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A broker arrives to present a purchase offer to an invalid, and finds the woman's son and his wife present as well. In the broker's presence, the couple persistently urges the invalid to accept the offer, even though it is much lower than the price she has been asking for her home. If the invalid accepts the offer, she may later claim that: the broker defrauded her by allowing her son and his wife to see the purchase offer he brought to her. she was under undue duress from her son and daughter-in- law and that, therefore, the contract is void. her consumer protection rights have been usurped by her son and daughter-in-law. There is nothing that the invalid can later claim. the broker should not have brought her such a low offer for her property. - correct answer ✅she was under undue duress from her son and daughter-in- law and that, therefore, the contract is void. Created by Congress to promote an active secondary market for home mortgages, Fannie Mae and Freddie Mac purchase loans that
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meet specific underwriting standards such as loan size, documentation, and payment to income ratio. The loans that Fannie Mae and Freddie Mac are eligible to purchase are commonly referred to as: nonconforming conventional loans. conforming conventional loans. None of the choices are correct. FHA loans. government sponsored loans. - correct answer ✅conforming conventional loans. When a buyer signs an offer to purchase a property, the broker receives a monetary amount from the purchaser of 5 or 10 percent of the purchase price. This deposit is commonly referred to as the: commission. earnest money. closing cost. amount that is charged to the buyer at settlement.
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Real Estate Licensees Matter (RELM) Real Estate Educators Association (REEA) - correct answer ✅National Association of REALTORS® (NAR) While fee splitting between cooperating real estate brokers is permitted, RESPA explicitly prohibits such actions as rebating part of the title insurance premium to the lender who recommended or required the title insurance. These unearned fees are commonly referred to as: kickbacks. damages. specific performance dues. commissions. None of the choices are correct. - correct answer ✅kickbacks. Two salespeople working for the same broker obtained offers on a property listed with their firm. The first offer was obtained early in the day. A second offer for a higher purchase price was obtained later in the afternoon. The broker presented the first offer to the
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seller that evening. The broker did not inform the seller about the second offer so that the seller could make a decision about the first offer. Which of the following is TRUE? None of the choices are true. The broker has no authority to withhold any offers from the seller. The broker's actions are permissible, provided the commission is split between the two salespeople. The broker was smart to protect the seller from getting into a negotiating battle over two offers. After the first offer was received, the broker should have told the salespeople that no additional offers would be accepted until the seller decided on the offer. - correct answer ✅The broker has no authority to withhold any offers from the seller. In an open-listing contract, an individual broker is entitled to a commission if: she procures the buyer of the property.
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When a buyer signs an offer to purchase a property, the broker receives a monetary amount from the purchaser of 5 or 10 percent of the purchase price. This deposit is commonly referred to as the: title insurance premium. commission. the big enchilada. closing cost. earnest money. - correct answer ✅earnest money. Both parties to a valid and enforceable contract must provide consideration. In a contract for the sale and purchase of real estate, which of the following depicts the seller's consideration? None of the choices are correct. A meeting of the minds with the buyer The option to present a counteroffer The property to be given up
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The money or goods that constitute the purchase price - correct answer ✅The property to be given up An errors and omissions insurance policy would most likely offer protection against an allegation of: None of the choices are correct. forgetting to enter the code to turn on the burglar alarm after showing the property. antitrust activity. fraudulent activity. not showing the property to Latinos. - correct answer ✅forgetting to enter the code to turn on the burglar alarm after showing the property. An 8-year old 2,100 sf house has a replacement cost of $55/sf. The land is valued at $100,000 and the depreciation rate is 2% per year. What is the value of the property using the cost approach? $233, $197,
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None of the choices are correct. There can be no disclosure until the first substantive meeting. Any information that you give me at this time is not considered to be confidential. Although we haven't met, you can trust me with your financial information. I cannot tell you anything about the home you are calling on until we meet in person. - correct answer ✅Any information that you give me at this time is not considered to be confidential. A real estate salesperson who is an independent contractor receives: Multiple Choice a monthly salary or hourly wage. negotiated commissions on transactions. a company-provided automobile. company-provided health insurance. None of the choices are correct. - correct answer ✅negotiated commissions on transactions.
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There are three basic types of listing contracts. These include all of the following EXCEPT: Multiple Choice All of the choices are correct. multiple listing. exclusive right of sale listing. open-listing. exclusive agency listing. - correct answer ✅multiple listing. Placed under the umbrella of the Consumer Financial Protection Bureau as part of the Dodd-Frank Act of 2010, the Real Estate Settlement Procedures Act (RESPA) requires loan settlement information to be prepared on a special form known as the: Closing disclosure. Servicing agreement. None of the choices are correct. certificate of occupancy.
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None of the choices are correct. An accessible building entrance or an accessible route for persons in wheelchairs? Light switches, electrical outlets, thermostat, and other environmental controls in accessible locations Accessible and usable public and common use areas? - correct answer ✅All of the choices are correct. All of the following are necessary for a lease to be valid, except: Multiple Choice All of the choices are correct. tenant's contact phone number, or address, in the event of an emergency. statements to the effect that the tenant agrees to lease the property for a specified period and that the owner and the tenant agree to the terms of the rent. consideration. written leases, if longer than one year, in most states. - correct answer ✅tenant's contact phone number, or address, in the event of an emergency.
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While there are several conventional approaches used to estimate the market value of real estate, which of the following is typically considered the most reliable approach? sales comparison approach balance sheet approach cost approach investment approach income approach - correct answer ✅sales comparison approach Which of the following is one of the terms of a real estate contract? Multiple Choice Mechanical equipment must be in good condition. All of the items are terms. Price to be paid. Title must be marketable.
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a fiduciary. a trustee. - correct answer ✅a fiduciary. A lender takes certain factors into consideration when deciding whether to grant a borrower a mortgage loan. All of the following are legitimate factors EXCEPT: Multiple Choice None of the choices are correct. the amount of the borrower's income. the marital status of the borrower. credit report inquiries. credit use. - correct answer ✅the marital status of the borrower. Federal income tax regulations allow homeowners to reduce their taxable income by amounts paid for: Multiple Choice hazard insurance premiums.
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repairs and maintenance. real estate taxes. sewer and trash. principal portion of mortgage payment. - correct answer ✅real estate taxes. Based on your understanding of the supply and demand dynamics of user/space markets, an increase in demand for leasable space would, all else equal, cause which of the following effects? rental rates fall and property values increase rental rates rise and property values increase rental rates rise and property values decrease rental rates fall and property values decrease - correct answer ✅rental rates rise and property values increase The buyers paid cash for their new home. At the same time, they purchased flood insurance. At what time will the flood insurance be effective? Multiple Choice
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A creditor is permitted to refuse to make a loan to an applicant who is: Multiple Choice the recipient of a public assistant program. None of the choices are correct. over the age of 70. not married. too young to legally sign a contract. - correct answer ✅too young to legally sign a contract. A broker advertises the commission rates that her firm charges sellers. This advertising is: Multiple Choice unethical, but legal. illegal under antitrust laws. prohibited by multiple listing services. permitted by antitrust laws. None of the choices are correct. - correct answer ✅permitted by antitrust laws.
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In a closing statement, an accrued item is: Multiple Choice a proration. None of the choices are correct. an item paid in advance. an item that is unpaid but is due. a prepaid expense. - correct answer ✅an item that is unpaid but is due. Title insurance must be offered at a lower rate when previous title insurance was issued within: Multiple Choice 5 years. 15 years. 3 years. None of the choices are correct.
