Champions-Law of Contracts Course Exam NEWEST ACTUAL
EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
The SAFE Act mandated the term ________. - CORRECT ANSWER
Residential Mortgage Loan Originator
The ________ ensures that all consumers are given an equal chance to
obtain credit; passed 1974 - CORRECT ANSWER Equal Credit
Opportunity Act (ECOA)
__________________ is the evidence an individual has of his or her right to
possess land. It is most often transferred
from one owner to another by deed. - CORRECT ANSWER Title
Real property conveyed by will is called a ________. - CORRECT
ANSWER Device
,Personal property that is inherited is called a: - CORRECT
ANSWER Bequest
___________ is a legacy - CORRECT ANSWER Money
One who received property through a will is called a: - CORRECT
ANSWER Beneficiary
The formal judicial proceeding to prove the validity of a will and to
distribute the assets of a decedent's estate is called: - CORRECT
ANSWER Probate
A ________ is a deed with no guarantees or warranties. - CORRECT
ANSWER Quitclaim deed
A complete history of the title of a piece of property that includes
deeds, easements, liens, foreclosures, wills, marriages, deaths, life
estates, fee simple estates, and anything else that may have ever
been recorded about a property is called: - CORRECT ANSWER
Abstract of Title
__________________ is not required on a contract but it will be indicated
on a deed. - CORRECT ANSWER Martial status
Ongoing expenses such as property taxes and property owner
association fees that are divided between the buyer and the seller at
closing are called __________. - CORRECT ANSWER Prorations
When calculating prorations: - CORRECT ANSWER Use a 365-
day year; debits and credits are determined by who is paying and who
is receiving
,RESPA prohibits ________, which is considered an abusive practice. -
CORRECT ANSWER Kickbacks
If taxes for the current year vary from the amount _________________ at
closing, the parties shall adjust the _________________ when tax
statements for the current year are available. - CORRECT
ANSWER Prorated, adjust the prorations
A loan assumption might be desirable because: - CORRECT
ANSWER The loan assumption is generally less expensive than a
new loan
The real estate broker's commission is the difference between the
minimum net established by the seller and the price that the buyer is
willing to pay: - CORRECT ANSWER Net listing
Elmer Fleckenfleck, an agent with After Hours Realty, was preparing a
contract. The seller told Elmer that he wanted to stay in the property
for at least a week after closing. Elmer said that would be no problem
and entered the following text to Paragraph 11: "Seller and Buyer
agree that Seller will remain in the Property for 7 days after closing
and funding." In this case, Elmer has:
(a) Properly represented the interests of both parties
(b) Completed the contract according to established regulations and
procedures
(c) Engaged in the unlawful practice of law
(d) Violated numerous provisions of RESPA - CORRECT ANSWER
(c) Engaged in the unlawful practice of law
Joe is an agent at Tried and True Realty. He gets a $150,000 offer on a
property that is listed for $199,500. In a recent phone conversation,
, the seller told Joe he would accept no less than $185,000 for the
property. Knowing the seller's "bottom line," what should Joe do with
the offer?
