Value
The period over which a property may be profitably utilized is called its:
Economic Life
T or F: AREC will fine you if you move out of state without notifying them within 10 days.
True.
Failure to perform any of the terms or conditions of a contract is called a:
Breach
In order for demand to be effective, it must be implemented by:
purchasing power
It is important to include a lead based paint disclosure for buyers purchasing a home built before:
1978
You are preparing a competitive market analysis on a residential lot in the city limits that you hope to list for sale. Which approach to value will be used in the development of the estimated value?
Sales comparison approach
T or F: an exclusive listing agreement is an employment contract.
True
A seller secured a buyer for his own home. Under which type of listing could his broker not receive a commission?
exclusive agency listing or open listing
A mortgage is accompanied by a promise on a document called:
Promissory note
An appraiser is appraising a property which is next door to an abandoned gas station. The appraiser should recommend a:
toxic waste study
Which type of comps would be the most helpful in appraising a home?
Similar homes to the entire property within 1/2 a mile, sold by a realistic seller to a motivated buyer within the last 6 months.
A broker brought in an offer but the listing agreement did not include an authorization to accept an earnest money deposit. Which of the following is correct?
The broker can accept if they are accepting as the buyers agent/transaction broker
Mr. Seller signs an open listing on his home with two different brokers. In this case, who will earn the commission?
Whoever brings the buyer because both have same opportunity. (procuring cause)
An exclusive listing contains a provision for termination upon the owner giving the broker 24 hours’ notice. Is this ok?
The broker may be subject to disciplinary action
A client is renovating a home and finds asbestos siding. The client asks for your recommendation. How should you advise the client?
Tell them encapsulation will be required, and they are in danger if they try to remove it.
Wear and tear to the roof of a building would be classified as:
physical deterioration(curable)
A listing agent passes away during the contract to close process. Is the seller automatically released from the listing agreement?
No, it belongs to the broker.
Which of the following requires real estate listings to be in writing?
Statute of Frauds
While the economy is experiencing inflation, interest rates:
rise and housing prices rise
Two different properties are located side-by-side in the same neighborhood. They were both built by the same contractor, at the same time, for the same cost, are maintained the same, and contain the same square footage. If one property is worth less than the other, it would be due to:
functional obsolescence
A flight pattern to a nearby airport was changed so that planes pass over a single family residential neighborhood. Any loss in value to these properties would be attributed to:
economic obsolescence
When agent John represented investor Sarah, he was her agent. This means he has what docs signed?
RECAD and agency agreement
A parcel of vacant land is listed for $300,000, requiring 20% down with the seller to finance the balance. The broker brings in a full-price offer with 20% down, but the buyer is going to use ABCMortgage for a better rate. The owner refuses the offer. The broker is entitled to:
Nothing
As it relates to the field of real estate, the legal term "theft" would include all of the following EXCEPT:
A. Entering into a home that is listed on the market and taking valuable items of personal property that belong to the owners
B. Defrauding lenders by signing as your neighbor.
C. Defrauding clients by siphoning funds from a broker
D. Defrauding investors by creating phony trust deeds and notes, selling them, and using the proceeds for the broker
B. Defrauding lenders by signing as your neighbor.
What type of state is Alabama? Causing a high priority on buyers to have their own inspections during due diligence?
Caveat Emptor