Real Estate Sales and Property Management Best Practices, Exams of Law

Download Real Estate Sales and Property Management Best Practices and more Exams Law in PDF only on Docsity! 45 Hour Post License Real Estate Florida Exam New 2024 Version Best Studying Material with All Questions and Answers What are the five categories of a sales associate's leads? A) Close friends and family, friends, customers, athletic partners, and targeted strangers B) Close friends and family, friends, customers, acquaintances, and prospects C) Close friends and family, friends, workers, acquaintances, and targeted strangers D) Close friends and family, friends, customers, acquaintances, and targeted strangers ----- ------ Correct Answer ---------- D) Close friends and family, friends, customers, acquaintances, and targeted strangers What are the best sources for a property's legal description that will be used in a contract? A) The county clerk's office, owner's deed, previous title policy B) The county clerk's office, owner's deed, previous MLS listing C) The owner's deed, tax appraiser's office, previous title policy D) Survey, county property appraisal, county clerk ----------- Correct Answer ---------- A) The county clerk's office, owner's deed, previous title policy In a newer subdivision of about 600 homes, the median sales price is $430,000. Last year 78 homes sold a 10% decline from the year before. What is the turnover index? ---- ------ Correct Answer ---------- 13% The "Do Not Call Registry" should only be used for: ---------- Correct Answer ---------- The prevention of telemarketing calls to numbers on the registry A recent sale at $290,000 incurred expenses of $4,300, and a brokerage fee of 25,500. Prorations for taxes and interest are $5,800 and the mortgage payoff is 192,000. What are the Sellers net proceeds from the sale? ---------- Correct Answer ---------- 290,000 - 192,000 = 98,000 sellers equity 98,000 - 4,300 - 25,000 - 5,800 = 62,400 net proceeds A salesperson wants to earn $120,000 this year. He/she plans 70% of their income will come from listings and 30% from sales. If the average commission from the listings sold is $4,000, how many listings must the salesperson sell to achieve their goal? ---------- Correct Answer ---------- 120,000 x 70% = 84,000 / 4,000 = 21 listings The Florida Realtors®/Florida Bar Residential Contract for Sale and Purchase is best for A) an option contract. B) a commercial sale. C) a residential sale. D) a lease with an option to purchase. ----------- Correct Answer ---------- C) a residential sale. What usually happens when a listed property is overpriced? ------------ Correct Answer -- ------- The listing expires. In what case would sales tax be required for personal property included in a house sale? ------------ Correct Answer --------- If the contract for the sale of the house includes a list and separate valuation of the personal property Where is the best place to find expired listings? ------------ Correct Answer --------- The MLS Owners of 800 homes in a subdivision list their houses, on average, every eight years. If a sales associate farms that neighborhood and lists 20% of the homes, how many homes can she expect to list this year? ------------ Correct Answer --------- 20 // 800 homes ÷ 8 years = 100 homes listed annually. 100 × .20 = 20 homes listed by the sales associate. Which emails are illegal under the CAN-SPAM Act? A) Commercial emails that provide a way for recipients to opt out. B) Emails that inform sellers about the progress of marketing their properties C) Commercial emails that are identified as an advertisement and include the sender's address D) Misleading from and to information in the email ----------- Correct Answer ---------- D) Misleading from and to information in the email When you talk with a for sale by owner about her property, your principal objective should be to A) The listing expires. ----------- Correct Answer ---------- D) The listing expires. A home sells for $370,000. The mortgage payoff is $262,500. What is the seller's equity? A) $107,500 B) $370,000 C) $632,500 D) $64,750 ----------- Correct Answer ---------- A) $107,500 Which listings may be entered into the MLS? A) Exclusive agency listings and exclusive right-of-sale listings B) Open listings and exclusive right-of-sale listings C) Exclusive agency listings and open listings D) Exclusive agency listings and net listings ----------- Correct Answer ---------- A) Exclusive agency listings and exclusive right-of-sale listings Which party may pay a licensed personal assistant for selling activities? A) Only the broker B) The broker or the sales associate C) It is not legal to pay a personal assistant—whether licensed or unlicensed—a portion of a real estate commission. D) The sales associate ----------- Correct Answer ---------- A) Only the broker What must be given to borrowers within three days after the loan application? A) Loan estimate B) Truth in Lending document C) Closing disclosure D) Lender's affidavit to complete loan approval ----------- Correct Answer ---------- A) Loan estimate An economic contraction is A) defined as two successive quarterly increases in the GDP. B) the phase of a business cycle after a recession in which consumer confidence is shaken and consumers reduce spending. C) a period when consumers, lured by lower prices, venture back into the market. D) a period of high wages and consumer purchasing power that increases the demand for