The CE Shop National Exam
Addendum Correct answers When Dashiell received the purchase
offer for hishe was surprised to see a page added to the contract
bungalow,
requesting
attorney that an
review the contract. What is Dashiell
looking at?
Place a lien on the
property
Unpaid taxes become a lien on real estate. Correct answers What
might the
government do if property owners fail to pay taxes on their
property?
Ajit may be liable if he operates in a state that requires licensees to make a
reasonable
effort to discover adverse material
facts.
Licensees must follow state laws regarding disclosure of all material facts,
there's no distinction between disclosure of material facts or adverse
but typically
may be liable
material facts.even
Ajit if the seller didn't disclose the fact, depending on state
law. Correct
answers A former client has filed a formal complaint against Ajit, claiming
he failed disclose
properly to a material fact that the seller didn't disclose.
Which of these
statements about Ajit's liability is
true?
1,42
5
Only finished above-ground space should be counted in Bonnie's MLS
listing. That
means the square footage of the upper floor plus the main floor (minus the
laundry area). Bonnie should report 1,425 square feet (450 + 1,200 -
unfinished
225). Correct
answers Bonnie is calculating the square footage of a listing. The upper
level of
home is the
450 square feet. The main floor is 1,200 square feet, including an
unfinished
laundry area that's 225 square feet. The 1,200-square-foot basement
is finished.
Bonnie's MLS system disregards below-grade square footage. What square
footagemention
Bonnie will in her MLS listing and marketing
materials?
Indestructibil
ity
Indestructibility is the physical characteristic that states that while
deteriorate,
improvements land
maycan't be destroyed. Correct answers Sander and Ginny
bought ansite
industrial old and plan to get grant money to put an environmental
education
the center
site. There areona few structures on the property, but they are in
disrepair,
likely andexpensive
be less it will to tear them down and build new than to
rehabilitate
However, thethem.
new owners are sure that they've made a great investment
because
land is inthe
great shape. This reflects which physical characteristic of real
property?
, $367,687.
80
To find the total amount paid back, multiply the monthly payment
($2,042.71)
total numberby ofthe
payments (180 = 12 payments/year x 15 years). The total
paid back is Correct answers A buyer with a 15-year, $250,000 loan at a
$367,687.80.
5.5%has
rate interest
a monthly principal and interest payment totaling $2,042.71.
What's the
amount thetotal
borrower will pay back over the life of
the loan?
lower initial interest rate Correct answers What attracts borrowers to
adjustable rate
mortgages
?
98,00
0
Minimum rent = Operating expenses + Owner expenses + ROI Margin. ROI
margin
the is
owner's initial investment x ROI. In this example $32,000 ($400,000
x .08). Therent to achieve the owner's goals is $98,000. Correct
minimum
answers
property A rentalpurchased a property for $400,000 and pays $36,000 in
owner
expenses, plus $30,000 in operating expenses. The owner would like to
ownership
achieve
of an ROIthe minimum annual rent that would
8%. What's
accomplish this?
Reduced consumer confidence makes new buyers wary of
purchasing and
homeowners hesitant to trade up. Correct answers Many market
conditions
housing impact
prices. Which of the following is a true
statement?
Identify data
needed.
The first step is to state the problem so the appraiser can then identify the
data thatCorrect
needed. is answers Identifying the purpose of the appraisal leads the
appraiser
do what to
next?
$52,500 Correct answers An owner purchased a rental property for
$750,000.
annual cash What
flow would result in a return on investment
(ROI) of 7%?
Rescin
d
When two parties agree to back out of a contract, they're agreeing to
rescind
contract.theCorrect answers Stan decides to not sell his property to Crandall,
even after
they've signed a legal sales contract. Crandall found a property he likes
better, soagree
mutually they to the
contract.
Develop, implement, and train firm members on policies and
procedures.
Having policies and procedures in place and training staff on them may
be the best
preventive measure. Correct answers You're a real estate broker
supervising 24
licensees. What's the most effective way for you to protect your firm
from lawsuits?
