Post License Course Exam (Barney Fletcher) New 2024 Version Best Studying Material, Exams of Nursing

Download Post License Course Exam (Barney Fletcher) New 2024 Version Best Studying Material and more Exams Nursing in PDF only on Docsity! Post License Course Exam (Barney Fletcher) New 2024 Version Best Studying Material with Questions from Actual Recent Exams Which of the following statements is most accurate regarding the remedy for a landlord whose tenant commits a non-material breach of the lease contract? Select one: a. The landlord could evict the tenant. b. The lease contract should specify the remedy for a non-material breach. c. There are no remedies for a non-material breach. d. The amount of rent charged would become subject to renegotiation. Feedback ----------- Correct Answer ----------- The correct answer is: The lease contract should specify the remedy for a non-material breach. Directing a borrower toward a subprime loan when that borrower did not need a subprime loan is an example of: Select one: a. Steering; b. Targeting; c. Redlining; d. Capping. ----------- Correct Answer ----------- a. Steering; The FREC and the Department handle administrative law and criminal violations are sent to the ______________ for prosecution. ---------- Correct Answer ---------- State Attorney As a sales associate under a transaction broker, you would work for: ---------- Correct Answer ---------- Customers. Sales associates and broker associates enjoy a special IRS classification as ______________. ---------- Correct Answer ---------- Statutory Independent Contractors All Florida real estate licenses expire biennially (every two years) on either: ---------- Correct Answer ---------- March 31st or September 30th. Which of the following documents would be considered part of the mortgage process under the Georgia Residential Mortgage Fraud Act? Select one: a. The Uniform Residential Mortgage Loan Application; b. Payroll stubs; c. Bank statements; d. All of the above. ----------- Correct Answer ----------- d. All of the above When people violate their ethical standards, they often try to explain that the action was not unethical, or at least was a lesser violation than what it might first appear to be, through a process called: Select one: a. Justification; b. Rationalization; c. Explanatiion; d. Normalization. ----------- Correct Answer ----------- b. Rationalization; Fred, a homeowner, gets behind on his mortgage payments. Seth targets Fred because he needs to sell his home quickly to avoid foreclosure. Seth promises to take over Fred's payments, but when the deed to the home is signed over, Seth rents the home, and never assumes the loan nor makes any payments. Seth is practicing: Select one: a. Equity stealing' b. Equity skimming; c. Equity scamming; d. Equity mortgaging. ----------- Correct Answer ----------- b. Equity skimming; Francis recognized a cash-back at closing scam. What should she do? Select one: a. Not interfere; this is not her concern; b. Inform only the licensees about the scheme; c. Call the lender immediately; d. Francis should offer to assume the negotiations with the seller. ----------- Correct Answer ----------- c. Call the lender immediately; A scammer might artificially inflate the value of a home in order to: Select one: a. Obtain a larger loan; b. Get cash back at closing c. Obtain a larger loan and/or to get cash back at closing d. Justify a higher fee for an appraiser ----------- Correct Answer ----------- c. Obtain a larger loan and/or to get cash back at closing When mortgage fraud occurs, if the borrower has no intention of ever repaying the mortgage, this would most likely involve: Select one: a. Fraud for profit; b. Fraud for property; c. Fraud for hire; d. Either fraud for profit or fraud for property. ----------- Correct Answer ----------- a. Fraud for profit; Predatory lenders tend to target: Select one: Select one: a. Title fraud; b. Mortgage fraud; c. Title withholding; d. Misrepresentation. ----------- Correct Answer ----------- a. Title fraud; Which of the following statements is the LEAST important determinant of whether a loan is suitable to a particular mortgage loan applicant: Select one: a. The borrower's likely future income; b. The borrower's financial reserves; c. The borrower's financial sophistication; d. The compensation to the mortgage loan originator. ----------- Correct Answer ----------- d. The compensation to the mortgage loan originator. The "throw away second:" Select one: a. Is typically recorded, but sellers are asked to sign a release at closing table; b. Has payments that are always made and are expected to be paid; c. Has three different contracts of sale; d. Is a scheme with 3 settlements sheets and commission on lower selling price. --------- -- Correct Answer ----------- A "throw away second" involves a recorded second mortgage, but the seller agrees to sign a release at the closing table and the funds are never advanced and the loan is never repaid. The correct answer is: Is typically recorded, but sellers are asked to sign a release at closing table;` A large law firm would most likely seek to lease: Select one: a. An executive suite; b. Open space; c. A traditional office space d. Class C properties ----------- Correct Answer ----------- The correct answer is: A traditional office space In an appraisal, what is the difference between a condition of sale adjustment and a market condition adjustment? Select one: a. Market conditions adjustments relate to whether the sale was an arm's length transaction where conditions of sale usually related to how long ago the sale occurred. b. Conditions of sale adjustments relate to whether the sale was an arm's length transaction where market conditions usually related to how long ago the sale occurred. c. There is no difference between the two. d. Conditions of sale relate to the type of property interest conveyed while market conditions relate to the financing of the property. ----------- Correct Answer ----------- Conditions of sale adjustments relate to whether the sale was an arm's length transaction where market conditions usually related to how long ago the sale occurred. The correct answer is: Conditions of sale adjustments relate to whether the sale was an arm's length transaction where market conditions usually related to how long ago the sale occurred. he formula used to calculate the value of a property under the income approach is: Select one: a. Potential gross income divided by capitalization rate = value. b. Effective gross income divided by capitalization rate = value. c. Net operating income divided by capitalization rate = value. d. Net operating income divided by potential gross income = value. Feedback ----------- Correct Answer ----------- The formula for determining the value under the income approach is net operating income divided by capitalization rate = value. The correct answer is: Net operating income divided by capitalization rate = value. For the years from 2000 through 2015, what was the highest percentage of home sales purchased by institutional investors? Select one: a. 12% b. 9.6% c. 8.25%. d. 7.5%. ----------- Correct Answer ----------- b. 9.6% A law firm which represents high-level corporate clients would most likely rent space in which of the following types of office buildings? Select one: a. Class A; b. Class B; c. Class C; d. Class D ----------- Correct Answer ----------- a. Class A; According to the International Council of Shopping Centers (the ICSC), what percentage of retail spending occurs within the walls of a physical store? Select one: a. 75%; b. 83%; c. 89%; d. 94% ----------- Correct Answer ----------- d. 94% Which of the following properties would most likely be considered an investment property rather than a commercial property: Select one: a. An office building; b. A warehouse; c. A shopping center; d. A single-family residence purchased by an institutional investor. ----------- Correct Answer ----------- d. A single-family residence purchased by an institutional investor. A retail center needs exterior paint. The cost of painting the structure is estimated at $20,000. An appraiser expects that this would add $25,000 to the value of the property. This would be an example of: Select one: a. Incurable functional obsolescence. b. Curable functional obsolescence. c. Incurable physical deterioration. d. Curable physical deterioration. ----------- Correct Answer ----------- d. Curable physical deterioration. Disadvantages to investors in Section 8 housing include: Select one: a. Bureaucratic requirements for establishing and operating Section 8 housing; b. Initial and annual inspection requirements; c. Eviction procedures that are more restrictive than most state laws; d. All of these choices. ----------- Correct Answer ----------- d. All of these choices. Which of the following types of retail centers would draw its customers from the population within 5-15 miles of the store? Select one: a. Strip center; b. Neighborhood center; c. Community center; d. Regional mall. ----------- Correct Answer ----------- d. Regional mall. Which of the following statements about the liquidity of an investment in small rental properties is most accurate? Select one: a. Small rental properties are highly liquid; b. Small rental properties are relatively more liquid than most other types of real estate; c. Small rental properties are not liquid at all; d. Small rental properties are relatively less liquid than most other types of real estate. -- --------- Correct Answer ----------- b. Small rental properties are relatively more liquid than most other types of real estate; If there is a year-end reconciliation clause in a percentage lease, when might the tenant be entitled to a rent refund of some amount? Select one: a. If the sales exceeded the breakpoint every month of the year. b. If the annual sales exceeded 12 times the monthly breakpoint. c. If sales exceeded the monthly breakpoint several times but total annual sales did not exceed the monthly breakpoint times 12. Which of the following statements is true regarding the Debt Yield Ratio that is NOT also true of the Debt Service Coverage Ratio? Select one: a. A higher ratio is better for the lender. b. The ratio is not affected by the interest rate or amortization period of the loan. c. The ratio can be an important consideration in underwriting the loan. d. The ratio is used more often for commercial loans than for residential loans. ----------- Correct Answer ----------- The correct answer is: The ratio is not affected by the interest rate or amortization period of the loan. The statement "the ratio is not affected by the interest rate or amortization period of the loan" is true of the Debt Yield Ratio but is not true of the Debt Service Coverage Ratio. Lower interest rates or longer amortization periods will reduce the annual debt service which would reduce the DSCR but will not affect the Debt Yield Ratio. A retail space includes 12,000 square feet of usable square feet and 15,000 square feet of rentable square feet. What is the load factor? Select one: a. 30%. b. 25%. c. 15%. d. 10%. Feedback ----------- Correct Answer ----------- Start with the rentable square footage of 15,000; divide that by the 12,000 square feet of usable square feet for a result of 1.25; subtract 1 for a result of 0.25, then multiply that by 100 for a result of 25%. The correct answer is: 25%. Question 19 Incorrect 0.00 points out of 1.00 Flag question Question text When a small business takes out a Section 504 loan, the business must up a down payment of at least: Select one: a. 25%. b. 20%. c. 15%. d. 10%. Feedback The minimum down payment for a Section 504 loan is 10%. The correct answer is: 10%. ----------- Correct Answer ----------- The minimum down payment for a Section 504 loan is 10%. The correct answer is: 10%. The monetary policy of the United States government is determined by: Select one: a. The President and the Congress. b. The Federal Reserve Board. c. The Department of the Treasury. d. All of the above. ----------- Correct Answer ----------- b. The Federal Reserve Board. Which of the following actions would reduce (or decrease the growth of) the money supply? Select one: a. Buying government securities and lowering the discount rate. b. Buying government securities and raising the discount rate. c. Selling government securities and lowering the discount rate. d. Selling government securities and raising the discount rate. ----------- Correct Answer ----------- d. Selling government securities and raising the discount rate. Why is a cash flow note also called a "soft second?" Select one: a. Because it is done without an intercreditor agreement. b. Because the loan payments are not required when the cash flow falls below a specified level. c. Because the loan is secured by the cash flow from the property, not by the property itself, and also because the loan is not recorded and is not a lien against the property. d. Because there is a subordination agreement in place. ----------- Correct Answer -------- --- Because the loan is secured by the cash flow from the property, not by the property itself, and also because the loan is not recorded and is not a lien against the property. The ratio that shows what percentage return the lender would earn if it had to foreclose against the property before the first payment was made is the: Select one: a. Operating ratio. b. Debt Service Coverage Ratio. c. Loan-to-value ratio. d. Debt Yield Ratio. ----------- Correct Answer ----------- d. Debt Yield Ratio. If the money supply grows too slowly, the most likely risk could be: Select one: a. Inflation. b. High interest rates. c. Disintermediation. d. None of the above. ----------- Correct Answer ----------- b. High interest rates. What is the benefit to a tenant of the non-disturbance clause in a lease? Select one: a. It gives the tenant some assurance