national and indiana state exam questions

A purchase contract required that the property be free of tenants when the property conveyance occurred. On the day of closing, the tenants were still living in the property. Who is responsible for ensuring that tenants vacated the property prior to closing?

The seller

A real estate broker enters into an agreement to represent a buyer who is seeking a property to purchase, and remains a single agent throughout the transaction. A seller with whom this broker negotiates is this broker's

Customer

An investor has come to the broker because he may be interested in selling one of his residential properties. His family has owned the eight unit building for several years and have kept accurate records of income expenses. The investor brings out a file of lavish improvements that he has completed inside each of the units. In this situation what is most important for the broker to explore before counseling the investors and putting his units on the market?

Explain that he will develop his opinion of valve by using the income approach that the investors may not be able to recover all the costs of his improvements.

A broker has a listing agreement to deliver to his out-of-town to the property to secure the listing. the agreement

may be in electronic format

Working to convince a potential buyer that a single-family house near a university could be converted to student housing. A broker guarantees the buyer a substantial profit. Such a guarantee

Constitutes failure to engage in competent practice under the real estate rules and regulations

A recently reviewed widowed farm owner has called a broker to list a one-acre building site in order to raise money to pay the property taxes. How should the broker proceed.

Contact the municipality to determine if this is possible, and then have a surveyor prepare the description.

A listing broker has recently sold a house to an investor, Prior to making an offer, the investor told the broker he planned to turn the large property into apartments. It was that had many multi-family properties. The buyer has now discovered that the other properties are non-conforming, and that the area is zoned single family. The broker:

Should have advised the buyer to check the zoning regulations in the area before purchasing property.

A real estate professional working with a buyer has disclosed the options for representation under state law but has not signed a buyer representation agreement and considers that buyer a customer. While showing the buyer a property, which of the following statements by the professional could create implied agency in a jurisdiction where the common law of agency prevails?

You should offer $20,000 less than the asking price due to the repairs needed on the property.

A seller is unhappy with the effort being put forth by the listing broker and wishes to terminate the listing and resist with a different broker. How should the broker advise the seller?

Tell the seller to ask the listing broker to agree to terminate the listing. Agency is a bilateral relationship which may be terminated by mutual agreement.

Seller A entered into an option contract with Buyer B. The contract allowed for a price of $200,000 which seller A honor for a 12 month period exclusively for buyer B. This would be an example of:

Unilateral contact in which only Buyer B has made a promise to perform

A licensee representing a seller has which of the following duties.

Advising the seller to obtain advice about material matter beyond the licensee's expertise.

A broker hires an inactive broker to conduct open houses. Which of the following statements about this situation is CORRECT?

The broker may face disciplinary action for incompetent practice.

A property is listed at $450,000, and the prequalified buyer believes no additional financing will be needed. The buyer then notifies the property is encumbered with #30,000 mortgage. The buyer's ahem advises his buyer to assume equity by paying the $30,000 mortgage. The deed to the buyer was exempt and the loan did not fund. When the mortgage debt was not paid, the mortgage was foreclosed. Who is liable for the foreclosure?

Buyer

Which of the following is a feature of a quitclaim deed?

It need not contain warranties.

A broker has listed a property for $225,000. An offer of $210,000 contingent upon inspection comes in the first week and the seller accepts it. Another offer of $205,000 comes in the second week. The seller accepts it as a secondary offer contingent upon the termination of the first offer. The first offeror demands the seller spends $5,000 in repairs before going through with the purchase. The seller may do all of the following except.

Ignore the demand and sell the property to the second offeror

The buyer Gave the broker an earnest money deposit of $5,000. As closing was approaching the buyer discovered he needed $2,000 from the trust account in order to pay a charge card and get his debt-income ratio where it needed to be to obtain the loan. The broker wrote him a check for $2,000 from the trust account. Is this acceptable, and why or why not?

Yes, because this would be permissible with the seller and buyer's written permission.

A potential buyer seems to be very knowledgable about home purchases, and decides not to require an inspection, hoping that the lack of inspection contingency will help to convince the seller that his offer is the best deal. The buyer's broker has noticed a few things that have raised his concerns about the condition of the house. What responsibility, if any, does the buyer's agent have in this situation?

The agent should explain his concerns to the buyer and work to persuade the buyer include an inspection contingency.

An associated licensee has decided to disclose latent defects in properties he lists for the brokerage firm only if a buyer makes a specific inquiry. The broker in charge gas beer discussed this issue with the licensee and does not require any reporting from associated licensees because they are independent contractors. When the licensing board investigates complaints arising from this practice, they are likely to

Share the liability for this licensee's wrongdoing

The current real estate market has been booming for the last 5 years and there is still demand for properties, thought the market has slowed for both rental and sale analysis of the area's job market shows a rise in unemployment and stagnant wages, though living costs are still rising. for the last few years the area has welcomed influx of new residents, but this has almost stopped as job opportunities decline. A real estate broker has been asked by a homeowner whether to sell now or wait until market goes higher in the net year or two. Give the facts, what course of action woulda prudent professional recommend to the seller?

