Real Estate Final Exam question with
answers
A real estate licensee has a buyer agency agreement. What is the seller in this
situation? - -A customer.
-An optionor and an optionee make a contract for an option on a commercial piece
of property. If the optionee decides to exercise his option, when must he perform? -
-He must exercise his option under the terms of the option contract.
-When can a landlord evict a disabled blind or disabled tenant from the premises? -
-If the tenant has loud parties, makes too much noise, and is constantly disturbing
other tenants
-4. Broker Carr, with ABC Real Estate Company, listed the property with a seller.
Broker Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that
he was a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of
the property. What, if any, is the relationship between the buyer's broker, the seller
and the listing broker? - -There is not a relationship between the parties. Broker
Carr represents the Seller and Broker Smith represents the Buyer.
-A buyer bought a property without telling the seller of his intended purpose for the
property. The contract contains no contingency clauses and it is a properly
executed contract. After the closing, the buyer is unable to obtain the zoning he
needs for his commercial project. What is the contract at this stage? - -Enforceable
-6. The seller and the buyer finally agreed to a purchase price of $203,500 with the
closing to occur on June 15. The taxes for the year in the amount of $2,500 have not
been paid by the seller. (Taxes are paid in arrears). How much would the tax
proration amount to, and how would it appear on a full settlement statement? Base
your answer on a 365 day year, and the buyer is responsible for the day of
settlement. - -$1,130.14 debit the seller and credit the buyer
-A seller listed his home for six months on February 26. On April 29, a buyer made
an offer on the property. The listing broker presented the offer to the seller on April
30. The seller accepted the offer on May 1, with the closing to occur on June 15.
Assuming the closing took place on June 15, when did the listing expire? - -6/15
-The sellers listed their property for six months on February 26 for $522,500. They
agreed to pay the listing broker a 7% commission at closing on the agreed upon
sale price. A buyer made an offer on the property on March 29 for $510,000. The
seller countered the offer on April 1 at $517,500, and the buyer accepted the
counter offer with the closing to occur on June 15. How much commission did the
seller owe the listing broker, and how would it appear on the settlement statement?
- -$36,225. Debit the seller.
-The seller and the buyer agreed to a purchase price of $270,000 with the closing
to occur on June 15. The seller's loan balance after the June 1 payment was
, $170,000. with an interest rate of 6%.The monthly payment was $1,800 principal
and interest. What was the loan balance the day of closing, and how much interest
did the seller owe the bank? - -Loan balance $170,000; interest due $425
-The buyer and seller agreed to a purchase price of $310,500. The buyer received
an 80% loan. How much was the buyer's loan and how did it appear on the
settlement statement? - -$ 248,400. Credit the buyer only.
-A home improvement company was negotiating with a homeowner to add on two
rooms to a home. The company agreed to take a second mortgage as long as the
homeowner also included the rest of the property in the loan. The company and the
homeowner agreed to a price and the company provided the necessary disclosure
form on Monday and the homeowner signed the agreement at noon the following
day. Assuming that the week had five business days, until what time could the
homeowner rescind the loan? - -Friday, midnight (Three business day period)
-The seller under a land contract is called - -The vendor
-On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700.
How long did he have the loan? - -42 months
-Are recording fees and title insurance premiums part of the Truth in Lending
statement? - -No, These are considered legal, not financing fees and therefore are
not part of the Truth in Lending statement.
-A mortgage broker - -arranges loans between borrowers and investors.
-The Smiths' purchased a residence for $750,000. They made a down payment of
$150,000 and agreed to assume the seller's existing mortgage, which had a current
balance of $230,000. The Smiths' financed the remaining $370,000 of the purchase
price by executing a second mortgage whereby the seller became a mortgagee.
This type of loan is called a - -part purchase mortgage
-On a $500,000 loan the borrower is required to pay two points. How much does
the borrower have to pay the lender? - -$510,000.00
-The discount points charged by a lender on a federal VA or FHA loan are a
percentage of the - -loan amount.
-An increase in the availability of money would lead to which effect? - -Interest
rates would go down.
-When the amortized payment of a mortgage remains constant over the period of
the loan but leaves an outstanding balance to be paid at the end, this payment is
called - -a balloon payment.
-In an installment land contract, what type of title did the seller retain? - -Legal
-Which of the following is true of a second mortgage? - -It is usually issued at a
higher rate of interest.
answers
A real estate licensee has a buyer agency agreement. What is the seller in this
situation? - -A customer.
