Download The CE Shop Proctor Exam Final with verified answers and more Exams Nursing in PDF only on Docsity!
The CE Shop Proctor Exam Final
Local real estate developments, such as a new subdivision, will likely impact ______ the most. - correct answer ✔✔Aesthetics of a community Ross thinks he knows which neighborhoods his new clients belong in, so he tries to guide them away from the neighborhood they like. What prohibited practice is Ross engaging in? - correct answer ✔✔Steering Which type of exclusive agency agreement in Kentucky allows a broker to solely represent a buyer client, but doesn't guarantee the broker will receive a commission, even if the buyer goes under contract to purchase a property during the term of the agreement? - correct answer ✔✔Exclusive buyer agency agreement When may informed consent for dual agency be obtained? - correct answer ✔✔Before the fact, or as the situation arises Joe and Emma Parsons begin informally working with their neighbor Kyle, who's a real estate licensee, to find a bigger house. The parties have not signed any agreements or discussed the arrangements. This is an example of a(n) ______ agency agreement. - correct answer ✔✔Implied Max built his shed just over his property line, so part of the structure actually sits on his neighbor's property. The shed is considered a(n): - correct answer ✔✔Encroachment What are the two report types permitted by the Uniform Standards of Professional Appraisal Practice? - correct answer ✔✔The restricted appraisal report and the appraisal report ______ pipe is very durable, corrosion resistant, and can be used for hot-water distribution lines, but it doesn't last as long as copper piping. - correct answer ✔✔Brass The Nguyens must get top dollar. Competitive properties are priced at $250,000 and $255,000. What's a good pricing strategy? - correct answer ✔✔Price at or just below the highest competing property.
A clause that allows the parties to agree that they won't litigate if there are any contract disputes is a/n _________. - correct answer ✔✔Arbitration clause A property appraised for $257,000 and the buyer paid $249,000. Which value will a lender use when determining the loan-to-value ratio? - correct answer ✔✔249, What is a short sale? - correct answer ✔✔The sale of a property for an amount that's less than what is owed, excluding closing costs Why do appraisers use the Uniform Residential Appraisal Report? - correct answer ✔✔To provide the lender with an accurate opinion of the property's market value Which of the following best describes the fiduciary duty of confidentiality? - correct answer ✔✔You must not share your client's confidential information. Why are industrial lofts and warehouses often converted for residential or commercial uses? - correct answer ✔✔Because they are located in high-rent areas or can be more profitable as a converted property than as its former industrial use An ______ is an addition to a sales contract and can be added without changing other terms already agreed upon in the contract. - correct answer ✔✔Addendum In the sales comparison approach, the appropriateness of the various comparable sales in relationship to the subject is considered in a process known as ______, where certain factors may be given more weight. - correct answer ✔✔Correlation Who typically performs a CMA or BPO? - correct answer ✔✔Real estate licensee Which stage of the property ownership life cycle can be affected by income tax issues? - correct answer ✔✔Acquisition, ownership, and reversion can all be affected by income tax issues.
