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Real Estate Exam > Set 8 > Flashcards

Set 8 Flashcards

1
Q

Who is responsible to demonstrate evidence of CE compliance?

Each renewal applicant
IDFPR
Managing Broker
MLS Boards

A

Each renewal applicant

Each renewal applicant must provide some sort of CE compliance evidence when attempting to renew their license.

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2
Q

T/F: You don’t have to do CE if you are:

Military
Federal/state official
Full time employee of Department

A

True

You don’t have to do CE if you are:

Military
Federal/state official
Full time employee of Department

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3
Q

Can a licensee receive a referral fee from an entity that’s involved in the transaction?

A

No

RESPA prohibits real estate licensees from receiving a referral fee from any entity associated with the real estate transaction.

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4
Q

T/F: It will be the Department of Justice who files lawsuits in ADA cases.

A

True

It will be the Department of Justice who files lawsuits in ADA cases.

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5
Q

Which governmental agency files suits in ADA cases?

A

Dept. of Justice

It will be the Department of Justice who files lawsuits in ADA cases.

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6
Q

When must a model home comply with ADA guidelines?

If the home is price more than $250,000.
If the subdivision has more than 20 lots.
If the home is more than 2,000 sq. ft.
If the home also has a sales office area.

A

If the home also has a sales office area.

A model home that also operates as a sales office area must meet ADA guidelines that may include wheelchair ramps.

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7
Q

T/F: If a person believes he or she has been discriminated against, they have 2 years to file a complaint with HUD

A

False

The injured party has up to 1 year to file a discrimination complaint with HUD.

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8
Q

T/F: “Layering down” is the practice that helps move low-income persons into previously-owned higher income owner properties

A

False

It’s called “Filtering down”

This is the practice known as filtering down.

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9
Q

Which Fair Housing Law added sex to the list of protected classes?

Jones v. Mayer
Title VIII of the Civil Rights Act of 1968
Housing and Community Development Act
Fair Housing Amendments Act

A

Housing and Community Development Act

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10
Q

Which Fair Housing Law added sex to the list of protected classes?

A

Housing and Community Development Act

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11
Q

Is an all cash sale exempt from RESPA (Real Estate Settlement Procedures Act)

A

Yes

All cash sale is exempt from Real Estate Settlement Procedures Act

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12
Q

What is the purpose of RESPA (Real Estate Settlement Procedures Act)?

The Act is designed so title companies can compare service fees.
That home buyers understand their purchase contract.
That home buyers receive the correct figures pertaining to their closing costs.
The Act is designed so lenders can compare companies’ mortgage fees.

A

That home buyers receive the correct figures pertaining to their closing costs.

So home buyers know closing costs

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13
Q

What is the title of the booklet that lenders must give to every person at the time of application for a loan?

“Your loan, your home”
“Your home loan toolkit”
“Your mortgage home loan”
“Protect your investment”

A

“Your home loan toolkit”

Your home loan toolkit is the booklet given to each mortgage applicant.

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14
Q

The ____ is the document required by RESPA (Real Estate Settlement Procedures Act) to detail the costs that the buyer and seller will pay at closing

A

Closing Disclosure

Closing Disclosure is the document

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15
Q

At times, the women’s shelter at St. Mary’s Catholic Church has rental units open to the public. Are they allowed to advertise for female renters only?

Yes, gender based ads for shared living housing is acceptable.
Yes, provided all renters are Catholic.
No, ads cannot target specific gender types.
Religious-type institutions do not have to comply with fair housing laws.

A

Yes, certain gender-based ads for shared housing living are reasonable

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16
Q

Section 1450.145 defines a “Page” as what?

Each page containing over 300 words

A landing page

Each html document

Mircrosite

A

Each html document

An internet “page” is an individual html document.

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17
Q

The _____ is the official starting point for a non-judicial foreclosure that’s generally handled outside of a courtroom.

A

Notice of default

The notice of default is the official starting point for a non-judicial foreclosure that’s generally handled outside of a courtroom.

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18
Q

Time limit for an estate at will

A

None

An Estate at will has no time limit for so long as it continues to be mutually agreed to by the landlord and tenant.

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19
Q

T/F: The landlord can file for constructive eviction

A

FALSO

It is the tenant who can file for constructive eviction due to issues related to things like the landlord not keeping the property in good shape

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20
Q

A comparative market analysis is not an appraisal. CMAs are done by ______

A

Real Estate Licensees

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21
Q

Who does a comparative market analysis?

A

Real Estate Licensees

CMAs are done by real estate licensees.

22
Q

The ______ approach attempts to estimate either the property’s replacement cost or reproduction cost.

A

Cost approach

Reliable for properties that were built recently.

23
Q

T/F: A time share involves different owners owning a unit in a condominium as tenants in common

A

True

A time share involves different owners owning a unit in a condominium as tenants in common (which is inheritable to the heirs). Each owner owns a different period of time, often referred to as interval ownership.

24
Q

The seller can accept or counter how many offers?

Three
Two
Unlimited
One

A

One

The listing agent would want to ensure that the seller understands that she or he can accept or counter only one offer; the seller cannot counter more than one offer.

25
Q

The buyer’s closing costs include the

existing mortgage payoff.
transfer taxes.
title insurance.
credit report.

A

credit report.

The buyer’s closing costs include the credit report.

26
Q

Who pays the state and county transfer tax?

Buyer
Seller
Evenly divided between the buyer and seller
Negotiated between the buyer and seller

A

Seller

The seller pays the state and county transfer tax.

27
Q

In Illinois, the day of closing belongs to __________.

