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Which of the following is an economical characteristic of land? - ansSitus A man gave his best friend the right to go hunting on his farm. This would be an example of a (an): - ansEasement in gross You and your spouse own your house in a form of ownership in which neither of you can sell the house individually your form of ownership is most likely: - ansTenancy by entirety When discussing the concept of total square footage with your client , what is the best way to describe how the total square footage is measurement? - ansTotal are under Roof (TAUR) An Eastman by necessity is generally utilized to - ansGrant access to a Landlocked land owner Joint Tennessee is a form of: - ansCoownership A joint tenant may transfer his or her interest under which of the following circumstances? - ansAt any time, without permission or approval, but the purchaser will not be a joint tenant A natural object , such as a boulder stream or tree, maybe use as a marker in what form of legal description - ansMetes and bounds What is the method of land description that identify as parcel by its shape boundaries? - ansMetes and bounds Does Zone of property with a gas station is substantially changed to allow residential use only which of the following is true regarding the future use of a gas station - ansThe gas Station may continue in is current use The process of taking property while providing just compensation, is called - anscondemnation An Easement by necessity is generally utilized to - ansGrant access to land lock land owner Which of the following grants zoning authority to municipal government? - ansState enabling act Zoning laws, building codes in environmental law or example of government use of - ansPolice power An appraisal uses. the cost approach, in appraiser a home the appraisal should not use which of the following type of information - ansDepreciation on the lane For consideration during the appraisal process, which of the following is most likely be used as part of the valuation or estimation process - ansEffective age An agent is trying to establish value for a residential rental home, using sold, rental comparables, in the neighborhood which of the following is the most likely methods use for the income approach to value - ansGross rent multiply method Which of the following types of depreciation is general in curable - ans The amount of commission charged a client is established - ansIn negotiation between broker and seller. A deposit in a typical Real Estate transaction - ansMust be maintained by the broker In the brokers designated escrow Account. When the association of an associate broker or salesperson is terminated with their firm for any reason, the broker must return the license to the LREC: - ansWith in 5 days If a broker is involved in obtaining deposits in property management, the broker must - ansopen an account titled "Security Deposit Trust Account".
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Sale people cannot accept a commission or valuable consideration for the performance of any act under the license law from any person except their - ansSponsoring broker According to the license law must be. - ansIn writing If a broker cannot resolve a dispute over a sales deposit - anshe must give the money to the local court and notify commission. Every license must sign a sworn statement on their application attesting that they shall not induce any person to sell or rent and dwelling by representation regarding the entry of any person to the area due to that persons race color religion or national origin this prohibited is know as - ansBlock busting A law suite base on lesion by and moiety must be filled within - ansOne year If two or more person own the same piece of property each as an undivided share , this is refined to ad a - ansUndivided interest A vendor who wishes to keep a life interest and convey the remainder to a relative may best do this by which of the following methods? - ans you sign lease for one year and took possession of an apartment when the lease expired you continued to live in the apartment without the owner consent your tendency would be considered to be - ansTenancy at sufferances A man gave his best friend the right to go hunting on his farm. This would be an example of a (an): - anseasement in gross Zoning regulations and decision are usually handle by - ansTown and cities Ad valorem is Latin for - ansAccording to value A property is sold under a deed restriction ( CCR) that state s the property may not be use as a bakery under these conditions which of the following is true? - ansA adjoining property owner may enforce the restriction by a court injunction John own a peace of property and