Sally and Jake haven’t found any homes they can afford in their desired neighborhood. In fact, there are hardly any available at all. Houses that go on the market usually end up in bidding wars and sell for about twice the price of similar homes in neighborhoods 15 minutes away. What is the state of the market in Sally and Jake’s desired neighborhood?
Demand and supply are about the same.
Demand exceeds supply.
Price has exceeded demand.
Supply exceeds demand.
While working with a buyer client, the licensee filled in the blanks on the purchase agreement, drafted an early occupancy addendum, and assured his buyer that she was “fully protected” and would get her earnest money back if the sale didn’t close. He encouraged her to hire an attorney to review the contract and addendum, and then invoiced her for a nominal $15 fee to prepare transaction documents. Which of the following tasks was the licensee legally permitted to do?
Charge a fee for preparing legal documents
Draft the early occupancy addendum
Fill in the contract blanks
Interpret the contract provisions regarding the buyer’s full protection and getting her earnest money returned
Lisa purchased a home, and six months after the purchase, a stranger knocked on her door and told her he was the true property owner. After investigating, it turns out the person who sold Lisa the property had forged the deed without the true owner’s knowledge. What’s true about Lisa’s situation?
Her homeowner’s policy may protect her from loss.
Her lender must initiate a quiet title action to resolve the issue.
Her title insurance policy may protect her from loss.
The county clerk where the documents were recorded is liable.
Margie needs to know the square footage for the first floor of the condo her client is interested in buying. The kitchen is 10 feet by 15 feet, the living/dining combo is 20 feet by 25 feet, and the office and bedroom are each 10 feet by 10 feet. What’s the total square footage?
2,200 square feet
3,000 square feet
750 square feet
850 square feet
A developer wants to turn a 20-acre parcel of land in a residential zoning area into condominiums. The town is considering rezoning that parcel to allow the development because the developer plans to include a public park and walking trail. What kind of zoning is this?
Aesthetic zoning
Downzoning
Incentive zoning
Spot zoning
2PractEx.CeSh.PreLic.Qonly.txt
Isabelle just took on a new listing, in which the owner is selling because a new freeway is being built right behind the house. The owner is concerned about the noise and other activity the freeway will bring, but doesn’t want prospective buyers to know this. Which action best demonstrates good faith in this scenario?
Isabelle decides not to take the listing, since the property will be impossible to sell.
Isabelle takes the listing and, per her client’s instructions, doesn’t tell prospective buyers about the planned road construction.
Isabelle takes the listing, tells the seller she won’t discuss the new freeway, then discloses this fact to prospective buyers, since it’s material to the property.
Isabelle tells the owner that this is a material fact related to the property that must be disclosed to prospective buyers, or Isabelle will not take the listing.
Which condo document must be created before beginning development
Articles of incorporation
Bylaws
Declaration of condominium
FAQs
The developer of a new subdivision is placing residential properties closer together, allowing him to include large open spaces throughout the development to build bike and walking trails, as well as a community pool and recreation center. What type of zoning is this?
Cluster
Conforming
Non-conforming
Spot
What is true when state and federal laws differ?
State and local law override federal law.
State lawmakers decide which law prevails.
The conflicting law is invalidated, effectively removing the law’s requirements.
The state law may not remove rights granted to citizens under the federal law.
What should be done if a buyer notes any issues during the final walk-through before closing?
Contact the seller’s agent immediately to resolve the issue before closing.
Handle the issue on closing day.
Note these issues in the closing statement and move on.
Wait until after the closing to bring up any issues found in the final walk-through with the seller directly.
3PractEx.CeSh.PreLic.Qonly.txt
Last year, Laura lost her job and defaulted on her mortgage note obligations. Her lender initiated a foreclosure suit and Laura’s property is to be sold at auction next month. Laura has a new job and can now pay what she owes the mortgagee. What right can she exercise to prevent foreclosure?
Assignment of mortgage
Deed in lieu of foreclosure
Equity of redemption
Short sale
Who usually pays the documentary stamp tax on notes and the intangible tax on new mortgages in Florida?
The buyer
The lender
The listing agent
The seller
Her lender can foreclose on her without advance notice.
She holds title to the property, and the mortgage becomes a lien on the property.
The lender can never legally foreclosure on her home.
The lender doesn’t need to involve the court to foreclose.
Louellen is about to take out a mortgage loan from her credit union. The contract includes the following information: Louellen is offering her house as consideration, and the credit union is offering $350,000; and Louellen will pay the loan back over a certain number of months at a certain rate. Both Louellen’s signature and the credit union representative signed it. What, if anything, is this contract missing in order for it to be legally binding, according to the statute of frauds?
Louellen’s credit history needs to be included.
Nothing is missing.
The condition and size of the house needs to be included.
The credit union’s physical address needs to be included.
Hernando, a real estate attorney, is preparing an option contract for his client, Wilma. Hernando asks Wilma what she and the seller have agreed upon for the option period. Wilma said the seller was leaving that up to her, and she wanted to get Hernando’s opinion. What should Hernando put into the contract for the option period?
“Indefinite”
“N/A”
“Negotiable”
“Six months”
A real estate licensee makes notes about décor, updates, and inclusions that will stay with the property. Which of the following items is NOT considered personal property and would, therefore, stay with a home?
The area rug in the dining room
The banker’s lamps in the den
The chandelier in the foyer
The patio heater on the back patio
The market for real estate in Chad’s area has experienced a sudden increase in demand, and there aren’t enough homes to go around. It seems like a bidding war ensues for every available property. What’s the condition of the real estate market in Chad’s area?
Buyer’s market
Imbalanced market
Seller’s market
Stagnant market