Oregon Real Estate Practice Exam Rated A+
A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to - ANSWER-demand immediate payment of the entire
note.
A broker did NOT have a written independent contractor agreement with his
salesperson. While showing homes to a family, the salesperson was involved in a car
accident in which a child in her car was injured. Could the broker be held liable in this
situation, and why? - ANSWER-Yes; the lack of an independent contractor agreement
may classify the salesperson an employee and an employer may be held liable for the
torts of an employee.
A broker has brought a ready, willing, and able buyer to a seller. In MOST listing
contracts, the broker has earned his commission when - ANSWER-the seller accepts
the offer.
A broker has signed a listing contract for the sale of a home. Which of the following
could make this contract voidable? - ANSWER-The seller is heavily under the influence
of alcohol at the time of signing.
A broker is developing a checklist to be used by licensees during the time period
between writing a contract and closing. Which of the following items should be included
in the "Property Inspections" section? - ANSWER-A place to list repairs, who will pay,
and when repairs are to be completed.
A broker is showing a buyer one of his residential listings. The buyer says he wants to
establish a day care center for seniors in the property. The property has been used as a
day care center for no more than five children. How should the broker advise this
buyer? - ANSWER-Provide the buyer with contact information for the local planning and
zoning office to confirm the zoning and determine whether it permits his use.
A broker is teaching newly hired salespersons the correct way to complete a listing
agreement form. The broker is attempting to show the value of putting the correct
property address on the listing. The BEST visual aid to help them learn how to do so
accurately would be - ANSWER-a subdivision plat
A broker learns that one of the licensees under his supervision, and the owners of a
listed property, have worked out a scheme to withdraw a property from the market
whenever a showing is requested by any buyer who seems to be from a foreign country.
What is the most important action for the broker to take in this situation? - ANSWER-
develop stringent policies for the firm, establishing the criteria that may be used to
determine which properties are shown to prospects.
A broker represents a group of investors who purchase single family residences when
they can be found at very low prices. Their offers are typically made with $500 deposits
, and cash closings within 7 days of acceptance of the offers. When the last property
closed, the investors suggested the broker keep the deposit money to be used for their
next purchase, as yet not identified. What must the broker do with these deposit funds?
- ANSWER-Return them to the purchasers.
A broker supplies the financing for a project to build condominiums with the stipulation
that he has the exclusive right to sell the completed condos. Which of the following
BEST describes this relationship? - ANSWER-Agency coupled with an interest.
A broker, acting as agent for the seller, presents an offer to buy from the broker's former
college roommate. The broker knows that the buyer will increase the amount of the offer
if the seller turns down the offer. When presenting the offer, the broker should -
ANSWER-tell the seller that the buyer will pay more.
A buyer made an offer on an apartment building. The offer was not acceptable to the
seller. When the buyer refused to accept the seller's counteroffer, the seller agreed to
accept the original offer. What MUST happen now? - ANSWER-Nothing; by making a
counteroffer the seller released the buyer from the original offer.
A buyer wants to purchase a home for $60,000. The lender appraises the home for
$58,000 and offers to finance it with an 80% loan-to-value loan, charging a loan
origination fee of 1.5 points. How much will the buyer's loan origination fee be? -
ANSWER-$696
A company agrees to lease a property to be used as a gambling casino. State laws
prohibit gambling. This particular contract would be legally defined as - ANSWER-void
A competitive market analysis is MOST often used for - ANSWER-setting a listing price.
A contract for the sale of a home has been signed by both parties. This contract will
remain executory until - ANSWER-the transaction has closed.
A couple bought a rental house for $195,000. Its assessed value was $180,000. If the
tax rate is $1.50 per $100 of assessed value, what is the monthly contribution the lender
will REQUIRE for taxes? Round to the nearest cent. - ANSWER-$225.00
A couple owns an older home in a neighborhood that is becoming a commercial area.
Because of the change in the use of the land, the couple can expect the value of their
parcel to increase at some future time. This is an example of the principle of -
ANSWER-anticipation
A distinguishing characteristic of owning property by land trust is that - ANSWER-the
identity of the legal owner is kept confidential=\
A formal appraisal will ALWAYS be REQUIRED when the - ANSWER-lender wants to
sell the mortgage to the secondary market.
