Question 1

When lending standards are tightened, lenders typically require

Options :

A : a higher loan-to-value ratio.

B : a lower loan-to-value ratio.

C : a balloon payment after 5 years.

D : a waiver of the Equal Credit Opportunity Act.

Answer: B

Question 2

Which of the following is incorrect regarding carbon monoxide inspection?

Options :

A : There is no additional fee if the inspection is done at the same time as the smoke detector inspection.

B : The inspection must be completed by a building inspector.

C : The inspection must be completed by the local fire department.

D : The inspection must be completed as a prerequisite to sell a residential property burning fossil fuel.

Answer: B

Question 3

A home warranty for a previously owned home would usually cover which of the following items?

Options :

A : structure or flooding issues after closing

B : only home systems such as the roof, plumbing, and foundation

C : major appliances and home systems such as electric, heating, and plumbing

D : major appliances, the buyer's personal property, and any seller added fixtures

Answer: C

Question 4

A contract is delivered to the listing broker by a cooperating broker. The listing broker makes an appointment with the owner to present the offer at 7 p.m. of that day. Before 7 p.m., two more offers arrive on the same property. Which offer should be presented to the owner at the 7 p.m. appointment?

Options :

A : All three of the offers

B : The first offer received

C : The offer with the highest sale price

D : The offer most favorable to the seller, including price and all terms

Answer: A

Question 5

A client makes an offer on a residential property and provides a check for $2,000 as earnest money. The client instructs his buyer agent to hold the check for five days so it will clear the bank. What should the agent do with the check?

Options :

A : Provide the check to his broker immediately with the client's instruction to hold it for five days before depositing it in the escrow account.

B : Inform the client that the offer will be presented without any earnest money since the agent is required to submit all offers.

C : Hold it for five days before submitting the check to his broker for deposit in the escrow account.

D : Refuse to present the offer to the seller's agent until the earnest money can be deposited.

Answer: A