Just before closing, your buyer applies for a credit card. What could be the advantage or disadvantage at closing?
The buyer’s loan could be denied.
The buyer’s new credit would be approved, allowing the buyer to purchase furniture before move-in and have it delivered afterward.
The buyer would add to the credit history, improving credit.
The lender might issue a larger loan amount.
Which type of mortgage has a payment that adjusts (usually upward) based on a predetermined schedule and amount?
Amortized
Blanket
Bridge
Graduated payment
Which of the following opinions can a real estate licensee provide?
An opinion regarding the appraisal value of a property
An opinion regarding the effect of breaking an existing agreement to accept a new offer
An opinion regarding the listing price
An opinion regarding whether a roof needs to be replaced
When supply exceeds demand, which of the following is a true statement?
Prices are not usually affected.
Prices become stable and stay the same.
Prices goes down.
Prices goes up.
Your investor client Oliver is in the process of selling a small starter home, and he mentions to you that he hates the idea of the capital gains tax he’ll be subject to. Which of the following statements would it be appropriate for you to give him?
“Capital gains don’t apply to investment properties.”
“If you’re a registered investor, you shouldn’t have to pay taxes.”
“Sorry man, taxes are the worst.”
“You might consider looking into a 1031 tax-deferred exchange.”
Which of the following is a method a real estate licensee uses to determine an appropriate listing price range?
Appraisal
Comparative market analysis
Market process
Proforma
What percentage of profit would the seller make if she paid $25,000 for a vacant lot, built a home on the lot that cost $165,500, and then sold the property for $210,080 (round your answer to the nearest percentage)?
10%
127%
15%
973%
Aside from price, which of the following is a major reason to counter an offer?
One party would prefer to use a different title company.
The buyer reserves the right to inspect the property.
The closing date is unacceptable to one party.
The seller wants to keep the dining room light fixture.
Which of the following is a recommended way to protect yourself from committing unauthorized practice of law when drafting a document?
Keep an attorney on retainer and complete all contracts in his or her presence.
Make the terms of all contracts subject to review by attorneys for both parties.
Make the terms of all contracts subject to review by both parties.
Send your clients to their attorneys when the time comes to complete a contract.
Net to seller equals the ______ multiplied by the percent to seller.
Closing costs
Commission rate
Sales price
Tax rate
If you want to capitalize on the time value of money concept, you should ______.
Hire an accountant
Invest money where it will earn interest
Put your money in a safe deposit box
Shelter your money from taxes by not investing it
What kind of rights give a property owner access to ponds, lakes, oceans, and other closed bodies of water bordering the owner’s land?
Alluvion
Littoral
Reliction
Riparian
In relation to appraisals, what is a “federally related transaction”?
An appraisal that a federally licensed appraiser conducts
A real estate transaction in which a federal financial agency or regulatory authority is involved
A transaction involving the sale of government secrets
A transaction in which financing is obtained from foreign investors
Mixing escrow funds with personal funds is illegal and called ______.
Capping
Commingling
Conforming
Conversion
Which of the following is an example of a metes and bounds description?
123 Roanoke Street Any Town, ST 98765
“Beginning at the iron pin 30 paces from the center of the brook that runs across the road Southwesterly from the dwelling …”
Lot 6 of Block 3 of the Meridian subdivision …
S ½ SE ¼ NW ¼ Section 2 …
What will a typical condominium legal description reference?
Mailing address
Township, section, and condominium name only
Unit number and condominium name only
Unit number, condominium name, plat map, page, and number
The potential for health hazards related to ______ must be disclosed when selling or renting homes built before 1978.
Arsenic
Asbestos
Lead
Radiation