Real Estate Transactions and Property Valuation, Exams of Real Estate Management

Download Real Estate Transactions and Property Valuation and more Exams Real Estate Management in PDF only on Docsity! 45 Hour Post Licensing Exam 100 questions and answers passed exam A married couple have prequalified for a $240,000 conventional mortgage. If they put 20% down, they can buy a house for - >>>>$300,000 What facts need not be disclosed in a real estate transaction? - >>>>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? - >>>>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? - >>>>$100,534 Filing a suit to quiet title is used when - >>>>a title defect is found, which is difficult to remove by ordinary means. What are the benefits of restrictive covenants? - >>>>Maintain and enhance value What's the downside for a principal who has a single agent? - >>>>Responsible for the single agent's acts What is the likely cause of a contract for sale of real estate being ruled as unenforceable? - >>>>Unwritten agreement Aside from a property's location, what is the most important factor that influences market value? - >>>>Highest and best use The margin is - >>>>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? - >>>>$107,500 How often do mortgage loan originators need to have a criminal background check? - >>>>Every year A written listing agreement with a self-renewing clause - >>>>is void. When you explain the pricing process during a listing presentation, you would NOT ordinarily discuss - >>>>the process of closing a sale. What are the three keys to prospecting success? - >>>>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 - >>>>paraphrasing. Which party may pay a licensed personal assistant for selling activities? - >>>>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 - >>>>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 - >>>>a residential sale. Which would be considered a preclosing duty? - >>>>Making a walk-through inspection of the property A buyer is closing on the purchase of a residence. The ad valorem taxes for the year are estimated to be $2,640. The closing date is February 1, and the day of closing belongs to the buyer. Using the 365-day method, what is the proration? - >>>>Debit seller, credit buyer $224.22 Under the Americans with Disabilities Act, there must be at least one accessible parking space for every - >>>>25 spaces. What is the purpose in having your buyers write a letter to the seller saying why they want to buy the home? - >>>>To help sellers favor your buyers over competing buyers An economic contraction is - >>>>the phase of a business cycle after a recession in which consumer confidence is shaken and consumers reduce spending. 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? - >>>>Because a prospective buyer may stay longer in some houses than the sales associate had planned A sales associate was preparing a comparative market analysis for a three-bedroom home. One of the three comparable sales he reviewed had an extra bedroom and a larger lot. He made a $7,000 adjustment for the extra garage stall and a $4,000 adjustment for lot size. Which is TRUE about his analysis? - >>>>The subject home is less valuable than the comparable property. Pyramiding gives the impression of - >>>>superiority. What must be given to borrowers within three days after the loan application? - >>>>Loan estimate A noncash expense similar to depreciation that accounts for the eventual wearing out of major components of the property is called - >>>>reserves for replacements. The components of a full title report are - >>>>a survey, a physical inspection of the collateral, and a search of the records. 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? - >>>>15 A person who calls for the address of a property is likely - >>>>looking at a real estate classified ad. A feature of a biweekly mortgage is - >>>>26 annual payments. An economic recovery is defined as - >>>>two successive quarterly increases in the gross domestic product. What are the five categories of a sales associate's leads? - >>>>Close friends and family, friends, customers, acquaintances, and targeted strangers A person may not send a commercial advertising fax unless he has - >>>>an established business relationship. Under the Americans with Disabilities Act, if the removal of barriers can be accomplished with little difficulty or expense, it is considered - >>>>readily achievable. Social media is defined as - >>>>technology for people who want to create and share information in the virtual communities they join. Which is NOT a requirement for a listing? - >>>>Having a self-renewing clause The minimum legal description for a platted subdivision would include - >>>>subdivision name, county, lot and block number, plat book and page number. What are the best sources for a property's legal description that will be used in a contract? - >>>>The county clerk's office, owner's deed, previous title policy What is NOT the purpose for making a preclosing walk-through inspection? - >>>>To check that all items are in working order 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? - >>>>Home inspector Information on the do-not-call registry includes - >>>>the person's phone number. 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 - >>>>payment history. The Fair Housing Act does NOT protect persons - >>>>in a same-sex relationship. What usually happens when a listed property is overpriced? - >>>>The listing expires. In what case would sales tax be required for personal property included in a house sale? - >>>>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? - >>>>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? - >>>>20 // 800 homes ÷ 8 years = 100 homes listed annually. 100 × .20 = 20 homes listed by the sales associate. A sales associate who asks a prospective buyer, "How many bedrooms do you need in the house?" is - >>>>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 - >>>>Monday. Antitrust laws - >>>>prohibit price fixing. At closing, a seller will be asked to sign an affidavit that - >>>>there are no liens or rights to file a lien on the property. When staging the home, the seller should - >>>>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 - >>>>$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? - >>>>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 - >>>>make an appointment to see the home and list it. Which event automatically allows a buyer to void a purchase and sale contract? - >>>>The appraisal value is lower than the value required in a contract contingency. An example of redlining occurs when - >>>>a loan officer tells a buyer that the mortgage interest rate will be higher because the home is located in a minority area.