goods and services. ----------- Correct Answer ---------- B) the phase of a business cycle after a recession in which consumer confidence is shaken and consumers reduce spending. At what rate do taxpayers pay for short-term capital gains? A) 20% B) The investor's ordinary income tax rate C) 10% D) 15% ----------- Correct Answer ---------- B) The investor's ordinary income tax rate The components of a full title report are A) a survey, a physical inspection of the collateral, and a search of the records. B) an appraisal, a survey, and a search of the records. C) a credit report, a survey, and a physical inspection of the collateral. D) MLS records, a physical inspection of the collateral, and a search of the records. --------- -- Correct Answer ---------- A) a survey, a physical inspection of the collateral, and a search of the records. A feature of a biweekly mortgage is A) a reverse annuity mortgage. B) a semimonthly mortgage payment. C) 26 annual payments. D) a capped adjustable mortgage loan. ----------- Correct Answer ---------- C) 26 annual payments. Florida law requires brokers to A) cooperate with other brokers in the sale of properties. B) give transaction broker notices to customers before showing a property. C) give sellers the copies of written listing agreements within 24 hours. D) have minimum commission rates on all listings. ----------- Correct Answer ---------- C) give sellers the copies of written listing agreements within 24 hours. Explanation There is no minimum commission rate, as that would be a violation of antitrust laws. Transaction brokers are not required to give brokerage relationship notices. Listing brokers are not required to offer cooperation. Which professional providing services to the real estate industry must have a high school diploma, complete a 120-hour course, and pass a state examination? A) Mortgage originator B) Home inspector C) Appraiser D) Contractor ----------- Correct Answer ---------- B) Home inspector An example of redlining occurs when A) a sales associate shows homes in only areas that match the race of the prospect. B) a loan officer tells a buyer that the mortgage interest rate will be higher because the home is located in a minority area. C) a sales associate frightens owners to sell because minorities are moving into the neighborhood. D) two brokers draw lines around their market areas to split them. ----------- Correct Answer ---------- B) D) Friday. ----------- Correct Answer ---------- B) Monday. FREC rules require that the sales associate must give the broker the funds within one business day. The broker must deposit the funds in a bank within three business days. The minimum legal description for a platted subdivision would include A) street address, lot and block number, and subdivision name. B) county, lot and block number, name of subdivision, and lot dimensions. C) subdivision name, county, reference to section, township, and range. D) subdivision name, county, lot and block number, plat book and page number. ----------- Correct Answer ---------- D) subdivision name, county, lot and block number, plat book and page number. Antitrust laws A) allow brokers to boycott cut-rate brokers' listings. B) prohibit commercial advertising in faxes. C) allow brokers to split up market areas. D) prohibit price fixing. ----------- Correct Answer ---------- D) prohibit price fixing. Explanation Some of the prohibited actions under antitrust laws include: conspiracy to set prices; splitting up competitive market areas; conspiring to boycott cut-rate brokers or otherwise interfering with their business; and requiring a minimum commission before allowing listings to be circulated in any service, such as through an MLS. Hearing, understanding, and evaluation are part of what type of skill set? A) Oral B) Written C) Nonverbal D) Listening ----------- Correct Answer ---------- D) Listening What are the requirements for persons disturbing lead-based paint in a house? A) The owner must leave the house vacant for a minimum of 30 days after cleanup. B) The person must have taken a 45-hour course in radon gas remediation. C) Lead-based paint may not be disturbed by law. D) The person must be certified and follow specific work procedures. ----------- Correct Answer ---------- D) The person must be certified and follow specific work procedures. The Civil Rights Act of 1866 prohibits discrimination based on A) race, color, religion, sex, national origin, family status, or handicap. B) sexual preference. C) religion. D) race. ----------- Correct Answer ---------- D) race. In order to make successful prospecting calls, a sales associate should A) call from the phone book without accessing the do-not-call registry. B) be consistent, making them at the same time each day. C) make them at random hours on different days. D) make them whenever the sales associate feels up to it. ----------- Correct Answer --------- - B) be consistent, making them at the same time each day. At closing, a seller will be asked to sign an affidavit that A) there are no liens or rights to file a lien on the property. B) he will sign the deed when it is presented to him. C) he agrees with the closing disclosure. D) he made required repairs to the property. ----------- Correct Answer ---------- A) there are no liens or rights to file a lien on the property. When you explain the pricing process during a listing presentation, you would NOTordinarily discuss A) the process of closing