License laws are the best guides for what is honest and right in real estate practice
False
The most successful real estate agents tend to be "hard sell.
False
Nonverbal communication is rarely more important that what a person says.
False
The use of jargon should be avoided when communicating with customers.
True
The three types of knowledge that sales associates need to possess are technical, marketing, and product.
True
Learning to prepare a comparative market analysis is technical knowledge.
True
A sales associate's goals should be written, measurable, attainable, and flexible, and they should be tied to deadlines.
True
Goal setting should begin with a short
term view: the accomplishments the sales associate aspires to achieve within the next few months.-False
In striving for success as a real estate sales associate, it is not essential to schedule time for family, recreation, exercise, and relaxation.
False
A sales associate who writes a goal of "make as many sales this month as possible" has met the requirements of goal
setting.-False
Unlicensed personal assistants may be classified as independent contractors, as long as they are paid by commission rather than a salary.
False
An unlicensed personal assistant may not negotiate or agree to any commission split or referral fee on behalf of a licensee.
True
What is FALSE about an unlicensed personal assistant who works for a sales associate?
The answer is assistants rarely help increase the income of the sales associate enough to cover the assistant's compensation. Licensees must understand the liabilities involved with the employment of a personal assistant. This includes accidents, license
A sales associate can improve written communication skills by
attending a community college course on writing.
A sales associate hires an unlicensed personal assistant for $7 per hour. The unlicensed assistant may NOT
show a buyer several listed properties, provide complete information, and help the buyer write the offer
When a sales associate pyramids his fingers during a meeting, the customer is likely to perceive that the sales associate is
acting in a superior way
A new sales associate gets a call from a property owner who wants to list her home. The associate is uncertain about how to do a CMA and how to complete the necessary forms. Based on this information, the associate lacks
technical knowledge
Sales associates should make a log of daily activities and
spend more time on Section A (Direct $).
When making a to
do list for the day, a sales associate should NOT-save the least pleasant tasks for after lunch.
Guilty feelings, discontent, and burnout are likely to result from
failing to schedule time off for family, recreation, and exercise.
A sales associate's goal is to make $58,000 in gross collected commissions next year. He feels that his listings should contribute about 50% of the required income. The average commission per transaction in his office is $1,200, and about two
thirds of his listings are expected to sell. He gets about three listings in five listing presentations. Approximately how many presentations must he make monthly to stay on target?-The answer is 5. Solution: $58,000 � .50 = $29,000 from listings; $29,000
A prospective buyer calls a real estate company to speak with a listing agent. The agent's secretary tells him, "She is on the caravan." Puzzled, the buyer hangs up with thoughts of the desert. This expression is an example of
jargon.
Setting and meeting goals does NOT involve
starting with short-range increments.
A productive sales associate should NOT
work with unqualified buyers.
Which is LEAST likely to be one of a sales associate's five year goals?
Obtaining names of customers who are likely to list their homes
An effective method of finding out where time is wasted in a daily schedule is to
make a time log of activities.
A customer who observes a sales associate covering his mouth while giving a listing presentation most likely would perceive that the sales associate
may not be speaking honestly.
To make the best impression, a sales associate would NOT
fold his arms across the chest
A sales associate works nine hours every day but Sunday. Last year he made $68,000. What is his gross hourly rate, assuming he worked 50 weeks?
$25.19
A sales associate needs to earn $40,000. If expenses such as Social Security, Medicare, and operating expenses average 35% of gross income, what should the sales associate's goal be for gross income?
$61,538. The $40,000 required income is equal to 65% (100% - 35%) of the gross income. Divide $40,000 by .65 to find the necessary gross income.
A sales associate's goal is "to get as many listings as I can next year." What is true about her goal?
It is not measurable.
A sales associate wants to have $50,000 in cash by the end of five years. Currently, she has just enough cash available for her living expenses. How much cash should Cindy have by the end of year three to be on target to reach her goal?
$30,000
The principal drawback of a farm is
you may have to work for a long period before any returns are realized.
The three keys to prospecting success are
numbers, consistency, and organization.
A sales associate who has limited time should NOT try to get a listing where the
sellers don't need to sell.
A sales associate is trying to list an FSBO house valued at $250,000 with a $220,000 mortgage. The seller says, "Your commission is too high!" The sales associate says, "But our listing commission is only 6%!" What is the commission as a percent of the se
50
It is more likely that a seller will list if she
does not like meeting and negotiating with people.
