Real Estate Licensing Exam Preparation, Exams of Nursing

Download Real Estate Licensing Exam Preparation and more Exams Nursing in PDF only on Docsity!

Wisconsin Real Estate Exam Prep

correctly answered rated A+ 2023

A seller signs listing contract with firm. Who is the agent who is the principal? - correct answer Seller is the principal, firm is the agent. If you are the listing agent and a buyer asks you to write an offer but does not sign an agency agreement, how do you describe the buyer? - correct answer Customer What kind of agency is the firm practicing if they represent just one party in a transaction? - correct answer Single Agency When can a firm engage in multiple representation? - correct answer When buyer and seller consent and receive full written disclosure. In what kind of transaction must a firm provide agency disclosure? - correct answer ALL TRANSACTIONS 1-4 family need to sign By when must a firm provide agency disclosure to client? Customer? - correct answer Before or at the same time executing client agency agreement. Before negotiations for customer. If you are a buyers agent by when must you disclose your agency relationship to seller or listing firm. - correct answer First chance you get, first contact when parties exchange information about transaction or the seller, showing of property, any other negotiation with seller or listing firm. What are listing firms agency disclosure obligations when working with a customer who wants to write an offer on a duplex? Commercial warehouse? - correct answer Must provide disclosure in ALL transactions, 1-4 family must sign, commercial no signature required. When does a property manager need to have a real estate license? - correct answer If they are negotiating terms or signing leases on behalf of the landlord.

If a licensee is representing a family member who is writing an offer, what are the disclosure obligations? Does it matter if they are a client or customer? - correct answer Disclose in writing and offer to purchase. Written consent from all parties. What are the licensees disclosure obligations if receiving a referral fee from lawn maintenance company? Referral between agents? - correct answer Before or at time licensee makes they referral, must disclose in writing that they will receive compensation from lawn care company. Licensees do not need to disclose referral fees for real estate services. When must a licensee disclose that they hold a real estate license when selling their own home? Commercial property owned by licensee? - correct answer First contact with party or agent where information is being exchanged, showing property or other negotiations. What tie in arrangements are legal? - correct answer If builder and licensee own property, the buyer has to use builder. Builder and licensee selling improved - need to pick from house and use builder. Deed restrictions — use builder to achieve uniformity. Who can retain unlicensed personal assistant? Licensed? - correct answer Anyone can hire unlicensed assistant. Firm can only hire licensed. When can agent agree to write an offer for a buyer on a property only if the buyer agrees to list buyers current property with agent? - correct answer NEVER-ILLEGAL Which agent duty survives the transaction? - correct answer Confidentiality What duties does a firm owe to all parties in a transaction? - correct answer Fair and honest treatment, disclosure of material adverse facts, confidentiality, provision of accurate market condition information, reasonable skill and care, accounting, objective presentation of offers. What are the additional duties owed to a client? - correct answer Loyalty, Advice, Disclosure, Obedience (Obligation), Negotiation

When a firm has a multiple representation relationship with designated agency, to whom will each salesperson provide information, opinions, advice? - correct answer Each client receives full negotiation services from their designated agent. How should a client withdraw consent to a multiple representation relationship? - correct answer In writing. Amend agency agreement, terminate agreement and be a customer or hire a different firm. How should a client waive a firms duty of negotiation? - correct answer In writing. Which type of agency representation is created with written words? - correct answer Express agency Which type of agency relationship gives an agent the authority to represent a principal in more than one transaction? - correct answer General agency What are the seven different ways to terminate an agency relationship? - correct answer Death or Incapacity, Destruction or Condemnation of Property - Eminent Domain, Expiration of Term of the Contract, Mutual Agreement, Breach, Operation of Law, Completion. Which agency contracts do not require the seller to pay a commission to the listing firm when the buyer is procured? - correct answer Open Listing Contract / Exclusive Agency What type of listing contract is illegal in Wisconsin? - correct answer Net Listing Contract What are the six requirements to create a valid agency agreement? - correct answer Description of Real Estate, Statement of Price, Statement of the Commission, Statement of the Term, In Writing, Signed by the Person Who Will Pay the Commission (doesn't have to be buyer or seller). In an unmodified WB-36 Buyer Agency / Tenant Representation Agreement, does a buyer's firm have to be directly involved in negotiations in order to earn a commission? - correct answer NO, property was found, buyers firm earns commission. What are the three remedies if an agent breaches and agency agreement? - correct answer Rescission, Forfeiture of Commission, Sue for Damages