a sale. B) how you prepared the CMA. C) the competition in the neighborhood. D) the pertinent parts of the CMA. ----------- Correct Answer ---------- A) the process of closing a sale. Sometimes when a buyer is not quite ready and wants to think about it a while longer, the salesperson should A) ask permission to prepare the paperwork as if they were buying, then go over it. B) scare them into going ahead with the offer to purchase—"It will probably sell to someone else!" C) get a good-faith deposit to hold the property. D) tell them that you won't be able to work with them after this. ----------- Correct Answer ---- ------ A) ask permission to prepare the paperwork as if they were buying, then go over it. Explanation Adjustments are subtracted from the comparable property if the comparable is bigger or better. Adjustments are added if the comparable is smaller or less desirable. What is the most likely reason why a sales associate sets appointments with the seller using a range of time rather than a specific time? A) Because the seller may not want to wait around B) Because the sales associate is a poor planner C) So the sales associate can show as many houses as the buyer wants to see in a single tour D) Because a prospective buyer may stay longer in some houses than the sales associate had planned ----------- Correct Answer ---------- D) C) Debit seller, credit buyer $224.22 D) Debit buyer, credit seller $2,415.78 ----------- Correct Answer ---------- C) Debit seller, credit buyer $224.22 $2,640 ÷ 365 = 7.23288 daily rate × 31 days = $224.22. A person may not send a commercial advertising fax unless he has A) reviewed the national do-not-fax registry. B) established concurrency. C) an established business relationship. D) first sent a fax asking for permission to send an advertisement. ----------- Correct Answer ---------- C) an established business relationship. Open listings A) require two witnesses to be valid. B) are a broker's best guarantee of a commission. C) may be entered into the MLS. D) may be oral, written, or implied. ----------- Correct Answer ---------- D) may be oral, written, or implied. A sales associate who asks a prospective buyer, "How many bedrooms do you need in the house?" is A) qualifying the buyer's housing objectives. B) likely to find resistance from the buyer. C) prequalifying the buyer. D) qualifying the buyer's financial position. ----------- Correct Answer ---------- A) qualifying the buyer's housing objectives. If a neighborhood has good turnover but has a low price range, A) a sales associate should not show homes there. B) it would be a very good farm area. C) that means it is not currently being farmed. D) it is unlikely to be a good farm area. ----------- Correct Answer ---------- D) it is unlikely to be a good farm area. Explanation A good farm area should be in a middle to upper price range and have high turnover with increasing property values. Which event automatically allows a buyer to void a purchase and sale contract? A) The buyer fails to perform according to the terms of the contract. B) A new shopping center is announced that will be built next door to the subject property. C) The appraisal value is lower than the value required in a contract contingency. D) The Dow Jones Industrial Average falls more than 3,000 points. ----------- Correct Answer ---------- C) The appraisal value is lower than the value required in a contract contingency. Where is the best place to find expired listings? A) Referrals B) The MLS C) Signs in neighborhoods D) The internet ----------- Correct Answer ---------- B) The MLS The four basic loan processing procedures are A) checking the borrower's ability to repay, appraising collateral's property value, preparing loan documents, and checking the title of the collateral. B) checking the borrower's ability to repay, appraising collateral's property value, entering the property into the MLS, and checking the title of the collateral. C) checking the borrower's ability to repay, visiting the property, preparing loan documents, and checking the title of the collateral. D) Determining a buyer's housing objectives, appraising collateral's property value, preparing loan documents, and checking the title of the collateral. ----------- Correct Answer ---------- A) checking the borrower's ability to repay, appraising collateral's property value, preparing loan documents, and checking the title of the collateral. A person who calls for the address of a property is likely A) requesting the monthly payments for the property. B) casing the property for burglary. C) looking at a real estate classified ad. D) sitting in front of the property wanting more information. ----------- Correct Answer --------- - C) looking at a real estate classified ad. A salesperson wishes to take home $80,000 annually. If taxes, dues, advertising, and fees are about 35% of his total earnings, he should set his goal at around A) $123,000. B) $141,000. C) $132,000. D) $138,200. ----------- Correct Answer ---------- A) $123,000. Divide the desired earnings by .65 (100% - 35%). $80,000 ÷ .65 = $123,077, rounded to $123,000. A property sold for $149,300. How much must be paid for the documentary stamp taxes on the deed? A) $835.80 B) $417.90 C) $1,022.50 D) $1,045.10 ----------- Correct Answer ---------- D) $1,045.10 $149,300 ÷ 100 = $1,493. $1,493 × .70 = $1,045.10. D) Sales associates cannot legally make appraisals. ----------- Correct Answer ---------- B) The appraisal cannot be used by a bank for a new loan. What are the three keys to prospecting success? A) Organization, technical knowledge, and numbers B) Consistency, numbers, and listening skills C) Sales skills, organization, and numbers D) Organization, numbers, and consistency ----------- Correct Answer ---------- D) Organization, numbers, and consistency Pyramiding gives the impression of A) boredom. B) waiting. C) superiority. D) aggressiveness. ----------- Correct Answer ---------- C) superiority. A sales associate, to test his understanding of what the customer has said, uses words that are similar, but not exactly the same as the customer's. This is called A) adjusting. B) parroting. C) deflecting. D) paraphrasing. ----------- Correct Answer ---------- D) paraphrasing. A substantial good-faith deposit and a bank preapproval letter means that the buyer is A) unlikely to impress a seller. B) ready, willing, and able. C) a looker. D) going to make a lowball offer. ----------- Correct Answer ---------- B) ready, willing, and able. Which is NOT a requirement for a successful listing presentation? A) Must have the appropriate parties present to sign the listing B) Must be younger than 60 years old C) Must have a comparative market analysis (CMA) prepared D) Must have the right forms for taking the listing ----------- Correct Answer ---------- B) Must be younger than 60 years old A sales associate is qualifying a married couple who are interested in purchasing a house, but who are unable to complete the transaction because they have a house they have to sell first. The sales associate should A) make an appointment to see the home and list it. B) classify them as a Priority 3 buyer and show homes less often. C) tell the buyer to call back when the house has been sold. D) send a referral because a sales associate cannot represent them in both transactions. -- --------- Correct Answer ---------- A) make an appointment to see the home and list it. Which purchase and sale agreement item supersedes the other? A) Handwritten clause supersedes the printed clause B) Oral counteroffer supersedes written counteroffer C) Tax appraiser's legal description supersedes former title policy legal description D) Oral contract extension supersedes written contract extension ----------- Correct Answer ---------- A) Handwritten clause supersedes the printed clause A married couple have prequalified for a $240,000 conventional mortgage. If they put 20% down, they can buy a house for A) $240,000 B) $320,000 C) $300,000 D) $260,000 ----------- Correct Answer ---------- C) $300,000 The $240,000 mortgage amount represents 80% of the value. Divide $240,000 by .80. If the seller defaults, and the contract was written using the Florida Realtors®/Florida Bar Residential Contract for Sale and Purchase, the buyer A) may not sue for specific performance. B) may get the binder back and cancel the contract. C) is unable to seek damages. D) must split the deposit with the broker. ----------- Correct Answer ---------- B) may get the binder back and cancel the contract. It is a bad idea for sales associates to A) discourage buyers from moving in to a house before the transaction closes. B) personally perform the preclosing walk-through inspection to be certain all items are in working order. C) contact the buyer and/or the seller to coordinate the closing date and time. D) encourage buyers to purchase and pay for property insurance well before closing. ------- ---- Correct Answer ---------- B) personally perform the preclosing walk-through inspection to be certain all items are in working order. A sales associate wants to earn at least $45,000 next year. If the average commission from listings sold is $3,000, how many listings must she sell in order to achieve that portion of her goals? A) 24 B) 45 C) 21 D) 15 ----------- Correct Answer ---------- D) 15 Picking up the lockbox from the property C) Giving the commission check to the broker D) Picking up the sign from the property ----------- Correct Answer ---------- A) Making a walk-through inspection of the property What is the likely cause of a contract for sale of real estate being ruled as unenforceable? A) Competent parties B) Unwritten agreement C) Signature of both parties D) Bilateral agreement ----------- Correct Answer ---------- B) Unwritten agreement When a loan officer looks over a person's credit score, she knows that the most important factor in setting that score is the applicant's A) income. B) assets. C) payment history. D) number of creditors. ----------- Correct Answer ---------- C) payment history. Social media is defined as A) blogging. B) tweeting. C) technology for people who want to create and share information in the virtual communities they join. D) surfing the net. ----------- Correct Answer ---------- C) technology for people who want to create and share information in the virtual communities they join. A written listing agreement with a self-renewing clause A) is void. B) will renew for the same period as the original listing. C) allows the listing broker to refuse to cooperate with other brokers. D) means the broker must find a purchaser in order to receive a commission. ----------- Correct Answer ---------- A) is void. Under the Americans with Disabilities Act, if the removal of barriers can be accomplished with little difficulty or expense, it is considered A) an optional removal. B) taxable. C) readily achievable. D) an