Direct mail is NOT usually a good idea for prospecting expired listings because
by the time it gets there, a motivated seller has already listed.
What is the most effective way to get an FSBO listing?
Visit
The principal reason a listing expires is
unrealistic price.
When using direct mail as a prospecting tool for FSBOs, the mailing
should be followed with a phone call or a visit.
What type of prospecting is direct mail?
Passive
Which is NOT a prospecting source to find listings?
Buyer seminars
The best source for finding expired listings is through
multiple-listing service.
The best listing source for new associates is
sphere of influence.
What is NOT a type of income transaction that can reasonably result from contacting a For Rent by Owner (FRBO)?
Appraisal
Which is NOT an important characteristic of a good blog post?
Maximum 140 text characters
A neighborhood has 480 homes. Last year, 69 homes were listed and 60 were sold. What is the turnover rate?
12.5%
A listing farm should NOT have what characteristic?
Highly desirable area with low turnover
The most popular social media site is
Facebook.
What must be consulted before making telephone canvassing calls?
The National Do Not Call Registry
Finding new FSBOs in the classifieds is easier if the prospect cards are arranged by
telephone numbers.
You are preparing a CMA and want to be certain that it reflects comparable sales of properties sold directly by owners. The best place to find the information is in
either the clerk's office or the tax appraiser's office.
Which is correct if a broker charges a $400 fee for preparing an appraisal that will not be used in a federally related transaction?
The broker must follow the Uniform Standards of Professional Appraisal Practice.
A comparative market analysis would be LEAST effective when trying to establish value for a
public school property.
Which is NOT a condition that a licensee must meet when selecting comparable properties using the comparable sales approach to value?
Same floor plan
A home has dimensions of 35 feet by 57 feet that include an attached 24
foot by 22-foot garage and a 200-square-foot screen porch. How many square feet of gross living area does the home have?-1,267
The comparable sales approach to value is based primarily on what principle of valuation?
Substitution
When a man added a family room to his house, which was already too large for the area, he did not see the value increase as much as the cost of the addition. What principle was demonstrated?
Law of diminishing returns
Of all the factors that influence market value, the most important is the
highest and best use.
A mansion in a neighborhood of smaller, average homes would violate the principle of
conformity.
The ideal kitchen service triangle should be
from 12 to 22 feet.
In a neighborhood of three
bedroom, two-bath homes, an owner added a second bathroom at a cost of $1,600. An appraiser adjusted the value of the home upward by $2,000 due to the improvement. This is an example of the principle of-contribution.
You are estimating the value of a vacant lot zoned for single
family residence use. One year ago, a comparable lot sold for $25,000. Your analysis of market conditions and property characteristics produced the following needed adjustments: subject lot, $2,000 inferior; subject site location, $3,000 superior. These a
A married couple lives in a 2,100
square-foot home. Home sizes in the area range from 1,200 square feet to 2,100 square feet. A sales associate found seven comparable sales from different sized homes. He calculated the sales price per square foot for each home, averaged all the prices, an
Which is designed to promote the principle of conformity to maintain and enhance value in a subdivision?
Restrictive covenants
A woman is preparing a CMA for property located in Arbor Hills. She finds three homes that sold recently: a four
bedroom home with a pool that sold for $90,000; a three-bedroom home with no pool that sold for $81,000; and a three-bedroom home with a pool that sold for $85,000. Based solely on this information, what does a swimming pool contribute to value in Arbor H
An appraisal of real property is
an estimate of its value.
The most profitable legally and physically permitted use of real property is called its
highest and best use.
Which is NOT important in comparing properties using the comparable sales approach?
Original cost of improvements
When the term recently is used to describe a comparable sale, it is generally understood to mean that the property sold within the past how many months?
12
When listing a property in the ordinary course of business, any active real estate licensee in Florida is authorized to prepare an
opinion of value.
Where is the best place in the house to make the listing presentation?
At the dining room table
The reason for eliminating cents and rounding to the nearest $100 on the Seller's Net Proceeds Form is to
accomplish all of these.
A broker is making a listing presentation to an FSBO. She completes the CMA and gets the sellers to accept the net amount on the Seller's Net Proceeds Form. She should be able to take the listing now primarily because
the commission is included on the Seller's Net Proceeds Form, and the sellers have agreed to the amounts shown.