Who are the parties to the listing contract? - correct answer Seller & Firm How many days does a firm have to deliver to the seller the list of protected buyers? - correct answer 3 Days The seller accepts the responsibility for preparing the property to minimize the likelihood of injury, damage and/or loss of personal property. When will a firm be held responsible? - correct answer In the case of negligence or wrongdoing Once a buyers firm earns compensation, when is it due and paid? - correct answer At the earlier of closing or date set for closing even if transaction does not close, unless otherwise agreed in writing. How long is the listing period extended for protected buyers in the WB-1 Residential Listing Contract Extension of Listing Provision? - correct answer 1 year How many days does the seller have to provide the new listing firm with the previous listing firm's protected buyer list? - correct answer 7 days (Seller Seven) On what line of the WB-1 Residential Listing Contract does it state that they buyer may accompany inspectors? - correct answer Lines 260- when is a licensee associated with a firm allowed to advertise without mentioning the firm's name in the ad? - correct answer Only if you are advertising for your own personal rental property. What must a licensee do with the results of the third-party's inspection report? What must a licensee do if the licensee's own knowledge or observation of the property is contradictory to the third party report?

• correct answer Make sure it's provided to all the parties. Disclose as material adverse fact if contradictory. The purchaser of a condominium must receive the disclosure documents no later than: - correct answer Within 10 days of accepting offer, no later than 15 days prior to closing.

A seller of what type of property is subject to the Real Estate Condition Report? - correct answer Residential Sellers, Sellers of Vacant Land (Disclosure Report) What exemptions are recognized under the Real Estate Condition Report law? - correct answer Personal representative that has never lived on the property, sheriff sale, new construction that has never been inhabited or if it's exempt from transfer fee. A licensee is showing a property to a buyer and observes what may be a material adverse fact. The seller did not mention the problem in the sellers real estate condition report. What should the licensee do? - correct answer Disclose in writing to ALL parties. Wisconsin administrative rules specifically state a licensee is NOT required to disclose what information?

• correct answer Location of group homes, nursing homes, community based residential facilities, stigmatized properties (scene of a crime), sex offenders (as long as the department of corrections information has been provided) If a buyer does not receive a Real Estate Condition Report within 10 days of acceptance, how many days does the buyer have to rescind the contract? How should the buyer rescind? - correct answer 2 BUSINESS days to rescind in WRITING A seller becomes aware of a defect after an Offer to Purchase has been accepted. Does the seller have to amend the Real Estate Condition Report and deliver a copy to the buyer? - correct answer NO, the offer to purchase controls. A seller of target housing wants to accept an offer without the attached lead based paint attachment. The licensee tells the seller that is fine. Is this permissible under the LBP disclosure law? - correct answer NO, must have disclosure. It is illegal. Which in-use underground storage tanks must be tightness tested every two years? - correct answer 1,100 gallons or greater Asbestos is considered to be most dangerous when it is: - correct answer In it's friable state. Fair housing laws do not apply to what type of properties: - correct answer Commercial & Industrial

What are the 13 protected classes under Fair Housing laws? - correct answer Race, Color, Religion, Nationality Origin, Sex, Familial Status, Disability, Ancestry, Age, Sexual Orientation, Marital Status, Lawful Source of Income, Victim of Domestic Violence / Abuse / Assault. Municipality can add their own class When is it permissible to mention a protected class in an advertisement? - correct answer If it's affirmative marketing designed to attract person's who wouldn't ordinarily apply. IE: ADA Compliant, Accessible, Grab Bars. Telling existing homeowners that a certain class of people will lower property values in an effort to obtain listings is a form of: - correct answer Block Busting - ILLEGAL Under fair housing when is it permissible to refuse to sell a property to someone because of age? - correct answer If it qualifies as housing for older people (senior housing), can refuse to rent/sell if the applicant is younger than required age. Under fair housing, when can an advertisement contain a gender preference? - correct answer If there is a shared living space (kitchen, bath) Who is responsible to provide and pay for auxiliary aids and services? - correct answer Brokerage firm Describe the process of market analysis and how it establishes market value: - correct answer Get info on subject property, look for comparable (active, pending, expired, completed), use data to come up with the list price or range. A licensee is trying to determine value for a property. The subject property is surrounded by smaller properties that are not in as good of shape. The surrounding properties are bringing the value of the subject property down. This is an example of: - correct answer Regression The primary principal of value used by a licensee when conducting a marketplace analysis is: - correct answer Substitution

