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questions and answers
Martha was able to go to the closing and sign the paperwork to sell her mother's property while her mother was in the hospital. How could this be possible?
- Martha may have been named an executor of her mother's will.
- Her mother may have had a power of attorney drawn up making Martha her attorney in fact.
- Martha and her mother may own the property as joint tenants, so that Martha may sign as owner
- Martha's mother's surgeon recommended that this be permitted to alleviate her mother's stress and regarding this pending transaction - correct answer ✅2. Her mother may have had a power of attorney drawn up making Martha her attorney in fact. Janet is the property for a 20 unit building. What steps would she take when asked to prorate the rent if a new tenant wants to move in on the 8th day of the month in June?
- subtract 8 days from 365 to come up with the prorated rent per day
- Divide the monthly rent by 30 days and multiply that number by 22
- calculate the 22 day rental amount and add a prorated utility fee
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- advise the tenant that the first available move-in date is July 1 - correct answer ✅2. Divide the monthly rent by 30 days and multiply that number by 22 In a jurisdiction where the common law of agency governs real estate activities, a broker has entered a single agency relationship with the buyer. The broker has put together a list of properties but it was based off how much commission he can make on this sale. What fiduciary duty did the broker violate?
- confidentiality
- loyalty
- disclosure
- caution - correct answer ✅2. loyalty Why was asbestos often used as a construction material?
- waterproof
- fireproof
- indestructible
- cheap - correct answer ✅2. fireproof
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- The only appropriate way to market property in this neighborhood - correct answer ✅3. Acceptable if the advertisement includes no preferential language Market price is:
- What the property sells for
- The most probable price
- The same as market value
- The same as cost when used - correct answer ✅1. What the property sells for The most listing contracts, a broker who has brought a ready, willing, and able buyer to a seller who agrees to the terms of a sales contract:
- earns a commission at that point
- earns a commission even if the contingencies in the contract have not been met.
- does not earn commission unless the sale closes
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- does not earn commission if the buyer and seller agree to rescind the contract - correct answer ✅3. does not earn commission unless the sale closes A building was purchased for $350,000 with a 20% down payment, If the lender charged the buyer three discount points, how much will the buyer need to cover these two:
- $61,
- $78,
- $80, 4.$360,500 - correct answer ✅2. $78, A developer intends to subdivide a large parcel of land and is in the process of land planning. He has determined the geographic boundaries of the individual lots and how the streets as the development will be signed to give access to each lot, when can he begin to list this property?
- after he records prescriptive easements for lots that have no street frontage
- When local authorities grant him a conditional use permit allowing residential construction
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- Any payments are refunded should the buyer fail to perform on the agreement. - correct answer ✅3. The seller agrees to sell at a fixed price within a stipulated time. What does the mortgage lender most often rely on when deciding how much is safe to lend on a parcel of real estate?
- market analysis
- sales contract
- appraisal report
- assessor's determination - correct answer ✅3. appraisal report The lead paint addendum that must be presented with the purchase and sales contract for certain older homes will:
- require the removal of all lead paint prior to the closing.
- provide the buyer with the opportunity to wave the right to a lead paint inspection.
- mandate the sellers remove any lead paint only on interior walls.
- make the sellers liable of the buyer's lead related medical problems -
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correct answer ✅2. provide the buyer with the opportunity to wave the right to a lead paint inspection. Zoning ordinances are typically established by:
- the federal government
- state governments
- town and city governments
- the courts - correct answer ✅3. town and city governments A motel is the subject of an appraisal and it is determined that a rerouting of a country highway has limited customer access to the motel. This is an example of:
- economic obsolescence
- regression
- functional obsolescence
- landlocked property - correct answer ✅1. economic obsolescence
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A seller has listed a home with a broker for $112,000. The seller is leaving for a 45 day cruise midway through the listing period, and authorizes the broker through a power of attorney to accept any offer of all cash at a price 100,00 or more. Broker receives a cash offer for $110,000, what does the broker do?
- may not accept the offer until the seller returns
- must forward the offer to the seller's attorney for consideration
- may accept the offer
- may sign a deed of conveyance if the seller does not return on time - correct answer ✅3. may accept the offer The buyer asks if there are any sex offenders in the neighborhood. The agent's MOST appropriate response would be to:
- go the state's website and obtain the information and give it to the buyer.