On the Seller's Net Proceeds Form, which proration should NOT be included?
Insurance
What is the proper order for a complete listing presentation?
Building rapport with the sellers, CMA, sellers' net, reasons for listing with your brokerage firm, ask for the order
Which part of the CMA would indicate overpriced listings?
Expired listings
What are the total prorations, rounded to the nearest $100? Will the prorations be added or subtracted from the equity?
$1,700 subtracted
The preferable approach to setting the listing price is to
go over the CMA carefully and help the seller to arrive at an appropriate range of values.
The reason most FSBOs won't be able to save the commission is that
the prospective buyer is buying direct to save the same commission.
If the sellers want to list the property before you have completed the listing presentation, you should
take the listing.
What is the seller's equity, rounded to the nearest $100?
$28,900
The reason it is not practical for a licensee to determine the exact prorations on the Seller's Net Proceeds Form when taking a listing is that
the exact closing date is unknown.
What are the seller's net proceeds, rounded to the nearest $100?
16,300
Which is NOT one of the three major problems in showing the property a FSBO should be told to expect?
The fact is that most new buyers will need financing
The components of the seller's equity section of the Seller's Net Proceeds Form include
sales price, mortgages, and seller's equity.
A broker is compiling a Seller's Net Proceeds Form for a seller. The figures she gathers are as follows:
...
What are the total expenses, rounded to the next highest $100?
$10,900. $8,925.00 ($127,500 � .07) brokerage fee + $780 title insurance + $300 termite inspection + $892.50 documentary stamps ($127,500 � 100 � .70) = $10,897.50 total; round to $10,900.
When presenting a CMA, a licensee should NOT
recommend a price for the property before going over the data in the CMA.
When explaining the current market conditions to the seller, one piece of information that would NOT normally be included is the
aggregate square footage of all listed homes.
The final step in the listing presentation is
Asking for the order
When preparing the interest proration on a Seller's Net Proceeds Form, the best policy is to enter
a full month of interest.
A seller lists property with a multimillion-dollar broker. The broker's agreement calls for him to enter the listing into the MLS within three working days. On the second day, the broker shows the property to a prospective buyer, who loves it. The buyer i
-may be liable to the seller for violating duties required by the
If sellers, when listing the property, offer to leave a washer/dryer combination, the sales associate should
-suggest it not be included until an offer is received.
A broker is talking with a man about listing his home. If the man says that he is ready to list but has two people he wants to exclude from the listing for three weeks, the broker should
-have the man sign an exclusive-right-of-sale listing with an addendum that excludes the two prospective buyers.
A broker lists a large townhome. The broker has to give the seller a signed copy of the agreement
-within 24 hours.
Two problems faced by a licensee who has taken an exclusive
-agency listing result from-an owner's sign on the property and the owner advertising a different price.
If an owner reserves the right to sell the property himself, but allows many brokers to work simultaneously, he has given the brokers
-open listings.
The maximum period between a listing sales associate's calls to the seller should be
-7 days.
An open listing
-may be terminated at will.
What clause in a listing contract contains a promise by the owner certifying that all the information related to the property is true and accurate?
Warranty of owner
The parties to a listing agreement are the
-seller and broker
A seller refuses to allow the listing broker to split commissions with buyers' brokers, transaction brokers, or nonrepresentation brokers. Based on this information, which statement is TRUE?
The broker may take the listing but may not enter it in the MLS.
An open listing is created by
-negotiation.
The section of the Florida REALTORS� listing agreement titled "Cooperation and Compensation with Other Brokers" indicates that the
-broker's policy is to cooperate with other brokers except when it would not be in the seller's best interests.
The legal description entered into the listing agreement and into MLS
-should be taken from the owners' deed or the public records.
On June 18, a broker listed a couple's house for six months. On August 16, the couple terminated the listing, paying the broker a cancellation fee of $250. In September, the couple listed their house with another realty company. They accepted a contract i
-is liable to the broker for the full commission.
A broker just listed a house for six months. The listing will automatically renew for an additional three months unless canceled in writing by either party. This type of agreement
-is a violation of the license law.
The Florida REALTORS� listing agreement has a dispute resolution clause that
-allows the broker, the sales associate, and the seller to settle disputes by binding arbitration.
What type of listing is used when an owner selects one brokerage firm to sell his property but reserves the right to sell the property personally and not pay a commission?