alternative accommodation. ----------- Correct Answer ---------- C) readily achievable. What is the purpose in having your buyers write a letter to the seller saying why they want to buy the home? A) To compensate for the fact that the buyers don't qualify to purchase the home B) To get a low offer accepted C) To show the buyers' writing skills D) To help sellers favor your buyers over competing buyers ----------- Correct Answer -------- -- D) To help sellers favor your buyers over competing buyers A home sells for $310,500. Expenses of the sale are $4,800. The brokerage fee is $18,630. Prorations for taxes and interest are $5,036. The mortgage payoff is $181,500. What are the seller's proceeds from the sale? A) $100,534 B) $96,532 C) $112,750 D) $110,606 ----------- Correct Answer ---------- A) $100,534 Explanation $310,500 - $4,800 - $18,630 - $5,036 - $181,500 = $100,534. The net proceeds equal the seller's equity less expenses and prorations. What is NOT the purpose for making a preclosing walk-through inspection? A) To check that the property has been maintained as it was at the time of contract B) To ensure all agreed-on repairs have been made C) To check that all items are in working order D) To make sure the property is ready for occupancy ----------- Correct Answer ---------- C) To check that all items are in working order A show list consists of A) apartments that are currently available for rent and in excellent condition. B) a manager's list. C) listings that have an extra selling bonus. D) in-house listings that the brokerage wants sold. ----------- Correct Answer ---------- A) apartments that are currently available for rent and in excellent condition. When staging the home, the seller should A) highlight with color. B) demonstrate her personality with unique decorating touches. C) go for the country home look. D) turn on just a few lights for mood. ----------- Correct Answer ---------- A) highlight with color. The total room count in a house would include A) the basement. B) the foyer. C) bathrooms. state law prohibits solicitors from visiting the property. B) the owners can advertise it as "adults only." C) the state of Florida must provide shuttle service to nearby medical centers. D) the area is called a planned unit development. ----------- Correct Answer ---------- B) the owners can advertise it as "adults only." A married couple have prequalified for a $240,000 conventional mortgage. If they put 20% down, they can buy a house for ------------ Correct Answer --------- $300,000 What facts need not be disclosed in a real estate transaction? ------------ Correct Answer --------- The property was the site of a homicide. What is a good graphic to show a seller that there will be more activity if the property is competitively priced? ------------ Correct Answer --------- The pricing pyramid A home sells for $310,500. Expenses of the sale are $4,800. The brokerage fee is $18,630. Prorations for taxes and interest are $5,036. The mortgage payoff is $181,500. What are the seller's proceeds from the sale? ------------ Correct Answer --------- $100,534 Filing a suit to quiet title is used when ------------ Correct Answer --------- a title defect is found, which is difficult to remove by ordinary means. What are the benefits of restrictive covenants? ------------ Correct Answer --------- Maintain and enhance value What's the downside for a principal who has a single agent? ------------ Correct Answer -- ------- Responsible for the single agent's acts What is the likely cause of a contract for sale of real estate being ruled as unenforceable? ------------ Correct Answer --------- Unwritten agreement Aside from a property's location, what is the most important factor that influences market value? ------------ Correct Answer --------- Highest and best use The margin is ------------ Correct Answer --------- the percentage added to the index of an adjustable-rate mortgage that results in the calculated rate. A home sells for $370,000. The mortgage payoff is $262,500. What is the seller's equity? ------------ Correct Answer --------- $107,500 How often do mortgage loan originators need to have a criminal background check? ---- -------- Correct Answer --------- Every year A written listing agreement with a self-renewing clause ------------ Correct Answer --------- is void. When you explain the pricing process during a listing presentation, you would NOT ordinarily discuss ------------ Correct Answer --------- the process of closing a sale. What are the three keys to prospecting success? ------------ Correct Answer --------- Organization, numbers, and consistency A sales associate, to test his understanding of what the customer has said, uses words that are similar, but not exactly the same as the customer's. This is called ------------ Correct Answer --------- paraphrasing. Which party may pay a licensed personal assistant for selling activities? ------------ Correct Answer --------- It is not legal to pay a personal assistant—whether licensed or unlicensed—a portion of a real estate commission. In a relatively new neighborhood with 524 homes, 72 houses were sold. The turnover index in this neighborhood is ------------ Correct Answer --------- 13.7% // 7%. 