The CE Shop Proctor Final Exam Questions with Complete Solutions
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Course
The CE shop real estate
Institution
The CE Shop Real Estate
Local real estate developments, such as a new subdivision, will likely impact ______ the most. - Answer-Aesthetics of a community
Ross thinks he knows which neighborhoods his new clients belong in, so he tries to guide them away from the neighborhood they like. What prohibited practice is Ross e...
The CE Shop Proctor Final Exam
Questions with Complete Solutions
Local real estate developments, such as a new subdivision, will likely impact ______ the
most. - Answer-Aesthetics of a community
Ross thinks he knows which neighborhoods his new clients belong in, so he tries to
guide them away from the neighborhood they like. What prohibited practice is Ross
engaging in? - Answer-Steering
Which type of exclusive agency agreement in Kentucky allows a broker to solely
represent a buyer client, but doesn't guarantee the broker will receive a commission,
even if the buyer goes under contract to purchase a property during the term of the
agreement? - Answer-Exclusive buyer agency agreement
When may informed consent for dual agency be obtained? - Answer-Before the fact, or
as the situation arises
Joe and Emma Parsons begin informally working with their neighbor Kyle, who's a real
estate licensee, to find a bigger house. The parties have not signed any agreements or
discussed the arrangements. This is an example of a(n) ______ agency agreement. -
Answer-Implied
Max built his shed just over his property line, so part of the structure actually sits on his
neighbor's property. The shed is considered a(n): - Answer-Encroachment
What are the two report types permitted by the Uniform Standards of Professional
Appraisal Practice? - Answer-The restricted appraisal report and the appraisal report
______ pipe is very durable, corrosion resistant, and can be used for hot-water
distribution lines, but it doesn't last as long as copper piping. - Answer-Brass
The Nguyens must get top dollar. Competitive properties are priced at $250,000 and
$255,000. What's a good pricing strategy? - Answer-Price at or just below the highest
competing property.
A clause that allows the parties to agree that they won't litigate if there are any contract
disputes is a/n _________. - Answer-Arbitration clause
A property appraised for $257,000 and the buyer paid $249,000. Which value will a
lender use when determining the loan-to-value ratio? - Answer-249,000
What is a short sale? - Answer-The sale of a property for an amount that's less than
what is owed, excluding closing costs
,Why do appraisers use the Uniform Residential Appraisal Report? - Answer-To provide
the lender with an accurate opinion of the property's market value
Which of the following best describes the fiduciary duty of confidentiality? - Answer-You
must not share your client's confidential information.
Why are industrial lofts and warehouses often converted for residential or commercial
uses? - Answer-Because they are located in high-rent areas or can be more profitable
as a converted property than as its former industrial use
An ______ is an addition to a sales contract and can be added without changing other
terms already agreed upon in the contract. - Answer-Addendum
In the sales comparison approach, the appropriateness of the various comparable sales
in relationship to the subject is considered in a process known as ______, where certain
factors may be given more weight. - Answer-Correlation
Who typically performs a CMA or BPO? - Answer-Real estate licensee
Which stage of the property ownership life cycle can be affected by income tax issues?
- Answer-Acquisition, ownership, and reversion can all be affected by income tax
issues.
Which type of depreciation is a loss in value due to defects in a structure's design? -
Answer-Functional obsolescence
Which approach to finding value would licensed appraiser Christina probably weigh
most heavily when appraising a three-unit rental property? - Answer-Income
What's a survey? - Answer-A professional, on-site measurement of the lot lines and
dimensions of a property
What's the price at which a willing buyer and a willing seller would strike a deal given
normal market conditions? - Answer-Market value
A real estate licensee must conduct marketing campaigns in a way that ______. -
Answer-Makes the property available to all buyers without limits or restrictions
Which of these is an example of a lot and block description? - Answer-Lot 6 of Block 3
of the East Subdivision plat as recorded in Map Book 18, Page 11 at the Recorder of
Deeds
What duties does a buyer agent have to the seller? - Answer-To disclose the agent's
relationship with the buyer
, What types of monies received from income-producing properties should be deposited
into an escrow account? - Answer-Prepaid rent and security deposits
When is a title search conducted? - Answer-Before a property is sold, to determine if
there are any defects on the title
Who's responsible for conducting the closing meeting? - Answer-The closing agent
An appraiser is working to find the market rent for a 10-unit apartment building. In order
to compare the subject property to similar properties, she will ______. - Answer-Convert
monthly rental income to annual dollars per room
Three suitability categories help licensees and sellers analyze whether a property
should be sold at auction. These categories are ______. - Answer-Property type,
market conditions, and seller's needs
Which of the following best describes how an appraiser reconciles the adjusted sales
prices of the comparable properties to indicate the value of the subject property? -
Answer-The appraiser selects the adjusted sales price of the property most like the
subject to use as the indicated value.
Careful handling of all funds is crucial to the success of a brokerage firm. Of special
importance, however, is handling of ______. - Answer-Escrow funds
Which document provides an estimate of the costs a buyer is likely to pay at
settlement? - Answer-Loan Estimate
Whose consent and agreement are required to conduct a short sale? - Answer-The lien
holder's
Gerald creates a trust to convey his property to his heirs. His friend, Nancy, is placed in
charge of making sure the terms of the trust are carried out. In this example, Nancy is
the ________. - Answer-Trustee
Adella received money for her down payment in the form of a tax credit on her federal
tax return. This tax credit is known as a __________________________. - Answer-
Mortgage credit certificate
Minimizing risk in part means avoiding public networks, unsecure sites, and ______
sites. - Answer-Suspicious
The components that make up a borrower's mortgage payment can best be
remembered using which acronym? - Answer-PITI
Which of the following statements is prohibited under fair housing law? - Answer-Perfect
for a couple without kids
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