Exclusive-agency
A seller tells a sales associate that she intends to take the ceiling fan when she moves, so he should be sure the listing information shows that it is not part of the sale. In this case, what should the sales associate do?
-Tell the seller to remove the fan before the property is shown.
What addendum to a listing contract states that the owner has a duty to disclose any facts materially affecting the property's value?
Latent defects
A Priority 1 buyer is one who
-has an immediate need to buy.
How does a buyer benefit by agreeing to pay a brokerage commission to her broker?
The broker can show the buyer unlisted properties such as FSBOs and foreclosures.
One way to find many buyers at one time is
-conducting buyer seminars.
Before a buyer begins seeing properties, the sales associate should NOT-
ask the buyer about his feelings about having minorities living in the neighborhood
A sales associate asks a seller to vacate the property while it is being shown because the-
buyer can take emotional possession of the property during the showing.
Generally, the only features a sales associate should discuss with a buyer on the way to viewing a property are the
-negative features, if any.
When making an appointment with a seller to show her property, a sales associate should NOT
-fail to call if it looks like the visit will be much later than the time specified.
The safest way for a sales associate to determine whether a buyer is qualified is to use
-the services of a lender to do it.
A sales associate's statement that "the house is built of brick" should be followed immediately by the
-bridge.
Which is FALSE about an IDX?
It is a website that allows licensees to post a daily blog.
Because of high prices, high property taxes, and high insurance rates, the BEST buyer farms are likely to be in areas-of owner
occupants who are ready to trade up to a larger house.
Before showing properties to a buyer, a sales associate should NOT
-find out what church they would like to live near.
Normally, the prospective buyer calling about a property with a For Sale sign wants information from the sales associate about the property's
-price.
For a buyer to decide to work with a licensee, the MOST important factor probably is the licensee's
-product knowledge.
A sales associate's primary objective when answering a sign call or an ad call is to
-make an appointment.
According to the Florida REALTORS� Exclusive Buyer Brokerage Agreement, if there is a dispute between the buyer and the broker that they are unable to resolve, the parties
-must first submit to mediation, and if that is not successful, to arbitration.
A broker entered into an agreement with a prospective buyer, using the Florida REALTORS� Exclusive Buyer Brokerage Agreement. The broker showed the buyer a property, but the buyer said he really didn't care for it. After their agreement expired, the buyer
According to the terms of the contract, the first broker is entitled to the commission as the procuring cause of the sale.
Most brokers recommend showing the best house
-early in the tour
A fallback list consists of
-properties similar to those advertised.
If a property is particularly attractive from the front, the BEST way to show it is by
-parking at the street.
A sales associate wrote a special clause into paragraph 20 of the Florida REALTORS�/Florida Bar Residential Contract for Sale and Purchase that contradicted one of the preprinted clauses in Paragraph 4. The special clause as written
-valid and binding.preprinted clause.
A prospective buyer signs a sale and purchase contract form offering to pay the seller $175,000. The seller counteroffers for the full list price of $190,000. The buyer refuses the counteroffer. Later, the seller signs the original $175,000 offer. Which i
-No enforceable contract exists because the counteroffer terminated the original offer.
Sales tax liability is due on a real estate purchase contract when personal property is
-itemized and a separate value for each item is placed in the contract.
The Florida REALTORS�/Florida Bar Residential Contract for Sale and Purchase requires that the initial deposit is to be
-held in escrow subject to collection
What is FALSE about a valid real estate sales contract?
It requires witnessing.
If the buyer asks to have occupancy of a house before closing, the BEST suggestion from the sales associate to the seller would be
-"Don't let them move in if you can avoid it.
When a licensee verifies contract information, one of the preferred sources regarding the owner/seller and the legal description is
-a previous title insurance policy.
Under the Florida REALTORS�/Florida Bar Residential Contract for Sale and Purchase, the party responsible for a property tax increase because of a change in ownership is the.
-buyer
Which statement is FALSE regarding a violation of the statute of frauds?
It carries with it prescribed times for enforcement.
A man purchases an option on property. He requires that the option contract be acknowledged and recorded. The seller asks his agent about the best way to proceed. How should the agent answer?
The option should include a defeasance clause stating that the recorded option will automatically cease to be a lien on the property upon expiration of the exercise date.
An option contract is
-unilateral and binds the optionor.
