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Massachusetts Real Estate Final Exam Rated A+
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Massachusetts Real Estate Final Exam Rated A+
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Massachusetts Real Estate Final ExamRated A+
Name the 8 states that Florida has a reciprocal, or mutual recognition agreement with?
- ANSWER-Alabama, Arkansas, Connecticut, Georgia, Indiana, Mississippi, Nebraska
and Oklahoma.
* What is an arm's length transaction? - ANSWER-One in which both parties have the
ability to negotiate.
* What is the maximum payment from the Recovery Fund to 1 person or from 1
transaction? - ANSWER-$50,000
* What must a listing agreement include? - ANSWER-a definite expiration date, include
a description of the property, and specify the fee or commission.
*** What does P.O.A.C.H. stand for? - ANSWER-Posession, Open, Actual, Continuous,
Hostile.
***What is the Florida Green Belt Law? - ANSWER-This taxes agricultural land at a
lower rate than the encroaching cities around the land, and preserves the land for future
agricultural use.
4. Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker
Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a
Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property.
What, if any, is the relationship between the buyer's broker, the seller and the listing
broker? - ANSWER-There is not a relationship between the parties. Broker Carr
represents the Seller and Broker Smith represents the Buyer.
6. The seller and the buyer finally agreed to a purchase price of $203,500 with the
closing to occur on June 15. The taxes for the year in the amount of $2,500 have not
been paid by the seller. (Taxes are paid in arrears). How much would the tax proration
amount to, and how would it appear on a full settlement statement? Base your answer
on a 365 day year, and the buyer is responsible for the day of settlement. - ANSWER-
$1,130.14 debit the seller and credit the buyer
A borrower bought a $174,000 house with no down payment. The loan was probably -
ANSWER-a VA loan.
A broker has had his license suspended for failure to properly market his listings. The
Whitfields obtain a civil court judgment against him for the damages resulting from his
action. Which of the following represents the maximum Recovery Fund payment
authorized by the updated statutes for this situation? - ANSWER-$50,000
, A broker has had his license suspended for misrepresentation. Which of the following is
TRUE? - ANSWER-All of his affiliated licensees will become involuntarily inactive.
A broker has just secured a new listing. If he wants to erect a "For Sale" sign on the
property, what must he do first? - ANSWER-The broker must get the property owner's
permission to do so.
A buyer assumes the mortgage. How is the owner relieved of the liability? - ANSWER-
Novation
A buyer bought a property without telling the seller of his intended purpose for the
property. The contract contains no contingency clauses and it is a properly executed
contract. After the closing, the buyer is unable to obtain the zoning he needs for his
commercial project. What is the contract at this stage? - ANSWER-Enforceable
A buyer is visiting open houses and runs across a nice looking home for sale. Can the
listing agent show the buyer the home? - ANSWER-Yes, as long as the listing agent
gives the buyer an agency disclosure notice which states he represents the seller.
A buyer wanted to use a promissory note for consideration on the purchase of a
property. Can he do this? - ANSWER-Yes. This is acceptable as long as the seller
agrees.
A buyer wants to take out an FHA loan. The broker should refer the buyer directly to -
ANSWER-any approved lending institution such as a bank or savings and loan
association.
A feature found in a comparable property that is not present in the subject property will
result in - ANSWER-a reduction adjustment to the comparable's selling price.
A home improvement company was negotiating with a homeowner to add on two rooms
to a home. The company agreed to take a second mortgage as long as the homeowner
also included the rest of the property in the loan. The company and the homeowner
agreed to a price and the company provided the necessary disclosure form on Monday
and the homeowner signed the agreement at noon the following day. Assuming that the
week had five business days, until what time could the homeowner rescind the loan? -
ANSWER-Friday, midnight (Three business day period)
A house sold for $420,000. The buyer made a 20% down payment. Monthly interest on
the loan was $1,400. What was the interest rate on the loan? - ANSWER-• 5%
A mortgage broker - ANSWER-arranges loans between borrowers and investors.
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