Colibri Practice Test Questions and Answers Already Passed

Colibri Practice Test Questions and Answers Already Passed 3. In real estate, which of the following is correct about the term "title?" Taxes and insurance are often prepaid at closing to establish the escrow account. On which page of the Closing Disclosure form will the buyer see an accounting of the escrow account set up? Page two, under other costs On page two of the form, other costs are itemized for buyers and sellers. Taxes, prepaids, and initial escrow payment at closing - usually two months' worth, are paid by the buyer and shown on page 2. How is the sales price reflected on the closing form for the buyer and the seller? The sales price is a debit to the buyer and a credit to the seller The seller receives the sales price less adjustment at closings or debit. The buyer pays the sales price less adjustment for deposit and loans. Which clause in a deed defines the ownership taken by the grantee and clarifies the purpose of the deed? The Habendum Clause Also known as the "to have and to hold" the Habendum Clause. This is the clause that describes the rights being transferred. Exceptions and reservations are included in this clause. When a cap rate used with income capitalization is high, the following relationship with sales price exists: risk and cap rate are higher, the sales price is usually lower. Cap rate is likened to the risk factor when purchasing an investment property - a high cap rate indicates high risk, and often the sales price is lower. Property is located next to a busy freeway; semi-trucks use the freeway all night long. After two years on the market, the seller reduced his price by 25%. Which loss of value has occurred? Economic or external obsolescence Economic or external obsolescence is a loss of value outside of the perimeter boundary of the property, beyond the owner's control, and almost always incurable. A homestead exemption in Florida is available to those who qualify and file documents making the Florida home a primary residence. The base homestead exemption is: $25,000 The base homestead exemption is $25,000. There is an additional $25,000 available for qualified property owners; however, the additional $25,000 does NOT apply to school taxes. A closing is March 5 for a rental property with an annual tax bill of $2800. Calculate and show the debit and credits for the tax proration between the buyer and seller using the 365-day method, the day of closing belongs to the buyer. debit seller $483.29; credit buyer $483.29 The purpose of proration is to assign the amount owed to the responsible party. The taxes will be paid by the buyer at the end of the year. The buyer needs money from the seller for the days that the seller owned. $2800/365 = $7.67 per day. Jan = 31 days, Feb. = 28 days and March = 4 day total 63 X $7.67 = $483.21 that the seller owes for the time he owned. NOTE: The amount taken from the seller is given to the buyer - it is the same amount. Use 3 decimal places and don't clear the calculator between steps. John is a sales associate who has complaints against him for making false statements about the property and for giving advice about the purchase contract. This is the third time these same violations have been investigated. If John is found guilty of violating these two practices at the formal hearing, the maximum fine John can face is: 10,000 For second and subsequent violations, $2500 to $5000 fine and suspension for up to six years or revocation. The fine is $5000 maximum for each offense. A deed and a real estate purchase agreement would not be considered valid without: an adequate legal description. The property must be accurately described in any purchase agreement and deed, so there is no question about what is being transferred. In a deed, the legal