Selling the property now, as the market appears likely to adjusted downwards.

Buyer Jim signs a purchase contract at the asking price with no contingencies and a 30-day closing date as specific by the seller. Seller Tom changes the contract closing date of 40 days and signed the contract. The contract, in its present form, is:

Invalid since the signed documents do not indicate mutually agreed-upon terms.

A real estate brokerage advertises specifically for buyer who wish to purchase using VA Lons. DO these advertisements violate veterans' rights or the advertising rules of the Federal fair housing act?

No, because veterans from all protected classes can qualify for VA loans.

A salesperson represents the seller of a commercial property. The salesperson tells the buyer a new highway exit ramp will be built within six months to give access to the property although that is only one of several possibilities being considered by local planners. The exit ramp is subsequently located elsewhere. Could the salesperson be liable to the buyer for the statement about the ramp?

Yes, the statement was material misrepresentation

The buyer was given a loan estimate at the time of the application for the mortgage and it is now 3 business days away from closing. The appraisal and the closing disclosure have been given to the buyer, The buyers broker meets her client at the property for a walkthrough and to review the documents. Which of the following occurrences will result in the buyer having the right to an additional 3 days to review?

The loan product as changed from a fixed rate to one that is adjustable

Which of the following are most likely to be addressed by building codes?

Construction standards

A real estate broker enters into an agreement to represent a buyer who is seeking a property to purchase, and remains a single agent throughout the transaction. A seller whom this broker negotiates is this brokers

Customer

A licensee is the property manager for a shopping center. The shopping center owner tells the licensee to avoid internet marketing because he distrusts the technology. The licensee discuss this with the owner, but oventually complies. The licenses compliance is due to the duty of

Obedience

A feature of joint tenancy with a survivorship is that

The joint tenants acquire the property free and clear of any liens against the deceased

An appraisal made bu a certified appraiser is required

When the buyer is using an FHA loan to purchase

A statement " A contract for the transfer of an interest in land must be in writing" best defines which of the following real estate concepts?

Statue of frauds

To participate in a referral service, a broker company must

Have a written agreement with the cooperating broker

Jon sells a property for $800,000 and earns 3% commission. Jon obtained the sales for this transaction based on a co-brokerage agreement referral for 50/50 split. Jon works under a managing broker who is owed 40%. How much did Jon's managing broker earn from this transaction?

$4,800

Neighbor A has a property adjoining to neighbor B. Neighbor A has been driving across the yard of neighbor B for the past 8 years to access his property even though there is direct access to his property. The common principle is created:

An easement by prescription

A seller's agent is contacted by a potential buyer whose financial status is questionable. When asked tp write an offer, the agent should

Relay any reservations to the seller

Buyer and seller enter into a contract. The buyer refuses to purchase for a reason not to excused by contingency. Which statement is correct?

The seller has the right to terminate the contract and keep the earnest money deposited.

A buyer is purchasing a bank-owned property. the broker explains the type of deed she will be receiving only promises that the bank has the right to sell the property and that rheumatoid have not encumbered it.

Special warranty

Borrower applied for a loan on the home of their dreams and were approved for very specific terms based on their credit scores and income. At closing, the interest rate had doubled the loan loan documents that were presented for their signatures. The borrowers were told that this was likely to be their only chance to receive any sort of loan and they must sign today. They were told if they did not sign, they would lose the house. This was

Unacceptable because the borrowers were pressured to take the loan.

A broker with a license in inactive status is permitted to do which of the following?

Refer listing to the broker's previous Managing broker for a fee.

A broker listed a home. The listing agreement must be delivered to the owner

Upon signed the agreement

A broker notifies their broker company that they are moving to another firm.

The broker shall turn over tp the broker company any listing obtained.

A licensee representing a seller has which of the following duties?

Advising the seller to obtain advice about material matters beyond the licensee's expertise.

A selling managing broker receives a promissory note as earnest money on an offer. The selling managing broker should

Inform the seller prior to acceptance that the earnest money deposit is other than cash.

The broker company wants to disclose earnest money from their earned money account from transactions that did not close.

Ask for a mutual release from the broker companies

Which of the following inducements is allowed?

Making a donation to the buyer and seller's favorite charity with their knowledge and approval

A licensed broker, acting a a real estate appraiser, accepts and appraisal assignment based on predetermined value. The broker may

Be subject to license revocation or suspension

The proper way for a listing broker company to split commission is to pay

The agreed amount to the selling broker company

In real estate a client is best described as a person who

Entered into an agency relationship with a real estate licensee