Final Exam #1 for Sensibl Real Estate Academy Page 1 of 151 A government-insured loan which has minimum property requirements, permits a lower down payment, requires an upfront insurance premium is known as a/an: Home Equity Loan Conventional Mortgage FHA Mortgage Adjustable-Rate Mortgage Page 2 of 151 After the inspection has been completed the buyer wishes to come to an agreement with the seller on two repairs and some credits for future work that will need to be completed. The selling agent will complete, and the buyer will sign which of the following forms to negotiate the changes to the agreement? WB-41 – Notice Relating to Offer to Purchase WB-44 – Counter-Offer WB-40 – Amendment to Offer to Purchase WB-46 – Multiple Counter Proposal Page 3 of 151 Association fees must be disclosed in the Residential Condominium Listing Contract – Exclusive Right to Sell. Which line(s) of the agreement include the association fee information? Line 22 Line 24 Line 21 Lines 38 & 39 Page 4 of 151 A landlord may enter the premises without advance notice if all of the following exist except: The tenant requests or consents to the time the landlord plans to enter the dwelling unit A health or safety emergency exists The tenant is absent, and the landlord reasonably believes that entry is necessary to preserve or protect the premises The tenant is absent, but the landlord wants to check to make sure the carpet is still intact and unstained Page 5 of 151 Which of the following form is used to leave all prior terms and conditions the same as stated in a Offer to Purchase except for specific items stated in the form: WB-41 – Notice Relating to Offer to Purchase WB-44 – Counter-Offer WB-40 – Amendment to Offer to Purchase WB-1 – Residential Listing Contract Page 6 of 151 A sale completed on a home located in Somers Township in May for $196,000.00. In December a new property tax bill will be sent out letting the new owner know what is owed. The township assessed the value of the property at $176,000.00. The mill rate was used to calculate property taxes was 9.1%, which was an increase from 8.7% from the prior year. What will the total property taxes owed for this year be? $17,836.00 $15,312.00 $16,016.00 $17,052.00 Page 7 of 151 A point where additional updates/upgrades to the real estate will fail to increase the overall value of the real estate is known as: Progression Diminishing Returns Supply & Demand Regression Page 8 of 151 Improvements, benefits, trees, water rights, and reasonable air space are all things that are? Personal Property Real Property Appurtenances Easements Page 9 of 151 Public Controls based on state, county, and municipal governments restrictions which are enforceable under: Deed Restrictions Police Powers Homeowners Associations Laches Page 10 of 151 A buyer is interested in a house so they submitted a mortgage application to her mortgage broker. The broker must then provide the buyer with a/an: Loan estimate and Closing Disclosure Self-disclosure agreement Option contract and buyer representation agreement Checklist and information necessary to fulfill the entire loan Page 11 of 151 In accordance with the Americans with Disabilities Act, a place of public accommodation includes: One to four residential units All residential units A retail-store Only properties built after 1988 Page 12 of 151 Persuading someone to sell by telling her or him that minorities are moving into the neighborhood is illegal and is called: Steering Puffing Blockbusting Redlining Page 13 of 151 When someone uses another’s land or portion of their land for a specific purpose is known as a/an: Restrictive Covenant Easement Lien Mortgage Page 14 of 151 If nothing is stricken in lines 60 & 61 of the WB -11 Residential Offer to Purchase which option is automatically selected: Drafting Firm Selling Firm Seller Listing Firm Page 15 of 151 The name of the form that is used to create a legally binding contract between the buyer and the seller for the purchase of a Condo in Wisconsin is: WB-1 – Residential Listing Agreement Exclusive Right to Sell WB-11 – Residential Offer to Purchase WB-25 – Bill of Sale WB-14 – Residential Condominium Offer to Purchase Page 16 of 151 Any person engaging in the selling or buying of any real estate shall need to be come licensed if a pattern of sales is created equal to: 5 sales in one year or 10 sales in 5 years 1 sale in 5 years or 10 sales in one year 4 sales in 4 years or one sale per year for 4 years 1 sale in 5 years or 5 sales in 10 years Page 17 of 151 A licensee, when engaging in real estate practice that involves real estate improved with a structure, shall do all the following except: Conduct a reasonably competent and diligent inspection of accessible areas of the structure and immediately surrounding areas of the property to detect observable, material adverse facts Make inquiries of the seller on the condition of the structure, mechanical systems and other relevant aspects of the property as applicable. May not exaggerate or misrepresent facts in the practice of real estate. May not allow any third-party experts to inspect the property and improvements Page 18 of 151 Which of the following is protected by the Federal Fair Housing Act? Sexual Orientation Age Marital Status Family Status Page 19 of 151 A landlord of an apartment building must have each tenant fill out this form because it was built prior to 1978: Pet Restrictions and Fee Policy Offer Addendum S – Lead Based Paint Disclosures and Acknowledgements Addendum L to Lease – Lead Based Paint Disclosures and Acknowledgements Offer to Purchase. Page 20 of 151 When would an amendment to the offer to purchase be completed? Prior to acceptance of an offer Prior to the offer being accepted Once a change must be agreed to after acceptance of the offer While negotiating a price change before acceptance Page 21 of 151 All the following are a component of a licensee’s fiduciary duties except for: Obedience Commission Splits Loyalty Disclosures Page 22 of 151 The duty to protect your confidentiality, to safeguard trust funds, and when negotiating, to present contract proposals in an objective and unbiased manner disclosing the advantages and disadvantages of the proposals are all part of: Disclosure to Customer Disclosure to Client Real Estate Condition Report Disclosures Multiple Representation Relationships and Designated Agency Page 23 of 151 Which forms may a licensee use in a real estate transaction? Board Approved Forms Addendum created by an Agent Real Estate sales contract from Alaska Contract drafted by a seller Page 24 of 151 The buyer is ordering flooring for their home they have an accepted offer on but realized they do not have the measurements for one of the bedrooms. They ask the agent to verify the square footage of the master bedroom. The agent rushes over and learns the width of the room is 16' and the length of the room is 25'. What square footage does the agent provide? 