Mixed Deck — All SRS Topics Flashcards

Which tool most helps a seller's agent avoid missed contingency deadlines?

Answer: A transaction timeline or checklist with all contract dates

A dated checklist tracks every contract milestone so nothing slips.

Who is legally responsible for FIRPTA withholding when the seller is a foreign person?

Answer: The buyer (transferee)

The transferee (buyer) is the withholding agent under FIRPTA, though the closing agent usually handles it.

The seller wants to stay in the home for two weeks after closing. Which document best protects the seller and buyer?

Answer: A post-closing occupancy (rent-back) agreement

A written rent-back agreement sets terms such as rent, deposit, liability, and move-out date.

What is the main limitation of an automated valuation model (AVM) like an online home-value estimate?

Answer: It cannot account for interior condition and upgrades

AVMs rely on public data and algorithms, so they miss condition, renovations, and unique features seen only in person.

What does the 'right of first refusal' mean in property transactions?

Answer: The right to purchase before others.

The 'right of first refusal' is a contractual right that gives a party the option to purchase a property before the owner can sell it to a third party. This means the holder of the right must be offered the property for sale and given the chance to buy it first. It provides a preferential opportunity to acquire the property under specified terms.

What is the cost approach in property valuation?

Answer: Estimate the cost to replace or reproduce the property.

The cost approach to property valuation estimates the value of a property by calculating the cost to replace or reproduce the existing structure, minus any depreciation, plus the value of the land. This method is particularly useful for new construction or properties with unique features where comparable sales are scarce. It essentially asks what it would cost to build an identical property today.

Which valuation approach do appraisers typically weigh most heavily for an owner-occupied single-family home?

Answer: Sales comparison approach

Single-family homes are valued mainly by what similar homes have sold for, the sales comparison approach.

There are 120 active listings and 40 homes sold per month. What is the months' supply of inventory?

Answer: 3 months

Divide active inventory by monthly sales: 120 ÷ 40 = 3 months.

What continuing education supports competence in negotiation techniques?

Answer: Ongoing education in legal updates, market trends, technology, and best practices

Ongoing professional development ensures competence as laws, markets, technology, and best practices continuously evolve.

When reviewing an offer with an escalation clause, what should the seller's agent confirm first?

Answer: The maximum cap and how proof of the competing offer must be provided

The cap and the proof-of-competing-offer requirement decide how much the clause is actually worth.

A seller insists on pricing their home 20% above market value. The best response from an SRS-designated agent is to:

Answer: Present data-driven CMA evidence and educate the seller on market realities

SRS professionals are trained to use objective market data to counsel sellers, helping them understand how overpricing leads to longer market time and lower eventual sale prices.

Why might a seller's agent recommend pricing slightly below a round number, such as $499,000 instead of $505,000?

Answer: To capture buyers searching with a $500,000 price cap

Pricing just under a search threshold exposes the listing to more online buyers.

What fiduciary duty is most important in market analysis?

Answer: Acting in the client's best interest with loyalty, disclosure, confidentiality, and accountability

Real estate fiduciary duties require putting the client's interests first through loyalty, full disclosure, confidentiality, and accountability.

A condo listing requires HOA resale documents. When should the seller's agent request them?

Answer: As soon as the property is under contract or earlier

HOA documents can take days or weeks and often trigger buyer review periods, so ordering them early prevents delays.

The buyer's financing contingency deadline passes without the buyer giving notice. In many contracts, what is the likely effect?

Answer: The contingency may be deemed waived or satisfied, depending on contract terms

Many forms treat silence past a contingency deadline as waiver, but the specific contract language controls.

A buyer's lender changes the loan product from fixed to adjustable after the Closing Disclosure is issued. What happens to the closing timeline?

Answer: A new three-business-day waiting period is triggered

A loan product change is one of the triggers that requires a new three-business-day waiting period under TRID.

When a seller's unrealistic pricing expectation is driven by emotional attachment to the home, the recommended SRS approach is to:

Answer: Acknowledge their feelings, then redirect to market data and buyer perspective

Effective seller counseling validates the seller's emotional connection while guiding them with objective data to reach a realistic, market-supported price.

Which of the following is an example of a transaction governed by property law?

Answer: Buying a house.

Buying a house is a prime example of a transaction governed by property law. This process involves the legal transfer of ownership from a seller to a buyer, including deeds, titles, mortgages, and other contractual agreements. Property law ensures that these complex transactions are legally sound and that ownership rights are clearly established and protected.

Which method is commonly used for property valuation?

Answer: Sales comparison approach.

The sales comparison approach is widely considered the most reliable method for valuing residential properties. It involves comparing the subject property to similar properties that have recently sold in the same market. Adjustments are then made for differences in features, condition, and location to arrive at an estimated value for the subject property.

What is the significance of the closing process in a real estate transaction?

Answer: It is when the property ownership is officially transferred.

The closing process is the final stage of a real estate transaction where all parties sign the necessary documents, funds are disbursed, and legal ownership of the property is officially transferred from the seller to the buyer. This critical step finalizes the sale and makes the buyer the legal owner. It involves reviewing and signing the deed, mortgage documents, and other closing statements.