72 houses sold ÷ 524 total homes = .137 or 13.7% The Florida Realtors®/Florida Bar Residential Contract for Sale and Purchase is best for ------------ Correct Answer --------- a residential sale. Sometimes when a buyer is not quite ready and wants to think about it a while longer, the salesperson should ------------ Correct Answer --------- ask permission to prepare the paperwork as if they were buying, then go over it. An exclusive agency listing is used when ------------ Correct Answer --------- an owner lists with a broker on the basis that if the property is sold by a broker, the broker is entitled to a commission, but if the owner sells his own property, he owes no commission. If a selling sales associate attempts to present an offer without the listing agent being present, ------------ Correct Answer --------- it would likely alienate the seller because the seller has more trust in the listing sales associate. A single agent broker must give a brokerage relationship disclosure when a transaction is ------------ Correct Answer --------- the sale of a duplex. A woman had a fourth bedroom built onto her house last year that cost $75,000. A recent appraisal valued the bedroom at $52,000. This demonstrates the principle of ----- ------- Correct Answer --------- contribution. When should the price be covered when presenting an offer? ------------ Correct Answer --------- Last At what rate do taxpayers pay for short-term capital gains? ------------ Correct Answer ---- ----- The investor's ordinary income tax rate A buyer can save money by making at least a 20% down payment because ------------ Correct Answer --------- the buyer won't have to pay for mortgage insurance. The total room count in a house would include ------------ Correct Answer --------- bedrooms. The four basic loan processing procedures are ------------ Correct Answer --------- checking the borrower's ability to repay, appraising collateral's property value, preparing loan documents, and checking the title of the collateral. The three types of operating expenses of an income property are ------------ Correct Answer --------- reserves for replacements, fixed, and variable. Which emails are illegal under the CAN-SPAM Act? ------------ Correct Answer --------- Misleading from and to information in the email A home is being appraised for a mortgage loan. One of the comparable properties is smaller than the subject property, and the appraiser estimates the difference to be $7,800. The appraiser will make ------------ Correct Answer --------- a plus $7,800 adjustment to the comparable. Which purchase and sale agreement item supersedes the other? ------------ Correct Answer --------- Handwritten clause supersedes the printed clause Which listings may be entered into the MLS? ------------ Correct Answer --------- Exclusive agency listings and exclusive right-of-sale listings Florida law requires brokers to ------------ Correct Answer --------- give sellers the copies of written listing agreements within 24 hours. A sales associate is talking with a customer. When the customer crosses his legs, the associate smiles and crosses his arms. The associate is using a reflecting method called ------------ Correct Answer --------- matching. A substantial good-faith deposit and a bank preapproval letter means that the buyer is -- ---------- Correct Answer --------- ready, willing, and able. What are the requirements for persons disturbing lead-based paint in a house? ----------- - Correct Answer --------- The person must be certified and follow specific work procedures. When a loan officer looks over a person's credit score, she knows that the most important factor in setting that score is the applicant's ------------ Correct Answer --------- payment history. The Fair Housing Act does NOT protect persons ------------ Correct Answer --------- in a same-sex relationship. A salesperson wishes to take home $80,000 annually. If taxes, dues, advertising, and fees are about 35% of his total earnings, he should set his goal at around ------------ Correct Answer --------- $123,000. // Divide the desired earnings by .65 (100% - 35%). $80,000 ÷ .65 = $123,077, rounded to $123,000. A sales associate is estimating the prepayments for a new loan that will close on April 12. If the first payment is due on June 1, how will the prepaid interest be calculated for the closing statement? ------------ Correct Answer --------- The buyer will be charged from April 12 through April 30. Which federal law requires fair consideration of consumer loan applications from women, minorities, part-time employees, and others who may have suffered prejudicial treatment in the past? ------------ Correct Answer --------- The Equal Credit Opportunity Act If a neighborhood has good turnover but has a low price range ------------ Correct Answer --------- it is unlikely to be a good farm area. In order to make successful prospecting calls, a sales associate should ------------ Correct Answer --------- be consistent, making them at the same time each day. Open listings ------------ Correct Answer --------- may be oral, written, or implied. Effective gross income is ------------ Correct Answer --------- the amount remaining when vacancy and collection losses are subtracted from potential gross income. It is a bad idea for sales associates to ------------ Correct Answer --------- personally perform the preclosing walk-through inspection to be certain all items are in working order. If the seller defaults, and the contract was written using the Florida Realtors®/Florida Bar Residential Contract for Sale and Purchase, the buyer ------------ Correct Answer ---- ----- may get the binder back and cancel the contract