Three suitability categories help licensees and sellers analyze whether a property should be sold at auction. These categories are ______. - correct answer ✔✔Property type, market conditions, and seller's needs Which of the following best describes how an appraiser reconciles the adjusted sales prices of the comparable properties to indicate the value of the subject property? - correct answer ✔✔The appraiser selects the adjusted sales price of the property most like the subject to use as the indicated value. Careful handling of all funds is crucial to the success of a brokerage firm. Of special importance, however, is handling of ______. - correct answer ✔✔Escrow funds Which document provides an estimate of the costs a buyer is likely to pay at settlement? - correct answer ✔✔Loan Estimate Whose consent and agreement are required to conduct a short sale? - correct answer ✔✔The lien holder's Gerald creates a trust to convey his property to his heirs. His friend, Nancy, is placed in charge of making sure the terms of the trust are carried out. In this example, Nancy is the ________. - correct answer ✔✔Trustee Adella received money for her down payment in the form of a tax credit on her federal tax return. This tax credit is known as a __________________________. - correct answer ✔✔Mortgage credit certificate Minimizing risk in part means avoiding public networks, unsecure sites, and ______ sites. - correct answer ✔✔Suspicious The components that make up a borrower's mortgage payment can best be remembered using which acronym? - correct answer ✔✔PITI Which of the following statements is prohibited under fair housing law? - correct answer ✔✔Perfect for a couple without kids
When a lower-quality property is adjacent to a higher-quality property, it can diminish the value of the higher-quality property. What economic principle is this? - correct answer ✔✔Regression Which of the following is one of your duties as a listing agent? - correct answer ✔✔Promote your client's interests throughout the entire transaction. If a rectangular building were 40 feet by 20 feet, the area would be ______. - correct answer ✔✔ 800 square feet Which of the following is a true statement about options and option fees? - correct answer ✔✔An option fee may be for any amount agreed to by the parties. If an endangered species or wetlands exist on a site, which of the following is true? - correct answer ✔✔These are both environmental concerns that can directly impact the site's appraisal value. Shauna just signed a commercial lease in which her payments increase incrementally from one period to the next over the period of the lease term. What type of lease is this? - correct answer ✔✔Graduated Which statement best describes the use of a legal description or street address when completing a real estate contract? - correct answer ✔✔Legal descriptions are required, because they provide less ambiguous, and more complete descriptions of properties than street addresses provide. Which of the following will an appraiser do first when using the sales comparison approach? - correct answer ✔✔Identify features of the subject property that are in demand in the market. Identify features of the subject property that are in demand in the market. - correct answer ✔✔Equity REITs Ted wants to estimate the value of a commercial property leased to four retail tenants. In order to find the GIM he can use for his subject property, what's the minimum number of comparable properties he should try to find? - correct answer ✔✔ 10
Of all the preventive risk measures a broker takes, which is the most important? - correct answer ✔✔Policies and procedures manual Which of the following formulas captures the basics of the quantity survey method? - correct answer ✔✔Direct costs + Indirect costs + Entrepreneurial profit = Total reproduction cost new Jill needs to pay the web developer who created a new website for her brokerage, but her checking account is low, so she floats herself a loan from earnest money kept in the brokerage's escrow account and deposits it in her account for a few days before paying the developer. Which answer correctly identifies the violation(s) Jill has committed? - correct answer ✔✔Commingling and conversion Whose responsibility is it to keep track of all buyer contingency deadlines and ensure they're not missed? - correct answer ✔✔The buyer and the buyer's agent Which type of property is used to store goods on a short- or long-term basis? - correct answer ✔✔Warehouse Under the Kentucky Property Management Agreement, how many days' notice does an owner have to give an agent or broker regarding the contract's early termination? - correct answer ✔✔30 days Your seller clients, the Bishops, must make $255,000 off the sale of their home. They are more concerned about getting the right price to make that happen than the amount of commission they'll pay, and they say you can keep any amount above the $255,000 they need to make. What type of listing is this? - correct answer ✔✔Net listing Jamal is a real estate licensee. What's his responsibility regarding household lead hazards? - correct answer ✔✔He must remind the sellers to disclose the possible presence of lead-based paint to a buyer if the home was built prior to 1978. One way to minimize risk is to ______. - correct answer ✔✔Stay within the scope of your license and expertise How many members are on the Kentucky Real Estate Commission? - correct answer ✔✔Seven
Which of the following is true about title to a property? - correct answer ✔✔Constructive notice to the public of interest in a parcel of real estate occurs when the deed is recorded and physical possession of the property is taken. Personal interest most often conflicts with what fiduciary duty? - correct answer ✔✔Loyalty Which statement best describes the method used to reconcile the value found for a property from the three appraisal approaches? - correct answer ✔✔The appraiser may weigh one or two approaches more heavily than the others, as appropriate for the property type. What's required for an out-of-state broker to deal in commercial real estate transactions in Kentucky? - correct answer ✔✔A written cooperative notice of affiliation between a Kentucky cooperating broker and the out-of-state broker ______ loans are funded in-house. - correct answer ✔✔Portfolio In the conveyance of real property after death, what trumps any terms specified in the deceased person's will? - correct answer ✔✔Operation of law Why does the sales comparison approach rely upon data from arm's length sales? - correct answer ✔✔Because this data includes prices not affected by special financing or sales concessions. What's the depreciation schedule for a residential income-producing property? - correct answer ✔✔27. years Which part of the cost approach equation is considered the most difficult part to estimate accurately? - correct answer ✔✔Accrued depreciation What's a feasibility study? - correct answer ✔✔A process that answers the questions about whether a development is possible and whether there is a market It's not a good idea to post photos of your clients' expensive belongings. Why is that? - correct answer ✔✔It can attract the attention of thieves.
