National Real Estate Exam Prep With Correct Answers

National Real Estate Exam Prep With Correct Answers Unilateral Contract - answerContract containing ONE promise given in exchange for completing an act. NO obligation to act. Bilateral Contract - answerContract containing TWO promises. Example: A listing agreement is a bilateral contract Client/Principal - answerA person who has entered into an agency relationship w/ a licensee & with whom there is a written contract Customer - answerAny 3rd party w/ whom a licensee works In-Company Transaction - answerTransaction in which the buyer and seller are both represented by the same brokerage. Management-Level License - answerA licensee who is employed by or affiliated w/ a brokerage who has supervisory responsibility over other licensees. Statute of Frauds requires the following: - answer1) Certain contracts be in writing to be enforceable, 2) All real estate contracts for the sale of LAND & ALL LEASES for more than one year, options for more than 6 months, must be in writing & signed by all parties. Novation - answerSubstituting a new obligation for an old one. Also, a transfer of rights and/or duties under contract. If the original party to an agreement is replaced due to novation, are they liable? - answerNo Mailbox Rule - answerAcceptance that becomes effective as soon as it is sent in the mail, unless the contract specified a certain means for delivery. Grantor is the - answerOwner Grantee is the - answerBuyer Optionor is the - answerSeller Optionee is the - answerBuyer Lessor is the - answerLandlord Lessee is the - answerTenant Vendor is the - answerSeller Vendee is the - answerBuyer Mortgagor is the - answerBuyer Mortgagee is the - answerLender Trustor is the - answerBuyer Trustee is the - answer3rd Party to the transaction Regulation Z dictates - answerDisclosure Requirements in Credit Transactions, including the disclosure of the Annual Percentage Rate (APR) Regulation Z applies to: - answerALL REAL ESTATE credit transactions except for commercial loans. For non-real estate transactions, it covers up to $25,000. The Cooling Off Period is a condition of: - answerRegulation Z. It gives the customer the right to rescind the transaction for up to 3 business days following the transaction for liens placed on a principal residence. RESPA stands for - answerReal Estate Settlement Procedures Act RESPA requirements include: - answer1) Lenders must give borrowers a good faith estimate of closing costs. 2) Lenders must give borrowers a HUD booklet describing closing costs, settlement procedures & borrowers rights. 3) Closing agent must prepare a HUD stmt detailing how much was paid to what companies for what services 4) Borrower must be given right to inspect HUD stmt 1 day before close. 5) Lenders & other parties must give full disclosure of all business relationships. 6) Lender must disclose to borrower if the loan is likely to be sold to another investor. RESPA prohibits: - answer1) Kickbacks & fees for services not performed in connection w/ the closing 2) It limits the amount of escrow reserves a lender