missed questions

Nico is buying a home for $625,000. His earnest money deposit is 8%. He wants to avoid private mortgage insurance (PMI) on his conventional loan, and he owes 5% of the purchase price in closing costs. How much money should he bring to closing?

• $106,250

• 156,250
  

• $31,250

• $81,250

What does the Federal Trade Commission consider to be an unfair ad?

• Any ad or business practice that causes or is likely to cause injury

• Any ad that is likely to mislead consumers acting reasonably under the circumstances
  

• Any ad that makes a health claim
  

• Any ad with a claim that's difficult to evaluate

Which of the following is one reason a lender might charge a prepayment penalty?

• Because the lender is a subprime lender

• To cover the costs of processing an early payoff

• To deter buyers from ever paying off their mortgage

• To recover the money lost in anticipated interest

A closing agent has several duties to perform both before and after the closing. Which of the following is a task the closing agent must complete after the closing?

• Obtain title insurance

• Pay the existing loan off

• Perform a title search

• Prepare a closing statement

Which task is NOT the responsibility of an escrow officer?

• Determine how earnest money is to be distributed in case of a dispute.

• Manage transaction documents from all parties.

• Prepare closing documents and manage the closing meeting.

• Verify funding of the buyer's loan.

Which of these would most likely be an implied contractual condition in a real estate sales contract?

• Buyer and seller names

•   Freedom from fraud and misrepresentation

• Property location or description

•   Purchase price

When appraising a property, what type of property would be best suited to the cost approach?

• Condominiums

• Cooperatives

• Historical properties

• Older but not historical properties

North Carolina buyer Jeffrey made an offer to Miranda, but neglected to include a deadline for acceptance within the offer. Which of the following is true of this situation?

• All offers in North Carolina are valid for 36 hours from the time the offer is communicated to the offeree or offeree’s agent.

•   Because the offer didn’t include an acceptance deadline, the offer will terminate within a reasonable period of time.

• North Carolina offers must specify a deadline for acceptance within the offer, or else the offer is considered invalid.

• The offer is open ended until Miranda formally rejects it or Jeffrey revokes it.

As you’re completing the North Carolina Offer to Purchase and Contract with your buyer client, you come across the Seller Representations provisions. Which of the following statements about these representations is false?

• Seller representations are guarantees about the property.

• Seller representations are statements made to the best of the seller’s knowledge.

• Seller representations are statements of current facts the buyer can reasonably rely on when deciding whether or not to enter into the contract.

• Seller representations are statements that the seller believes to be true as of the time they were made.

Which of the following must be included in a North Carolina vacation agreement?

• A liability waiver

• A provision that in the event of an eviction, the tenant will pay the landlord’s attorney fees

• Landlord character references

• The amount of the security deposit