want to build a new structure with in 15 feet of his property line how ever local law requires a 20 foot set back for any improvement he should apply to the local government for a - ans Disclosing a suicide or murder that occurred on the property - ansnot a material fact Material Facts include - anseasements. encroachments. and structural issues. Of the following, which would not be considered a material fact that should be disclosed to a purchaser if the agent is representing the seller and is aware of the situation? - ansThe previous owner murdered his wife in the home and committed suicide. Defects that a seller is required by law to correct include: - ansnone of the above The current occupancy of the property by someone with HIV is: - ansillegal to disclose. A seller has slab problems which have resulted in cracked walls. The seller covers up the cracks and does not disclose to anyone that there is a problem. Under these conditions, which of the following is true? - ansthe buyers can sue the seller for concealing the defect. A buyer notices that the roof does not seem quite right and asks their agent if the roof leaks. The agent responds that upon asking the seller about the roof he was told that there is no seepage and no leaks. However, later it is discovered that there is a seepage problem with the
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Lenders help protect themselves from loss by using - ansImpound accounts A partial release clause is generally found in a: - ansBlanket mortgage Regulation Z of the Truth in Lending Act requires that if any of the terms of a loan (trigger terms) are advertised, then the ad must include details of all of the terms. These required terms include: - ans The disadvantage of a balloon loan is which of the following? - ansThe last payment is larger than the regular payments, and if you cannot pay it the loan may go to foreclosure. A man has his property listed with a broker. On June 23, a fire causes considerable damage to the property. On June 25, the owner revokes the listing. On June 29, the broker is deemed incompetent. Two days later, on July 1, the listing expires. On what date was the listing terminated? - ansJune 23 The broker has listed an owner's home. This agreement will be terminated by all of the following EXCEPT: - ansDeath of the listing salesperson The responsibilities of a real estate sales agent in a listing agency relationship include all of the following EXCEPT: - ansrepair of defects All of the following are considered agents EXCEPT: - anspersonal assistant The relationship of the broker to the listing owner who hired him or her is best described using which term? - ansFiduciary A broker that does not represent the seller or the buyer but simply is paid a fee to bring the two together is called a: - anstransactional broker Under the Law of Agency, the Principal owes the Agent: - ansall of the above Agent Johnson has been appointed by his broker as the agent of the seller in a listing agreement. Only Agent Johnson represents the seller, no one else in Agent Johnson's office. Agent Johnson is best described as: - ansdesignated agent A licensee sees a water stain on the second floor ceiling of a house he is about to list. What is the licensee required by law to do? - ansask the seller about the stain Defects that a seller is required by law to correct include: - ansnone of the above Defects that a purchaser is required by law to have corrected include: - ansNone of the above Broker A is involved in an exclusive right to sell listing with his seller client, Seller S. After receiving the property condition disclosure form from Seller S, Mark hosts an open house to promote his new listing. At the open house a customer expresses concerns about radon levels in the area. Seller S did not indicate a radon problem on the property disclosure. What is Broker A's best course of action in this situation? - ansBroker A should acknowledge the customer's concerns and inform the customer of their right to view the property disclosure form. Unless Broker A is personally aware of a radon problem specific to this property not disclosed by the seller, he should not disclose any further information to the customer. Any knowledge the agent has pertaining to coming changes in school district boundaries would: - ansbe considered a material fact that must be disclosed Disclosing a suicide or murder that occurred on the property - ansnot a material fact The current occupancy of the property by someone with HIV is: - ansillegal to disclose. A licensee working for a buyer notices that the floor slopes badly in one section of the house. The buyer's agent should - ansadvise the buyer to get an expert to get an opinion as to the cause of the slope.