(a) Joe should notify the buyer that he will not present the offer
because it is too low
(b) Joe should hold on to the offer for several days just to see if a
better one comes in
(c) Joe should call the buyer and insist that a more satisfactory offer
be presented
(d) Joe should present the offer to the seller - CORRECT
ANSWER (d) Joe should present the offer to the seller
Prior to closing, severe damage to or destruction of a property under
contract: - CORRECT ANSWER Can result in termination of the
contract
FHA loans include two mortgage insurance premiums that must be
paid by the borrower. They are the:
(a) UFMIP and Annual Premium
(b) UFMIP and PMI
(c) Escrow fee and down payment
(d) Hazard insurance and UFMIP - CORRECT ANSWER (a)
UFMIP and Annual Premium
For tax prorations: - CORRECT ANSWER If taxes are not paid
at or prior to closing the buyer shall pay for the current year, If taxes
for the current year vary from the amount prorated at closing, the
parties shall adjust the prorations when tax statements for the current
EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY GRADED A+
The SAFE Act mandated the term ________. - CORRECT ANSWER
Residential Mortgage Loan Originator
The ________ ensures that all consumers are given an equal chance to
obtain credit; passed 1974 - CORRECT ANSWER Equal Credit
Opportunity Act (ECOA)
__________________ is the evidence an individual has of his or her right to
possess land. It is most often transferred
from one owner to another by deed. - CORRECT ANSWER Title
Real property conveyed by will is called a ________. - CORRECT
ANSWER Device
,Personal property that is inherited is called a: - CORRECT
ANSWER Bequest
___________ is a legacy - CORRECT ANSWER Money
One who received property through a will is called a: - CORRECT
ANSWER Beneficiary
The formal judicial proceeding to prove the validity of a will and to
distribute the assets of a decedent's estate is called: - CORRECT
ANSWER Probate
A ________ is a deed with no guarantees or warranties. - CORRECT
ANSWER Quitclaim deed
A complete history of the title of a piece of property that includes
deeds, easements, liens, foreclosures, wills, marriages, deaths, life
estates, fee simple estates, and anything else that may have ever
been recorded about a property is called: - CORRECT ANSWER
Abstract of Title
__________________ is not required on a contract but it will be indicated
on a deed. - CORRECT ANSWER Martial status
Ongoing expenses such as property taxes and property owner
association fees that are divided between the buyer and the seller at
closing are called __________. - CORRECT ANSWER Prorations
When calculating prorations: - CORRECT ANSWER Use a 365-
day year; debits and credits are determined by who is paying and who
is receiving
,RESPA prohibits ________, which is considered an abusive practice. -
CORRECT ANSWER Kickbacks
If taxes for the current year vary from the amount _________________ at
closing, the parties shall adjust the _________________ when tax
statements for the current year are available. - CORRECT
ANSWER Prorated, adjust the prorations
A loan assumption might be desirable because: - CORRECT
ANSWER The loan assumption is generally less expensive than a
new loan
The real estate broker's commission is the difference between the
minimum net established by the seller and the price that the buyer is
willing to pay: - CORRECT ANSWER Net listing
Elmer Fleckenfleck, an agent with After Hours Realty, was preparing a
contract. The seller told Elmer that he wanted to stay in the property
for at least a week after closing. Elmer said that would be no problem
and entered the following text to Paragraph 11: "Seller and Buyer
agree that Seller will remain in the Property for 7 days after closing
and funding." In this case, Elmer has:
(a) Properly represented the interests of both parties
(b) Completed the contract according to established regulations and
procedures
(c) Engaged in the unlawful practice of law
(d) Violated numerous provisions of RESPA - CORRECT ANSWER
(c) Engaged in the unlawful practice of law
Joe is an agent at Tried and True Realty. He gets a $150,000 offer on a
property that is listed for $199,500. In a recent phone conversation,
, the seller told Joe he would accept no less than $185,000 for the
property. Knowing the seller's "bottom line," what should Joe do with
the offer?
(a) Joe should notify the buyer that he will not present the offer
because it is too low
(b) Joe should hold on to the offer for several days just to see if a
better one comes in
(c) Joe should call the buyer and insist that a more satisfactory offer
be presented
(d) Joe should present the offer to the seller - CORRECT
ANSWER (d) Joe should present the offer to the seller
Prior to closing, severe damage to or destruction of a property under
contract: - CORRECT ANSWER Can result in termination of the
contract
FHA loans include two mortgage insurance premiums that must be
paid by the borrower. They are the:
(a) UFMIP and Annual Premium
(b) UFMIP and PMI
(c) Escrow fee and down payment
(d) Hazard insurance and UFMIP - CORRECT ANSWER (a)
UFMIP and Annual Premium
For tax prorations: - CORRECT ANSWER If taxes are not paid
at or prior to closing the buyer shall pay for the current year, If taxes
for the current year vary from the amount prorated at closing, the
parties shall adjust the prorations when tax statements for the current
