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Real Estate Exam > 15 hour course > Flashcards

15 hour course Flashcards

1
Q

T/F: Providing a copy of the restrictive covenants to the buyer is not a legal requirement.

A

True

Not a legal requirement

Providing a copy of the restrictive covenants to the buyer is not a legal requirement.

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2
Q

T/F: The CMA should not be given to the seller until the seller has listed his or her property with the broker.

A

True

The CMA should not be given to the seller until the seller has listed his or her property with the broker.

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3
Q

When are you required to disclose agency?

A

No later than beginning to work as a designated agent on behalf of the consumer, and prior to the sellers sharing confidential information.

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4
Q

What are the disclosures the seller must provide (4 total)

A

Real property disclosure,
Lead-based paint disclosure
Radon disclosure.

If HUD property, a mold disclosure also required.

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5
Q

If the buyer is requesting an unusual provision not covered by the standard contract, what should the broker suggest?

A

Answer: The broker should suggest that the buyer consults an attorney.

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6
Q

T/F: An amendment is a change made after there is a binding sales contract.

A

True

An addendum is part of the original offer.

An amendment is a change made after there is a binding sales contract.

As an example, if the parties want to change the closing date, an amendment would be used.

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7
Q

Why is it important for the agent to provide the buyer with a blank copy of the sales contract prior to the buyer finding a home to purchase?

A

Reviewing a blank contract would make the buyer more prepared and less anxious when he or she is ready to write an offer.

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8
Q

What must a licensee do at first contact with a buyer?

A

Answer: Ask if the buyer has an exclusive agency agreement with another licensee, and disclose agency.

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9
Q

What are the three minimum duties required when a buyer’s agent has entered into an exclusive agreement with the buyer?

A

Accept delivery & present offers/counteroffers

Assist in developing, communicating, negotiating, and presenting offers/counteroffers, and notices

Answer client’s questions relating to the offers/counteroffers, notices, and contingencies

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10
Q

What are the buyer’s options if the Real Property Disclosure Report is not provided to the buyer prior to the buyer signing the offer.

A

Buyer may take action within one year of the date of:

possession, date of occupancy, or date of recording of an instrument of conveyance of the residential real property (whichever is earlier.)

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11
Q

If the Real Property Disclosure Report is not provided to the buyer, he has how many years to take action

A

1 year

If the report is not received or in error, the buyer may take action within one year of the date of possession, date of occupancy, or date of recording of an instrument of conveyance of the residential real property (whichever is earlier.)

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12
Q

Seller Mary is currently under an exclusive buyer agency agreement with Broker Sam. She meets Broker Adam at a soccer game and they discuss real estate trends. What action can Adam take, if any, when Mary contacts him and asks Adam to help her find a home?

He can have Mary sign a buyer agency agreement after obtaining permission from his sponsoring broker and Sam’s sponsoring broker.

He can end the conversation and wait until Mary’s current agreement expires.

He can discuss the terms of a future agency representation with Mary that becomes effective after her current agreement expires.

Advise Mary to cancel her current agreement prior to signing an agreement with him.

A

He can discuss the terms of a future agency representation with Mary that becomes effective after her current agreement expires.

Seller Mary is currently under an exclusive buyer agency agreement with Broker Sam. She meets Broker Adam at a soccer game and they discuss real estate trends. When Mary asks Adam to help her find a home, he can discuss the terms of a future agency representation with Mary that would become effective after her current agreement expires.

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13
Q

Is a dual agent permitted to prepare a CMA for the buyer to assist him/her in deciding on an offer?

Yes. The agent should help the buyer determine an offer price.

No.

Only with permission of the seller.

Yes, if the agent does not include a suggested offer price.

A

Yes, if the agent does not include a suggested offer price.

A dual agent is permitted to prepare a CMA for the buyer if the agent does not include a suggested offer price.

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14
Q

T/F: If more than one offer was countered, the seller could end up selling his home to more than one buyer.

A

True

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15
Q

If more than one offer was countered, the seller could end up

having to pay double the commission.

having to forfeit any proceeds.

selling his home to more than one buyer.

making twice as much money.

A

selling his home to more than one buyer.

If more than one offer was countered, the seller could end up selling his home to more than one buyer.

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16
Q

How many offers can a seller counter?

A

1

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.

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17
Q

The listing broker should disclose the existence of multiple offers

any time multiple offers exist.
if asked by a buyer’s agent.
never.
with permission of the seller.

A

with permission of the seller.

The listing broker should disclose the existence of multiple offers with permission of the seller.

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18
Q

4 Steps of CMA process

A

Step One: Collect and Analyze Data

Step Two: Select Comparables

Step three: Compare and Adjust Comparables

Step Four: Suggest Range and Price

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19
Q

T/F: When doing CMA, if a comparable lacks a feature the subject property has, agent will add the value of that feature to the comparable.