Which party tends to be more concerned with the seller's opinion of value, the appraiser or the licensee? - correct answer The licensee What rights are in the bundle of legal rights? - correct answer Right to Dispose of It, Right to Encumber It, Right to Exclude, Right of Possession, Right of Quiet Enjoyment, Right of Control. What forms of ownership allow title to pass to the surviving owner(s) without probate? - correct answer Joint Tenancy, Survival Ship Martial Property A condominium unit is generally held under what type of ownership? - correct answer Tenants in Common An owner of property receives a proprietary lease under what form of ownership? - correct answer Cooperative What is a limited common element? - correct answer Something that is not the unit, use of "some" owners. (Parking space, balcony) What is a leasehold estate? - correct answer If you rent / lease property What type of property is automatically included in the purchase price of real estate - personal or real? - correct answer Real Property Explain how title insurance provides evidence of title - correct answer Insurance policy proves that title is marketable. How does an abstract protect a purchaser from gaps in the chain of title? - correct answer It does NOT. It notes them if there is a history. What is the benefit to the purchaser in receiving gap endorsement? - correct answer Rider that covers the gap from title insurance commitment to deed closure. Any claims are covered that happen in between that time.

Which type of deed offers the most comprehensive guarantee of title? - correct answer Warranty Deed What type of lien attaches to both real and personal property? - correct answer General Lien What is the purpose of a comprehensive plan? - correct answer Guide & Coordinate Growth, Protect Health & Safety, Harmonious Development, Existing & Future Needs How does one determine the permitted uses for a particular area? - correct answer Zoning ordinances. What type of zoning allows land to be used in a way that was already in existence when a zoning ordinance was enacted, but does not comply with current zoning regulations? - correct answer Non - Conforming use / Grandfathered A vacant parcel of land was zoned residential has been re-zoned to conservancy. What type of zoning has occurred? - correct answer Down Zoning An owner of a property would like to transfer title. Will the existing dead conditions stay in place or are they terminated upon transfer of title? - correct answer Stay in place - runs with the land. Describe a planned unit development - correct answer Special zoning district for that subject property. The buyers have a home inspection. The buyers are wondering if some of the information disclosed on the report constitutes a defect and if they should give notice to the seller. Can the licensee give them advice on whether or not there is a defect? - correct answer NO, licensee cannot give advice. What must occur before a licensee gives a third-party buyer's offer to a party holding a right of first refusal? - correct answer Disclosure in writing that there is someone who holds right of first refusal on the property. When is a licensee prohibited from submitting a personal offer to purchase on a property? - correct answer If there is a pending offer and licensee has knowledge of ANY of the terms.

A buyer submits earnest money with the Offer to Purchase. The offer is rejected. To whom is the earnest money disbursed? - correct answer Right back to the buyer. When can licensee refuse to draft or submit any offer? - correct answer Only if it's contrary to seller's instructions. Any income, taxes, or expenses shall accrue to the seller and be prorated through: - correct answer Through the day prior to closing. In the inspection section of the WB-11 Residential Offer to Purchase, an "inspection" is defined as an observation of the property which does not include testing of the property other than: - correct answer Leaking Carbon Monoxide, Leaking LP Gas, Leaking Natural Gas-used as fuel source. If "time is of the essence" does not apply to a date or deadline, then when must performance occur before a breach? - correct answer Reasonable time The party that issues the loan is called the: - correct answer Lender Name for borrower - correct answer Mortgager Name for lender - correct answer Mortgagee After a borrower pays off a loan, what should the borrower expect to be recorded by the law? - correct answer Satisfaction of Mortgage To originate a loan at a rate lower than being charged on the open market, a buyer most likely - correct answer Buy points Fannie Mae, Ginnie Mae, and Freddie Mac are part of: - correct answer The Secondary Market A borrower is able to originate a loan that is amortized for 30 years, however, the borrower only has five years to pay the loan back. The borrower received what type of loan? - correct answer Balloon Loan

