Chapter 2 MO Real Estate

An agency relationship may be involuntarily terminated by which of the following?

By destruction of the property through fire, vandalism, or natural disaster

When a seller authorizes a unilateral offer of subagency to all MLS members, any agent who shows the listed property automatically becomes

A subagent

An agency relationship may be involuntarily terminated by which of the following?

Condemnation of the property

Sally is a subagent working for Seller Pat. What does Sally owe to Buyer Brad?

Honesty and fair dealing

Which of the following terminations of an agency relationship could result in legal or financial ramifications?

Renunciation by the client

When the agency relationship has been terminated, the licensee is no longer considered the principal's agent but still owes which of the following duties to the principal?

Accounting

With which of the following can a broker NOT enter into a single agency agreement?

Seller and buyer

A person who is empowered to act on behalf of another is called?

An agent

When the agency relationship has been terminated, the licensee is no longer considered the principal's agent but still owes which of the following duties to the principal?

Confidentiality

When a seller gives permission to a broker to submit the property to the MLS, the seller is authorizing the broker to make a blanket unilateral offer of what to all the other members of that MLS?

Subagency

What is the term given to an agent who is acting as a buyer's and seller's agent in the same transaction?

Dual agent

A subagent owes customer level services to the buyer which include which of these?

Honesty, fair dealing and the proper disclosure of pertinent facts that affect the value of the property

Which of the following may not involuntarily terminate an agency relationship?

Expiration of the agreement term

Revocation of a broker's license results in

Termination of the relationship

"As is" sales are tempered by which of the agent's duties?

Disclosure

What kind of defects are hidden from normal vies but still must be disclosed?

Latent

Latent defects are those

Hidden from normal view and, therefore, must be revealed

An agent must inform client and customer that the agent represents the client and does not represent the customer, unless

there is a dual agency

The agent who has the job of obtaining the best possible transaction for the seller is

the designated agent

A licensee for a seller has a duty to disclose such things except

ability of the purchaser to offer a higher price even if the purchaser is also the licensee's client

Since many of an agent's fiduciary duties can only be rendered to one party, an agent would have a difficult in not impossible time performing his/her duties in which type of agency?

Dual agency

Properties that have an undesirable reputation due to an associated unpleasant occurrence, such as murder or gang violence, are known as

stigmatized properties

Since the listing agreement is a contract that established an agency relationship, which law(s) is the relationship subject to?

All of the above

Most real estate listing contracts are which kind of agency?

Special agency

If a client refuses to disclose material defects to a buyer, what should the agent do?

Decline or sever the agency agreement

A licensee must provide____ of any existing agency relationships to all parties for whom he or she provides real estate brokerage services

A written disclosure

In Indiana, contractual relationships are always formed at what level?

Managing broker

The licensee may disclose to the seller the financial status of the potential buyer customer. Is this statement true or false and why?

True if the agent has knowledge of the buyer's financial status

Representing both principal parties to a real estate transaction is

A dual agency

A legal doctrine by which a person is prevented from asserting rights or facts that are inconsistent with a previous position or representation made by act, conduct, or silence is

An estoppel

If an agency relationship has not been established by a written agreement, does the relationship exist, and if so, what kind of relationship is it?

Yes, it is an implied agency

Before a licensee sign a listing agreement with a seller, he/she mist

Give the seller an agency disclosure

A licensee for the buyer has a duty to disclose such things except

why the seller is selling if the licensee knows this from a previous relationship with the seller

The licensee could be known as a transaction broker, facilitator, or coordinator in which type of agency?

Non-agency

To make it easier to describe elevations, surveyors refer to standard elevation points called

Benchmarks

What is a "block" in the lot and block system of description?

A group of lots in a subdivision

Which of the following lines in the Rectangular Survey System run north and south?

Range lines

What method of legal description was the first one used in America?

Metes and bounds system

Benchmarks are used to

Provide reference elevations for nearby properties

A legal description of a property is one which

Accurately located and identifies the boundaries of the property and distinguished it from all other properties

The essential criterion for an acceptable legal description is that it

Accurately located the parcel so that a surveyor can find it

Standard elevation reference points established throughout the country are called

Datums

The fundamental components of the metes and bounds system are

Reference points, angles, and distances

A legal description in the rectangular survey system will also include a metes and bounds or lot or block description if the property

Is irregular in shape

Which land description method employs a subdivision plat map?

