Real Estate - AYPO Practice Final Exam 2024 with Complete Solutions!

*a real estate agent walked through a client's house. he noted 4 things: side yard is not maintained, lock on back door doesn't effectively latch, support beams in the basement are discolored and has some cracks, and some of the linoleum tiles in the kitchen are loose. Which of these items should he suggest to be professionally inspected? - ANSWER-the support beams in the basement *if the total cost of the loan is paid off in a set of scheduled payments across the term, the loan is... - ANSWER-fully amortized in order for a deed to be legal, it must: - ANSWER-be recorded with the county clerk *does the real estate settlement procedures act allow the receiving of unearned fees for services not actually preformed? - ANSWER-no what is the purpose of mortgage insurance - ANSWER-to reimburse a lender should a borrower default on a mortgage loan what is the primary purpose of regular reconciliation on clients' trust accounts? - ANSWER-to catch problems when they are small what kind of contract is an option? - ANSWER-a unilateral contract discount points - ANSWER-a fee that reduces the interest rate on a mortgage loan *carol takes out a second mortgage on her house. what should the bank issuing the second mortgage do if they want to give their lien preferential weight over any other liens that may be imposed on carol's property? - ANSWER-perfect the lien from the second mortgage what is the official legal term in Michigan for listing or buyer agency agreement that est. an agency relationship between a real estate broker and a client? - ANSWER-service provision agreement equitable remedy - ANSWER-reformation CC&Rs in real estate stands for: - ANSWER-covenants, conditions, and restrictions *if the demand for a product remains relatively the same, what is the best way to increase the value of that product? - ANSWER-decrease the supply of that product comprehensive long-range plan intended to guide growth and development of a community or region? - ANSWER-a master plan who reviews the form and content of the real estate exam? - ANSWER-both the department of licensing and regulations and the board of real estate brokers and salespersons what type of agency is likely in a power of attorney arrangement? - ANSWER-universal *a property owner is considering "buying" discount points for a $65,000 second mortgage with a 30 year term. This will lower annual interest rates from 10.5% to 9.5%. Is the total cost of the second mortgage greater with the 10.5% annual interest rate or with the 9.5% rate and the added cost of the points? - ANSWER-greater total cost at 10.5% interest ($214,110) *if a real estate professional intentionally fails to disclose a conflict of interest to a party they are representing in a real estate transaction, the real estate professional could be accused of... - ANSWER-committing fraud accor