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Real Estate Practice Alternate Exam Flashcards | StudBud
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Real Estate Practice Alternate Exam
Real Estate Practice Alternate Exam
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1
What is common law which affects agency?
Laws made by the house of representatives
Laws made by senate
judgments and decrees of court
Legislation decisions
2
In the cost approach to value, the appraiser makes use of the?
Estimate replacement cost of the building
Owners original cost of the building
Sales price of similar buildings in the area
Assessed value of the building
3
When is an agent exempt from requirement of providing a consumer notice?
When a commercial property is leased to a non corporation
When discussions of a customer’s substantive needs have already taken place
When corporations or entities purchase commercial properties
When a leased is involved
4
When a buyer gives the salesperson a check for escrow money, which statement is TRUE?
The check must be deposited in an interest- bearing account.
Salesperson must deposit check immediately in brokers escrow account
Check must be deposited in brokers account by end of next business day
5
The listing agreement should include
a separate document “Authority to Market”
addendum that authorizes the broker to make legal decisions for the seller.
authority to install a For Sale sign on the property.
verification that the broker will sell the property.
6
What makes latent defects distinguishable as material defects?
They are fully visible to inspection at most material defects are not
They are hidden from ordinary inspection
They have not happened yet
They may not be used to cancel an agreement
7
Which law impacts fair housing in Pennsylvania directly?
The equal credit opportunities act
Megans law
The Americans with disabilities act
The human relations act
8
Which is not a prorated cost?
Prepaid insurance
Prepaid taxes
Principal amount of a new mortgage
Unpaid utility bills
9
What false impression do so many buyers have when they ask a salesman to show them a property?
That the sales person will represent the seller
That they will have no fiduciary duties
That the sales person will treat them as second class customers
That the sales person will be their agent
10
What is redlining decisions based on?
Credit
Race
Earnings
Sound economic grounds
11
Brokers fee and duration of contract was decided as a result of negotiation between broker and consumer by written agncy
The RELRA section 608 in the PA License las
Federal antitrust laws
National association of REALTORS code of ethics
The PA association of realtors mandated practices
12
If a military base closes, how will that affect real estate supply and demand?
This would not affect supply and demand
There will be a demand increase and a supply decrease
There will be a supply increase and a demand decrease
Supply and demand would immediately stabilize
13
9. An owner tells an agent not to show his property to a certain ethnic group, how do fiduciary duties apply?
Obedience does not apply to illegal activities and the owner’s are denied
The agent should refrain from showing, but keep owners feelings 2 ur self
The agent should show loyalty and do as the owner says
The agent should show care for the owners feelings and do as they request
14
Where would one find language in a management agreement that prohibits discrimination?
Statement of owners purpose
Reporting
Antitrust provision
Equal opportunity statement
15
Which is NOT a type of buyers agency?
Exclusive agency buyer agency
Exclusive, buyer agency
Non-exclusive agency buyer agency
Consumer buyer agency
16
What is the process of determining whether to make a loan?
Loan discounting
Loan processing
Underwriting
Credit score
17
What is the sellers main issue at settlement?
That they receive full payment as per the agreement
That they have an attorney
That the title insurance is up to date
That the property is broom clean, free of debris
18
Which is not a type of maintenance for all property managers?
Preventative maintenance
Routine maintenance
Corrective maintenance
Build outs
19
The process by which expenses are handled at settlement so buyer and seller pay their respective portions of property is
Assessment
Reconciliation
Balancing
Proration
20
Under Pa Rules and regulations, the listing period
Can be any length of time
Must be at least 6 months in duration
Is determined by the rules of local associations
May not exceed 12 months
21
What is the name of the lease clause that would terminate a lease which would otherwise not be discharged?
Discharge clause
Sale clause
Death clause
Termination clause
22
May Tells William she wants to offer $240,000 for his property within next 10 months. This unilateral contract is an
Option
Agreement
Individual contract
Installment contract
23
Which specialization real estate works most toward protecting return on investment?
Brokerage
Appraisal
Financing
Property management
24
What did the fair housing amendment act add?
Race
Color
Damages for not economic injuries
National origin
25
Which statement is FALSE about valid lease?
The deposit is greater than $100, must be put in a interest bearing account
Beginning of a second year, one month of rent escrow must be returned
Tenant not getting notice of damage deposit withheld 15 days, sue for 3time
Second Anniversary of the lease, landlord must give earned interest and 1%
26
The principal of appraisal that realizes that a property is in harmony with its surroundings is?
Highest and best use
Change
Competition
Conformity
27
What is not an example of a manager complying with ADA standards for tenants?
Have a strict no pet policy with any expectations
Provide ramps, in addition to public stairs
Print elevator signs in braille
Add grab bars in public restrooms
28
What is the insurance called for FHA?
