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Real Estate

Review Quiz - BOOK 2

admin 2019.04.29 21:40 Views : 16644

1 of 50 - At a community meeting, Broker Amanda tells a group of families in an established neighborhood that several Indian families are planning to buy homes in their neighborhood. She tells them that this action could decrease their property values. Which statement is true?
 
Amanda is guilty of blockbusting.
This action is legal but very unprofessional.
Amanda is guilty of redlining.
This action is deliberate misrepresentation.
You answered correctly
2 of 50 - Glenna and Amanda just bought their first home. They will have a number of new expenses as a result of this purchase. Which of these expenses is not associated with owning a home?
Real estate taxes
Interest on the loan
 
Personal property tax
Homeowner’s insurance
You answered correctly
3 of 50 - Agent Pam receives an offer on one of her listings for less than the asking price. The home has been listed for several months; so Pam does a CMA and determines that the offer is more than reasonable in today’s market. However, she believes the sellers will not be willing to accept the offering price. What would be a good approach for Pam to take?
Pam should tell them to reject the offer so that the buyers will counter back with full price.
She should advise them to let the offer expire with no action so the buyers will get nervous.
 
Pam should recommend that they counteroffer with a price halfway between asking and offering price.
She should persuade them to accept the offer.
You answered correctly
4 of 50 - After six months time, manager Tim wants to terminate the lease of one of his month-to-month tenants. What must Tim do?
 
Give the tenant a 30-day notice.
Change the locks on the tenant’s apartment.
Give the tenant a 3-day notice to pay or quit.
 
Give the tenant a 60-day notice.
You answered incorrectly
In California, a month-to-month lease of less than 1 year can be terminated by giving the tenant a notice and 30 days to vacate. A month-to-month lease where the tenant has resided in the dwelling for more than 1 year requires a 60-day notice. The landlord is not permitted to change the locks.
5 of 50 - Jane has been working with some buyers for several weeks. She thinks they are really interested in one particular property, but when she approaches them about it, the buyer says, “The price is too high.” What would be a good response to that comment?
“I think they’re asking a fair price.”
“Well then, just offer less.”
 
“What do you think would be a fair price?”
“The comps say that this price is right on target.”
You answered correctly
6 of 50 - What is one way the Federal Reserve System regulates the money supply?
Printing money.
 
Buying government bonds.
Regulating reserves of institutions with savings accounts only.
 
Purchasing loans from primary lenders.
You answered incorrectly
One way the Fed stabilizes the economy is by engaging in open market operations, or moving cash in and out of commercial banks through buying and selling government bonds. The Fed regulates reserves for institutions with checking accounts, not savings accounts only.
7 of 50 - Sal bought a personal residence for $150,000. He made $150,000 of improvements during the three years he lived in it before he sold it. He sold the home for $750,000 and paid $50,000 in selling expenses, including the broker's commission. On what amount will he pay capital gains tax?
$0
 
$150,000
$200,000
$500,000
You answered correctly
8 of 50 - The listing type that assures a broker that he or she will receive compensation no matter who procures the buyer is what kind of agreement?
Net listing
 
Exclusive-authorization-and-right-to-sell agreement
Open listing
 
Exclusive agency
You answered incorrectly
Net listings are prohibited in California but would give the selling agent compensation for selling the property. Open listings compensate only the selling agent, while exclusive agency listings allow the owner to sell without compensating the listing agent. Exclusive-authorization-and-right-to-sell listings compensate the listing agent regardless of who procures the buyer.
9 of 50 - Broker Tami has a very low advertising budget. Which of these forms of advertising is she most likely to avoid?
Internet
 
Magazine ad
 
Direct e-mail
Newspaper ad
You answered incorrectly
Magazine advertising is costly and most likely out of reach for those with a low advertising budget. Direct email, newspaper ads, and the Internet are all budget friendly methods of advertising.
10 of 50 - The title report on a property shows there is a lien on the property. Who is responsible for removing the lien to clear the title?
Broker
Title company
Buyer
 
Seller
You answered correctly
11 of 50 - Buyer Kirk submits an offer to seller Larry. Later that day, Kirk finds a home he likes better; so he withdraws his offer to Larry. Which is a true statement?
Kirk doesn’t have the right to withdraw the offer so soon.
Larry could sue Kirk.
If Larry verbally accepted the offer, Kirk is bound by it.
 
