CompuCram Questions || with A+ Guaranteed Solutions.
The money to fund FHA loans is provided by correct answers lending institutions
Broker Q lists seller Y's property under a 6 month exclusive agency listing agreement at 7% commission that runs from January 1st through June 30th. By early June there has been virtually no activity. The seller, frustrated with the progress, begins holding his own open houses and actually sells it by accepting an offer on June 15th. Seller Y owes Broker Q which of the following? correct answers Nothing.
Managing brokers are required to develop and enforce the use of a written office policy on agency for which of the following? correct answers Clients, and customers who may disclose confidential information.
Seller G owns seven duplexes on adjacent parcels and lists them for sale with licensee A. The sale of each of these residential properties: correct answers requires the use of the seller's disclosure form for each property.
A broker's ad for a listed property must not: correct answers include only a P.O. Box, telephone number, or street address.
Lender S has acquired several properties in Indianapolis through foreclosure sale and has requested that broker B assist in the valuation of these properties. B may perform a fee based valuation under which of the following circumstances? correct answers B must comply with the Uniform Standards of Professional Appraisal Practice.
Licensee S was just found to have violated RESPA by paying kickbacks while working for a title
and mortgage company. Though she did not face any further criminal prosecution, she did accept
a consent decree from the Consumer Protection Division of the Attorney General's office not to practice mortgage brokerage or work in the lending or title insurance fields. S's actions will require her to: correct answers face a hearing before the Commission for failing professional standards.
Several years ago an elderly man quietly passed away in a home. It has sold a couple times since.
When the property comes up for sale again, the fact that the elderly man died there would classify the property as: correct answers psychologically affected.
Broker J lists seller Q's home for sale at $775,000 on the 1st of the month. On the 5th, J receives a list price cash offer from broker Y that Q promptly accepts. Later on the 5th, J receives a "low ball" offer from broker P for $405,000 that includes seller financing. Given the prior acceptance of a list price offer, J should do which of the following? correct answers Present the "low ball" offer immediately.
Indiana licensees are required to disclose their agency relationships: correct answers prior to a consumers' disclosure of confidential information. Broker T lists owner K's office building for sale. T receives an offer on the building from buyer B, a successful developer. B represents himself and is a licensee. T also owns a janitorial company and has all 12 of B's other properties under janitorial contracts. T does not have an exclusive agreement with B and has not spoken with B as to whether she would get another janitorial contract if B buys the building. Regarding B's offer, T: correct answers must disclose her relationship with B including the possibility of other income.
Regarding completion of the various agreements and contracts typically used by brokers, Indiana
licensees may do which of the following? correct answers Fill in the blanks on lawyer prepared forms.
The Indiana Real Estate Commission may issue a cease and desist order for which of the following? correct answers An unapproved real estate school enrolls students.
Commercial Broker C refers a seller to residential broker R. R sells the property and a referral fee of 20% was paid to C when the sale closed. R misrepresented the condition of the property to
the buyer who had to spend $12,500 on repairs for the undisclosed defects. Regarding liability for this, broker C would: correct answers not be liable.
Seller N and broker K enter into a listing agreement that would provide the greatest commitment to K because regardless of who brings the buyer, if a sale is consummated, the fee is due. Which type of listing agreement would this be? correct answers An exclusive right to sell.
Listing broker P lists seller F's property for sale at $235,000. P receives an offer on Saturday afternoon at 6:00pm. The offer is for $200,000 and will expire on Sunday at 6:00pm. Broker P meets with seller F at 8:00pm on Saturday and F counters the offer at 9:00pm, and the counteroffer will expire on Monday at 10:00am. Regarding the counteroffer, P should: correct answers present the counteroffer to the other agent immediately.
Broker P is associated with managing broker Q. P hires S as a licensed assistant on her team. In this arrangement: correct answers Q will hold the licenses of, and be responsible for, both P and S.
Broker M is making a listing presentation to seller C. Though M has sold many homes in the area and two years ago did sell the most homes in this subdivision, when he states "I've sold more homes in this neighborhood than any agent," he is actually incorrect. M's statement is: correct answers an incompetent practice.
A buyer is hesitant about buying property that even he agrees is the best one he has seen. The broker tells the buyer "this is one of the best values I've seen in years. I know whoever buys it is going to make money." Regardless of whether the broker is right, this statement is considered which of the following? correct answers An incompetent practice.