A man is trying to close on his new home. The required closing date was August 26. The previous day, a hurricane in the Caribbean caused insurance underwriters to suspend writing new policies. If the man fails to close on the 26th, what effect will this h
He has three days to close after the suspension is lifted.
The minimum description requirement in a contract for a platted subdivision does NOT include the
-number of acres in the parcel.
The Florida REALTORS�/Florida Bar Residential Contract for Sale and Purchase is LEAST suitable for transactions involving the sale of a
-business.
A sales associate drafts a six month option agreement for a buyer on a commercial property. The buyer pays $2,000 option money. The sales associate writes, "Terms of owner financing will be negotiated when this option is exercised." When the buyer later e
If the buyer sues, the court probably will decide that the option contract is not enforceable because it is too vague.
A good practice when writing an offer to purchase a house owned separately by the wife is to
-have both the wife and her spouse sign the contract.
When "time is of the essence," failure of any party to perform within established time limits can result in automatic
-default by the tardy party.
What is the classic test of the sufficiency of a legal description?
A surveyor can locate the property by reference to the description.
Your neighbor promises to paint your house while you are on vacation. You tell the neighbor you would like him to paint it white. At that point, you and your neighbor have
-no contractual agreement.
The effective date of the Florida REALTORS�/Florida Bar contract is the date
-that the most recent of the buyer or the seller signs the contract and communicates it to the other.
A sales associate is preparing a buyer's cost disclosure statement. Because he wants to protect himself from later problems, he should
-get the information from the lender's Good Faith Estimate
The buyers have been prequalified for a $160,000 mortgage. If the buyers have enough cash for a 20% down payment, they can get a house priced at
-200,000.
When presenting an offer to the sellers, it is helpful to
-get them to like the buyers.
When presenting an offer, a sales associate should NOT
-give the seller the offer with the original signatures.
According to the text, the sales associate who is presenting the offer should normally give copies of the offer
-only after summarizing the important parts of the offer.
If you are the listing sales associate and there are multiple offers to be presented, from both your company and other companies, you should
-get your broker involved.
When buyers just want to "sleep on the decision," and you want them to make an offer on a home they love, the best way to help them make the decision is to
-prepare the paperwork, and then explain the sales agreement and the offer process.
When the seller wants to make a counteroffer
-the sales associate should prepare a counteroffer form; the seller should sign the original offer and the counteroffer.
Principal and interest on a new loan is $1,564.90, annual taxes are $3,575, and insurance is $1,289 annually. What is the monthly payment?
$1,970.23
If you have an offer to present to a seller, and you are not the listing sales associate, you should
-excuse yourself after making the presentation, making sure the sellers have no further questions for you.
A $127,000, 30 year fixed rate mortgage with a 5.5% rate has a mortgage payment factor of .0056779. Annual payments for property taxes are $2,400. The annual insurance premium is $600. What will be the monthly PITI payments?-
$971.09 Multiply the mortgage by the factor, and then add 1/12 of the taxes and insurance. Solution: $127,000 � .0056779 = $721.09; $721.09 + $200 taxes ($2,400 � 12) + $50 insurance ($600 � 12) = $971.09.
Popular literature shows dramatic interest savings on a 15 year loan versus a 30 year loan. What is TRUE about most of these analyses?-
Amounts saved usually are less because opportunity costs of the additional payments required are not considered.
Of the recognized indexes used on ARM loans, which is MOST volatile?-
Prime rate charged by money center banks
The FHA adjustable rate mortgage limits increases on interest rates to
-1% annually.
When compared with a 30 year mortgage, a 15 year mortgage has-
slightly lower interest rates
ARM loans are more popular
-when interest rates are low.
What is the maximum amount of a buyer's closing costs that the seller can pay under conventional lending standards when the borrower is making a 5% down payment?-
3% of the purchase price
Total interest rate increases on an FHA adjustable-rate loan may NOT exceed what percentage over the life of the loan?
5%
Disclosure of the annual percentage rate on a mortgage loan is required by the-
Truth in Lending Act (TILA).
The interest rate that major banks charge to MOST favored customers and that is commonly used for home equity loans is the-
prime rate.
The component of an adjustable rate mortgage that does NOT usually change is the-
margin
A man purchased a new home at the FHA appraisal amount of $100,000 and financed it with an FHA mortgage loan. To what amount must he reduce the outstanding loan balance before he no longer has to pay the 0.5% annual mortgage insurance premium?-
$78,000
Which is TRUE about a loan's effective interest rate?-
Each point equals a one Origination fees should be added to the points charged in making the calculation
Disclosure of the annual percentage rate of interest need NOT-
be given to a prospective buyer of a single-family home who is paying all cash.
