Minnesota State Real Estate Test Review Rated 100% Correct!!
A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want to make the permission permanent in case he dislikes others who might move next door in the future. What should he give his neighbor? - Answer A license.
Legal descriptions using the government survey system are NOT generally used in - Answer : the original 13 states.
Real property can be converted to personal property by - Answer Severance
A landowner wishes to build a neighborhood grocery store on a busy street in an area zoned for residential use. Which of the following would MOST likely be used to obtain permission for this store? - Answer Conditional use permit or zoning variance.
Ordinances that specify construction standards are - Answer Building Codes
A couple owns an older home in a neighborhood that is becoming a commercial area. Because of the change in the use of the land, the couple can expect the value of their parcel to increase at some future time. This is an example of the principle of -
Answer anticipation
If an older building cannot be air-conditioned, it is an example of - Answer functional obsolesence
According to the principle of progression, a three-bedroom, one-story home is MOST
likely to bring the highest sales price if located in a neighborhood in which - Answer most homes are larger than the sale home
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the following disclosures MUST appear in the ad EXCEPT the - Answer prepayment penalties and rebates.
The FHA functions MOST like - Answer an insurance company
In helping a buyer to select a lender, if the buyer believes he has good credit and his income is documentable as a salary and by tax returns, the licensee might recommend a mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT - Answer more variety of loan programs available.
A salesperson lists a property with a contract that allows for subagency and dual agency. The salesperson is - Answer an agent to the broker and a subagent to the principal.
An exclusive right to sell listing obtained by a broker associate belongs to - Answer the employing broker only
A broker, acting as agent for the seller, presents an offer to buy from the broker's former college roommate. The broker knows that the buyer will increase the amount Minnesota State Real Estate Test Review Rated 100% Correct!!
of the offer if the seller turns down the offer. When presenting the offer, the broker should - Answer tell the seller that the buyer will pay more.
Unrepresented buyers ask the licensee who listed the home whether they should order a property inspection as a part of their due diligence for the purchase of the home. Which of the following would be the most appropriate way for the listing agent to respond? - Answer If you feel it is in your best interest, please do so.
The Department of Housing and Urban Development estimates that most private homes built before 1978 contain potentially dangerous levels of lead. Because of this, some Federal agencies, such as FHA, - Answer require the buyer to acknowledge disclosure of the presence of any known lead paint.
A prospective buyer made an offer to purchase a property. The owner responded with a counteroffer. While the buyer was reviewing the counteroffer, the owner received a better offer. The owner can accept the second offer if - Answer the owner withdraws the counteroffer before it is accepted.
When a listing broker is preparing an Offer to Purchase for a buyer customer, contingencies involving inspections or approval by a third party should - Answer have short deadlines.
A company agrees to lease a property to be used as a gambling casino. State laws prohibit gambling. This particular contract would be legally defined as - Answer Void
A broker has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the broker has earned his commission when - Answer the seller accepts the offer
An equal housing opportunity notice MUST be - Answer displayed in the brokerage office.
Salesperson Susan was at the local coffee shop with some agents from other offices. The subject of commissions came up, and agents began to compare their commission rates. Susan should - Answer advise her friends this could constitute a violation of Sherman Antitrust Act.
A property management plan may serve different purposes for different owners, and generally has to strike a balance between preservation of the property's value and generation of income. Which of the following owners would MOST likely prefer a property manager who emphasizes maintenance of value over profitability? - Answer
Department of Housing and Urban Development
Which restrictive covenant would be considered illegal? - Answer A covenant that restricts the type of building that may be constructed.
Even with title insurance, the policyholder may still suffer losses arising from - Answer land use change due to zoning ordinances.
A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want to make the permission permanent in case he dislikes others who might move next door in the future. What should he give his neighbor? - Answer A license.
Legal descriptions using the government survey system are NOT generally used in - Answer : the original 13 states.
Real property can be converted to personal property by - Answer Severance
A landowner wishes to build a neighborhood grocery store on a busy street in an area zoned for residential use. Which of the following would MOST likely be used to obtain permission for this store? - Answer Conditional use permit or zoning variance.
Ordinances that specify construction standards are - Answer Building Codes
A couple owns an older home in a neighborhood that is becoming a commercial area. Because of the change in the use of the land, the couple can expect the value of their parcel to increase at some future time. This is an example of the principle of -
Answer anticipation
If an older building cannot be air-conditioned, it is an example of - Answer functional obsolesence
According to the principle of progression, a three-bedroom, one-story home is MOST
likely to bring the highest sales price if located in a neighborhood in which - Answer most homes are larger than the sale home
According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the following disclosures MUST appear in the ad EXCEPT the - Answer prepayment penalties and rebates.
The FHA functions MOST like - Answer an insurance company
In helping a buyer to select a lender, if the buyer believes he has good credit and his income is documentable as a salary and by tax returns, the licensee might recommend a mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT - Answer more variety of loan programs available.
A salesperson lists a property with a contract that allows for subagency and dual agency. The salesperson is - Answer an agent to the broker and a subagent to the principal.
An exclusive right to sell listing obtained by a broker associate belongs to - Answer the employing broker only
A broker, acting as agent for the seller, presents an offer to buy from the broker's former college roommate. The broker knows that the buyer will increase the amount Minnesota State Real Estate Test Review Rated 100% Correct!!
of the offer if the seller turns down the offer. When presenting the offer, the broker should - Answer tell the seller that the buyer will pay more.
Unrepresented buyers ask the licensee who listed the home whether they should order a property inspection as a part of their due diligence for the purchase of the home. Which of the following would be the most appropriate way for the listing agent to respond? - Answer If you feel it is in your best interest, please do so.
The Department of Housing and Urban Development estimates that most private homes built before 1978 contain potentially dangerous levels of lead. Because of this, some Federal agencies, such as FHA, - Answer require the buyer to acknowledge disclosure of the presence of any known lead paint.
A prospective buyer made an offer to purchase a property. The owner responded with a counteroffer. While the buyer was reviewing the counteroffer, the owner received a better offer. The owner can accept the second offer if - Answer the owner withdraws the counteroffer before it is accepted.
When a listing broker is preparing an Offer to Purchase for a buyer customer, contingencies involving inspections or approval by a third party should - Answer have short deadlines.
A company agrees to lease a property to be used as a gambling casino. State laws prohibit gambling. This particular contract would be legally defined as - Answer Void
A broker has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the broker has earned his commission when - Answer the seller accepts the offer
An equal housing opportunity notice MUST be - Answer displayed in the brokerage office.
Salesperson Susan was at the local coffee shop with some agents from other offices. The subject of commissions came up, and agents began to compare their commission rates. Susan should - Answer advise her friends this could constitute a violation of Sherman Antitrust Act.
A property management plan may serve different purposes for different owners, and generally has to strike a balance between preservation of the property's value and generation of income. Which of the following owners would MOST likely prefer a property manager who emphasizes maintenance of value over profitability? - Answer
Department of Housing and Urban Development
Which restrictive covenant would be considered illegal? - Answer A covenant that restricts the type of building that may be constructed.
Even with title insurance, the policyholder may still suffer losses arising from - Answer land use change due to zoning ordinances.
