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General RE Practice Exam #1 questions with
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The use of more than one appraisal method with different weights to each method describes __________ - correct answer ✔✔Reconciliation An offer is terminated by ______ - correct answer ✔✔Rejection by the offeree A valid contract would be unenforceable because of _____ - correct answer ✔✔The statute of limitations RESPA requirements include _______ - correct answer ✔✔The prohibition of a broker's receiving of a referral fee from a lender. The loan that would command the highest loan-to-value ratio would be for - correct answer ✔✔A single- family residence A home sells 2 days after your listing contract expires to a buyer to whom you showed the property. You may be able to command a commission under which clause in your listing contract? - correct answer ✔✔Holdover. A clause in the listing contract which allows that the broker earn his or her commission, for a set amount of days after the listing agreement has expired if a buyer that the broker showed the property to decides to buy the property after the listing agreement has ended, and if there is no other broker currently engaged by the seller. The owner of an interest in commonly held property wishes to dispose of the property, while the other owners do not want to do so. The owner will probably ______ - correct answer ✔✔Bring a suit to partition the monetary investment. Partition: A means by which people in an undesirable common relationship can free themselves of the relationship incidental to such common ownership.
An ad used a term that triggered full disclosure of loan terms. The ad stated _____ a. $10,000 down b. Payments lesser than rent c. Low down payment d. 8% APR - correct answer ✔✔a. $10,000 down Truth in lending act advertising rules are triggered if the amount of percentage of down payment, number of payments, period of repayment, or finance charges are included in any advertisement. A property valued at $72,000 has an assessed value of 50%. If the mill rate is 6 mills, what is the tax? - correct answer ✔✔$ $72,000 x 0.5 = $36,000 x 0.0006 = $ What is true of both special assessments and ad valorem taxes? - correct answer ✔✔Delinquent payment is grounds for foreclosure sale of the property. Which of the following approaches MOST reliably estimates the sales price of a single-family residence? a. Market data approach b. Sales comparison approach c. Cost approach d. Both 1 and 2 are correct - correct answer ✔✔d. Both 1 and 2 are correct A market data approach is also known as sales comparison approach. An assumable loan, whereby a lender releases the seller and substitutes a buyer as the party liable for the debt, would be known as ______ - correct answer ✔✔Novation
One common method for controlling the problems created by conflict of interest in dual representation, is _______ - correct answer ✔✔allowing a broker to designate separate salespeople within the company as legal representatives of each of the clients. Depreciation is calculated based on the __________ a. assessed valuation b. cost of the building only c. land d. land and cost of the building - correct answer ✔✔b. cost of the building only Land does not depreciate. When should the disclosing form for a loan be submitted to the buyer to review the loan? - correct answer ✔✔three days before closing The Clean Air Act _______ - correct answer ✔✔requires state plans to include land use and other controls necessary to achieve and maintain the federal ambient air quality standards. it does NOT explicitly define a national land use policy for protecting air quality. Would it be acceptable for a community manager to post a rule that says "children may not ride bikes on the sidewalk"? - correct answer ✔✔No, it would only be permissible for the rule to state that no one could ride on the sidewalk. Because they're creating a rule that "discriminates" against age. When an owner deposits funds with a third party as a prepayment or deposit for a specific purpose, such as payment for mortgage insurance, it can be deposited into a(n)________ a. trust account
b. escrow account c. operating account d. either a or b - correct answer ✔✔d. either a or b a trust account is identical to an escrow account when an owner deposits funds with a third part as a prepayment or deposit for a specific purpose. The state, via eminent domain, wants to take a diagonal strip of land that bisects Farmer Brown's farm. The farm will decrease far more than the per-acre value offered for the land taken. Farmer Brown should seek _________ a. an injunction b. severance damages c. exemplary damages d. nominal damages - correct answer ✔✔b. severance damages involves involuntary alienation which is an involuntary act of transferring property to another as through eminent domain. An owner may properly refuse to rent to a prospective tenant because the prospective tenant is _________ - correct answer ✔✔a drug addict with abusive behavior. Fair Housing: Drug addicts are not a protected class. If an owner has reason to believe the renter would be dangerous to others or the property, then he or she may choose not to rent to him or her. A broker suggests that the sellers sign a listing agreement that gives the broker's office sole permission to sell the property for a period of 120 days. The sellers want to be able to sell the property themselves without paying a commission. In this situation, the listing agreement that will BEST protect both parties' interest is a(n) __________ - correct answer ✔✔exclusive agency listing "A" purchased a commercial lot from "B" based on "B's" fraudulent representation as to lot size, zoning, and water connections. "A" cannon use the parcel purchased. What remedy should "A" seek? - correct answer ✔✔rescission
