FINAL EXAM (Bob Brooks) 2024 Actual Questions and Correct Answers Solved 100%.

FINAL EXAM (Bob Brooks) 2024 Actual Questions and Correct Answers Solved 100%. When must earnest money and/or deposits accepted by the broker be put into the escrow account? a. Earnest money does not have to be put into an escrow account. b. By the close of business of the next banking day c. Within 24 hours d. Within 48 hours b. By the close of business of the next banking day In order to record a deed, it MUST be in writing and: a. signed by grantee b. recite the actual purchase price c. acknowledged d. be free of all liens c. acknowledged An exclusive agency listing: a. Allows the owner to sell through his own efforts without obligation to pay a commission b. Need not contain a definite termination date c. Means the seller pays the agency regardless of who sells the property d. None of the above a. Allows the owner to sell through his own efforts without obligation to pay a commission A lease that requires a lessor to pay operating expenses of the property is called: a. Gross lease b. Net lease Incorrect c. Graduated lease d. Participation lease a. Gross lease The idea that a property's value is safer when surrounded by similar properties is the principle of: a. Substitution b. Progression c. Regression d. Conformity d. Conformity An abstract of title shows: a. Devises b. Foreclosures c. Liens d. All of the above. d. All of the above. The chain of title is broken between a previous owner and the present owner. To convey the title, the following will probably be required: a. title inspection b. quiet title suit c. contrct for deed d. bill of sale b. quiet title suit A real estate agent may give an opinion as to the sales price of real estate for the purpose of a prospective listing or sale, as long as: a. It is not referred to as an appraisal. b. The seller promises to list their property for no less than the price opinion. c. The seller promises to accept no less than the price opinion, regardless of the appraisal price. d. The price opinion is equal to the appraisal price. a. It is not referred to as an appraisal. A closing which is handled by one agent being responsible for collecting all signatures, money and documents WOULD be called: a. Act of sale closing. b. Escrow closing. c. Settlement meeting. d. Consideration. b. Escrow closing. RESPA was enacted in 1974 for the following purpose: a. To assure proper disclosure is always given to the buyer concerning interest rate on a new note. b. To effect specific changes in the settlement process resulting in more effective advance disclosure of settlement costs to home buyer and sellers. c. To assure full disclosure is always made in regard to financing on FHA and VA loans. d. To allow lending institutions to charge discount points and have all this fully disclosed at the time of closing of the sale. b. To effect specific changes in the settlement process resulting in more effective advance disclosure of settlement costs to home buyer and sellers. A principal would be which of the following? a. Either the seller or the buyer b. Either the broker or the agent c. The MREC d. Either agents or clients a. Either the seller or the buyer Concerning fiduciary responsibilities, the following statement, "The agent MUST put the interest of the principal above the interest of the agent or any third party", refers to: a. Confidentiality b. Obedience c. Loyalty d. Full accounting c. Loyalty The borrower has the right to redeem the property after it has been sold to another at the sheriff's sale. This is called the: a. Redemption period. b. Equitable Redemption. c. Statutory Redemption. d. Equity Redemption. c. Statutory Redemption. Substitution of a new contract for a former one is called: a. Fiduciary replacement b. Novation c. Compensatory substitution d. Satisfaction of contract. b. Novation A licensee applying for a Mississippi non-resident license must have an active license in their home state and the home state must have: a. A business relationship with the MREC b. The exact same licensing requirements c. A reciprocal agreement d. At least one other broker from that state licensed in Mississippi c. A reciprocal agreement The borrower of money or the person who gave the mortgage to the lender is: a. Mortgagor b. Mortgagee c. Borrower d. Borrowee a. Mortgagor The party who receives an offer to purchase is the: a. Offeree b. Offeror c. Buyer d. Agent a. Offeree In a U.S. Government survey the following are used as a legal description EXCEPT: a. Townships b. Meridians c. Sections d. Lot and Block Numbers d. Lot and Block Numbers The relationship between the principal and the broker is covered by the: a. Law of Agency b. Fiduciary agreement c. Statute of Accountability d. Statute of Frauds a. Law of Agency The Governor has the authority to appoint Commissioners to serve on the Mississippi Real Estate Commission. True False True When an agent makes non-factual statements about the property that could reasonably be recognized as exaggeration, it is known as: a. Imputed disclosure b. Puffing c. Misrepresentation d. None of the above b. Puffing Which of the following is shown on an estoppel certificate? a. Unpaid balance and interest rate on mortgage. b. Time of foreclosure c. Novation of the seller. d. Any defects in the title. a. Unpaid balance and interest rate on mortgage. The highway department has just finished improving the culverts in a residential subdivision. This WILL most likely be paid for through a: a. Bond issue b. Federal funds c. Special assessment d. General Tax c. Special assessment The lender of mortgage money is the: a. Mortgagor b. Vendee c. Trustee d. Mortgagee d. Mortgagee Discount points on FHA loans are a form of: a. Discount to the seller. b. Insurance coverage c. Prepaid interest d. Reserve for insurance and property tax payments. c. Prepaid interest The relationship of the value of property to its monthly rental income determines the: a. Capitalization rate b. Recovery rate c. Recapture rate d. Monthly gross rental multiplier. d. Monthly gross rental multiplier. Real estate commissioners in Mississippi are: a. Elected from each congressional district b. Appointed by the Secretary of State c. Elected from each Parish on a rotating basis d. Appointed by the Governor d. Appointed by the Governor Metes and Bounds refer to: a. Measurement by angles and distances from a specific point. b. Lines running north and south. c. Area 24 miles square. d. Emblements a. Measurement by angles and distances from a specific point. A probate court: a. Settles disputes between co-owners of real property. b. Passes title of estates to the proper heirs. c. Determines the length of time required to claim title under adverse possession. d. Rules on warranty claims. b. Passes title of estates to the proper heirs. The first step in the appraisal process is: