THE CE SHOP FINAL EXAM PROCTOR
QUESTIONS AND ANSWERS
j What type of agency exists because of the actions and behavior of the parties?
Action agency
Behavioral agency
Express agency
Implied agency - Implied agency
Which entity ensures that contractors perform their work according to code by inspecting their job sites?
City hall
The attorney general
The building department
The secretary of state - The building department
The secondary mortgage market is comprised of _________________________.
FNMA, GNMA, FHLMC, & lending institutions that buy loans from other lenders
Lending institutions that lend directly to consumers
Savings and loans, thrifts, and credit unions
The VA and the FHA - FNMA, GNMA, FHLMC, and lending institutions that buy loans from other lenders
The secondary market is where loans are resold.
What is the highest penalty an unlicensed individual practicing real estate may be fined for more than
two offenses?
$10,000 per violation
$1,000 per violation
,$25,000 per violation
$2,500 per violation - $25,000 per violation
Which document is provided to borrowers no fewer than three days prior to closing and provides
disclosures about the costs of the transaction?
Closing Disclosure
Escrow Closing notice
Loan Estimate
The Mortgage Servicing Transfer disclosure - Closing Disclosure
Which of the following is an example of a development cost?
Crime rates
Increased demand on infrastructure
Lower unemployment
School ratings - Increased demand on infrastructure
Which option best describes a delivery and acceptance of a deed as required?
Grantor has acknowledged and voluntarily signed the deed in front of a public notary and delivered it in
person to the grantee or an agent of the grantee
Grantor has handed the grantee the deed and the grantee has signed it in front of a public notary
voluntarily accepting it.
Grantor has mailed the deed to the county clerk's office for recording.
Grantor has signed the deed and left it on the grantees patio. - Grantor has acknowledged and
voluntarily signed the deed in front of a public notary and delivered it in person to the grantee or an
agent of the grantee
Which document given before closing provides an estimate of the costs a buyer is likely to pay at
settlement?
,Abstract of title
Closing Disclosure
Loan Estimate
The Mortgage Servicing Transfer disclosure - Loan Estimate
The Loan Estimate provides the buyer with the costs they are likely to pay at settlement and discloses
the mortgage loan specifics, such as its key features, costs, and risks.
In the sales comparison approach, the appropriateness of the various comparable sales in relationship to
the subject is considered in a process known as ______, where certain factors may be given more
weight.
Averaging
Bracketing
Conformity
Correlation - Correlation
A licensee says, "This is a dream home with the best views in town." This is an example of ______.
A lie
Intentional misrepresentation
Positive misrepresentation
Puffery - Puffery
What's the term for an addition to a sales agreement form that can be added before it is signed without
changing any of the other terms that have already been agreed upon?
Addendum
Amendment
Annexation
Appurtenance - Addendum
In accordance with the Maryland Property Condition Disclosure Law, when is the seller required to
provide the Maryland Residential Property Disclosure and Disclaimer Statement to the buyer?
, No more than 24 hours after both parties have signed the agreement.
Only before entering into a contract of sale with the buyer.
Only if the buyer asks for it.
On or before entering into a contract of sale with the buyer. - On or before entering into a contract of
sale with the buyer.
You have found the perfect home for Lucy and she is ready to make an offer. The home was built in 1938.
Who is responsible for scheduling paying for the home's lead inspection?
The buyer
The listing agent
The mortgage company
The seller - The buyer
If a lead-based paint risk assessment or inspection reveals hazards on the property and the seller refuses
to fix the problem, what options does the buyer have?
The buyer can declare the contract null and void or remove the contingency and continue with the
purchase of the property.
The buyer can report the seller to the EPA and force the seller to make the repairs or serve jail time.
The buyer can sue the seller for breach of contract.
The buyer has only one option and that is to back out of the contract. - The buyer can declare the
contract null and void or remove the contingency and continue with the purchase of the property.
Niko has decided to move somewhere else when his lease ends on April 30. This would be considered
termination through ______.
