AREC Final exam Study Set UPDATED ACTUAL Questions and CORRECT Answers
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Course
AREC
Institution
AREC
AREC Final exam Study Set UPDATED
ACTUAL Questions and CORRECT
Answers
When preparing the sales contract, when is it acceptable for a licensee who is not an attorney
to offer legal advice to the client? - CORRECT ANSWER- Never
A set of guidelines for the ethical conduct of real estate licen...
AREC Final exam Study Set UPDATED
ACTUAL Questions and CORRECT
Answers
When preparing the sales contract, when is it acceptable for a licensee who is not an attorney
to offer legal advice to the client? - CORRECT ANSWER✔✔- Never
A set of guidelines for the ethical conduct of real estate licensees is called a - CORRECT
ANSWER✔✔- Code of ethics
Which of the following is the best definition of a covenant between a lessor and lessee? -
CORRECT ANSWER✔✔- An agreement or promise made between the parties
Which party's closing costs might include mortgage insurance? - CORRECT ANSWER✔✔-
Buyer
The Real Estate Settlement Procedures Act is a consumer protection statute that - CORRECT
ANSWER✔✔- Requires lenders to provide the consumer with certain disclosures for
residential real estate transactions and prohibits kickbacks among settlement service
providers
Licensee Kyle has had a few casual meetings with a potential client, Mary. Mary told Kyle
the type of home and area she's interested in, and Kyle mentioned a few homes he thinks
Mary might be interested in. Although Kyle hasn't said he will continue to look for homes for
Mary, Mary believes he'll do just that. Which of the following statements about this situation
is correct? - CORRECT ANSWER✔✔- Kyle's actions may have created an implied agency
agreement with Mary.
Which of the following is designed to protect buyers from financial loss if the title to the
property they buy has defects? - CORRECT ANSWER✔✔- Title insurance
The Knolls are purchasing a property and are concerned about the title, so they want to have a
title search performed. Who can perform a title search? - CORRECT ANSWER✔✔- A title
insurance company
, Jim is acting as a limited services representative to Sheree, who has decided to waive his duty
to negotiate on her behalf. Jim must provide Sheree with ______. - CORRECT
ANSWER✔✔- A waiver of duties statement
Which term refers to the ordinances/regulations that protect the community and control
property development within subdivisions? - CORRECT ANSWER✔✔- Subdivision
regulations
Which of the following statements describes laws and ethics? - CORRECT ANSWER✔✔-
Laws are made by the government, and ethics are dependent on conscience and values.
If you were a member of a local planning board, your responsibilities could
include________. - CORRECT ANSWER✔✔- Determining zones within the municipality
While reviewing her purchase contract, Jeanette's client asked, "What does this inspection
contingency do?" How should Jeanette frame her response? - CORRECT ANSWER✔✔-
"The inspection contingency is designed to protect you in case the home inspector finds
something wrong with the property that can't be fixed or that makes you uncomfortable."
You just helped Marcy find her dream home—a condominium that will be her full-time
residence. She loves that it's in a self-contained community with leisure activities, shops,
restaurants, and security. This type of development is sometimes called a planned unit
development (PUD). Which type of multi-family housing is Marcy buying? - CORRECT
ANSWER✔✔- Master-planned community
Jamal is a real estate licensee. What's his responsibility regarding household lead hazards? -
CORRECT ANSWER✔✔- He must remind the sellers to disclose the possible presence of
lead-based paint to a buyer if the home was built prior to 1978.
When is a title search conducted? - CORRECT ANSWER✔✔- Before a property is sold in
order to determine if there are any defects on the title
What do buyers provide to the seller as an indication that they are serious and intend to go
through with the purchase? - CORRECT ANSWER✔✔- Earnest money
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