Real Estate Practice Questions And Answers

Which of the following is NOT a protected class under the Wisconsin Fair Housing Laws? - correct answersStudent The WB-11 Residential Offer to Purchase describes which of the following as the way an earnest money payment should be handled as a result of a sale involving cooperating firms where the listing firm will hold the earnest money? - correct answersThe selling licensee should have all earnest money checks paid directly to the listing firm. A purchaser drafts their WB-14 Residential Condominium Offer to Purchase with an inspection contingency. According to the WB-14 the home inspector will be inspecting the? - correct answersUnit and limited common elements The owner of a property just found out that the municipality is going to be putting in sidewalks. The cost of the sidewalks is going to be assessed at $18.00 per linear foot. The owner has a 120-foot lot excluding the driveway. How much will the property owner's special assessment be? - correct answers$2,160 120 feet x $18 = $2,160. According to the Truth in Lending Act (TILA), what should be disclosed to a borrower? - correct answersThe annual percentage rate (APR) When acting as a buyer's agent, a license must disclose buyer agency to all parties or risk a claim of: - correct answersmisrepresentation Which of the following is NOT true regarding a licensee who associates with a new firm? - correct answersThe licensee cannot provide real estate services for the new firm until at least 30 days have passed since the transfer was mailed. A buyer purchases a property for $129,550. How much is the transfer fee for this transaction? - correct answers$388.80 Binding acceptance occurs: - correct answerswhen all parties have signed an identical copy of the offer to purchase and it is delivered to the party who made the offer From the grantee's point of view, the best deed to receive is a: - correct answerswarranty deed The WB-11 Residential Offer to Purchase states that title evidence shall be given by the seller in the form of a/an: - correct answersowner's policy of title insurance What must firms provide to their licensees? - correct answersA written statement of procedures under which the firm and licensees associated with the firm shall operate with respect to transaction documents A property is listed for $225,000 and is selling for $219,000. The seller is paying a 5% commission and $500 in points for the buyer. After paying these costs, what will the seller net? - correct answers$207,550 $219,000 selling price x .05 commission rate = $10,950. $219,000 - $10,950 = $208,050. $208,050 - $500 points = $207,550 net. The commission on the sale of 123 Anywhere Drive was $18,500, based on a 6.5 percent commission rate. What was the final selling price of the property? Use whole numbers. - correct answers$284,615 $18,500/ .065 = $284,615. A licensee is going to list a property improved with a structure. Which of the following statements best describes a licensee's inspection duties? - correct answersA licensee needs to complete a reasonably competent and diligent inspection to detect observable, material adverse facts. Bob changed his mind about purchasing 456 Right Here Avenue. The seller has accepted the offer. The offer has not been delivered to Bob. What is the effect on the transaction if Bob's license calls the seller and says the deal is off? - correct answersWithdrawal of the offer Which type of loan does the federal government guarantee? - correct answersDepartment of Veterans Affairs (VA) loan Shoreland zoning regulates land located within: - correct answers1,000 feet of the ordinary high water mark of a lake, pond, or flowage When trying to determine if an advertisement violates the Fair Housing Act, what test(s) is applied? - correct answersOrdinary Reader Test A property protected under the WB-36 Buyer Agency Agreement Extension of Agreement Term is protected for how long after the expiration of the contract? - correct answersOne year The financing commitment contingency would be satisfied if which of the following were to occur? - correct answersThe seller receives a loan commitment subject to conditions Which of the following would violate advertising rules for real estate licensees? - correct answersAdvertising a property that has already been sold The duties to all parties include all of the following EXCEPT: - correct answersnegotiation Betty and Sam were in negotiations regarding property 789 Pear Street. Betty made an offer to purchase including earnest money of $5,000. Sam rejected Betty's offer. Who receives the disbursement of the $5,000 earnest money? - correct answersBetty receives $5,000 A buyer orders a title insurance policy. The title insurance provider searches the public records for the title examination. The title company notifies the buyer in writing of the condition of the title with the: - correct answerstitle insurance commitment All of the following may legally terminate a listing contract EXCEPT: - correct answers a rise in interest rates After entering into a sales contract a seller discovers a defect on the property, the: - correct answer seller must comply with the terms of the sales contract