QUESTIONS AND ANSWERS
j What type of agency exists because of the actions and behavior of the parties?
Action agency
Behavioral agency
Express agency
Implied agency - Implied agency
Which entity ensures that contractors perform their work according to code by inspecting their job sites?
City hall
The attorney general
The building department
The secretary of state - The building department
The secondary mortgage market is comprised of _________________________.
FNMA, GNMA, FHLMC, & lending institutions that buy loans from other lenders
Lending institutions that lend directly to consumers
Savings and loans, thrifts, and credit unions
The VA and the FHA - FNMA, GNMA, FHLMC, and lending institutions that buy loans from other lenders
The secondary market is where loans are resold.
What is the highest penalty an unlicensed individual practicing real estate may be fined for more than
two offenses?
$10,000 per violation
$1,000 per violation
,$25,000 per violation
$2,500 per violation - $25,000 per violation
Which document is provided to borrowers no fewer than three days prior to closing and provides
disclosures about the costs of the transaction?
Closing Disclosure
Escrow Closing notice
Loan Estimate
The Mortgage Servicing Transfer disclosure - Closing Disclosure
Which of the following is an example of a development cost?
Crime rates
Increased demand on infrastructure
Lower unemployment
School ratings - Increased demand on infrastructure
Which option best describes a delivery and acceptance of a deed as required?
Grantor has acknowledged and voluntarily signed the deed in front of a public notary and delivered it in
person to the grantee or an agent of the grantee
Grantor has handed the grantee the deed and the grantee has signed it in front of a public notary
voluntarily accepting it.
Grantor has mailed the deed to the county clerk's office for recording.
Grantor has signed the deed and left it on the grantees patio. - Grantor has acknowledged and
voluntarily signed the deed in front of a public notary and delivered it in person to the grantee or an
agent of the grantee
Which document given before closing provides an estimate of the costs a buyer is likely to pay at
settlement?
,Abstract of title
Closing Disclosure
Loan Estimate
The Mortgage Servicing Transfer disclosure - Loan Estimate
The Loan Estimate provides the buyer with the costs they are likely to pay at settlement and discloses
the mortgage loan specifics, such as its key features, costs, and risks.
In the sales comparison approach, the appropriateness of the various comparable sales in relationship to
the subject is considered in a process known as ______, where certain factors may be given more
weight.
Averaging
Bracketing
Conformity
Correlation - Correlation
A licensee says, "This is a dream home with the best views in town." This is an example of ______.
A lie
Intentional misrepresentation
Positive misrepresentation
Puffery - Puffery
What's the term for an addition to a sales agreement form that can be added before it is signed without
changing any of the other terms that have already been agreed upon?
Addendum
Amendment
Annexation
Appurtenance - Addendum
In accordance with the Maryland Property Condition Disclosure Law, when is the seller required to
provide the Maryland Residential Property Disclosure and Disclaimer Statement to the buyer?
, No more than 24 hours after both parties have signed the agreement.
Only before entering into a contract of sale with the buyer.
Only if the buyer asks for it.
On or before entering into a contract of sale with the buyer. - On or before entering into a contract of
sale with the buyer.
You have found the perfect home for Lucy and she is ready to make an offer. The home was built in 1938.
Who is responsible for scheduling paying for the home's lead inspection?
The buyer
The listing agent
The mortgage company
The seller - The buyer
If a lead-based paint risk assessment or inspection reveals hazards on the property and the seller refuses
to fix the problem, what options does the buyer have?
The buyer can declare the contract null and void or remove the contingency and continue with the
purchase of the property.
The buyer can report the seller to the EPA and force the seller to make the repairs or serve jail time.
The buyer can sue the seller for breach of contract.
The buyer has only one option and that is to back out of the contract. - The buyer can declare the
contract null and void or remove the contingency and continue with the purchase of the property.
Niko has decided to move somewhere else when his lease ends on April 30. This would be considered
termination through ______.