A man is shopping for a new loan and has narrowed the field to two choices. One is a 30 year fixed rate loan that has principal and interest payments of $940 per month. The other is a biweekly mortgage. What is the difference in the annual payments based
$940. The biweekly mortgage takes the normal payment, divides it in half, and requires the borrower to pay every other week (26 times per year). So, $940 � 2 = $470. $470 � 26 = $12,220. The normal loan would have 12 payments at $940 ($11,280). The differ
The MOST common type of real estate mortgage is the-
30 year fixed rate mortgage
A woman is shopping for a new $150,000 mortgage. She expects to live in her new home for about four years. She can get a 30 year, 4.75% fixed-rate mortgage with principal and interest payments of $1,074.62 with no points. She can also get a 4.25% mortgage
87.6 Divide the amount paid in points by the difference in payments. That will give the payback period. $150,000 � .03 = $4,500 in points paid. $4,500 � ($1,074.62 minus $1,023.26) = 87.6 months payback.
On January 10, the one year Treasury bill index was 4%. A mortgage company used that index to write a new one year adjustable rate with a 2.5% margin. What is the calculated interest rate?-6.5%
6.5%
What is the index measuring the base interest rate paid on deposits between banks in the Eurodollar market that is used in many adjustable-rate mortgages?-
MTA
Which is FALSE about the annual percentage rate (APR) disclosure?-
The lender has a maximum of three days after loan application to make the disclosure.
A $127,000, 30 year fixed rate mortgage with a 5.5% rate has a mortgage payment factor of .0056779. Annual payments for property taxes are $2,400. The annual insurance premium is $600. What will be the monthly PITI payments?-
$721.09
Qualifying the buyer has to do with income and assets. Qualifying the property has to do with the-
appraisal, survey, and title report.
When a loan officer evaluates a credit report, the MOST important part of the report is the-history.
payment
A man has a FICO credit score of 725. He pays an additional $1,000 down on his installment debt. His FICO score will MOST likely-
increase because he has less debt.
If a cloud on title cannot be easily removed by ordinary means, a court case is often the result. The legal action is called a suit-.
to quiet title
A woman earns $1,000 per week. Based on Fannie Mae's 28% housing expense ratio guidelines, for what monthly payment would she qualify?-
$1,213.33. Multiply the weekly payment by 52, and then divide by 12 months. Solve by multiplying the monthly income by the housing expense ratio as follows: $1,000 � 52 = $52,000. $52,000 � 12 months = $4,333.33 per month. $4,333.33 � .28 = $1,213.33 allo
Which is NOT one of the basic loan processing procedures?-.
use of an appraisal management company. The four basic loan processing procedures are: determining a borrower's ability to repay the loan; estimating the value of the property being pledged as collateral to guarantee this repayment; researching and analyz
A title policy offering coverage over and above the standard coverage is which type of policy?-
ALTA
A lender, interested in evaluating an applicant's willingness to pay, reviews-
the credit report.
The components that together make a title report complete are a physical inspection of the collateral property, a search of the public records, and
-a survey of the property.
A second job will NOT be counted as a source of income on a loan application if it-
is temporary.
The employment verification is a NOT a check on the applicant's-
assets.
Which action will NOT negatively affect a FICO score?-
Paying down debt
Bonuses are acceptable as income on a loan application, provided that they.
-are regular occurrences
What is given greatest weight in calculating the FICO credit score?-
Payment history, with higher weight for recent history
Because of the financial crisis, lender standards have become more-
strict.
Which federal law requires fair consideration of loan applications from women, minority races, part-time employees, and others who may have been discriminated against in the past?-
Equal Credit Opportunity Act
The maximum fine for each violation that against a Florida mortgage loan originator or mortgage broker under Chapter 494 is-
$25,000.
The most common credit scoring used by lenders today was developed by
-Fair, Isaac & Co.
The primary assurance to the lender if the borrower defaults on the loan is the-
property value.
The guidelines for loan underwriting are tightly structured. The one facet that allows the MOST subjectivity on the part of the lender's evaluation is the-
credit profile
The BEST way for a buyer to determine that the seller has moved out and the property is ready for occupancy is by-
doing a preclosing walk through inspection.
