To make a formal declaration that a statement is true without giving an oath is
a:
a) acknowledgement
b) affirmation
c) affidavit
d) deception - ANSWER Affirmation
*only affirmation stops short of an oath
After the terms of purchase had been agreed to and a grant deed had been
executed and delivered to the escrow agent, the title company learned that the
seller was not yet 18 years of age and was not emancipated. The grant deed is:
a) illegal
b) voidable
c) void
d) valid - ANSWER Void!
*capable parties are an essential element to the formation of a contract. so since
they are not legally capable, the deed is VOID.
Competing brokers who collectively set commissions based upon an agreed-to
minimum commission schedule are:
a) in violation of antitrust law
b) conducting aggressive business practices
c) not in violation of ethic laws
d) in violation of trust fund account requirements - ANSWER In violation of
antitrust law
,*any conspiracy such as described in this question is clearly in violation of
antitrust laws. These are laws enacted to prevent the formation of
Monopoly and encourage competition in the market.
When the due-on clause in a trust deed becomes triggered, the lender may recast
or call the loan, also referred to as:
a) subordination
b) waiver by proxy
c) reconciliation
d) acceleration - ANSWER Acceleration
*due-on clause accelerates the payoff of the loan
A real property land sales contract does NOT need to indicate:
a) legal description
b) how a dispute is to be resolved if there is a disagreement
c) existing loans encumbering the property
d) the length of time to repay the contract - ANSWER how a dispute is to be
resolved if there is a disagreement
*is good practice, but not required
The federal Loan Estimate is to be delivered to a borrower:
a) within 3 business days of a receipt of a consumer mortgage application
b) within 3 business days of closing
c) no more than 1 calendar day before the close of escrow
, d) at least 10 business days from the date of the loan commitment - ANSWER
within 3 business days of a receipt of a consumer mortgage application
*the federal Loan Estimate disclosure needs to be delivered by the date of
settlement and within 3 business days of the lenders receipt of a consumer
mortgage application.
A sellers broker is presented with an offer to purchase in writing on a listed
property. The broker thinks it will surely be unacceptable to the seller. Which of
the following may the broker
NOT do?
a) write new terms on the back of the offer and go back to the buyer for
approval
b) change the offer price to what the broker thinks the seller will accept, and
initial the change
c) present the offer to the seller as it is written
d) present the offer to the seller, but advise them not to accept it - ANSWER
change the offer price to what the broker thinks the seller will accept, and initial
the change
*the offer contract is between the principals.
Thus, only the buyer or seller may authorize changes to the contract.
The Federal Truth-in Lending Act: TILA; defines the annual percentage rate-
APR, as:
a) the sum of only the direct costs of credit paid by a borrower
b) the sum of all costs which the borrower needs to pay in order to get the loan
c) the relative cost of credit expressed in percentage terms
a:
a) acknowledgement
b) affirmation
c) affidavit
d) deception - ANSWER Affirmation
*only affirmation stops short of an oath
After the terms of purchase had been agreed to and a grant deed had been
executed and delivered to the escrow agent, the title company learned that the
seller was not yet 18 years of age and was not emancipated. The grant deed is:
a) illegal
b) voidable
c) void
d) valid - ANSWER Void!
*capable parties are an essential element to the formation of a contract. so since
they are not legally capable, the deed is VOID.
Competing brokers who collectively set commissions based upon an agreed-to
minimum commission schedule are:
a) in violation of antitrust law
b) conducting aggressive business practices
c) not in violation of ethic laws
d) in violation of trust fund account requirements - ANSWER In violation of
antitrust law
,*any conspiracy such as described in this question is clearly in violation of
antitrust laws. These are laws enacted to prevent the formation of
Monopoly and encourage competition in the market.
When the due-on clause in a trust deed becomes triggered, the lender may recast
or call the loan, also referred to as:
a) subordination
b) waiver by proxy
c) reconciliation
d) acceleration - ANSWER Acceleration
*due-on clause accelerates the payoff of the loan
A real property land sales contract does NOT need to indicate:
a) legal description
b) how a dispute is to be resolved if there is a disagreement
c) existing loans encumbering the property
d) the length of time to repay the contract - ANSWER how a dispute is to be
resolved if there is a disagreement
*is good practice, but not required
The federal Loan Estimate is to be delivered to a borrower:
a) within 3 business days of a receipt of a consumer mortgage application
b) within 3 business days of closing
c) no more than 1 calendar day before the close of escrow
, d) at least 10 business days from the date of the loan commitment - ANSWER
within 3 business days of a receipt of a consumer mortgage application
*the federal Loan Estimate disclosure needs to be delivered by the date of
settlement and within 3 business days of the lenders receipt of a consumer
mortgage application.
A sellers broker is presented with an offer to purchase in writing on a listed
property. The broker thinks it will surely be unacceptable to the seller. Which of
the following may the broker
NOT do?
a) write new terms on the back of the offer and go back to the buyer for
approval
b) change the offer price to what the broker thinks the seller will accept, and
initial the change
c) present the offer to the seller as it is written
d) present the offer to the seller, but advise them not to accept it - ANSWER
change the offer price to what the broker thinks the seller will accept, and initial
the change
*the offer contract is between the principals.
Thus, only the buyer or seller may authorize changes to the contract.
The Federal Truth-in Lending Act: TILA; defines the annual percentage rate-
APR, as:
a) the sum of only the direct costs of credit paid by a borrower
b) the sum of all costs which the borrower needs to pay in order to get the loan
c) the relative cost of credit expressed in percentage terms