During a land contract, what type of title does the seller hold? What type of title does the buyer hold? - correct answer Seller - Legal Title / Buyer - Equitable Title Private mortgage insurance is typically required when a borrower does not have what percentage? - correct answer 20 percent Are FHA loans guaranteed or insured? - correct answer FHA - Insured / VA - Guaranteed Provide an example of secondary mortgage fraud: - correct answer Loan made fraudulently on primary market, sold on secondary market. What federal legislation prohibits the payment of kickbacks? - correct answer RESPA What does RESPA stand for? - correct answer Real Estate Settlement Procedures Act What form would a licensee use to change a term of the sales contract? - correct answer WB- Amendment to Listing Contract What form would a licensee use to notify a secondary buyer that his offer was being elevated to primary position? - correct answer WB-41 Notice Relating to Offer to Purchase What is the form a seller would use to negotiate with more than one buyer at the same time? - correct answer WB-46 Multiple Counter Proposal The seller issues the buyer an amendment, which the buyer rejects. What is the status of the contract? - correct answer NO CHANGE - Amendment only changes if both parties sign What is the legal effect of a counter offer? - correct answer Rejection of the offer-presentation of new offer. How is a counter offer numbered? - correct answer Sequentially

What form will the parties use to mutually agree to cancel and release each other from an agreement? - correct answer WB-45 Cancellation Mutual Agreement Release Which party or parties sign the WB-41 Notice Relating to the Offer to Purchase? - correct answer ONLY parties sending out the notice Which party is obligated under the WB-24 Option to Purchase? - correct answer Seller Which form transfers the personal property interest of one person in a real estate transaction? - correct answer WB-25 Bill of Sale Give an example of a bilateral contract: - correct answer Listing Contract, Offer to Purchase Give an example of a unilateral contract: - correct answer Option - One Promise Given (Seller Promise) Upon reviewing an offer to purchase submitted to her, Mrs. Seller signed her name and her husbands name. She than delivered the accepted offer to the buyer. Is the contract valid? - correct answer NO, husbands signature was forged. What are the buyers remedies against a seller that has breached a contract? - correct answer Sue for Specific Performance, Sue for Damages, Request return of Earnest Money or Sue for Damages & Earnest Money According to the terms of the offer to purchase may a seller keep the buyer's earnest money and sue the buyer for damages? - correct answer NO, selling is giving up the right. Liquidated damages. A buyer does not deposit earnest money as specified by the sales contract. What is the status of the sales contract? - correct answer Voidable, seller can choose to ignore breach. When must client funds be deposited into a broker's trust account? - correct answer Within 48 hours of receipt

If the parties to a transaction want to hold their earnest money in an interest bearing account where the buyer benefits from the interest, who can draft the agreement? - correct answer Buyer and seller can set it up on their own. If the property is listed earnest money deposits must go into: - correct answer The listing firms trust account. The interest from an interest bearing real estate trust account is annual remitted to: - correct answer The Department of Administration If the firm receives funds which cannot be deposited by the firm, the firm shall: - correct answer Either forward the funds to payee or return to whomever paid within 1 business day. If a licensee receives an item, for example a painting, that cannot be deposited as earnest money, then the licensee: - correct answer Licensee can NOT hold this. What section in the WB-1 Residential Listing Contract requires licencees to disclose commission offered to cooperating firms? - correct answer Compensation to Others A neighborhood is improved with new curbs and gutters. If the curbs and gutters were funded by a special assessment, which home would most likely be charged the most? - correct answer A house on a corner lot A borrower is obtaining an adjustable rate loan where the initial rate is fixed for three years. After the initial period, the loan will adjust every six months. What is the borrower's initial principal and interest payment based on? - correct answer The interest rate at which the ARM originated. The WB-11 Residential Offer to Purchase states that title evidence shall be given by the seller in the form of a/an: - correct answer Owners policy of title insurance Can a licencee write an offer for a buyer without attending a showing? - correct answer A licencee has a duty to inspect, it is not illegal but not advised to do so.

According to the WB-11 Residential Offer to Purchase who is responsible to pay special assessments levied against seller's property after the date of the offer but prior to acceptance? - correct answer Buyer

