Re ch2 review

Which style of house is referred to by critics as McMansions?
Victorian
Neo-Eclectic
Modern
Renaissance Revival

A lease is not terminated as a result of
alterations.
property destruction.
property condemnation.
foreclosure.

A broker who is not an agent for either party but instead acts as a neutral party between both sides is called
a neutral broker.
a dual broker.
a transaction broker.
a limited broker.

When must a broker provide a detailed summary of an escrow account to an authorized representative of the Indiana Real Estate Commission if requested?
Never, the account details are confidential to the parties involved in the real estate transaction.
For investigative purposes
Within 10 business days of the request
Within 5 business days of the request

Which of the following must be included in a real estate listing agreement?
How much below listing price the owner is willing to accept for the property
Whether or not an unlicensed associate will assist with the property sale
The amount of commission to be paid
Duties of the potential buyer

Which style of house was conceived by architect Frank Lloyd Wright because he believed homes should have low horizontal lines and open interior spaces?
Ranch
Cape Cod
Prairie
Modern

Which of the following statements is TRUE regarding provisions that govern the actions of a dual agent?
The broker must not knowingly say anything that would place one party at a disadvantage.
The broker may disclose one party's confidential information to the other party since the agent is representing both parties.
The broker must disclose to the buyer that the owner might accept a lower price than the listing price.
The broker must disclose to the owner that the buyer may be willing to accept terms less favorable to the buyer than those indicated in the buyer's written offer.

The commission investigates complaints against
real estate licensees.
commission members.
the executive director.
the general public.

A person who performs the acts of a real estate broker without a broker's license commits
an injunction violation
an act of incompetent practice
Class A infraction
Class E infraction

_________ is a measurement of how much is invested in the property for tax purposes.
Taxable investment
Taxable expenditure
Capital loss
Basis

Which of the following is a requirement for obtaining a real estate license in Indiana?
Must be 21 years old
Must have completed 90 hours of real estate law coursework
Must have taken and scored at least 70% on the real estate examination
Must be free of criminal convictions

Tom sold his home to Joe and is closing on May 17. The insurance for the property is $1,950. What is Joe's share of the insurance?
$162.50
$1,207.86
$742.14
$650

The entity that performs administrative duties for the Indiana Real Estate Commission is
the Attorney General's office staff.
the Professional Licensing Agency.
the Commission's secretary.
the Executive Director of the Commission.

What federal law regulates housing construction?
The Property Standards Code
Interstate Land Sale Standards
National Electric Code
Federal Plumbing Code

Regarding a contaminated site, CERCLA does not hold __________ liable for the contamination and its cleanup.
current owners and operators of the site
past owners or operators of the site if contamination occurred during their ownership
future owners of the site
transporters who disposed of hazardous substances on the site

Which real estate offices are required to be supervised and managed by one individual broker?
Only those operated as a partnership
Only sole proprietorship offices
Only those operated as a corporation
Every real estate office

A broker representing the seller or landlord in an agency relationship
must tell a prospective buyer why the seller is selling the property.
has equal responsibility to any buyer or tenant as the broker does to the seller or landlord.
to help sell or lease the property, must tell the buyer or tenant the seller or landlord will take less than the asking price for the property.
must tell the buyer or tenant any adverse facts the broker knows about the property's physical condition.

In an agency relationship, which of the following is prohibited?
A licensed broker refusing to cooperate with a subagent in a real estate transaction
A licensed broker compensating another broker who is not acting on behalf of a client
A licensed broker cooperating with another broker who is not acting on behalf of a client
A licensed broker agreeing to compensate a subagent in the real estate transaction

Indiana specifically requires certain documents at closing. Which of the following is one of those specific documents?
Lead-based paint disclosure
Title insurance policy
Flood zone statement
Property inspection report

___________ usually indicates who will provide an owner's title insurance policy for the buyers.
The lender
The title company
The purchase and sale agreement
The broker

In a standard exterior inspection, the inspector would not inspect the
sprinkler system.
foundation.
garage.
grading.

Under what system are tracts of land subdivided into lots?
Brick and Block
Recorded Plat
Metes and Bounds
Rectangular Survey

Which of the following statements is FALSE regarding property disclosure forms?
Property disclosure forms can assign rights and responsibilities among the parties involved in real estate transactions.
Property disclosure forms can put the buyer "on notice" regarding certain issues or problems.
Property disclosure forms should be presented early in the transaction.
Property disclosure forms serve as a substitute for agent-initiated information disclosure.

To whom must the owner of a psychologically affected property disclose that fact?
The potential buyer
The owner's real estate broker
No one
All involved parties

What is one requirement of a broker in an agency relationship?
To represent both the seller and the buyer
To immediately present all offers to purchase to the seller
To seek additional offers to purchase even after an offer has been accepted by the seller in case that offer is withdrawn
To advise the client on all issues so there is never a need for advice from someone else

What is an REIT?
A security that sells like a stock on the major exchanges and invests in real estate directly either through properties or mortgages.
A stock that sells on the major exchanges and invests in real estate indirectly.
A security that sells like a stock on the major exchanges and invests in real estate indirectly either through properties or mortgages.
A security that sells differently than a stock on the major exchanges and invests in real estate directly.

A real estate license is required for which of the following?
A licensed auctioneer selling real estate at public auction
A real estate broker listing a property for sale
As associate answering questions regarding the price and location of real estate
An attorney practicing law

RESPA does NOT apply to
one-to-four family residential homes.
first mortgages.
VA loans.
land contracts.

The most important document at closing is the
deed.
lien waivers.
mortgage documents.
title search report.

What is the purpose of FIRPTA?
To assure all closing costs are disclosed 3 days prior to closing
To require all closing agents to be licensed
To eliminate the problem of collecting delinquent taxes from foreigners
To require the lead-based paint disclosure to be provided to the buyer at closing

What was the purpose of establishing the FAIR Plan in regard to property insurance?
To make property insurance available to all applicants at a reasonable and fair cost.
To regulate the property insurance industry so the offered coverages are equal across companies.
To make property insurance available to applicants who have not been able to secure such insurance through the normal insurance market.
To make property insurance available to applicants who have not been able to afford insurance through the normal insurance market.

_________ would exceed standard inspections and would typically be considered an additional inspection service.
Basement inspection
Septic tank inspection
Roof inspection
Foundation inspection

Any home can earn the ENERGY STAR® label if it has been verified to meet EPA’s guidelines and
is LEED® certified.
does not have a basement.
is three stories or less.
made of concrete.

If the amount in the Indiana Real Estate Investigative fund exceeds $650,000 at the end of the fiscal year, what happens to the excess funds?
There are no excess funds at that dollar amount.
The excess funds go to the Attorney General's office for additional investigations.
The excess funds to into the state general fund.
The excess funds are invested to increase the funds available for investigations.

Which of the following statements is TRUE regarding RESPA/TRID requirements?
RESPA applies to loans secured by mortgaged property larger than 25 acres.
RESPA allows kickbacks for referring customers to insurance agencies.
Lenders must provide a copy of the booklet, "Real Estate Settlement Costs and You," to every person at closing.
Lenders must provide a Loan Estimate of settlement costs within 3 business days of loan application

The principal purpose of ___________ is to obtain site clean-up by government contract or orders to responsible parties (often referred to as "RPs"), until one or more of the RPs can be found to reimburse the government for their handling of the matter and for damages to natural resources.
The EPA
CERCLA
HUD
the US Consumer Product Safety Commission