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Flashcards in TN Course Exam Questions Deck (96)
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1
Q

Agricultural property management is the only PM specialty where you might be expected to what?

A

manage a staff of specialists

2
Q

The Uniform Residential Landlord and Tenant Act

A

sets standards for improving oral lease agreements

3
Q

The agent owes what duty ONLY to the client?

A

obedience

4
Q

To avoid charges of price fixing, licensees must

A

refrain from talking as if they have discussed fees with licensees from other firms

5
Q

If Tom has monthly income of $3,000 and his wife’s monthly income is $3,500 what is the estimated max loan payment they would qualify for under the FHA guidelines?

A

29% - max
$3,000 + $3,500 = $6,500
$6,500 x 29% = $1,885

6
Q

How can a licensee be at risk when disclosing an agency relationship?

A

if the licensee fails to inform and disclose properly

7
Q

How would a neighborhood transitioning from residential to some other use affect a home’s estimated selling price?

A

it could increase or decrease the selling price, depending on what kind of use the area is moving to

8
Q

Where does someone go to file a complaint that a licensee-member has violated the Code of Ethics?

A

The local REALTOR board or association

9
Q

When a contract is unenforceable, a court will not

A

compel a party to perform their end of the contract

10
Q

When entering into an executive buyer representation agreement, the licensee must advise the buyer in writing that

A

the buyer should contact only the licensee to arrange property viewings

11
Q

Within ___ from the date a broker’s original license was issued, the broker must complete 120 class room hours of real estate education to renew the license

A

3 years

12
Q

A counteroffer is

A

the rejection of an offer and a simultaneous new offer

13
Q

What is not a required disclosure by either seller or agent?

A

earthquake zone

14
Q

what are the 2 ways escrow funds are most often mishandled?

A

commingling and conversion

15
Q

most real estate licensees specialize in what type of property?

A

residential property

16
Q

In TN a real estate licensee may be charged with the unauthorized practice of law for

A

charging a fee for helping a client draw up an option contract

17
Q

When several houses that are equal in seize, quality and appeal are for sale, the valuation principle that says a buyer will not pay more for one than for another is called?

A

substitution

18
Q

wheat type of document may a real estate licensee prepare without being guilty of unauthorized practice of law?

A

Sales agreements

19
Q

what is secondary financing?

A

a loan to cover purchase costs that are not covered by the primary loan

20
Q

Failure to correctly compete forms is a violation by the ____ and not the ____

A

licensee, sponsoring broker

21
Q

When code of ethics violation complaint goes to a Grievance Committee, the committee has the authority to

A

dismiss the complaint

22
Q

It is _____ for a real estate licensee to pay a commission to an unlicensed individual or company

A

unlawful

23
Q

A license is issued on September 1, 2020. What will it expire if not renewed?

A

September 1, 2022

24
Q

When using forms with clients the agent should never

A

charge a fee for helping with a form

25
Q

when calculating a borrower’’s debt ratio, what is not included in calculating a borrower’s debt loan?

A

estimated tax payments

26
Q

which legislation prohibits discrimination in housing based on protect class status in advertising the sale or rental of housing?

A

Civil Right Act of 1968

27
Q

In a transaction using a contract for deed, what does the buyer initially receive?

A

equitable title

28
Q

licensee Lou has found a property he would like to purchase as an investment. What must he do?

A

make a written disclosure of personal interest to the seller

29
Q

Licensees should learn to measure and calculate areas accurately in order to avoid

A

the risk of misrepresentation

30
Q

which HUD doc provides info to builders regarding fair housing compliance?

A

Fair Housing Act Accessibility Guidelines

31
Q

Buyer wants the seller’s drapes and TV includes in the purchase price of the seller’s condo. What should the buyer’s agent do?

A

list the items in the sales contract

32
Q

If an appraisal comes in low what is NOT an option?

A

the buyer can pay for a second appraisal, which the lender would have to accept

33
Q

Securing a loan by pledging property without giving up ownership to the property is called

A

hypothecation

34
Q

To aid in risk reduction programs, TN firms are required to keep written records of all real estate transactions for at least ___ years after closing or termination

A

3

35
Q

What is the difference in the principal broker’s supervisory responsibilities to an employee affiliate broker and an independent contractor affiliate broker?

A

There is no different in the supervisory responsibilities of the broker to any affiliate brokers

36
Q

The legal remedy for a contract default that terminates the contract and returns the valuable consideration to its original order is called

A

rescission

37
Q

What kind of lease is most common for residential properties?

A

Gross lease

38
Q

A property condition disclosure is required when?

A

prior to acceptance of a purchase contract and at or before closing

39
Q

In TN, a PM who performs duties that include negotiating, security deposits, rents, and lease tiers must

A

be licensed

40
Q

what is one reason for low appraisal?

A

an artificially inflated price due to multiple offers

41
Q

To practice ethically, real estate professionals should

A

esclude disparagement of competitors

42
Q

What is NOT a general duty of a PM?

A

performing a property appraisal to determine value and income potential

43
Q

FHA guidelines require the income ratio on a mortgage loan to be

A

no more than 29%

44
Q

What economic principle underlies the value of real property says that a property is at its highest value when it fits into its surroundings?

A

Conformity

45
Q

How much may a seller contribute toward discount points and selling costs on a purchase financed by an FHA loan?

A

6% of the sales price

46
Q

when working as a seller’s agent, a licensee must never disclose

A

anything harmful to the client’s interest

47
Q

What neighborhood factors must be considered when using a CMA?

