ILLINOIS COLIBRI FINAL EXAM
QUESTIONS & ANSWERS (RATED
A+)
When the buyer checks "yes" to dual agency on a Buyer Representation agreement,
what does the buyer actually agree to? - ANSWERBy checking "yes" to this
paragraph, the buyer is only acknowledging that the possibility of dual agency exists.
Sam paid $500,000 for a five-unit apartment building. The gross income is $1,000
per month per unit, with annual expenses of $15,000 annually. What was the
capitalization rate for this investment? - ANSWER9%
A contract in which both parties exchange promises is a: - ANSWERbilateral contract
What technique is used to elicit "yes" responses from a client? - ANSWERKeep up a
running commentary - for example, this is the living room.
If a landlord rejects a prospective tenant based on a bad credit report, according to
the fair credit reporting Act, the prospective tenant: - ANSWERmay require the
landlord to submit all of his reasons for rejection in writing.
All of the following is included as part of a survey, EXCEPT: - ANSWERthe type of
improvements best suited for the land
What is the difference between market value and market price, if any? -
ANSWERMarket value is an estimate; market price is the price at which a property
sold.
Which of the following is true of an amortizing loan? - ANSWERPart of each periodic
payment is applied to repayment of the loan balance in advance and part is applied
to payment of interest in arrears.
How do you stay in control of a call from a prospect? - ANSWERAsking questions
On the day prior to closing, the buyer does a walk-through and sees that the seller
took a chandelier that was supposed to remain. What should the buyer's broker do? -
ANSWERAdvise the buyer to speak with his/her attorney about a financial
adjustment, at the closing, for the cost of the chandelier.
A loan applicant has an annual gross income of $36,000. How much will a lender
allow the applicant to pay for monthly housing expense to qualify for a loan if the
lender uses an income ratio of 28%? - ANSWER$840
Which of the following is considered a fixed operating expense? -
ANSWERinsurance premiums
, Which statement is true about a comparative market analysis (CMA)? - ANSWERIt
can help a seller decide what to ask for the property
Beginning after the 2013 renewal, individuals renewing or obtaining a managing
broker's license must complete how many CE credit hours, in addition to the Broker
Management Course? - ANSWER12 credit hours
An interest in real estate that includes the right to possess is known as: -
ANSWERAn estate in land
Under Title III of this Act, discrimination in commercial properties is prohibited. To
which Act does this apply? - ANSWERAmerican With Disabilities Act
When two adjacent pieces of property are joined together, the value of the one larger
parcel may be greater than the value of the two separately. Which principle of value
is this? - ANSWERAssemblage.
"Realestate" includes such things as: - ANSWERfences, sidewalks, and piers on a
parcel of land.
If an owner of real property dies without leaving a will and with no legal heirs, what
will generally happen to the property? - ANSWERIt will revert to the state or county
by escheat.
Radon gas can be traced back to: - ANSWERgroundwater pollutants
RESPA applies to all of the following EXCEPT which? - ANSWERSeller-financed
loan or a Loan involving a first mortgage
Which duty an agent has to his/her client never stops? - ANSWERconfidentiality
When does the seller receive a copy of the listing agreement? - ANSWERAt the time
of signing.
A Recorded Plat System contains all of the following, EXCEPT: - ANSWERa
contiguous group of lots, which is called a block.
Which tax is imposed on any deed or instrument which conveys interest in property?
- ANSWERReal estate transfer tax
Under the Equal Credit Opportunity Act, a lender, or a real estate agent who assists
a seller in qualifying a potential buyer, may not - ANSWERask the buyer/borrower
about his religion or national origin
Regulation Z applies to which of these situations? - ANSWER$75,000 condominium
loan
Which statement is true about the Junk Fax Prevention Act is False? -
ANSWERLicensees must stop faxes upon request.
QUESTIONS & ANSWERS (RATED
A+)
When the buyer checks "yes" to dual agency on a Buyer Representation agreement,
what does the buyer actually agree to? - ANSWERBy checking "yes" to this
paragraph, the buyer is only acknowledging that the possibility of dual agency exists.
Sam paid $500,000 for a five-unit apartment building. The gross income is $1,000
per month per unit, with annual expenses of $15,000 annually. What was the
capitalization rate for this investment? - ANSWER9%
A contract in which both parties exchange promises is a: - ANSWERbilateral contract
What technique is used to elicit "yes" responses from a client? - ANSWERKeep up a
running commentary - for example, this is the living room.
If a landlord rejects a prospective tenant based on a bad credit report, according to
the fair credit reporting Act, the prospective tenant: - ANSWERmay require the
landlord to submit all of his reasons for rejection in writing.
All of the following is included as part of a survey, EXCEPT: - ANSWERthe type of
improvements best suited for the land
What is the difference between market value and market price, if any? -
ANSWERMarket value is an estimate; market price is the price at which a property
sold.
Which of the following is true of an amortizing loan? - ANSWERPart of each periodic
payment is applied to repayment of the loan balance in advance and part is applied
to payment of interest in arrears.
How do you stay in control of a call from a prospect? - ANSWERAsking questions
On the day prior to closing, the buyer does a walk-through and sees that the seller
took a chandelier that was supposed to remain. What should the buyer's broker do? -
ANSWERAdvise the buyer to speak with his/her attorney about a financial
adjustment, at the closing, for the cost of the chandelier.
A loan applicant has an annual gross income of $36,000. How much will a lender
allow the applicant to pay for monthly housing expense to qualify for a loan if the
lender uses an income ratio of 28%? - ANSWER$840
Which of the following is considered a fixed operating expense? -
ANSWERinsurance premiums
, Which statement is true about a comparative market analysis (CMA)? - ANSWERIt
can help a seller decide what to ask for the property
Beginning after the 2013 renewal, individuals renewing or obtaining a managing
broker's license must complete how many CE credit hours, in addition to the Broker
Management Course? - ANSWER12 credit hours
An interest in real estate that includes the right to possess is known as: -
ANSWERAn estate in land
Under Title III of this Act, discrimination in commercial properties is prohibited. To
which Act does this apply? - ANSWERAmerican With Disabilities Act
When two adjacent pieces of property are joined together, the value of the one larger
parcel may be greater than the value of the two separately. Which principle of value
is this? - ANSWERAssemblage.
"Realestate" includes such things as: - ANSWERfences, sidewalks, and piers on a
parcel of land.
If an owner of real property dies without leaving a will and with no legal heirs, what
will generally happen to the property? - ANSWERIt will revert to the state or county
by escheat.
Radon gas can be traced back to: - ANSWERgroundwater pollutants
RESPA applies to all of the following EXCEPT which? - ANSWERSeller-financed
loan or a Loan involving a first mortgage
Which duty an agent has to his/her client never stops? - ANSWERconfidentiality
When does the seller receive a copy of the listing agreement? - ANSWERAt the time
of signing.
A Recorded Plat System contains all of the following, EXCEPT: - ANSWERa
contiguous group of lots, which is called a block.
Which tax is imposed on any deed or instrument which conveys interest in property?
- ANSWERReal estate transfer tax
Under the Equal Credit Opportunity Act, a lender, or a real estate agent who assists
a seller in qualifying a potential buyer, may not - ANSWERask the buyer/borrower
about his religion or national origin
Regulation Z applies to which of these situations? - ANSWER$75,000 condominium
loan
Which statement is true about the Junk Fax Prevention Act is False? -
ANSWERLicensees must stop faxes upon request.
