the ce shop national exam

exclusion

Elvin owns 150 acres of prime hunting land. Every year he has requests from private groups who would like to use his land for a day or two during hunting season. Some years he grants these requests, but this year he's decided to only use it personally and when with friends. Which right in the bundle of rights says that he can say no to these requests?

credit union

Which type of lender is a member-based cooperative that provides credit for auto loans and home loans, takes deposits, and offers savings vehicles and money markets?

carpenter ants

You're showing a house when you notice piles of what looks like sawdust outside near the basement windows. This may be evidence of ______.

rust is two - three months in defult

Rusty received an acceleration letter from his mortgage lender. What is the most likely reason for receiving this letter?

Use adjusted prices from sold comparables and refine the range with data about active listings, expired listings, and possibly pendings

Use adjusted prices from sold comparables and refine the range with data about active listings, expired listings, and possibly pendings

It helps ensure buyer loyalty

Why might a licensee want a buyer to sign a buyer representation agreement?

Sam is considered an employee for licensing law purposes, but he's still an independent contractor for IRS purposes.

Sam is an independent contractor licensee working for B & L Realty. Since Sam is an independent contractor, what supervisory responsibility does Sam's broker have?

development cost

In local land use, the connection of utilities is considered a ______.

there could be hidden title issues

What special concern do foreclosed properties often present?

The periodic payments go to interest only and the entire principal amount is due at the end of the term.

Which of these is the best definition of a straight loan?

adjustable rate mortgage

Janice is extremely excited to have purchased her first home. She was able to lock in her monthly payment at a very low rate for the first five years. In year six, Janice's payments will become significantly larger based on the going market rates. What type of loan does Janice have?

Its optional longer term means a lower monthly payment.

Its optional longer term means a lower monthly payment.

What's one benefit of a rural development loan?

39 years

Over how many years is a commercial property depreciated?

A covered party grants permission to the title company to pursue the party who caused a claim or loss.

Related to title insurance, what is "subrogation"?

When interest rates are high, buyers are often priced out of the market.

Interest rates determine buying power. Which of the following is a true statement?

Maybe, but they'll have to petition their lender

The Bransons have a conventional loan for which they were required to obtain private mortgage insurance. Their local real estate market has been going like gangbusters, and their house is now appraised at twice their loan balance! Will their PMI be cancelled?

The listing price of the neighbor's property

Rachel is talking with a co-worker, Shawna, about homebuying. Rachel shares some general market trends and talks about the impact of rising interest rates. She notes that the listing price of Shawna's neighbor's house seems lower than it should be, and then they talk about the importance of getting pre-approved for a loan early in the process. Which of her statements might have created an implied agency situation?

lease duration

When considering buying property subject to an existing lease, it's critical for your client to clearly understand the lease terms, including the property management responsibilities, rent amount, renewal/purchase options, and the ______.

no, it still has to appraise

When market conditions indicate top-of-the-market pricing, is it always in your client's best interest to price it there?

property taxes

What's a typical prepaid item that will go into a seller's credit column and a buyer's debit column on a closing statement?

anticipation

The economic principle known as ______ means that the value of property today is impacted by the current value of the total expected future benefits.

a foundation problem

Your buyers step outside to view the backyard of a property they're touring, but then they can't get the back door closed again. You recognize that this could be a symptom of ____, and realize that if they are interested in this property, they will want to discuss this issue with a home inspector.

bulk zoning

One area of town has maximum building height requirements and setbacks for the front, side, and rear yards. These requirements are all indicative of ______.

A permanent land marker sometimes used in legal descriptions

what's a monument?

method of annexation

The MARIA acronym helps to identify the five tests of a fixture. Which of the following tests refers to how and whether the item is attached to the property?

seek a sale at the best price at terms acceptable to the seller

What responsibility does the seller's agent have to the seller?

Homestead may represent the buyer, must disclose material facts about the property, and must maintain Gertrude's confidentiality.

