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real estate finance
test 12/1/08
50
Finance
12/01/2008

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Term
in most states, a person is exempt from licensure as a real estate agent when performing which of the following activities, even if receiving a fee?  
Definition
selling real property as an executor of an estate
Term
a typical broker salesperosn employment contract should include all of the following EXcept
Definition
tax withholding requirments
Term
the purpose of a trust account is to
Definition
hold money belonging to clients and customers
Term
examples of zoning ordinances are
Definition
density limitations
Term
generally, for every job created by a base industry, there will be created in service industries approximately
Definition
two jobs
Term
multiple listing orgs typically use
Definition
an exclusive right to sell listing
Term
from a broker's point of view, one of the least desirable listings is an
Definition
open listing
Term
a woman owned a duplex and lived in half and rented out the other half.  she put a for rent sign in the front yard. the first applicant was a black man whom she turned down stating that she didnt' rent to men. under the fair housing laws, she
Definition
is within her rights since she didnt' use any discriminatory advertising
Term
a broker who must perform as promised in the listing conract and not depart from the principal's instructions owes the client a duty of:
Definition
faithfulness
Term
when there is a sudden increase in the demand for housing in a community, the price of existing housing will
Definition
rise rapidly, then fall slightly as supply catches up with demand
Term
broker commissions for the sale of real property are usually based on
Definition
selling price
Term
a listing that does not require the listing agent to show that he or his subagents are the procuring cause in order to earn a commission is
Definition
an exclusive right to sell listing
Term
the basic intent for real estate license laws and regulations was to
Definition
protect the public
Term
an existing structure that would be prohibited under current zoning laws is called
Definition
a nonconforming use
Term
Definition
Term
which of the following is exempt from 1968 fair housing law
Definition
property owned by a private club for its members noncommercial use
Term
if o'malley deeds property to 0'halloran on the condition that no englishmen live there, what is the status of the deed?
Definition
the deed is valid but the condition is unenforcable
Term
the listing salesperson was told by a prospective buyer to present an offer of 150k w/ the promise that he would increase it to 152k if the seller rejected 150k. the salesperson must
Definition
present the offer and disclose the promise to increase the offer
Term
a real estate agent suggesting that a particular neighborhood is "safer" than another may be an example of:
Definition
steering
Term
a dual agency
Definition
must be disclosed to all parties
Term
under Neb real property agency relationships, agency authority may NOT be established by:
Definition
payment of compenstion alone
Term
an agent, in the couse of listing a property, was told by the seller that he would not sell to persons of a certain race. the agent should
Definition
refuse to take the listing with that exception
Term
listing may be terminated by all of the following except
Definition
nonhomogeneity
Term
over time, states have established licensing requirements dealing with all Except
Definition
intelligence quotient IQ
Term
under the fair housing law of 1968, apartment managers may discriminate against which of the following categories of people
Definition
pet owners
Term
real estate commissions typically do all of the following Except
Definition
enact new real estate legislation or amend existing legislation
Term
a real estate listing is a contact between
Definition
the owner and the listing broker
Term
licensees must provide written disclosure of their agency representation to customers and clients:
Definition
during or immediately following the first significant contract
Term
under neb real property agency relationships, a broker w/ a buyer as a client must NOT:
Definition
disclose to the customer the client's financial ablity to perform the terms of the transcation
Term
the least appropriate person to chose which title and escrow company to use in closing a real estate sale would be
Definition
the listing agent
Term
in neb, unless there is a contract specifying to the contrary, real estate agents are assumed to be agents for: 
Definition
the buyer
Term
the broker and the seller know of major plumbing repairs needed on the seller's property. they, therefore, sell the house to a buyer "as is" but do not disclose plumbing problems.  the buyer discovers the defects after closing and decides to sue the broker and the seller.  what is the most likely outcome of this decision?
Definition
the buyer would probably win because the defects should have been disclosed
Term
traditionally, in residential sales, prior to the emphasis on buyer agency, the broker considers the buyer to be
Definition
a customer
Term
if, in showing a property, the salesperson said, "in my opinion, this house is absolutely the greatest in the world," the salesperson
Definition
is puffing
Term
the laws of agency govern:
Definition
the legal responsiblities of a broker to his or her principal
Term
a written agreement giving the listing broker the right to collect a commission, no matter who sells the property, within the term of the agreement, is
Definition
an exclusive right to sell listing
Term
the employing broker of a real estate firm automatically becomes a dual agency when
Definition
he personally represents both a landlord and a tentant in a single transaction
Term
when the supply and demand relationship in a market is unbalanced because of excess supply, it is to the advantage of
Definition
buyers
Term
the amount of commission to be paid the broker for selling a property is
Definition
stated in the listing contract
Term
a listing agreement authorizes the broker to
Definition
find a buyer
Term
a broker has an exclusive right to sell listing with the sellers. the brokers brings an offer to buy at the seller's asking price and terms from a capable buyer. at what point has the broker earned her commission
Definition
upon presentation of the offer
Term
a white woman owned a duplex and lived in a half and rented out the other half. she put a for rent sign in the front yard. the first applicant was a black man whom she turned down stating that she didn't rent to men. he later learned that she had rented the unit to a white man. under the circumstances, the first applicant has
Definition
a discrimination case based on the civil rights act of 1866
Term
disclosure to the customer of which of the following would NOT require the informed consent of the client
Definition
the client's financial inability to perform if the offer is accepted
Term
a landowner wishing to deviate slightly from existing zoning codes would ask for
Definition
a variance
Term
the nat assciation of REALTORS code of ethics
Definition
was implemented prior to any state licening law
Term
a real estate broker differs from a real estate salesperson under the law in that the
Definition
broker is liable for the acts of the salesperson
Term
when listing is taken, the seller would be referred to as
Definition
the client
Term
an investor is using borrowed money to increase the rate of return on a cash investment in an income property.  he is
Definition
using leverage
Term
a disabled muslim lawyer responsible to a classified advertisment, applied to rent an apartment in a large complex for which she and her two young children were financially qualified to rent. the property manager:
Definition
may reject the application on the basis of her employment as a lawyer
Term
monetary benefits of investing in real estate come from all of the following except
Definition
negative amortization