real estate practice #2

Gap loans are also known as:

Both A & B (Swing loans and Bridge loans)

Factors affecting the listing price include:

All of the above (Supply and demand, urgency of the sale, and property condition)

According to the Real Estate Law, salespersons can receive commissions directly from a property seller.

False – Salespersons must be paid by their employing broker, not directly by the seller.

When a loan applicant is rejected based on the racial make-up of the neighborhood where his secured property is located, it is an illegal example of:

Redlining

A good listing interview should always:

Be personalized according to the property and the client's needs

Market surveys demonstrate that people over 50-years-old prefer using which medium to search for real estate:

Classified ads

The easiest way to obtain a property profile is through:

Title companies

The practice of making false statements about a property in order to lower its value and increase the buyer's profit is called:

Blockbusting

All of the following are ways that staging can improve a home's attractiveness for potential buyers, EXCEPT:

Increasing insurance coverage

An offer must be in writing, but an acceptance can be purely verbal.

False – Both the offer and acceptance must be in writing to be legally binding (Statute of Frauds).

A lease for 48 months is considered an:

Estate for years

Laws against "spam" refer to:

Unsolicited e-mails

The hybrid loan is a combination of a fixed-rate loan and a(n):

Adjustable-rate loan

With an open listing, the broker will receive a commission only if he:

Is the procuring cause of the sale

If an advertisement does not contain the ____________ of the broker, it is termed a "blind ad," which is illegal.

Name and phone number

How would you describe Implicit Bias to other licensees?

Automatic or subconscious beliefs

Market allocation, which is prohibited, occurs when an agent agrees:

Both A & B (Not to sell in a particular area, OR not to sell to customers in a particular area)

The great majority of real estate sales are now initiated through research done using:

The Internet

What would be the least likely example of proof for an Explicit Bias claim?

Unspoken thoughts

The CMA should include all eligible comparable properties in a neighborhood sold during:

The previous six months

When choosing an advertising medium to use, an agent should consider which of the following factors:

All of the above (Target audience, the messaging, and the available budget)

At first, the Internet was viewed by real estate professionals as a threat to their business.

True

A licensed salesperson under a broker usually is acting as a(n):

Independent contractor

The Unruh Act applies to:

Business establishments

The provision which protects the broker's right to a commission if a sale closes after the listing expires:

Safety clause

An agent can have the following type(s) of agency relationships with his client:

All of the above (Buyer agency, dual agency, and seller agency)

Which of the following indicates that a licensed real estate agent would be categorized as an independent contractor:

Compensation is based on commissions

The following factors could be weighed in the calculation of a borrower's FICO score, EXCEPT:

Borrower's ethnic group

The Federal Reserve can influence the cash flow into the real estate market by raising or lowering the:

Discount rate

A loan which covers several properties is called a:

Blanket loan

The reason many listings are not renewed after expiring is poor communication between broker and clients.

True

Advertising done for properties similar to a client's property is likely to:

Also attract potential purchasers to the client's property

Because of the Do-Not-Call registry, follow-up phone calls to people who attend an open house should only be made after obtaining their:

Written consent to be called

What type of ad does not clearly identify the agent?

Blind ad

Most listing agreements should be placed with the MLS within:

48 hours

An agent can represent both buyer and seller in a dual agency if he has:

Written consent from both seller and buyer

The Fair Employment and Housing Act, a state law prohibiting discrimination in the sale of a residential property, is also called the:

Rumford Act

For an offer to be legally valid, it should:

All of the above (Be complete, state a closing date, and contain a price)

Liquidated damages is the agreed-upon amount of money to be paid in case one party decides to cancel the sale.

True

Another name for the Good Faith Deposit is the:

Initial deposit

In which type of listing does the seller pay a commission only if the broker is the procuring cause of the sale:

Open listing

It is advisable that soon after the listing period begins, the broker should send the owner a(n):

Customized thank you letter

The parts of an offer that the agent should oversee are the:

All of the above (Property description, payment method, and special contingencies)

Listing agreements should be submitted to the MLS within _____ of being signed by the parties.

Two days

The _______ is the kind of listing in which the agent receives the excess if the property sells for more than the listed price.

Net listing

A real estate agent acting as a neutral middleman between buyer and seller, and not providing any further services, is called a:

Finder

An agent's disclosure to a buyer regarding the public availability of a sex offenders' database is required under:

Megan's Law

Penalties for violation of the Sherman Anti-Trust Act include:

Both A & C (A fine up to $1 million AND imprisonment for up to 10 years)

What does a seller give the buyer in a listing agreement?

Representations

Which investment return category provides owners with lowest cash down options?

