Unit 2 The CE SHOP Real Estate Exams Questions with Correct Answers
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Course
Organic Chemistry
Institution
Organic Chemistry
Which one of the following tasks must licensees perform for seller clients?
-Dictate the listing price of the property.
-Drive the sellers around to show them other properties that are for sale in their neighborhood.
-Ensure that the buyer's earnest money is deposited.
-Show the sellers how the...
Unit 2 The CE SHOP Real Estate Exams
Questions with Correct Answers
Which one of the following tasks must licensees perform for seller clients?
-Dictate the listing price of the property.
-Drive the sellers around to show them other properties that are for sale in their
neighborhood.
-Ensure that the buyer's earnest money is deposited.
-Show the sellers how they can market their property. - Answer-Ensure that the buyer's
earnest money is deposited.
**A licensee must ensure the collection of the earnest money deposit from the buyer.
Earnest money may be used as liquidated damages by the seller in the event of buyer
default, so it's in the seller's best interest to ensure it's been deposited.
When using the farming approach, affinity is a key factor when identifying a
neighborhood. Which statement best describes affinity?
-An area that is not currently farmed by another licensee
-An area that the licensee likes
-An area with a fair amount of listings ‒ not too many, not too few
-An area with a variety or home styles, sizes, features, price points, amenities, buyers,
etc. - Answer-An area that the licensee likes
**Affinity is important when choosing a neighborhood. A licensee should genuinely like
the area where she intends to work.
Why should you know when the seller can vacate the property?
-If a buyer wants to close before the seller can vacate, the seller may need to rent it
back from the buyer.
-You'll need to know when you can have the property staged.
-You'll want the house empty for showings.
-You'll want to schedule the closing during the seller's occupancy. - Answer-If a buyer
wants to close before the seller can vacate, the seller may need to rent it back from the
buyer.
**The timing of vacating an occupied property is important when marketing to buyers
who may want to move in before the seller's ready to move out.
Continue to Unit 2: Listing Agreements and Disclosures in South Carolina
Return to Unit 1: Basics of Working with Sellers
View Exam Results
Why might some agents work for buyers without ever having met them?
-It's the most effective use of their time.
-They believe they'll be able to get the buyer to commit to an agency agreement later.
-They don't particularly like people.
-They're afraid to turn down any business. - Answer-They're afraid to turn down any
business.
,**Some agents are willing to work for buyers without an agency agreement and without
ensuring buyer loyalty. This can be a waste of time.
Who does the agent assisting the buyer in a transaction represent if there's no buyer
agency agreement?
-No one
-The buyer in a sub-agency capacity
-The customer
-The seller - Answer-The seller
**Without a buyer agency agreement in place, the agent assisting the buyer actually
represents and owes loyalty to the seller.
________ have a fixed income, but they may have large down payments from selling
prior homes. Accessible properties with little to no maintenance tend to be attractive to
these buyers.
-First-time buyers
-Retirees
-Trade-down buyers
-Trade-up buyers - Answer-Retirees
**Retirees are similar to trade-down buyers, but there are some key differences. Little to
no maintenance and accessibility are key factors for these buyers, who may have fixed
incomes, but also have larger down payments from selling their previous homes.
From a real estate licensee's standpoint, what's the purpose of qualifying buyers before
working with them?
-To determine their financial wherewithal
-To determine their readiness to purchase and make sure they're not already working
with another agent
-To learn if you have things in common with them
-To pre-qualify them for a loan - Answer-To determine their readiness to purchase and
make sure they're not already working with another agent
**The purpose of qualifying buyers is to determine their readiness to work with you, and
their readiness to purchase. It's also important to establish that they're not already
exclusively represented by another agent.
What type of buyer tends to look for properties with less space than their existing home,
but that will still offer them a similar quality of living?
-First-time buyer
-Retiree
-Trade-down buyer
-Trade-up buyer - Answer-Trade-down buyer
**want to maintain a similar quality of living as their existing home.
If a buyer wants to write an offer and asks for your help but doesn't want to sign an
agency agreement with you, who do you represent?
-Both the buyer and the seller
, -No one
-The buyer
-The seller - Answer-The seller
**Without an agency agreement with the buyer, you'd represent the seller.
Without a buyer agency agreement in place, which party does the agent who's assisting
the buyer represent?
-No one
-The agent
-The buyer
-The seller - Answer-The seller
**If there is no agency agreement in place, the agent who's assisting the buyer
represents the seller.
The Hendersons are having a very difficult time finding a property that meets their
needs. What is a way they can find off-market listings?
-Ask a real estate agent to poll her sphere of influence.
-Ask a real estate agent to search the MLS.
-Search homebuying websites.
-Visit real estate brokerages to see what properties they are advertising. - Answer-Ask a
real estate agent to poll her sphere of influence.
**Off-market listings are also known as pocket listings. Only the seller, the listing agent,
and individuals the seller and listing agent have informed know the property is for sale.
It is not posted on the MLS, brokerage websites, or homebuying websites.
Under what circumstances are pocket listings more prevalent?
-When inventory is high
-When inventory is low
-When the market is cold
-When there is greater demand for them - Answer-When inventory is low
**Low inventory is the breeding ground for pocket listings.
What does the underwriting step of loan processing typically involve?
-Property inspection
-Title search
-Verification of the borrower's financial situation
-Verification of the seller's financial situation - Answer-Verification of the borrower's
financial situation
**After the information on a loan application has been verified, the value of the property
confirmed, and the title search completed, the loan is ready to be underwritten.
What is the schedule of exceptions?
-A list of items title insurance won't cover
-An appraiser's list of unrelated properties
-An inspection repair list
-An underwriting issue - Answer-A list of items title insurance won't cover
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