The increased value resulting form the consolidation of 2 adjacent lots into 1 larger lot is __________ - correct answer ✔✔Plottage A purchase contract that has not been signed by both parties by the acceptance deadline is __________
- correct answer ✔✔void The most favorable thing about a VA loan is that __________ - correct answer ✔✔VA loans gives the veteran favorable financing terms because the lender is protected from loss. The purpose of laws that provide for property to escheat to the state or county when a landowner dies with no will and no heirs ________ - correct answer ✔✔prevent property from being ownerless A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This permits the lender to __________ - correct answer ✔✔demand immediate payment of the entire note Which of the following events would automatically cancel a listing agreement? a. property owner's death b. listing agent's death c. death in seller's family d. property owner is unhappy with agent - correct answer ✔✔a. property owner's death A broker supplies the financing for a project to build condominiums with the stipulation that he has the exclusive right to sell the completed condos. Which of the following BEST describes this relationship? a. conflicted b. agency coupled with an interest c. dual agency d. illegal - correct answer ✔✔b. agency coupled with an interest Title is transferred with a ____________ - correct answer ✔✔Deed
While an appraisal is an estimate of the value of a property, a CMA is __________ - correct answer ✔✔an estimate of the most probable sales price in the current market What relationship implies a position of trust and confidence? a. fiduciary b. transaction brokerage c. confidential d. principal - correct answer ✔✔a. fiduciary A single agent ______ - correct answer ✔✔represents one party in a transaction. A __________ is not recorded - correct answer ✔✔purchase agreement A prescriptive easement arises in all of the following except __________ a. in the same manner as adverse possession or "squatters" rights b. when the owners of the dominant tenement make a certain use of servant tenement for a long enough period of time. c. through state law d. through the owner transferring title to the tenant - correct answer ✔✔d. through the owner transferring title to the tenant ____________ must be disclosed if they are known - correct answer ✔✔radon, asbestos, any environmental hazard Which of the following statements about mold is true? a. when mold is found, it is best to hire a certified mold specialist to test and remove it
Your sisters signs a contract and gives you $10,000 as earnest money on a home you have listed. It being Saturday, you put the money in your personal account until Monday to cover some unexpected expenses. On Monday, you pick up your commission check from another closing and transfer the full $10,000 into your trust account. What best describes your situation? - correct answer ✔✔your actions were improper, you commingled funds, and your license can be revoked. A landlord wishes to build a neighborhood grocery store on a busy street in an area zoned for residential use. Which of the following would not be used to obtain permission for this store? a. conditional use permit b. zoning variance c. building permit d. eminent domain - correct answer ✔✔d. eminent domain An environmental impact statement typically describes the effects of a proposed project on factors such as __________ - correct answer ✔✔public health and safety A competitive market analysis is MOST often used for ______________ - correct answer ✔✔setting a listing price Usury laws ________ - correct answer ✔✔protect the borrower An example of a fiduciary relationship is one which exists between the listing broker and ________ - correct answer ✔✔his or her client Zoning that requires that new structures match an existing architectural style is called ____________ - correct answer ✔✔aesthetic zoning Broker Steve ca act for his client as a general agent _________________ - correct answer ✔✔by written instruction
Broker Jane is working with Buyer Bob to purchase a home but has no signed agency agreement. Under the general law of agency, this is ____________ - correct answer ✔✔implied agency Ownership of common stock in a corporation gives - correct answer ✔✔an interest that is classified as personal property. The Clean Water Act allows that anyone interested in depositing dredged or fill material into "waters of the United States, including wetlands" ____________ - correct answer ✔✔must receive authorization for such activities. ______________ occurs when competing real estate companies agree to set standard sales commissions, fees, or management rates or if they attempt illegal tying arrangements. - correct answer ✔✔price fixing A counterproposal _________________ - correct answer ✔✔terminates the original offer
