AREC Final exam Study Set Questions and Answers Updated 2024

AREC Final exam Study Set Questions and Answers Updated 2024 When preparing the sales contract, when is it acceptable for a licensee who is not an attorney to offer legal advice to the client? - Answer-Never A set of guidelines for the ethical conduct of real estate licensees is called a - Answer-Code of ethics Which of the following is the best definition of a covenant between a lessor and lessee? - Answer-An agreement or promise made between the parties Which party's closing costs might include mortgage insurance? - Answer-Buyer The Real Estate Settlement Procedures Act is a consumer protection statute that - Answer- Requires lenders to provide the consumer with certain disclosures for residential real estate transactions and prohibits kickbacks among settlement service providers Licensee Kyle has had a few casual meetings with a potential client, Mary. Mary told Kyle the type of home and area she's interested in, and Kyle mentioned a few homes he thinks Mary might be interested in. Although Kyle hasn't said he will continue to look for homes for Mary, GRACEAMELIA 2024/2025 ACADEMIC YEAR ©2024. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER, 2024 Page 2/15 Mary believes he'll do just that. Which of the following statements about this situation is correct? - Answer-Kyle's actions may have created an implied agency agreement with Mary. Which of the following is designed to protect buyers from financial loss if the title to the property they buy has defects? - Answer-Title insurance The Knolls are purchasing a property and are concerned about the title, so they want to have a title search performed. Who can perform a title search? - Answer-A title insurance company Jim is acting as a limited services representative to Sheree, who has decided to waive his duty to negotiate on her behalf. Jim must provide Sheree with ______. - Answer-A waiver of duties statement Which term refers to the ordinances/regulations that protect the community and control property development within subdivisions? - Answer-Subdivision regulations Which of the following statements describes laws and ethics? - Answer-Laws are made by the government, and ethics are dependent on conscience and values. If you were a member of a local planning board, your responsibilities could include________. - Answer-Determining zones within the municipality While reviewing her purchase contract, Jeanette's client asked, "What does this inspection contingency do?" How should Jeanette frame her response? - Answer-"The inspection GRACEAMELIA 2024/2025 ACADEMIC YEAR ©2024. ALL RIGHTS RESERVED. FIRST PUBLISH OCTOBER, 2024 Page 3/15 contingency is designed to protect you in case the home inspector finds something wrong with the property that can't be fixed or that makes you uncomfortable." You just helped Marcy find her dream home—a condominium that will be her full-time residence. She loves that it's in a self-contained community with leisure activities, shops, restaurants, and security. This type of development is sometimes called a planned unit development (PUD). Which type of multi-family housing is Marcy buying? - Answer-Master- planned community Jamal is a real estate licensee. What's his responsibility regarding household lead hazards? - Answer-He must remind the sellers to disclose the possible presence of lead-based paint to a buyer if the home was built prior to 1978. When is a title search conducted? - Answer-Before a property is sold in order to determine if there are any defects on the title What do buyers provide to the seller as an indication that they are serious and intend to go through with the purchase? - Answer-Earnest money ______ is applied whenever real property is sold, and the tax rate varies by state. - Answer- Transfer tax After thinking about it for a few days, Cooper decided that he shouldn't have bought that time- share after all. He contacts the time-share developer by mail and states his wish to cancel his purchase contract. Which of the following is true about what