Jacks questions Flashcards by Kayla Colby

Which is legal in Montana?

Net listings

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The Broker’s trust account:

must be maintained in a Montana financial

institution.

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When should a Broker confirm that a
listing form has been properly
completed by the Salesperson?

before the seller signs the listing

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A Broker mistakenly placed the earnest money
into the firm’s general account rather than into
the trust account. The Broker is guilty of:

commingling

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Does a resident property manager need
to have a Montana Property Manager’s
license?

No, a resident property manager is
exempted from having a Property
Manager’s license.

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A Supervisory Broker’s license is revoked. The

Salespersons’ licenses are:

suspended and must be returned to the

Board by the Broker.

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A Broker on office floor duty meets a
prospective buyer. A buyer agency
relationship is formed when:

The Broker and Buyer sign a buyer

agency agreement.

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A Broker must disclose to the seller:

The buyer who wants the seller to
finance the deal has a history of credit
abuse.

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Which party pays for the roof inspection
contingency if the contract of purchase
does not specify?

the buyer

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If the seller and buyer sign a purchase
agreement that instructs the Broker to
wait for 8 months before depositing the
earnest money, the Broker should:

follow the instructions in the purchase

agreement

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Upon written request, the Board will

clarify?

trust accounting rules

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Earnest money for a real estate

transaction:

is not required by law in any state

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Under Montana law, mineral and water

rights:

Are divisible and separable

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What should be done with the earnest money

in a cooperative sale?

The earnest money must be deposited
within 3 business days unless otherwise
specified

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Montana law requires a Representation

Disclosure Form to disclose:

whom the licensee will represent in the

transaction

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The seller is out of the country. The
Broker has received a written offer that is
acceptable to the seller. The seller
indicates via phone that she wants to
accept. The Broker should:

use a facsimile transfer or electronic

means to obtain the seller’s signature

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A listing Broker carefully explained to the buyer
that the Broker represented the seller. The
buyer stated that he clearly understood the
relationships. Has the Broker acted lawfully?

No, the agency relationship disclosure must

be written and signed by the buyer.

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A listing must have:

the signatures of all listing owners of

record

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An ad for a listed property should include

which of the following?

the agent’s license status

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A Montana Broker may split a commission with

a Idaho salesperson only if:

the commission is paid to the Idaho

salesperson’s supervising Idaho Broker

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A licensee representing only the seller
must provide the Relationship Disclosure
Form to the buyer or buyer’s agent no
later than when:

Negotiations commence

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A listing Broker must:

have a termination date in the listing

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A listing firm and selling firm are cooperating
on a 50/50 basis to sell a large ranch.
Unfortunately, the buyer’s large earnest money
check didn’t clear the bank.

The seller agent should notify the seller that
there is no earnest money with the buyer’s
offer.

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Prior to license suspension, a Broker is entitled

to a hearing before the Board UNLESS:

by stipulation the Broker has waived the

right to a hearing

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A listing Broker must:

attempt to verify ownership

The employment contract between the | Broker and salesperson should include:

the salesperson’s tax status

A salesperson doesn’t pay her license renewal fee. Her license is terminated. If she later decides to re-enter the profession four years later, she must:

retake the licensing examination

A goal of the Affirmatively Furthering Fair | Housing regulation was to:

ban single family zoning in all parts of | the U.S.

The Buyer Broker may receive a | commission from:

any party with the knowledge and | consent of the buyer

Local governments enforce zoning laws by | requiring a/an?

building permit

A real estate broker has a listing in a residential subdivision which has undergone government condemnation. The listing is:

Terminated

How can a homeowner limit the impact of a mortgage default on the homeowner’s future credit rating?

Deed in Lieu of Foreclosure

Which is true if the lender accepts a Deed in Lieu of Foreclosure from a defaulting mortgagor?

The lender takes title to the property | subject to any junior liens.

Q plans to purchase property by using a | contract for deed.

The payment of all or part of the | purchase price will be deferred.