Which of these describes a deed? - correct answer ✔✔Ownership document Octogenarians Gertie and Frank met in Sunset Living, a skilled nursing center for people with advanced Alzheimer's disease, where they're both residents. They fell in love and get hitched, signing a marriage certificate. This is an example of a(n) ______ contract. - correct answer ✔✔Invalid What's the typical useful life of an underground storage tank? - correct answer ✔✔15 years With which type of commercial lease does the tenant pay some or all of the expenses? - correct answer ✔✔Net lease Besides building seller rapport, what's a key purpose of touring a subject property? - correct answer ✔✔Verifying data gathered elsewhere If Rina wants to pay off her mortgage early, what might she consider before doing so? - correct answer ✔✔Whether she'll incur a pre-payment penalty Russ was a rich, eccentric man. Over a period of many years, he built a huge, beautiful castle-like home in a tiny rural community that's somewhat economically challenged. Which of the following statements about auctioning this property is true? - correct answer ✔✔Technology makes an auction an excellent choice for marketing this property to a wide audience with the means to purchase it. Under which of these circumstances might a lender require private mortgage insurance? - correct answer ✔✔When the borrower is unable to put at least 20% down on a conventional loan Charles made an offer on a home on January 2. The seller countered the offer on January 4. Arnie accepted the counter on January 5, and closing is scheduled for March 1. What's the effective date of a contract? - correct answer ✔✔January 5 Your Aunt Peggy works in another county and is thinking of buying a townhome. She's working with the seller's agent but isn't under an agency agreement. What should you tell her about this situation? - correct answer ✔✔"Make sure you understand that you're not represented."
What's an encumbrance? - correct answer ✔✔A claim on property that limits the owner's use or rights, or decreases the property value The Kentucky Real Estate Education, Research, and Recovery Fund must carry a minimum balance of ______. - correct answer ✔✔$400, A(n) ______ is an example of a limited agent. - correct answer ✔✔Escrow officer Google and "if this, then that" alerts can assist you with which of the following? - correct answer ✔✔Monitoring your online listings for rental scams Which of the following statements about regional shopping center property managers is true? - correct answer ✔✔There is at least one full-time property manager on-site at all times during shopping hours. The property management _______ provides detailed information about the rental property, such as market analysis, competitive analysis, and property analysis. - correct answer ✔✔Plan What are the three most common forms of legal descriptions? - correct answer ✔✔Metes and bounds, lot and block, and rectangular government survey A month-to-month lease agreement is considered to be this type of leasehold estate, in which the total duration is unknown. - correct answer ✔✔Estate at will Which of the following is a violation of federal fair housing law? - correct answer ✔✔A private homeowner advertises a private house share using the phrase: "No minorities." What's the purpose of a home inspection? - correct answer ✔✔To paint a true picture of a property's condition In terms of encumbrances, what's a license? - correct answer ✔✔Permission without possession, interest, or ownership
What happens when a married couple who owns a property as tenants by the entirety divorce? - correct answer ✔✔Their ownership reduces to tenancy in common or joint tenancy. Assigning a lower-density use zone to an area that previously allowed higher density and that may reduce property values is known as ______. - correct answer ✔✔Downzoning Why would a retail tenant be willing to sign a lease in which a percentage of sales proceeds are paid to the landlord? - correct answer ✔✔The tenant wants to reduce the base rent. The cost approach to finding an appraised value measures _______. - correct answer ✔✔The cost to acquire land and construct a reproduction The ______ isn't used in states that were part of the original 13 colonies, or in Texas, West Virginia, and Kentucky. - correct answer ✔✔Rectangular government survey system Which of the following statements is accurate regarding electronic signatures and transactions in Kentucky? - correct answer ✔✔While Kentucky law allows electronic records and signatures, it doesn't require them. In Kentucky, how many units must an apartment building have to be considered commercial real estate?