• Offer to Purchase holds strong After entering into a sales contract a seller discovers a defect on the property, the: - correct answer seller must comply with the terms of the sales contract. A buyer may be protected under a previous firm's listing contract in all of the following ways EXCEPT - A. buyers submitted an offer to purchase B. the buyer discussed the potential terms of purchasing the property directly with the seller C. the buyer saw the property at an open house D. the buyer attended an individual showing. - correct answer C. Buyer saw the property at an open house Which of the following is NOT a right associated with property ownership: A. the right to use the property as collateral for a debt B. the right to sell or convey the property C. the right to use the property in any manner desired by the property owner D. the right of enjoyment. - correct answer C. THE RIGHT TO USE THE PROPERTY IN ANY MANNER DESIRED BY THE PROPERTY OWNER According to the terms of the WB-1 Residential Listing Contract, how many days does the seller have to provide a new listing firm with the former listing firm's list of protected buyers? - correct answer SEVEN DAYS - SELLER SEVEN Who must receive a copy of the signed offer to purchase? - correct answer The seller and buyer Deadlines expressed as a number of days from an event, such as acceptance, are calculated by excluding the day the event occurred and by counting subsequent calendar days. When does acceptance occur? - correct answer When all parties have signed a copy of the offer to purchase. Which of the following situations requires a written earnest money disbursement agreement prior to disbursement of funds: A. seller has not accepted the offer and he offer has expired B. seller rejects the offer C. a party makes a counter offer not acceptable to the other party D. a buyer is not able to obtain financing - correct answer D. A BUYER IS NOT ABLE TO OBTAIN FINANCING

What type of mortgage law is recognized in Wisconsin - correct answer Lien Theory - Under lien theory the buyer has legal title and the lender has the right to place a lien on the buyer's property given as collateral for the loan. Jessica made her final mortgage payment to the Bank of Money. Bank of Money will execute WHAT in order to reflect that Jessica has paid off her mortgage? - correct answer Satisfaction of Mortgage A licencee offers payment for a buyer's home inspection. What is this offer from the licencee to the buyer called? - correct answer An incentive Where should a property owner who holds a real estate licence place security deposits? - correct answer The property owner may place them into a real estate trust account or shall provide in a lease for security deposits to be held in an account maintained in the name of the owner/owners. Which of the following is not viewed as an encumbrance that needs to be disclosed to a buyer: A. a recorded easement B. back taxes that the seller will be paying off at closing C. a recorded right of first refusal D. a neighbors encroaching fence. - correct answer B. Back taxes that the seller will be paying off at closing - any encumbrance that will be REMOVED upon closing does not need to be disclosed. What term describes a debt secured by an item of personal property? - correct answer A security interest A rural property is currently being used as cropland. However the assessed value reflects the property's worth as if it was being used for residential housing. The principle of value being applied is: - correct answer Highest and Best Use - Most profitable use for which the property is adapted. For how long must a Wisconsin firm retain transaction documents related to a transaction that did NOT close? - correct answer Two years from the date the listing contract expired The financing contingency would be removed if what would occur? - correct answer The seller receives a loan commitment subject to conditions.

Which of the following is NOT a penalty for a licensee who breaches a duty to a client A. loss of MLS membership B. forfeiture of commission C. rescission of the contract D. disciplinary action under real estate law - correct answer A. Loss of MLS Membership - Beth, Jenny and Molly all purchased a farm together. The deed listed each of their names. Which of the following are they presumed to have taken A. tenants in common B. In severalty C. joint tenancy D. tenants by entirety - correct answer A. Tenants in Common Which of the following creates an express agency: A. counter offer B. disclosure to customers form C. offer to purchase D. property management agreement - correct answer D. property management agreement - is a written agency agreement between a licensee and a property owner. Which of the following is NOT considered real property: A. growing shrubs B. farm equipment C. built in appliance D. fences - correct answer B. farm equipment - Farm equipment, because it is NOT ATTACHED is not considered real property. It's considered personal property like a car, snowmobile, etc. Which of the following allows a property owner to use property in a way that was once allowed but is no longer permitted under current zoning regulations? - correct answer Non Conforming Use A licensee with a plumbing background notices a defect with a sellers plumbing that is not mentioned in the Real Estate Condition Report. What should the licencee do? - correct answer Inform the buyer and seller in writing of the defect. When purchasing the property, the owners disclosed that they received permission from the local municipality to build their deck on the setback lines. This is an example of what? - correct answer Variance - grants permission to deviate from zoning restriction How are the listing contract and the buyer agency agreement similar? - correct answer They satisfy the minimum requirements to create a lawful agency relationship and ensure that the firm has the right to enforce its commission with a court. If property is held in joint tenancy, the heirs of the deceased joint tenant have: - correct answer no interest - the surviving joint tenants become owners