that the tenant will not lose the lease if the property is foreclosed upon. b. It prevents the landlord from excessive on-site inspections. c. It prevents the property from going through a foreclosure. d. None of these choices. ----------- Correct Answer ----------- a. It gives the tenant some assurance that the tenant will not lose the lease if the property is foreclosed upon. A provision in a commercial loan that prohibits early repayment of the loan for some period of time is known as a(n): Select one: a. Interest guarantee. b. Lockout. c. Defeasance. d. Step-down. ----------- Correct Answer ----------- b. Lockout. If the money supply grows too quickly, the most likely risk could be: Select one: a. Inflation. b. Recession. c. High interest rates. d. Excessive unemployment. ----------- Correct Answer ----------- a. Inflation. Under Regulation Z, which of the following types of loan originator compensation would be considered to be based on the terms or conditions of the loan: Select one: a. A higher compensation if the applicant accepts a prepayment penalty clause. b. A higher compensation if the applicant has a credit score above 720. c. A higher compensation if the applicant accepts a prepayment penalty clause and/or has a credit score above 720. d. All of these choices would be considered to be compensation based on the terms or conditions of the loan. ----------- Correct Answer ----------- d. All of these choices would be considered to be compensation based on the terms or conditions of the loan. The finance charge, as computed under the Truth in Lending Act, would include each of the following, EXCEPT: Select one: a. Mortgage insurance premiums. b. Discount points. c. Appraisal fees. d. Loan origination fees. ----------- Correct Answer ----------- c. Appraisal fees. The new Loan Estimate Form combines what previous forms? Select one: a. The GFE and initial TIL. b. The GFE and HUD-1. c. The TIL and HUD-1. d. The GFE and Special Information Booklet. ----------- Correct Answer ----------- a. The GFE and initial TIL. a. A new mortgage used to finance the purchase of a duplex, which will include the personal residence of the buyer; b. A refinance of an existing first mortgage from the same lender; c. A home equity line of credit; d. A commercial loan. ----------- Correct Answer ----------- c. A home equity line of credit; If a mortgage broker charges higher fees to so that they can pay a referral fee to a real estate licensee, the borrower could sue the mortgage broker and obtain a judgement for: Select one: a. Three times the amount of the extra fee. b. Three times the amount of the total fee. c. Twice the amount of the extra fee. d. Twice the amount of the total fee. ----------- Correct Answer ----------- If a mortgage broker charges higher fees to so that they can pay a referral fee to a real estate licensee, the borrower could sue the mortgage broker and obtain a judgement for up to three times the amount of the total fee, not just the overcharge. The correct answer is: Three times the amount of the total fee. Under the Truth in Lending Act, which of the following phrases in an advertisement would be considered a "trigger term" that would require additional disclosures in the ad? Select one: a. "Only a 5% down payment is required;" b. "FHA loans available;" c. "No down payment required;" d. "No closing costs." Feedback A specific down payment such as 5% would be a trigger term under TILA However, the statement "no down payment" is not a trigger term. The correct answer is: "Only a 5% down payment is required;" ----------- Correct Answer ----------- "Only a 5% down payment is required;" When making the disclosures required under the safe harbor provision of the Regulation Z prohibition against steering, the loan originator would be required to consider loan options from all creditors with which the originator regularly does business: Select one: a. In all cases. b. If the loan originator regularly does business with less than three creditors. c. If the loan originator regularly does business with less than five creditors. d. In no cases. ----------- Correct Answer ----------- b. If the loan originator regularly does business with less than three creditors. One of the criteria for a loan being subject to the Truth in Lending Act is that the credit is subject to a finance charge or is payable by a written agreement in more than _____ installments. Select one: a. 4. b. 6. c. 12. d. 24. ----------- Correct Answer ----------- 4` Which of the following would be considered a "Settlement Service Provider?" Select one: a. A mortgage loan originator who takes an application for a mortgage loan. b. A licensed real estate agent who is representing the seller. c. The individual who performed the title search. d. All of these choices. ----------- Correct Answer ----------- All of these choices. Which of the following statements is true regarding referrals of consumers to an affiliated company? Select one: a. The customer or client must be informed that they are not required to use the services of the affiliated entity and are free to use other companies b. The only thing of value that is received from the arrangement (other than reasonable payments for goods, facilities or services actually furnished) is a return on the ownership interest. c. Both of these statements. d. None of these statements. ----------- Correct Answer ----------- c. Both of these statements. The loan amount in a mortgage loan could increase if: Select one: a. It is an adjustable rate mortgage. b. It has a negative amortization feature. c. It has a balloon payment. d. Any of these choices. ----------- Correct Answer ----------- b. It has a negative amortization feature. One of the loan options that must be disclosed when using the safe harbor provisions of the Regulation Z prohibition against steering is a loan with the lowest interest rate without a number of unfavorable factors. One of these factors relates to a balloon payment. Which of the following statements is correct regarding loans with balloon payments which are presented as an option for this disclosure category: Select one: a. The loan cannot have a balloon payment at any time. b. The loan cannot have a balloon payment in the first 10 years of the loan. c. The loan cannot have a balloon payment in the first 7 years of the loan. d. The loan cannot have a balloon payment in the first 5 years of the loan. ----------- Correct Answer ----------- The correct answer is: The loan cannot have a balloon payment in the first 7 years of the loan. What would be the consequences of a loan originator's failure to comply with the safe harbor provisions of the Regulation prohibition against steering: Select one: a. The loan originator would likely face fines and/or suspension or revocation of his or her mortgage loan originator license or registration. b. The loan originator would be deemed to have violated the prohibition against steering. c. The loan originator would be guilty of a misdemeanor. d. The loan originator would lose the protection of having been deemed to have complied with the prohibition against steering. Feedback ----------- Correct Answer ----------- The correct answer is: The loan originator would lose the protection of having been deemed to have complied with the prohibition against steering. The Loan Estimate Form must be delivered to or mailed to the consumer no later than the third business day after: Select one: a. Initial substantive contact. b. Consummation of the loan. c. The consumer's acceptance of the proposed loan. d. Receipt of the application. ----------- Correct Answer ----------- d. Receipt of the application. Which of the following practices are recommended when establishing a Marketing Services Agreement (MSA)? Select one: a. Entering into an MSA with an affiliated company. b. Entering into an MSA with a month-to-month term. c. Including fees for allowing access to the firm's sales meetings. d. None of the above. ----------- Correct Answer ----------- d. None of the above. What is the CFPB's primary concern about Marketing Services Agreements (MSAs)? Select one: a. These MSAs are flatly prohibited. b. Many of these agreements are, in effect, a way to attempt to circumvent the prohibition against kickbacks and referral fees. c. These agreements need the prior approval of the CFPB, which often does not occur. d. None of these choices. ----------- Correct Answer ----------- b. Many of these agreements are, in effect, a way to attempt to circumvent the prohibition against kickbacks and referral fees. Shortly after a loan is consummated an error was discovered in the Closing Disclosure that changed the amount paid by the borrower. The creditor would have _____ to deliver or mail a revised Closing Disclosure. Select one: a. 30 days from the borrower's receipt of the Closing Disclosure. What is the most important part of your "brand" in your real estate career ----------- Correct Answer ----------- Your reputation When a real estate licensee focuses his or her prospecting efforts on a particular neighborhood or type of buyer is the licensee's ----------- Correct Answer ----------- Target market As a real estate agent your primary product is ----------- Correct Answer ----------- Your contacts When the number of listings by a particular firm is divided by the total number of listings in that neighborhood, the result is the ----------- Correct Answer ----------- Market share Which of the following is the best way to ask for a referral ----------- Correct Answer ------ ----- Who do you know who might be looking to buy or sell a house The process of ensuring that the interior and exterior of a home are as attractive as possible is known as ----------- Correct Answer ----------- Staging The types of media used to generate new business is known as the ----------- Correct Answer ----------- Promotional mix When doing the initial tour of a house before making a listing presentation, one goal should be to ----------- Correct Answer ----------- Get the sellers to view the property from the standpoint of a typical buyers rather than a seller A buyer has made an offer on a seller's house. The offer gives the buyer 10 days to have a licensed home inspection of the property and to cancel the offer if the inspection reveals significant necessary repairs unknown to the buyer. This is an example of -------- --- Correct Answer ----------- Contingency clause Which of the following types of sales of a personal residence would require a third-party approval before the sale could be closed ----------- Correct Answer ----------- A bankruptcy, a divorce, or a short sale What is the most important factor in qualifying a prospective buyer ----------- Correct Answer ----------- Whether the prospect is financially qualified to purchase a home In deterring whether or not to issue a pre-approval letter, the lender would consider ------ ----- Correct Answer ----------- Principal, interest, property taxes, and insurance What is the purpose of using an assumptive close ----------- Correct Answer ----------- To make it easier for the buyer to say yes If the buyer and seller agreed that the buyer would purchase the patio furniture as part of the contract, this would appear in which section of the Purchase and Sale agreement ----------- Correct Answer ----------- Special Stipulations A loan point is ----------- Correct Answer ----------- One percent of the loan amount Assuming the buyers ride in your car, the time spent in the car can be put in good use by ----------- Correct Answer ----------- Discussing the positive features of the neighborhood what is the biggest difference between traditional telemarketing and circle prospecting? ----------- Correct Answer ----------- circle prospecting requires. follow-up under what circumstance should a real estate licensee use a 1-step listing presentation ----------- Correct Answer ----------- if the homeowner insists on it what is the most common reason why new licensees hate making cold calls on the telephone ----------- Correct Answer ----------- fear of rejection which of the following contact methods is most likely to get people to remember you ----- ------ Correct Answer ----------- send a handwritten thank you note after a phone conversation when answering a phone call, which of the following choices would be a key objective -- --------- Correct Answer ----------- to not only give information, but to get information from the caller as well what type of software is designed specifically to avoid "one and done" prospecting ------- ---- Correct Answer ----------- customer relationship management (CRM) when trying to get a listing from a seller whose previous listing was expired, which of the following choices are recommended to solicit a listing contract from that seller ----------- Correct Answer ----------- provide a free service, such as analysis of current market conditions situations where on party represents another party ----------- Correct Answer ----------- law of agency the laws regarding agency come from what three sources in the US ----------- Correct Answer ----------- common law, statutory law, and administrative or regulatory law stems from British laws which applied to the colonies before the Revolutionary War (precedents) ----------- Correct Answer ----------- Common law laws passed by the state legislature or the Congress and signed by the governor. -------- --- Correct Answer ----------- statutory laws refers to the rules and regulations adopted by various regulatory bodies ----------- Correct Answer ----------- Administrative or regulatory law the person who hires the agent to represent them in a transaction ----------- Correct Answer ----------- principal the person hired to represent the principal ----------- Correct Answer ----------- agent in real estate practice, the ______ is considered the agent ----------- Correct Answer ----- ------ broker represents the principal in all aspects of the principal's dealings, ----------- Correct Answer ----------- universal agent less authority than a universal agent but may represent the principal in an ongoing series of continuous events, usually in one general field of endeavor. In real estate, property managers ----------- Correct Answer ----------- general agent represents the principal in one specific transaction. ----------- Correct Answer ----------- special agent acts as agent for an agent and has the same duties and obligations as the agent --------- -- Correct Answer ----------- subagent a position of trust and must put the interest of his client (Steve) above those of all others, including and especially those of himself. ----------- Correct Answer ----------- fiduciary obligations This means that the agent is required to act in the best interest of the client and must not put anyone else's interests ahead of those of the client. ----------- Correct Answer ---- ------- loyalty Agents are only required to follow the ________instructions of their client. ----------- Correct Answer ----------- lawful In simple terms, this means that the licensee must perform the duties of the agent as would a competent real estate professional and without any negligence. ----------- Correct Answer ----------- reasonable care and diligence If you are showing property you are listing and tell a prospective buyer that "...this property is the best for you," the relationship created could be interpreted as: ----------- Correct Answer ----------- implied agency Act was designed to ensure that persons of any race could sign and enforce contracts and could buy and sell and lease property. ----------- Correct Answer ----------- Civil Rights act of 1866 The Sherman Antitrust Act prohibits each of the following activities, EXCEPT: Select one: a. Commingling. b. Price fixing. c. Boycotts. d. Tying arrangements ----------- Correct Answer ----------- a. commingling A listing agreement may be terminated by: Select one: a. The seller b. The buyer's broker c. The salesperson that obtained the listing d. Death of the salesperson ----------- Correct Answer ----------- a. the seller Brokers must hold their client's funds in a/an: Select one: a. Office safe. b. Savings account. c. Trust or escrow account. d. Special account managed by the Board of Realtors. ----------- Correct Answer ---------- - c. trust or escrow account A broker has the buyer's earnest money deposit deposited in an escrow account. The amount of the deposit exceeds the amount of the broker's commission for the sale. The broker may remove his commission on this sale ONLY: Select one: a. When the buyer moves into the property. b. When the seller moves out of the property. c. When the closing is completed. d. Whenever the seller says it is ok to do so. ----------- Correct Answer ----------- c. When the closing is completed. When legal dual agency exists, the agent is required to maintain the confidences of: Select one: a. The buyer only. b. Both the seller and the buyer. c. The seller only. d. Neither the buyer nor the seller. ----------- Correct Answer ----------- b. Both the seller and the buyer. Fred and Wilma gave a listing contract to Broker Bob to sell their home and both signed the contract. Prior to receiving any offers, Fred died in an unfortunate bowling accident. What is the effect of Fred's death on the listing contract? Select one: a. The contract remains in effect. b. The contract would be automatically terminated by law. c. The contract would be in default. d. The contract would only be enforceable in a community property state. ----------- Correct Answer ----------- a. The contract remains in effect. Funds in the escrow account may be dispersed for any of the following reasons EXCEPT when: Select one: a. All principals to the transaction agree in writing to the disposition. b. A court orders disbursement of the funds. c. The seller demands forfeiture of the earnest money deposit. d. The transaction is consummated. ----------- Correct Answer ----------- c. The seller demands forfeiture of the earnest money deposit. The death of a seller would terminate which of the following contracts? Select one: a. A purchase contract. b. A listing contract. c. Both of the above. d. None of the above. ----------- Correct Answer ----------- b. A listing contract A broker could return the buyer's deposit from the escrow account back to the buyer in which of the following cases? Select one: a. The offer expired without any acceptance by the seller. b. The seller rejected the buyer's offer. c. The transaction was cancelled because of the buyer's inability to meet the financing contingency and the seller consented to returning the deposit. d. Each of the above. ----------- Correct Answer ----------- d. Each of the above. The maximum fine for an individual for a violation of the Sherman Antitrust Act is: Select one: a. $0, since individuals are not subject to the Act - only companies are subject to the Act. b. $250,000. c. $500,000. d. $1,000,000 ----------- Correct Answer ----------- d. $1,000,000 Who is required to comply with the Civil Rights Act of 1866? ----------- Correct Answer --- -------- d. Everyone, without exception. Larry Licensee runs an ad for one of his listings. The ad contains the phrase "nearby St. Andrew Roman Catholic Church." This would be considered: ----------- Correct Answer -- --------- a. Acceptable advertising if true; A disparate impact case has gone to trial. The plaintiffs have shown that a particular policy has had a disparate impact on a particular protected class. However, the defendant has shown that the policy serves a legitimate business necessity. What will be the next step? ----------- Correct Answer ----------- c. The plaintiff will have to show that other policies might have served the same business necessity with less disparate impact on protected classes; Adeline is selling her own home as a For Sale By Owner (FSBO). On Sunday, a full price offer is made by an Asian couple. Adeline refuses the offer made by the couple. On Monday, Adeline accepts an offer, $4000 below the asking price from a Caucasian family. Has Adeline violated any laws and if so which one? ----------- Correct Answer ----- ------ Adeline has violated the Civil Rights Act of 1866; One of the recent emerging issues in Fair Housing complaints has been the issue of excluding applicants on the basis of having a record of criminal convictions. Why is this the case? a. There is a new protected class of people with criminal convictions; b. African-Americans and Latinos have a disproportionately higher rate of having criminal conviction records than Caucasians. c. There is an increasing interest in prison reform; d. Due to provisions of the Dodd-Frank Act. ----------- Correct Answer ----------- b. African-Americans and Latinos have a disproportionately higher rate of having criminal conviction records than Caucasians. The purpose of the Fair Housing Amendments Act of 1988 was to: Select one: a. Add two new protected classes; b. Repeal the Civil Rights Act of 1866; c. Remove two protected classes; d. Establish complaint procedures. ----------- Correct Answer ----------- a. Add two new protected classes; Recent years have seen increasing complaints centering on fair housing problems having to do with REO properties. What is typically the complaint? Select one: a. Excessive numbers of foreclosures in minority neighborhoods; b. Failure to prevent squatters from taking over the property; c. REOs located in African-American and Latino neighborhoods receive less upkeep and maintenance than those in Caucasian neighborhoods; d. It is too difficult to sell REO properties in minority neighborhoods. ----------- Correct Answer ----------- c. REOs located in African-American and Latino neighborhoods receive less upkeep and maintenance than those in Caucasian neighborhoods; Select one: a. Discrimination on the basis of race only; b. Discrimination on the basis of color only; c. Discrimination on the basis of both race and color; d. Not to be a violation of the Fair Housing Act. ----------- Correct Answer ----------- b. Discrimination on the basis of color only; Each of the following would be considered a "person with a disability," EXCEPT: Select one: a. An individual who currently uses illegal drugs; b. A person with a past history of mental impairment; c. A person with a learning disability; d. A person who has difficulty walking. ----------- Correct Answer ----------- a. An individual who currently uses illegal drugs; If a landlord or property manager treats Caucasian tenants better than Latino tenants, that would be an example of: Select one: a. Overt evidence of disparate treatment; b. Comparative evidence of disparate treatment; c. Evidence of disparate impact; d. Both A and B above. Feedback ----------- Correct Answer ----------- b. Comparative evidence of disparate treatment; A fair housing complaint on the basis of excluding those with a record of criminal conviction may be based on allegations of: Select one: a. Disparate impact; b. Disparate treatment; c. Either of the above; d. None of the above. ----------- Correct Answer ----------- Either of the above; Information gathered because of the Home Mortgage Disclosure Act would most likely be used for which type of discrimination lawsuit? Select one: a. Overt evidence of disparate treatment; b. Comparative evidence of the disparate treatment; c. Either of the above; d. Evidence of disparate impact. ----------- Correct Answer ----------- d. Evidence of disparate impact. If the Administrative Law Judge finds that a landlord had violated the Fair Housing Act in the current case, and has been found guilty of two other violations in the past seven years in other cases, the respondent could be ordered to pay a maximum fine of approximately: Select one: a. $16,000; b. $20,000; c. $50,000; d. $100,000. ----------- Correct Answer ----------- A person who had previously violated the Act two or more times in the past seven years could be fined up to $100,554. In what circumstance is the owner required to pay any costs associated with a reasonable accommodation? Select one: a. In no cases; b. In all cases; c. Only if the owner receives operating subsidies from the government, such as Section 8 vouchers; d. Only if the property was built after 1991. ----------- Correct Answer ----------- b. In all cases; Recent years have seen increasing complaints centering on fair housing problems having to do with REO properties. What is typically the complaint? Select one: a. Excessive numbers of foreclosures in minority neighborhoods; b. Failure to prevent squatters from taking over the property; c. REOs located in African-American and Latino neighborhoods receive less upkeep and maintenance than those in Caucasian neighborhoods; d. It is too difficult to sell REO properties in minority neighborhoods. ----------- Correct Answer ----------- c. REOs located in African-American and Latino neighborhoods receive less upkeep and maintenance than those in Caucasian neighborhoods; What is the biggest difference between a lawsuit regarding a disparate impact lawsuit for discrimination and a disparate treatment lawsuit? Select one: a. The plaintiff in a disparate impact case does not have to prove a discriminatory intent; b. The plaintiff in a disparate treatment case does not have to prove a discriminatory intent; c. Disparate treatment cases are generally more complicated than disparate impact cases; d. Disparate impact cases are easier to win than disparate treatment cases. ----------- Correct Answer ----------- The plaintiff in a disparate impact case does not have to prove a discriminatory intent; When a tenant has been granted permissions to make a reasonable modification, the tenant is generally expected to restore the property to its original condition if: Select one: a. Only if the modification is made to the exterior of the property; b. Only if the modification is made to the interior of the property; c. In all cases; d. In no cases. ----------- Correct Answer ----------- b. Only if the modification is made to the interior of the property; An owner of a single-family home may sell or rent it without being subject to the Fair Housing Act as long as he or she does not use the services of a licensed broker and he or she: Select one: a. Does not own more than three houses at one time; b. Does not own more than four houses at one time; c. Has never owned more than three houses; d. Is not a licensee. ----------- Correct Answer ----------- a. Does not own more than three houses at one time; Oak Gardens is a luxury apartment complex that has a gym open to its residents. Which of the following policies regarding the gym would most likely be found to be enforceable by the courts? Select one: a. No children below the age of 14 may enter the gym. b. No children below the age of 18 may enter the gym. c. No children below the age of 14 may enter the gym without being supervised by a parent or other adult relative. d. No children below the age of 14 may enter the gym without being supervised by a responsible adult. ----------- Correct Answer ----------- No children below the age of 14 may enter the gym without being supervised by a responsible adult. What is the first step in a successful disparate impact fair housing complaint based on criminal convictions? Select one: a. To show an intent to discriminate. b. To show that the policy does not have a legitimate, necessary business purpose; c. To show that a different policy could avoid the disparate impact; d. To show that the burden of the criminal conviction policy puts a heavier burden on members of a protected class. ----------- Correct Answer ----------- d. To show that the burden of the criminal conviction policy puts a heavier burden on members of a protected class. In a fair housing investigation, "testers" are