AREC Final exam Study Set QUESTIONS WITH ANSWERS

AREC Final exam Study Set |\ |\ |\ |\ |\




QUESTIONS WITH ANSWERS |\ |\




When preparing the sales contract, when is it acceptable
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for a licensee who is not an attorney to offer legal advice
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to the client? - CORRECT ANSWERS ✔✔Never
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A set of guidelines for the ethical conduct of real estate
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licensees is called a - CORRECT ANSWERS ✔✔Code of |\ |\ |\ |\ |\ |\ |\ |\ |\



ethics


Which of the following is the best definition of a covenant
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between a lessor and lessee? - CORRECT ANSWERS ✔✔An |\ |\ |\ |\ |\ |\ |\ |\



agreement or promise made between the parties
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Which party's closing costs might include mortgage
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insurance? - CORRECT ANSWERS ✔✔Buyer |\ |\ |\ |\




The Real Estate Settlement Procedures Act is a consumer
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protection statute that - CORRECT ANSWERS ✔✔Requires |\ |\ |\ |\ |\ |\ |\



lenders to provide the consumer with certain disclosures
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for residential real estate transactions and prohibits
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kickbacks among settlement service providers |\ |\ |\ |\

,Licensee Kyle has had a few casual meetings with a
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potential client, Mary. Mary told Kyle the type of home
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and area she's interested in, and Kyle mentioned a few
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homes he thinks Mary might be interested in. Although
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Kyle hasn't said he will continue to look for homes for
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Mary, Mary believes he'll do just that. Which of the
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following statements about this situation is correct? -
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CORRECT ANSWERS ✔✔Kyle's actions may have created |\ |\ |\ |\ |\ |\ |\



an implied agency agreement with Mary.
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Which of the following is designed to protect buyers from
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financial loss if the title to the property they buy has
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defects? - CORRECT ANSWERS ✔✔Title insurance |\ |\ |\ |\ |\




The Knolls are purchasing a property and are concerned
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about the title, so they want to have a title search
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performed. Who can perform a title search? - CORRECT |\ |\ |\ |\ |\ |\ |\ |\ |\



ANSWERS ✔✔A title insurance company |\ |\ |\ |\




Jim is acting as a limited services representative to
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Sheree, who has decided to waive his duty to negotiate
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on her behalf. Jim must provide Sheree with ______. -
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CORRECT ANSWERS ✔✔A waiver of duties statement |\ |\ |\ |\ |\ |\




Which term refers to the ordinances/regulations that
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protect the community and control property development
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, |\ within subdivisions? - CORRECT ANSWERS ✔✔Subdivision
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|\ regulations


Which of the following statements describes laws and
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ethics? - CORRECT ANSWERS ✔✔Laws are made by the
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government, and ethics are dependent on conscience and |\ |\ |\ |\ |\ |\ |\



values.
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If you were a member of a local planning board, your
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responsibilities could include________. - CORRECT |\ |\ |\ |\ |\



ANSWERS ✔✔Determining zones within the municipality
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While reviewing her purchase contract, Jeanette's client
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asked, "What does this inspection contingency do?" How
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should Jeanette frame her response? - CORRECT
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ANSWERS ✔✔"The inspection contingency is designed to
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protect you in case the home inspector finds something
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wrong with the property that can't be fixed or that makes
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you uncomfortable."
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You just helped Marcy find her dream home—a
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condominium that will be her full-time residence. She |\ |\ |\ |\ |\ |\ |\ |\



loves that it's in a self-contained community with leisure
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activities, shops, restaurants, and security. This type of
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development is sometimes called a planned unit |\ |\ |\ |\ |\ |\ |\



development (PUD). Which type of multi-family housing is |\ |\ |\ |\ |\ |\ |\