Real Estate Final Exam (150 Questions)
#1
A real estate licensee has a buyer agency agreement. What is the seller in this
situation? - answerA customer.
An optionor and an optionee make a contract for an option on a commercial piece of
property. If the optionee decides to exercise his option, when must he perform? -
answerHe must exercise his option under the terms of the option contract.
When can a landlord evict a disabled blind or disabled tenant from the premises? -
answerIf the tenant has loud parties, makes too much noise, and is constantly
disturbing other tenants
4. Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker
Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a
Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property.
What, if any, is the relationship between the buyer's broker, the seller and the listing
broker? - answerThere is not a relationship between the parties. Broker Carr represents
the Seller and Broker Smith represents the Buyer.
A buyer bought a property without telling the seller of his intended purpose for the
property. The contract contains no contingency clauses and it is a properly executed
contract. After the closing, the buyer is unable to obtain the zoning he needs for his
commercial project. What is the contract at this stage? - answerEnforceable
6. The seller and the buyer finally agreed to a purchase price of $203,500 with the
closing to occur on June 15. The taxes for the year in the amount of $2,500 have not
been paid by the seller. (Taxes are paid in arrears). How much would the tax proration
amount to, and how would it appear on a full settlement statement? Base your answer
on a 365 day year, and the buyer is responsible for the day of settlement. -
answer$1,130.14 debit the seller and credit the buyer
A seller listed his home for six months on February 26. On April 29, a buyer made an
offer on the property. The listing broker presented the offer to the seller on April 30. The
seller accepted the offer on May 1, with the closing to occur on June 15. Assuming the
closing took place on June 15, when did the listing expire? - answer6/15
The sellers listed their property for six months on February 26 for $522,500. They
agreed to pay the listing broker a 7% commission at closing on the agreed upon sale
price. A buyer made an offer on the property on March 29 for $510,000. The seller
, countered the offer on April 1 at $517,500, and the buyer accepted the counter offer
with the closing to occur on June 15. How much commission did the seller owe the
listing broker, and how would it appear on the settlement statement? - answer$36,225.
Debit the seller.
The seller and the buyer agreed to a purchase price of $270,000 with the closing to
occur on June 15. The seller's loan balance after the June 1 payment was $170,000.
with an interest rate of 6%.The monthly payment was $1,800 principal and interest.
What was the loan balance the day of closing, and how much interest did the seller owe
the bank? - answerLoan balance $170,000; interest due $425
The buyer and seller agreed to a purchase price of $310,500. The buyer received an
80% loan. How much was the buyer's loan and how did it appear on the settlement
statement? - answer$ 248,400. Credit the buyer only.
A home improvement company was negotiating with a homeowner to add on two rooms
to a home. The company agreed to take a second mortgage as long as the homeowner
also included the rest of the property in the loan. The company and the homeowner
agreed to a price and the company provided the necessary disclosure form on Monday
and the homeowner signed the agreement at noon the following day. Assuming that the
week had five business days, until what time could the homeowner rescind the loan? -
answerFriday, midnight (Three business day period)
The seller under a land contract is called - answerThe vendor
On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700. How
long did he have the loan? - answer42 months
Are recording fees and title insurance premiums part of the Truth in Lending statement?
- answerNo, These are considered legal, not financing fees and therefore are not part of
the Truth in Lending statement.
A mortgage broker - answerarranges loans between borrowers and investors.
The Smiths' purchased a residence for $750,000. They made a down payment of
$150,000 and agreed to assume the seller's existing mortgage, which had a current
balance of $230,000. The Smiths' financed the remaining $370,000 of the purchase
price by executing a second mortgage whereby the seller became a mortgagee. This
type of loan is called a - answerpart purchase mortgage
On a $500,000 loan the borrower is required to pay two points. How much does the
borrower have to pay the lender? - answer$510,000.00
The discount points charged by a lender on a federal VA or FHA loan are a percentage
of the - answerloan amount.