- ask the seller and then pass the seller's information along to the buyer.
- give the buyer the website address so the buyer can look up that information
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- contact the local police department to obtain the information - correct answer ✅3. give the buyer the website address so the buyer can look up that information A small broker committee in the local county has set up a new marketing idea. They will give every seller the same commission rate and it will not be negotiable. This will allow the customers to know exactly what it will cost to list a property. This marketing plan is:
- apostille
- price-fixing
- market allocation
- consumer protection - correct answer ✅2. price-fixing Which of the following property valuation estimates or reports would have to be prepared by a licensed or certified appraiser?
- a broker's price opinion
- a competitive market analysis
- a reconciliation report for an FHA loan
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- negotiating leases between the property owner and potential tenants - correct answer ✅3. selecting tenants to provide a diverse environment A homeowner has negotiated with a neighbor to obtain the permanent right to pass over the northern part of the neighbor's land to gain access to the river. He pays the neighbor $9,000 for the right of access and receives a deed. This is an easement
- in gross
- by necessity
- appurtenant
- by prescription - correct answer ✅3. appurtenant If an older building cannot be air conditioned, it is an example of
- economic obsolescence
- functional obsolescence
- physical deterioration
- external deterioration - correct answer ✅2. functional obsolescence
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if a buyer is interested in purchasing a one to four unit residential rental property based on monthly rental income what rent multiplier do they use?
- cost approach
- gross rent multiplier
- gross income multiplier
- comparative market analysis - correct answer ✅2. gross rent multiplier if a buyer is interested in purchasing a five or more unit commercial rental property (apartment and condominium) based on annual income what rent multiplier do they use?
- cost approach
- gross rent multiplier
- gross income multiplier
- comparative market analysis - correct answer ✅3. gross income multiplier Under what agreement, the broker does not receive a commission if the seller is the one to find a buyer for their property.
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actual sales price. Unlike the exclusive right to sell listing where your commission rate is set, this listings can be a gamble for the agent. For example: Let's say you go into a listing with an agent, and both of you agree that you want to sell the house for at least $332,000. That would be the base price. Anything above that sales price the real estate agent gets to keep. If they sell the house for $372,000, then their commission would be $40,000. On the opposite end, if they sell the home for $334,000, their commission would only be $2,000. - correct answer ✅Net Listing What is mutual assent. It is the time at which all parties acknowledge that they fully understand and agree to all of the terms of a contract
- Meeting of the Minds
- Agreement
- Contingency
- Sales disclosure - correct answer ✅1. Meeting of the Minds
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if a client signs an exclusive right to sell agreement and the agent brings a customer offering below the asking price. what is the client obligated to do?
- Agree to the offer
- Nothing. they are not obligated to do anything. They can Refuse the offer, but they have to pay the agent no matter who finds the buyer
- Make a counter offer
- Contingent agreement - correct answer ✅2. Nothing. they are not obligated to do anything. They can Refuse the offer, but they have to pay the agent no matter who finds the buyer the earnest money cannot be released until both parties provide written permission. The only other acceptable reason to release earnest money funds is under instruction from a court order. This usually occurs if the deal becomes contentious, or there are unforeseen issues. - correct answer ✅earnest money The Fair Housing Act requires all "covered multifamily dwellings" designed and constructed for first occupancy after March 13, 1991
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Which type of deed merely implies but does NOT specifically warrant that the grantor holds good title to the property? Trust deed Quitclaim Special warranty Bargain and sale - correct answer ✅Bargain and sale By giving a bargain and sale deed, the grantor implies ownership and possession the property, but there are no express warranties against encumbrances. Which of the following describes the act by which real property can be converted into personal property? Severance Accession Annexation Conversion - correct answer ✅Severance
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When we sever something, we cut it loose. Severing (felling) a tree from its roots converts it from realty—real(proper)ty—to personalty—personal(proper)ty. The process is called severance. Which of the following is NOT used by an appraiser applying the income approach to value? Annual Gross Income Capitalization Rate Annual Net Opportunity Income Accrued Depreciation - correct answer ✅Accrued Depreciation Depreciation is one of the calculations used in the replacement (cost) approach and not in the income approach. Which of the following describes a gross lease? In a gross lease, the tenant pays no part of the property's operating expenses other than utilities. - correct answer ✅In a gross lease, the tenant pays no part of the property's operating expenses other than utilities.
