Illinois Colibri Final Exam
Which statement is true about the Junk Fax Prevention Act is False? - ANSWER-
Licensees must stop faxes upon request.
What accounting tools are used to determine a buyer's ability to pay off a loan? -
ANSWER-Income Ratio and Debt Ratio
John is doing a CMA for his potential sellers. He has collected the data on the seller's
property and collected data on a number of comparables. Now he's ready to make his
price adjustments. Which statement is true? - ANSWER-If a comparable lacks a feature
the subject property has, he will subtract the value of that feature from the comparable.
What technique is used to elicit "yes" responses from a client? - ANSWER-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: - ANSWER-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: - ANSWER-the type of
improvements best suited for the land
How do you stay in control of a call from a prospect? - ANSWER-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? -
ANSWER-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%? - ANSWER-$840
Which of the following is considered a fixed operating expense? - ANSWER-insurance
premiums
Which statement is true about a comparative market analysis (CMA)? - ANSWER-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? - ANSWER-12 credit hours
, An interest in real estate that includes the right to possess is known as: - ANSWER-An
estate in land
Under Title III of this Act, discrimination in commercial properties is prohibited. To which
Act does this apply? - ANSWER-American With Disabilities Act
When the buyer checks "yes" to dual agency on a Buyer Representation agreement,
what does the buyer actually agree to? - ANSWER-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? - ANSWER-9%
What is the difference between market value and market price, if any? - ANSWER-
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? - ANSWER-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: - ANSWER-bilateral contract
When two adjacent pieces of property are joined together, the value of the one larger
parcel may be greater than the value of the two separately. Which principle of value is
this? - ANSWER-Assemblage.
"Realestate" includes such things as: - ANSWER-fences, sidewalks, and piers on a
parcel of land.
If an owner of real property dies without leaving a will and with no legal heirs, what will
generally happen to the property? - ANSWER-It will revert to the state or county by
escheat.
Radon gas can be traced back to: - ANSWER-groundwater pollutants
RESPA applies to all of the following EXCEPT which? - ANSWER-Seller-financed loan
or a Loan involving a first mortgage
Which duty an agent has to his/her client never stops? - ANSWER-confidentiality
When does the seller receive a copy of the listing agreement? - ANSWER-At the time of
signing.
Which statement is true about the Junk Fax Prevention Act is False? - ANSWER-
Licensees must stop faxes upon request.
What accounting tools are used to determine a buyer's ability to pay off a loan? -
ANSWER-Income Ratio and Debt Ratio
John is doing a CMA for his potential sellers. He has collected the data on the seller's
property and collected data on a number of comparables. Now he's ready to make his
price adjustments. Which statement is true? - ANSWER-If a comparable lacks a feature
the subject property has, he will subtract the value of that feature from the comparable.
What technique is used to elicit "yes" responses from a client? - ANSWER-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: - ANSWER-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: - ANSWER-the type of
improvements best suited for the land
How do you stay in control of a call from a prospect? - ANSWER-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? -
ANSWER-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%? - ANSWER-$840
Which of the following is considered a fixed operating expense? - ANSWER-insurance
premiums
Which statement is true about a comparative market analysis (CMA)? - ANSWER-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? - ANSWER-12 credit hours
, An interest in real estate that includes the right to possess is known as: - ANSWER-An
estate in land
Under Title III of this Act, discrimination in commercial properties is prohibited. To which
Act does this apply? - ANSWER-American With Disabilities Act
When the buyer checks "yes" to dual agency on a Buyer Representation agreement,
what does the buyer actually agree to? - ANSWER-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? - ANSWER-9%
What is the difference between market value and market price, if any? - ANSWER-
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? - ANSWER-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: - ANSWER-bilateral contract
When two adjacent pieces of property are joined together, the value of the one larger
parcel may be greater than the value of the two separately. Which principle of value is
this? - ANSWER-Assemblage.
"Realestate" includes such things as: - ANSWER-fences, sidewalks, and piers on a
parcel of land.
If an owner of real property dies without leaving a will and with no legal heirs, what will
generally happen to the property? - ANSWER-It will revert to the state or county by
escheat.
Radon gas can be traced back to: - ANSWER-groundwater pollutants
RESPA applies to all of the following EXCEPT which? - ANSWER-Seller-financed loan
or a Loan involving a first mortgage
Which duty an agent has to his/her client never stops? - ANSWER-confidentiality
When does the seller receive a copy of the listing agreement? - ANSWER-At the time of
signing.