350 sq ft 400 sq ft 376 sq ft 415 sq ft Page 25 of 151 All down payments, earnest money deposits or other money related to a conveyance of real estate that is received by a broker, salesperson, or time-share salesperson on behalf of the broker's, salesperson's or time-share salesperson's principal or any other person shall be deposited within 48 hours into: Non-Interest-Bearing Real Estate Trust Account Interest-Bearing Real Estate Trust Account Individual Retirement Account Landlord Bank Account Page 26 of 151 Two managing brokers from different brokerage got together to play golf. During their private round of golf, the two brokers quietly decided to that the commission rates for the two brokerage firms should match. This is an example of: Market Allocation Fee Splitting Price Fixing Group Boycotting Page 27 of 151 Loans made without government guarantees or insurance are seen as conventional loans. These conventional loans often have higher down payment and a lower ___________________. Mortgage Insurance Premium Loan-to-Value Ratio Interest Rate Private Mortgage Insurance Page 28 of 151 Which option best describes an exclusive-right-to-sell listing? The listing broker will be paid a commission only if the listing agent procures a buyer The agent who procures the buyer will be compensated The listing agent only receives commission if the property sells for a certain amount The listing broker and listing agent will be paid a commission no matter who procures the buyer Page 29 of 151 Multiple Counter Proposal is used when the seller is trying to: Enter negotiations with one buyer Enter negotiations with 3 buyers Enter negotiations with the listing agent and selling agent Enter negotiations with the foundation expert inspecting the basement Page 30 of 151 Tenants in Common do not have the right ___________________ . Survivorship Undivided Interest Equal Possession Get Married Page 31 of 151 The same firm may represent the buyer & the seller, but the firm must remain neutral regardless if one or more agents is involved is: Multiple representation with designated agency Multiple representation without designated agency Rejection of multiple representation relationship Multiple representation without pants Page 32 of 151 Which Lines of the WB-11 Residential Offer to Purchase would you refer a customer to if they asked about Sex Offenders in the area of a house they were making an offer on? Lines 453 to 455 Lines 465 to 467 Lines 510 to 512 Lines 568 to 570 Page 33 of 151 The probable price a willing, informed buyer would pay to a willing, informed seller is known as: Assessed Value Appraised Value Market Value Construction Value Page 34 of 151 The ___________________ is meant to protect a buyer in the case where a lien appears between closing and the date the deed is recorded with the Register of Deeds. GAP Endorsement Insurance Title Insurance Umbrella Policy Special Warranty Deed Page 35 of 151 The same firm cannot represent both me and the other the party in the same transaction is: Multiple representation without designated agency Multiple representation with designated agency Multiple representation with immunity Rejection of multiple representation relationships Page 36 of 151 A licensee must disclose the ___________________ in all advertisements. known issues with the home brokerage name they are associated with number of children living in the home number of people living in the home Page 37 of 151 If a licensee represents which of the following it must be disclosed in writing to all parties to the transaction: The licensee’s great aunt condominium The licensee’s father’s property that was sold two years ago The licensee’s sister multi-unit building The licensee’s brother-in-law’s mother Page 38 of 151 A licensee is not permitted to provide a ___________________ when a prior client told a friend to user them for brokerage services. Origination Fee Referral Fee ATM Fee Home Warranty Fee Page 39 of 151 Lines 217 to 254 of the WB-4 Residential Condominium Listing Contract – Exclusive Right to Sell are in reference to: Seller Cooperation with Marketing Efforts Fair Housing Condominium Disclosure Materials Right of First Refusal Page 40 of 151 A firm shall retain all records regarding all real estate transactions for at least ___________________. 7 years 2 years 4 years 5 years Page 41 of 151 What is the highest form of ownership? Joint Tenancy Fee Simple Partnership Tenants in Common Page 42 of 151 All of the following provisions would void a Rental/Lease agreement except for? Allow the landlord to increase rent, decrease services, evict, refuse to renew a rental agreement, or threaten to do so because the tenant contacted law enforcement, health services or safety services. Holds the landlord harmless from any liability or responsibility for property damage or personal injury caused by a landlord’s negligent acts or omissions. Allow the landlord to charge late fees to the tenants once a specific grace period has ended. Allow the landlord to surrender their duties to maintain the premises and deliver save and habitable housing. Page 43 of 151 Mortgages that are originated with the intent to be sold on the secondary mortgage market could be sold to: Federal Reserve Fannie Mae FDIC FEMA Page 44 of 151 The same firm may represent the buyer and the seller for as long as the same Agent does not represent both is: Multiple representation without designated agency Multiple representation with designated agency Multiple representation with immunity Rejection of multiple representation relationships Page 45 of 151 A buyer is taking ownership of a home from biding at an open auction run by the Kenosha County Sheriff’s Department. The Title to the real estate was most likely conveyed by a: Warranty Deed Quitclaim Deed Sheriff’s Deed Special Warranty Deed Page 46 of 151 Which clause allows the entire loan balance due if a borrower defaults on a payment? Payment Default Clause Escalation Clause Prepayment Penalty Clause Acceleration Clause Page 47 of 151 The WB-13 Vacant Land Offer to Purchase is different from the WB -11 Residential Offer to Purchase in that: FIRPTA doesn’t apply to vacant land purchases There is no notice regarding Sex Offenders for vacant land purchases Inspections are only permitted during the first 15 days of a contract A contingency may used to ensure access is available to a public roadway Page 48 of 151 A licensee or firm may not advertise a property on behalf of someone else without: A signed buyer agency agreement A signed offer to purchase A signed listing agreement A signed amendment to the listing agreement Page 49 of 151 How many years may a licensee have potential legal actions brought against him related to a transaction in real estate? 7 years 5 years 2 years 9 years Page 50 of 151 A ___________________ would be used to change the terms of an offer ___________________. WB-44 Counter-Offer & has been accepted WB-44 Counter-Offer & not yet accepted WB-44 Counter-Offer & that is still pending WB-46 Multiple Counter Proposal & that is still pending Page 51 of 151 A licensee is being represented by Shannyn. Shannyn has helped them see multiple homes. Their preapproval is for $250,000. In the buyer agency agreement, the buyer indicated that the same firm may represent them and the other party as long as the same agent was not representing both of the clients of the firm. Bryan listed a home this morning for $245,000. Shannyn felt that his new listing may be a great option for her buyer. Shannyn reached out to Bryan to see if they could get into the listing that afternoon. The broker while reviewing both agency agreements discovered that the seller had selected that their licensee must remain neutral regardless of one or more agents being involved in the same transaction. The broker also saw that the buyer was preapproved through TruStone Credit Union. The broker has found that the representation