Rockwell Real Estate Exam MAIN Correct 100%

Which of the following loans would be subject to the Truth In Lending Act? - ANSWERSA loan to a first-time home buyer Art sold his house, which was not encumbered with a mortgage. Closing expenses were $5,264, and he paid a commission of 7% of the selling price. He received a check at closing for $372,316. What did the house sell for? - ANSWERS$406,000 (100%-7%=93%). $337,580/ 0.93= $406,000. Frank gives Stella an option to buy his house. Stella, as the optionee, is obligated to: - ANSWERSPay consideration for the option right A corn field with a depth of 900 ft and a frontage of 484 feet is bisected by an access road, leaving two triangular lots. If the land sells for $2,000 per acre, how much is each lot worth? - ANSWERS$10,000. *Find area of triangular lots and use the triangular formula A=½ B x Height (900ft x 484 ft x 0.5= 217,800 sqft.) Convert the acreage (217,800 sqft / 43,560 sqft per acre= 5 acres) and then multiply by the cost per acre (5 acres x $2,000= $10,000) Which is a list of duties owed to a principal by an agent?Loyalty,confidentiality,reasonable care, accounting. - ANSWERSLoyalty,confidentiality,reasonable care, accounting. Ajax reality lists a property for a seller at a commission rate of 8%.The multiple listing service provides that a listing brokerage will split commissions at a 50-50 rate. Baron Realty, a cooperating Brokerage, finds a buyer for the property, at a price of $300,000. How much will the seller owe Ajax Realty at closing? - ANSWERS$24,000 ($300,000 x 0.8 = $24,000) A buyer enters into a buyer agency agreement with a real estate licensee to negotiate the purchase of a particular FSBO property. The buyer then enters into a purchase and sale agreement, but the property he agreed to buy is subsequently condemned. Which of the following is true? - ANSWERSThe agency is terminated A new subdivision required payment of homeowners association dues. If unpaid, what type of lien do they create? - ANSWERSSpecific lien that encumbers the property A homeowner in a recently developed subdivision plans to build an extra bedroom extending from the back of his house. Nobody in the subdivision has added on to their houses in a similar manner yet. What would the homeowner