most often used to find: Select one: a. Overt evidence of disparate treatment; b. Comparative evidence of disparate treatment; c. Evidence of disparate impact; d. Both A and B above. ----------- Correct Answer ----------- b. Comparative evidence of disparate treatment; When must the owner of an apartment complex grant a reasonable accommodation to a disabled tenant? A couple has rented a one-bedroom apartment. After a new baby arrived, the landlord filed an eviction notice on the couple because the landlord's policy is that the occupancy limit is two people per bedroom. Which of the following statements is the most likely result of a fair housing lawsuit filed by the tenants? Select one: a. The eviction would likely be upheld due to the HUD Keating Memo which suggests occupancy limits of 2 persons per bedroom. b. The eviction would likely be overturned because of the age of the child. c. The eviction would likely be upheld if the occupancy limit was clearly disclosed in the rental agreement or lease. d. The eviction would be overturned as it is unconstitutional. ----------- Correct Answer --- -------- b. The eviction would likely be overturned because of the age of the child. Which of the following statements is/are true regarding the addition of sexual orientation and the gender identity as members of a protected class? Select one: a. It is based on a Supreme Court decision and a Presidential Executive Order; b. It is based on the protected class of sex; c. Both of the above; d. None of the above. ----------- Correct Answer ----------- c. Both of the above; The burden of proof falls on the plaintiff in which of the following aspects of a disparate impact case? I. Proving that the policy has a disparate impact; II. Proving that the policy serves a business necessity. III. Proving that an alternative policy could achieve the business necessity without a disparate impact Select one: a. I only; b. I & II; c. I & III; d. II & III. ----------- Correct Answer ----------- c. I & III; A young couple comes into a Georgia real estate brokerage office and tells an agent that they are looking for a home in a particular price range. Both spouses are 25 years old. The agent who greeted them at the door tells them that the firm normally doesn't work with people of their age group, but in this case the agent will make an exception. This scenario is an example of: Select one: a. Overt evidence of disparate treatment; b. Comparative evidence of disparate treatment; c. Evidence of disparate impact; d. Both A and B above. ----------- Correct Answer ----------- Overt evidence of disparate treatment; Which of the following protected classes were added in the Fair Housing Amendments Act of 1988? Select one: a. Disability; b. Familial status; c. Both of the above; d. None of the above. ----------- Correct Answer ----------- c. Both of the above; Larry Licensee runs an ad for one of his listings. The ad contains the phrase "nearby St. Andrew Roman Catholic Church." This would be considered: Select one: a. Acceptable advertising if true; b. A violation of the separation of church and state; c. A violation of the Civil Rights Act of 1866; d. The use of a "trigger term" under the Fair Housing Act of 1968. ----------- Correct Answer ----------- d. The use of a "trigger term" under the Fair Housing Act of 1968. When HUD sends a complaint to a respondent, that respondent has how many days to submit an answer to the complaint? Select one: a. 5 days; b. 10 days; c. 15 days; d. 30 days; ----------- Correct Answer ----------- b. 10 days; If a seller is held liable for the actions of a real estate licensee representing that seller, that would be an example of: Select one: a. Vicarious liability; b. Indirect liability; c. Subsidiary liability; d. Employment liability. ----------- Correct Answer ----------- a. Vicarious liability; What is the next step if a lawsuit shows conclusive evidence that a particular policy of a lender or municipal government has had a disparate impact on a protected class? Select one: a. The judge then determines the monetary damages to be paid to the plaintiffs. b. The case is then referred to HUD or the DOJ for criminal prosecution; c. The plaintiff will then have to show that the policy is illegal; d. The defendant will then have to show that the policy serves some business necessity ----------- Correct Answer ----------- d. The defendant will then have to show that the policy serves some business necessity A disabled tenant makes a request for a reasonable accommodation which the property owner believes to be unreasonable. What further obligation does the owner have to the tenant at that point? Select one: a. To investigate the possibility of a different accommodation that would achieve the same objective but create less burden for the property owner; b. To submit to mediation; c. To submit the request to a court for further consideration; d. None whatsoever. Feedback ----------- Correct Answer ----------- a. To investigate the possibility of a different accommodation that would achieve the same objective but create less burden for the property owner; In today's economy, which of the following factors have most frequently been involved in fair housing complaints against insurance companies? Select one: a. Insurance companies have denied coverage or charged higher premiums to property owners who accept housing choice vouchers; b. Connecticut law which requires property owners to accept housing choice vouchers; c. Both of the above; d. None of the above. ----------- Correct Answer ----------- c. Both of the above; Which of the following words or phrases in an advertisement would be considered a violation of the Fair Housing Act? Select one: a. Walking distance to public transit; b. Exclusive neighborhood; c. Desirable neighborhood; d. Mother-in-law suite. ----------- Correct Answer ----------- b. Exclusive neighborhood; In 1968 the Supreme court ruled in the Jones vs. Mayer Co. case. The courts' decision upheld the law which provides protection on the basis of: Select one: a. Sexual discrimination; b. Racial discrimination; c. Discrimination on the basis of national origin d. Religious discrimination ----------- Correct Answer ----------- b. Racial discrimination; Which of the following phrases in a rental advertisement would be deemed discriminatory against the disabled? Select one: a. Attractive independent living; b. Walking distance to shopping; c. Accessible for the disabled; d. None of the above. ----------- Correct Answer ----------- a. Attractive independent living Adeline is selling her own home as a For Sale By Owner (FSBO). On Sunday, a full price offer is made by an Asian couple. Adeline refuses the offer made by the couple. On Monday, Adeline accepts an offer, $4000 below the asking price from a Caucasian family. Has Adeline violated any laws and if so which one? Select one: c. Under no circumstances; d. As long as she does not sell more than one such property in any two-year period. ----- ------ Correct Answer ----------- d. As long as she does not sell more than one such property in any two-year period. What determines whether a person is a member of the familial status protected class? Select one: a. Whether a couple is married; b. Whether a person has (or will soon have) custody of a child under the age of 18; c. Whether the household includes at least three people; d. All of the above. ----------- Correct Answer ----------- b. Whether a person has (or will soon have) custody of a child under the age of 18; In what circumstance is the owner required to pay any costs associated with a reasonable accommodation? Select one: a. In no cases; b. In all cases; c. Only if the owner receives operating subsidies from the government, such as Section 8 vouchers; d. Only if the property was built after 1991. ----------- Correct Answer ----------- b. In all cases; Which of the following statements is/are true regarding the addition of sexual orientation and the gender identity as members of a protected class? Select one: a. It is based on a Supreme Court decision and a Presidential Executive Order; b. It is based on the protected class of sex; c. Both of the above; d. None of the above. ----------- Correct Answer ----------- c. Both of the above; A fair housing complaint on the basis of excluding those with a record of criminal conviction may be based on allegations of: Select one: a. Disparate impact; b. Disparate treatment; c. Either of the above; d. None of the above. ----------- Correct Answer ----------- c. Either of the above; A lawsuit has been filed alleging discrimination in housing against a person based on a disability. The defendant has argued that the plaintiff is not disabled under the definition of a disability in the Fair Housing Act. The court considered this argument and issued an order stating that the individual is indeed disabled under the definition of a disability in the Act. This court order is an example of: Select one: a. Injunctive relief; b. Punitive relief; c. Consequential relief; d. Declaratory relief. ----------- Correct Answer ----------- d. Declaratory relief. Which of the following choices would be an example of a member of the "familial status" protected class under the Fair Housing Amendments Act? Select one: a. Any married couple; b. A single mother with a 19-year old child; c. A married couple with two grown children; d. A pregnant woman. ----------- Correct Answer ----------- d. A pregnant woman. If a landlord or property manager treats Caucasian tenants better than Latino tenants, that would be an example of: Select one: a. Overt evidence of disparate treatment; b. Comparative evidence of disparate treatment; c. Evidence of disparate impact; d. Both A and B above. ----------- Correct Answer ----------- b. Comparative evidence of disparate treatment; One of the recommended fair housing practices is that real estate brokerage firms should review and evaluate the location of homes shown and sold. What is the fair housing purpose for doing this? Select one: a. To determine if steering is going on; b. To comply with the requirement to report this data to the federal government; c. Both of the above; d. None of the above. Feedback ----------- Correct Answer ----------- a. To determine if steering is going on; Information gathered because of the Home Mortgage Disclosure Act would most likely be used for which type of discrimination lawsuit? Select one: a. Overt evidence of disparate treatment; b. Comparative evidence of the disparate treatment; c. Either of the above; d. Evidence of disparate impact. Feedback ----------- Correct Answer ----------- d. Evidence of disparate impact. What is the biggest difference between a lawsuit regarding a disparate impact lawsuit for discrimination and a disparate treatment lawsuit? Select one: a. The plaintiff in a disparate impact case does not have to prove a discriminatory intent; b. The plaintiff in a disparate treatment case does not have to prove a discriminatory intent; c. Disparate treatment cases are generally more complicated than disparate impact cases; d. Disparate impact cases are easier to win than disparate treatment cases. ----------- Correct Answer ----------- a. The plaintiff in a disparate impact case does not have to prove a discriminatory intent; The concept of "preying on the powerless" is seen most vividly in: Select one: a. Fraud for profit; b. Subprime loans; c. Property flipping; d. Silent seconds. ----------- Correct Answer ----------- b. Subprime loans; An unethical loan originator directs his marketing efforts at finding poor or elderly customers who are not sophisticated. This would be an example of: Select one: a. Redlining; b. Capping; c. Steering; d. Targeting. Feedback ----------- Correct Answer ----------- d. Targeting. One of the most common forms of Mortgage Fraud in the US. is equity skimming. It includes all of the following, EXCEPT: Select one: a. Homeowners who are behind on payments being targeted by criminals; b. Homeowners facing foreclosure that need to sell their homes quickly c. A promise made by skimmer that will take over payments, but never pays; d. Homeowners buying less house than they can afford ----------- Correct Answer --------- -- Equity skimming involves getting a homeowner to sign over his or her current home, not buying a new home. The correct answer is: Homeowners buying less house than they can afford _____ is the process of attempting to make money earned illegally appear to be legitimate. Select one: a. Money laundering; b. Misrepresentation; c. Duress; d. Flipping. ----------- Correct Answer ----------- a. Money laundering; If a lender advertised a loan with an exceptionally low teaser rate without disclosing that the rate only applies for the first month of the loan, the advertisement: Select one: a. Would be legal, but unethical as bait and switch advertising; b. Would be both illegal and unethical as bait and switch advertising; The correct answer is: The transaction might involve a "silent second;" The "ability to repay" test of the Dodd-Frank Act was designed to address: Select one: a. The foreclosure crisis; b. Abuses in the subprime mortgage market; c. High interest rates; d. Excess competition. ----------- Correct Answer ----------- b. Abuses in the subprime mortgage market; Charlie is paid $10,000 to pretend to be the purchaser of a home. He fills out the loan application and attends the closing, but the property is actually owned by someone else. Charlie has acted as a: Select one: a. Straw buyer; b. Property flipper; c. Holder of a throw-away second; d. Intermediary buyer. ----------- Correct Answer ----------- a. Straw buyer; The practice of purchasing a home not from any rational economic analysis but from purely speculative expectations regarding future appreciation relates to which of the following theories: Select one: a. Greater Fool Theory; b. Hot Potato Theory; c. Constant