must now be: Multiple representation with designated agency Multiple representation with immunity Multiple representation without designated agency Rejection of multiple representation relationships Page 52 of 151 A ___________________ transfers ownership from the existing owner to the buyer. Title Policy Short Sale Deed Security Agreement Page 53 of 151 A licensee was in the middle of a transaction and needed assistance from the broker with the transaction. The licensee contacted the broker at 11:30 am on a Sunday. It was a busy Sunday for the broker and he was out with some friends for a morning bike ride, then immediately left to go pick up his mother and bring her shopping at several stores, had to make food for the entire family and then bring his brother to the store for some additional shopping. The broker later called the agent back at approximately 7:30 PM to discuss their issue. The Broker: acted appropriately within the provisions of the law because the delay was reasonable. acted inappropriately within the provisions of the law because it was an unreasonable delay. acted appropriately within the provisions of the law because the law doesn’t indicate any specific hours, they must be available at. didn’t act appropriately with the provisions of the law because the delay was reasonable. Page 54 of 151 Which of the following disclosers is not required when purchasing a condominium? Projected annual operating budget for the Condominium including reasonable details concerning the estimated monthly payments by the purchaser for assessments and other monthly charges. General description of any contemplated expansion of Condominium including each stage of expansion and the maximum number of Units that can be added to the Condominium The association summary report Proposed or existing Declaration, bylaws and any rules or regulations, and an index of the contents Page 55 of 151 In doing a comparative market analysis the licensee will use ___________________ and ___________________ proprieties to provide their opinion on the price of the home. Recently listed & Recently Sold Currently Listed & Recently Sold Recently Accepted Offers & Recently Sold Current Listings & Withdrawn Page 56 of 151 Lead paint is a hazard when it is: A known & reported issue Ingested Disclosed Painted Over Page 57 of 151 No firm, and no licensee associated with a firm, may negotiate on behalf of a party who is not the firm's client unless the firm, or a licensee associated with the firm, provides to the party a copy of the following written disclosure statement: Disclosure to Customer Disclosure to Subagent Disclosure to Client Real Estate Condition Report Page 58 of 151 A licensee shall use the board approved forms when: acting as an agent or a party in a real estate or business opportunity transaction. acting badly in a stage play acting as a party in a commercial transaction the licensee is the owner of a property being sold by another firm Page 59 of 151 Any and all referral type fees that are earned by a licensee must be paid to: The licensee directly The licensee’s broker The selling licensee only The licensee’s accountant Page 60 of 151 Which of the following would be an example of a deed restriction? Closing Date Requirements House Color Tax Rate Loan Type Page 61 of 151 When negotiating on behalf of a party to a transaction a licensee would do any of the following, except? Acting, whether directly or indirectly, as an intermediary by facilitating or participating in communications between parties related to the parties' interests in a transaction. In this paragraph, providing advice or opinions on matters that are material to a transaction in which a person is engaged or intends to engage or showing a party real estate does not, in and of itself, constitute acting as an intermediary by facilitating or participating in communications between parties. Completing, when requested by a party, appropriate board-approved forms or other writings to document the party's proposal consistent with the party's instruction. Presenting to a party the proposals of other parties to the transaction and giving the party a general explanation of the provisions of the proposal. Disclose that the property was the site of a specific act or occurrence, if the act or occurrence had no effect on the physical condition of the property or any structures located on the property. Page 62 of 151 A material adverse fact is defined as which of the following: Your firm may, with your authorization in the agency agreement, engage other firms (subagent firms) to assist your firm by providing brokerage services for your benefit. A subagent firm and the agents associated with the subagent firm will not put their own interests ahead of your interests. A subagent firm will not, unless required by law, provide advice or opinions to other parties if doing so is contrary to your interests. An Adverse Fact that a party indicates is of such significance, or that is generally recognized by a competent licensee as being of such significance to a reasonable party, that it affects or would affect the party's decision to enter into a contract or agreement concerning a transaction or affects or would affect the party's decision about the terms of such a contract or agreement. An item of property which is physically attached to or so closely associated with land or buildings so as to be treated as part of the real estate, including, without limitation, physically attached items not easily removable without damage to the premises, items specifically adapted to the premises Information that indicates that a party to a transaction is not able to or does not intend to meet his or her obligations under a contract or agreement made concerning the transaction Page 63 of 151 An insurance premium that a borrower would have to pay due to the increased risk a lender has by providing them with a loan with a loan-to-value that is above 80% on a conventional mortgage is known as: Mortgage Insurance Premium Primary Mortgage Instrument Mortgage Insurance Payments Private Mortgage Insurance Page 64 of 151 A listing where the seller receives a set amount, and the broker receives anything over that set amount, which is also prohibited in the State of Wisconsin is known as a/an: Exclusive Agency Agreement Exclusive Right to Sell Agreement Open Listing Net Listing Page 65 of 151 The buyer agent is able to be represented by a licensee of SENSBIL Realty and the Seller is able to be represented by a licensee of SENSBIL Realty because both clients selected the options within their agency agreements for: Multiple representation with designated agency Multiple representation with immunity Multiple representation without designated agency Rejection of multiple representation relationships Page 66 of 151 When would the seller have to provide the buyer with the condominium disclosure materials: Within 10 days prior to acceptance. Within 15 days prior to closing. Within 10 days of acceptance of offer but no later than 15 days prior to closing. Within 15 days of acceptance of offer but no later than 10 days prior to closing. Page 67 of 151 The value of a property will be increased by more expensive homes in the area is known as: Progression Diminishing Returns Supply & Demand Regression Page 68 of 151 Which of the following offers to purchase has a proposed use contingency that would possibly be included in the offer to purchase? WB-11 – Residential Offer to Purchase WB-13 – Vacant Land Offer to Purchase WB-14 – Residential Condominium Offer to Purchase WB-40 – Amendment to Offer to Purchase Page 69 of 151 An exception to existing zoning regulations that are permanent is known as: Zoning Variance Rezoning Grandfather Clause Upzoning Page 70 of 151 Which of the following WB forms would be utilized if one party was telling another party something that didn’t require both parties to come to an agreement on: WB-41 – Notice Relating to Offer to Purchase WB-44 – Counter-Offer WB-40 – Amendment to Offer to Purchase WB-36 – Buyer Agency Agreement Page 71 of 151 The buyer found a house that they loved and made an offer on the home for $350,000.00. The offer was accepted. The seller is then responsible to pay a transfer fee or transfer tax on the sale of the home. Home much is the transfer fee for this transaction? $1,050.00 $1,000.00 $1,150.00 $10,500.00 Page 72 of 151 Once a licensee is made aware of one or more issues or defects with a property, the licensee: Shall ignore it and move on with the transaction Shall disclose the information to all parties in the transaction in writing in a timely fashion Shall email all parties involved in the transaction Shall hire a third-party investigator to inspect the issues or defects Page 73 of 151 A property has a variety of liens against it. Which of the following deeds would give the grantee the greatest protections against the existing liens on the property? Sheriff’s Deed Quitclaim Deed Warranty Deed Tax Deed Page 74 of 151 The seller listed it for $155,000.00 and received for the list price. The listing agreement shows a listing commission rate of 5.0% and a co-brokerage split of 2.0%. The Selling Broker’s commission is $3,100.00. The Selling broker has an agreed agent split rate of 50%. What is the final amount the selling agent will receive after closing? $1,550.00 $4,650.00 $3,100.00 $2,325.00 Page 75 of 151 Two agents come together at an after-hours party and start discussing different issues they have been having with other agents. The one agent says that they should just stop working with the agents from C’est La Vie Realty. They shake on it and go on with the rest of their night. What are the two agents participating in at this point? Market Allocation Fee Splitting Price Fixing Group Boycotting Page 76 of 151 RESPA requirements include: A limitation on brokerage fees A prohibition of a broker affiliation with a provider of services for a real estate closing The prohibition of a broker receiving a referral fee from a lender Maximum allowable interest rates Page 77 of 151 An Adverse Fact is something that impacts? Safety of those at a showing Only applies if something happened to the property that impacted its structural integrity Information that indicated a party of the transaction will meet all obligations set forth in the contract None of the above Page 78 of 151 An insurance policy that indemnifies an owner for defects in title. Errors & Omissions Insurance Umbrella Policy Home Warranty Policy Title Insurance Page 79 of 151 Which one of the following classes are only protected under the Wisconsin Fair Housing law and not Federal Fair Housing laws? Race Sex Lawful Source of Income Color Page 80 of 151 Homeowner’s associations participation is mandatory for a specific condominium a buyer is interested in that has a shared private well and requires the payment of ___________________ by each owner. Property Taxes Association Dues Sprinkler System Fees Property Water Bills Page 81 of 151 The buyer got an accepted offer on a home in Brighton for the sale price of $243,900.00. The buyer was planning to put a down payment of $7,317.00. The buyer also brought down their interest rate by two points. The home was listed at $237,000.00 which is where the sellers had hoped the offer would be at. What is the loan to value ratio for this buyer’s mortgage loan? 96.91% 97.00% 98.31% 95.46% Page 82 of 151 This Offer shall be null and void if Buyer makes timely delivery of the Notice of Defects and written inspection report(s) and: The buyer selected “shall” have the RIGHT TO CURE in the offer to purchase The buyer selected “shall not” have the RIGHT TO CURE in the offer to purchase The buyer selected “shall not” have the RIGHT TO CURE in the offer to purchase and seller delivers written notice that seller will not cure The buyer selected “shall not” have the RIGHT TO CURE in the offer to purchase and will cure the Defects in a good and workmanlike manner Page 83 of 151 A commission is earned when a seller, agent or firm does the following except: A ready, willing and able buyer submits a bona fide written offer to Seller or Firm for the property at, or above, the list price and on substantially the same terms set forth in the listing and the current WB-11 Residential Offer to Purchase, even if the seller does not accept the buyer’s offer. One seller of the property sells, conveys, exchanges or options, an interest in all or any part of the property to another owner. Seller sells or accepts an offer which creates an enforceable contract for the sale of all or any part of the property. The seller grants an option for right of first refusal for the property and that option for the right of refusal is accepted. Page 84 of 151 The EPA recommends remediation of radon when the radon levels are at or above: 2.0 picoCuries per liter (pCi/L) 4.0 picoCuries per liter (pCi/L) 5.5 picoCuries per liter (pCi/L) 6.0 picoCuries per liter (pCi/L) Page 85 of 151 The WB-36 Buyer Agency/Tenant Representation Agreement provides for the following, except: Agent to Locate an Interest in Property for the client Negotiate the Acquisition of an Interest in Property for Client Gives the Firm and its agents the exclusive right to act as Buyer's Agent Allows the Client to enter into another agreement to retain another buyer’s agent(s) Page 86 of 151 A licensee must do all the following except for: Be responsible for discussing with the party with whom the licensee is working with or representing any error communicated to the and the party shall determine whether to request any changes to address the error. Submit to the firm in a timely manner all documents that are executed by the parties and records related to the brokerage services provided on behalf of the firm and transactions that are used or received by the licensee. When the firm is negotiating on behalf of a party, the duty to present contract proposals in a subjective and biased manner and disclose the disadvantages of the proposals. Keep confidential any information given to the firm in confidence, or any information obtained by the firm that the firm knows a reasonable person would want to be kept confidential, unless the information must be disclosed by law. Page 87 of 151 A listing firm may engage other firms to assist the listing firm in providing brokerage services for your benefit. This practice where the other firm and its agents will not put their own interests ahead of the seller’s interests is known as: Multiple representation Subagency Designated Agency Material Adverse Fact Page 88 of 151 Which Statement about Veterans Affairs (VA) mortgages is FALSE? It does not require mortgage insurance It does not require a down payment It does not have a maximum debt ratio It does not have stricter appraisal process guidelines Page 89 of 151 A licensee receives a call from a potential buyer looking