Real Estate Final Exam (150 Questions) ANSWERS 100%
CORRECT!!
A real estate licensee has a buyer agency agreement. What is the seller in this situation?
correct answers 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? correct
answers 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? correct
answers 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? correct
answers 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? correct answers 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. correct answers $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? correct answers 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? correct answers $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? correct
answers 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?
correct answers $ 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? correct answers
Friday, midnight (Three business day period)
The seller under a land contract is called correct answers 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? correct answers 42 months
Are recording fees and title insurance premiums part of the Truth in Lending statement?
correct answers No, These are considered legal, not financing fees and therefore are not part
of the Truth in Lending statement.
A mortgage broker correct answers 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 correct
answers 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? correct answers $510,000.00
The discount points charged by a lender on a federal VA or FHA loan are a percentage of the
correct answers loan amount.
An increase in the availability of money would lead to which effect? correct answers 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 correct answers a
balloon payment.
In an installment land contract, what type of title did the seller retain? correct answers Legal
Which of the following is true of a second mortgage? correct answers It is usually issued at a
higher rate of interest.
