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Real Estate Final Exam (150 Questions)
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A real estate licensee has a buyer agency agreement. What is the seller in this situation? ✔✔A customer.
A real estate licensee has a buyer agency agreement. What is the seller in this situation? ✔✔A customer.
An optionor and an optionee make a contract for an option on a commercial piece of property. If the optionee decides to exercise his option, when must he perform? ✔✔He must exercise his option under the terms of the option contract.
An optionor and an optionee make a contract for an option on a commercial piece of property. If the optionee decides to exercise his option, when must he perform? ✔✔He must exercise his option under the terms of the option contract.
When can a landlord evict a disabled blind or disabled tenant from the premises? ✔✔If the tenant has loud parties, makes too much noise, and is constantly disturbing other tenants
When can a landlord evict a disabled blind or disabled tenant from the premises? ✔✔If the tenant has loud parties, makes too much noise, and is constantly disturbing other tenants
- Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property. What, if any, is the relationship between the buyer's broker, the seller and the listing broker? ✔✔There is not a relationship between the parties. Broker Carr represents the Seller and Broker Smith represents the Buyer.
- Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property. What, if any, is the relationship between the buyer's broker, the seller and the listing broker? ✔✔There is not a relationship between the parties. Broker Carr represents the Seller and Broker Smith represents the Buyer.
A buyer bought a property without telling the seller of his intended purpose for the property. The contract contains no contingency clauses and it is a properly executed contract. After the closing, the buyer is unable to obtain the zoning he needs for his commercial project. What is the contract at this stage? ✔✔Enforceable
the offer on May 1, with the closing to occur on June 15. Assuming the closing took place on June 15, when did the listing expire? ✔✔6/
A seller listed his home for six months on February 26. On April 29, a buyer made an offer on the property. The listing broker presented the offer to the seller on April 30. The seller accepted the offer on May 1, with the closing to occur on June 15. Assuming the closing took place on June 15, when did the listing expire? ✔✔6/
The sellers listed their property for six months on February 26 for $522,500. They agreed to pay the listing broker a 7% commission at closing on the agreed upon sale price. A buyer made an offer on the property on March 29 for $510,000. The seller countered the offer on April 1 at $517,500, and the buyer accepted the counter offer with the closing to occur on June 15. How much commission did the seller owe the listing broker, and how would it appear on the settlement statement? ✔✔$36,225. Debit the seller.
The sellers listed their property for six months on February 26 for $522,500. They agreed to pay the listing broker a 7% commission at closing on the agreed upon sale price. A buyer made an offer on the property on March 29 for $510,000. The seller countered the offer on April 1 at $517,500, and the buyer accepted the counter offer with the closing to occur on June 15. How much commission did the seller owe the listing broker, and how would it appear on the settlement statement? ✔✔$36,225. Debit the seller.
The seller and the buyer agreed to a purchase price of $270,000 with the closing to occur on June
- The seller's loan balance after the June 1 payment was $170,000. with an interest rate of 6%.The monthly payment was $1,800 principal and interest. What was the loan balance the day of closing, and how much interest did the seller owe the bank? ✔✔Loan balance $170,000; interest due $
The seller and the buyer agreed to a purchase price of $270,000 with the closing to occur on June
- The seller's loan balance after the June 1 payment was $170,000. with an interest rate of 6%.The monthly payment was $1,800 principal and interest. What was the loan balance the day of closing, and how much interest did the seller owe the bank? ✔✔Loan balance $170,000; interest due $
The buyer and seller agreed to a purchase price of $310,500. The buyer received an 80% loan. How much was the buyer's loan and how did it appear on the settlement statement? ✔✔$ 248,400. Credit the buyer only.
The buyer and seller agreed to a purchase price of $310,500. The buyer received an 80% loan. How much was the buyer's loan and how did it appear on the settlement statement? ✔✔$ 248,400. Credit the buyer only.
On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700. How long did he have the loan? ✔✔42 months
Are recording fees and title insurance premiums part of the Truth in Lending statement? ✔✔No, These are considered legal, not financing fees and therefore are not part of the Truth in Lending statement.
Are recording fees and title insurance premiums part of the Truth in Lending statement? ✔✔No, These are considered legal, not financing fees and therefore are not part of the Truth in Lending statement.
A mortgage broker ✔✔arranges loans between borrowers and investors.
A mortgage broker ✔✔arranges loans between borrowers and investors.
The Smiths' purchased a residence for $750,000. They made a down payment of $150,000 and agreed to assume the seller's existing mortgage, which had a current balance of $230,000. The
Smiths' financed the remaining $370,000 of the purchase price by executing a second mortgage whereby the seller became a mortgagee. This type of loan is called a ✔✔part purchase mortgage
The Smiths' purchased a residence for $750,000. They made a down payment of $150,000 and agreed to assume the seller's existing mortgage, which had a current balance of $230,000. The Smiths' financed the remaining $370,000 of the purchase price by executing a second mortgage whereby the seller became a mortgagee. This type of loan is called a ✔✔part purchase mortgage
On a $500,000 loan the borrower is required to pay two points. How much does the borrower have to pay the lender? ✔✔$510,000.
On a $500,000 loan the borrower is required to pay two points. How much does the borrower have to pay the lender? ✔✔$510,000.
The discount points charged by a lender on a federal VA or FHA loan are a percentage of the ✔✔loan amount.
The discount points charged by a lender on a federal VA or FHA loan are a percentage of the ✔✔loan amount.
Which of the following is true of a second mortgage? ✔✔It is usually issued at a higher rate of interest.
Usury MOST nearly means ✔✔illegal interest.
Usury MOST nearly means ✔✔illegal interest.
A borrower bought a $174,000 house with no down payment. The loan was probably ✔✔a VA loan.
