Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MR Real Estate > MT Real Estate Exam > Flashcards

MT Real Estate Exam Flashcards

1
Q

Can a developer ask a purchaser to sign a waiver that relieves it from its duties under Montana statutes governing timeshares?

A - Yes, provided the purchaser is given 7 days to reverse their decision to sign the waiver.
B - Yes, provided the purchaser is made aware in writing they are waiving their rights.
C - No, this is not permissible.
D - Yes, such a waiver is between the developer and purchaser and can be negotiated accordingly.

A

C - No, this is not permissible.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

A licensee had a payment against him made from the recovery account. The licensee repaid the recovery account, so can the Board take any further disciplinary action?

A - If the licensee repays the recovery account within 30 days, no further action will be taken.
B - Repayment of the recovery account will not affect or prevent other disciplinary action.
C - If the licensee repays the recovery account, he or she will be expected to pay only the interest on the sum paid out.
D - If the licensee repays the recovery account, the Board is limited to imposing a fine of up to $500 on the licensee.

A

B - Repayment of the recovery account will not affect or prevent other disciplinary action.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How many hours of continuing real estate education are licensees required to complete each year to maintain their licenses?

A - 5 hours
B - 12 hours
C - 25 hours
D - 40 hours

A

B - 12 hours

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What feature determines whether or not a professionally prepared land survey is mandatory?

A - How complicated the survey is determines whether or not a professionally prepared land survey is mandatory.
B - It depends if it’s a survey that follows the PLSS system or if it’s a metes and bounds description
C - The intended use of the data determines whether or not a professionally prepared land survey is mandatory.
D - None of these Answers are correct

A

C - The intended use of the data determines whether or not a professionally prepared land survey is mandatory.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

If a timeshare salesperson changes affiliation between timeshare projects, what must he or she do?

A - Notify the Board of the change within 30 days and pay the fee.
B - Return his or her license to the Board and await issuance of a new license.
C - Notify the Board of the change within 10 days and pay the fee.
D - No action is necessary.

A

C - Notify the Board of the change within 10 days and pay the fee.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

How does a person reactivate an inactive property manager’s license?

A - Return the inactive license to the Board, who will send out a new active license.
B - File a change of address form, provide proof of completing 24 hours of continuing education, and pay the fee.
C - Pay a $150 reactivation fee.
D - Obtain a letter of intent for employment with a property management company and send it to the Board.

A

B - File a change of address form, provide proof of completing 24 hours of continuing education, and pay the fee.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

After receiving trust funds, how quickly must a broker deposit them into a trust account?

A - 10 days
B - 3 days
C - 10 days
D - 15 days

A

B - 3 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What MUST an application to register a timeshare contain?

A - The projected profit margin the complete development will return to the developer
B - Financial statements disclosing the financial condition of the developer and copies of all timeshare instruments
C - The names and addresses of all purchasers of the timeshare intervals
D - The projected resale value of the timeshare development

A

B - Financial statements disclosing the financial condition of the developer and copies of all timeshare instruments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What type of legal description is used to define the boundaries of the State of Montana?

A - the Public Land Survey System
B - Metes and bounds description
C - A special survey
D - the boundaries of a given number of designated townships

A

B - Metes and bounds description

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

To whom is a timeshare salesperson liable if he or she sells a timeshare interval while in violation of the timeshare laws or regulations?

A - The party buying the timeshare
B - The Company that employs the salesperson.
C - The Board
D - The timeshare’s developer

A

A - The party buying the timeshare

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are the minimum requirements for a person to offer timeshare intervals in a project?

A - Be affiliated with at least 3 registered timeshare projects.
B - Hold a valid timeshare salesperson license and be affiliated with at least 1 registered timeshare project.
C - Hold a valid timeshare broker license.
D - Be affiliated with at least 1 registered timeshare project and place a $25,000 bond with the local authorities.

A

B - Hold a valid timeshare salesperson license and be affiliated with at least 1 registered timeshare project

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What happens when a timeshare salesperson is no longer affiliated with a timeshare?

A - His or her license is immediately terminated.
B - The Board will refuse to issue him or her another license when it is due for renewal.
C - His or her license is immediately revoked.
D - His or her license is placed on inactive status until a new affiliation is formed.

A

D - His or her license is placed on inactive status until a new affiliation is formed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How is the title to the condominium itself held?

A - fee simple
B - tenancy in common
C - life estate
D - leasehold estate

A

A - fee simple

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

In any given case, how does the Board decide upon the course of disciplinary action that will be taken against a licensee?

A - Each case is decided according to specific practices set out by the HUD.
B - The Board decides on a case-by-case basis the disciplinary action it deems appropriate
C - The Board turns the case over to a tribunal of Realtors® who decide the action to be taken.
D - The Board turns the case over to the civil court system which decides the action to be taken.