Homestead Realty had a listing agreement with Gertrude. The listing expired, and Gertrude moved the listing to another firm. Another licensee at Homestead Realty has a buyer client who's interested in Gertrude's property. What restrictions are in place for Homestead Realty?

consult an attorney

William is a real estate licensee who's preparing a sale agreement that will include an unusual circumstance. What's the best course of action?

27.5 years

Jennifer is the owner of the single-family residence in which she resides. How long can she take to depreciate her property?

right of first refusal

Margaret isn't ready to buy Jill's property, but she pays Jill a fee that guarantees she'll be notified if another buyer appears. If another buyer does make an offer, Margaret has the opportunity to purchase at the price and terms of the offer. Margaret has a(n) ______ on Jill's property.

"It includes a description of the property you're selling and my obligations to you, such as my duty to assist in negotiations."

Esther is thinking of signing an exclusive right-to-sell agreement with broker Sully, but first she asks, "What kinds of things does this agreement cover?" How should Sully answer?

buyer agency

You represent the buyer in one transaction and the seller in a different transaction. What type of agency relationship do you have with the buyer?

Margo is in the ownership stage of the property ownership lifecycle.

Margo's accountant tells her that she's eligible to deduct the property taxes she paid last year. Select the statement about this deduction that's true.

2048

Tyrell and Barb bought a commercial investment property in 2009 during the real estate market downturn. Through what year will they be able to depreciate the investment?

buyer

You represent a buyer in a transaction that includes a 2% cooperating agent commission that will be paid by the seller. Who's your client?

comparables

In the sales comparison approach, which of these are selected and evaluated both quantitatively and qualitatively against the subject property?

termites

Which type of pest may make mud tubes—tunnels that run along your walls—or shed tiny wings?

No, because all compensation must come through your broker.

You work for XYZ Realty under the supervision of broker Luke. Your buddy in the next county gave you a referral fee. The check came to your office in your name. You deposit it. Is this okay?

Kayla is a licensee with ABC Realty and lists a property for seller Devon. Maurice is a salesperson with XYZ Realty Group and brings a buyer to the table, but owes fiduciary duties to the seller.

Which of the following is an example of sub-agency?

september 18

Elizabeth is financing a new home. She submitted her loan application on Monday, August 3. She's set to close on Thursday, September 21. By what date must her lender provide the Closing Disclosure?

lead

Your buyers love the 1891 Victorian they have under contract, but they want to get both the water and the paint tested as soon as possible. What are they testing for in both water and paint?

pass the timeshare on to an heir

Brandon has a right-to-use timeshare. What can he NOT do with this type of timeshare?

The federal building code

If there's no state or local building code to cover a specific situation, what code must the builder abide by?

voidable

As part of the sales contract, Garth, the seller, was supposed to provide a copy of the seller's disclosure to the buyer, Melanie, but he failed to do so. What type of contract is this?

suing for specific performance

DeeAnna thinks she's purchased an investment property, but the seller refuses to deliver the title to her. DeeAnna has met all of her obligations per the written contract that she and the seller signed. She decides to take the seller to court in an effort to force him to hand over the title. This is an example of ______.

Whether the property is insurable, located in a wetland, or located in an historic area

As a part of a buyer's due diligence, which location-related issues should be researched?

Bethany and her broker violated federal (and perhaps state) laws prohibiting referral fees to certain third-party vendors.

Bethany has several clients who've used Jerrica, a local mortgage broker, for their mortgage loans. Jerrica recently had an opportunity to return the favor, and she referred a buyer client to Bethany. Through her broker, Bethany sent Jerrica a $200 gift card as a referral fee. Which of these statements best represents this transaction?

cost

Which of the following can be defined as what it would take to recreate that property if it disappeared off the face of the earth today?

timeshare use

Vicky and Lee vacation in Cancun, Mexico, every year. They purchased the right to stay in a beach condo for the first two weeks in May, in perpetuity. They don't actually own a share of the unit. What did they purchase?