Which is correct about real estate licensees who prepare an appraisal? ------------ Correct Answer --------- The appraisal cannot be used by a bank for a new loan. A property sold for $149,300. How much must be paid for the documentary stamp taxes on the deed? ------------ Correct Answer --------- $1,045.10 When at least 80% of units in a complex have at least one occupant who is at least 55 years of age, ------------ Correct Answer --------- the owners can advertise it as "adults only." Which is NOT a requirement for a successful listing presentation? ------------ Correct Answer --------- Must be younger than 60 years old Which is an operating expense of an income property? ------------ Correct Answer --------- Management fee A person who has an immediate need to buy is called ------------ Correct Answer --------- a Priority 1 buyer. When you talk with a for sale by owner about her property, your principal objective should be to ------------ Correct Answer --------- make an appointment. The Civil Rights Act of 1866 prohibits discrimination based on ------------ Correct Answer --------- race. The sphere of influence is NOT ------------ Correct Answer --------- a farm area Hearing, understanding, and evaluation are part of what type of skill set? ------------ Correct Answer --------- Listening A show list consists of ------------ Correct Answer --------- apartments that are currently available for rent and in excellent condition. A sales associate who asks a prospective buyer, "How many bedrooms do you need in the house?" is ------------ Correct Answer --------- qualifying the buyer's housing objectives. A sales associate receives a good-faith deposit from a buyer on Wednesday. The broker must deposit the funds into the escrow account no later than the following --------- --- Correct Answer --------- Monday. Antitrust laws ------------ Correct Answer --------- prohibit price fixing. At closing, a seller will be asked to sign an affidavit that ------------ Correct Answer -------- - there are no liens or rights to file a lien on the property. When staging the home, the seller should ------------ Correct Answer --------- highlight with color. A person applies for a $300,000, 30-year fixed-rate mortgage loan at 4%. The mortgage payment factor is .00477415. Taxes for the year are $4,000, and insurance is $2,400. Her monthly payment for principal, interest, taxes, and insurance (PITI) will be ------------ Correct Answer --------- $1,965.58. // 58. $300,000 × .00477415 = $1,432.25 principal and interest. $4,000 taxes ÷ 12 months = 333.33. $2,400 insurance ÷ 12 months = 200. $1,432.25 + $333.33 + $200 = $1,965.58 total PITI. What is a real problem for many for sale by owners when showing the property? ---------- -- Correct Answer --------- When curb appeal is not good, buyers often pass by a for- sale-by-owner house without stopping. A sales associate is qualifying a married couple who are interested in purchasing a house, but who are unable to complete the transaction because they have a house they have to sell first. The sales associate should ------------ Correct Answer --------- make an appointment to see the home and list it. Which event automatically allows a buyer to void a purchase and sale contract? ---------- -- Correct Answer --------- The appraisal value is lower than the value required in a contract contingency. An example of redlining occurs when ------------ Correct Answer --------- a loan officer tells a buyer that the mortgage interest rate will be higher because the home is located in a minority area. Learning to complete a listing agreement is called ---------- Correct Answer ---------- Technical Knowledge Callers on classified advertising usually ask for the... ---------- Correct Answer ---------- Property Address The major reason listings expire is almost always... ---------- Correct Answer ---------- Price The percentage added to Adjustable Rate Mortgage is called the ---------- Correct Answer ---------- Margin The best source for Sales Associates to Find FSBO'S is the ---------- Correct Answer ---- ------ Classified Ads The 3 components of a title search are: ---------- Correct Answer ---------- Survey, Physical Inspection, and Public Records An owner lists his house with a Broker but doesn't have to pay a commission if he sells his property himself. This a/n.... ---------- Correct Answer ---------- Exclusive Agency Listing A licensee may prepare an appraisal if he/she is not involved in the sale and/or ---------- Correct Answer ---------- The listing of the property Name four characteristics you should look for when selecting a farm area: ---------- Correct Answer ---------- #1 high-turn-over (most important), increasing property values, not being farmed, amd mid-to-upper price range 2 successive quarterly increases of the GDP is ---------- Correct Answer ---------- Recovery Concerning the Junk Fax Protection Act what is the term for the following definition? "A prior existing relationship formed by a voluntary two-way communication between persons entities or business." ---------- Correct Answer ---------- Established Business Relationship What law prevents a private homeowner form discrimination against race when selling his/her home? ---------- Correct Answer ---------- Civil Rights Act of 1866 The Americans with Disabilities Act (ADA) doesn't protect persons with... ---------- Correct Answer ---------- Substance Abuse, Temporary Impairments, Homosexuality, Juveniles, or