unit 2 The CE SHOP real estate exams Questions & Answers(RAATED A)
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Module
CE Shop
Institution
CE Shop
Which one of the following tasks must licensees perform for seller clients?
-Dictate the listing price of the property.
-Drive the sellers around to show them other properties that are for sale in their neighborhood.
-Ensure that the buyer's earnest money is deposited.
-Show the sellers how the...
which one of the following tasks must licensees pe
when using the farming approach affinity is a key
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unit 2 The CE SHOP
real estate exams
Questions &
Answers(RAATED A)
Which one of the following tasks must licensees perform for seller clients?
-Dictate the listing price of the property.
-Drive the sellers around to show them other properties that are for sale in their neighborhood.
-Ensure that the buyer's earnest money is deposited.
-Show the sellers how they can market their property. - ANSWER Ensure that the buyer's earnest money
is deposited.
**A licensee must ensure the collection of the earnest money deposit from the buyer. Earnest money
may be used as liquidated damages by the seller in the event of buyer default, so it's in the seller's best
interest to ensure it's been deposited.
When using the farming approach, affinity is a key factor when identifying a neighborhood. Which
statement best describes affinity?
-An area that is not currently farmed by another licensee
-An area that the licensee likes
-An area with a fair amount of listings ‒ not too many, not too few
-An area with a variety or home styles, sizes, features, price points, amenities, buyers, etc. - ANSWER An
area that the licensee likes
,**Affinity is important when choosing a neighborhood. A licensee should genuinely like the area where
she intends to work.
Why should you know when the seller can vacate the property?
-If a buyer wants to close before the seller can vacate, the seller may need to rent it back from the buyer.
-You'll need to know when you can have the property staged.
-You'll want the house empty for showings.
-You'll want to schedule the closing during the seller's occupancy. - ANSWER If a buyer wants to close
before the seller can vacate, the seller may need to rent it back from the buyer.
**The timing of vacating an occupied property is important when marketing to buyers who may want to
move in before the seller's ready to move out.
Continue to Unit 2: Listing Agreements and Disclosures in South Carolina
Return to Unit 1: Basics of Working with Sellers
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Why might some agents work for buyers without ever having met them?
-It's the most effective use of their time.
-They believe they'll be able to get the buyer to commit to an agency agreement later.
-They don't particularly like people.
-They're afraid to turn down any business. - ANSWER They're afraid to turn down any business.
**Some agents are willing to work for buyers without an agency agreement and without ensuring buyer
loyalty. This can be a waste of time.
Who does the agent assisting the buyer in a transaction represent if there's no buyer agency agreement?
-No one
-The buyer in a sub-agency capacity
-The customer
-The seller - ANSWER The seller
**Without a buyer agency agreement in place, the agent assisting the buyer actually represents and
owes loyalty to the seller.
, ________ have a fixed income, but they may have large down payments from selling prior homes.
Accessible properties with little to no maintenance tend to be attractive to these buyers.
-First-time buyers
-Retirees
-Trade-down buyers
-Trade-up buyers - ANSWER Retirees
**Retirees are similar to trade-down buyers, but there are some key differences. Little to no
maintenance and accessibility are key factors for these buyers, who may have fixed incomes, but also
have larger down payments from selling their previous homes.
From a real estate licensee's standpoint, what's the purpose of qualifying buyers before working with
them?
-To determine their financial wherewithal
-To determine their readiness to purchase and make sure they're not already working with another agent
-To learn if you have things in common with them
-To pre-qualify them for a loan - ANSWER To determine their readiness to purchase and make sure
they're not already working with another agent
**The purpose of qualifying buyers is to determine their readiness to work with you, and their readiness
to purchase. It's also important to establish that they're not already exclusively represented by another
agent.
**When notice is required in reference to a sales transaction, it can be provided by brokers by electronic
or hard copy means, and will be effective when delivered.
Danny is buying Rudy's South Carolina property. A special assessment will apply after closing. Who's
responsible for paying this?
-Danny
-Danny and Rudy
-Rudy
-The closing attorney or lender - ANSWER Danny
, **The sellers are responsible for any special assessments applied before closing, and the buyers are
responsible for any that are applied after closing.
South Carolina real estate broker James is explaining the Broker Disclaimer portion of the sales contract
to his buyers. He says, "____________."
-As a broker, I am responsible for title and zoning, but not property condition
-As a broker, I give no warranty about zoning or property condition
-As a broker, I warranty property condition, but not zoning
-Brokers disclaim all responsibility for the transaction - ANSWER As a broker, I give no warranty about
zoning or property condition
In a South Carolina sales transaction, what signifies "notice"?
-Both parties notifying the other of an event or decision
-Both parties' signatures
-Both parties' signatures and dates
-One party notifying the other party of an event or decision - ANSWER One party notifying the other
party of an event or decision
**Notice is one party notifying the other party of some event or decision regarding the sales transaction.
In a sales transaction, what provides proof that the lender will actually fund the loan?
-Appraisal
-Final loan approval
-Preapproval
-Prequalification - ANSWER Final loan approval
**The final loan approval occurs when funding is imminent. Funding usually occurs within 24 to 48 hours
after approval.
Arnie made an offer on a home on April 1. The seller received it on April 2 and countered the offer on
April 3. Arnie countered on April 4, and the seller agreed to Arnie's counter on April 5. Closing is
scheduled for May 30. What's the effective date of a contract?
-April 1
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