CE Shop Final Exam Study Questions
And Correct Answers
The Housing and Community Development Act of 1974 added which protected class to federal
fair housing law? - answer✔✔Sex
When is a cease and desist order effective? - answer✔✔Immediately upon issuance
What's another name for an escrow account? - answer✔✔trust account
Which act was the first to prohibit any exceptions for discrimination based on race or color? -
answer✔✔Civil Rights Act of 1866
What's the best definition of real property? - answer✔✔Real estate, plus all of the interests,
benefits, and rights included in ownership
What is considered special land types? - answer✔✔
Who must approve a short sale? - answer✔✔the seller and the sellers lender
The two real estate firms in one small town, Vineyard Realty and Homestead Homes, agree to
charge the same commission rate to avoid the possibility of clients selecting a firm based simply
on price. What specific federal legislation prohibits this - answer✔✔The Sherman Anitrust Act
of 1890
Alice owned a double lot on the waterfront. She sold the lot to Ronesha and included a deed
restriction prohibiting construction of any building taller than one story. Ronesha wants a three-
story house. What should she do? - answer✔✔Conform to the deed restriction
What is the overarching theme addressed by statutory duties in most states? -
answer✔✔Licensees may not take ay action that might be detrimental to the client's legal interest
What's one of the most fundamental of all fiduciary duties, and is the one that underlies all other
duties? - answer✔✔Loyalty
Whose role is it to develop the comprehensive master plan? - answer✔✔Planning board
members
Which economic principle states that the value of property today is impacted by the current value
of the total expected future benefits? - answer✔✔Anticipation
You've just signed a listing with a new seller client. What's true about electronic delivery of
written notice or contract forms to your seller? - answer✔✔It's allowed if the seller consented to
it in the listing contract
In what way is a townhome similar to a condominium? - answer✔✔They both typically have
HOA dues
What does a balloon payment represent at the end of a loan term? - answer✔✔It means that
some principal remains at the end of the loan term
In states where full disclosure isn't required, whose responsibility is it to disclose any items
required by law and respond honestly to any questions about the property's condition? -
answer✔✔Seller
What factors does the underwriter consider in reviewing a mortgage loan application? -
answer✔✔Credit, capacity, and collateral
Your seller clients have received an offer, and the buyer has included a pre-approval letter. Your
clients are a little confused and think a pre-qualification letter is necessary. What's true regarding
pre-approval and pre-qualification? - answer✔✔A pre- approved letter comes with lender
verification of buyer- provided data and provides more assurance to the seller
What is a defeasance clause? - answer✔✔The clause that states that when the debt is paid, the
lien must be removed.
When appraisers look past how a property is being used to determine a more optimal function,
what are they determining? - answer✔✔Highest and best use
What is true about contingencies? - answer✔✔The inclusion of numerous contingencies makes it
less likely that the buyer's offer will be accepted
The UETA makes it legal and binding for contracts to be ______. - answer✔✔signed
electronically
Why is it important for a buyer to know if any easements or encroachments exist on a property? -
answer✔✔Both easements and encroachments affect the property's lot size, enjoyment, and use
which can affect a property's value
Quad City National Bank has several REO properties on its books. Why does the bank own these
properties? - answer✔✔The properties went through the foreclosure process and didn't sell at
auction
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