to see a property in a predominately minority neighborhood. The licensee should do which of the following: Show the property as requested Refuses to show them the property, but show them properties in neighborhoods that match their e Show them a property in a predominately Caucasian neighborhood Refer them to another licensee Page 90 of 151 A home is listed on the MLS Co-broker Offering is 2.4%. The seller listed it for $120,000.00 and received for the list price. The listing agreement shows a listing commission rate of 5.50%. How much will the Listing Broker’s commission be if they have an agreed split to receive 40% of all commissions the listing agent brings in? $1,728.00 $2,880.00 $1,488.00 $1,152.00 Page 91 of 151 A licensee may not disclose information known by the licensee regarding any offer received except that: the seller is willing to accept offers at a price range of $10,000 to $15,000 lower than the ask price. the buyer can afford to spend $20,000 more than the offer price. the offer has a financing contingency that is due in 35 days. the offer is subject to a clause requiring removal of certain contingencies upon the occurrence of an event. Page 92 of 151 When working with a licensee the seller decided that they felt better being represented by an agent separate from any licensees that are part of the same brokerage. The option the seller is selecting is known as: Multiple representation without designated agency Multiple representation with designated agency Multiple representation with immunity Rejection of multiple representation relationships Page 93 of 151 Lines 12 to 16 of the WB-36 Buyer Agency/Tenant Representation Agreement relate to: The initial search parameters for the firm. The exclusions of specific houses from the search. The amount of the earnest money needed for an offer. The amount of the down payment the buyer wants to use. Page 94 of 151 Which of the following is an example of an Adverse Fact? The western basement foundation wall has shifted. The southern basement wall had steel beams installed 13 years ago and there is no evidence of further movement. The eastern basement wall has an egress window installed. The buyer has paid the earnest money even though he had initially said he would not. Page 95 of 151 The vacant land disclosure report includes all the following except: Environmental Land Use Structural and Mechanical Taxes, Special Assessments, Permits, Etc. Page 96 of 151 An interest-bearing trust account is required when holding: Firm Funds Client Funds Brokerage Commissions Appurtenances Page 97 of 151 A buyer wanted to advise the seller that they were going to be removing the Closing of Buyer’s Property Contingency & Bump Clause from the Offer to Purchase they would deliver: WB-45 – Cancellation Agreement and Mutual Release WB-44 – Counter-Offer WB-41 – Notice Relating to Offer to Purchase WB-36 – Buyer Agency Agreement Page 98 of 151 Personal Property that is attached to real property is called: Annual Crops A Fixture Emblements Mineral Rights Page 99 of 151 The licensee’s involved with a customer or client are required to do all of the following except: The duty to protect your confidentiality The duty to exercise reasonable skill and care in providing brokerage services to you. The duty to disclose all possible issues known to the licensee no matter the scope or magnitude of the issue. The duty to disclose to you in writing certain material adverse facts about a property unless disclosure of the information is prohibited by law. Page 100 of 151 When representing a client, a licensee will not do any of the following except: Place their interests ahead of the interests of the client. Fulfill any unlawful requests that are within the scope of the agency agreement. Refuse to provide accurate information about market conditions within a reasonable time when requested. Present contract proposals in a subjective and biased manner. Page 101 of 151 When must a Disclosure to Customer be completed? When the broker & the buyer enter a buyer agency agreement When the broker & the seller enter an exclusive right to sell listing agreement When buyer the broker is representing has made an offer on a property that is not listed in the MLS When an agency agreement is not entered Page 102 of 151 A firm must do all the following except: Review all documents prior to closing to ensure all documents were completed accurately and without errors. Retain and keep safe all documents and records relating to transactions submitted to the firm. Delegate the duty of a supervising broker to an unlicensed personal assistant. Provide licensees with reasonable access to a supervising broker for the purpose of consulting regarding real estate practice issues. Page 103 of 151 Private and voluntary restrictions enforceable by those who are subject to the same restrictions is known as: Deed Restrictions Public Controls Restrictive Covenant Laches Page 104 of 151 A licensee associated with a firm shall submit documents and records related to transactions that are utilized, prepared, or receive by the licensee to the firm: within ten days within 15 days in a timely manner two weeks from closing Page 105 of 151 Personal property may not be exchanged as part of the real estate transaction, what must be used to exchange personal property? Real Estate Condition Report Cash Register Receipt Billing Notice Bill of Sale Page 106 of 151 The closing occurred on June 1st. The estimated property tax for the year is $3,558.75. How much will show up on the closing statement as a debit to the seller for the time they owned the home. (A year is 365 days) $9.75 $2,086.50 $1,472.25 $1,479.80 Page 107 of 151 According to the Occupancy provision set forth in the WB-1- Residential Listing Contract, the Seller should do all of the following when selling a single-family home to a new owner who will be living at the home, except for: Give buyer occupancy of the property at closing. Leave property in Broom Swept condition Remove all personal property Leave any unwanted items for the buyer Page 108 of 151 In a WB-1, WB-11 and WB36 what delivery option is always included in every contract? Fax Commercial Personal USPS Page 109 of 151 Information that indicates that a party to a transaction is not able to or does not intend to meet his or her obligations under a contract or agreement made concerning the transaction is known as: Pattern of sales Material adverse fact Adverse fact Qualified third party Page 110 of 151 A landlord may not do any of the following except: Refuse to rent to someone who is blind Refuse to rent to someone who is in a wheelchair Refuse to rent to someone who has been stalked Refuse to rent to someone who is a known methamphetamine user Page 111 of 151 An agency agreement may be terminated in all the following ways except: A listing agreement expires A buyer closes on a home An agent decides they no longer want to work with a buyer A seller comes to an agreement with the broker to remove their listing from the market Page 112 of 151 The real estate condition report is used by the ___________________ to disclose potential ___________________ with the property that they are selling. Seller & ideas they have Seller & Defects Buyer & Adverse Facts Seller & Minor Issues Page 113 of 151 No licensee may provide brokerage services on behalf of a firm unless which of the following apply: The licensee is not associated with the firm. The broker is associated with a firm and engaged in independent real estate practice The licensee is associated with the firm and has notified the department that the licensee is associated with the firm. The licensee is associated with a firm and hasn’t notified the department that the licensee is associated with the firm. Page 114 of 151 Severalty Ownership means: Ownership by one person Ownership by several people Ownership by stockholders in a corporation Ownership with an inherent right to survivorship Page 115 of 151 If lines 589 of the WB-11 Residential Offer to Purchase are initialed which of the following situations applies: The offer was countered The offer was accepted The offer has contingencies The offer was postponed Page 116 of 151 A licensee shall promptly distribute, to the following persons, exact and complete copies of offers, amendments and counter-offers which have been accepted and signed by all the parties: The seller The buyer and seller The listing and selling broker The buyer, seller, listing broker and selling broker Page 117 of 151 In a planned unit development, a seller has ownership of ___________________ unlike condominiums where they would own ___________________. The unit; the home & lot the home; the unit & lot the home & lot, the common areas the home & lot; the unit Page 118 of 151 Bill of Sale allows the seller to transfer ownership of: Real Property Seller’s Personal Property Buyer’s Motor Vehicle The AC Unit Page 119 of 151 A firm shall provide to a client a copy of which written disclosure statement not later than the time the firm enters into an agency agreement with the client: Disclosure to Customer Disclosure to Subagent Disclosure to Client Real Estate Condition Report Page 120 of 151 Tenants in Common are different from Joint Tenants in that: If a Joint Tenant dies his portion goes to his heirs If a Joint Tenant dies his portion is willed to his son If a Joint Tenant dies their portion goes to the surviving Joint Tenants If a Joint Tenant dies their portion is willed to the surviving Joint Tenants Page 121 of 151 A HVAC professional installs a new furnace into a home that is listed for sale. If the seller does not pay for the installation, the HVAC professional could file a/an: Tax Lien Mechanic’s Lien Closing Date Forbearance Grace Period Waiver Page 122 of 151 A qualified mortgage is one that meets all the following requirements except: Amortized over no more than 30 years Insured by FHA or HUD Balloon payments are not allowed Must include Private Mortgage Insurance Page 123 of 151 How many days does the buyer of a condominium unit have to rescind the offer to purchase for not receiving all required disclosure documents per the Condominium Offer to Purchase the seller accepted? 5 calendar days 5 business days 10 calendar days 7 business days Page 124 of 151 A licensee must renew their license every: Year 2 years 3 years 5 years Page 125 of 151 A licensee who is working with a customer may turn them into a client by: Telling the buyers, they must work with that licensee since they showed them a home. Having the buyers tell the licensee that they want to work with them. Having the buyers and the agent sign an expressed Buyer Agency Agreement Having the buyers sign a Disclosure to Customer form. Page 126 of 151 A neighbor’s right to utilize a portion of your driveway to gain access to their property is an example of what? Condemnation Covenant Easement Eminent Domain Page 127 of 151 In an account that a brokerage has to hold client funds, any interest that is earned is paid to: The County of Kenosha The Firm The Department of the Interior The Department of Administration of Wisconsin Page 128 of 151 Fair presentation of written proposals includes all the following except: Licensees shall present all written proposals in an objective and unbiased manner to their clients and customers. Licensees shall inform their clients and customers of the advantages and disadvantages of all submitted written proposals. A licensee shall withhold any written proposal from presentation pending the party's action on a written proposal previously presented unless the presentation would be contrary to specific written instructions from the licensee's client or customer. A licensee shall promptly present all written proposals received to the licensee's client or customer unless the presentation would be contrary to specific written instructions from the licensee's client or customer. Page 129 of 151 The rejection of multiple representation relationship means which of the following: No agent from my firm can list a property No agent from ABC Realty can show a property listed by Lover’s Realty. Any worker from Pimco Real Estate, Inc. may not see the property The same firm who listed the property can’t have any of their clients see or make an offer on the listed property Page 130 of 151 Per the WB-14 Residential Condominium Offer to Purchase one-time fee that may have to be paid because of a purchase of a condominium is known as: Association Fee Unit Transfer Fee Storage Unit Fee Transfer Tax Page 131 of 151 If the property is leased, and that lease will extend beyond closing, what must the seller assign to the buyer when they close. Assign the sellers rights to the buyer Transfer all security deposits Transfer all Prepaid rents All the above Page 132 of 151 The name of the form that is used to create a legally binding contract between the buyer and the seller for the purchase of a single-family home in Wisconsin. WB-1 – Residential Listing Agreement Exclusive Right to Sell WB-11 – Residential Offer to Purchase WB-25 – Bill of Sale WB-14 – Residential Condominium Offer to Purchase Page 133 of 151 The seller was unhappy with the fact that buyer wants to back out of the transaction and tells the listing agent they want to continue with the sale. The listing agent advises that the buyers sent over a cancellation and mutual release. The listing agent said that if the seller doesn’t sign the cancellation and mutual release then they could take the buyer to court and force them to purchase the house. Were the listing agent’s actions: Entailed providing legal advice and would be considered unauthorized practice of law. Entailed providing legal advice and was within the realm of the duties owed under WI Ch. 452. Didn’t constitute legal advice and was within the realm of the duties owed under WI Ch. 452. Didn’t constitute legal advice and wouldn’t be considered unauthorized practice of law. Page 134 of 151 When would a disclosure to client be completed? A buyer who wishes to continue without representation. A buyer customer decides that they want the licensee to sell their existing home. A licensee provides brokerage services. A licensee discloses certain material adverse facts about a property the buyer had made an offer on. Page 135 of 151 A type of listing agreement that allows the seller to locate a buyer on their own and if they do, the seller would not pay any commission to the listing agent is known: Exclusive Agency Agreement Exclusive Right to Sell Agreement Open Listing Net Listing Page 136 of 151 An agent presents a home for sale on 5th Ave with a sign in the yard. The agent does not have an agency agreement with the owner of the home. As potential buyers contact the agent, they inform the potential buyers that another home is available that will fit their needs better. This is known as: Puffing Bait and Switch Advertising Block Busting Usury Page 137 of 151 A month-to-month lease is considered a/an: Periodic Tenancy Estate for Years Life Estate Fee Simple Estate Page 138 of 151 Scenario #2 - Q #1: When does the sellers owe the listing agent a commission?Janet was looking to list her home on July 1st. She wants to get as much money as possible for her home. She agrees to pay the listing agent a 6% commission along with a 3% co-brokerage commission. The list price of the home is $369,900. The seller completed the real estate condition report on June 28th. On the same day as the real estate condition report the seller also signed the Addendum S. The seller reached out to a friend and suggested they buy their home on July 7th. The seller had the friend fill out an offer to purchase and submitted it to the seller and their attorney. The seller accepted the offer from the friend without talking to the listing agent. On July 8th the listing agent goes to the seller’s home, shows them that they received two offers and presented them to the sellers. The seller then tells the listing agent that they had already received and accepted an offer on the 7th. The agent advises the seller that they still need to pay the listing brokerage the full commission for their services. Buyer enters into a written contract to acquire an Interest in Property, at any terms and price acceptable to owner and Buyer, regardless of the purchase price range A buyer is ready, willing and able when the buyer submitting the written offer has the ability to complete the buyer’s obligations under the written offer. A ready, willing and able buyer submits a bona fide written offer to Seller or Firm for the Property at, or above, the list price Both B & C Page 139 of 151 Scenario #2 - Q #2: What type of listing did the seller have with the Listing Brokerage?Janet was looking to list her home on July 1st. She wants to get as much money as possible for her home. She agrees to pay the listing agent a 6% commission along with a 3% co-brokerage commission. The list price of the home is $369,900. The seller completed the real estate condition report on June 28th. On the same day as the real estate condition report the seller also signed the Addendum S. The seller reached out to a friend and suggested they buy their home on July 7th. The seller had the friend fill out an offer to purchase and submitted it to the seller and their attorney. The seller accepted the offer from the friend without talking to the listing agent. On July 8th the listing agent goes to the seller’s home, shows them that they received two offers and presented them to the sellers. The seller then tells the listing agent that they had already received and accepted an offer on the 7th. The agent advises the seller that they still need to pay the listing brokerage the full commission for their services. Exclusive Listing Agreement Net Listing Agreement Open Listing Agreement Exclusive Right to Sell Listing Agreement Page 140 of 151 Scenario #2 - Q #3: What is the total commission owed to the Listing Brokerage per the listing agreement?Janet was looking to list her home on July 1st. She wants to get as much money as possible for her home. She agrees to pay the listing agent a 6% commission along with a 3% co-brokerage commission. The list price of the home is $369,900. The seller completed the real estate condition report on June 28th. On the same day as the real estate condition report the seller also signed the Addendum S. The seller reached out to a friend and suggested they buy their home on July 7th. The seller had the friend fill out an offer to purchase and submitted it to the seller and their attorney. The seller accepted the offer from the friend without talking to the listing agent. On July 8th the listing agent goes to the seller’s home, shows them that they received two offers and presented them to the sellers. The seller then tells the listing agent that they had already received and accepted an offer on the 7th. The agent advises the seller that they still need to pay the listing brokerage the full commission for their services. $22,194.00 $11,097.00 $11,043 $20,987.00 Page 141 of 151 Scenario #2 - Q #4: What year was the home built in?Janet was looking to list her home on July 1st. She wants to get as much money as possible for her home. She agrees to pay the listing agent a 6% commission along with a 3% co-brokerage commission. The list price of the home is $369,900. The seller completed the real estate condition report on June 28th. On the same day as the real estate condition report the seller also signed the Addendum S. The seller reached out to a friend and suggested they buy their home on July 7th. The seller had the friend fill out an offer to purchase and submitted it to the seller and their attorney. The seller accepted the offer from the friend without talking to the listing agent. On July 8th the listing agent goes to the seller’s home, shows them that they received two offers and presented them to the sellers. The seller then tells the listing agent that they had already received and accepted an offer on the 7th. The agent advises the seller that they still need to pay the listing brokerage the full commission for their services. 1985 2012 2020 1976 Page 142 of 151 Scenario #3 - Q #1: If the seller checked Yes to D5, what defect is he reporting?Helen, the buyer, wants to make a purchase of a home located at 1313 Mockingbird Lane. The Addendum S was uploaded to the MLS, but the Real Estate Condition Report (RECR) was not provided. The Selling Agent reached out to the Listing Agent and received it prior to making an offer and the buyer reviewed and signed it. During the showing the stairs creaked loudly as they walked on them, and the buyer stated she wanted to definitely have an inspection completed. Helen submitted the offer for $252,900. The offer was countered by the sellers to bring up the sale price by $4,000 and remove the inspection contingency. Helen then countered the sellers counter coming down to $254,000 and stating that the buyer would not request any repairs based on the inspection report unless those repairs exceeded $10,000. The Sellers accepted the final counter. Septic system/mount system Presence of asbestos Defects in the roof Presence of underground storage tanks Page 143 of 151 Scenario #3 - Q #2: Line 148 of the Addendum S states which of the following?Helen, the buyer, wants to make a purchase of a home located at 1313 Mockingbird Lane. The Addendum S was uploaded to the MLS, but the Real Estate Condition Report (RECR) was not provided. The Selling Agent reached out to the Listing Agent and received it prior to making an offer and the buyer reviewed and signed it. During the showing the stairs creaked loudly as they walked on them, and the buyer stated she wanted to definitely have an inspection completed. Helen submitted the offer for $252,900. The offer was countered by the sellers to bring up the sale price by $4,000 and remove the inspection contingency. Helen then countered the sellers counter coming down to $254,000 and stating that the buyer would not request any repairs based on the inspection report unless those repairs exceeded $10,000. The Sellers accepted the final counter. Lead-Based Paint Inspection Contingency Waives the Lead Based Paint Inspection Contingency Buyer elects to have a lead pipe inspection Lead Paint Notification to the Seller Page 144 of 151 Scenario #3 - Q #3: What duties do you owe to your clients in a transaction:Helen, the buyer, wants to make a purchase of a home located at 1313 Mockingbird Lane. The Addendum S was uploaded to the MLS, but the Real Estate Condition Report (RECR) was not provided. The Selling Agent reached out to the Listing Agent and received it prior to making an offer and the buyer reviewed and signed it. During the showing the stairs creaked loudly as they walked on them, and the buyer stated she wanted to definitely have an inspection completed. Helen submitted the offer for $252,900. The offer was countered by the sellers to bring up the sale price by $4,000 and remove the inspection contingency. Helen then countered the sellers counter coming down to $254,000 and stating that the buyer would not request any repairs based on the inspection report unless those repairs exceeded $10,000. The Sellers accepted the final counter. Fair and Honestly Reasonable Skill and care Present Proposals in an objective and unbiased manner All the above Page 145 of 151 Scenario #3 - Q #4: What how many days does the buyer have to rescind the offer to purchase after receiving the RECR in this situation?Helen, the buyer, wants to make a purchase of a home located at 1313 Mockingbird Lane. The Addendum S was uploaded to the MLS, but the Real Estate Condition Report (RECR) was not provided. The Selling Agent reached out to the Listing Agent and received it prior to making an offer and the buyer reviewed and signed it. During the showing the stairs creaked loudly as they walked on them, and the buyer stated she wanted to definitely have an inspection completed. Helen submitted the offer for $252,900. The offer was countered by the sellers to bring up the sale price by $4,000 and remove the inspection contingency. Helen then countered the sellers counter coming down to $254,000 and stating that the buyer would not request any repairs based on the inspection report unless those repairs exceeded $10,000. The Sellers accepted the final counter. 10 15 5 None, because they received it prior to making the offer Page 146 of 151 Scenario #3 - Q #5: How much will the seller net processed be if their current mortgage of $58,456.87, brokerage fee of $15,240 and other expense of the sale process of $4,908?Helen, the buyer, wants to make a purchase of a home located at 1313 Mockingbird Lane. The Addendum S was uploaded to the MLS, but the Real Estate Condition Report (RECR) was not provided. The Selling Agent reached out to the Listing Agent and received it prior to making an offer and the buyer reviewed and signed it. During the showing the stairs creaked loudly as they walked on them, and the buyer stated she wanted to definitely have an inspection completed. Helen submitted the offer for $252,900. The offer was countered by the sellers to bring up the sale price by $4,000 and remove the inspection contingency. Helen then countered the sellers counter coming down to $254,000 and stating that the buyer would not request any repairs based on the inspection report unless those repairs exceeded $10,000. The Sellers accepted the final counter. $78,604.87 $254,000.00 $175,395.13 $169,678.09 Page 147 of 151 Scenario #7 - Q #1: How much earnest money was due?A buyer submitted an offer to purchase for a property in Twin Lakes that was listed on May 5th and was listed for $264,900.00. The following was included in the WB-11 Offer to Purchase: • Sale price: $264,900.00• Offer Date: May 9th• The offer was accepted 3 days after the date of the offer• Closing Date: June 30th• Earnest Money was due within 5 Business days after acceptance • Real Estate Condition Report was dated 3 days before it was listed• Buyer wanted to provide 1% of the sale price for the earnest money• Inspection Contingency was due 15 days after acceptance• Appraisal Contingency was due on June 3rd • Email was an option for delivery• Addendum B was submitted $2,469.50 $2,589.90 $3,178.80 $2,649.00 Page 148 of 151 Scenario #7 - Q #2: What date was the offer accepted on?A buyer submitted an offer to purchase for a property in Twin Lakes that was listed on May 5th and was listed for $264,900.00. The following was included in the WB-11 Offer to Purchase: • Sale price: $264,900.00• Offer Date: May 9th• The offer was accepted 3 days after the date of the offer• Closing Date: June 30th• Earnest Money was due within 5 Business days after acceptance • Real Estate Condition Report was dated 3 days before it was listed• Buyer wanted to provide 1% of the sale price for the earnest money• Inspection Contingency was due 15 days after acceptance• Appraisal Contingency was due on June 3rd • Email was an option for delivery• Addendum B was submitted May 12th May 11th May 9th May 13th Page 149 of 151 Scenario #7 - Q #3: How many days was listed for the Appraisal Contingency?A buyer submitted an offer to purchase for a property in Twin Lakes that was listed on May 5th and was listed for $264,900.00. The following was included in the WB-11 Offer to Purchase: • Sale price: $264,900.00• Offer Date: May 9th• The offer was accepted 3 days after the date of the offer• Closing Date: June 30th• Earnest Money was due within 5 Business days after acceptance • Real Estate Condition Report was dated 3 days before it was listed• Buyer wanted to provide 1% of the sale price for the earnest money• Inspection Contingency was due 15 days after acceptance• Appraisal Contingency was due on June 3rd • Email was an option for delivery• Addendum B was submitted 23 25 26 29 Page 150 of 151 Scenario #7 - Q #4: Addendum B covers which of the following?A buyer submitted an offer to purchase for a property in Twin Lakes that was listed on May 5th and was listed for $264,900.00. The following was included in the WB-11 Offer to Purchase: • Sale price: $264,900.00• Offer Date: May 9th• The offer was accepted 3 days after the date of the offer• Closing Date: June 30th• Earnest Money was due within 5 Business days after acceptance • Real Estate Condition Report was dated 3 days before it was listed• Buyer wanted to provide 1% of the sale price for the earnest money• Inspection Contingency was due 15 days after acceptance• Appraisal Contingency was due on June 3rd • Email was an option for delivery• Addendum B was submitted Home Warranty Seller Contributions Shared Driveways Radon Page 151 of 151 Scenario #7 - Q #5: Which Lines were checked in the offer?A buyer submitted an offer to purchase for a property in Twin Lakes that was listed on May 5th and was listed for $264,900.00. The following was included in the WB-11 Offer to Purchase: • Sale price: $264,900.00• Offer Date: May 9th• The offer was accepted 3 days after the date of the offer• Closing Date: June 30th• Earnest Money was due within 5 Business days after acceptance • Real Estate Condition Report was dated 3 days before it was listed• Buyer wanted to provide 1% of the sale price for the earnest money• Inspection Contingency was due 15 days after acceptance• Appraisal Contingency was due on June 3rd • Email was an option for delivery• Addendum B was submitted 573 568 308 All the above View ResultsPlease provide your contact information to proceed.Email Address *First NameLast NameConsent *Yes, I agree to not share any information, questions or answers from this Final Exam with any current or future students of SENSIBL Real Estate Academy. I also agree with the privacy policy and terms and conditions.Start Quiz