Kirk’s offer to Larry is legally cancelled.
You answered correctly
12 of 50 - Tim thinks his buyers are ready to make an offer. He asks, “Which one of the children gets the basement bedroom with the private entrance?” What kind of closing technique is Tim using?
Bonus
Alternative
 
Ownership
Standing-room-only
You answered correctly
13 of 50 - Fair Housing laws are designed to:
Give housing choices to the widest range of people.
Restrict the housing market.
 
Prohibit discrimination.
Ensure fair real estate negotiations.
You answered correctly
14 of 50 - Mortgage lenders are required to disclose financing costs and annual percentage rate to the borrower under which law or regulation?
Equal Credit Opportunity Act
 
Truth in Lending
Real Estate Settlement and Procedures Act
Fair Housing laws
You answered correctly
15 of 50 - Tim and Sue have obtained a buydown loan on their newly built home. Which of the following statements is not true?
 
They will have to make a very high down payment.
Their interest rate will rise after the first few years.
The builder paid a lump sum amount at closing to reduce the interest rate for a few years.
The lender assumes Tim and Sue’s income will rise over the first few years of the loan.
You answered correctly
16 of 50 - Which of these lenders would be the least likely to lend money for an investor to purchase an apartment building?
Savings bank
Life insurance company
 
Syndicate
 
All of the above
You answered incorrectly
Commercial banks lend money on a short-term basis and do not like apartment projects because they tie up funds for too long. Savings banks have recently started loaning for some apartments, and life insurance companies like large projects such as shopping malls and apartment complexes.
17 of 50 - Jake and Janet are required to pay 4 points on the $80,000 loan they are getting. What will they have to pay the lender?
$800
$1,600
$2,400
 
$3,200
You answered correctly
18 of 50 - Kathy is a personal assistant at Action Realty. She doesn’t need a license to perform many activities at the firm, but which of the following would require her to have a license?
Forwarding calls from the public to one of the salespersons in the office.
 
Giving information about a listing to prospective buyers.
Maintaining the office filing system.
Preparing flyers and promotional materials for the broker’s approval.
You answered correctly
19 of 50 - Which one of these statements would not be considered a measurable goal?
I will make two new contacts every day this week.
 
I will practice my listing presentations.
I will get three new listings this month.
I will complete a property management seminar within the next year.
You answered correctly
20 of 50 - Greg grew up in and lives in a rural area. He’s very comfortable selling that type of property and knows he can work well with clients in that area. What property type will be his specialty?
Special-purpose
 
Agricultural
Commercial
Recreational
You answered correctly
21 of 50 - Seller Kim tells her agent Greg that she would be willing to accept $185,000 on her $205,000 listed home. There are no offers on the property during the 6-month listing period and the listing expires. Several weeks later when showing another home to a buyer, Greg mentions that Kim would have accepted less for her home. Which is true?
Greg is violating the duties he owes to his new buyer.
Greg has put himself in a potential dual agency situation.
 
Greg has violated the duty of confidentiality to Kim.
Greg has no fiduciary responsibilities to Kim once the listing expired.
You answered correctly
22 of 50 - There has been very little interest in the Bowers’ home this past week. What should agent Phil do?
Wait until next week to send an activity report, hoping things will pick up.
Suggest to the sellers that their listing price is too high.
 
Make up some statistics to share with the Bowers.
 
Send the weekly report as usual, emphasizing what your upcoming plans are for the week.
You answered incorrectly
Communication with a client is critical in an agency relationship, so even though there is little activity on a listing at any time, the agent should communicate with the client and update him or her in the weekly report. Discussing upcoming plans for the following week are important to let the client know the agent is actively marketing the property.
23 of 50 - Which of the following AIDA characteristics is the most critical in the ad?
 
Capturing attention
Arousing interest
Creating desire
Prompting action
You answered correctly
24 of 50 - Alice is an employee of Mid-State Realty Services. She would likely be required to do which of the following?
List properties in her own name.
 
