Exam (elaborations)
TREC NATIONAL EXAM QUESTIONS & ANSWERS
- Course
- Institution
TREC NATIONAL EXAM QUESTIONS & ANSWERS
[Show more]
Content preview
TREC NATIONAL EXAM QUESTIONS & ANSWERSA lead paint disclosure is required for all properties built before what year? - Answers -
1978
For how many years must a seller keep a copy of the lead paint disclosure he provided
to the buyer? - Answers -3 years
Civil Rights Act Of 1866 - Answers -prohibits discrimination based on race or color.
There are no exceptions or exemptions for this law.
Title VIII of the Civil Rights Act of 1968 - Answers -forbids discrimination on the basis of
race, color, national origin, and religion.
A 1974 amendment added sex as a protected category.
Sexual orientation is not a protected category.
This act was amended in 1988 to include family composition and the handicapped.
two ways that a community can qualify as senior housing - Answers -1. 100% of the
units must be occupied by someone 62 or older.
2. 80% of the units must be occupied by someone 55 or older
Exceptions to Title VIII of the Civil Rights Act of 1968 - Answers -1) FSBO of a single-
family home when the owner owns no more than three homes at a time, and no
discriminatory advertising is used.
2) Rental of an owner-occupied 1-4 family home when the services of a broker are not
used and no discriminatory advertising is used.
3) Churches owning rental property may restrict occupancy to members of the
congregation, as long as membership in the congregation is open to all.
4)Private clubs owning lodgings may restrict occupancy to members as long as the
lodgings are not operated commercially.
What is the penalty for violating Title VIII of the Civil Rights Act of 1968? - Answers -
There are no criminal penalties.
The penalty for a first violation is up to $75,000.
The penalty for each additional violation is up to $150,000.
,What is the penalty for violating The Americans with Disabilities Act? - Answers -In
commercial properties, both the landlord and tenants will be held responsible for
access. Therefore, both can be fined if the building is in violation of the law.
The fine for non-compliance is up to $50,000 for the first violation, and up to $100,000
for each subsequent violation.
Exemptions to The Americans with Disabilities Act - Answers -Single-family homes,
private clubs, historic buildings, and religious organizations
What is the maximum amount of time allowed for a victim to file a fair housing
complaint? - Answers -24 months (2 years)
Escalation clause - Answers -allows a lender to raise the existing rate. An escalation
clause is usually found in an ARM.
Subordination clause - Answers -allows a lender to move to or take a lower lien position.
This clause would be found in a second mortgage, a home improvement loan, or a
home equity loan.
straight assumption - Answers -the new buyer is approved, and takes over payments
and liability.
This is often called a loan novation. This will not impact the seller's credit rating.
assumption "subject to" - Answers -the buyer takes over payments, but is not liable for
the loan.
The original borrower remains liable. This can have an impact on the seller's credit
rating.
Discount points - Answers -prepaid interest and tax deductible.
They raise the return or yield to the lender.
Origination points - Answers -loan processing fees
They are not tax deductible.
Points are paid at closing.
TRUTH-IN-LENDING OR CONSUMER CREDIT PROTECTION ACT - Answers -The
main purpose of the law is to allow consumers to understand the true cost of borrowing
money.
, Implemented by Regulation Z or "Reg. Z"
Real Estate Settlement and Procedures Act - Answers -regulates closings on 1-4 family
residential property with federally related financing.
(Apartment complexes would not be covered.)
What agency administers RESPA? - Answers -The Consumer Financial Protection
Bureau
What agency administers TRUTH-IN-LENDING OR CONSUMER CREDIT
PROTECTION ACT? - Answers -The Consumer Financial Protection Bureau
According to the TREC residential resale contract form, if a termination option fee is
paid, day one of the option period is: - Answers -The day following the effective date of
the contract
An agent has received a $75 check from a home warranty company. Can he keep the
check? - Answers -Yes, if the agent provided the RSC disclosure and the broker
authorizes the payment to the agent
When did the second amendment of the Federal Fair Housing Act go into effect? -
Answers -March 12, 1989
Fixed-rate amortized loan - Answers -equal, regular payments of principal and interest
until the loan is repaid. Interest is paid in arrears - at the end of each payment period.
Term loan - Answers -interest only until the end of the term, when the entire principal is
repaid.
This is a zero-amortization loan. This is also called a straight-loan.
Participation loan - Answers -Two or more lenders invest in one loan. This allows the
lenders to share the risk.
Acceleration clause - Answers -a provision in a written mortgage, or note, stating that in
the event of default the whole amount of the principal becomes due and payable
Alienation clause - Answers -"Due on sale" clause states that the balance of the
secured debt becomes due if the property is sold by the mortgagor without the
mortgagee's approval.
Defeasance clause - Answers -states that the lien is defeated when the debt is repaid.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller GEEKA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76462 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now