Which of the following is NOT typically considered client funds: A. finder's fee B. security deposits collected by a property owner C. advance fees D. earnest money deposits - correct answer B. security deposits collected by property owner - If the property owner was a licensee than the security deposits would be real estate trust funds. At what point in the real estate transaction does a buyer receive equitable title - correct answer When all contingencies have been removed. A buyer's licensee is representing two separate buyer's. Each buyer is interested in the same property. How should the buyer's licensee proceed? - correct answer The licensee should draft competing offers on behalf of each buyer. A real estate agent signs a contract with a non-licensed person that agrees to pay them $50 for every referral. What type of contract is that? - correct answer VOID Binding acceptance occurs - correct answer When all parties have signed the identical copies of the offer to purchase and it's delivered to the party who made the offer. If a buyer wishes to give notice of defects a buyer MUST provide: - correct answer A copy of the home inspector's report with the Notice of Defects When comparing an appraisal to a market analysis which of the following is most correct? - correct answer An appraisal justifies value by using past events. Who signs a deed? - correct answer The seller If the seller does not accept an offer that included earnest money, the listing firm MUST: - correct answer Promptly disburse the money to the person(s) who paid the money A buyer orders a title insurance policy. The title insurance provider searches the public record for the title examination. The title company notifies the buyer in writing of the condition of the title with the: - correct answer Title Insurance Commitment

Which of the following is established by the time and date a document was recorded: A. quit claim B. marketable title C. priority D. chain of title - correct answer Priority An offer to purchase for the sale of a home meets all of the requirements established in the listing agreement. Which of the following statements is true: A. owner must sell property to buyer B. owner may reject the offer C. listing contract would be terminated D. owner must sign the offer to purchase or be sued for specific performance - correct answer B. The owner may reject the offer. The Real Estate Settlement Procedures Act regulates: - correct answer New first mortgages on residential 1-4 family transactions How must a supervising broker delegate supervision to another broker? - correct answer In a written statement signed by both brokers. Which of the following is NOT an essential term of a real estate sales contract: A signature of both parties B. inspection contingency C. identity of the parties D. price - correct answer B. Inspection contingency How much are mortgage points? - correct answer Each point costs 1% of the loan balance. How is transfer fee calculated? - correct answer Transfer fee is .30 cents for each $100 of value. Round purchase price up to nearest 100. What form would be used to allow a seller to negotiate with more than one buyer at a time? - correct answer Multiple counter proposal What document does a seller use to convey ownership of personal property to a buyer? - correct answer Bill of Sale The right of a utility to install a gas line across another's property: - correct answer easement The way a title appears on public record: - correct answer Record

If the buyer would like the buyer's firm to be paid by the seller, they buyer: - correct answer Must authorize the authorize the payment of commission from seller to buyer's firm in the buyer agency agreement. How do you calculate the monthly mortgage payment for a loan of 120,000 at 9 percent for 20 years. The factor is 9. - correct answer 120,000 x 9 = 1,080,000 1,080,000 / 1000 (multiply loan amount by the factor and divide by $1,000) The financing contingency would be removed if: - correct answer The seller received a loan commitment subject to conditions. Why are instruments affecting real estate such as deeds and easements recorded in the county where the property is located? - correct answer Recording gives constructive notice to the world of rights and interest in a parcel of real estate. What is the transfer fee on a purchase price of $475,450 - correct answer 475,450 x .003 = $1426. What is NOT an essential term of the real estate sales contract: - correct answer Inspection contingency Two weeks before closing a tornado causes damage. What must a seller do? - correct answer Notify the buyer in writing and let the buyer decide what happens next. Transfer tax on 91,575 - correct answer Round up to 91,600 x .003 = 274. When renting commercial property to tenants, the property owner or manager needs to be aware of: - correct answer Any local equal opportunity ordinances that may affect commercial or industrial properties. A licensee that is writing an offer for a buyer-customer on another firm's listing is: - correct answer selling licensee Which type of property is automatically included in real estate? - correct answer Real Property (Land, Structure, Fixtures) ie: Trees, buildings, etc.

