Jose, who is 16, entered into a contract to sell a condo he owned. Because Jose is a minor, ______.
Either Jose or the buyer may void the contract due to Jose’s minority
It makes no difference; if he signed the agreement, he must abide by it
Only Jose may void the contract
The contract is void
Seller Randy signed a listing agreement with Barbara, who worked very hard to find him a buyer. Randy’s cousin decided to purchase the house during the listing period. Is Barbara owed compensation?
No, because sellers don’t have to pay compensation if a relative purchases the property.
Yes, because Randy is not a licensee.
Yes, because she worked hard for Randy.
Yes, if she has an exclusive right-to-sell agreement.
Which one of the following activities requires a license?
Negotiating (free of charge) the lease price for the home your parents will rent
Negotiating with or aiding any person in locating or obtaining an interest in real estate for purchase, lease, or acquisition for a fee.
Renting out a room in your own house
Selling your own house to another for profit
Which act encourages fair, truthful, non-deceptive, and evidence-supported claims in advertising?
Federal Trade Commission Act
Mortgage Disclosure Act
Real Estate Settlement Procedures Act
Sherman Act
Which of these correctly describes the statute of limitations as it applies to real estate?
A wronged party can initiate a court action at any time after closing but before reselling the property.
The buyer has the time between the inspection and closing to initiate a court action against the seller.
There’s a time limit for a wronged party (buyer or seller) to initiate a court action.
The seller has a limited time after closing to disclose any known defects with the property.
What do government tax assessment offices determine by comparing similar properties in a geographic area?
Assessed value
Investment value
List price
Market value
A vacant parcel of land is two square miles. How many acres is this?
120
1,280
60
640
Who typically performs a CMA or BPO?
Appraiser
Inspector
Loan servicer
Real estate licensee
Adam owes $125,000 on his home. It’s currently worth $340,000. How much equity does Adam have in his home?
$125,000
$215,000
$340,000
$465,000
Janice’s life tenant, Jacob, is currently living on her property. Once Jacob dies, Janice has arranged for the property to be given to the School for the Gifted. What interest does the School for the Gifted currently have?
Ownership
Possession
Remainder
Reversionary
When an appraiser relies on comparable properties to estimate the adjusted market price of a property, what approach is the appraiser using?
Broker price opinion
Cost
Income
Sales comparison
Which of the following describes a sale subject to a mortgage?
A deficiency judgment would go against the new buyer.
The lender takes title subject to the existing mortgage.
The new buyer will not have legal title.
The seller transfers title with the mortgage lien in place.
What is a judicial foreclosure?
After borrower and public notice are provided, the property is sold at auction to the highest bidder without court action due to the power of sale clause in the security instrument.
After borrower default, the lender records paperwork with the court, the court sets a payment deadline for the borrower, and the lender is awarded title if the borrower doesn’t pay.
After sufficient notice to the borrower and to the public, the court permits the property to be sold at auction to the highest bidder.
The property is sold at a foreclosure auction for less than the amount due by the borrower and the lender sues the borrower to collect the difference.
How many feet are in three yards?
12
Nine
Six
Three
A ______ is the component of a septic system that is generally made of gravel or sand and naturally filters wastewater.
Drainfield
Percolation line
Septic line
Septic tank
You’re writing an offer for your buyer client in a cold market. What would be a good negotiation strategy?
Ask the seller to pay closing costs.
Offer a quick close.
Offer full price.
Waive the appraisal.
Your client, Brian, is an investor who likes to put as little cash down on his investments as possible. Brian believes in the power of ______.
Cost
Debt
Income
Leverage