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Colibri Practice Exam Test With 100% Correct And Verified Answers
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Colibri Practice Exam Test With 100% Correct And Verified Answers
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Colibri Practice Exam Test With 100%Correct And Verified Answers
Taxes and insurance are often prepaid at closing to establish the
escrow account. On which page of the Closing Disclosure form will
the buyer see an accounting of the escrow account set up?
Page two, under other costs
On page two of the form, other costs are itemized for buyers and
sellers. Taxes, prepaids, and initial escrow payment at closing -
usually two months' worth, are paid by the buyer and shown on
page 2.
How is the sales price reflected on the closing form for the buyer
and the seller?
The sales price is a debit to the buyer and a credit to the seller
The seller receives the sales price less adjustment at closings or
debit. The buyer pays the sales price less adjustment for deposit and
loans.
Which clause in a deed defines the ownership taken by the grantee
and clarifies the purpose of the deed?
The Habendum Clause
Also known as the "to have and to hold" the Habendum Clause.
This is the clause that describes the rights being transferred.
Exceptions and reservations are included in this clause.
When a cap rate used with income capitalization is high, the
following relationship with sales price exists:
Vendarsol
,risk and cap rate are higher, the sales price is usually lower.
Cap rate is likened to the risk factor when purchasing an investment
property - a high cap rate indicates high risk, and often the sales
price is lower.
Property is located next to a busy freeway; semi-trucks use the
freeway all night long. After two years on the market, the seller
reduced his price by 25%. Which loss of value has occurred?
Economic or external obsolescence
Economic or external obsolescence is a loss of value outside of the
perimeter boundary of the property, beyond the owner's control,
and almost always incurable.
A homestead exemption in Florida is available to those who qualify
and file documents making the Florida home a primary residence.
The base homestead exemption is:
$25,000
The base homestead exemption is $25,000. There is an additional
$25,000 available for qualified property owners; however, the
additional $25,000 does NOT apply to school taxes.
A closing is March 5 for a rental property with an annual tax bill of
$2800. Calculate and show the debit and credits for the tax
proration between the buyer and seller using the 365-day method,
the day of closing belongs to the buyer.
debit seller $483.29; credit buyer $483.29
The purpose of proration is to assign the amount owed to the
responsible party. The taxes will be paid by the buyer at the end of
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,the year. The buyer needs money from the seller for the days that
the seller owned. $2800/365 = $7.67 per day. Jan = 31 days, Feb. = 28
days and March = 4 day total 63 X $7.67 = $483.21 that the seller
owes for the time he owned. NOTE: The amount taken from the
seller is given to the buyer - it is the same amount. Use 3 decimal
places and don't clear the calculator between steps.
John is a sales associate who has complaints
against him for making false statements about the
property and for giving advice about the purchase
contract. This is the third time these same
violations have been investigated. If John is found
guilty of violating these two practices at the formal
hearing, the maximum fine John can face is:
10,000
For second and subsequent violations, $2500 to $5000 fine and
suspension for up to six years or revocation. The fine is $5000 maximum
for each offense.
A deed and a real estate purchase agreement would not be considered
valid without:
an adequate legal description.
The property must be accurately described in any purchase agreement
and deed, so there is no question about what is being transferred. In a
deed, the legal description is in the premises clause.
A mortgage is a legal contract with terms that benefit both the lender and
the borrower. Which clause is a benefit to the borrower and NOT to the
lender?
The Defeasance clause
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, If the borrower defaults, the lender can call the balance due; the
maintenance clause required the borrower to keep the property in good
condition, and the alienation clause prevents the sale to another borrower.
The defeasance clause requires the lender to record a document when the
loan is paid - killing the lien.
When a homeowner is delinquent on property taxes, the first step taken by
the government in correcting the late payment is:
the delinquent taxpayer names are published in the local paper.
Property taxes are delinquent on April first of the year following non-
payment. A list of delinquent payers is published in a local county wide-
newspaper.
Broker Joe has a listing for a distressed seller. He finds a buyer for the
property who enters into a contract for purchase. Ten-days prior to
closing, the seller calls Joe to share that he has had to file for bankruptcy.
This filing may:
terminate the contract.
Bankruptcy is a court action - or operation of law that has the power to
terminate existing contracts.
The two voluntary forms of title transfer are:
by will and by deed.
Voluntary alienation is a transfer willingly. There are only two ways: during
the lifetime of the grantor, a deed is used; and if the owner is deceased, a
will is used.
A licensee has been notified that there is a formal complaint against him
as a result of findings by the probable cause panel. How long does the
licensee have to answer the complaint?
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