Sexual Offenders Name 5 Post Closing Duties.... ---------- Correct Answer ---------- 1. Remove the for sale sign 2. Commission check to the Broker 3. Thank you letter to the seller/buyer 4. Change MLS status after closing 5. visit customer for follow up The Real Estate Settlement Procedures Act (RESPA) ---------- Correct Answer ---------- A redesigned three page Good Faith Estimate (GFE) What requirements must loan originators meet annually at renewal time? ---------- Correct Answer ---------- Have a criminal background check made What are the 8 requirements for a successful listing presentation? ---------- Correct Answer ---------- 1. all parties necessary to sign/present 2. sellers prepared to list 3. know the presentation 4. have and know the contact information 5. have a CMA 6. information organized 7. professional appearance 8. on time When showing properties to prospective buyers, licensees should set appointments.... -- -------- Correct Answer ---------- Using a range of time rather than a specific time A contract contains a contingency that the appraisal be equal or greater than the sales price. It comes back lower this contract is: ---------- Correct Answer ---------- Voidable A Seller and Buyer come to a verbal agreement for the sale of the Seller's home. The Buyer makes an earnest money deposit of $3,000 to the Seller. This is a/n... ---------- Correct Answer ---------- Unenforceable contract What is the most appropriate type of transaction when using the FAR Sale Contract? --- ------- Correct Answer ---------- Sales of a house or Vacant land What are the five categories of Sales Associates potential leads? ---------- Correct Answer ---------- Close friends and family, Friends, Customers, Acquaintances, and Targeted strangers To comply with the Americans with Disabilities Act how many parking spaces must be reserved for disabled person? ---------- Correct Answer ---------- 1 space for every 25 spaces If a Sales Associate leans back in his/her chair and joins their hands behind their head, they are demonstarting ---------- Correct Answer ---------- Superiority, non-verbally A comparable property has 3 bedrooms, while the subject property has four. the subject property is in worse condition than the comparable. The subject property doesn't have a fire place while the comparable property does. An appraiser estimates the value of a bedroom at $10,000 and the difference in condition to be $12,000 and a fireplace at $4,000. The Adjustment is... ---------- Correct Answer ---------- minus $6,000 to the Comp (remember CBS and CIA) According to Florida, law five requirements that must be included in all written listing agreements are: ---------- Correct Answer ---------- Expiration date, property description, price and terms, commission, and signatures What 2 documents will convince a Seller that a Buyer is "ready, willing and able to complete the transaction?" ---------- Correct Answer ---------- Deposit and Pre-approval letter The major reason a listing expires is: ---------- Correct Answer ---------- Overpricing A listing agreement contains a provision that says if the seller does nothing when the listing reaches the expiration date, the listing will automatically be extended for an additional 90 days. This listing is: ---------- Correct Answer ---------- Void The reason a Buyer might ride by a listing without stopping to see a property, is because it lacks: ---------- Correct Answer ---------- Curb Appeal The Federal law requiring women and minorities be treated fairly when applying for a loan is ---------- Correct Answer ---------- Equal Credit Opportunity Act What are the 4 loan processing procedures? ---------- Correct Answer ---------- 1. Qualifying borrowers 2. Appraisal 3. Title marketability 4. Prepare closing docs The reason a Sales Associate might recommend a Buyer make a 20% rather than 15% down payment is: ---------- Correct Answer ---------- Eliminate mortgage insurance If one spouse isn't available to sign a Contract to Purchase, and the parties wish to have the absent spouses' name included on the deed, they should: ---------- Correct Answer -- -------- Amend the contract at closing The Sales Associate's primary objective when answering an ad call: ---------- Correct Answer ---------- Make an appointment A pricing pyramid demonstrates that the best comparison for pricing a home comes from ---------- Correct Answer ---------- Pricing the property closet to "sold" properties When listing a property, brokers must: ---------- Correct Answer ---------- Include an expiration date, Give sellers written copies of listing agreements within 24 hours, Give sellers brokerage relationship notices at or before the of the lisitng If a seller defaults when using a FAR Sale and Purchase Contract the Buyer may: ------- --- Correct Answer ---------- Cancel the Contract A buyer wanting to avoid mortgage fraud should not sign: ---------- Correct Answer ------- --- any loan that does contain blanks If the buyer prospect needs to sell their current home before they purchase: ---------- Correct Answer ---------- See their home and make a listing presentation How is prepaid interest calculated on a new closing on OCT 20th? ---------- Correct Answer ---------- charge (debit) the buyer form Oct through Oct 31 A technique in the textbook to help sellers favor your buyers ---------- Correct Answer ---- ------ Have the buyer write a letter stating why they want to buy the seller's house