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You have just signed an option agreement that gives your friend the option to buy your house. Which of the following statements is not correct? - ansYour friend is obligated to buy your house. One who is too young to be held to a contract is most likely considered: - anslacking legal capacity. Agent Sam has a purchase agreement to buy a house from Mr. Smith for $100,000. Agent Sam and Mr. Smith agree to new terms including a price of $102,000. and sign a new agreement to replace the old one. Then Agent Sam sells the right to buy the house for $102,000. to Mr. Jones who will go to the Act of Sale and actually buy it. What are two legal concepts that have occurred? - ansNovation and Assignment You list your property for sale with a broker. The listing contract stipulates that the seller will receive $110,000 "net," with all proceeds over $110,000 being the broker's commission. This type of listing is: - ansnet listing Agent Branson wrote a new agreement between the buyer and seller because they both decided to agree to seller financing instead of the buyer getting a conventional mortgage. The new agreement cancels the original agreement by a legal process called: - ansnovation The lessee signs a six month written lease and pays the rent timely. The landlord sells the property just two months later. The new owner: - anslegally must honor the lease for the remainder of the term A broker listed a property for 90 days. Soon after the listing expired, the owner sold the property to someone who had been shown the property by the broker during the listing period. The owner was obligated to pay the broker a commission on this. This obligation is covered in which clause of the listing agreement? - ansprotection A broker listed a home under the condition that the owner receive $210,000 from the sale, with the broker being able to sell the property for as much as possible and to keep the difference as the commission. This agreement is an example of: - ansnet listing You have a Listing on a piece of property and you get a ready, willing and able purchaser to agree to a contract with the seller. Before the act of sale, the buyer and seller mutually agree to rescind the contract. Under these conditions, which of the following is true? - ansThe broker will return the deposit to the buyer, unless the termination agreement says otherwise. If a contract is replaced by a new agreement between the parties, essentially terminating the previous agreement, it is called: - ansnovation A quitclaim deed provides which of the following warranties: - ansA quitclaim deed provides no expressed or implied warranties. Its most common use is to clear title. A grantor wishes to convey title to a grantee in a deed that creates the least protection for the grantee. The grantor should give the grantee a - ansQuitclaim deed When a signature is acknowledged: - ansit is legal evidence that the signature is voluntary and genuine. Recording a document in the public record legally makes everyone responsible to know what is in the public record and therefore the document is valid and enforceable against other parties. This concept is called: - ansconstructive notice Which of the following types of transactions would NOT be considered federally related under TRID guidelines? - ansCash sales recorded on public record.
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money into Sam's designated escrow account. Just before closing it was discovered that Sam's accountant had withdrawn escrow money to pay operational expenses. Which statement BEST describes this situation? - ans A man gave his best friend the right to go hunting on his farm. This would be an example of a (an): - anseasement in gross A joint tenant may transfer his or her interest under which of the following circumstances? - ansAt any time, without permission or approval, but the purchaser will not be a joint tenant The zoning of a property with a gas station is subsequently changed to allow residential use only. Which of the following is true regarding the future use of the gas station? - ansThe gas station may continue in its current use. Which of the following grants zoning authority to municipal governments? - ansState enabling acts Joe was showing a home built before 1978. He must provide the purchaser a disclosure regarding what environmental hazard before the purchaser enters into a purchase agreement?
- ansLead-based paint UFFI - ansan insulation that was used in mobile homes and renovations until determined to be an irritant. Which of the following concepts or requirements was NOT a result of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) of 1980? - ansinnocent landowner immunity An appraiser uses the cost approach in appraising a home. The appraiser should NOT use which of the following types of information? - ansDepreciation of land A buyer researches the neighborhood and purchases the property with the lowest asking price among several similar properties. This is an example of valuing using the Principle of: - anssubstitution When adjusting comparable properties for the purposes of a valuation estimate, all of the following are common adjustments which are made for comparables EXCEPT: - ansDemographic makeup of the neighborhood In selecting comparables for the Sales Comparison Approach, the appraiser selects from ___________________ the properties most similar to the subject property. - ansrecent closed sales Which of the following is most likely used in the cost approach? - ans Bob the broker has been contacted by a bank to provide a valuation estimate on a home going into foreclosure. For an agreed upon fee, Bob prepares a valuation report and submits it to the bank representative. What would this report MOST likely be considered? - ansA Broker Price Opinion (BPO). A four-bedroom house with one bathroom carries a market value of $120,000. The same house would likely be worth $125,000 if a bathroom could be easily added for a cost of $10,000. This is an example of: - ansIncurable functional obsolescence You are appraising a property in which seller motivation is a significant factor. The motivation would be most important in utilizing which of the following? - ansSales comparison approach
