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Seller Sally, listed with Broker Larry, sells her home to Buyer Bill for $200,000. Bill is represented by his own buyer's agent. An earnest money check for $2,000 is attached to the contract. After both parties have fully executed the contract, Larry deposits the check into his escrow account, per the contract instructions. Two days later, Larry receives notice that the check is being returned for "insufficient funds." What should Larry do first? correct answers contact Sally immediately and notify her of the bad check
S & T Realty had a listing on a property. After the property sold and closed, P & M Realty asserted its rightful claim to the commission. Which type of listing did P & M Realty have? correct answers open listing
Two brokers get together at a breakfast meeting and decide they will each agree to work in certain geographical areas of the town. What statute has been violated? correct answers Sherman Antitrust Act
The Sherman Antitrust Act prohibits monopolization. Price fixing and market fixing would be two examples of a violation of the Sherman Antitrust Act.
A listing agent is showing a buyer a home. The buyer sees a large crack in the wall that is seeping water. The buyer buys the property and later sues the agent for non-disclosure of a property defect. The agent correct answers is not liable under the doctrine of "caveat emptor"
The agent is under no duty to disclose a patent defect. A latent or hidden defect must be disclosed. The term "caveat emptor" refers to "let the buyer beware," and the buyers should be aware of things they can readily see. Obviously, the sales agent would not want to hide this condition, as that would make the patent defect into a latent defect.
Which term best describes any substance that can cause or aggravate cancer? correct answers carcinogen
The flat or nearly flat land along a river or stream covered by water during a flood is called correct answers flood plain
Which term best describes reducing the degree or intensity of, or eliminating pollution? correct answers abatement
Which document is required by RESPA to illustrate the costs of closing the real estate transaction? correct answers Closing Statement
The term "red flags" used in reference to property condition, refers to correct answers visual signs or indications of a defect in a structure, its major components, or the property itself
Which level of radon is considered the maximum acceptable level? correct answers 4 A seller completes a property disclosure form and states that there are no conditions in the property in need of repair. However, the listing sales agent recognizes the early signs of termite infestation. The listing sales agent should correct answers disclose the condition to the buyer, as this is a patent defect
The sales agent should disclose this condition to the buyer, as this is a PATENT defect and would be discovered by a reasonably thorough inspection. A latent defect is a fault in the property that COULD NOT have been discovered by a reasonably thorough inspection before the sale.
Nick is purchasing a property and asks the real estate agent if the seller has to pay the property taxes for the part of the year when the seller owned it. The agent assures Nick that the seller pays
for up to, and including, the day of title transfer. How will Nick realize payment for the seller's share of the annual property tax? correct answers it will be a credit to the buyer
No money actually changes hands. On a Closing Statement, prorated taxes appear as a credit to the buyer. The buyer will have to pay the tax bill when the time comes but he will bring less money to the closing table because of the credit of the seller's portion of the tax.
Listing agent Dustin holds an open house and puts air fresheners all over the home so the pet odor is not so noticeable. Dustin advertises hard wood floors throughout that are covered by carpet needing to be replaced. Of which hazard should Dustin warn customers of the open house? correct answers biohazard from pet urine
A property owner is involved in litigation which could result in a judgment affecting title to their
property. Because of the time delay between filing a lawsuit and rendering of a final judgment, what action could be taken to protect a claimant's interest? correct answers record a notice of lis pendens
When a suit is filed that affects title to real estate, a special notice, known as a lis pendens (litigation pending) is recorded to protect the claimant's interest
In evaluating the property to be insured and the buyer purchasing the property to determine insurability and premium to be charged, insurance companies often use which of the following? correct answers a CLUE (Comprehensive Loss Underwriting Exchange) report
Home warranty programs, which typically cover such things as plumbing, electrical, heating and air conditioning systems and appliances, are correct answers optional programs purchased by buyers or sellers that include specified coverages, deductibles, limitations and exclusions
In order to ensure that a prospective buyer is provided with information concerning structural, mechanical and other property conditions so they can make informed decisions, licensees representing sellers should correct answers have a seller complete a property condition disclosure
form to accurately and honestly disclose what they know about the property What was the primary reason asbestos was used prior to our knowledge of the health risks? correct answers fire resistance
Controls on the development of areas designated as wetlands have become the subject of recent regulations because correct answers wetlands are recognized as natural resource necessary to maintain ecological balance in the environment
All of the following are true regarding the National Flood Insurance Program except correct answers the program covers loss or damage to personal property caused by a discharge or overflow of water from a plumbing, heating or air conditioning system
A property considered undesirable because of an event that has occurred there such as a suicide, murder, illegal drug manufacturing, or gang related activity is classified as correct answers stigmatized property
A buyer makes an offer subject to reviewing the results of a home inspection. After the inspection the buyer is ready to move forward with the deal. Which does the buyer's agent need to do at this point? correct answers prepare an addendum removing the contingency
For every condition that is created in negotiations, an agent needs to document removing them when the time comes. When the buyer reviews the inspection report and is ready to move forward, the agent will prepare an addendum removing the contingency.
If, upon a receipt of purchase under certain terms, the seller makes a counteroffer, the prospective purchaser is correct answers relieved of the original offer
Which has occurred when a contract has been rescinded and each party returns to the other any consideration that has been tendered? correct answers restitution
Which would a buyer prefer: Land installment contract or purchase money mortgage? correct answers purchase money mortgage
The buyer would prefer a purchase money mortgage. In this agreement, the buyer receives the deed to the property on the day of closing. In a land installment contract, the buyer does not receive the deed until the final payment is made. A land installment contract transfers only equitable title. A purchase money mortgage does not transfer any title to the buyer; rather, it is a method by which the seller finances the transaction.
A condition or contingency in a contract can be waived by the correct answers party benefiting from the condition/contingency
A listing agent shows a buyer a home. The buyer then fills out an offer to buy the home, which the listing agent takes and explains to the sellers. The sellers like the offer and sign their acceptance of it. They then hand the accepted offer to their agent with instructions to deliver the accepted contract back to the buyer. At this point, all of the following statements are true