- correct answer ✔✔Five or more On auction day, what impact does the type of auction (absolute or reserve) have on your buyers/bidders? - correct answer ✔✔Your buyers may have the high bid and still not get the property in a reserve auction. Which of the following is an example of the duty of obedience? - correct answer ✔✔Carrying out a client's instructions Which of the following is an example of a deed restriction? - correct answer ✔✔Fence height Gina's top-floor condo is one of the few in the complex with a 360-degree view, three bedrooms, a gourmet kitchen, and an express elevator. The general market is a little sluggish, and there are several
units available for sale in Gina's area. Which of the following factors suggests that Gina's condo might quickly sell at auction? - correct answer ✔✔Low inventory of a specific property type The Real Estate Settlement Procedures Act is a consumer protection statute that ______. - correct answer ✔✔Requires lenders to provide the consumer with certain disclosures for residential real estate transactions and prohibits kickbacks among settlement service providers What's the definition of a land contract? - correct answer ✔✔Sellers provide funds or credit to buyers in order to close the transaction. What is a primary factor a lender reviews when determining if a borrower is a good credit risk? - correct answer ✔✔Buyer's income In states without full disclosure requirements, whose responsibility is it to review disclosures, ask questions, and obtain a home inspection? - correct answer ✔✔Buyer In Kentucky, property management activities include ______. - correct answer ✔✔Marketing and leasing the property, collecting rent, paying bills, coordinating maintenance, and running regular reports Which of the following is deducted from potential gross income to determine effective gross income when appraising income property? - correct answer ✔✔Vacancy and collection losses What's your responsibility regarding contingencies when representing a buyer? - correct answer ✔✔You should use contingencies judiciously to protect your client and the deal. Built-to-Last Construction, Inc., entered into a contract to build a new home for Jane and Dick Monahan. The contract specified that the home must be completed by June 1. Built-to-Last Construction finished the home on May 28. This is an example of ________ of this part of the contract. - correct answer ✔✔Performance What's the amount a lender charges a borrower for using the lender's money? - correct answer ✔✔Interest
The Emery family, along with 20 other families, purchased a timeshare estate that will enable them to share a condominium in a resort community. A timeshare estate involves a _______ type of ownership. - correct answer ✔✔Fee simple The four stages of the neighborhood life cycle are growth, equilibrium, decline, and what? - correct answer ✔✔Rejuvenation How does KREC learn that an applicant has completed all required pre-licensing courses? - correct answer ✔✔The applicant provides a completion certificate or transcript, along with the application, to KREC. What's the overhang on a roof called? - correct answer ✔✔Eave Carla creates a trust to convey her assets to her children. Her brother, Alvin, is placed in charge of making sure the terms of the trust are carried out. In this example, Carla is the ________. - correct answer ✔✔Trustor Which of the following options best describes a wetland area? - correct answer ✔✔An area with sufficient water quantity that can support vegetation or aquatic life Easements are a type of encumbrance that can affect a property. Which of the following is true about easements? - correct answer ✔✔Easements are often established by a written agreement between the parties. Which of these is the proper time for a licensee to provide the Consumer Guide to Agency Relationships to a prospective client? - correct answer ✔✔Prior to receiving confidential information or signing a representation agreement What's the main reason for performing a neighborhood analysis when purchasing property? - correct answer ✔✔To evaluate potential resale or rental values based on the condition of neighboring properties Charles is selling his home to Sheila. Charles has an existing loan that he will continue to make payments on. Charles is also extending credit to Sheila for the balance of the purchase price. Sheila will make
monthly payments to Charles. What type of financing is used in this transaction? - correct answer ✔✔Wrap-around loan All Kentucky licensees must verify what type of insurance coverage every year when they renew their license? - correct answer ✔✔Errors and omissions insurance Thanks to this act, sites containing hazardous substances are identified, and responsible parties must clean them up. - correct answer ✔✔Comprehensive Environmental Response Compensation and Liability Act How do predatory lenders take advantage of consumers? - correct answer ✔✔Making loans to consumers who can't afford them Troy and Lena's home was being auctioned by their lender. They owed the lender $285,000 plus additional fees of $2,800, so they owed a total of $287,800. They're surprised to learn that the auction price was $322,000. Which of the following is true about the overage the lender will receive? - correct answer ✔✔Troy and Lena are entitled to any amount over that which they owe the lender. What must occur to effect a transfer of title? - correct answer ✔✔The grantor must deliver a valid deed to the grantee. Licensee Grant is representing both the seller and the buyer in a transaction. What is the term for this type of agency? - correct answer ✔✔Single-license dual agency Chance and Lucky have an option agreement between them in which no consideration is provided. Is this enforceable? - correct answer ✔✔No What protects the buyer before the sale and can reimburse the buyer after the sale if a title issue arises?