A Purchase Money Mortgage specifies | each of the following EXCEPT:

debt to income ratio

State law requires that all mortgages be | signed by:

the mortgagor

The rights in foreclosure may be changed | by:

a subordination agreement

``` Local Bank desires to be able to foreclose on mortgaged property without utilizing the court system. Local Bank should insert which provision in all of its mortgages? ```

Power of sale clause

Which mortgage clause is most important to the lender if it is contemplating a foreclosure?

Acceleration clause

The owner of a vacant lot currently has a mortgage on the property. The owner desires to obtain a construction loan. It will most likely to be necessary for the owner to obtain a/an:

subordination agreement

The government takes a parcel of property with unknown ownership. This is an example of:

Escheat

Which of the following is true regarding | zoning regulations?

they impact the property’s value but | not the property’s title

The right of an individual or individuals to use and possess real property and to exclude all others is:

fee simple

A homeowner within a subdivision that has extensive restrictive covenants has discovered a violation of the covenants. The homeowner:

may sue anyone in the subdivision | violating the restrictions.

A and B purchase land as joint tenants. A dies. Who owns the property?

Each of the following may be joint | tenants EXCEPT:

a government or a corporation

A, B, and C have invested in an office building as joint tenants. W is interested in purchasing C’s portion of the property.

W may purchase C’s portion and will become a | joint tenant with A and B.

A gives B an ordinary life estate. The life | estate will terminate upon death of the:

recipient

Allison and Trimble desire to purchase an investment property without establishing a right of survivorship. They should utilize which real property ownership form?

Tenancy in Common

A lien:

is created to use property as security | for a debt

In a condominium, the balconies, the post office boxes, the storage areas, and the designated parking spaces are all examples of:

limited common elements

Which document is recorded by a lender at the same time that the lender initiates a mortgage foreclosure action?

a lis pendens

A Broker lists a property. The Buyer | rejects Buyer Agency. Which is correct?

The Seller is the principal and the Buyer | is the prospect.

Which refers to a listing where the listing Broker might receive no commission even though the listing Broker was the procuring cause of the sale?

A net listing

If a mortgage is assumed, who would sign | the novation to release the mortgagor?

mortgagee

An optionee is obligated to:

pay consideration for the option

If a contract is entered into by an intoxicated person, the intoxicated person may treat the contract as:

Voidable

An enforceable contract requires:

valuable consideration

A seller listed a building at $800,000 but the furniture wasn’t included. A buyer offered $800,000 with the furniture to be included. The seller signed the document but crossed out the reference to the furniture.

This is a counteroffer and a rejection | of the buyer’s offer.

Is it legal for a seller to restrict | development to 2 acres or more per tract?

Yes because this does not violate | public policy.

Which of the following is an example of a | real property interest?

a ceiling fan

Which of the following refers to a right | which runs with the land?

an appurtenance

``` A tenant with a 1-year lease does legal research to determine what will happen if the landlord sells the property. Assume that there is nothing in the lease addressing the situation. ```

``` The lease is not affected in any way and the new owner cannot take possession of the rental unit until the lease terminates. ```

When showing an apartment rental to a prospective tenant, the property manager explained that the SubZero refrigerator was included in the lease. The tenant moved in but the prior tenant had removed the refrigerator that belonged to him. Is the new tenant entitled to the prior tenant’s refrigerator?

No because it belonged to the prior | tenant.

``` An optician signed a 1-year lease. At the end of the year, the optician simply moved out without any further oral or written notice. Does the optician owe an extra one month’s rent? ```

No because no notice is required

A leased property is sold. Which takes | legal precedence?

The Lease

Which of the following is an | appurtenance?