The lot and block system

The description of a recorded plat property first presents the property's

lot number or letter

As a legal descriptor of land, a township square consists of

36 square mile

A full legal description in a recorded plat must include

the subdivision's location within a section, a township, a country, and a state

Beginning at the SE corner of the intersection of Olive & 270, thence south 350 ft, thence west 350 ft, thence north 400 ft, thence east 400 ft. Is this a good legal description?

No, this is not a good legal description because it does not begin and end at the point of beginning

The legal description of a recorded plat is incomplete if it lacks

The subdivision's location in a section and township

How are directions described in a metes and bounds survey?

In terms of degrees east or west of an imaginary north-south axis

What are the dimensions of a township?

Six miles square

Which of the following is NOT an element in the recorded plat system of legal description?

Point of beginning

A check or quadrangle is defined by the intersection of pairs of

guide meridian and standard parallels

A parcel's street address is an insufficient legal description because

It lacks permanence and sufficient data for a surveyor to locate it

Accepted methods of legal description do not include

block and tackle

A range is defined by

two consecutive meridians

A benchmark

provides a reference for indication elevation in a survey

A plat of survey is best described as

a survey of an entire subdivision

Which of the following items does the seller usually pay?

Satisfaction of existing liens

The escrow agent will open an escrow in the names of

All parties involved

Which statement is true about accepting referral fees?

It could be a violation of state licensing laws

What type of closing consists of all parities in the transaction meeting at one time?

Face-to-Face

Most lenders require buyers to purchase

Homeowner's insurance

Which of the following is TRUE regarding the recording of a deed?

It is not a legal requirement that a deed be recorded in the County Clerk's office

Which of the following information will the escrow agent NOT need?

The buyer's credit report

What is the seller's primary function at closing?

To deliver the title

TRID requires a lender to give a loan estimate and a copy of a booklet "Your home loan tool kit" to an applicant within what timeframe?

Within three days of receiving a loan application

RESPA would apply to which of these?

Second mortgage on a condominium

When must loan services provide borrowers with an escrow statement which summarized all inflows and outflows in the previous 12 months?

Annually

Both the buyer and the

lender should have title insurance

RESPA allows referral fees for

MLS

Who is the "disinterested third party" in a closing?

The escrow agent

Escrow agents are also known as a

Disinterested third party

After the borrower and the property have been qualified to the lender's satisfaction and while the preliminary title report is being researched and prepared, what happens?

The escrow process goes into full swing

RESPA does not apply to which of the following?

Seller-financed loan

Money that the buyer or seller needs to pay at closing is called what?

Debit

What form does TRID require to be used for itemizing closing costs?

Closing Disclosure form

The buyer's primary function at closing is to

Pay the purchase price for the property

Which of the following tasks are NOT part of the actual closing?

The tile search is completed

All real estate sales must be reported to the Internal Revenue Service after closing using a

Form 1099

Which of the following documents is not normally completed at closing but is mailed to the buyer at a later date?

The owner's title insurance policy

Under FIRPTA requirements, what must the seller deliver to the buyer?

A FIRPTA Certificate

If the owner has satisfied any liens on the property, what proof must the owner provide?

Certification of Lien Satisfaction

What is the Closing Disclosure form used for?

To disclose settlement costs to the buyer

The liability for withholding estimated taxes equal to 10% of the sale price in the sale of a property owned by a foreigner is shared by

buyer and broker

The real estate transfer tax is also known as

revenue stamps

Which of the following documents are specifically required by Indiana

All of the above

The most important document at closing is the

deed

What document clarifies that the signatures of Robert Davis, Robert J. Davis, and Bob Davis are one and the same person?

Robert's Name Affidavit

Which property is exempt from FIRPTA?

A condominium purchased for $299,000 and used as a buyer's personal residence

Which of the following statements best defines what is included in a Closing Disclosure?

A Closing Disclosure details all financial particulars of a transaction

Which of the following statement is TRUE?

If the creditor provides a corrected disclosure, it may also be required to provide the consumer with an additional three-business-day writing period prior to consummation

Which of the following statements best describes the term "consummation" as defined under Regulation Z?

The time that a consumer becomes contractually obligated on a credit transaction

A mortgage Loan Estimate must be

in writing and contain the information prescribed by the TRID rule

For purposes of the TRID rule, a business day is a

day on which the creditor's office are open to the public for carrying out substantially all of its business functions

RESPA is administered by the

Consumer Financial Protection Bureau

Which pages of the Closing Disclosure will look the same regardless of the loan type the consumer is getting?

Pages 2 and 3

From the seller's point of view, what do credits represent?

More money at closing

On the comparison chart of closing statement items, how is a home warranty plan credited or debited?

Seller debit