Practice Exam 2 Complete Solutions

Practice Exam 2 Complete Solutions A broker who move his personal residence should do which? Notify the KREC in writing within 10 days A salesperson earned 2.75% commission on $600,000 in sales for the year. However, the salesperson had only taken a draw against commission of $150 per week for the entire year for the salesperson's salary. What would be the total amount earned by the salesperson? $16,500 An appraiser, in appraising a residential property, notices that there has been an increase in sales of houses in the area. Which valuation approach would be best for the appraiser to use in estimating the value of the residential property? Direct sales comparison (Market Data Approach) A contract where one party is bound to perform but the other party is not is referred to as: Unilateral A property worth $81,900 was rented out at $700 per month. What would be the gross rent multiplier (GRM) for this property)? 117 For how many years is a license issued? Two A sale of interstate real estate securities would be governed by which organization? SEC What is it called when a person takes the cost of purchase and then recaptures this amount? Depreciation- answer not 100% How are the Kansas real estate commissioners compensated? Subsistence and mileage- answer not 100% If a salesperson is an employee of a broker, then the broker must: Withhold FICA and federal tax- answer not 100% Which of the following events would lead to automatic revocation of license? Money paid from the recovery fund to satisfy a claim against them- answer not 100% In order to be in compliance with the Statute of Frauds, a sales contract must be: In writing How does a buyer become a client of a broker? By signing an agency agreement with a broker The main office of a real estate company wants to open up a branch office in the suburbs. One of the current licensees in the main office will be the supervisor for the branch office. What type of license would be needed for the license? Branch broker A real estate purchaser is said to have equitable title when The real estate contract is signed by both the buyer and seller A property with a total value of $40,000 was appraised for tax purposes at 25% of market value. If the tax rate was $3 per $100 of the appraised tax value, how much tax was owed? $300 According to Regulation Z, an advertisement including which of the following terms would require all the financing terms be disclosed? 7% interest rate (any interest rate) How long must a broker keep real estate records? 3 years What does an appraisal actually do? Estimate value All advertising on listed property must contain the: Trade or business name of the broker A broker must notify the Kansas Real Estate Commission (KREC) upon: Change of business location/address What is the best approach to use in figuring of a 15-year-old residential property? Comparable sales of nearby properties that have sold recently In order for a veteran to receive a VA loan, the veteran must first obtain a Certificate of eligibility A person obtained a $75,000 loan with the lender charging a 1% loan origination fee. What was the amount of the fee? $750 When a property is taken through condemnation, it was a result of: The government exercising the right of eminent domain Which of the following would be tax deductible on an individual's personal tax return? Mortgage interest on their residence Who enacts the Real Estate law in Kansas? Kansas Legislature Which of the following liens would take priority over all others? Real estate tax lien- answer not 100% Someone who has the authority to sign legal documents for another is a: Attorney in fact- answer not 100% Which of the following terms best describes a fiduciary obligation to the client? Disclosure A property containing 3.5 acres would consist of how many square feet? 152,460 A purchaser entered into a contract to purchase a home. The purchaser wanted a clause in the contract to protect against the loss of earnest money in the event a loan could not be obtained. Which of the following items would best protect the purchaser? Financing contingency Discount points of 1% would be computed based upon the: Loan amount A person owned condominium and leased it to K for one year. What did this create? A leasehold estate Fee simple title would BEST be described as receiving: Maximum rights in a property