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Of the following liens, which generally would be given the highest priority in a debt collection procedure? - ansUnpaid property taxes For Regulation Z to apply, a creditor is someone who extends consumer credit more than 25 times a year or more than _____ times a year if the transaction involves a residence as security. - ans Agent Stanley has a client that plans on staying in the same home for at least 20 years and the current interest rates are at relatively low levels. What type of loan would probably be recommended? - ansA fully amortized 30 term loan. Lenders help protect themselves from loss by using: - ansImpound accounts The borrower under a note secured by a mortgage is known as the: - ansMortgagor In comparing an ARM and a GPM: - ansThey both have lower payments in the early years, but the GPM has negative amortization. Which of the following is a responsibility of the Agent to the Principal according to the Laws of Agency? - anscare, obedience, loyalty An agency is best described as when the: - ansbroker represents the principal. Salesperson A for broker B has listed a home. Salesperson C for broker D is trying to sell the home to his own buyer. Salesperson C is a designated agent. Salesperson C is primarily responsible to: - anshis own buyer. Under the Law of Agency, the Principal owes the Agent: - ansall of the above Under which of the following conditions is a mutual release unfair to the agent? - ansBuyer finds a better property A broker has listed a home for sale. The broker will earn a commission: - answhen a "ready, willing and able buyer" signs an offer to purchase that meets the terms of the listing contract or terms acceptable to the seller. The broker has listed an owner's home. This agreement will be terminated by all of the following EXCEPT: - ansDeath of the listing salesperson Agent Johnson has been appointed by his broker as the agent of the seller in a listing agreement. Only Agent Johnson represents the seller, no one else in Agent Johnson's office. Agent Johnson is best described as: - ansdesignated agent The amount of the commission is determined by: - ansnegotiation between seller and broker A man has his property listed with a broker. On June 23, a fire causes considerable damage to the property. On June 25, the owner revokes the listing. On June 29, the broker is deemed incompetent. Two days later, on July 1, the listing expires. On what date was the listing terminated? - ansJune 23 An agent is told by the seller that the taxes are $1500 per year. The agent is asked by the buyer how much the taxes are on the property. The agent should - ansverify the tax figure for accuracy. Broker A is involved in an exclusive right to sell listing with his seller client, Seller S. After receiving the property condition disclosure form from Seller S, Mark hosts an open house to promote his new listing. At the open house a customer expresses concerns about radon levels in the area. Seller S did not indicate a radon problem on the property disclosure. What is Broker A's best course of action in this situation? - ansBroker A should acknowledge the customer's concerns and inform the customer of their right to view the property disclosure
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When new land is acquired as water recedes it is called: - ansReliction Generally when a notary places their seal on a signature, this is intended to prove: - ansacknowledgment If a deed is signed by the grantor on Saturday, but did not deliver to the grantee until Sunday, which of the following is true? - ansThe deed is effective to transfer title The profit that is excluded from taxes for a married couple selling the home that has been their primary residence for at least 2 of the last 5 years is: - ans Sally Salesperson received 3 offers on one of her listings, one at 9 am, one at 11 am, one at 1 pm - all on the same day. How should Sally present these offers when she sees the seller that evening at 7 pm? - ansPresent all offers at the same time to the seller. Which of the following types of transactions would NOT be considered federally related under TRID guidelines? - ansCash sales recorded on public record. According to the 1988 amendment to the Fair Housing Act of 1968, a person found guilty of violating the law can receive a civil penalty not exceeding: - ans$16,000 for the first offense At a local Board meeting, two brokers from different companies are discussing the concept of setting a commission rate for all participating members of the Board. Which statement best describes this situation? - ansThis is illegal as it is considered price-fixing under Anti-Trust laws. Brokers get together and divide their market areas by region. This is: - ansa violation under Antitrust Laws. The Housing and Community Development Act, passed in 1974, provides that it is unlawful to discriminate on the basis of: - anssex Salesperson A, who works for Broker C on a 50-50 basis, sold a house listed by Broker E for $203,000. The seller agreed to pay a 6 percent commission but stipulated in the listing that 60 percent was to go to the selling broker. How much commission (to nearest dollar) will Salesperson A make on this sale? - ans The exemption regarding housing for older persons applies to: - anshousing occupied solely by those 62 or older. In 1988 the Federal Fair Housing Act was amended to add which of the following protected classes? - ansfamilial status Which is not a protected class under Fair Housing? - ansDependence on public assistance If a prospective tenant is handicapped, the landlord must - ansallow the tenant to pay for improvements Sex was added as a protected class in Fair Housing by what law? - ansHousing and Community To be considered an independent contractor by the IRS: - ansa written salesperson agreement is required. Several brokerage firms agree to not cross over into each other's territory and further agree to charge the same commission rate. Which of the following statements is true about this agreement? - ansThis violates the Antitrust Laws A driveway is 10 feet wide and 150 feet 6 inches long. The cost to build it is $25 per square yard. What is the total cost of the driveway? - ans$4180.
