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 type of deed provides the purchaser of real estate the greatest protection?

Options :

A : quitclaim deed

B : trustees deed

C : general warranty deed

D : deed in trust

Answer: C

Question 3

Under an option to buy, the ownership of land will change when the

Options :

A : option is signed by the parties.

B : optionor does not fulfill the obligation.

C : optionee exercises the option.

D : specified time has expired.

Answer: C

Question 4

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 5

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