The title company
The seller
The buyer
The lender

A

The seller

In Illinois, the day of closing belongs to the seller.

28
Q

What are the 7 federally protected classes?

A

fg cord

familial status
gender
color
origin
race
religion
disability
29
Q

What are the three situations in which there are no exemptions to fair housing law:

A

1) based on race
2) in advertising
3) if a broker is involved.

30
Q

Licensees must remember that there are three situations in which there are no exemptions to fair housing law. What are they?

A

1) based on race
2) in advertising
3) if a broker is involved.

Licensees must remember that there are three situations in which there are no exemptions to fair housing law: 1) based on race; 2) in advertising; and 3) if a broker is involved.

31
Q

Who is responsible for disbursing escrow money upon consummation or termination of the transaction?

The title company
The sponsoring broker
The buyer’s agent
The listing agent

A

The sponsoring broker

The sponsoring broker must disburse escrow money upon consummation or termination of the transaction.

32
Q

T/F: Records of escrow account transactions must be kept on file for five years

A

True

33
Q

Regarding short sales, would a chronic history of seeking and exceeding higher credit limits be considered a “hardship”

A

No

A chronic history of seeking and exceeding higher credit limits would not count as a hardship

34
Q

T/F: A brokerage is not allowed to advertise the property as “distressed” unless the seller gives permission.

A

True

brokerage is not allowed to advertise the property as “distressed” unless the seller gives permission.

35
Q

Why is it important to know what types of loans the seller holds on a short sale property?

A

The types of loans on the property make a difference in how a lender treats a short sale. The lender is likely to be more receptive when it is able to recoup a greater share of loss from a prior guaranteed loan arrangement.

36
Q

T/F: a hardship letter detailing why the seller is unable to make the mortgage payment is a common document for a short sale

A

True

Hardship letter detailing why the seller is unable to make the mortgage payment common doc

37
Q

T/F: Although u can’t list a property as “distressed” without the owners permission, the MLS may require a short sale disclosure.

A

True

The brokerage is not allowed to advertise the property as “distressed” unless the seller gives permission. However, the MLS may require a short sale disclosure.

38
Q

T/F: Regarding the “cash for keys” program, lenders pay borrowers to vacate a property without damaging it.

A

True

Regarding the “cash for keys” program, lenders pay borrowers to vacate a property without damaging it.

39
Q

Would the following statement be a violation of anti-trust: “The standard commission rate in our area is 6%.”

A

Definitely a violation. There cannot be “standard” or “going” rate. Even stating that it exists is a violation.

40
Q

“Our company requires that all our listings include an 8% commission.”

Does this statement violate anti trust?

A

No, this statement is okay.

This statement can be made to a seller when attempting to get a listing because companies can have a policy requiring a set commission. However, this statement could not be made by one licensee to a licensee affiliated with another company.

41
Q

T/F: “Per se” violations require no further inquiry into the actual effect of the practice or the intention of those who engaged in the practice.

A

True

42
Q

Violations of anit-trust can result in ___ years of prison time

A

Violations of the Sherman Anti-Trust Act can include prison terms of up to 10 years and maximum fines of $100 million for corporations and $1 million for individuals.

43
Q

T/F: A perc test is for the purpose of determining the absorption rate of soil.

A

True

A perc test is for the purpose of determining the absorption rate of soil.

44
Q

The seller is not required to test for lead but must allow the buyer ________ days for lead inspection.

A

10 days

The seller is not required to test for lead but must allow the buyer a ten-day period for lead inspection.

45
Q

Do the real estate licensees have to sign the radon disclosure?

A

Yes

The Disclosure of Information on Radon Hazards must be signed by all parties to the transaction, as well as real estate licensees.

46
Q

A buyer who is purchasing land on which to build that is not on a city or county sewer system would need to have a ______________.

Radon test
Lead test
Perc test
Mold test

A

Perc test

A buyer who is purchasing land on which to build that is not on a city or county sewer system would need to have a perc test.

Filtration of soil and shit

47
Q

The Illinois Radon Awareness Act requires sellers to provide buyers with a pamphlet entitled _____________________________.

Radon - the Invisible Killer
Radon Testing Guidelines for Real Estate Transactions
Radon and Your Family - What You Need to Know
The Dangers of Radon

A

Radon Testing Guidelines for Real Estate Transactions

The Illinois Radon Awareness Act requires sellers to provide buyers with a Disclosure of Information on Radon Hazards, and a pamphlet entitled “Radon Testing Guidelines for Real Estate Transactions.”

48
Q

T/F: HUD now requires that the sale of all HUD properties include a mold disclosure.

A

True

HUD now requires that the sale of all HUD properties include a mold disclosure.

49
Q

T/F: The sale of all HUD properties must have a perc certification

A

False

50
Q

T/F: The Illinois Radon Awareness Act requires sellers to provide buyers with a pamphlet entitled “Radon Testing Guidelines for Real Estate Transactions.”

A

True

The Illinois Radon Awareness Act requires sellers to provide buyers with a Disclosure of Information on Radon Hazards, and a pamphlet entitled “Radon Testing Guidelines for Real Estate Transactions.”

51
Q

How long does a person have who has been discriminated against to file a complaint with the Department of Housing and Urban Development (HUD)?

A

1 year

A person has 1 year in which to file a complaint with HUD,

52
Q

T/F: General agency means that one performs an “ongoing” responsibility, such as managing a property.

A

True

General agency means that one performs an “ongoing” responsibility, such as managing a property.

Real Estate Exam (26 decks)

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