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A sale closed on July 21. Real estate taxes of $3,420 for the current year have not been paid. What is the settlement sheet entry for the proration of the real estate taxes? - ansDebit seller $1,909.50; credit buyer $1,909. The lender has approved the buyer for a loan with an LTV of 96.5% If the purchase price of the property is under contract at $150,000 what would the downpayment required of the buyer be in this case? - ans$5,250. You are estimating the value of an apartment building. The monthly scheduled gross income is $4000. The annual operating expenses are $23,000. The rate of return a typical buyer expects is 8%. If the average vacancy rate is 5%, what would be your estimate of value? - ans$282, You receive a monthly salary of $1,200 plus a 3 percent commission on all of your listings that sell and 2.5 percent on all of your sales. None of the listings that you took sold last month, but you receive $6,300 in salary and commission. What is the value of the property that sold? - ans$204, You receive a monthly salary of $600 plus 3.5 percent commission on all of your listings that sell and 2.5 percent on all of your sales. None of the listings that you took sold last month, but you received $8,460 in salary and commission. What was the value of the property you sold? - ans$314, The Americans with Disabilities Act states that any employer with _____ or more employees must adopt non discriminatory employment procedures - ans 15 Property management duties include all of the following except - ansbe an environmental expert How much are Commission members compensated for attending to Commission business? - ans$50 plus actual expenses The Louisiana Real Estate Commission is comprised of - ans11 members appointed by the Governor The Commission elects from its members a - anschairman The Commission has the full power and authority by law to do which of the following? - ansFine violators up to $5000. The Commission is required by law to meet: - ansQuarterly Which of the following would be required to have a real estate license? - ansA person referring real estate business to licensees for a fee. Which of the following statements is true regarding broker applicants? - ansA. At least 30 hours of the broker educational requirement must be obtained in course work emphasizing broker responsibilities. B. The commission may accept real estate related credit hours from an accredited college or university as partial substitution of the broker licensing educational requirement. C. The commission shall have the authority to accept experience in the real estate business or related fields as credit toward fulfillment of the education requirement. D. All of the above. Any corporation or partnership operating as a broker in the state of Louisiana must have - ans$100,000 bond with the Louisiana Real Estate Commission.
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In the event of a dispute between the potential buyer and seller regarding the return of the earnest money, the real estate broker may do any of the following EXCEPT: - ansRetain the money as part of the broker's commission, ensuring proper payment of all real estate fees in a timely manner. A broker can keep more than $2500 of his personal or company funds in an escrow account: - ansOnly in a rental trust account to pay current financial obligations of a client. A contract to sell real property that requires the purchase price to be paid in installments and title is to be delivered to the buyer only after a stipulated sum has been paid or the terms met is a(an) - ansBond for Deed A triangular parcel of land was 393 feet on the base and 600 feet along the side perpendicular to the base. How many acres of land did the parcel contain? - ansapproximately 2.7 acres A property's basis includes: - anspurchase price, closing costs, and costs of improvements Real Estate as an investment has many advantages. One of the disadvantages most commonly found is - ansilliquidity If a broker's license is revoked due to a violation of the License Law, what happens to her salespeople? - ansAutomatically suspended A broker using E-mail must include which of the following on each page of his E-mail? - ansA. The broker's name as registered with the Commission B. The city, state and country in which the broker's main office is located C. The regulatory jurisdiction(s) in which the broker holds a real estate brokerage license D. All of the above Correct A broker can keep more than $2500 of his personal or company funds in an escrow account: - ansOnly in a rental trust account to pay current financial obligations of a client. If a client refuses to sign an agency disclosure, the licensee must - ansput the time and date on the disclosure If either party dies or becomes incapacitated before acceptance, then an offer: - ansIS NULL A charge on one property for the benefit of another property is - anspredial servitude An offer with a termination