A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to - ANSWER-demand immediate payment of the entire
note.
A broker did NOT have a written independent contractor agreement with his
salesperson. While showing homes to a family, the salesperson was involved in a car
accident in which a child in her car was injured. Could the broker be held liable in this
situation, and why? - ANSWER-Yes; the lack of an independent contractor agreement
may classify the salesperson an employee and an employer may be held liable for the
torts of an employee.
A broker has brought a ready, willing, and able buyer to a seller. In MOST listing
contracts, the broker has earned his commission when - ANSWER-the seller accepts
the offer.
A broker has signed a listing contract for the sale of a home. Which of the following
could make this contract voidable? - ANSWER-The seller is heavily under the influence
of alcohol at the time of signing.
A broker is developing a checklist to be used by licensees during the time period
between writing a contract and closing. Which of the following items should be included
in the "Property Inspections" section? - ANSWER-A place to list repairs, who will pay,
and when repairs are to be completed.
A broker is showing a buyer one of his residential listings. The buyer says he wants to
establish a day care center for seniors in the property. The property has been used as a
day care center for no more than five children. How should the broker advise this
buyer? - ANSWER-Provide the buyer with contact information for the local planning and
zoning office to confirm the zoning and determine whether it permits his use.
A broker is teaching newly hired salespersons the correct way to complete a listing
agreement form. The broker is attempting to show the value of putting the correct
property address on the listing. The BEST visual aid to help them learn how to do so
accurately would be - ANSWER-a subdivision plat
A broker learns that one of the licensees under his supervision, and the owners of a
listed property, have worked out a scheme to withdraw a property from the market
whenever a showing is requested by any buyer who seems to be from a foreign country.
What is the most important action for the broker to take in this situation? - ANSWER-
develop stringent policies for the firm, establishing the criteria that may be used to
determine which properties are shown to prospects.
A broker represents a group of investors who purchase single family residences when
they can be found at very low prices. Their offers are typically made with $500 deposits
, and cash closings within 7 days of acceptance of the offers. When the last property
closed, the investors suggested the broker keep the deposit money to be used for their
next purchase, as yet not identified. What must the broker do with these deposit funds?
- ANSWER-Return them to the purchasers.
A broker supplies the financing for a project to build condominiums with the stipulation
that he has the exclusive right to sell the completed condos. Which of the following
BEST describes this relationship? - ANSWER-Agency coupled with an interest.
A broker, acting as agent for the seller, presents an offer to buy from the broker's former
college roommate. The broker knows that the buyer will increase the amount of the offer
if the seller turns down the offer. When presenting the offer, the broker should -
ANSWER-tell the seller that the buyer will pay more.
A buyer made an offer on an apartment building. The offer was not acceptable to the
seller. When the buyer refused to accept the seller's counteroffer, the seller agreed to
accept the original offer. What MUST happen now? - ANSWER-Nothing; by making a
counteroffer the seller released the buyer from the original offer.
A buyer wants to purchase a home for $60,000. The lender appraises the home for
$58,000 and offers to finance it with an 80% loan-to-value loan, charging a loan
origination fee of 1.5 points. How much will the buyer's loan origination fee be? -
ANSWER-$696
A company agrees to lease a property to be used as a gambling casino. State laws
prohibit gambling. This particular contract would be legally defined as - ANSWER-void
A competitive market analysis is MOST often used for - ANSWER-setting a listing price.
A contract for the sale of a home has been signed by both parties. This contract will
remain executory until - ANSWER-the transaction has closed.
A couple bought a rental house for $195,000. Its assessed value was $180,000. If the
tax rate is $1.50 per $100 of assessed value, what is the monthly contribution the lender
will REQUIRE for taxes? Round to the nearest cent. - ANSWER-$225.00
A couple owns an older home in a neighborhood that is becoming a commercial area.
Because of the change in the use of the land, the couple can expect the value of their
parcel to increase at some future time. This is an example of the principle of -
ANSWER-anticipation
A distinguishing characteristic of owning property by land trust is that - ANSWER-the
identity of the legal owner is kept confidential=\
A formal appraisal will ALWAYS be REQUIRED when the - ANSWER-lender wants to
sell the mortgage to the secondary market.