Personal property is ONLY INCLUDED if it is... - correct answer Written in the OFFER TO PURCHASE What is achieved by recording a deed to a property? - correct answer Constructive Notice of Ownership How does the title insurance serve as evidence of title? - correct answer Protects the policy holder from defects in the title. What protection does an abstract of title provide to a property owner? - correct answer An abstract of title does not provide coverage for gaps in title or clouds on title. What kind of insurance protects the property owner from clouds or claims on the title that might appear between the date of the title commitment and the date showing the new owner recorded? - correct answer Gap endorsement - Gap insurance Another name for title commitment? - correct answer Preliminary report What type of lien attaches to both real and personal property? - correct answer General Lien - a specific lien attaches only to the property securing the debt. Old fashioned term for mortgage on personal property, such as a car - correct answer "Chattel Mortgage" Which deed offers the most comprehensive guarantee of title? - correct answer Warranty Deed Which deed offers the least guarantee of title? - correct answer Quit Claim Deed Name three private land use controls: - correct answer Restrictions, Deed Conditions, Covenants Name Four Public Controls of Permitted Use: - correct answer Permitted Use, Conditional Use, Nonconforming Use, Variance

What is established by the time and date a document was recorded? - correct answer Priority Transfer Tax - correct answer Paid on the original amount, round to nearest hundred, multiply by. How does a title appear on public record? - correct answer Record How should earnest money be handled by cooperating firms - correct answer Selling licensee should have all earnest money checks paid to listing firm. A duty owed ONLY to a client - correct answer Loyally represents interest Title company notifies buyer in writing of condition of title with the: - correct answer Title insurance commitment If buyer has given notice of defects and the seller does not have the right to cure, what is the status of the contract? - correct answer Null and Void Landlords deadline for returning a security deposit - correct answer 21 days after tenant vacates Title insurance does not insure over: - correct answer Defects found in public records Earnest money is payable to: - correct answer Listing firms trust account Binding acceptance occurs: - correct answer When all parties have signed an identical copy of the offer to purchase and it has been delivered back to the party who made the offer. What is the purpose of a deed? - correct answer Transfer legal title from grantor to grantee PUDS - correct answer planned unit developments

Owner of a property would like to transfer the title? Will deed conditions stay in place or are they terminated upon transfer of title? - correct answer The existing deed conditions "run with the land." They will survive the transfer. What is a Planned Unit Development (PUD)? - correct answer Zoning district written and negotiated specifically for the subject property. May allow a builder to cluster buildings together in a way that otherwise would not be allowed under regular zoning ordinance. What is a deed restriction? - correct answer A private land use control (all houses painted one color, no play structures). Violation may result in fine or injunction. What principal of value represents the effect on a property when surrounding properties are not of similar quality or condition? - correct answer Regression What principal of value is relied on most by a licensee conducting a market analysis? - correct answer Substitution Difference between market value, appraised value, assessed value. - correct answer Market value - what you think a property will sell for. Appraised value - what the appraiser determines based on past events and is frequently used by a lender. Assessed value - used for property tax calculation. Purchasing Points - correct answer Each point is 1% of the value of the loan. A loan amortized over a longer period than the actual length of the loan? - correct answer Balloon loan - May be calculated as a 30 year loan but payoff is in 5 years. Has a large payment due at the end of the loan life. What type of title does a buyer have if they purchased under land contract? - correct answer Equitable title What kind of title does seller have if they sold under land contract? - correct answer Legal title

What is loan to value ratio? - correct answer Ratio of a loan to the value of the property. If a buyer has a 20% down payment the loan to value ratio is 80% How much of a down payment does a buyer need to have in order to avoid paying PMI? - correct answer 20%, usually will qualify for a conventional loan. FHA loans guaranteed or insured? - correct answer Insured VA loans guaranteed or insured? - correct answer Guaranteed In which transactions must a firm provide agency disclosure to a client? - correct answer All transactions In what transactions should a firm ask for acknowledgement of the agency disclosure? - correct answer 1-4 family transactions Type of agency created with words - correct answer Express agency Type of agency created unintentionally - correct answer Implied agency Type of agency that give an agent to represent a principal in more than one transaction? - correct answer General agency (Special agency is one specific transaction) Listing contract where firm earns a commission no matter who procures the buyer? - correct answer Exclusive right to sell Listing contract where firm does NOT earn a commission if seller procures buyer? - correct answer Exclusive agency Who are the parties to the listing contract? - correct answer seller and listing firm

When does a buyers firm earn commission? - correct answer It's due at closing or the date set for closing. Seller of what kind of property must complete the real estate condition report? - correct answer Vacant land, residential Deadline for providing a buyer the real estate condition or disclosure? - correct answer 10 days How many days to rescind if there was no real estate condition report provided? - correct answer Two business days, in writing