date for the offer in Louisiana is said to be - ansirrevocable The donation of property while living is called - ansdonation inter vivos If two or more persons own the same piece of property, each as an undivided share, this is referred to as a (an): - ansundivided interest Consent of both parties to form a contract is established through: - ansoffer and acceptance Upon testate death of a spouse, the surviving spouse must be given: - ansUsufruct over the community property An undivided interest in real property is best defined in Louisiana Civil Law as: - ansThe property is owned by more than one person who share the same thing Subdivision regulations (private deed restrictions) may be modified by those affected within what time period? - ansAfter 10 years if both (a) owners representing 2/3 of the land and (b) 2/3 of the owners of the land agree All persons have legal capacity to contract except: - ansPersons denied of reason at the time of contract Interdicts Unemancipated minors
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Which of the following statements are true? - ansDeposits are not considered earnest money unless so stated in the contract. When the performance of the obligation of each party is correlative to the performance of the other this is called a (an): - anscommutative contract All of the following are requirements to perfect a sale in Louisiana EXCEPT: - ansConstructive notice of the sale. After how many days notice after a buyer's default in payments may a Bond for Deed be cancelled? - ans45 days A farm lease that has expired is presumed to have been continued for another year if the tenant holds over without opposition for: - ansone month The avoidance of a sale on account of some vice or defect in the thing sold is called: - ansRedhibition In dual agency in Louisiana, - anseach client and licensee only know the information they were actually given. Which of the following is not true about confidential information? - ansConfidential information can be disclosed by a designated agent to his broker for the purpose of seeking advice or assistance for the benefit of the client. (not correct) If another agent is representing a buyer and is showing your listing and you tell him that your seller is eager and may accept a lower price if they make an offer right away, this is - ansundisclosed dual agency Which of the following is true about customers? - ansLicensees shall treat all customers honestly and fairly Ministerial Acts" do not include - ansshowing a potential buyer through your listing. Your buyer client specifically tells you about some negative information about his past as a sex offender. He specifically requests you not divulge this information. You are concerned that the neighbors and seller would want to be aware. The information is spread by someone else and the seller asks you directly if you know that this is true. You acknowledge the truth. According to the Louisiana Law of Agency - ansyou have not violated the law. A relationship in which a real estate broker or licensee represents a client by the client's consent in an immovable property transaction is referred to as - ansagency When acting as a dual agent, a licensee shall not disclose: - ansthe price the seller or landlord will take other than the listed price. If one client does not consent to dual agency in a Louisiana transaction, - ansthe licensee must give a written disclosure to both clients to receive a referral fee for the one withdrawing Under which of the following circumstances may a salesperson lawfully refuse to show a home to a minority prospect who has specifically asked to see it? - ansWhen the owner is out of town and has instructed the agent that no showings may be made in her absence Which of the following is not a Ministerial act? - ansShowing property and responding to questions about the property from a person If an unmarried couple wished to purchase a home together and have the right of survivorship, which form of ownership would they choose? - ansJoint tenancy A competitive market analysis most likely determines the: - ansprobable price of the property
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Refusing a tenant on the basis of their profession is - ansnot a violation of Fair Housing Broker X is showing buyer Y, an Asian, homes only in Asian neighborhoods. The broker may be guilty of Select - ans Intentional acts of discrimination are called - ansdisparate treatment In a Fair Housing Complaint, which of the following must be proved to show an act was a violation? - ansdisparate impact A property's basis includes: - anspurchase price, closing costs, and costs of improvements The owner of an apartment building is best known as the: - anslessor Appeals of Louisiana Real Estate Commission findings are reviewable by - ans19th Judicial District Court Which of the following parties is exempt from the requirements regarding real estate licensing? - ansA person who provides signs and websites for persons to sell their homes. An individual person licensed as a real estate broker and not a corporation or partnership is known as a (an): - ansIndividual real estate broker George sold a house but the closing was delayed until after renewal time and George decided not to renew his license. Which of the following is true? - ansGeorge is allowed by license law to be paid his commission If a broker's license is revoked due to a violation of the License Law, what happens to her salespeople? - ansAutomatically suspended In printed advertising placed by an associate broker or salesperson - ansthe associate broker or salesperson's name may appear. A licensee should ensure any annotated offers signed by their respective clients are returned:
- ansimmediately Which of the following is a legitimate reason for a broker to remove a deposit from her escrow account? - ans Any knowledge the agent has pertaining to coming changes in school district boundaries would: - ansbe considered a material fact that must be disclosed Disclosing a suicide or murder that occurred on the property - ansnot a material fact Agent Thurmond has a listing that is in a flood hazard area that floods often and has been deemed ineligible for flood insurance.That condition would make the property ineligible for typical federally-related first mortgage financing. Agent Thurmond is representing only the seller in this transaction. Agent Thurmond has received an offer from a potential buyer that plans to pay cash and would not be required to have flood insurance because he is not getting a mortgage. Agent Thurmond must: - ansdisclose the material fact about the flood hazard to the buyer. The giver of an option is called the: - ansOptionor A drunken man signed an offer to purchase. The contract that he signed is: - ansvoidable You have entered into a lease that requires you to pay 20 percent of the owner's expenses. Your lease would be an example of a: - ansNet lease The legislation that requires appraisers to be state licensed or certified to appraise property for the purpose of federally related mortgage loans is: - ansFIRREA
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When acting as a dual agent, which of the following is easiest to do for both parties at the same time? - ansConfidentiality An owner lists her home for $98,000 and the listing broker tells the prospective buyer to submit a low offer because the seller is desperate. The buyer offers $96,000 and the seller accepts. In this situation: - ansthe broker violated the agency relationship by explaining the seller's position. A broker recently has listed a home under an exclusive-right-to-sell listing contract. The broker generally will earn his commission when: - anshe finds a buyer "ready, willing, and able" to buy on the terms of the listing A Seller confides with their agent in a conversation that he is willing to take less for the property under certain conditions. Considering this information, what is the agent's best option moving forward? - ansThe agent should advertise the property under the original terms of the listing contract An agent is to disregard instructions from a principal when those instructions: - ansare illegal A man has his property listed with a broker. On June 23, a fire causes considerable damage to the property. On June 25, the owner revokes the listing. On June 29, the broker is deemed incompetent. Two days later, on July 1, the listing expires. On what date was the listing terminated? - ansJune 23 Defects that a purchaser is required by law to have corrected include: Select one: A. Asbestos B. Ghosts C. Lead-based paint D. None of the above - ansd. none of the above A licensee sees a water stain on the second floor ceiling of a house he is about to list. What is the licensee required by law to do? - ansask the seller about the stain Any knowledge the agent has pertaining to coming changes in school district boundaries would: - ansbe considered a material fact that must be disclosed Disclosing a suicide or murder that occurred on the property - ansnot a material fact Mold disclosures are required: - ansfor all clients Agent Thurmond has a listing that is in a flood hazard area that floods often and has been deemed ineligible for flood insurance.That condition would make the property ineligible for typical federally-related first mortgage financing. Agent Thurmond is representing only the seller in this transaction. Agent Thurmond has received an offer from a potential buyer that plans to pay cash and would not be required to have flood insurance because he is not getting a mortgage. Agent Thurmond must: - ansdisclose the material fact about the flood hazard to the buyer. The seller asks listing Agent Johnson what disclosure is required for past termite infestation. There was no structural damage and the infestation was promptly treated. It occurred over 5 years ago. Agent Johnson should advise the seller that: - anstermite infestation should always be disclosed.
