Real Estate Test Module 2

Front 1

Should you process a check that can’t be covered as earnest money?

Back 1

No! Get a promissory note

Front 2

What happens when an offer to purchase is signed after the “good-till” date?

Back 2

Extend the time and have all sign it

Front 3

What do you do when a preliminary title commitment is received?

Back 3

Inform your clients

Front 4

What is Lis Pendens?

Back 4

Pending litigation involving the property

Front 5

What is necessary when a client wants to change the closing date?

Back 5

An addendum

Front 6

On a HUD-1, Buyers loan is shown as a:

Back 6

Credit to the buyer

Front 7

Earnest money may reside where?

Back 7

In a trust account until closing

Front 8

What is signed at the first substantial business opportunity?

Back 8

An Agency Disclosure Brochure

Front 9

When computing the sq. Footage of a home, an unfinished basement is:

Back 9

Excluded

Front 10

What is a seller’s net?

Back 10

What a seller receives in cash at closing

Front 11

An exclusive seller representation agreement establishes:

Back 11

A sales associate working for the sellers

Front 12

What must have a start and an exact expiration date?

Back 12

Agency agreements & Estate for the years

Front 13

Who completes the property disclosure statement?

Back 13

Only the seller!

Front 14

A buyer refusing to sign a representation agreement:

Back 14

Is represented by a Nonagent (you)

Front 15

If a buyer is a customer, any motivation might be:

Back 15

Not confidential

Front 16

One reason for terminating a listing agreement would be:

Back 16

Broker didn’t try to find a buyer

Front 17

Prepaid insurance is shown on HUD-1 as:

Back 17

Credit seller

Debit buyer

Front 18

When does a counter-offer expire?

Back 18

As stated in the counter offer

Front 19

If a commission is deposited in a trust account, it is being:

Back 19

Commingled

Front 20

A grantor is the ____________ in a deed.

Back 20

Borrower

Front 21

The Cap Rate =

Back 21

Net Annual Income divided by Purchase Price

Front 22

An Acceleration Clause:

Back 22

Declares entire loan is due upon default

Front 23

A Federal Government Agency providing secondary money to primary lenders

Back 23

Ginnie Mae

Front 24

Deferred maintenance causes:

Back 24

Physical depreciation

Front 25

Comparables are used in:

Back 25

Market data approach

Front 26

Interest on an assumed mortgage will always be:

Back 26

Pro-rated

Front 27

What prohibits kickbacks?

Back 27

Real Estate Settlement Procedures Act (RESPA)

Front 28

Evidence of a debt is usually called a:

Back 28

Promissory note

Front 29

A taken-back mortgage by the seller as part payment is:

Back 29

Purchase Money Mortgage

Front 30

An owner regains his house within a set period after a tax sale using his:

Back 30

Right of Redemption

Front 31

Adding a $55k wing to a $210k home in an area of $160-$175k homes would be an example of:

Back 31

Over-improvement

Front 32

Capitalization is used in what appraisal approach?

Back 32

Income

Front 33

Federal Flood Insurance is required for:

Back 33

Federal related financing

Front 34

Truth-in-lending (TILA) applies to:

Back 34

Residential Real Estate Credit regardless of amount

Front 35

A property sold for $300k and is 100’ by 300’. What is the price per sq. Ft?

Back 35

$10 per sq. Ft

Front 36

What defines the present worth of future rights?

Back 36

Income to value

Front 37

Combining lots to increase value of a new lot is called:

Back 37

Plottage

Front 38

If a licensee terminates with a broker, what is required?

Back 38

Licensee must notify broker in writing no later than 3 business days of effective date

Front 39

If a licensee terminates with a broker, what is required?

Back 39

Licensee must notify broker in writing no later than 3 business days of effective date

Front 40

If a broker terminates an agent for cause, the broker must notify IREC within:

Back 40

10 business days

Front 41

If a licensee terminates with a broker, what is required?

Back 41

Licensee must notify broker in writing no later than 3 business days of effective date

Front 42

If a broker terminates an agent for cause, the broker must notify IREC within:

Back 42

10 business days

Front 43

Company records must be retained by the broker for what period of time?

Back 43

3 calendar years after the year a transaction closes.

Front 44

Where can information be obtained to become a real estate appraiser?

Back 44

Bureau of Occupational Licensing

Front 45

Loans are not made by the FHA, but instead by an:

Back 45

FHA-approved lender

Front 46

What is the difference between a mortgage and a deed of trust?

Back 46

The form of foreclosure. A deed is a non-judicial foreclosure

Front 47

An earnest money check has non sufficient funds:

Back 47

Notify listing agent in writing ASAP

Front 48

Who can do a Brokers Price Opinion in Idaho?

Back 48

Broker or associate Broker

Front 49

How much/what is a discount point?

Back 49

1% of the loan amount

Front 50

What happens if the buyer rescinds their offer?

Back 50

They forfeit their earnest money

Front 51

An outside environmental factor causing decreased value of a subject property is:

Back 51

Economic obsolescence

Front 52

What method must one use to collect a delinquent mortgage?

Back 52

Judicial foreclosure

Front 53

Depreciation is defined as:

Back 53

A loss in value for any reason

Front 54

Pledging property as collateral is called:

Back 54

Hypothecation

Front 55

When interest rates exceed a legal rate:

Back 55

Usury

Front 56

What law assures customers will know exact charges?

Back 56

(TILA) truth in lending act

Front 57

Lender “owns” a mortgaged property in a:

Back 57

Title Theory State

Front 58

What type of loan includes personal property?

Back 58

Package loan

Front 59

Most profitable single use is referred to as:

Back 59

(HABU) Highest and Best Use