Appreciation Theory; d. Rapid Appreciation Theory; Feedback ----------- Correct Answer ----------- The greater fool theory is expressed by the idea that there will always be some fool willing to pay an even higher price later. It is based on a speculative fever rather than a rational economic analysis. The correct answer is: Greater Fool Theory; The Georgia Residential Mortgage Fraud Act applies to what type of residential properties? Select one: a. Single-family residences only; b. 1-2 unit residential properties only; c. 1-3 unit residential properties only; d. 1-4 unit residential properties. ----------- Correct Answer ----------- d. 1-4 unit residential properties. An individual pays someone to pose as a home buyer, using their personal information and credit score to purchase a property. The scammers then take over the title and mortgage. The mortgage lender thinks they are loaning money to the person posing as the home buyer, when in actuality, the home will be owned by someone else. This fraudulent activity involves a _____ buyer. Select one: a. Straw; b. First time; c. Subprime; d. Silent. ----------- Correct Answer ----------- a. Straw; Which of the following statements best defines the practice of "steering" in originating mortgage loans: Select one: a. Refusal to originate loans in geographic areas which are predominantly populated by minority groups; b. Directing borrowers to loans which offer higher compensation to the loan originator without regard to the suitability to the borrower; c. Directing marketing efforts to poor, elderly or otherwise unsophisticated borrowers so as to take advantage of them; d. Charging excessive fees. ----------- Correct Answer ----------- Steering is the practice of directing borrowers to loans which offer higher compensation to the MLO (such as subprime loans) without regard to suitability. The correct answer is: Directing borrowers to loans which offer higher compensation to the loan originator without regard to the suitability to the borrower; The subprime market includes: Select one: a. Predatory lending practices least visible in the subprime market; b. Respectable sub prime lenders serving no important social function; c. Predatory lenders that target elderly offering loan terms to drain equity; d. Predatory lenders take advantage of highly-educated home buyers. ----------- Correct Answer ----------- Sadly, the subprime market includes a number of predatory lenders that target the elderly. The correct answer is: Predatory lenders that target elderly offering loan terms to drain equity; Which of the following choices is the most accurate definition of the term "replacement costs?" Select one: a. Replacement costs are based on the labor costs, material costs, administrative costs and profit allowance required to construct a building. b. Replacement costs are the costs of building an exact duplicate of an existing structure. c. Replacement costs are the costs of building a building that would serve the same purpose as the existing structure. d. Replacement costs are computed by totaling the installed costs of each component part of the exiting structure. ----------- Correct Answer ----------- c. Replacement costs are the costs of building a building that would serve the same purpose as the existing structure. Which of the following items NOT would be tax deductible on a small rental property? Select one: a. Property taxes; b. Depreciation; c. Special Assessments related to the installation of a sidewalk in the neighborhood; d. Operating costs ----------- Correct Answer ----------- c. Special Assessments related to the installation of a sidewalk in the neighborhood; Which type of buyer of a single family residence would be LEAST likely to "fall in love" with a property? Select one: a. A first-time buyer; b. A person who is buying a house as a rental property; c. A person who is moving to the area due to a job transfer; d. A person who is buying a vacation home. ----------- Correct Answer ----------- b. A person who is buying a house as a rental property; Most individuals who purchase a rental house have what expectations about their investment? Select one: a. Tax benefits during the holding period and appreciation in the future; b. High levels of positive cash flow; c. Tenants who will buy the house after a stated period of years; d. All of the above. ----------- Correct Answer ----------- a. Tax benefits during the holding period and appreciation in the future; The largest of the industrial buildings, often with ceilings of 50 feet or more are: Select one: a. Warehouses; b. Distribution centers; c. Light manufacturing d. Flex buildings. ----------- Correct Answer ----------- b. Distribution centers; The economic rent of a property or a unit is also known as the: Select one: a. Market rent. b. Contract rent. c. Actual rent. d. Statutory rent. ----------- Correct Answer ----------- a. Market rent. The article cited in the text about hotel investment makes each of the following points, EXCEPT: Select one: a. First time hotel investors would be best advised to build a new hotel rather than purchasing an existing one; b. Cubic foot. c. Unit in place. d. Quantity survey. ----------- Correct Answer ----------- c. Unit in place. A strip center is also known as a: Select one: a. Neighborhood center; b. Community center; c. Regional mall; d. Convenience center; ----------- Correct Answer ----------- d. Convenience center; When is it especially important to "stabilize" the net operating income when using the capitalization approach to appraisal? Select one: a. When valuing a new building. b. When the net operating income has had wide variations over the past several years. c. When net operating income is below expectations. d. When expenses have been lower than expected for the past several years. ----------- Correct Answer ----------- Stabilizing the net operating income is especially important when it has had wide variations over the past several years. The correct answer is: When the net operating income has had wide variations over the past several years. A subject property has four bedrooms while a comparable sale has only three bedrooms. The extra bedroom adds $7,500 to the value of a property in this neighborhood. The $7,500 adjustment would be: Select one: a. Added to the sale price of the subject property. b. Subtracted from the sale price of the subject property. c. Added to the sale price of the comparable sale. d. Subtracted from the sale price of the comparable sale. ----------- Correct Answer ------- ---- Appraisers never adjust the subject property. The comp is "poor" in terms of bedrooms so the $7,500 would be added to the sale price of the comp. The correct answer is: Added to the sale price of the comparable sale. Which of the following types of retail centers would draw its customers from the population within 3 to 6 miles of the store? Select one: a. Strip center; b. Neighborhood center; c. Community center; d. Regional mall. ----------- Correct Answer ----------- c. Community center; The Environmental Protection Agency estimates that what percentage of dry cleaners currently in operation have contamination issues? Select one: a. 45%. b. 55%. c. 65%. d. 75%. ----------- Correct Answer ----------- d. 75%. The discounted cash flow approach to appraising income properties is based on the concept of: Select one: a. Substitution. b. Disintermediation. c. Contribution. d. Time value of money ----------- Correct Answer ----------- d. time value of money Why do lenders require higher financial reserves for loans for a rental house? Select one: a. To discourage loan applications for rental properties; b. Due to the requirements of federal law; c. As a matter of tradition; d. Because of the risk of a vacancy causing an extended period of time with no rental income. ----------- Correct Answer ----------- If the tenant leaves and it takes several months to get a new tenant, the owner could go a long period of time with no rental income, so financial reserves become very important. The correct answer is: Because of the risk of a vacancy causing an extended period of time with no rental income. A call center which never gets in-person visits from consumers or customers would be most likely to rent space in which of the following types of office buildings? Select one: a. Class A; b. Class B; c. Class C; d. Class D Feedback Since there is no need to impress clients or customers at this location, it would be most likely to rent space in a Class C building, which is the lowest of the ratings. There is no Class D space. The correct answer is: Class C; ----------- Correct Answer ----------- Since there is no need to impress clients or customers at this location, it would be most likely to rent space in a Class C building, which is the lowest of the ratings. There is no Class D space. The correct answer is: Class C; In what circumstance will some of the interest paid on a mortgage securing a rental house NOT be tax deductible: Select one: a. In all cases; b. If the owner is in the highest tax bracket; c. In no cases; d. If there has been a "cash-out" refinancing. ----------- Correct Answer ----------- Interest on a mortgage on a rental property is normally tax deductible except to the extent there has been a "cash-out" refinancing. The correct answer is: If there has been a "cash-out" refinancing. In the market for single family residences, an "institutional investor" is one who: Select one: a. Invests at least $1 million per year for 5 years; b. Purchases at least 5 homes in a year c. Purchases at least 10 homes in a year d. Invests at least $3 million per year for 5 years. ----------- Correct Answer ----------- c. Purchases at least 10 homes in a year A retail center that typically has between 30,000 and 125,000 square feet of retail space and is anchored by a supermarket is known as a: Select one: a. Strip center; b. Neighborhood center; c. Community center; d. Regional mall. ----------- Correct Answer ----------- b. Neighborhood center; A single family residence rents for $1,500 and recently sold for $187,500. What is its monthly gross rent multiplier? Select one: a. 125. b. 135. c. 150. d. 155. ----------- Correct Answer ----------- a. 125. A Phase I Environmental Site Assessment would include each of the following, EXCEPT: Select one: a. An onsite inspection of the property. b. Interviews of knowledgeable persons such as previous owners and managers who would know the past history of the property. c. A check of local government records to review past land uses and building permits. d. Taking soil samples and obtaining lab tests. ----------- Correct Answer ----------- d. Taking soil samples and obtaining lab tests. If you purchase a unit in a cooperative complex, what do you own? Select one: a. Your individual unit only; b. Only an undivided interest in the entire complex; c. Shares of stock in a corporation that owns the entire complex; a. Liens against the property. b. Easements or encroachments affecting the property. c. Both of the above. d. None of the above. ----------- Correct Answer ----------- c. Both of the above. A Phase II Environmental Site Assessment would include: Select one: a. Soil samples. b. Water samples. c. Subsurface soil borings. d. All of these choices. ----------- Correct Answer ----------- d. All of these choices. The cost approach to appraisal is based primarily on the principle of: Select one: a. Anticipation. b. Substitution. c. Progression. d. Contribution. ----------- Correct Answer ----------- b. Substitution. What is the formula for calculating depreciation under the age-life approach? Select one: a. Effective age divided by actual age. b. Effective age divided by economic life. c. Actual age divided by economic life. d. Economic life divided by actual age. ----------- Correct Answer ----------- b. Effective age divided by economic life. What is the purpose of an access agreement in the purchase of commercial property? Select one: a. To prevent any modifications to the access areas of the property prior to closing of the purchase. b. To allow the seller access to the property for a specified period of time after closing to remove any remaining personal property. c. To allow the buyer access rights to the property before the closing so that desired inspections can be made. d. To allow local building inspectors access to the property. ----------- Correct Answer ---- ------- c. To allow the buyer access rights to the property before the closing so that desired inspections can be made. A corporate investor who is considering the purchase of a commercial building would use the Weighted Average Cost of Capital to determine the: Select one: a. Capitalization rate. b. Discount rate. c. Remainder rate. d. Sample rate. Feedback The Weighted Average Cost of Capital (WACC) is used to determine the discount rate in a discounted cash flow analysis. The correct answer is: Discount rate. ----------- Correct Answer ----------- The Weighted Average Cost of Capital (WACC) is used to determine the discount rate in a discounted cash flow analysis. The correct answer is: Discount rate. The recapture of depreciation is taxed at what rate? Select one: a. 25%; b. The taxpayer's ordinary income rate; c. The taxpayer's short term capital gains rate; d. 10%. ----------- Correct Answer ----------- a. 25%; An investor purchased a rental home for $375,000. The lot was valued at $100,000. What would be this investor's depreciation deduction for a full year? Select one: a. $13,636; b. $9,625; c. $10,000; d. $7,051. ----------- Correct Answer ----------- c. $10,000; (recovery period of 27.5 yrs) A paired sales analysis is used: Select one: a. Primarily to value industrial properties. b. To determine construction costs. c. In a discounted cash flow analysis. d. To determine the adjustment necessary for a particular characteristic of a property in the direct sales