Real Estate post-license test

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Real Estate post-license test
2011-02-25 12:56:02
Real Estate post license test

Real Estate post-license test
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  1. Open listings may be either:
    Oral or implied
  2. Callers on classified advertising ususally ask for the ____________ _____________
    Property address
  3. Percentage added to Adjustable Rate Mortgage is called the
  4. The best source for Sales Associates to find FSBOs is the
    Classified ads
  5. 3 components of title search:
    • 1) Survey
    • 2) Physical inspection
    • 3) public records search
  6. owner lists his house with a broker but doesn't have to pay a commission if he sells his property himself. This is a/n ____________ _____________ listing
    Exclusive agency
  7. To ensure that no damage was was done to the home during moving a buyer should:
    Conduct a pre-closing walk through inspection
  8. Three basic components of listening skills are:
    Hear, understand, evaluate
  9. Three keys to prospecting success are:
    Consistency, numbers, organization
  10. A broker must give a brokerage relationship disclosure for "single" and "no brokerage" relationships for residential sales. Name the three criteria for a property to qualify as a residential sale:
    • - Residential property (≤4 units)
    • - Vacant land (zoned for ≤4 units)
    • - farm≤10 acres
  11. The Housing for Older Persons Act allows certain communities to be exempt from "family status" protection provided by the Fair Housing Act. If two conditions are met:
    80%≤ of units, 55+ age
  12. The Can-SPAM Act
    • From & to & routing info be correct & identify the sender
    • Recipient must be given an opt-out method
    • Commercial email must be identified as an advertisement & include sender’s valid physical postal address
  13. The principle is responsible for the acts of his/her ____________ _____________
    Single agent
  14. A reflecting method that is occasionally repeated is called ________________
  15. The business cycle phase where consumers reduce spending is ________________
  16. A sales associate receives a deposit on Thursday. If his/her broker holds the escrow account, the funds must be deposited no later than ____________
  17. Potential Gross Income minus Vacancy and Collections equals _____________
    Effective Gross Income
  18. Best source of listings for a new sales associate is __________ ____ ________
    Sphere of influence
  19. A fixed rate, amortized mortgage with 26 annual payments resulting in a faster payoff than a traditional 30 year mortgage is a ______ ______
    Biweekly mortgage
  20. Most individuals begin their real estate investment portfolio by buying a: _________ _________ _________
    Single family home or duplex
  21. The three types of operating expenses of an income producing property are:
    • Fixed
    • variable
    • reserves for replacement
  22. Apartments currently available for rent, in excellent condition and ready to show to prospects are on the _________ _________
    Show list
  23. The principle of conformity in a subdivision is protected by _________ _________
    Restrictive covenants
  24. The last item to be covered when presenting an offer is _________
  25. A non-cash expense that plans for the eventual wearing out of major property components is called __________ ____ ________
    reserves for replacements
  26. _________ is the illegal practice of charging higher interest rates for homes located in a minority area.
  27. Long-term capital gains are taxed at a maximum rate of __ %
  28. lf a sales contract describes each piece of personal property remaining with the property after the sale and includes a separate price for each piece:
    Sales tax must be paid on personal property
  29. When staging a home a seller should not
    Use unique decorative touches
  30. A licensee may prepare an appraisal if he/she is not involved in the sale and ____________
    The listing of the property
  31. Name four characteristics you should look for when selecting a farm area:
    • High turnover
    • increasing property values
    • not being farmed
    • mid to upper price range
  32. Two successive year-to-year quarterly increases of the GDP is ____
  33. Concerning the Junk Fax Protection Act what is the term for the following definition? A prior existing relationship formed by a voluntary two-way communication between persons, entities or businesses __________ ____ ________
    Established business relationship
  34. What law prevents a private homeowner from discriminating against race when selling his/her home? ____________________
    Civil Rights Act of 1866
  35. The Americans with Disabilities Act (ADA) does not protect persons with _______, ________, or _______
    • Substance abuse
    • temporary impairments
    • homosexuality
    • juvenile sexual offenders
  36. Name five (5) post closing duties
    • 1) remove the “for sale” sign
    • 2) commission check to broker
    • 3) thank you letter to seller/buyer
    • 4) change MLS status after closing
    • 5) visit customer for follow up
  37. lf a sales associate employs a licensed assistant and pays him/her a salary and a percentage of commissions received, describe how they can be paid legally?
    The associate may pay the salary and must withhold taxes; the broker must pay commission
  38. If one of the parties fails to perform within the time limits in a "time is of the essence" contract, a _________ occurs.
  39. What organization awards the Certified Property Manager designation?
  40. What are the eight requirements for a successful listing presentation?
    • 1) All parties necessary to sign present
    • 2) Have a CMA
    • 3) Sellers prepared to list
    • 4) Info organized
    • 5) Know the presentation
    • 6) Have & show the correct info
    • 7) Professional appearance
    • 8) On time
  41. A body of law that provides legal protection for certain valid contracts that are in writing and signed is __________ ____ ________
    Statue of frauds
  42. A contract contains a contingency that the appraisal be equal or greater than the sales price. It comes back lower this contract is: _______
  43. A Seller and Buyer come to a verbal agreement for the sale of the Sellers home. The Buyers make an earnest money deposit of $3,000 to the Seller. This is a/n ______ contract.
    Unenforceable contract
  44. What is the most appropriate type of transaction when using the FAR Sale Contract?
    Sale of house or vacant land
  45. What are the five categories of Sales Associates potential leads?
    • 1) Close friends & family
    • 2) Friends
    • 3) Customers
    • 4) Acquaintances
    • 5) Targeted strangers
  46. To comply with the Americans with Disabilities Act how many parking spaces must be reserved for disabled persons?
    One space for every 25 spaces
  47. If a Sales Associate leans back in his/her chair and joins their hands behind their head, theyare demonstrating _______ non-verbally.
