Mixed Deck — All Real Estate Sales Exam Topics Flashcards

Under the Fair Housing Act, a landlord may lawfully ask a disabled tenant to:

Answer: Restore the unit to its original condition at move-out if reasonable modifications were made at the tenant's expense

Landlords can require tenants who make modifications to restore the unit to its original condition at move-out, but cannot charge extra deposits for service animals.

Which type of real estate contract binds only one party to perform while the other party has the choice?

Answer: Unilateral contract

A unilateral contract obligates only one party to perform; the other party has the option but not the obligation to act.

An agent is representing a buyer and learns through public records that the property being purchased was previously used as a methamphetamine lab. The seller has not disclosed this. What is the agent's obligation?

Answer: Disclose the material fact to the buyer immediately

A buyer's agent owes the duty of disclosure to the buyer, which includes all known material facts that could affect the buyer's decision. A prior methamphetamine lab is a significant material fact requiring immediate disclosure.

Under the Americans with Disabilities Act (ADA), which type of property is most directly required to provide accessible public accommodations?

Answer: Commercial properties open to the public

The ADA requires places of public accommodation — including commercial real estate open to customers — to be accessible.

A tenant who uses a wheelchair requests that a no-pets policy be waived for their trained service dog. The landlord must:

Answer: Allow the service dog as a reasonable accommodation

Fair housing law requires landlords to grant reasonable accommodations for assistance animals used by persons with disabilities.

Under the Fair Housing Act, which of the following actions by a landlord would constitute illegal discrimination?

Answer: Refusing to rent to a tenant with children under 18 in a non-exempt property

The Fair Housing Act prohibits discrimination based on familial status, which includes refusing to rent to families with children under 18, unless the property qualifies as housing for older persons.

Using the cost approach, a building has a replacement cost of $310,000, accumulated depreciation of $55,000, and the land is valued at $90,000. What is the indicated property value?

Answer: $345,000

Cost Approach Value = (Replacement Cost − Depreciation) + Land Value = ($310,000 − $55,000) + $90,000 = $345,000. Land is never depreciated in this approach.

What does the debt-to-income (DTI) ratio measure in mortgage qualification?

Answer: The borrower's monthly debt obligations compared to gross monthly income

The DTI ratio compares a borrower's total monthly debt payments to their gross monthly income to assess repayment ability.

A homeowner association requires all houses to have approved exterior paint colors. This authority comes from which source?

Answer: CC&Rs recorded against the subdivision

Covenants, Conditions, and Restrictions (CC&Rs) are recorded documents that give HOAs authority to enforce aesthetic and use standards.

An agent who only shows minority buyers homes in certain neighborhoods and white buyers homes in other neighborhoods is engaging in:

Answer: Steering

Steering is the illegal practice of directing buyers toward or away from neighborhoods based on protected characteristics.

A buyer wants to purchase a home with no down payment. Which loan program is most likely to accommodate this?

Answer: VA loan

VA loans are available to eligible veterans and active-duty military and require no down payment.

A property with a legal nonconforming use may continue operating because:

Answer: The use existed before the current zoning ordinance was enacted

A grandfathered nonconforming use is one that lawfully existed prior to the adoption of a zoning ordinance that would otherwise prohibit it.

An owner wants to sell but refuses to list with a broker who brings an offer. Under an open listing, the owner owes a commission only if:

Answer: The broker is the procuring cause of the sale

Under an open listing, commission is owed only to the broker who is the procuring cause—the one whose efforts directly led to the sale.

A prospective buyer asks their agent to only show them homes in neighborhoods where the residents are predominantly of a specific national origin. By agreeing to this request, the agent would be engaging in the illegal practice of:

Answer: Steering

Steering is the illegal practice of guiding or directing homebuyers towards or away from certain neighborhoods based on their race, national origin, or another protected characteristic. Blockbusting (or panic peddling) involves inducing homeowners to sell by suggesting that the entry of a protected class will lower property values. Redlining is the discriminatory practice by lenders of refusing to make loans in specific geographic areas.

Which type of listing agreement gives the broker the exclusive right to sell AND earn a commission regardless of who finds the buyer?

Answer: Exclusive right-to-sell listing

An exclusive right-to-sell listing guarantees the broker a commission even if the seller finds the buyer independently.

A buyer's agent is also the listing agent for a property the buyer wants to purchase. The agent does not inform either party of this dual role. What has the agent violated?

Answer: The duty of disclosure

An agent acting as a dual agent must disclose this role to both parties and obtain informed consent. Failure to disclose the dual agency violates the fiduciary duty of disclosure.

Under the TILA-RESPA Integrated Disclosure (TRID) rules, how many business days before closing must the borrower receive the Closing Disclosure?

Answer: 3 business days

TRID requires the Closing Disclosure to be delivered to the borrower at least 3 business days before consummation of the loan.

A lender charges 2 discount points on a $300,000 loan. How much will the borrower pay in points?

Answer: $6,000

Each discount point equals 1% of the loan amount, so 2 points on $300,000 = $6,000.

A seller receives two simultaneous offers. What is the agent's ethical obligation?

Answer: Present both offers to the seller and let the seller decide

The agent must present all offers to the seller, who then decides how to respond to each; disclosing one buyer's offer details to another violates confidentiality.

Two siblings inherit a property and hold equal, undivided shares. If one sibling dies, their share passes to their own heirs rather than the surviving sibling. What form of co-ownership does this describe?

Answer: Tenancy in common

Tenancy in common allows each co-owner to hold an undivided interest that passes to their heirs upon death, with no right of survivorship. This distinguishes it from joint tenancy, where the surviving owner automatically inherits the deceased owner's share.