- correct answer ✔✔Title insurance James is obtaining an 80/20 loan. What does 80/20 signify? - correct answer ✔✔Amount financed/Down payment
Which of the following items go into the seller's credit column and the buyer's debit column? - correct answer ✔✔Prepaids Fiona signed an agreement to either buy or not buy Nick's vacant lot for $310,000 by a specific date. What's this agreement called? - correct answer ✔✔An option Keeping an area dry and keeping the air circulating can ______. - correct answer ✔✔Help prevent mold When a lower-quality property is adjacent to a higher-quality property, it can increase the value of the lower-quality property. What economic principle is this? - correct answer ✔✔Progression Which of the following opinions can a real estate licensee provide? - correct answer ✔✔An opinion regarding the listing price As a security precaution, when posting on social media, what should you do? - correct answer ✔✔Assume that the information will be passed along. A home sells for $225,000. Per the listing agreement, the total commission is 7% of the sales price. After half of that goes to the buyer's agent's managing broker Devin, the other half of it goes to Sheila, the buyer's agent. But the seller's agent, Kiko, also has an agreement with her brokerage for a 70/30 split, with the "70" going to her. How much is Kiko's commission? - correct answer ✔✔$5,512. Cracks, holes, or rotten areas on a soffit are common ______ issues. - correct answer ✔✔Roof For which location in a neighborhood shopping center are tenants willing to pay the owner a bonus? - correct answer ✔✔A spot in the center You're representing Janice in the purchase of a home. Under which of the following instances would it be unacceptable to disclose confidential information? - correct answer ✔✔You suspect the disclosure will enable Janice to buy a home at a lower price
A negotiable instrument must contain an order to pay or a ________. - correct answer ✔✔Promise to pay Which factor that influences value addresses the ease with which the property can be conveyed to another? - correct answer ✔✔Transferability ______ is a process in which an appraiser determines a probable range of values for a property by comparing a group of comparable sales to the subject. The appraiser attempts to include both superior and inferior units of comparison, such as age, transaction price, etc. - correct answer ✔✔Bracketing How many anchor tenants does a community shopping center typically have? - correct answer ✔✔Two The annual deadline to pay the errors and omissions insurance premium obtained through the Kentucky Real Estate Commission is _______. - correct answer ✔✔11:50 p.m., March 31 Which of the following statements is true regarding assignments and subleasing? - correct answer ✔✔Both assignment and subleasing require landlord approval. Joe signed a listing agreement with Marisa. A week later, Marisa's co-worker, Tina, showed Joe a property that he's interested in buying once his home sells. A week after that, Ross submitted an offer on Joe's property on behalf of his buyer client. Who is Joe's agent? - correct answer ✔✔Marisa What is an auction called where the highest bidder gets the property, and may walk away with a property for as little as $100? - correct answer ✔✔Absolute With which approach to value does the appraiser analyze a property's ability to earn future income? - correct answer ✔✔Income approach Which one of these property manager's duties can only be performed by a commercial property manager, and cannot be performed by a residential property manager? - correct answer ✔✔Negotiate leases.