A borrower bought a $174,000 house with no down payment. The loan was probably ✔✔a VA loan.
A house sold for $420,000. The buyer made a 20% down payment. Monthly interest on the loan was $1,400. What was the interest rate on the loan? ✔✔• 5%
A house sold for $420,000. The buyer made a 20% down payment. Monthly interest on the loan was $1,400. What was the interest rate on the loan? ✔✔• 5%
Which of the following describes a mortgage that requires principal and interest payments at regular intervals and is called the liquidation of debt by periodic installment until the debt is satisfied? ✔✔Amortized loan
Which of the following describes a mortgage that requires principal and interest payments at regular intervals and is called the liquidation of debt by periodic installment until the debt is satisfied? ✔✔Amortized loan
Which is the most common form of mortgage? ✔✔Amortized loan
Which is the most common form of mortgage? ✔✔Amortized loan
Under RESPA, a copy of Real Estate Settlement Costs And You must be given ✔✔at the time of loan application, or within 3 days of application.
Under RESPA, a copy of Real Estate Settlement Costs And You must be given ✔✔at the time of loan application, or within 3 days of application.
A VA loan may be granted for the purchase of a one-family to four-family property if ✔✔the veteran agrees to live there.
A VA loan may be granted for the purchase of a one-family to four-family property if ✔✔the veteran agrees to live there.
Which of the following would usually occur in a sale-and-leaseback transaction? ✔✔The property is sold on the condition that the new owner lease it back to the seller at the time title passes.
Which of the following would usually occur in a sale-and-leaseback transaction? ✔✔The property is sold on the condition that the new owner lease it back to the seller at the time title passes.
A standardized yardstick expressing the true annual cost of borrowing is expressed as the what? ✔✔APR
A standardized yardstick expressing the true annual cost of borrowing is expressed as the what? ✔✔APR
RESPA would prohibit which of the following acts? ✔✔A: paying of kickbacks
Illumination:
RESPA concerns itself only with educating consumers about the true costs of borrowing and standardizing lending practices. As such, referral "fees" are prohibited.
RESPA would prohibit which of the following acts? ✔✔A: paying of kickbacks
Illumination:
RESPA concerns itself only with educating consumers about the true costs of borrowing and standardizing lending practices. As such, referral "fees" are prohibited.
In most states, by paying the debt after a foreclosure sale, the mortgagor has the right to regain the property. What is this right called? ✔✔Statutory right of redemption
In most states, by paying the debt after a foreclosure sale, the mortgagor has the right to regain the property. What is this right called? ✔✔Statutory right of redemption
Under an FHA graduated payment mortgage, which of the following fluctuates over the term of the loan? ✔✔Monthly payments
Under an FHA graduated payment mortgage, which of the following fluctuates over the term of the loan? ✔✔Monthly payments
Who are graduated payment mortgages aimed to> ✔✔Particularly at young families who expect to see their earnings rise over the next five to ten years.
Who are graduated payment mortgages aimed to> ✔✔Particularly at young families who expect to see their earnings rise over the next five to ten years.
The maximum permissible "loan to value ratios" are ✔✔based on sale price or appraised value, whichever is lower.
The maximum permissible "loan to value ratios" are ✔✔based on sale price or appraised value, whichever is lower.
Are there any state-mandated qualifying requirements for conventional loans? ✔✔No, Not only are guidelines not uniform, qualification standards can vary enormously from lender to lender.
Are there any state-mandated qualifying requirements for conventional loans? ✔✔No, Not only are guidelines not uniform, qualification standards can vary enormously from lender to lender.
A buyer wants to take out an FHA loan. The broker should refer the buyer directly to ✔✔any approved lending institution such as a bank or savings and loan association.
A buyer wants to take out an FHA loan. The broker should refer the buyer directly to ✔✔any approved lending institution such as a bank or savings and loan association.
An owner advertised "beautiful acreage; only $5,000 down; owner will personally finance down payment." Would this be in violation of the Truth in Lending Act? ✔✔No. Owners are not covered by Regulation Z.
An owner advertised "beautiful acreage; only $5,000 down; owner will personally finance down payment." Would this be in violation of the Truth in Lending Act? ✔✔No. Owners are not covered by Regulation Z.
Why is the RESPA closing statement allowed to be examined on or before closing? ✔✔To check for mathematical errors
Why is the RESPA closing statement allowed to be examined on or before closing? ✔✔To check for mathematical errors
If a single parent is applying for a real estate loan, when would the fact have to be revealed that part of the parent's income is from child support? ✔✔If the parent was relying on the income for repayment of the loan
If a single parent is applying for a real estate loan, when would the fact have to be revealed that part of the parent's income is from child support? ✔✔If the parent was relying on the income for repayment of the loan
When the lender under a deed of trust requires title insurance, who would be the most likely person to pay for it? ✔✔The trustor
When the lender under a deed of trust requires title insurance, who would be the most likely person to pay for it? ✔✔The trustor
Trustor is another name for? ✔✔Borrower
Trustor is another name for? ✔✔Borrower
The Pickets are purchasing a home for $780,000 and the lender is giving them a 90% loan at 5% interest, plus a 2% loan origination fee. How much is the loan origination fee? ✔✔$14,
The Pickets are purchasing a home for $780,000 and the lender is giving them a 90% loan at 5% interest, plus a 2% loan origination fee. How much is the loan origination fee? ✔✔$14,
Discrimination is prohibited in lending practices under ✔✔ECOA
Discrimination is prohibited in lending practices under ✔✔ECOA
A buyer assumes the mortgage. How is the owner relieved of the liability? ✔✔Novation
A buyer assumes the mortgage. How is the owner relieved of the liability? ✔✔Novation