Attend weekly staff meetings at the office.
Accept commissions from referral agents.
Pay for worker’s compensation.
You answered correctly
25 of 50 - Prospecting ends:
 
At the time of a sale
Two weeks after closing
When you have 200 names in your contact database
 
Never
You answered incorrectly
An agent should never stop prospecting for new clients. Prospecting is critical to the agent's success and is an ongoing task.
26 of 50 - Agent Will has had a listing with the Bryants for 6 weeks. They called Will’s office and told the secretary they are upset and need to speak with Will. Which of these actions might have caused their upset?
Will’s weekly report indicates two showings and five inquiries for the week.
Will placed an ad in the most recent Home Buyer’s Guide.
 
The Bryants have not received any feedback from any showings in the past month.
Will conducted an agent open house last week that was attended by 25 agents.
You answered correctly
27 of 50 - The manager of a large hotel refuses to rent a room to a blind person with a guide dog. What California Fair Housing law has the manager violated?
 
Unruh Civil Rights Act
Rumford Fair Housing Act
Holden Act
California Civil Rights Act
You answered correctly
28 of 50 - Residential property includes all of the following EXCEPT which?
Apartment
Condominium
 
Motel
Vacation Home
You answered correctly
29 of 50 - What is the primary role of Fannie Mae?
 
To purchase conventional, FHA and VA loans
To guarantee all FHA and VA loans
To originate FHA and VA loans
To insure conventional, FHA and VA loans
You answered correctly
30 of 50 - What is the most common reason that owners try to sell their homes themselves?
To hand pick the buyer
To have a quick sale
To control the flow of prospects
 
To save on commission
You answered correctly
31 of 50 - What was the important ruling in Jones v. Mayer?
Sex became a protected class.
The definition of race was expanded to include ancestry.
The definition of handicap was expanded to include use of guide or support animals for deaf and blind individuals.
 
Discrimination on the basis of race is strictly prohibited, meaning no exceptions whatsoever.
You answered correctly
32 of 50 - When doing research to recommend a reasonable listing price for a home, the most critical part of the research deals with analyzing:
Asking prices for current homes
Listing prices of homes that sold
Listing prices of homes that expired unsold
 
Selling prices of recently sold homes
You answered correctly
33 of 50 - Which of the following would not qualify as a 1031 exchange?
An apartment building for a vacant lot
 
A rental condominium for a recreational vehicle
A farm for a storefront
A warehouse for a rental home
You answered correctly
34 of 50 - What is the Federal Housing Administrations primary role in the mortgage market?
 
To insure loans made by approved lenders
To guarantee loans made by lenders
To lend money directly to borrowers
To sell loans to other secondary mortgage marketers
You answered correctly
35 of 50 - Once signed, escrow instructions can be changed only by:
The escrow agent
The broker
Amending the purchase agreement
 
Mutual consent of both parties
You answered correctly
36 of 50 - Agent John just listed a home in a mid-range priced neighborhood. Which of these ad headlines would probably be the least effective for this home?
Large Back Yard
Three Bedrooms
 
$125,000
 
Needs Paint
You answered incorrectly
Buyers who are looking for mid-range priced homes are typically not looking for fixer-uppers, so advertising that the home needs paint takes away from the value of the home in the eyes of the buyer and will turn away many potential buyers.
37 of 50 - Seller Patsy wants to net $150,000 from the sale of her home. She tells Broker Al that he can list the property for whatever price he wants and anything he gets above the $150,000 he can keep as his commission. What is this agreement called?
 
Exclusive agency
Open listing
Exclusive-authorization-and-right-to-sell agreement
 
Net listing
You answered incorrectly
When a seller has a minimum selling price and allows the agent to sell the property for any price over that minimum and keep the difference, it is a net listing, one that is not recognized in California and is illegal in many states.
38 of 50 - What is one of the major objectives of professional property management?
 
Maximize the return to the property management firm.
 
Minimize expenses while maximizing profits for the owner.
Help control area rent schedules.
Maintain 100 percent occupancy.
You answered incorrectly
The main objective of property management is to maximize profits for the property owner, and minimizing expenses adds to the bottom line and to the profits.
39 of 50 - Which of the following statements best describes what happens in a mortgage loan transaction?
 