What incorrect entries, if any, are in the borrowers' expenses on page 2, Section L?-
The discount points and origination fees are incorrect.
On what page of the Settlement Statement (HUD1) will the prorations be found?-
1
Contract contingencies should be cleared-.
as soon as possible after the contract has been signed
To expedite a closing, catch errors made in documents, and make the buyers feel more comfortable about documents they must sign, the sales associate should-
get the papers to the parties at least 24 hours in advance of the closing.
What incorrect entries, if any, are in the Sellars' expenses in Section L?-
There are no incorrect entries.
Is the tax proration at lines 107 and 407 correct?-
No, the amount shown on line 107 should be calculated from January 1 through May 14 ($770.96) and be transferred to lines 211 and 511.
When the title closing agent gave the buyer the truth in lending disclosure showing the annual percentage rate was 4.62%, the buyer declared, "Wait, I was told the interest rate was going to be 4.25%. This is wrong!" What is the MOST likely reason for the
While the note rate is probably 4.25%, the inclusion of lender fees such as discount points and origination fees has increased the annual percentage rate
Which items (except subtotals and totals) are incorrect in page 1, Section K?-
Tax proration (line 407) and settlement charges (line 502) are incorrect.
A sales contract required that the buyer give an additional binder within 10 days of the contract date. If the buyer failed to give the additional binder, the-.
buyer has defaulted
What is the correct amount due from the borrower in this transaction (line 303)?-
$14,277.80
What would NOT be given to the title closing agent when the order is given?-
A signed and dated listing agreement
The preclosing walk through inspection is NOT intended to ensure that-
the roof is structurally sound.
A sales associate must give the earnest money deposit to the broker no later than the end of-
the next business day.
What incorrect entries, if any, were made in the general information section of the statement?-
The property address in Section G is incorrect.
A seller told the listing agent that the pool liner was defective. The sales associate disclosed the statement to the buyers. The contract was written reflecting that the buyers would pay for replacing the liner. The sales associate called a pool company
Might have to pay for the liner
What is the correct total of the borrowers' expenses on Page 2, line 1400?-
$7,048.76
How many apartments should be on a show list?-
No more than three of each type
Maintenance on a building that cannot or will not be performed when necessary is which type of maintenance?-
Deferred
Most tenant management problems are related to-maintenance service requests.
maintenance service requests.
A person who provides services that require licensing under the Community Association Management Act must be licensed by the-
Department of Business and Professional Regulation.
Changes and trends in the general business economy fall into three categories seasonal, random, and-
cyclic.
An employee of a property management firm shows prospective tenants many of the duplexes the company manages around the city and writes up leases on the court approved forms. The employee is paid $700 per month plus $50 per signed lease. The employee-
must have a real estate license
Wavelike movements of increasing and decreasing economic prosperity in the general economy usually are called-
cyclic fluctuations.
The annual potential gross income for an apartment property is $291,000, other income is $480 per month, and vacancy and collection losses are 5%. What is the property's effective gross income?-
$282,210. $291,000 potential gross income minus $14,550 (5% � $291,000) vacancy + $5,760 ($480 � 12) other income = $282,210.
Funds set aside to prepare for the eventual replacement of worn out appliances, carpeting, and drapes are called-
reserves for replacements.
Total operating expenses include variable expenses, fixed expenses, and-
reserves for replacement.
Economic changes that recur annually are called-
seasonal variations.
To obtain the best and MOST reliable information about rental rates in a neighborhood, the investor should check-
competing properties.
An apartment property has potential gross income of $155,000, effective gross income of $150,000, operating expenses of $58,000, including reserves for replacement of $2,400, and debt service of $40,800. What is the property's net operating income?-
$92,000. $150,000 effective gross income minus $58,000 operating expenses = $92,000 net operating income.
A salaried, unlicensed manager of a resort condominium in Florida legally may rent individual condominium units if the rental periods do NOT exceed-1 year
...
What is NOT a requirement for a valid lease?-Amount of leasing commissions
...
The type of maintenance aimed at preserving the physical integrity of the premises is
-preventive.
Apartments that are vacant and available for immediate rental are placed on the-
show list.
Another term for before tax cash flow is-
cash throw off.
A problem many investors have with industrial properties is that-
many properties serve special purposes and are difficult to rent once they are vacant.
Which is NOT a category of property maintenance?
-Elective