EXAM WITH CORRECT ANSWERS
When the buyer checks "yes" to dual agency on a Buyer Representation
agreement, what does the buyer actually agree to? - CORRECT ANSWERS-By
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? - CORRECT ANSWERS-9%
A licensee tells a buyer the basement of his listed property does not leak
when he knows that it does leak. This is an example of - CORRECT ANSWERS-
fraud
If any change is made to the escrow account, the sponsoring broker must
notify ____________ with ten days. - CORRECT ANSWERS-The Division
A dual agent may disclose - CORRECT ANSWERS-material facts about the
property
______________ are permitted in Illinois following a short sale unless the lender
expressly waives its right to the deficiency in the short sale agreement. -
CORRECT ANSWERS-deficiency judgments
The state and county transfer taxes are paid by ________________. - CORRECT
ANSWERS-the seller
The three major types of listings are open, exclusive right to sale, and -
CORRECT ANSWERS-exclusive agency
_____________ is equal to the sale price minus the value of any conveyed
personal property and any mortgage amount that survives the conveyance. -
CORRECT ANSWERS-Taxable consideration
what is the best response to questions about neighborhood crime statistics? -
CORRECT ANSWERS-
What is the difference between market value and market price, if any? -
CORRECT ANSWERS-Market value is an estimate; market price is the price at
which a property sold.
, Which of the following is true of an amortizing loan? - CORRECT ANSWERS-
Part of each periodic payment is applied to repayment of the loan balance in
advance and part is applied to payment of interest in arrears.
A contract in which both parties exchange promises is a: - CORRECT
ANSWERS-bilateral contract
What technique is used to elicit "yes" responses from a client? - CORRECT
ANSWERS-Keep 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: - CORRECT
ANSWERS-may 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: - CORRECT
ANSWERS-the type of improvements best suited for the land
How do you stay in control of a call from a prospect? - CORRECT ANSWERS-
Asking 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? - CORRECT ANSWERS-Advise 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%? - CORRECT ANSWERS-$840
Which of the following is considered a fixed operating expense? - CORRECT
ANSWERS-insurance premiums
Which statement is true about a comparative market analysis (CMA)? -
CORRECT ANSWERS-It 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? - CORRECT ANSWERS-12 credit
hours
An interest in real estate that includes the right to possess is known as: -
CORRECT ANSWERS-An estate in land