A

True

When a broker is preparing a CMA, he collects data on the seller’s property and a number of comparable properties. If a comparable lacks a feature the subject property has, he will add the value of that feature to the comparable.

20
Q

T/F: n computing the state transfer tax the amount of any conveyed personal property or assumed loan is subtracted from the sales price.

A

True

In computing the state transfer tax the amount of any conveyed personal property or assumed loan is subtracted from the sales price.

21
Q

T/F: A charge that would most likely be prorated between the buyer and seller is real estate taxes.

A

True

A charge that would most likely be prorated between the buyer and seller is real estate taxes.

22
Q

A charge that would most likely be prorated between the buyer and seller is

title insurance.

attorney’s fees.

real estate taxes.

broker’s commission.

A

A charge that would most likely be prorated between the buyer and seller is real estate taxes.

23
Q

T/F: The buyer’s closing costs include the credit report.

A

True

24
Q

T/F: When calculating closing costs in Illinois real estate taxes are paid in arrears.

A

True

25
Q

T/F: In Illinois, the day of closing belongs to the seller.

A

True

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

26
Q

___________ items are items charged to one party and received by the other.

Personal property
Sold
Prorated
Shared

A

Prorated

Prorated items are items charged to one party and received by the other.

27
Q

Can a real estate ad say “close to xyz high school” if it’s a religious high school?

A

No

Licensees cannot use references to religious landmarks in advertising.

28
Q

Where can you obtain informational brochures regarding the ADA?

The Civil Rights Division of the U.S. Department of Justice

The Housing Division of the U.S. Treasury Department

The Humanity Division of the U.S. Housing Department

The Equality Division of the U.S. State Department

A

The Civil Rights Division of the U.S. Department of Justice has some informational brochures regarding the ADA.

The Civil Rights Division of the U.S. Department of Justice

29
Q

T/F: As “keepers of the land,” licensees have ethical as well as legal obligations to ensure that the only limit for buyers is their financial ability to purchase a property.

A

True

As “keepers of the land,” licensees have ethical as well as legal obligations to ensure that the only limit for buyers is their financial ability to purchase a property.

30
Q

How to remember the 7 federally protected classes

A

fg cord

familial status
gender
color
origin
race
religion
disability
31
Q

7 federally protected classes

A

fg cord

familial status
gender
color
origin
race
religion
disability
32
Q

How many situations are there where there are no exceptions to the fair housing law

A

3

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

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

33
Q

If one of the parties to an accepted sales contract refuses to close, the licensees should

advise the party that he/she must close as contracted.

create an addendum for both parties to sign

advise the parties that they may want to contact an attorney to protect their interests.

advise the party of the legal consequences of breaching the contract.

A

advise the parties that they may want to contact an attorney to protect their interests.

If one of the parties to an accepted sales contract refuses to close, the licensees should advise the parties that they may want to contact an attorney to protect their interests.

34
Q

T/F: The sponsoring broker must disburse escrow money upon consummation or termination of the transaction.

A

True

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

35
Q

Can promissory notes be accepted as earnest money?

A

Yes

Promissory notes can be accepted as earnest money, but the seller must be informed by a clear statement in the offer to purchase.

36
Q

What term applies to this definition:
“A list of the sponsoring broker’s escrow accounts, including the name and location of the banks where the accounts are located”

A

Master Escrow Account Log

37
Q

T/F: Earnest money deposits can be in the form of:

Personal checks, cashier’s checks, money orders, cash, or any other forms of legal tender.

A

True

Personal checks, cashier’s checks, money orders, cash, or any other forms of legal tender.

38
Q

When must earnest money be deposited?

A

By the next business day of contract acceptance.

39
Q

T/F: Regarding Escrow accounts:

Branch offices may choose to maintain their own escrow accounts or may choose to transmit all escrow moneys to the main office.

A

True

Branch offices may choose to maintain their own escrow accounts or may choose to transmit all escrow moneys to the main office.

40
Q

___ property is property undergoing a reduction in market price due to the pressures of a threatened foreclosure, divorce, estate settlement, drastic economic changes, or deteriorating physical condition.

A

Distressed property

41
Q

T/F: The types of loans on the property make a difference in how a lender treats a short sale.

A

True

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.

42
Q

“The standard commission rate in our area is 6%.”

Is this statement okay?

A

No

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

43
Q

What does RESPA stand for?

A

The Real Estate Settlement Procedures Act of 1974 (RESPA)

44
Q

_____________ violations require no further inquiry into the actual effect of the practice or the intention of those who engaged in the practice.

Banner
Redaction
Faux pas
Per se

A

Per se

YOU ANSWERED INCORRECTLY
“Per se” violations require no further inquiry into the actual effect of the practice or the intention of those who engaged in the practice.

45
Q

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

A

True

Licensees sign disclosure

Real Estate Exam (26 decks)

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