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Solution to Real PSI exam
According to the CAN SPAM Act, every email advertisement for real estate services must do all of the following EXCEPT advise the recipient that it will take 180 days to remove the recipient's name from this email list Which disclosure is the most commonly required in a residential real estate sale Seller's property disclosure A complaint must be filed w/ HUD within what period of time after a fair housing violation has occurred? C) 1 year A MAJOR difference between freehold and nonfreehold estates is that all nonfreehold estates are estates for a fixed term A buyer's agent is NOT permitted to tell a buyer that: a former occupant of a property had AIDS A couple applied for a loan to finance the purchase of a new home. What Federal Act was created to ensure that they have knowledge of all closing costs?
Real Estate Settlement Procedures Act A property was listed w/ a broker, but the owners advertising the property found a buyer and negotiated the sale themselves. After the closing, the owners paid a full commission to the broker. The broker MUST have had an exclusive right to sell A contract is terminated if it is impossible for one of the parties to perform A low loan-to-value ratio indicates a higher equity in the property Negative amortization is an increase in mortgage debt that occurs when the monthly payments is not large enough to cover the interest due During a broker meeting, a broker states that a competitor is NOT charging enough commission. The other brokers should remove themselves from the meeting In 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 Which of the following statements in an advertisement would be an example of non-discriminatory language under HUD's Fair Housing Advertising Guidelines? "female seeking female roommate" A buyer has specified in writing an interest in purchasing a property without any legal obligation. This is referred to as
If there is a cloud on the title to a property, the best means of eliminating it is a suit to quiet title The clause designed to ensure that a broker will receive a commission if negotiations w/ a ready, willing, and able buyer are completed after the listing has expired is called an extension or "tail" clause A 15 year old inherited some property from a grandparent. The 15 year old put the property on the market and accepted an offer. Could the 15 year old legally reverse the agreement to sell? Yes, the contract is voidable because the seller is a minor Neighbors Sam and Molly share the use of Sam's driveway, which is entirely on Sam's property. Sam wants to have control of driveway use in case Molly sells her home, and Sam does not like the new owner. Sam should provide Molly with a license A lender requested that the entire loan balance be paid immediately because the property on which the loan was made had been sold. What clause in the mortgage loan allows this? Alienation clause In estimating the value of a 50-unit apartment complex, which of the following approaches would yield the most accurate estimate? income The person conveying an interest ownership in real property is known as the
grantor What type of mortgage loan is likely to be tied to a publicly available index that is mutually acceptable to the lender and the borrower? Adjustable rate mortgage A MAJOR difference between freehold and nonfreehold estates is that all nonfreehold estates are estates for a fixed term Which of the following statements in an advertisement would be an example of non-disciplinary language under HUD's Fair Housing Advertising Guidelines? female seeking female roommate The major advantage of ownership in severalty is flexibility in making decisions A broker lists several newly constructed affordable homes of a builder client. The broker wishes to advertise the homes targeting first time buyers. Which of the following financing terms in the advertisement would trigger further financial disclosure requirements under the Truth in Lending Act? Buy for less than $5,000 down w/ monthly payments under $ What possible consequence would the knowledge of a Megan's Law registrant in the neighborhood cause? Values in a single family, owner occupied neighborhood may decline due to the presence of a convicted sex offender A letter of intent forms a basis for further negotiations
With reference to a loan, the principal is the total amount borrowed The legal remedy for canceling a contract and restoring the parties to their original positions is called rescission The sellers have listed their property for sale because they are in a difficult financial situation and would like to get the house sold quickly. If one of the other sellers in the area asks why that client is selling, the listing agent should respond by explaining that they are looking to sell their house The agent owes care, accounting, confidentiality, and disclosure to the client If there is a cloud on the title to a property, the best means of eliminating it is a suit to quiet title The purchase and sales agreement provides for the release of earnest money to the seller after the buyer's property inspection. The seller requests the earnest money prior to the property inspection. The broker should refuse to release the earnest money An important function of zoning laws is to ensure conforming land use What is required to establish mutual assent? meeting of the minds
In a mortgage/trust deed form of loan, the terms of payment and interest rate would be found on the promissory note A competitive market analysis is used to estimate the most probable price a property will bring An escrow or trust account is often held by a lender to pay property taxes and insurance payments
