot and block system of legal descriptions? - CORRECT ANSWER-The recorded plat method Homeowner Louise has been lax in protecting her property rights. According to the ___________, Louise may lose those property rights. - CORRECT ANSWER-Doctrine of Laches What is the most common lease term for space in an office building? - CORRECT 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 - CORRECT ANSWER-Tester Bobbie decided to redeem her property after a tax sale. Bobbie exercised her - CORRECT ANSWER-Statutory right of redemption A property has a Gross Income Multiplier of 14, and value of $800,000. What is its annual income? - CORRECT ANSWER-$57, Jordan has a month-to-month lease with landlord Greg. What type of lease did Jordan sign? - CORRECT ANSWER-Estate from period- to period
A tenant who stays beyond his lease without consent of the landlord is known as - CORRECT ANSWER-A tenant at sufferance Which of the following legal description methods has been used the longest in the US? - CORRECT 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 - CORRECT ANSWER-Accounting and Confidentiality A(n) ________ is one that conflicts with the ordinances that were enacted after the use commenced. - CORRECT ANSWER-Legal nonconforming use Which of the following is a valuable skill for a property manager to have? - CORRECT ANSWER-Knowledge of building systems Which of these statements about an independent contractor is false? - CORRECT 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? - CORRECT 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 - CORRECT ANSWER- Neighborhood Analysis