comparison approach. ----------- Correct Answer ----------- . To determine the adjustment necessary for a particular characteristic of a property in the direct sales comparison approach. Which of the following is deducted from effective gross income to arrive at the net operating income? Select one: a. Management costs only. b. Depreciation only. c. Both management costs and depreciation. d. Neither management costs nor depreciation. ----------- Correct Answer ----------- a. Management costs only. The article cited in the text about hotel investment suggests that it is a bad idea to build a new hotel on the lowest end of the cost spectrum â€" such as rates below $100. What is the primary rationale for this? Select one: a. The gross income cannot be sufficient to support the costs; b. These hotels are most sensitive to economic downturns; c. Existing competing hotels will always be able to undercut your room rates; d. None of these choices. ----------- Correct Answer ----------- c. Existing competing hotels will always be able to undercut your room rates; The income approach to appraisal is based primarily on the principle of: Select one: a. Anticipation. b. Substitution. c. Progression. d. Contribution. Feedback The income approach is based primarily on the principle of anticipation which states that the value of a property can be determined as a function of the anticipated income the property is likely to generate. The correct answer is: Anticipation. ----------- Correct Answer ----------- Anticipation A proprietary lease would be associated with: Select one: a. Condominiums; b. Cooperatives; c. Both of the above; d. None of the above. ----------- Correct Answer ----------- b. Cooperatives; In order to be considered a high-rise according to Fannie Mae's classifications, an apartment building must have: Select one: a. 5 or more floors; b. 7 or more floors; c. 9 or more floors; d. 10 or more floors ----------- Correct Answer ----------- c. 9 or more floors; When "baseball arbitration" is used in negotiating the rent for a lease extension, which of the following choices best describes the process? Select one: a. It is a form of mediation involving several rounds of negotiations. b. It involves hiring an appraiser to determine the fair market rent. c. It requires a panel of three different owners of similar properties setting an appropriate rent level. d. Each party submits a recommended solution and the arbitrator chooses which one is more reasonable. ----------- Correct Answer ----------- In "baseball arbitration" each party submits a recommended solution and the arbitrator chooses which one is more reasonable. The correct answer is: Each party submits a recommended solution and the arbitrator chooses which one is more reasonable. With regard to the payment of a commission to the listing broker, the concept of "procuring cause" would be least significant with regard to which type of listing: Select one: a. Open listings. b. Exclusive listings. c. Exclusive right to sell listings. d. Net listings. ----------- Correct Answer ----------- c. Exclusive right to sell listings. Sam Smith wants to buy a particular house and has agreed to pay the broker's commission. Which of the following is a TRUE statement? Select one: a. The broker is guaranteed a commission as soon as the buyer signs the employment contract b. The fact that the buyer is paying the broker's commission means that the broker is representing the buyer c. If the broker and the buyer sign an employment contract the broker is representing the buyer d. The broker must be licensed as a buyer's broker. ----------- Correct Answer ----------- If the broker and the buyer sign an employment contract the broker is representing the buyer The owner of a house tells the listing broker that he is HIV positive but he does not want prospective buyers to know this. One of the prospective buyers tells the listing broker that he has heard the seller is HIV positive and asks the broker if this is true. The broker Select one: a. must tell the prospective buyer that it is true. b. must honor his seller's confidentiality and tell the prospective buyer that it is not true. c. can tell the prospective buyer that he does not know. d. can tell the prospective buyer that this is an illegal question. ----------- Correct Answer ----------- a. must tell the prospective buyer that it is true. Which of the following statements about property managers is NOT true? Select one: a. They must all be licensed. b. They maintain the property. c. They manage relations among tenants. d. They develop budgets. Feedback Property managers who are employed by the owner do not need to be licensed, so choice 'a' is the FALSE statement. The correct answer is: They must all be licensed. ----------- Correct Answer ----------- a. They must all be licensed. A broker must disclose the types of agency relationships offered and how compensation might be shared with other brokers. Select one: a. prior to signing a contract for sale. b. prior to showing the property. c. prior to signing a listing agreement. d. within a reasonable time. ----------- Correct Answer ----------- c. prior to signing a listing agreement. A firm got a real estate license on December 7th, 2022. The firm's license would expire on: Select one: a. December 7, 2024. b. December 31, 2024. c. December 7, 2026. d. December 31,2026. ----------- Correct Answer ----------- d. December 31,2026. A salesperson runs an advertisement which includes the name and phone number of the brokerage firm. Which of the following statements is correct? Select one: a. Only the name of the firm must be printed in a size equal or greater than that of the salesperson. b. Only the phone number of the firm must be printed in a size equal or greater than that of the salesperson. c. Both the name and the phone number of the firm must be printed in a size equal to or greater than that of the salesperson. d. Neither the name nor the phone number of the firm must be printed in a size equal to or greater than that of the salesperson. ----------- Correct Answer ----------- c. Both the name and the phone number of the firm must be printed in a size equal to or greater than that of the salesperson. A prospective applicant for a real estate salesperson's license takes the state exam and passes it in September 2020. In October 2021 the person submits his application for a real estate license. Select one: a. This person must pay a fee equal to 2 times the original fee. b. This person must retake the 75 hour required education prior to submitting his application. c. This person must complete post-license education before submitting his application. d. This person must retake the state licensing exam. ----------- Correct Answer ----------- The correct answer is: This person must retake the state licensing exam. Which of the following statements about offers is TRUE? Select one: a. An offer becomes a sales contract as soon as it is accepted. b. An offer must be accompanied by earnest money. c. Licensees must present all written and oral offers up to time of closing. d. Licensees must present all written offers up to time of closing. ----------- Correct Answer ----------- Licensees must present all written offers up to time of closing. If a landlord and a tenant have a dispute in Georgia Select one: a. they may appeal to the real estate commission for a resolution. b. they must agree to binding arbitration. c. they may sue in a court of competent jurisdiction. d. they must be represented by a licensed Georgia attorney. ----------- Correct Answer --- -------- c. they may sue in a court of competent jurisdiction. REALTOR® A has a listing on a seller's home and the seller has accepted an offer. The offer is contingent upon the sale of the buyer's current home. REALTOR® B has a buyer who has made an offer. Under the Code of Ethics, what should listing REALTOR® A do? Select one: a. Ignore REALTOR® B's offer since the seller's home is already under contract. b. Reveal the existence of the contract but not the contingency. c. Reveal the existence of the contract and the contingency. d. Present the second offer to the seller without disclosing the existence of the offer or the contingency. ----------- Correct Answer ----------- c. Reveal the existence of the contract and the contingency. A REALTOR® has a listing on a client's house. The sellers are getting a divorce and need to sell the home quickly. Under what circumstances can the REALTOR® reveal this fact to a potential buyer? Select one: a. Under no circumstances. b. Without restriction. c. Only if the buyer asks about the seller's motivation for selling. d. Only after getting informed consent from the seller. ----------- Correct Answer ----------- d. Only after getting informed consent from the seller. A Realtor® who enters into a brokerage agreement with a buyer is obligated to disclose to the client each of the following issues, EXCEPT: Select one: a. That the seller's agent is forbidden by the Code of Ethics to reveal the terms and conditions of any offer made by the buyer to anyone other than the seller; b. The potential for additional or offsetting compensation from other brokers, from the seller or landlord, or from other parties; c. Any potential for the buyer/tenant representative to act as a disclosed dual agent, e.g., listing broker, subagent, landlord's agent, etc.; d. The Realtor®'s company policies regarding cooperation. ----------- Correct Answer -- --------- that the seller's agent is forbidden by the Code of Ethics to reveal the terms and conditions of any offer made by the buyer to anyone other than the seller; Under what conditions does the Code of Ethics permit a REALTOR® to refuse to submit an offer or counteroffer when the property is already under a contract for sale? b. When a cooperating broker who is not a REALTOR® is the procuring cause of the sale. c. Both of the above. d. None of the above. ----------- Correct Answer ----------- Standard of Practice 1-1 states that REALTORS®, when acting as principals in a real estate transaction, remain obligated by the duties imposed by the Code of Ethics. The correct answer is: Both of the above. Under the Code of Ethics, REALTORS® may act as a dual agent: Select one: a. Under no circumstances. b. Only with informed consent. c. Without restriction. d. Only with the prior specific approval of the state regulatory agency. ----------- Correct Answer ----------- Only with informed consent. A set of moral values and principles that provide a measure to determine the "rightness" or "wrongness" of actions are: Select one: a. Standards. b. Ethics. c. Regulations. d. Laws. ----------- Correct Answer ----------- b. Ethics. In the Code of Ethics, REALTORS® have obligations to: Select one: a. Clients. b. Customers. c. Other REALTORS®. d. All of the above. ----------- Correct Answer ----------- d. All of the above. The Code of Ethics permits REALTORS® to receive compensation from both parties to a transaction: Select one: a. Under no circumstances. b. Without restriction. c. Only with the informed consent of either principal. d. Only with the informed consent of both principals. Feedback ----------- Correct Answer ----------- d. Only with the informed consent of both principals. Under what circumstances would the Code of Ethics hold that the termination of a nearby bus stop be an adverse material fact which must be disclosed? Select one: a. Under all circumstances. b. Under no circumstances. c. If it was a heavily used bus stop. d. If the nearby bus stop was a crucial feature to the buyer. ----------- Correct Answer ---- ------- d. If the nearby bus stop was a crucial feature to the buyer. A seller's house is in escrow. The listing broker receives a better offer from another buyer. The seller wants to cancel the current contract and accept this later offer. The Code of Ethics would require this listing broker to: Select one: a. Explain the risks involved and recommend the best option. b. Tell the seller to accept the second offer. c. Tell the seller to seek legal counsel about how to proceed. d. Ask the first buyer to rescind the contract. ----------- Correct Answer ----------- : Tell the seller to seek legal counsel about how to proceed. A property manager is able to purchase supplies for the apartment complex at wholesale prices. The property manager marks that up to retail prices when charging the expense to the property owner. This practice would be ethical: Select one: a. In all cases. b. In no cases. c. If fully disclosed to the owner and consent is obtained. d. As long as the markup is no more than 10%. ----------- Correct Answer ----------- The correct answer is: If fully disclosed to the owner and consent is obtained. When advertising a property, what is the best approach to take? ---------- Correct Answer ------------ Describe the property, but not a description of the likely buyers What marketing approach involves spending a percentage of your sales on your marketing efforts? ---------- Correct Answer ------------ Percentage of Sales Approach In what section of your business plan would you put information regarding your competition? ---------- Correct Answer ------------ Business Environment What statement in a property disclosure form gives the seller's broker permission to share the disclosure form with prospective purchasers? ---------- Correct Answer ---------- -- Permission to Share A comparable is another property that ---------- Correct Answer ------------ has the same or almost the same characteristics and features as the seller's property. One way to avoid legal liability regarding square footage measurements is to ---------- Correct Answer ------------ provide a disclaimer to buyers indicating where you obtained the square footage What is the best strategy to take with a FSBO? ---------- Correct Answer ------------ Provide assistance to set yourself up as the one who gets