The lender gives a mortgage to the borrower and gets funds in exchange.
 
The borrower gives the lender a note and a mortgage in exchange for the funds.
The lender gives the borrower a mortgage and funds.
The borrower gets a note in exchange for a mortgage.
You answered incorrectly
In a mortgage loan transaction, the borrower gives the lender a promise called a note and an agreement called a mortgage to repay the loan, and the lender loans the borrower the funds to purchase a property.
40 of 50 - When doing a competitive market analysis, the recently sold properties you include should have sold within what timeframe?
The past month
 
Past three to six months
Past seven months
Last six to nine months
You answered correctly
41 of 50 - Eric is acting as a disclosed dual agent in a transaction. Which statement is true?
 
Eric can require that both the buyer and seller share equally in his commission.
He must withdraw his representation of one of the parties.
 
Eric may not represent the seller’s interests to the detriment of the buyer.
Eric’s broker should appoint Eric as the designated agent in this transaction.
You answered incorrectly
First, all dual agencies must be disclosed to be legal. In a dual agency relationship, the agent has the duty to represent both parties' interests equally. Doing otherwise is illegal and unethical.
42 of 50 - Which of the following is a credit to the seller on the settlement statement?
Unpaid items due from seller
 
Sales price
 
Loan balance
Document preparation fees
You answered incorrectly
The seller is responsible for paying loan balances on the property, document preparation fees, and any other unpaid items, all of which show as debts to the seller on the settlement statement. Because the sales price is money going to the seller, it is shown on the settlement statement as a credit to the seller.
43 of 50 - Prospects Mike and Marge arrive with agent Elaine at a showing. Elaine parks across the street from the home and Mike is disappointed by what he sees. He’s no longer interested in seeing the inside and Marge agrees. What should Elaine do?
Tell Mike that the sellers will be upset if they cancel the appointment.
Enumerate the home's special features and hope they change their minds.
Tell them that this home is an exceptional buy and encourage them to look anyway.
 
Call the sellers immediately and let them know you won't be coming by.
You answered correctly
44 of 50 - Greg and Wanda Sandler purchased their home 35 years ago and it was paid off at the end of thirty years. In order to supplement their fixed income, the Sandlers receive monthly checks from their bank. Most likely, what did they get?
Home equity loan
Amortized loan
Senior citizen loan
 
Reverse annuity mortgage
You answered correctly
45 of 50 - Which of the following newspaper information is not helpful in developing a Prospecting Plan?
Birth and Death Announcements
Code Violations and Tax Delinquencies
Promotions and Job Transfers
 
Editorials and Bid Proposals
You answered correctly
46 of 50 - Veteran Bill has applied and been approved for a non-VA-guaranteed CalVet loan. Which of the following statements is not true?
Bill will pay a 3% down payment.
 
Bill is purchasing a 6-family apartment building.
If Bill pays off the loan early, there will be no prepayment penalty.
There is a loan protection plan included with the loan.
You answered correctly
47 of 50 - Which of the following Internet pages might not be of particular interest to buyers?
Mortgage loan calculator
Getting pre-qualified
Your current listings
 
Curb appeal information
You answered correctly
48 of 50 - Alex makes an offer to purchase one of Bill’s listings. Bill cannot contact the seller. In the meantime, Bill gets another offer on the property from another buyer at a higher price. What should Bill do?
Present the higher-priced offer first.
Decide which offer is best and present that one.
Present Alex’s offer first since it came in first.
 
Present both offers to the seller.
You answered correctly
49 of 50 - Paul is filling out the Natural Hazard Disclosure Statement. Which of the following conditions is Paul not required to report on this form?
 
Lead-based paint was used in the home.
The property is in an area that could flood.
The home sits on an earthquake fault zone.
The property is in a state fire responsibility area.
You answered correctly
50 of 50 - Which of the following economic characteristics is true?
Land is plentiful.
Properties are very liquid and can move quickly.
Real estate can respond quickly to changes in the market.
 
Supply cannot be moved to a high demand area.
You answered correctly
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