A

B - The Board decides on a case-by-case basis the disciplinary action it deems appropriate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the purpose of the Montana Board of Realty Regulation?

A - To promote real estate in Montana and increase property values
B - To regulate real estate licensees and the practice of real estate in Montana
C - To generate revenue for the state through charging fees to real estate licenses
D - To ensure the commission rate real estate agents in Montana charge clients is above the national average

A

B - To regulate real estate licensees and the practice of real estate in Montana

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

If a residential property is hypothecated using a trust indenture instrument, how long does the mortgagor have to redeem their property after a foreclosure sale?

A - 30 days
B - 45 days
C - There is no right of redemption period after the foreclosure sale
D - 3 days

A

C - There is no right of redemption period after the foreclosure sale

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

If a person is caught engaging in property management without a license for a second or subsequent time, what will the potential fine be?

A - Between $50 and $200
B - Between $100 and $1,000
C - Between $250 and $750
D - Between $500 and $2,000

A

D - Between $500 and $2,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Does passing the Montana real estate exam guarantee that the Board of Realty Regulation will issue you a license?

A - Yes, the Board cannot deny issuing a license upon acceptance of an application and the successful passing of the exam.
B - Yes, the Board cannot deny a license once the test has been passed.
C - No, an acceptable applications and passing the exam does not guarantee the issuing of a real estate license.
D - Yes, upon an acceptable predetermination and application and successful test results, the Board cannot deny issuing a license

A

C - No, an acceptable applications and passing the exam does not guarantee the issuing of a real estate license.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Can a salesperson be associated with a broker who is not the broker designated on the salesperson’s pocket card?

A - Yes, a salesperson can be associated with a temporary supervising broker on a temporary basis.
B - Yes, if the salesperson and new broker have written permission from the Board.
C - No, a salesperson cannot be associated with any broker except for the one designated on his or her pocket card.
D - No, but a salesperson can act completely independently from any broker supervision on a temporary basis.

A

A - Yes, a salesperson can be associated with a temporary supervising broker on a temporary basis.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What power does the Board have?

A - The power to set standardized prices for real estate
B - None of significance
C - The power to fire a licensee from his or her real estate firm
D - The power to suspend, revoke, or refuse to issue a real estate license

A

D - The power to suspend, revoke, or refuse to issue a real estate license

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

How is an “offering” defined by the laws and rules governing timeshares?

A - An inducement to encourage a person to acquire a timeshare interest
B - An advertisement designed to generate interest in a timeshare
C - A proposal between a developer and a buyer to acquire a timeshare interest
D - A contract between a developer and timeshare salesperson to sell a timeshare interest

A

A - An inducement to encourage a person to acquire a timeshare interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Which of the following is NOT exempt from requiring a real estate license?

A - A person advertising as a real estate salesperson
B - A person conducting a right-of-way land transfer
C - A court-appointed person evaluating land in a probate matter
D - A person acting as a property manager for a state-subsidized housing complex

A

A - A person advertising as a real estate salesperson

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

If a licensee receives a citation from the Department, how long does he or she have to respond?

A - 2 calendar days
B - 5 business days
C - 10 calendar days
D - 14 banking days

A

B - 5 business days

24
Q

What is a broker NOT required to display at his or her designated physical address?

A - The broker’s license must be prominently displayed.
B - The designated address must be identified on the broker’s license.
C - The licenses of every salesperson and associated broker must be prominently displayed.
D - The broker must display his or her certificate of passing the broker’s exam.

A

D - The broker must display his or her certificate of passing the broker’s exam.

25
Q

What is the definition of an “adverse material fact” according to the Montana license law statutes?

A - A fact that should only be disclosed if specifically asked for
B - A significant fact that would affect a person’s decision to buy or sell a property
C - A fact that should remain undisclosed
D - A non-real estate-related fact

A

B - A significant fact that would affect a person’s decision to buy or sell a property

26
Q

What is the maximum amount of personal money a broker can keep in a trust fund to cover account fees and minimum balances?

A - 100
B - 500
C - 1000
D - 3000

A

C - 1000

27
Q

Does a licensed real estate salesperson or broker need a separate property manager license to engage in property management?

A - No, a licensed broker or salesperson does not need a separate property manager license.
B - Brokers acting as property managers do not need separate property manager licenses, but salespersons do.
C - Yes, a licensed broker or salesperson does need a separate property manager license.
D - Licensed brokers or salespersons are forbidden from engaging in property management.

A

A - No, a licensed broker or salesperson does not need a separate property manager license.

28
Q

What does a Board-issued salesperson’s pocket card display?

