Magnolia Real Estate Quiz Questions

What would a sales associate be charged with if he/she took duplicates of listings when he/she left the brokerage firm to work with another company?

Breach of Trust

Concerning the Statute of Frauds which does not apply?

The Statute of Frauds states that ALL contracts must be in writing

What would a sales associate be charged with if he/she took original of listings when he/she left the brokerage firm to work with another company?

Larceny

Which of the following clauses or covenants in a deed, states that a grantor owns the property and has the right to it?

Covenant of seisin

Which expenses associated with a principal residence are deductible for income tax purposes?

Property taxes and mortgage interest

Which of the following methods of surveying property is used in a subdivision when plat maps have been recorded

Lot and Block

Which of the following types of notices is also called legal notice and is achieved by recording documents in the public records

Constructive notice

In which of the following mortgage lending theories does the borrower not retain the title during the loan period

Title Theory

If you are at the POB (point of beginning) and you are heading N90E. what direction are you heading?

East

Which of the following describes leverage?

is the use of borrowed funds to purchase assets or to finance an investment

How is the binder deposit shown on the closing disclosure form?

Credit to the buyer (only)

What is the status of a sales associate license if she does not complete the required post licensing education prior to the renewal?

Null and Void

How many sections are in a township?

36 sections

Which mortgage clause allows the mortgagee the right to demand the outstanding loan balance plus accrued interested in the event the borrower sells or transfers any interest in the property without the lenders prior written consent?

Due-On-Sale Clause

What requirement does not apply regarding dwellings built prior to 1978?

Buyers must have the property inspected for lead-based paint

What are the requirements for dwellings built prior to 1978??

1. Sellers and leasers must disclose the presence

2. Sale contracts and leases must include warning and disclosure language

3. Buyers must acknowledge that they received the warning (Pamphlet)

4. Sellers provide 10 day period inspect paint

Two close friends own a daycare center as joint tenants with right of survivorship. One owner passed away? Who owns the daycare center?

The surviving owner becomes sole owner of the daycare center by operation of law.

Free hold estate

own the house, business, condo

non free hold estates

you rent the condo, house or business (leasehold)

joint tentants

when 1 person dies, the property goes to the other tenant

The subject property is a 3 bedroom, 2 bath home. A comparable property is a 3 bedroom, 2 1/2 bath home. An appraiser has determined the extra half bath is worth about $2,200. What adjustment should the appraiser make?

Subtract $2,200 from the comparable transaction price

Which of the following is incorrect concerning FHA and VA Mortgages?

VA is a government insured loan and could be have a Origination fee

FHA is a ____ loan that has what type of fee?

government insured loan that has a origination fee.

VA is a ____ loan that has what type of fees?

Government Guaranteed loan that has an origination fee and a funding fee.

What is the down payment for the VA loan?

There is not one. ;)

If your vet husband dies, can you get a VA loan?

Yes, unless you remarry.

Which of the following liens would take priority?

Property Tax lien

Which of the following liens would take priority if property taxes isn't listed?

Special Assessment taxes

How is the intangible tax entered on the closing statement?

Buyer debit (only)

Which of the following is an example of the blind ad?

Call Suz, best sales associate in town (555.000.000)

What is a blind ad?

employer does not state the name of the practice or the telephone number in their ad. (this is illegal)

Which of the following is a penalty for a first time minor violation that is not accompanied by a fine?

A notice of Non-Compliance

An unlicensed personal assistant may perform which activity?

Hand out objective, Written information on a rental property

Two brothers have decided to purchase investment property and are not sure how they want to take the title. The brothers wives have looked into the options and decided that if one brother dies -his would like to receive the title. With this information, how should they take the title?

Tenancy in common

A father intended to leave his house to his son and executed a general warranty deed to the property and gave it to his son. Shortly after, the father died, before the deed could be recorded. Which applies?

The son has the title to the property because the title was conveyed when the father delivered the deed to his son and his son accepted it.

Do deeds need to be recorded in order to be valid?

No, but it is in the best interest of the parties to record the deed in public records (county clerk)

Which of the following clauses or covenants in a deed states that the granter owns the property and has the right to convey it?

Covenant of Seisin

Which expenses associated with a principal residence are deductible for income tax purposes?

Property taxes, mortgage interest, and mortgage loan origination fees

Amy, Todd, Frank, and Francine all co-own a beach house on St. Petersburg beach. Frank died, and his co-ownership of the property passed, according to his will, to his son. How do these parties own the property?

Tenants in common

Which statement is true about the monthly payments of a 30-year fully amortized loan?

Initially, interest is the largest portion of the payment

fully amortized loan

A loan that requires payments of both principal and interest. When the last payment is made, the loan is retired. At the end of this loan, it will be fully paid off.

At the beginning of the fully amortized loan most of your payments go towards ____, at the end of the loan most payments go towards ____.

interests, principal.

What are the rights flowing through the property called?

Riparian rights

If a sales associate picks up a escrow check on Tuesday, when does the broker have to deposit it into the escrow account?

Immediately, as defined, by Friday.

If the title company is holding the escrow check, what must be on the purchase and sales contract regarding the title company?

The name, address, and the phone number of the title company.

A broker sold an up to date and accurate rental list to a customer on June 10th for 475.00. On june 14th, the customer decided not to obtain a rental and then orally demanded, and should receive, how much of a refund?

$356.25

Within 30 days of giving a rental list --- when would you give an 100% refund and when would you give a 75% refund?

100% - if there are mistakes

75% - they don't obtain a property or they simply do not like the list

Which statements is false concerning the primary mortgage market and secondary mortgage market?

The primary objective of the secondary mortgage market is to create new loans for borrows to increase the money supply for lenders.

What is the Primary mortgage market is always between the ...