the listing when the property doesn't sell. What principle explains how the value of a property is influenced by the values of neighboring properties? ---------- Correct Answer ------------ Progression and Regression What is it called when you copy the body language of the one your are talking to? -------- -- Correct Answer ------------ Mirroring What marketing tool tracks former clients and continues to send them greeting cards and updates on your business? ---------- Correct Answer ------------ Contact Log Federal Fair Housing Laws ---------- Correct Answer ------------ prohibit blockbusting Alabama Code specifically prohibits a licensee from ---------- Correct Answer ------------ giving or receiving a rebate in a real estate transaction. What type of commercial property is anchored by three or more full-line department stores of at least 75,000 square feet each? ---------- Correct Answer ------------ Mega Malls All licensees must notify the Commission in writing of any change in address to his or her business or residence within ---------- Correct Answer ------------ 30 days of the change What is the first step when determining an advertising campaign? ---------- Correct Answer ------------ Establish a budget How long must an investor live in a vacation home in order to take depreciation on it? --- ------- Correct Answer ------------ 14 days a year or less A comparative market analysis (CMA) is ---------- Correct Answer ------------ Less reliable than an appraisal What automated software feature informs the agent when a property has been listed that matches the needs of his or her client? ---------- Correct Answer ------------ Property Matching What practice results in increased plottage value? ---------- Correct Answer ------------ Assemblage What type of development is typically one or two stories with up to 50 percent office space and the remaining areas used for workshops and light manufacturing? ---------- Correct Answer ------------ Research and Development Sites information about the physical condition of a property during a sales transaction The term quasi-judicial means: ---------- Correct Answer ---------- The ability to jusge and punish for law and rule violations The FREC consists of how many members appointed by the Governor? ---------- Correct Answer ---------- 7 Jack complied with an Escrow Disbursement Order from the FREC and was sued for the action. The Real Estate Recovery Fund may: ---------- Correct Answer ---------- Pay for Jack's attorney and court costs, if Jack defended his actions for the EDO Jane is a college graduate with a four-year degree in real estate. She has a sales associate's license and seeks to renew the license for the second time. What must she do? ---------- Correct Answer ---------- She must take 14 hours of continuing education and renew online, prior to the license expiration date. She must fill out the form, pay the fee, and return it before the expiration date. John is moving his real estate office and reports Jan on the change of address. What happens to Jan's license? ---------- Correct Answer ---------- Jan's license becomes involuntary inactive. What is the primary mission of the FREC? ---------- Correct Answer ---------- To protect the public Johnny got a DUI during the office Christmas party. He must: ---------- Correct Answer -- -------- Self report within 30 days to the Division of Real Estate Jimmy had a complaint registered with the DBPR against his real estate license. Jimmy disputes that the event took place on a specific date. He must: ---------- Correct Answer - --------- Appear in front of an Administrative Law Judge on ALL charges Your broker does not have a policy manual available. This means: ---------- Correct Answer ---------- The broker may not have "Safe Harbor" in some of their practices and could get into trouble later Advertising rules are set forth by the FREC using: ---------- Correct Answer ---------- 61J2.10-25 A business analysis identifies: ---------- Correct Answer ---------- Strengths, weaknesses, opportunities, and threats. A business analysis identifies strengths, weaknesses, opportunities and threats. "SWOT" Your broker requires that you come to the office Monday through Friday and stay at least 4 hours each day. You are: ---------- Correct Answer ---------- An employee of the broker Nikki is looking fir a broker. Upon entering a potential broker's office, she notices that there is no Fair Housing Poster. Nikki should: ---------- Correct Answer ---------- Ask why there is no poster and if she is not satisfied with the answer, look elsewhere for her next broker What should you give to potential customers when prospecting door-to-door? ---------- Correct Answer ---------- Your business card You are trying to select a farm area and you have narrowed the choices down to four areas. Which of the choices listed would be the best option? ---------- Correct Answer ---- ------ An area close to your own house, where the 125 homes are similar to yours and familiar to yku When prospecting FSBOs: ---------- Correct Answer ---------- Provide them with documents and information to help them sell the home themselves so they view you as a resource When someone with an expired listing tells you mistakes the previous sales associate made: ---------- Correct Answer ---------- Comment on the action, not the sales associate, and explain how a different action might produce different results next time Which of the following is NOT an exception to the Do-Not-Call laws? ---------- Correct Answer ---------- You can call as long as you block your company name and number Exceptions to Do Not Call laws ---------- Correct Answer ---------- Can call someone you have conducted business with within the last 18 months Can call in response to advertisements or signs Can call for up to three months after someone has inquired about your services The first and most important thing to discuss after signing the listing agreement is: ------- --- Correct Answer ---------- How you will start to advertise the property What is one benefit you CANNOT offer to someone who lists with you? ---------- Correct Answer ---------- A guarantee that the house will sell in 60 days or less Benefits you can offer someone who lists with you: ---------- Correct Answer ---------- Security if knowing that strangers will not be walking through the house alone Dedicated and personalized marketing plan Someone who is familiar with the process and all the paperwork involved in selling a house When developing a marketing plan for the CMA, you should include: ---------- Correct Answer ---------- How often you intend to hold open houses When leaving for your appointment it is best to: ---------- Correct Answer ---------- Arrive early but don't come to the door until 5 minutes before your appointment When setting up For Sale signs in a community with a homeowner's association, you should: ---------- Correct Answer ---------- Check the community documents yourself to ensure that you are following the proper rules What is the purpose of the Seller's Net Sheet? ---------- Correct Answer ---------- To give your sellers a breakdown of the costs associated with selling the home so they can calculate their approximate net from the sale A sales associate has performed a CMA. What is the best way to present the value of the property? ---------- Correct Answer ---------- Provide the seller a range of values to list the propert Some important factors in valuing a property include highest and best use, this means: - --------- Correct Answer ---------- The property's value is directly affected by its location and current use The introduction to the CMA should have how many pages? ---------- Correct Answer ---- ------ 2 During the previous 6 months, a total of 32 homes have sold in the market that are similar to the property you are listing. There are currently 75 homes in the market. This means: ---------- Correct Answer ---------- It would take approximately 14 months for all homes currently on the market to sell. 32/6 = 5.33 per month. 75/5.33 = 14 Which of the following would NOT end an agency relationship? ---------- Correct Answer ---------- The signing of the sales contract Can end an agency relationship: ---------- Correct Answer ---------- Bankruptcy of the client Expiration of the listing agreement Completion of closing Misrepresentation may be defined as: ---------- Correct Answer ---------- Negligent or innocent misstatements or incomplete statements of a material fact The seller's disclosure form is used to: ---------- Correct Answer ---------- Protect the seller and the broker by disclosing any known material defects in the home If the seller is a trust, the proper seller is the: ---------- Correct Answer ---------- Trustee If a property is subject to a lease: ---------- Correct Answer ---------- All copies of the existing lease must be provided for the buyer to review within 5 days of the effective date of the contract In an "as is" contract: ---------- Correct Answer ---------- The seller is not obligated to pay for repairs The deed guarantee for quiet enjoyment means: ---------- Correct Answer ---------- The buyer will have no third parties attempting to gain title to the property The rate on an adjustable rate mortgage is based on: ---------- Correct Answer ---------- Any index that the lender doesn't control. PRIME as it applies to ARMs is: ---------- Correct Answer ---------- The interest rate that banks charge to their best, most credit-worthy customers. The loan estimate: ---------- Correct Answer ---------- Is provided at loan application and is again provided at closing as part of the buyer's closing disclosure. COFI ---------- Correct Answer ---------- 11th District Cost of Funds Index - This index is relatively slow moving, and is based on the average interest rate paid by banks that are members of the Federal Home Loan Bank District of San Francisco. It is adjusted once a month and is considered the most stable of all four indexes. T-Bill ---------- Correct Answer ---------- Treasury bill indexes are based on the results of auctions that the U.S. Treasury holds for its treasury bills, notes, and bonds. They are adjusted at monthly, 3-month, and 6-month intervals. MTA ---------- Correct Answer ---------- The 12 Month Treasury Average is also known as the 12-Month Moving Average Treasury index (MAT) and is a relatively new ARM index. This index is the 12-month average of the monthly average yields of U.S. Treasury securities adjusted to a constant maturity of one year. It is calculated by averaging the previous 12 monthly values of the 1-Year CMT (Constant Maturity Treasury index) which is calculated weekly for treasury securities. Tim applies for a mortgage to purchase a home. He is the: ---------- Correct Answer ------ ---- Mortgagor A simple interest mortgage: ---------- Correct Answer ---------- May cost the borrower more over the life of the loan. An individual seller who finances three of their own properties over one year is: ---------- Correct Answer ---------- Not considered an MLO The final approval for a loan belongs to: ---------- Correct Answer ---------- Underwriter An escrow account statement will be provided to the buyer: ---------- Correct Answer ----- ----- Annually FICO stands for: ---------- Correct Answer ---------- Fair Isaac & Co A step that may be taken if the appraisal comes in low is to: ---------- Correct Answer ---- ------ Order a second appraisal. The closing disclosure is given to the borrower: ---------- Correct Answer ---------- At least 3 days before closing A borrower must receive any revised loan estimate: ---------- Correct Answer ---------- 4 business days before closing Items disclosed as "Other" in item H on page 2 include: ---------- Correct Answer ---------- Those not shown on the loan estimate Deposits on the closing estimate are shown as: ---------- Correct Answer ---------- A negative number. An example of services that a buyer cannot shop for may include: ---------- Correct Answer ---------- VA funding fee. Buyer can shop for: ---------- Correct Answer ---------- Lender, Survey, Title closing agent Consummation of a loan occurs: ---------- Correct Answer ---------- When the borrower is contractually obligated to the lender. The CHARM booklet is required to be provided to: ---------- Correct Answer ---------- Borrowers seeking an ARM. The real estate business cycle affects real estate: ---------- Correct Answer ---------- Locally The tax law changes of 2017, created: ---------- Correct Answer ---------- Greater advantages for investors One disadvantage of real estate investment: ---------- Correct Answer ---------- There is a great time investment. An investor expecting to pay a low amount for an investment property expects: ---------- Correct Answer ---------- A high rate of return A ____________ is not involved in the decisions for managing a property. ---------- Correct Answer ---------- Passive investor The GDP measures our ability: ---------- Correct Answer ---------- To produce and keep jobs Capital expenditures are funded by: ---------- Correct Answer ---------- Reserves for replacement Joanie is an unmarried investor who has $575,000 in allowable deductions and losses. Her income is $250,000. She has no other businesses. This puts her Net Operating Loss (NOL) for the following year at: ---------- Correct Answer ---------- 75,000 $575,000 - $250,000 = $325,000; $325,000 - $250,000 (max for individual) = $75,000 Seasonal maintenance is the: ---------- Correct Answer ---------- Maintenance required at certain times. A gross lease would most often be used for: ---------- Correct Answer ---------- Office lease. Gross lease includes: ---------- Correct Answer ---------- all utilities and everyday expenses and is typically used for an office lease If the broker is to enter into a lease on the owner's behalf they must have: ---------- Correct