A - The name and address of the salesperson’s supervising broker and certification that the holder is a licensed individual
B - The volume of real estate the salesperson sold during the previous licensing period
C - The examining entity with whom the licensee sat their real estate exam
D - The maximum limit, in dollars, of a transaction the licensee is authorized to participate in

A

A - The name and address of the salesperson’s supervising broker and certification that the holder is a licensed individual

29
Q

How soon after terminating an association with a broker can a salesperson recommence practicing real estate?

A - After the salesperson has completed a new affiliation continuing education course
B - After the salesperson becomes associated with another broker and receives a new license from the Board
C - After 7 days
D - After 30 days

A

B - After the salesperson becomes associated with another broker and receives a new license from the Board

30
Q

If a developer sells its interest in a timeshare project, how soon must purchasers of the timeshare be notified?

A - Within 7 days of the transfer
B - Immediately after the transfer is completed
C - Within 30 days of the transfer
D - Within no specific timeframe

A

B - Immediately after the transfer is completed

31
Q

Condominiums are created by an owner or group of owners filing what document?

A - Detailed survey with the county in which the property is located
B - Certificate of Condominium Creation
C - Condominium Declaration with the county in which the real estate is located
D - townhome declaration with the county in which the property is located

A

C - Condominium Declaration with the county in which the real estate is located

32
Q

What recommendation must applicants for a salesperson’s license submit to the Board?

A - A character recommendation from a licensed broker or salesperson who has known the applicant for at least 6 months
B - A character recommendation from a public official who has known the applicant for at least 6 months
C - A recommendation from the applicant’s pre-license study course provider
D - A recommendation from broker with a supervising broker endorsement who will employ the applicant once the applicant is licensed

A

D - A recommendation from broker with a supervising broker endorsement who will employ the applicant once the applicant is licensed

33
Q

If an individual possesses a Montana real estate salesperson or broker’s licensee, can they legally resell timeshares for individual owners?

A - Yes, if they affiliated with the original developer of the timeshare being sold.
B - Yes, as long as they don’t sell more than two for the same owner and have a timeshare endorsement on their real estate license.
C - No, timeshare sales are limited to those individuals who hold timeshare licenses only.
D - Yes, as long as they have a timeshare license and are affiliated with any timeshare development.

A

B - Yes, as long as they don’t sell more than two for the same owner and have a timeshare endorsement on their real estate license.

34
Q

What is a “dual agent?”

A - An agent in a transaction representing both the buyer and seller
B - An agent in a transaction representing only the buyer
C - A person who has a real estate license and an appraisal license
D - An agent in a transaction representing neither party

A

A - An agent in a transaction representing both the buyer and seller

35
Q

What is the primary difference between townhouses and condominiums?

A - There is no real difference.
B - Townhouses own the ground upon which they rest in fee simple. Condos own the ground underneath them as a tenancy in common.
C - Townhouses are usually two floors while condominiums are normally one floor
D - Condominiums have homeowner association dues while townhouses typically do not.

A

B - Townhouses own the ground upon which they rest in fee simple. Condos own the ground underneath them as a tenancy in common.

36
Q

If the purchaser of a timeshare is not furnished with a public offering statement, what will happen?

A - There will be no further consequences.
B - The party failing to deliver the statement is liable for any costs the failure causes.
C - The purchaser may void the agreement.
D - The purchaser is entitled to a 2% discount on the agreed purchase price.

A

C - The purchaser may void the agreement.

37
Q

The Statute of Frauds states that what?

A - in order for the transfer of real estate to be enforceable, it has to be in writing with two exceptions.
B - in order for the transfer of real estate to be enforceable, it has to be in writing.
C - It is a violation of the license act to intentional misrepresent the material facts about a property
D - any transfer of real or personal property has to be in writing to be enforceable

A

B - in order for the transfer of real estate to be enforceable, it has to be in writing.

38
Q

What MUST be included in an agent-client disclosure requirement?

A - The amount of commission or fee to be paid to the licensee
B - A description of the other relationships and duties available under relationship disclosure requirement statutes, provided the disclosure indicates the relationship being disclosed
C - The number of transactions the licensee has completed in the region within the previous 12 months
D - The names and addresses of the licensee’s previous 3 employing brokers

A

B - A description of the other relationships and duties available under relationship disclosure requirement statutes, provided the disclosure indicates the relationship being disclosed

39
Q

Who is the recipient of the fees paid for real estate licenses?

A - Fees are charged by the Montana Association of Realtors and paid into the recovery account.
B - Fees are charged by the Department and paid to the Montana Association of Realtors.
C - Fees are charged by the Department and paid to the HUD.
D - Fees are charged by the Department and paid into the state special revenue fund for use by the Board.

A

D - Fees are charged by the Department and paid into the state special revenue fund for use by the Board.

40
Q

Who is responsible for creating the rules that enable the laws governing timeshares to be enforced?