Between the borrower and the Lender

Secondary Mortgage Market

The market where mortgage originators can divest their holdings, and existing mortgages are resold. They mainly sell this to Fannie Mae but also Freddy Mac. This is between the Lender and Fannie mae or Lander and Freddy Mac.

What is the purpose of the secondary mortgage market?

to provide stable cash flow to the primary market

When a brokers license is revoked, which does not apply?

The sales associates register under the disciplined broker will automatically have their license status changed to null and void

What is the status of your license if you do not complete the 45hours of post license course?

Null and void

What is the status of your license of your broker dies?

Involuntary inactive

What is the status of your license if you do not complete your 14 hrs?

Involuntary inactive

Which of the following is the economic indicator that adjusts in the adjustable-rate mortgage?

The Index

In an adjustable-rate mortgage...

Index + Margin = Fully Indexed Rate

index ___, Margin __.

Index changes, Margin stays the same.

Which of the following methods of surveying property is used in a subdivision where plat maps have been recorded?

Lot and Block also called Plat Method

Which of the following types of notices are also called legal notice and is archived by recording documents in public records?

A constructive notice

In which of the following mortgage lending theories does the borrower not retain title during the loan period?

Title Theory

What are the two theories of mortgage lending?

Title and Lein

What is the difference of the title and lein theory?

Title you do not obtain ownership, lein you do obtain ownership.

If you are at the point of Beginning (POB) and you are heading N 90 degrees east, what direction are you heading?

East

What is not true of an abstract of title?

An abstract a complete successive record of a properties ownership.

What is an abstract title?

1. A complete search of recorded documents

2. Is a list of historical summary of the publicly recorded documents that affect title executed by an attorney.

3. An attorney/title company can give an opinion of the marketable title.

What is a chain of title?

A list of all owners.

Concerning the Statute of Frauds, which does not apply?

States that all contracts must be in writing to be enforceable.

What is the statute of frauds?

a statute that lists the types of contracts that must be in writing to be enforceable, pertaining to property.

Deeds, mortgages, promissory notes, purchase and sales contracts, option contracts, lease agreements for longer than one year, and buyer representation agreements for longer than a year must be in writing.

Which of these describes a non-freehold estate that includes a definite specified amount of time?

Estate for years

Which of the following statements is true concerning continuing education?

Actively licensed and inactively licensed sales associates must complete the 14 hours of continuing education.

A broker has listed a seller's property. The seller has disclosed to the broker that the roof leaks/chipped tile. The broker has satisfied his legal obligation if he tells the buyer:

The roof leaks/tiled is chipped.

Two brokers meet and decide to set commission rates on all sales for one year. Which applies?

This is a violation of Anti Trust Laws.

How are commission rates determined with the seller?

It is a negotiation between the broker and the seller.

How are commission rates determined with the broker and sales associate?

It is a negotiation between the broker and the sales associate.

Anti Trust Laws are established to protect

Competition

A broker sold three houses in Florida to customer that now lives in Chicago. The same customer uncovered an opportunity with someone who might want to buy a property from the Florida Broker. The customer asked the broker if he would reimburse her for the expenses incurred in convincing the person to buy property from the florida broker. Which applies?

The broker cannot re-emberse the customer because she does not have an active real estate license.

If a property sold for $675,000 and was listed for 6% commission, what is the sales associate's check amount if the sales associate is entitled to receive 80% of all commissions earned?

$32,400

Which of the following is true about taking listing contracts when a licensee leaves a brokerage?

IF a sales associate takes original listing contracts, he/she could be charged with larceny. If a sales associate takes copies of listing contracts, he/she could be charged with breach of trust.

Who owns the listing contracts?

The broker.

What if it called if a sales associate steals original listings?

Larceny

What is it called if a sales associate steals copy/duplicates?

Breach of trust

When office space rentals are plentiful, what type of market are we in?

A Buyer's Market

When office space rentals are limited, what type of market are we in?

A Seller's Market

What are the set of guidelines called that must be followed by appraisers?

USPAP (Uniform Standards of Professional Appraisal Practice)

When you get your real estate license, you are legally allowed to do _.

Appraisals, because an appraisal is a service of real estate.

When are you NOT allowed to do appraisals as a real estate agent?

When the money is federally related, if there's a bank or loan involved.

What does USPAP provide?

Uniform Standards of Professional Appraisal Practice it's the legal rules that appraisers follow.

What does the USPAP stand for?

Uniform Standards of Professional Appraisal Practice

Will you as a real estate license associate ever have to follow the USPAP?

Yes, because as a real estate agent we can do appraisals, unless the bank or loans are involved.

Can you call yourself an appraiser?

No.

What is a CMA?

Competitive Market Analysis

What does CMA mean?

An analysis / report of the neighborhood, on what's sold, what's available, and what's listed.

Can you call a CMA an appraisal?

No, a CMA is a Competitive Market Analysis, vs an appraisal is a strict rules used for Appraiser.

Which is the following is a written opinion of value?

BPO, which is a Brokers Price Opinion.

What is a BPO?

Broker's Price Opinion. A written opinion of a property's value, similar to a CMA.

A real estate brokerage company has entered into a single agent buyer broker relationship with the buyer. In order to show this buyer property that is listed with the same brokerage company for which it is a single agent, in what brokerage capacity may the company work with this buyer and seller?

Both the seller and buyer must transition to a transaction broker relationship before the buyer can be shown the seller's property.

Which of the following statements concerning the fair housing act is incorrect?

Steering is when sellers are encouraged to list the property based on discriminatory practices.

What is blockbusting?

An illegal practice in which licensees or others encourage homeowners to sell their property cheaply because of an influx or expected influx of minorities into the area.

What is redlining?

The practice of a lender to refuse to lend in a specific area or minority, often based on the minority makeup of the area.