Final quiz(100)- Wrong Answers

A real estate agent is asked by a client for a mortgage broker recommendation. The agent recommends a known excellent broker. Later, the agent routinely receives a check from the broker at payment for the referral. Is this legal or illegal under the Real Estate Settlement Procedures Act?

• This is illegal under RESPA because it's considered a partnership

• This is legal under RESPA because the referral fee didn't involve the grantor of credit

• This is illegal under RESPA because it's considered a kickback between settlement service providers

Picture a drawing of a section of land. Where is Township 1 located?

• Lower right (SW) corner

• Lower left (SE) corner

• Upper left (NW) corner

• Upper right (NE) corner

Rex has a reputation in the community for being a bit odd. He listed his ranch for sale & insisted on the low price he's placed on it, though his agent told him it's underpriced. Rex's family hears of the potential sale and go through the courts to prove that Rex isn't legally competent to manage his business affairs. The judge agrees. What's the status of the listing agreement?

• It's still valid, Rex's family must abide by it

• The listing agreement is terminated by force of law

• Rex's agent can continue to market the property, but Rex's family must approve the sale

Which of the following statements is true about zoning classifications?

• A home business would be considered an accessory use

• A residential property may only have one use

• Condos are always commercial property

• Multi-family housing is zoned commercial

A townhouse is purchased for $475,000. If the transfer tax is $2.00 on the first $1,000 and $0.10 for each additional $100, how much are the transfer taxes?

• $49.40

• $474

• $4,742

• $476

Answer explanation

([$474,000 x .001] + $2.00) = $476

What's usury?

• The duty a lender owes a borrower

• The permitted use of a leased property

• The duty a borrower owes a lender

• When a loan's interest rate is higher than the maximum allowable rate

How is timeshare ownership typically split?

• 12 months

• 52 weeks

• Half-years

• Years

Patsy's home had been on the market for 5 weeks, & 2 brokers had buyers who were ready to make offers. If Patsy accepted one of those offers, the corresponding broker would be the only one to earn compensation. What type of listing does this describe?

• Exclusive Agency

• Exclusive Right-to-Sell

• Open Listing

• Net Listing

What's the rate of capitalization of a property generating net property income of $25,000 per year that's valued at $312,500?

• 8%

• 12%

• 6%

• 10%

Answer explanation

The capitalization formula:

Value = Income + Rate of Capitalization

$25,000/$312,500 = 8%

What does the Federal Trade Commission regulate?

• Listing Trades

• Advertising

• Commission Disbursements

• Federal Real Estate Transaction