Real Estate Final Exam (150 Questions) #1 with
Correct Answers.
A real estate licensee has a buyer agency agreement. What is the seller in this situation?
- Correct Answer 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
Answer 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 Answer 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 Answer 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 Answer 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 Answer $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 Answer 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 Answer $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 Answer 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 Answer $ 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 Answer Friday, midnight (Three business day period)
The seller under a land contract is called - Correct Answer 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 Answer 42 months
Are recording fees and title insurance premiums part of the Truth in Lending statement? -
Correct Answer No, These are considered legal, not financing fees and therefore are not
part of the Truth in Lending statement.
A mortgage broker - Correct Answer 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 Answer 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 Answer $510,000.00
The discount points charged by a lender on a federal VA or FHA loan are a percentage of
the - Correct Answer loan amount.
An increase in the availability of money would lead to which effect? - Correct Answer
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
Answer a balloon payment.
In an installment land contract, what type of title did the seller retain? - Correct Answer
Legal
Which of the following is true of a second mortgage? - Correct Answer It is usually issued
at a higher rate of interest.
Usury MOST nearly means - Correct Answer illegal interest.
A borrower bought a $174,000 house with no down payment. The loan was probably -
Correct Answer 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? - Correct Answer • 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? - Correct Answer Amortized loan
Which is the most common form of mortgage? - Correct Answer Amortized loan
Under RESPA, a copy of Real Estate Settlement Costs And You must be given - Correct
Answer at the time of loan application, or within 3 days of application.