LTV (Loan to Value)
PMI (Private Mortgage Insurance)
MIP (mortgage insurance premium)
Guarantee
29
Which date will NOT be included on a listing contract?
Termination date
Date commission earned
Date of contract
Proposed date of settlement
30
What is the expressed written, employment contract, which helps sellers sell in which the broker always gets paid?
Buyers agency contract
Exclusive right to sell
Any listing
Not exclusive, listing
31
When what a purchase money mortgage be applied?
What a buyer purchases a bond to purchase a home
When a buyer does not qualify with a lender
What a seller is 62 and wants to draw on his equity
When a buyer is over qualified
32
Under Pennsylvania rules, estimated statements of closing costs must meet which requirement?
The seller must sign the estimates.
must be presented to a buyer and a seller prior to their signing an sale
Must be exact representation of costs incurred by buyer and seller @ settle
They must disclose whom the broker represents.
33
What are and are not operating expenses for the income approach?
Debt service is; insurance payments are not
Mortgage expenses are; management expenses are not
Rat vacancies are; taxes are not
Management expenses are; mortgage expenses are not
34
Regulation Z ALWAYS applies to?
Creditors extending credit 5 times a year
All agricultural loans
Commercial loans with his LTSs
Business lenders with five or more transactions with collateral
35
An Individual has passed the license test and applied for a salesperson license. Until they get it what can they do?
Solicit listings
Advertise a house for sale
Attend the broker’s sales training program
Negotiate an agreement of sale
36
What is another name for a master-planned community?
A cooperative
A condominium
A PUD or planned unit development
A MUD or mixed use community
37
Which lease is a percentage lease for the exploration of natural resources?
Lease purchase
Ground lease
Index lease
Oil and gas lease
38
County assessors would most likely in Pennsylvania be?
Broker/appraisers
Certified Pennsylvania assessors
State certified general appraisers
State certified residential appraisers
39
May has GRI (Graduate Realtors institute) on her business card. That means
She has earned that designation graduating from real estate institute
She has graduated with a degree in Real estate
She has done work with the general real estate institution
It is determined that she can do general real estate investments
40
In a buyer agency agreement, who is the principal?
Sub agent
Buyer
Agent
Seller
41
Which does NOT terminate an agency relationship?
Death of the seller
Chapter 7 bankruptcy of the seller
Listing expiration in the MLS
Listing contract renewal with the same agency
42
An agent from a national franchise sells another agents listing and receives compensation. Agency between them in MLS
Buying agency
Sub agent
Single agency
Selling agency
43
What is legally required of a CMA?
A general statement that this is not a brokers price opinion
At least, for comparables of sold, for sale, and expired within two years
A conspicuous verbatim statement that this is not an appraisal
A plain language, definition of the word, “comparable”
44
What is a contract broker?
A customers agent
A fiduciary
A middleman between buyer and seller
A clients agent
45
What won’t renovation do for a investment?
Make it functionally suited to today’s needs
Modernize the investment to meet the owners personal feelings
Increase its potential income
Enhance is marketability
46
Landlords lease prohibits tenants from altering property,Woman in wheelchair cannot use bathroom facilities. What is tru
The tenant is entitled to make the necessary alterations
Landlord is responsible for making apartments accessible to disabilities
The landlord should not have rented this apartment to the tenant
The tenants cannot remedy these conditions because of terms of the lease
47
What is not a financial advantage of purchasing a home?
Leveling it
A short term gain
A long-term gain
Tax advantages
48
When talking to prospective sellers, PA real estate licensees must present the?
GFE (Good Faith Estimate)
Official notice
Fair Housing Act specifies
Equal housing opportunity notice
49
Which act regulated by the FTC governs how computers are protected from unwanted emails?
Junk fax prevention act
National do not email act
National do not call registry act
Can-spam act
50
What replace the virtual office website policy of the national Association of realtors?
Internet display policy
Social networking policy
Internet exchange policy
Email and texting policy
51
Why should agents be aware of the new 2015 RESPA guidelines?
They now on their own must fill out HUD-1’s
They must now give good faith estimate at the settlement table
They could be a present for failure to deliver
Failure to meet standards can delay settlements
52
Who can issue cease and desist orders to stop violations for antitrust practices?
The federal trade commission
The Sherman antitrust commission
The real estate commission
The human relations commission
53
What type of financing allows the owner of the property to use the equity as working capital?
Option to lease
Sale and leaseback
Buydowns
Purchase-money mortgage
54
Which is the only ad that is not restricted by Fair housing guidelines?
“Diverse Neighborhood”
“Hispanic heritage area”
“Homes near good catholic high school”
“Handicap accessible”
55
SUSAN bought her home three years ago. Capital gain of 200,000 if the capital gains rate is 25% what will she pay?
$200,000
$18.75
0
$50,000