Leverage

Regarding standard policy title insurance, which of the following is FALSE:

Standard policy title insurance covers against unrecorded defects

Homeowners are charged property taxes:

Bi-annually

On the seller's statement, payments by the seller include:

All of the above (Outstanding loan balance plus interest, selling commission, and seller's share of escrow fees)

The Veterans Administration issues VA loans itself while not guaranteeing any portion of the loan.

False – The VA guarantees a portion of the loan but does not issue them directly; private lenders provide the loans.

Under the CAN-SPAM Act of 2003, which agency is in charge of enforcement for agents who violated spam laws?

Federal Trade Commission

Which of the following are types of property manager:

Both A & B (Individual and Residential)

A home will be considered a person's "primary residence" if it is:

The person's main residence

The database which enables brokers to search an almost unlimited inventory of listings is:

The Multiple Listing Service (MLS)

Brokers can obtain access to the property of a seller through the use of:

Keyboxes

There is at least one main escrow officer or escrow agent assigned to each transaction.

True

While showing a property to a client, an agent should:

Anticipate any objections from the client while trying to overcome them

When a broker receives a good faith deposit, she has three days to deposit it:

Any of the above (With the principal, into a neutral account, or into the broker's trust account)

The offer to purchase is sometimes called a:

Deposit receipt

If the expiration date for an offer passes without an acceptance by the seller, the offer:

Can be canceled

A loan which is recorded on a property after the first loan is recorded is also called a:

Junior trust deed

In order for a REIT to invest in the real estate market, the REIT is required to have:

At least 100 investors, with 90 percent of the REIT's profit distributed annually to them

The advantage(s) of conventional loans compared to government-backed loans include:

Both A & C (Less requirements AND less processing time)

Which of the following is NOT one of the "C's" which lenders use to screen borrowers:

Contractual

The type of lease agreement when a tenant continues to live in a property well after the signed lease term has expired is:

Estate at sufferance

Which action usually happens first during the eviction process?

Three-day notice to pay or quit

An offer with no conditions attached is called a clean offer.

True

If brokers have a dispute regarding commissions, the matter is settled by a:

Labor commissioner

All of the following are signs that a property owner is a likely prospect to sell his property, EXCEPT:

Family vacation

Which of the following qualifies as maintenance, rather than home improvements:

Cleaning drapes

The federal FIRPTA law requires a buyer who is buying a property from a foreigner to withhold ____ of the value of the transaction.

15%

Recurring costs to the buyer include all of the following, EXCEPT:

Loan origination fees

The gain from the sale of real property by a single person that is excluded from taxes is:

$250,000

Which of the following is a correct statement about marketing plans:

An agent's marketing plan presentation should explain how advertising will be used to sell the property

Personal advertising can be in the form of a:

Both A & C (Magnetic car sign AND a CD-Rom in the shape of a business card)

The most common lease agreement offered by large apartment buildings is:

Estate for years

("#Geographical farming," in the context of the real estate business, means:

Targeting prospective clients in a particular geographical area

Depreciable basis relates to the value of improvements made to the land.

True

Body language sign(s) indicating that a client is interested in the agent's sales presentation include:

Both A & B (Leaning forward AND picking up an agreement form and starting to read it)

The rules of agency apply to the relationships between:

Brokers and clients

Depreciable basis is used to describe:

Building improvements

The Comparative Market Analysis (CMA) provides the data used by the agent to:

Establish the property's listing price

A signed listing agreement is the equivalent of a ____________ between agency and seller:

Signed contract

Type(s) of newspaper advertising include:

Classified

A key overnight lending rate that helps establish a starting point for many other types of short-term mortgage and consumer loan rates is called:

Fed Funds Rate

It is acceptable to make door-to-door prospecting calls after 10pm.

False

Most real estate advertising budgets would allocate the largest amount of advertising dollars for:

Online advertising

The legal requirements for a valid escrow include:

All of the above (Sales agreement between buyer and seller, conditional delivery of funds, and conditional delivery of documents)

When answering phone inquiries about an advertised property, an agent should have a "backup property" in mind, which is also called a(n):

Switch property

The largest age group in the nation includes many people who have been involved in the property market for several decades, called the:

Baby Boomers

The Real Estate Law states that an unlicensed person who advertises himself to be a real estate licensee can be:

Both A & B (Fined up to $20,000 AND imprisoned up to six months)

An agent can have the following types of agency relationships:

All of the above (Buyer's Agency, Seller's Agency, and Dual Agency)

A good way for an agent to overcome an objection about a property from a prospective buyer is:

For the agent to bring up the objection first

An assumptive close method can be used if the client is doing the following:

All of the above (Affirming what the agent is saying, asking questions about the price, and asking about the possession period)

What is the number one cause of personal bankruptcy filings in America?

Medical bills

When meeting a client for the first time, an agent should try to schedule the meeting at:

The agent's offi