Which of the following scenarios best describes a net listing?

Maeve wants to get at least $350,000 when she sells her property and tells her listing agent, Stan, that he can keep anything above that amount.

In a trust, the trustee is the person who ______.

Makes sure the terms of the trust are carried out

Regina didn't purchase the mineral rights, which have been severed from the property by the previous owner.

Regina purchases a farm with 80 acres and owns her property in severalty. What does this mean for the company that purchased the mineral rights from the previous owner?

A kitchen cabinet that was installed at a slight angle

Which of the following wouldn't need to be disclosed by the listing agent who noticed it when selling a home?

Asbestos tiles in a basement

Which of the following would a home inspector note as a defect in a report, due to its link to lung cancer?

The Federal Communications Commission

The Telephone Consumer Protection Act is overseen by ______.

the broker

Whose responsibility is it to supervise licensees and review transactional paperwork and advertising?

Monica used funds from the firm's trust account to pay her firm's rent.

Which of these is an example of conversion of funds?

consideration

Dean and Michael have an oral contract. Dean said he would sell Michael his bike in return for Michael's vinyl album collection. What does the record collection represent?

very dwelling, no matter the age or size, should have a home inspection.

Donald and Martina have decided to purchase a newly built home. Their agent Ed recommended that they have a home inspection. They had thought that inspections were only for existing homes. How should Ed respond to that?

probate

Marcia Weinstein died, and her property wasn't held in a trust. Thus, her estate will go through ______ to ensure her property is distributed to her beneficiaries in accordance with her will.

mechanic's

Oscar bought an older home and hired a contractor to replace the old knob and tube wiring throughout the house. He was invoiced for the work, but 60 days have passed and Oscar has yet to pay the bill. The electrician filed a lien against Oscar's house. What type of lien is this?

three

What's the minimum number of business days prior to closing that lenders have to provide borrowers with the Closing Disclosure form?

He's representing (and owes undivided loyalty to) either the buyer or the seller.

Erik is acting in a single-agency capacity in a transaction. What does this mean?

Statute of limitations

Jerry and Simon signed a contract so that Jerry could purchase all of Simon's restaurant equipment for one price after Simon closes his restaurant next month. The contract contains a provision that states Jerry has one year from the purchase date to file a suit relative to the purchase. After the year is up, Jerry forfeits the right. What kind of contract clause is this?

FHA

Lauren obtained a loan that's insured and that only required a down payment of 3.5%. Which of these is most likely the type of loan Lauren has?

credit cards

State usury laws are typically not applicable to what type of lending?

joint tenancy

Which ownership type is defined by four unities: time, title, interest, and possession?

to all parties as soon as possible

Ned is a listing agent who has learned of a material fact related to the transaction. To whom and when must he disclose this information?

metes and bounds

Morty, a land surveyor, was called out to survey a property. After doing some research, he located the legal description for the property in question. Now, if he could just find the point of beginning located at the iron pin on the southerly line of state route 117, 30 feet east of the oak tree next to Bear Creek. What type of legal description is Morty working with?

A 36-square-mile square formed in the use of the rectangular government survey system

What's a township?

Create a contract amendment with the required language.

Don and Becky realized too late that the contract they signed for the sale of their home didn't include any language about a rent-back if the home they're building isn't ready in time. What can their listing agent do?

The client may owe a commission anyway.

A client terminates a listing agreement before its expiration date. What happens now?

Jake's firm agrees to charge all clients a listing commission of between 2% and 2.5%.

Which of these is NOT an example of price fixing?

Breanna accepted the offer Kathy made.

Breanna signed a purchase offer stating she'd buy Kathy's home for $150,000. Kathy replied, "No way," but offered to sell it to her for $200,000. Breanna agreed to these terms, and they added their signatures. Which of the following statements is correct?

Immediately upon issuance

Lot and Block Realty received a cease-and-desist order from the FTC due to misleading ads the firm was running. When does the order become effective?

No, because the listing agreement is contractually binding.

