Brokerage

Question 1

created by neighborhood developers or associations to ensure that the neighborhood maintains certain standards. Examples include minimum housing size, restrictions on architectural style, or mandated underground sprinkling.

Answer 1

restrictive covenant

Question 2

the broker may help with general information or services, but she is not looking out for the specific interests of either the buying or selling party.

Answer 2

transaction brokerage

Question 3

How many square feet in one acre?

Answer 3

43,560 square feet

Question 4

requires participant to be 62 or older and converts equity into cash

Answer 4

reverse mortgage

Question 5

As opposed to personal property, this is land and everything permanently attached to it.

Answer 5

real property

Question 6

All rights and privileges belonging to the land (air, soil, water, etc.)

Answer 6

appurtenances

Question 7

articles of personal property that are attached (screwed in, etc.) and become real property.

Answer 7

fixture

Question 8

a promise of real property to secure a loan.

Answer 8

promissory note (note)

Question 9

converting real property to personal property.

Answer 9

severance

Question 10

When an agent represents both the buyer and the seller,

Answer 10

dual agency

Question 11

legally and ethically obligated to protect the principal’s interests over their own for the duration of the agent-principal relationship

Answer 11

fiduciary

Question 12

Almost always, is paid by the seller of the property. This is true even if it is to be split among the seller’s agent and the buyer’s agent.

Answer 12

commission

Question 13

the listing broker is owed a fee regardless of who makes the sale.

Answer 13

exclusive right-to-sell

Question 14

seeks to accommodate those with disabilities by broadening their access to public facilities

Answer 14

Americans with Disabilities Act

Question 15

the act of directing (or not directing) clients to a certain area based on race, religion, sex, familial status, national origin, or handicap

Answer 15

steering

Question 16

states the Annual Percentage Rate, or APR, (cost of credit) must be disclosed when borrowers apply for credit

Answer 16

Regulation Z (Truth in Lending Act)

Question 17

When real estate agents represent the buyer and not the seller of a piece of property, they are engaging in ____.

Answer 17

buyer agency

Question 18

In a ____, the real estate agent represents only the buyer or the seller of a piece of property.

Answer 18

single agency relationship

Question 19

____ is when an individual can be paid for brokering a real estate transaction, yet represent neither the buyer nor the seller.

Answer 19

transactional brokerage

Question 20

Some states have ____ that require agents to disclose who they are representing to the buyers.

Answer 20

agency disclosure laws

Question 21

When the agent and the principal agree that the agent will represent the principal, it is called ____.

Answer 21

express agency

Question 22

When the agent and the principal have not officially agreed that the agent will represent the buyer, but their actions imply this, it is called ____.

Answer 22

implied agency

Question 23

When a principal doesn’t stop an agent from going beyond his or her normal line of duties, this is called ____.

Answer 23

agency by estoppel

Question 24

When an agreement is formed between an agent and a principal after a sale is confirmed, this is called ____.

Answer 24

agency by ratification

Question 25

When an agent is invested in a project outside his or her agent status, this is called ____.

Answer 25

agency coupled with an interest

Question 26

When a broker is given the right to collect the commission, no matter who sells a property, this is a(n) ____.

Answer 26

exclusive right to sell listing

Question 27

When a homeowner reserves the right to sell his or her own property, but offers the exclusive right for only one agent, this is a(n) ____.

Answer 27

exclusive agency listing

Question 28

When a property owner wishes to use multiple agents to sell a property, this is a(n) ____.

Answer 28

open listing (non-exclusive, general listing)

Question 29

____ were put in place to make sure that property buyers’ rights are protected.

Answer 29

buyer agency agreements

Question 30

Buyers should receive a settlement statement ____.

Answer 30

settlement statement (HUD-1 statement)

Question 31

useful because it takes interest and fees and extras into account, giving a rate representative of the the total amount a debtor will owe. Because of this, it will be higher than the nominal interest rate.

Answer 31

annual percentage rate

Question 32

usually tied to LIBOR or the interest rate on a Treasury bond. This means that a debtor’s payment can fluctuate over the life of the loan. Depending upon how things go, this could be a blessing or a curse.

Answer 32

variable interest rate

Question 33

PITI

Answer 33

Principle interest prorated taxes by month insurance by month

Question 34

What feature of a loan allows the creditor to initiate a foreclosure?

Answer 34

demand feature

Question 35

secures a loan

Answer 35

collateral

Question 36

let the lender take a specific asset of the borrower; in residential real estate, this is usually the house.

Answer 36

equitable charges

Question 37

provides the framework for the transfer of a loan balance

Answer 37

assumption policy

Question 38

Lenders must redisclose a loan estimate if the APR is ____

Answer 38

one-eighth of a percentage point higher or lower than the APR that was initially disclosed to the borrower

Question 39

If a borrower refinances or an existing loan is assumed by a new borrower, ______ may be required of the lender.

Answer 39

subsequent disclosure

Question 40

Within three days of receiving their loan closing documents, borrowers can change their minds, even if the loan terms are exactly what the lender promised.

Answer 40

right of rescission

Question 41

Who can originate a loan?

Answer 41

creditors, lenders