-An optionor and an optionee make a contract for an option on a commercial piece
of property. If the optionee decides to exercise his option, when must he perform? -
-He must exercise his option under the terms of the option contract.
-When can a landlord evict a disabled blind or disabled tenant from the premises? -
-If the tenant has loud parties, makes too much noise, and is constantly disturbing
other tenants
-4. Broker Carr, with ABC Real Estate Company, listed the property with a seller.
Broker Smith, with XYZ Real Estate Company, called Broker Carr, and disclosed that
he was a Buyer Agent. Broker Smith wrote a contract with a buyer for the sale of
the property. What, if any, is the relationship between the buyer's broker, the seller
and the listing broker? - -There is not a relationship between the parties. Broker
Carr represents the Seller and Broker Smith represents the Buyer.
-A buyer bought a property without telling the seller of his intended purpose for the
property. The contract contains no contingency clauses and it is a properly
executed contract. After the closing, the buyer is unable to obtain the zoning he
needs for his commercial project. What is the contract at this stage? - -Enforceable
-6. The seller and the buyer finally agreed to a purchase price of $203,500 with the
closing to occur on June 15. The taxes for the year in the amount of $2,500 have not
been paid by the seller. (Taxes are paid in arrears). How much would the tax
proration amount to, and how would it appear on a full settlement statement? Base
your answer on a 365 day year, and the buyer is responsible for the day of
settlement. - -$1,130.14 debit the seller and credit the buyer
-A seller listed his home for six months on February 26. On April 29, a buyer made
an offer on the property. The listing broker presented the offer to the seller on April
30. The seller accepted the offer on May 1, with the closing to occur on June 15.
Assuming the closing took place on June 15, when did the listing expire? - -6/15
-The sellers listed their property for six months on February 26 for $522,500. They
agreed to pay the listing broker a 7% commission at closing on the agreed upon
sale price. A buyer made an offer on the property on March 29 for $510,000. The
seller countered the offer on April 1 at $517,500, and the buyer accepted the
counter offer with the closing to occur on June 15. How much commission did the
seller owe the listing broker, and how would it appear on the settlement statement?
- -$36,225. Debit the seller.
-The seller and the buyer agreed to a purchase price of $270,000 with the closing
to occur on June 15. The seller's loan balance after the June 1 payment was
, $170,000. with an interest rate of 6%.The monthly payment was $1,800 principal
and interest. What was the loan balance the day of closing, and how much interest
did the seller owe the bank? - -Loan balance $170,000; interest due $425
-The buyer and seller agreed to a purchase price of $310,500. The buyer received
an 80% loan. How much was the buyer's loan and how did it appear on the
settlement statement? - -$ 248,400. Credit the buyer only.
-A home improvement company was negotiating with a homeowner to add on two
rooms to a home. The company agreed to take a second mortgage as long as the
homeowner also included the rest of the property in the loan. The company and the
homeowner agreed to a price and the company provided the necessary disclosure
form on Monday and the homeowner signed the agreement at noon the following
day. Assuming that the week had five business days, until what time could the
homeowner rescind the loan? - -Friday, midnight (Three business day period)
-The seller under a land contract is called - -The vendor
-On an 8% straight term loan of $6,071, the borrower paid total interest of $1,700.
How long did he have the loan? - -42 months
-Are recording fees and title insurance premiums part of the Truth in Lending
statement? - -No, These are considered legal, not financing fees and therefore are
not part of the Truth in Lending statement.
-A mortgage broker - -arranges loans between borrowers and investors.
-The Smiths' purchased a residence for $750,000. They made a down payment of
$150,000 and agreed to assume the seller's existing mortgage, which had a current
balance of $230,000. The Smiths' financed the remaining $370,000 of the purchase
price by executing a second mortgage whereby the seller became a mortgagee.
This type of loan is called a - -part purchase mortgage
-On a $500,000 loan the borrower is required to pay two points. How much does
the borrower have to pay the lender? - -$510,000.00
-The discount points charged by a lender on a federal VA or FHA loan are a
percentage of the - -loan amount.
-An increase in the availability of money would lead to which effect? - -Interest
rates would go down.
-When the amortized payment of a mortgage remains constant over the period of
the loan but leaves an outstanding balance to be paid at the end, this payment is
called - -a balloon payment.
-In an installment land contract, what type of title did the seller retain? - -Legal
-Which of the following is true of a second mortgage? - -It is usually issued at a
higher rate of interest.
