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FINAL EXAM (Bob Brooks) Questions
and Answers Already Passed
When must earnest money and/or deposits accepted by the broker be put into the escrow account?
a. Earnest money does not have to be put into an escrow account.
b. By the close of business of the next banking day
c. Within 24 hours
d. Within 48 hours โโb. By the close of business of the next banking day
In order to record a deed, it MUST be in writing and:
a. signed by grantee
b. recite the actual purchase price
c. acknowledged
d. be free of all liens โโc. acknowledged
An exclusive agency listing:
a. Allows the owner to sell through his own efforts without obligation to pay a commission
b. Need not contain a definite termination date
c. Means the seller pays the agency regardless of who sells the property
d. None of the above โโa. Allows the owner to sell through his own efforts without obligation
to pay a commission
A lease that requires a lessor to pay operating expenses of the property is called:
a. Gross lease
b. Net lease Incorrect
c. Graduated lease
d. Participation lease โโa. Gross lease
The idea that a property's value is safer when surrounded by similar properties is the principle of:
a. Substitution
b. Progression
A real estate agent may give an opinion as to the sales price of real estate for the purpose of a prospective listing or sale, as long as:
a. It is not referred to as an appraisal.
b. The seller promises to list their property for no less than the price opinion.
c. The seller promises to accept no less than the price opinion, regardless of the appraisal price.
d. The price opinion is equal to the appraisal price. โโa. It is not referred to as an appraisal.
A closing which is handled by one agent being responsible for collecting all signatures, money and documents WOULD be called:
a. Act of sale closing.
b. Escrow closing.
c. Settlement meeting.
d. Consideration. โโb. Escrow closing.
RESPA was enacted in 1974 for the following purpose:
a. To assure proper disclosure is always given to the buyer concerning interest rate on a new note.
b. To effect specific changes in the settlement process resulting in more effective advance disclosure of settlement costs to home buyer and sellers.
c. To assure full disclosure is always made in regard to financing on FHA and VA loans.
d. To allow lending institutions to charge discount points and have all this fully disclosed at the time of closing of the sale. โโb. To effect specific changes in the settlement process resulting in
more effective advance disclosure of settlement costs to home buyer and sellers.
A principal would be which of the following?
a. Either the seller or the buyer
b. Either the broker or the agent
c. The MREC
d. Either agents or clients โโa. Either the seller or the buyer
Concerning fiduciary responsibilities, the following statement, "The agent MUST put the interest of the principal above the interest of the agent or any third party", refers to:
d. Satisfaction of contract. โโb. Novation
A licensee applying for a Mississippi non-resident license must have an active license in their home state and the home state must have:
a. A business relationship with the MREC
b. The exact same licensing requirements
c. A reciprocal agreement
d. At least one other broker from that state licensed in Mississippi โโc. A reciprocal agreement
The borrower of money or the person who gave the mortgage to the lender is:
a. Mortgagor
b. Mortgagee
c. Borrower
d. Borrowee โโa. Mortgagor
The party who receives an offer to purchase is the:
a. Offeree
b. Offeror
c. Buyer
d. Agent โโa. Offeree
In a U.S. Government survey the following are used as a legal description EXCEPT:
a. Townships
b. Meridians
c. Sections
d. Lot and Block Numbers โโd. Lot and Block Numbers
The relationship between the principal and the broker is covered by the:
a. Law of Agency
b. Fiduciary agreement
c. Statute of Accountability
a. Unpaid balance and interest rate on mortgage.
b. Time of foreclosure
c. Novation of the seller.
d. Any defects in the title. โโa. Unpaid balance and interest rate on mortgage.
The highway department has just finished improving the culverts in a residential subdivision. This WILL most likely be paid for through a:
a. Bond issue
b. Federal funds
c. Special assessment
d. General Tax โโc. Special assessment
The lender of mortgage money is the:
a. Mortgagor
b. Vendee
c. Trustee
d. Mortgagee โโd. Mortgagee
Discount points on FHA loans are a form of:
a. Discount to the seller.
b. Insurance coverage
c. Prepaid interest
d. Reserve for insurance and property tax payments. โโc. Prepaid interest
The relationship of the value of property to its monthly rental income determines the:
a. Capitalization rate
b. Recovery rate
c. Recapture rate
d. Monthly gross rental multiplier. โโd. Monthly gross rental multiplier.
Real estate commissioners in Mississippi are:
The first step in the appraisal process is:
a. Collection of the data.
b. Analysis of the data.
c. Inspection of property
d. Definition of the problem. โโd. Definition of the problem.
Concerning Mississippi Licensing Laws, any person who manages rental property for a fee is considered in the category of "real estate activity".
True
False โโTrue
The process in which the mortgagor waived benefit of appraisement in a foreclosure proceeding is known as:
a. Ordinary process.
b. Confession of judgment.
c. Trustee.
d. Mortgagee. โโb. Confession of judgment.
When is a licensee required to pay over to their responsible broker any deposits or earnest money received?
a. Within 24 hours
b. Within 48 hours
c. As soon as they next see their responsible broker in person
d. Immediately upon receipt thereof โโd. Immediately upon receipt thereof
Zoning laws represent a government's:
a. Police powers
b. Variance power
c. Eminent Domain
d. Development power โโa. Police powers
d. Fee simple conditional. โโc. Joint tenancy.
A broker that fails the exam two times MUST wait ______ months to retake the licensing exam.
a. One
b. Two
c. Three
d. Six โโd. Six
In an option contract who makes a promise?
a. Buyer
b. Seller
c. The licensee
d. The listing broker. โโb. Seller
Title acquired by adverse possession MAY be perfected by:
a. recording within 180 days
b. marketing or selling the property
c. quiet title action
d. prescription โโc. quiet title action
Foreclosure where there is no court action is an example of:
a. Confession of judgment
b. Executory process.
c. Judgment.
d. Ordinary. โโb. Executory process.
Who is the real estate agent is employed by?:
a. The sub-agent
b. The client
c. The agency
d. None of the above โโb. The client
a. Littoral Right
b. Doctrine of Prior Appropriation
c. Doctrine of Necessity
d. None of the above. โโc. Doctrine of Necessity
When the value of money decreases but retail prices increase, it is:
a. Cash flow
b. Leverage
c. Inflation
d. Deflation โโc. Inflation
When a monthly note is paid and the payment covers the previous month, the note is said to be in:
a. Advance
b. Arrears
c. Graduated
d. Default โโb. Arrears
What is the advantage in applying for homestead exemption?
a. Increased equity
b. Lowers your IRS debt.
c. Lowers your property taxes.
d. Exempts homeowner from property taxes. โโc. Lowers your property taxes
A "team" or "group" shall mean a collective name used by two or more active real estate licensees who represent themselves to the public as bing part of a single entity which is organized with the ______________________________.
a. Verbal approval of a principal broker
b. Written approval of a principal broker
c. Written approval from the MREC
d. Verbal approval from their clients โโb. Written approval of a principal broker