  48. The most important words in any sales presentation to demonstrate the benefits of a particular property are:
    _______ _______ _______ _______
    • 1) Fact
    • 2) Bridge
    • 3) Benefit
    • 4) Picture
  49. According to Florida law, five requirements that must be included in all written listing agreements are:
    • 1) Expiration date
    • 2) Property description
    • 3) Price & terms
    • 4) Commission
    • 5) Signatures
  50. What two documents will convince a Seller that the Buyer is "ready, willing and able" to complete the transaction?
    • Deposit
    • pre-approval letter
  51. A listing agreement contains a provision that says if the seller does nothing when the listing reaches the expiration date, the listing will automatically be extended for an additional 90 days. This listing is _________
  52. The reason a buyer might ride by a listing without stopping, is because it lacks
    Curb appeal
  53. The Federal law requiring women and minorities be treated fairty when applying for s loan is ___________ Act
    Equal Opportunity Act
  54. What are the four loan processing procedures?
    • 1) Qualifying borrowers
    • 2) Appraisal
    • 3) Title marketability
    • 4) Prepare closing documents
  55. The reason a Sales Associate might recommend a Buyer make a 20% rather 15% downpayment is:
    Eliminate MIP
  56. If one spouse isn't available to sign a Contract to Purchase, and the parties wish to have the absent spouses' name included on the deed, they should:
    Amend the contract at closing
  57. The Sales Associate's primary objective when answering an ad call:
    Make an appointment
  58. A pricing pyramid demonstrates that the best comparison for pricing a home comes from
    Pricing the property closest to “sold” properties
  59. When a Sales Associate repeats what his/her customer says exactly, this is called:
  60. A Sales Associate is representing a Seller as single agent and finds out something from the buyer that would affect his/her ability to obtain financing for the property. The Sales Associate should _________________________
    Disclose this to the Seller
  61. In the event a Seller defaults when using the FAR Residential Sales Contract, the buyer may
    Cancel the contract
  62. lf the buyer prospect needs to sell their current home before they purchase:
    See their home and make a listing presentation
  63. How is prepaid interest calculated on a new loan closing on October 20th?
    Charge (debit) the Buyer from 10/20-10/31
  64. A technique in the textbook to help sellers favor your buyers.·
    Have the Buyers write a letter stating why they want to buy the Sellers house
  65. Two brokers from different companies meet and decide to charge the same commission rates. This is a violation of ________
    Antitrust laws
  66. In accordance with the Americans with Disabilities Act, "must be removed if it is readily achievable", means ___________________
    If it can be accomplished with little difficulty or expense
  67. Jim added an extra garage stall to his house that cost $25.000. When he sold the house the appraiser added $7,000 value for the extra stall. This demonstrates the principle of:
  68. A Sales Associate prepares a Seller Net Sheet for her Sellers closing on June 15th, Taxes are estimated at $12,000 and interest for June is $2,700. The entries she should make on the statement are:
    Charge the Seller $5500 for taxes, and to be safe a full months interest ($2700)
  69. An appraiser estimates the subject property to be in better condition than the com parables, to which he/she assigns a value of $6,000. The subject has three bedrooms while the comparable has four. The appraiser assigns $12,000 to the value of a bedroom. The adjustment is _________
    -$6000 to the comparable
  70. The format for an open listing can be
    • Oral
    • written
    • implied
  71. A legal description for a listing should not be taken from
    County tax appraisers records
  72. The definition of a nominee loan is:
    Borrowers identity is concealed through a straw buyer who allows the borrower to use the straw buyer’s credit history
  73. Name six important points to remember when making prospecting calls.
    • 1) Success in numbers
    • 2) Consistency
    • 3) Call at your best time
    • 4) Make 1st call
    • 5) Remember the goal
    • 6) You'll improve
  74. Discuss four areas of Florida Statute 479 that have changed due to mortgage fraud.
    • 1) Borrowers must be given detailed disclosures
    • 2) Mortgage broker must give written disclosure of how much they are being paid
    • 3) GFE (Good faith estimate) must be dated and signed and disclosed to the recipient of all fees paid
    • 4) Borrower must be notified no later than three business days if the loan terms have changed
  75. Regarding the closing papers required for a closing the Sales Associate should:
    • a. Review with customer 1 day before closing
    • b. Provide the buyer amount for certified check
    • c. Obtain binder check for closing
  76. What are some questions to ask when qualifying buyers?
    • 1) Home features?
    • 2) When do they need to move?
    • 3) Have to sell current home?
    • 4) If lease, when does it expire?
    • 5) Already been pre-approved?
    • 6) Want a specific area?
  77. If you are presenting a buyers offer with the listing agent you should not:
    present the offer without the listing agent being present
  78. At closing a seller will be required to sign an affidavit that:
    • 1) True owner of the property
    • 2) No liens
    • 3) Right to convey
  79. When a Sales Associate is talking with a FSBO, who says they won't list their house becausethey'll just have an attorney write the contract, a good response might be:
    A good attorney is probably busy and may not be available to write the contract while the buyers are anxious to buy
  80. Discuss at least 6 areas that should be covered when explain the pricing process during the listing presentation:
    • 1) Current market conditions
    • 2) Months supply of homes on market
    • 3) CMA
    • 4) CMA best price
    • 5) Your analysis of the market
    • 6) Pricing pyramid
  81. Sellers equity
    Sales price – mortgage