Addendum Correct answers When Dashiell received the purchase
offer for hishe was surprised to see a page added to the contract
bungalow,
requesting
attorney that an
review the contract. What is Dashiell
looking at?
Place a lien on the
property
Unpaid taxes become a lien on real estate. Correct answers What
might the
government do if property owners fail to pay taxes on their
property?
Ajit may be liable if he operates in a state that requires licensees to make a
reasonable
effort to discover adverse material
facts.
Licensees must follow state laws regarding disclosure of all material facts,
there's no distinction between disclosure of material facts or adverse
but typically
may be liable
material facts.even
Ajit if the seller didn't disclose the fact, depending on state
law. Correct
answers A former client has filed a formal complaint against Ajit, claiming
he failed disclose
properly to a material fact that the seller didn't disclose.
Which of these
statements about Ajit's liability is
true?
1,42
5
Only finished above-ground space should be counted in Bonnie's MLS
listing. That
means the square footage of the upper floor plus the main floor (minus the
laundry area). Bonnie should report 1,425 square feet (450 + 1,200 -
unfinished
225). Correct
answers Bonnie is calculating the square footage of a listing. The upper
level of
home is the
450 square feet. The main floor is 1,200 square feet, including an
unfinished
laundry area that's 225 square feet. The 1,200-square-foot basement
is finished.
Bonnie's MLS system disregards below-grade square footage. What square
footagemention
Bonnie will in her MLS listing and marketing
materials?
Indestructibil
ity
Indestructibility is the physical characteristic that states that while
deteriorate,
improvements land
maycan't be destroyed. Correct answers Sander and Ginny
bought ansite
industrial old and plan to get grant money to put an environmental
education
the center
site. There areona few structures on the property, but they are in
disrepair,
likely andexpensive
be less it will to tear them down and build new than to
rehabilitate
However, thethem.
new owners are sure that they've made a great investment
because
land is inthe
great shape. This reflects which physical characteristic of real
property?
, $367,687.
80
To find the total amount paid back, multiply the monthly payment
($2,042.71)
total numberby ofthe
payments (180 = 12 payments/year x 15 years). The total
paid back is Correct answers A buyer with a 15-year, $250,000 loan at a
$367,687.80.
5.5%has
rate interest
a monthly principal and interest payment totaling $2,042.71.
What's the
amount thetotal
borrower will pay back over the life of
the loan?
lower initial interest rate Correct answers What attracts borrowers to
adjustable rate
mortgages
?
98,00
0
Minimum rent = Operating expenses + Owner expenses + ROI Margin. ROI
margin
the is
owner's initial investment x ROI. In this example $32,000 ($400,000
x .08). Therent to achieve the owner's goals is $98,000. Correct
minimum
answers
property A rentalpurchased a property for $400,000 and pays $36,000 in
owner
expenses, plus $30,000 in operating expenses. The owner would like to
ownership
achieve
of an ROIthe minimum annual rent that would
8%. What's
accomplish this?
Reduced consumer confidence makes new buyers wary of
purchasing and
homeowners hesitant to trade up. Correct answers Many market
conditions
housing impact
prices. Which of the following is a true
statement?
Identify data
needed.
The first step is to state the problem so the appraiser can then identify the
data thatCorrect
needed. is answers Identifying the purpose of the appraisal leads the
appraiser
do what to
next?
$52,500 Correct answers An owner purchased a rental property for
$750,000.
annual cash What
flow would result in a return on investment
(ROI) of 7%?
Rescin
d
When two parties agree to back out of a contract, they're agreeing to
rescind
contract.theCorrect answers Stan decides to not sell his property to Crandall,
even after
they've signed a legal sales contract. Crandall found a property he likes
better, soagree
mutually they to the
contract.
Develop, implement, and train firm members on policies and
procedures.
Having policies and procedures in place and training staff on them may
be the best
preventive measure. Correct answers You're a real estate broker
supervising 24
licensees. What's the most effective way for you to protect your firm
from lawsuits?
