Practice Test Geeks(MRP) MRP Certified Agents Practice Test
← All MRP Flashcard Decks

Real Estate Law & Regulations Flashcards

7 cards from real MRP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Real Estate Law & Regulations flashcards as text

  1. Under the Servicemembers Civil Relief Act (SCRA), what is the maximum interest rate that can be charged on pre-service mortgage obligations for active-duty military members?

    Answer: 6%

    The SCRA caps interest rates at 6% per year on financial obligations incurred before active-duty service.

  2. Which federal law requires lenders to disclose the Annual Percentage Rate (APR) and other loan terms to borrowers before closing?

    Answer: TILA (Truth in Lending Act)

    The Truth in Lending Act (TILA) mandates clear disclosure of APR and loan terms so borrowers can compare credit offers.

  3. A military buyer uses a VA loan to purchase a home. The seller's agent insists the buyer must pay for a termite inspection. Is this permitted?

    Answer: No, VA guidelines prohibit the buyer from paying for termite inspections in most states

    VA guidelines in most states classify termite inspections as a non-allowable fee that the buyer cannot pay; the seller or lender typically covers it.

  4. What does the term 'equitable title' mean in a real estate transaction?

    Answer: The buyer's interest in property after signing a purchase contract but before closing

    Equitable title is the beneficial interest a buyer holds once under contract, giving them the right to obtain legal title upon fulfilling contract terms.

  5. A PCS-relocated service member sells a home after only 18 months of residence. Under the IRS military exception, what is the maximum capital gains exclusion available?

    Answer: $250,000 for single filers / $500,000 for married filers

    Military members can claim the full $250,000/$500,000 capital gains exclusion even if they have not met the standard 2-year residency requirement due to PCS orders.

  6. Which type of deed provides the LEAST protection to the buyer because the grantor makes no warranties about the title?

    Answer: Quitclaim deed

    A quitclaim deed conveys only whatever interest the grantor currently holds, with no warranties of title whatsoever.

  7. Under RESPA, a lender's Good Faith Estimate (now Loan Estimate under TRID) must be provided to the borrower within how many business days of receiving a loan application?

    Answer: 3 business days

    Under TRID rules, lenders must deliver the Loan Estimate within three business days of receiving a completed loan application.