A tree in the yard

``` When his listing expired, Broker Carl provided both the seller and the next listing broker with the names of the persons to whom Carl had shown the property. This was done to satisfy which listing provision? ```

Protection Provision

Several real estate firms agree not to cooperate with another firm offering very low listing commissions. This agreement is:

boycotting which violates the Sherman | Antitrust Act.

In return for providing financing for a developer, a Broker is given the exclusive listing on all properties in the development. The Broker is:

an agent coupled with an interest

If the government condemns the whole neighborhood, including your listing, what happens to your listing?

The listing is terminated

A residential tenant died. The landlord seizes the tenant’s furniture in an attempt to collect the balance owing on the rent. This is an example of illegal:

Distraint

``` A tenant failed to pay rent. Which provision in the lease would permit the landlord to avoid a civil trial yet enter a judgement against the tenant in the public records? ```

Confession of Judgment Provision

A buy-sell agreement calls for the seller to provide a standard title policy issued by a title company of his choice. The buyer offers to increase the purchase price and thus the net proceeds to the seller and Broker if he can use a different title company. This is

Lawful

Mary is a licensed Broker acting as a property manager. She receives a rental application from a Russian who will be working in a local hospital to gain knowledge to return to a similar position in Russia. Mary is concerned about the applicant’s visa status. Mary is best advised:

not check the applicant’s visa status.

Antitrust laws are designed to:

Promote business competition

Which environmental hazard is most | easily detected AND mitigated?

Radon

A listing seller says that she will only consider cash offers. The broker should present:

ALL offers

Under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), who is liable for damages from industrial pollution on the property?

Seller

A borrower has a negatively amortized loan. Which of the following is true about such loans?

The monthly payment is insufficient to pay the interest thus the loan balance is increasing.

An adjustable-rate mortgage (ARM) would have potential | disadvantages for which of the following borrowers?

A retired couple

In a loan with private mortgage insurance (PMI) which of the following is true?

The borrower will have a smaller down payment

In a residential neighborhood the Megan’s Law registry indicates an individual on the registry lives in the neighborhood. What are the implications of this fact?

Residential real estate values may decrease.

At closing, which of the following transactions are likely to be part of the settlement statement?

Property taxes paid in advance will be prorated and a credit to the seller

Which of the following would not be considered relevant in determining if a real estate broker or salesperson violated Federal Fair Housing laws?

The motives of the broker

An adjustable-rate mortgage would be most | disadvantageous for which borrower?

A retired couple

How much or little land is available to sell | reflects the concept of:

Scarcity

When a property manager receives a security | deposit for a rental, what should they do next?

Give it to the Broker who will put it in the trust account.

A transfer tax levied by the city or state is | computed based on:

The sale price of the property.

A settlement charge at closing that is NOT | prorated is:

The sale price

On a convention mortgage with a high loan-to-value ration, the mortgage insurance is paid by:

The Buyer

In the U.S. Government Survey, the line | running East and West is called:

The Baseline

The replacement cost of a property as used in the cost method of valuation is described as:

The cost to build a property with similar materials and utility.

The fact that land and other real estate can be | used for many things is the basis of value from:

Utility

Avulsion: A big storm, 100-year flood, etc. washes away half of your property. Did the property line change?

NO!

What an appraiser does to weight the three methods | used in appraisal to arrive at the final estimate of the value.

Reconciliation:

number in a Township starting in the NE corner and east | to west and then back west to east; serpentine!

Sections

VA loans require an appraisal from a

VA certified appraiser

Package or Chattel Mortgage is secured by

personal property

$5 consideration given for a written right | of first refusal is:

VALID

An offer may be accepted by:

The offeree only

``` A Broker has been charged by HUD with a violation of the Fair Housing laws. Why would the victim prefer to have the dispute heard by a Federal Court rather than by an Administrative Law Judge? ```

The Federal Court judge has no limit on the amount that can be awarded as monetary damages.

An appraiser is estimated the value of a home in a neighborhood. The city has just announced that a planned park nearby will be completed within the year. The appraiser estimates that this will increase the value of the property according to the

Principle of Anticipation

An adjustable rate mortgage would be best for which | borrower?

A buyer who does not plan to own the house for | very long.

A mortgage loan balance being paid down | through periodic payments is called:

Amortization

Jacks questions Flashcards

(105 cards)