Unit 12 Review

1. A loan that provides for the full payment of the principal over the life of the loan is

• an amortized loan

• a reverse mortgage

• a balloon payment

• an indexed loan

A loan in which the borrower makes only interest payments is called

• a straight loan

• a fixed-rate loan

• an adjustable-rate mortgage

• a reverse mortgage

 What type of law limits the interest rate that is allowed to be charged?

• a usury law

• trustee law

• statute of frauds

• contract law

 A prospective buyer needs to borrow money to buy a house. The buyer applies for and obtains a real estate loan from a mortgage company. Then the buyer signs a note and a mortgage. In this example, the mortgage company is

• the mortgagor

• the vendor

• the mortgagee

• the beneficiary

How many square feet are in an acre of land?

• 40,450 sq ft

• 20,560 sq ft

• 49,110 sq ft

• 43,560 sq ft

Which of the following is a similarity between an open listing and an exclusive agency listing?

• 1. Each grants a commission to any broker who procures a buyer for the seller’s property

• Under each, the seller avoids paying the broker a commission if the seller sells the property to someone the broker did not obtain

• Each grants the exclusive right to sell to whatever broker produces a buyer for the seller’s property

• Under each, the broker earns a commission regardless of who sells the property, as long as it is sold within the listing period

 A seller sold property to a neighbor without the services of a real estate broker; however, the seller still owes a broker a commission because the seller signed

• a net listing agreement

• an exclusive agency listing agreement

• an open listing agreement

• an exclusive right-to-sell listing agreement

Most states require that a real estate listing agreement contain

• a multiple listing service (MLS) clause

• a definite contract termination date

• an automatic extension clause

• a broker protection clause

The final decision on a property's asking price should be made by

• the seller's attorney

• the seller's broker

• the seller

• the appraised value

A real estate broker was responsible for a chain of events that resulted in the sale of a client's property. This is called

• procuring cause

• private offering

• proffered offer

• pro forma