A - The Montana Association of Developers
B - The Montana Legislature
C - The Better Business Bureau
D - The Board

A

D - The Board

41
Q

If a property is built before what year, the tenant must be provided with the pamphlet “Protect Your Family from Lead in Your Home”?

A - 1976
B - 1977
C - 1978
D - 1957

A

C - 1978

42
Q

In addition to real estate classes, the Board of Realty Regulation will consider what other education as potentially equivalent to relevant licensure education requirements?

A - The Board will consider a college degree in business as equivalent to relevant licensure education requirements.
B - The Board shall accept relevant military training, service, or education toward the requirements for licensure
C - The Board will consider an associate’s degree in general education as equivalent to relevant licensure education requirements.
D - The Board will only consider real estate classes certified school as meeting the relevant licensure education requirements.

A

B - The Board shall accept relevant military training, service, or education toward the requirements for licensure

43
Q

Which of the following is TRUE regarding the Montana Board of Realty Regulation?

A - It adopts the rules and regulations to administer to the real estate laws and statutes.
B - It writes the laws and statutes for real estate.
C - It has no power over the rules and regulations for real estate in Montana.
D - Its main function is to settle disputes between real estate licensees.

A

A - It adopts the rules and regulations to administer to the real estate laws and statutes.

44
Q

How long must trust account-related documents be retained?

A - 3 years
B - 5 years
C - 6 years
D - 8 years

A

D - 8 years

45
Q

What will happen to a licensee who engages in unprofessional conduct?

A - Disciplinary action will be taken by the Board who can impose any penalty on the licensee found in Montana license law.
B - The licensee will be fined a statutory penalty of $50.
C - The licensee will forfeit any commission earned while acting in an unprofessional manner and pay an additional $1,000.
D - The licensee’s license will be placed on probation for 12 months.

A

A - Disciplinary action will be taken by the Board who can impose any penalty on the licensee found in Montana license law.

46
Q

Which of the following statements is true regarding a supervising broker?

A - A supervising broker endorsement is issued to any broker.
B - A supervising broker endorsement is issued to any salesperson completing the supervising broker pre-endorsement course.
C - A supervising broker endorsement is issued to any broker completing the supervising broker pre-endorsement course.
D - A supervising broker endorsement is issued to any broker upon having four years’ experience as a broker.

A

C - A supervising broker endorsement is issued to any broker completing the supervising broker pre-endorsement course.

47
Q

What type of legal description is used to define the boundaries of properties located within the State of Montana?

A - the Public Land Survey System (PLSS)
B - Metes and bounds description
C - A special survey
D - the Public Land Survey System (PLSS) comprised of townships, sections, section subdivisions, and special surveys.

A

D - the Public Land Survey System (PLSS) comprised of townships, sections, section subdivisions, and special surveys.

48
Q

Condominiums are considered what type of housing?

A - Shared housing
B - Cooperatives
C - Townhouses
D - Statutory housing

A

D - Statutory housing

49
Q

Supervisory brokers are responsible for the actions of the salespeople they sponsor; which of the following is not one of those areas?

A - Brokers are responsible that their agents practice high ethical standards
B - Brokers are responsible that all monies that come into the brokerage are properly handled
C - Brokers are responsible that all real estate documents are properly prepared and executed
D - Brokers are responsible for training their agents a minimum three hours a week.

A

B - Brokers are responsible that all monies that come into the brokerage are properly handled

50
Q

A section:
Is 1 mile wide and 1 mile deep.
Contains 640 Acres

How many acres are there in the S ½ of the SE ¼ of the SW ¼ of section 24, township 32 north, range 18 east?

A

Contains 640 Acres

How many acres are there in the S ½ of the SE ¼ of the SW ¼ of section 24, township 32 north, range 18 east?

Ignore the text “section 24, township 32 north, range 18 east.” It doesn’t affect the answer.
Multiply all denominators together (the bottom number of the fraction), 2 x 4 x 4 = 32.
Divide 640 by that answer, 640 ÷ 32 = 20 acres.

51
Q

How many SqFt in an acre?

A

43,560 SqFt in an acre

52
Q

1 Square Mile = Acres?

A

640

53
Q

For Rental Properties:
GRM is what?

A

Gross Rent Multiplier

54
Q

Rental Properties: Sales Price = ?

A

Sales Price = Monthly Rental Income x Gross Rental Multiplier GRM

55
Q

Commercial Properties: Sales Price = ?

A

Sales Price = Annual Income x Gross Income Multiplier GIM

56
Q

Commercial Properties:
GIM is what?

A

Gross Income Multiplier

57
Q

Using the terms potential rent, vacancy, other income, operating expenses, and gross operating income, express the equation for net operating income.

A

Potential Gross Income
- Vacancy
+ Other Income
= Gross Operating Income
- Operating Expenses
= Net Operating Income (NOI)

MR Real Estate (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions