Barney Fletcher Test Review

Barney Fletcher Test Review 1. Open Listing (Non-Exclusive) - Answer-May be given to many brokers. Only the broker who is the "procuring cause" gets paid. 2. Truth in Lending Act (Regulation Z) - Answer-Requires meaningful disclosure of cost of credit including APR (Annual Percentage Rate). 3. Trust Accounts - Answer-Holding valuables for others; Commingling-illegal mixing trust funds and own private funds; Can't be used for broker purposes; Can't be seized to use for Firm needs; Broker must complete monthly reconciliation and hold statements for 3 years. Broker can have more than 1 account. 4. Market Data Approach to Value - Answer-Value estimate based on comparable comps; Adj factors: Market Conditions, Location, Physical Characteristics, Financing. Making adjustments: Subtracts or Add to be more like SUBJECT Property "Steel from reach" - if Future Comp more desirable than Subject, then SUBTRACT from value from sale price of COMP "give to poor" If Future Comp less desirable than subject, then ADD value to comp. Residential- 3.8 Comps. Not avg- Weight Adj Value X Confidence Factor=Value INCOME Approach -CAP RATE- —- PGI-VAC-OPER Loss= NOI NOI:% Rate=Value Property NOI:Value=% Rate. 5. Specific Lien - Answer-Encumbers only ONE property. example: Mortgage, Property Tax & Mechanics Lien. 6. True or False? Listings and offers will automatically end with the death of the seller or broker, destruction of the property, but not death of the salesperson. - Answer-True 7. Commissions - Answer-SELLER PAYS FULL commission to the LISTING BROKER, then it is divided among the companies. 8. What are the parts and requirements of Joint Tenancy? - Answer-Joint Tenancy- Automatic right of survivorship, cannot will. Four Unities (TTIP): *Time: All owners got title at the same time *Title: All owners named in same deed *Interest: Must have equal ownership shares *POSSESSION: All owners may posses entire property