#1
A real estate licensee has a buyer agency agreement. What is the seller in this
situation? - answerA customer.
An optionor and an optionee make a contract for an option on a commercial piece of
property. If the optionee decides to exercise his option, when must he perform? -
answerHe must exercise his option under the terms of the option contract.
When can a landlord evict a disabled blind or disabled tenant from the premises? -
answerIf the tenant has loud parties, makes too much noise, and is constantly
disturbing other tenants
4. Broker Carr, with ABC Real Estate Company, listed the property with a seller. Broker
Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that he was a
Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of the property.
What, if any, is the relationship between the buyer's broker, the seller and the listing
broker? - answerThere is not a relationship between the parties. Broker Carr represents
the Seller and Broker Smith represents the Buyer.
A buyer bought a property without telling the seller of his intended purpose for the
property. The contract contains no contingency clauses and it is a properly executed
contract. After the closing, the buyer is unable to obtain the zoning he needs for his
commercial project. What is the contract at this stage? - answerEnforceable
6. The seller and the buyer finally agreed to a purchase price of $203,500 with the
closing to occur on June 15. The taxes for the year in the amount of $2,500 have not
been paid by the seller. (Taxes are paid in arrears). How much would the tax proration
amount to, and how would it appear on a full settlement statement? Base your answer
on a 365 day year, and the buyer is responsible for the day of settlement. -
answer$1,130.14 debit the seller and credit the buyer
A seller listed his home for six months on February 26. On April 29, a buyer made an
offer on the property. The listing broker presented the offer to the seller on April 30. The
seller accepted the offer on May 1, with the closing to occur on June 15. Assuming the
closing took place on June 15, when did the listing expire? - answer6/15
The sellers listed their property for six months on February 26 for $522,500. They
agreed to pay the listing broker a 7% commission at closing on the agreed upon sale
price. A buyer made an offer on the property on March 29 for $510,000. The seller
, countered the offer on April 1 at $517,500, and the buyer accepted the counter offer
with the closing to occur on June 15. How much commission did the seller owe the
listing broker, and how would it appear on the settlement statement? - answer$36,225.
Debit the seller.
The seller and the buyer agreed to a purchase price of $270,000 with the closing to
occur on June 15. The seller's loan balance after the June 1 payment was $170,000.
with an interest rate of 6%.The monthly payment was $1,800 principal and interest.
What was the loan balance the day of closing, and how much interest did the seller owe
the bank? - answerLoan balance $170,000; interest due $425
The buyer and seller agreed to a purchase price of $310,500. The buyer received an
80% loan. How much was the buyer's loan and how did it appear on the settlement
statement? - answer$ 248,400. Credit the buyer only.
A home improvement company was negotiating with a homeowner to add on two rooms
to a home. The company agreed to take a second mortgage as long as the homeowner
also included the rest of the property in the loan. The company and the homeowner
agreed to a price and the company provided the necessary disclosure form on Monday
and the homeowner signed the agreement at noon the following day. Assuming that the
week had five business days, until what time could the homeowner rescind the loan? -
answerFriday, midnight (Three business day period)
The seller under a land contract is called - answerThe vendor
On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700. How
long did he have the loan? - answer42 months
Are recording fees and title insurance premiums part of the Truth in Lending statement?
- answerNo, These are considered legal, not financing fees and therefore are not part of
the Truth in Lending statement.
A mortgage broker - answerarranges loans between borrowers and investors.
The Smiths' purchased a residence for $750,000. They made a down payment of
$150,000 and agreed to assume the seller's existing mortgage, which had a current
balance of $230,000. The Smiths' financed the remaining $370,000 of the purchase
price by executing a second mortgage whereby the seller became a mortgagee. This
type of loan is called a - answerpart purchase mortgage
On a $500,000 loan the borrower is required to pay two points. How much does the
borrower have to pay the lender? - answer$510,000.00
The discount points charged by a lender on a federal VA or FHA loan are a percentage
of the - answerloan amount.