Jared, a seller, has found his own buyer and wants to terminate his exclusive right-to-sell listing agreement with Sue, his listing broker. May he do so without penalty?

Nate didn't tell his client about a conflict of interest related to the sale of the client's property.

In which of these situations has the licensee compromised the duties of loyalty and disclosure?

depreciable basis

Malcolm purchased an old convenience store, and after renovations will open a small vegan grocery. He paid $517,000, of which $417,000 was for the building, and renovations cost him $107,000. What does the amount $524,000 represent?

Vickie's staging company works with investor clients to stage vacant properties.

Which of these professionals' type of activity is NOT covered by the Fair Housing Act?

A monetary penalty imposed on a borrower for paying off a loan before its intended time

Which of these examples describes a prepayment penalty?

Single-licensee dual agency

If you represent the buyer and seller in the same transaction, what type of agency relationship do you have with your clients?

The specified term in the agency agreement expires.

Which of the following actions would result in the legal termination of an agency agreement?

You agree to design the houses for this builder in return for getting the listings when the properties are finished.

Imagine that you're an active real estate licensee as well as an architect, and you'd like to partner with a builder who's just beginning a development. Which of these creates agency coupled with interest?

consent

In a real estate transaction, which of the following is established when parties enter into an agreement voluntarily with full understanding of the contract terms?

The market for similar homes is good

In completing a CMA, finding a comparable (competitive) property that had a quick sale can indicate that ______.

Controlling the Assault of Non-Solicited Pornography and Marketing Act

What does CAN-SPAM Act stand for?

Cost to build a functionally equivalent improvement

With the cost approach to value, what is the replacement cost?

What are the property taxes for this property?

As a licensee, which of the following questions from a potential buyer could you answer while staying within your scope of expertise?

Percentage

Tyra owns a nail salon that’s located in a strip mall. Her rent every month includes $1,800 base rent and 10% of her gross sales. What kind of lease does Tyra have?

Asks the lender if there are other options available that would not involve a prepayment penalty

Ed is a homebuyer reviewing the Loan Estimate he received from a lender. He notices the loan terms include a prepayment penalty. Because he’s a savvy consumer, he ______.

Both easements and encroachments affect the property’s lot size, enjoyment, and use, which can affect a property’s value.

Why would a buyer want to know if any easements or encroachments exist on a property?

the lease

The amount and disposition of security deposits for commercial tenancy are defined by ______.

Agency describes the relationship between the real estate professional and the person or persons being represented

Which of the following is true regarding the definition of agency?

40

How many acres are in a parcel described as, "The NE 1/4 SW 1/4 Section 3, Township 4S, Range 2W of the 6th PM"?

police power

Adams County implemented a 10 p.m. curfew for youths under age 18 because of the high number of fights that have been occurring late at night in public places. Which of the following gives Adams County the right to restrict the movements of its minor citizens?

Yes, the contract is valid.

Your 15-year-old son just signed a contract joining a health club which costs $50 a month. Is this contract valid?

subleasing

Lorenzo just received a prestigious fellowship to study abroad for a year! However, he still has six months left on his one-year apartment lease. His landlord has given him permission to draw up a new agreement with his sister Maggie, whereby Maggie will live in the apartment, pay rent to Lorenzo, and then Lorenzo will pay the landlord. This is an example of ______.

The lender must provide the Closing Disclosure by Friday of the week before closing.

Kelly is closing on the house she’s purchasing on Wednesday. Which of these statements is true?

mortgage banker

Mick focuses on originating mortgage loans at a company that has in-house loan processors and underwriters. The options he offers consumers are limited to the products his company offers. What's Mick's position?

Disclose to his friend that he’s not an agricultural expert and ask his friend’s permission to work with an agricultural expert in his firm.

Chip is a residential and commercial agent. His friend asks him to list his cattle ranch for sale, but Chip’s never listed an agricultural property before. How should Chip handle this listing so he can still work for his friend but also not work outside his area of expertise?