A listing agent represents a seller who is in real financial trouble. The sellers are downsizing due to the husband losing his job. A buyer's agent showing the property asks the listing agent why the sellers are selling. Which of the following would an appropriate response? correct answers "I can't discuss my client's circumstances, any more than you could discuss yours."
In-house agency refers to which of the following? correct answers Two brokers with the same firm representing different clients in the same transaction.
An offer is presented to a listing agent that includes no earnest money. Given the absence of any earnest money the agent should do which of the following? correct answers Present the offer immediately, as earnest money is not a requirement.
A broker must include the name of the managing broker or broker company he or she is affiliated
with in all advertisements except: correct answers no exceptions, as all advertisements of property or services must clearly reference the brokerage.
Broker F has sold her personal residence the first day on the market. The new home being built for her and her family won't be ready for another 5 months. F contacts a friend and investor who owns several rental properties and leases one for 6 months. In this situation: correct answers F must disclose in writing that she is a licensee.
A buyer that nullifies the purchase agreement upon receipt of a sellers' disclosure delivered after the offer was accepted: correct answers must have their earnest money returned.
The seller agrees with her listing agent Q that a property is overpriced at the list price of $350,000, and that $250,000 is really the fair market value. Selling agent J asks Q about the property wondering if it is worth showing. J has an interested buyer, but only in the $250,000 range that the comparable sales support. Which of the following would be an appropriate response from Q? correct answers You should always show a property your buyer is interested in.
Listing broker Ethan tells the buyer of a very old home that "at least the property seems to be well insulated." After purchasing the property the buyer experiences very large heating bills during a relatively mild winter. She finds that there is virtually no insulation in the ceiling and attic and only wads of newspaper in the wall voids. Ethan actions would: correct answers be a misrepresentation.
Broker D had his license suspended for 1 year and was required to complete 20 hours of CE in the problem areas and complete 10 hours of community service. In the last 6 months D has completed 60 hours of CE and completed over 120 hours of community service and was just appointed to the board of trustees for the community organization and was awarded the volunteer
of the year award. The Commission is very impressed with D's efforts. The Commission may: correct answers reinstate the license if satisfied that D would practice competently.
Which of the following would not require use of the firm's agency disclosure form? correct answers A discussion at an open house with a buyer about the home's features. Broker M manages properties for several investors, and keeps separate escrow, operating and emergency repair accounts for each client. M's largest client is investor K, who has 43 properties under management contract with M. Over the weekend 6 of K's properties were severely damaged by a storm and the emergency repair account doesn't have enough to cover the repairs that are needed immediately to avoid further damage. K is out of the Country until Monday. In this case M should do which of the following? correct answers Work with the insurance company, and use the limited funds as wisely as possible to complete the repairs.
The "Old Jones Mansion" has long been believed by children and adults alike to be haunted as Mrs. Jones disappeared without a trace years ago. Children tell stories about the property saying they have seen ghosts there and heard voices when walking by at night. Mr. Jones passes away in
the nursing home he has lived in for the last 15 years. When Broker Rick lists the home with the executor of Mr. Jones estate, the property would be considered which of the following? correct answers Indiana real estate law doesn't recognize hauntings or apparitions.
A sole proprietor broker acting as a limited agent may receive compensation from which of the following? correct answers Either the seller, the buyer, or both.
Licensee L was just convicted of violating the Federal Fair Housing act for discriminating against single mothers with children at the Los Angeles, CA apartment complex he was the manager of at the time. He had claimed the complex had a familial status exemption as housing for the elderly when in fact it did not. He became an Indiana licensee 1 year ago, but was not a licensee in Indiana or California at the time of the incident. L's actions: correct answers would be
considered incompetent practice.
A broker representing the owner: correct answers must disclose material facts regarding the property.
Broker G failed to renew her license before expiration. Which of the following actions would the
Commission likely take against G? correct answers None.
Broker D receives an offer on his listing of seller C's property that provides for no earnest money. Broker D should do which of the following? correct answers Present the offer.
Managing broker Y heard a great tip for the 3rd race at Hoosier Downs this Sunday; it will pay 100:1 odds. With the office closed for the holiday weekend anyway and such a once in a lifetime
tip, Y decides to borrow $25,000 from the escrow account, just for the weekend. Y places the bet, and of course the horse loses. Y couldn't immediately repay the money and clients were harmed. Eight months later Y did repay all money. Regarding Y's behavior, which of the following best represents the charges Y could face: correct answers criminal, civil and regulatory
charges.
The owners of an undivided interest in land, with no rights of survivorship, would be considered correct answers tenancy in common