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describes this situation? - ansThis is illegal as it is considered price-fixing under Anti-Trust laws. Brokers get together and divide their market areas by region. This is: - ansa violation under Antitrust Laws. Which of the following must be proved in a Fair Housing Complaint? - ansThat discrimination occurred The exemption regarding housing for older persons applies to: - anshousing occupied solely by those 62 or older. Salesperson A, who works for Broker C on a 50-50 basis, sold a house listed by Broker E for $203,000. The seller agreed to pay a 6 percent commission but stipulated in the listing that 60 percent was to go to the selling broker. How much commission (to nearest dollar) will Salesperson A make on - ans3654. Refusing a tenant on the basis of their profession is - ansnot a violation of Fair Housing Broker X is showing buyer Y, an Asian, homes only in Asian neighborhoods. The broker may be guilty of - anssteering In a Fair Housing Complaint, an agent may be guilty of a violation if: - ansdiscrimination occurred, even if unintentional or unconcious. Intentional acts of discrimination are called - ansdisparate treatment In a Fair Housing Complaint, which of the following must be proved to show an act was a violation? - ansThat the intent was to discriminate The taxes for the fiscal year beginning July 1, 2002, were $932 and have been paid by the owner of the property.The property was sold and the transaction was closed on April 15,
- Compute the tax proration using a calendar year and prorate "to" the day of closing. Who will be credited and what amount? - ans$196.62 credit to the seller A sale is to close on June 23. Real estate taxes of $2,640 for the current year have NOT been paid. What is the amount of the real estate tax proration to be credited to the buyer? (Use a 30 - day month for calculation.) - ans You receive a monthly salary of $600 plus 3.5 percent commission on all of your listings that sell and 2.5 percent on all of your sales. None of the listings that you took sold last month, but you received $8,460 in salary and commission. What was the value of the property you sold? - ans$314, A property is valued at $85,000 and assessed at 50% of its value. The tax rate is $3.50 per hundred. How much are the taxes? - ans$1487. A home is listed for $200,000.00; it sells for 90% of the listed price, the assessment rate is 60%. If the property tax rate is 50 mills and was paid in advance, what is the proration if the sale occurs on March 1? Calculate to the Act of Sale using a Banker's year. - ans$4500. debit to buyer; $4500.00 credit to seller You are estimating the value of an apartment building. The monthly scheduled gross income is $4000. The annual operating expenses are $23,000. The rate of return a typical buyer expects is 8%. If the average vacancy rate is 5%, what would be your estimate of value? - ans$282, A property's basis includes - anspurchase price, closing costs, and costs of improvements The owner of an apartment building is best known as the: - anslessor
Latest Updated Exam Study Guide 2025/2026.
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Which of the following is NOT a sanction possible by the disciplinary action of the LREC? - ansA fine of $5000 and a prison term of 2 years. Which of the following is NOT true about LREC investigations? - anslicensees are only investigated if a written complaint is filed with HUD Appeals of Louisiana Real Estate Commission findings are reviewable by - ans19th Judicial District Court The Commission is authorized to inspect brokers' records: - ansBetween the hours of 9 a.m. and 4 p.m. on regular business days Which of the following is NOT a power of the Louisiana Real Estate Commission? - ansCreation and editing rights to the Louisiana Law of Agency How can an expired license be reactivated? - ansIt can be re-issued if the former licensee pays all fees and completes all continuing education by March 31. Which of the following parties is exempt from the requirements regarding real estate licensing? - ansA person who provides signs and websites for persons to sell their homes. Which of the following statements is true? - ansall of the above An individual person licensed as a real estate broker and not a corporation or partnership is known as a (an): - ansIndividual real estate broker Correct Which of the following statements concerning branch offices is correct? - ansThe broker needs a branch office license for each office he opens regardless of proximity to others. A broker with a great deal of business needs help from sales agents as soon as possible. He makes a deal with a license applicant to go ahead and knock on doors and turn all leads over to the broker. The broker suggests that any listings generated by this system will be turned over to the salesperson when he gets his license. Which of the following statements is true? - ansThis is illegal under the Louisiana License Law. George sold a house but the closing was delayed until after renewal time and George decided not to renew his license. Which of the following is true? - ansGeorge is allowed by license law to be paid his commission If a broker's license is revoked due to a violation of the License Law, what happens to her salespeople? - ansAutomatically suspended If a Sponsoring Broker's license is revoked, all salespeople working for the broker will have their license automatically: - ansSuspended. In printed advertising placed by an associate broker or salesperson - ansthe associate broker or salesperson's name may appear. During the course of a real estate transaction, a buyer who is not the client of Bob the Broker hands Bob an offer for one of his listings along with a money order for the deposit amount. What should Bob do with this money order, since this potential buyer is not his client? - ansPlace the money order deposit in his sales escrow account as soon as possible. Salespeople cannot accept a commission or valuable consideration for the performance of any act under the license law from any person, except their - anssponsoring broker According to the license law, Listings must be - answriting When selling her own home, a salesperson must inform the buyer of her ownership at which of the following times? - ansAt the time she offers it for sale