Answer ---------- A Power of Attorney Soft skills are also referred to as: ---------- Correct Answer ---------- The capacity to work with people The leasing or rental sales associates: ---------- Correct Answer ---------- Are responsible for keeping the property rented One of the factors that may contribute to high vacancy is: ---------- Correct Answer -------- -- Low interest rates. Tenants often become a loss when: ---------- Correct Answer ---------- the market is robust and interest rates are low. Escrow accounts must be reconciled: ---------- Correct Answer ---------- Monthly Expenditures for a property fall into two categories: ---------- Correct Answer ---------- Fixed and variable. A property manager who is employed by an owner would have: ---------- Correct Answer ---------- A job description. The _________ is charged with the responsibility of investigating potential licensees and current licensees ---------- Correct Answer ---------- DBPR The DBPR and Florida Real Estate Commission may enforce the following by law: ------- --- Correct Answer ---------- Deny a license Refuse to renew a license Suspend a license Revoke a license Issue citations Impose fines Impose probation Issue a notice of noncompliance Section 455.227(1)(t), Florida Statutes, requires that a licensee ---------- Correct Answer ---------- report a crime in any jurisdiction to the FREC within 30 days after they are convicted, found guilty of, or entered a plea of nolo contendere (no contest), regardless of adjudication. The fund is financed through: ---------- Correct Answer ---------- money received from administrative fines and a surcharge on each new and renewing licensee Real estate sales associates are most often hired as: ---------- Correct Answer ---------- Independent contractors If a broker does not have a policy manual: ---------- Correct Answer ---------- it indicates a potential problem for all who work under that broker. A budget worksheet ---------- Correct Answer ---------- provides the user with adequate items to financially plan for their business Prospecting: ---------- Correct Answer ---------- actively looking for and finding prospects - those owners who may be interested in selling their property or potential buyers who are interested in purchasing property CAN-SPAM Act ---------- Correct Answer ---------- a law that sets the rules for commercial email, establishes requirements for commercial messages, gives recipients the right to have you stop emailing them, and spells out tough penalties for violations. Expired listings and FSBOs ---------- Correct Answer ---------- excellent sources for finding new customers. It is important to approach these potential customers in a certain way to earn their business absorption analysis ---------- Correct Answer ---------- measurement of sales for comparable homes in a neighborhood. The analysis uses the supply and demand focus in determining the rate of sales and anticipated time that a home may remain on the market. five factors that should be used to determine fair market value of a property ---------- Correct Answer ---------- conformity, supply and demand, future value expectations, highest and best use, and increasing and diminishing values. Absorption Analysis ---------- Correct Answer ---------- can be used to show the average time on market for a property and how substitution works when a buyer is purchasing a property. Broker's Price Opinion ---------- Correct Answer ---------- opinion of value often used by banks to determine a list price material defects ---------- Correct Answer ---------- roof leaks, electrical problems, termites and other areas which would affect a property's value ny agency or non-representation (no-brokerage relationship) requires a specific disclosure be provided to sellers and buyers during the ---------- Correct Answer ---------- first meaningful contact with such a party Any agency relationship established where the broker is representing one side of the transaction and a potential customer would like the broker to assist them for the other side of the transaction must ---------- Correct Answer ---------- change from an agency to transaction brokerage relationship using the Consent to Transition to Transaction Broker Disclosure There are four (4) types of listing agreements used in Florida: ---------- Correct Answer -- -------- Open, exclusive agency, limited service, and exclusive-right-of-sale Net listings ---------- Correct Answer ---------- highly discouraged as they may result in a broker taking advantage of sellers by concentrating less on what a market value could bring a seller and more on their net profit. An executory listing agreement ---------- Correct Answer ---------- must be returned to the seller within 24 hours of signing. The offer ---------- Correct Answer ---------- is not a contract There are 8 ways that an offer can be terminated ---------- Correct Answer ---------- withdrawal, illegality, lapse of time, death or insanity, counter-offer, acceptance, rejection, and destruction of property There are four essential elements to a valid contract ---------- Correct Answer ---------- contractual capacity of the parties, offer and acceptance, the legality of the contract or object of the contract, and consideration. A bilateral contract ---------- Correct Answer ---------- requires both parties to perform in order to execute the contract. A void contract ---------- Correct Answer ---------- one that may be missing one of any of the essential elements with the exception of the age of the parties An executory contract ---------- Correct Answer ---------- one where one or both parties have not completed the details that are described in the contract An executed contract ---------- Correct Answer ---------- one where both parties have performed and completed all details which are described in the contract These override the pre-printed areas of a contract: ---------- Correct Answer ---------- Handwritten changes and riders mortgagor ---------- Correct Answer ---------- a borrower who takes out a loan for a property mortgagee ---------- Correct Answer ---------- lender who provides the money for the mortgage A title theory state ---------- Correct Answer ---------- retains the title an intermediary theory state ---------- Correct Answer ---------- may take the title back in a default situation Florida is a lien theory state ---------- Correct Answer ---------- borrower retains the title to the property and the bank holds a lien against the title judicial foreclosure ---------- Correct Answer ---------- a lawsuit against the lien filed for the title non-judicial foreclosure ---------- Correct Answer ---------- allows the lender to foreclose without the courts determining if there is a default fixed rate mortgage ---------- Correct Answer ---------- creates a payment which is equal throughout the life of the loan adjustable rate mortgage ---------- Correct Answer ---------- payments will fluctuate through the life of the loan. Interest ---------- Correct Answer ---------- overall cost to borrow money APR ---------- Correct Answer ---------- reflects points, fees, and other charges which may be mixed into the loan over time An annual salary when an individual is hired by an entity to manage property owned by the entity. Four types of maintenance that should be built into the budget and long-term goals are: ---------- Correct Answer ---------- Preventative Maintenance Corrective Maintenance Scheduled Maintenance Construction Maintenance The proof and worth of a given property are found in the following three reports that relate to investment property: ---------- Correct Answer ---------- Operating Budget Cash Flow Report Profit and Loss Statement The operating budget helps an owner understand two important items: ---------- Correct Answer ---------- A projection of the future operation of the property A history of the property's past performance The calculations in the budget consist of: ---------- Correct Answer ---------- Income Expenses Net operating income before financing Cash flow Profit and Loss Statement (P&L) would list only ---------- Correct Answer ---------- total gross receipts and only total expenses compared to itemized lists of receipts and expenses. Property management specializations: ---------- Correct Answer ---------- Certified Property Manager (CPM) Real Property Administrator (RPA) Certified Shopping Center Manager (CSM) Certified Apartment Manager (CAM) The duty of confidentiality lasts: ---------- Correct Answer ---------- The life of the agent unless waived in writing by the customer ____________ is the principle that a property's value is directly affected by where it is located and how it is presently used, or its potential future use at that location. ---------- Correct Answer ---------- Highest and best use How long can a voluntary inactive license remain inactive? ---------- Correct Answer ------ ---- Indefinitely If there aren't many homes on the market, you'll have buyers competing for the same houses, which will increase the market values. Conversely, if there are lots of homes and few buyers, market value would decrease due to the overabundance of supply. This is known as the: ---------- Correct Answer ---------- The law of Supply and demand _________________ in Florida is when the state recognizes the education requirements of other states and allows those who are in the mutually recognized states to apply for Florida licensure and test on Florida laws to earn a license in Florida. --------- - Correct Answer ---------- Mutual recognition If the licensee does not bring the license back from involuntary license status within two years: ---------- Correct Answer ---------- It is automatically be canceled. _____________ in English contract law and English tort law refers to a situation where a person is induced to enter into a contract entirely or partly by a false assertion (of fact, not opinion or intention) made by the other contracting party. ---------- Correct Answer --- ------- Misrepresentation The basic concept of ________is that you select a specific geographic area in which to focus some of your marketing efforts. ---------- Correct Answer ---------- Farming What means that you're using a systemized method of searching for and locating people who need your services? ---------- Correct Answer ---------- Prospecting As _________________, you should not advise your customer as to any action they should take. You may provide suggestions, but you are not an agent and if you give the impression that you are an agent. ---------- Correct Answer ---------- transaction broker A ___________ may be established in Florida for property management ---------- Correct Answer ---------- general agency An executory listing agreement must be returned to the seller within ___________ of signing. ---------- Correct Answer ---------- 24 hours ________________ is a person who provides real estate services for another, for compensation under the direction, control, and management of an active broker. --------- - Correct Answer ---------- A sales associate Where would you logon to check your license information? ---------- Correct Answer ------ ---- DBPR site Any disputes between the broker and seller are agreed to be settled: ---------- Correct Answer ---------- Through binding arbitration. __________ is using borrowed funds for real estate investments. ---------- Correct Answer ---------- Leverage Which is commonly used in analysis to determine your competition and how you can overcome and succeed in the business of real estate? ---------- Correct Answer ---------- SWOT ______________ of a loan occurs when the borrower becomes contractually obligated to the lender for the loan, not, for example when the borrower becomes contractually obligated to a seller for a real estate transaction. ---------- Correct Answer ---------- consummation The ____________ is the administrative arm for the real estate profession. ---------- Correct Answer ---------- DRE ______________ power is used to write and enact rules ---------- Correct Answer --------- - Quasi-legislative What was designed to protect consumers who were harmed in a real estate transaction and who seek compensatory (compensation) or monetary loss damages? ---------- Correct Answer ---------- Real Estate Recovery Fund A license is _______________ evidence that a licensee is qualified to practice real estate. ---------- Correct Answer ---------- Prima facie _____________ who is licensed and skilled, may discover problems in a property that would otherwise go unnoticed by a buyer. ---------- Correct Answer ---------- A home inspector Further areas of the ____________ laws require real estate professionals not to discriminate in advertising on their websites or in videos and flyers. ---------- Correct Answer ---------- Fair Housing In applying for a license and maintaining such a license, the name, address, email, and broker's information for every licensee is available for anyone for their review, meaning that it is _______________. ---------- Correct Answer ---------- Public record In _______________ the broker offers services which are less than full service to list a property in the MLS with limited marketing and open houses. Other services may be offered by the broker through as a la carte, or the seller may choose to perform some of the duties on their own. ---------- Correct Answer ---------- A limited service listing ______________ refers to the fact that a licensee must report a crime in any jurisdiction to the FREC within 30 days after they are convicted, found guilty of, or entered a plea of nolo contendere (no contest), regardless of adjudication. ---------- Correct Answer -------- -- Self reporting _____________ is a measurement of sales for comparable homes in a neighborhood. The analysis uses the supply and demand focus in determining the rate of sales and