Real Estate Prep Exam: Part 6

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20 Questions - Developed by: agentguide - Developed on: - 20.546 taken

  • 1
    In a typical agency relationship between the broker and the client, the broker's commission is determined by..
    minimums based on the property type
    mutual agreement
    state law
    the real estate board
  • 2
    The clause in a mortgage instrument that would prevent the assumption of the mortgage by a new purchaser is a(n)
    certificate of sale clause
    defeasance clause
    power of sale clause
    sue on sale clause
  • 3
    A broker lists a property for sale at t$100,000 with a 5 percent commission, and later obtains a verbal offer to purchase the property from a prospective buyer. The seller indicates to the broker that the offer would be acceptable if it were submitted in writing. Before it can be put in to writing, the buyer changes his mind and revokes the verbal offer. In this situation, the broker would be entitled to
    no commission
    a commission of $5,000
    only al partial commission
    the normal rate of commission
  • 4
    Mortgage lenders want assurance that future real estate taxes will be paid. the most common way to do this is to require the borrower to
    sign a note
    obtain title insurance
    pay it into an escrow account
    submit paid tax receipts
  • 5
    The pledging of property as a security for payment of a loan is
  • 6
    An eligible veteran made a purchase offer of $80,000 of a home he wants to finance with a VA-guaranteed loan. Four weeks after the offer was accepted, a certificate of reasonable value (CVR) For $77,000 was issued for the property. In this situation, any of the following could occur EXCEPT the veteran may
    negotiate with the seller to reduce the price $3,000
    purchase the property with a $3,000 cash down payment
    borrow the $3,000 for the cash down payment
    withdraw from the transaction without penalty
  • 7
    The principal distinction between the primary mortgage market and the secondary mortgage market is in the
    insuring versus the guaranteeing of mortgage loans
    use of discount points versus the use of origination fees
    use of mortgage versus the use of deeds of trust
    origination versus the purchase of mortgage loans
  • 8
    A graduated payment loan is one in which
    mortgage payments increase
    mortgage payments billon in 5 years
    mortgage payments decrease
    the interest rate on the loan adjusts annually
  • 9
    The (Closing Cost & You booklet) and a (Good Faith Estimates) statement are required to be given to prospective real estate borrowers under the
    Real Estate Settlement Procedures Act
    Equal Opportunity Act
    Fair Credit Reporting Act
    Home Disclosure Act
  • 10
    A lender may protect its interest in a mortgage loan by obtaining additional security from
    title insurance
    impound accounts
    private mortgage insurance
    the borrower's note
  • 11
    One of the ways lenders increase their revenue is by servicing loans. All of the following are activities of servicing loans EXCEPT
    collecting payments
    negotiating interest rates
    sending out "past due" notices
    paying real estate taxes from escrow accounts
  • 12
    At the closing, the real estate broker's commission generally appears as a
    credit to seller
    credit to buyer
    debit to the seller
    debit to buyer
  • 13
    The accrued interest on an assumed mortgage loan is entered on the closing statement as a
    credit to the seller and a debit to the buyer
    credit to both the seller and the buyer
    debit to the seller and a credit to the buyer
    debit to both the seller and the buyer
  • 14
    An example of a kickback that is prohibited by RESPA is
    a share of the commission paid by Broker A to her salesperson
    A fee paid by a surveyor to a broker for a lead on a property to be surveyed
    a flower arrangement that a salesperson sends to the buyer a house warming gift
    a fee paid by Broker A to Broker B for referring a buyer to Broker A
  • 15
    Answer Questions 15-19 based on the information provided concerning the closing of a real estate transaction---
    Purchase price:$25,000 cash --
    Earnest money:$1000 --
    Commission rate: 7% --
    Revenue stamps:$25 --
    Real estate taxes:$350 has already been paid in full for the current year --
    Title insurance policy:$153.51 --
    Recording fee:$2 --
    Escrow fee:$168 (divided between Seller & Buyer on a 50/50 basis) --
    Existing mortgage loan balance (payoff): $9,450 including credit for the reserve account --
    Closing date: July 31st --
    Prorate using a 30-day month and a 360-day year. Prorate the taxes as of the close of escrow. Split the escrow fee 50/50 between the parties. ----What amount is the buyer debited for the real estate taxes?
  • 16
    What amount is the seller debited for the broker's commission?
  • 17
    What amount of the escrow fee will the buyer pay?
  • 18
    What is the total amount the buyer is required to deposit?
  • 19
    What are the seller's proceeds from the sale?
  • 20
    The basic components a foundation include all of the following EXCEPT
    Concrete Slabs
    Ridge Boards

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