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Real Estate Final Exam (157 Questions and Answers 2024)
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Real Estate Final Exam (157 Questionsand Answers 2024)
A real estate licensee has a buyer agency agreement. What is the seller in
this situation? - -A customer.
-An optionor and an optionee make a contract for an option on a commercial
piece of property. If the optionee decides to exercise his option, when must
he perform? - -He must exercise his option under the terms of the option
contract.
-When can a landlord evict a disabled blind or disabled tenant from the
premises? - -If the tenant has loud parties, makes too much noise, and is
constantly disturbing other tenants
-4. Broker Carr, with ABC Real Estate Company, listed the property with a
seller. Broker Smith, with XYZ Real Estate Company, called Broker Carr, and
disclosed that he was a Buyer Agent. Broker Smith wrote a contract with a
buyer for the sale of the property. What, if any, is the relationship between
the buyer's broker, the seller and the listing broker? - -There is not a
relationship between the parties. Broker Carr represents the Seller and
Broker Smith represents the Buyer.
-A buyer bought a property without telling the seller of his intended purpose
for the property. The contract contains no contingency clauses and it is a
properly executed contract. After the closing, the buyer is unable to obtain
the zoning he needs for his commercial project. What is the contract at this
stage? - -Enforceable
-6. The seller and the buyer finally agreed to a purchase price of $203,500
with the closing to occur on June 15. The taxes for the year in the amount of
$2,500 have not been paid by the seller. (Taxes are paid in arrears). How
much would the tax proration amount to, and how would it appear on a full
settlement statement? Base your answer on a 365 day year, and the buyer is
responsible for the day of settlement. - -$1,130.14 debit the seller and credit
the buyer
-A seller listed his home for six months on February 26. On April 29, a buyer
made an offer on the property. The listing broker presented the offer to the
seller on April 30. The seller accepted the offer on May 1, with the closing to
occur on June 15. Assuming the closing took place on June 15, when did the
listing expire? - -6/15
, -The sellers listed their property for six months on February 26 for $522,500.
They agreed to pay the listing broker a 7% commission at closing on the
agreed upon sale price. A buyer made an offer on the property on March 29
for $510,000. The seller countered the offer on April 1 at $517,500, and the
buyer accepted the counter offer with the closing to occur on June 15. How
much commission did the seller owe the listing broker, and how would it
appear on the settlement statement? - -$36,225. Debit the seller.
-The seller and the buyer agreed to a purchase price of $270,000 with the
closing to occur on June 15. The seller's loan balance after the June 1
payment was $170,000. with an interest rate of 6%.The monthly payment
was $1,800 principal and interest. What was the loan balance the day of
closing, and how much interest did the seller owe the bank? - -Loan balance
$170,000; interest due $425
-The buyer and seller agreed to a purchase price of $310,500. The buyer
received an 80% loan. How much was the buyer's loan and how did it appear
on the settlement statement? - -$ 248,400. Credit the buyer only.
-A home improvement company was negotiating with a homeowner to add
on two rooms to a home. The company agreed to take a second mortgage as
long as the homeowner also included the rest of the property in the loan. The
company and the homeowner agreed to a price and the company provided
the necessary disclosure form on Monday and the homeowner signed the
agreement at noon the following day. Assuming that the week had five
business days, until what time could the homeowner rescind the loan? - -
Friday, midnight (Three business day period)
-The seller under a land contract is called - -The vendor
-On an 8% straight term loan of $6,071, the borrower paid total interest of
$1,700. How long did he have the loan? - -42 months
-Are recording fees and title insurance premiums part of the Truth in
Lending statement? - -No, These are considered legal, not financing fees and
therefore are not part of the Truth in Lending statement.
-A mortgage broker - -arranges loans between borrowers and investors.
-The Smiths' purchased a residence for $750,000. They made a down
payment of $150,000 and agreed to assume the seller's existing mortgage,
which had a current balance of $230,000. The Smiths' financed the
remaining $370,000 of the purchase price by executing a second mortgage
whereby the seller became a mortgagee. This type of loan is called a - -part
purchase mortgage
, -On a $500,000 loan the borrower is required to pay two points. How much
does the borrower have to pay the lender? - -$510,000.00
-The discount points charged by a lender on a federal VA or FHA loan are a
percentage of the - -loan amount.
-An increase in the availability of money would lead to which effect? - -
Interest rates would go down.
-When the amortized payment of a mortgage remains constant over the
period of the loan but leaves an outstanding balance to be paid at the end,
this payment is called - -a balloon payment.
-In an installment land contract, what type of title did the seller retain? - -
Legal
-Which of the following is true of a second mortgage? - -It is usually issued
at a higher rate of interest.
-Usury MOST nearly means - -illegal interest.
-A borrower bought a $174,000 house with no down payment. The loan was
probably - -a VA loan.
-A house sold for $420,000. The buyer made a 20% down payment. Monthly
interest on the loan was $1,400. What was the interest rate on the loan? - -•
5%
-Which of the following describes a mortgage that requires principal and
interest payments at regular intervals and is called the liquidation of debt by
periodic installment until the debt is satisfied? - -Amortized loan
-Which is the most common form of mortgage? - -Amortized loan
-Under RESPA, a copy of Real Estate Settlement Costs And You must be
given - -at the time of loan application, or within 3 days of application.
-Which of the following is a closing expense paid by the seller? - -The
broker's commission
-An impound or reserve account MOST benefits whom? - -The lender
-What are impound or reserve accounts also known as? - -Escrow accounts
-The HUD-1 form is - -a statement of actual charges and adjustments.
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