A

land contour

48
Q

The TN landlord and tenant act allows the landlord to enter the rented premises at

A

any time when acting to prevent damage or destruction; to make repairs or show the property, on giving proper notice

49
Q

Among the primary sources of real estate ethics and standards it

A

state real estate licensing regulations

50
Q

What is not a required disclosure either by the seller or agent?

A

confirmation of property measurements

51
Q

What would be an appropriate risk management response if a seller asks about the religion of a potential buyer?

A

Remind them of the listing agreement they signed and how it discussed that basing a decision on someone’s religion is against anti-discrimination laws? and with that in mind, if the buyer’s religion is really important to you, I can refer you to an expert

52
Q

Broker requires all of their buyers to sign offers with the stipulation that they will use Acme Home Inspection Services. This practice is called?

A

tying arrangement

53
Q

Violators of federal fair housing laws may be punished with?

A

fines and jail

54
Q

Does a contract need to be in writing if the item being sold is $1,000?

A

Yes

55
Q

“farming” is the practice of?

A

prospecting for business in a selected area

56
Q

Under what listing agreement can the owner of a property sell the property without owing the licensee a commission?

A

exclusive agency

57
Q

to avoid a breach of contract due to an unavoidable delay, the best course of action is to?

A

execute an amendment rescheduling the closing date

58
Q

In TN, all ads for real property must

A

be under the firm’s name

59
Q

What is the amount a lender normally requires to be included for taxes and insurance in a borrowers monthly mortgage payment?

A

1/12th of the annual real estate taxes and hazard insurance payment

60
Q

When is a residential sale exempted from the property condition disclosure requirement?

A

transfer is by deed in lieu of foreclosure

61
Q

When a licensee has an agreement to provide services as an agent to more then one party in the same transaction when the interests of the party are adverse, this is called?

A

dual agency

62
Q

what type of lease is not required to be in writing?

A

month to month

63
Q

According to TRID rule, the settlement agent must give the seller

A

closing disclosure

64
Q

MLS is a

A

listing shared with members of an organization who agree to cooperate in return for a commission share

65
Q

Cancellation and discharge of a contract does NOT include?

A

revocation without repercussions

66
Q

according to the level of authority delegated to the agent, the usual real estate agency is?

A

limited agency

67
Q

What does an offeree lose the right to accept an offer?

A

when the offeror revokes the offer

68
Q

Proper disclosure prevents clients from claiming they were

A

misled

69
Q

a TN licensee must use the “Exclusive Right to Sell” form that is required by

A

the licensee’s broker

70
Q

When is the latest an agent may obtain written confirmation of their agency disclosure from a seller who has no agent?

A

before executing a listing agreement or presenting an offer

71
Q

What is the least desirable grade of office property?

A

Class D

72
Q

A Kentucky real estate firm has a web site on a server in TN. The web site states that the firm is a TN real estate firm. Is this allowed under TN law?

A

No, it is a violation of the License Act and Commission Rules

73
Q

What is the best explanation for why ethical decisions are difficult to make?

A

ethical dilemmas are often more a matter of degree than or right vs. wrong

74
Q

The PM must consider the needs and goals of the _____ to run the building effectively

A

tenant as much at the owner

75
Q

In TN, a rental is considered abandonment when?

A

30 days absence plus failure to be up to date on rent

76
Q

NAR guidelines do NOT address

A

issues of courtesy or etiquette

77
Q

Federal Fair Housing law is administered by who?

A

the office of fair housing and equal opportunity

78
Q

strategies for managing risk does NOT fall into what category?

A

protection

79
Q

which legislation forces property owners and managers to allow a disabled resident to keep a service dog when there is a no pets policy?

A

Fair Housing Amendments Act of 1988

80
Q

an affiliate broker’s license should be displayed where?

A

in her broker’s principal place of business

81
Q

in order to have a buyer agency relationship with a buyer, a licensee must obtain what?

A

written agency agreement from the buyer

82
Q

Affiliate broker must not be paid by whom?

A

parties other then the broker

83
Q

A licensee who represents a buyer in the purchase of a property must disclose what?

A

adverse facts about the property to the buyer

84
Q

Why is it sometimes necessary to include a bill of sale with a purchase contract?

A

a Bille of sale confirms that all promised inclusions are in fact part of the conveyance

85
Q

what was the first legislation to prevent discrimination in residential properties financed by FHA and VA loans?

A

executive order 11063 or 1962

86
Q

How can a licensee be at risk when disclosing an agency relationship?

A

if the licensee fails to inform and disclose properly

87
Q

What is a PM’s most important duty?

A

to max ROI for the property owner

88
Q

as a facilitator, what must be disclosed to all parties in the transaction?

A

facilitator status and sources of compensation

89
Q

In a licensee if a facilitator, there is not a signed _____ with the ____

A

agency agreement, seller or buyer

90
Q

A seller’s confidential info may be shared with the managing broker if the licensee is a ____ agent?

A

designated

91
Q

what is liable for errors or inaccuracies on the property condition disclosure if the condition change occurred AFTER the disclosure was delivered to the buyer?

A

no one

92
Q

if a loan I subject to RESPA, when must the lender give the borrower an estimate of closing costs?

A

within 3 days of receiving the loan application

93
Q

What type of agency is one where a broker has an agency relations with a client and an affiliate broker is working as that broker’s agent?

A

subagency

94
Q

What is the best way to respond to questions about “what kind of people” live in a neighborhood?

A

refer the questioner to someone who has the expertise to give a actual answer

95
Q

What is an agent’s best risk reduction move if a seller wants to help a buyer with financing?

A

make sure all agreements between the parties are in writing

96
Q

What is necessary to show reasonable cause for soliciting a referral fee from another licensee?

A

There must be a subagency, referral, or cooperative relationship between the licensees