Maine Real Estate Exam questions with correct answers graded A+ 2023/2024

Maine Real Estate ExamTruth in Lending - correct answer Truth in Lending (otherwise known as Regulation Z) is intended to do away with deceptive financing tactics, especially those involving hidden costs- for example, advertising a $250 car lease as zero-down and then tacking a $1,200 upfront payment at the time of contract disguised as an "incidental" acquisition fee. Freehold estates include: - correct answer The distinctive characteristic of freehold estates is that they endure for an interminable duration. Constructive Notice - correct answer Once a document is recorded. Once recorded, subsequent buyers will be deemed to have received "Constructive Notice" regarding the document and its effect on the property in question. This could also be given by taking possession of a property. Actual Notice - correct answer When an individual has first-hand knowledge of something- for example, if a buyer has knowledge that someone has taken possession of the property that is for sale. Warehousing - correct answer The process whereby banks and other lenders make mortgage loans to consumers for the purpose of quickly selling those loans on the secondary market. Bundle of Rights - correct answer The rights one obtains with the ownership of real property. These include the right to enter, use, lease, sell, give the real estate away or the right to not do any of these things. Deed - correct answer Evidence of transfer Title - correct answer ownership Legal Title - correct answer Right to sell Equitable Title - correct answer Right to use & possess Listing - correct answer Employee contract where you are employed to find a buyer Economic Obsolescence - correct answer Depreciation from factors from outside the property lines (example: Airport, train) Promissory Note - correct answer Evidence of debt Lender's title insurance - correct answer Protects only the lender State of Maine Late Payment - correct answer Cannot exceed more then 4% of rent Subdivision Approval - correct answer Town planning board Maine, the minimum lot size where the lot is to accommodate a subsurface waste disposal system is: - correct answer 20,000 sq ft. Builder or Planner in Organized town in Maine needs a permit from: - correct answer CEO (Code Enforcement Officer) Builder or Planner in Unorganized town in Maine needs a permit from: - correct answer LUPC Except in the case of an emergency, how many hours notice must a landlord in Maine give to a tenant before entering the property? - correct answer 24 hours In Maine, the property disclosure form is to be delivered to a buyer: - correct answer Prior to or during the preparation of an offer Restrictive covenants are private restrictions on the use of property. Who may impose restrictive covenants? - correct answer A real estate developer Quitclaim deed with covenants - correct answer This provides guarantees about the title for as long as the previous owner has owned it When doing a CMA, a licensee makes adjustments to: - correct answer Comparables to make them similar to the subject property. Real estate - correct answer All estates and lesser interests in land and an existing business if real estate is a part of the business Real estate brokerage - correct answer Single instance of offering, attempting to conduct or conducting services on behalf of another for compensation, or with the expectation of receiving compensation, calculated to result in the transfer of an interest in real estate What are the maximum penalties that the Maine Real Estate Commission may impose for violating real estate license law? - correct answer $2000, plus the amount of compensation received in 6 the subject transaction, plus license may be revoked or suspended Each industry member of the commission must have been a broker or associate broker in Maine for at least how many years prior to appointment? - correct answer At least 5 years prior Maine Real Estate Commission - correct answer 4 industry members and 2 public (3 year terms) Affiliated licensee - correct answer A licensee who is authorized to engage in brokerage activity by and on behalf of a real estate brokerage agency Appointed agent - correct answer Affiliated licensee who is appointed by the designated broker of the affiliated licensee's real estate brokerage agency to act solely for a client of that real estate brokerage agency to the exclusion of other affiliated licensees of that real estate brokerage agency Brokerage agreement - correct answer A contract that establishes the relationships between the parties and the brokerage services to be performed