#2853 A home sold for $750,000 with a profit of 20% at closing. How much did the home cost originally ? Take your time. The solution is below the wildlife photo.   A, $625,000 In this problem you have to remember to add a whole number to the divisor which includes the converted percentage into decimal. The whole number is 1 and the decimal is .20 or .2 which is also the 20% profit. Therefore, we divide the sale price of $725,000 by 1.2 and find that the home originally sold for $625,000. 07/09/2014

#2852 The mortgage company decided to lend the owner of a property an amount of money equal to 66.6666% of the appraised value of the property along with an interest rate of 5% annual interest rate. The first years interest in $20,000. A. What was the property appraised for ? B. How much was the loan ? Take your time. The answer is posted below the wildlife photo. A. $600,000.60 B. $400,000 First, divide 20,000 dollars in interest for the first year by the annual interest rate of 5% or .05 and we get $400,000 for the amount of the loan. Next, divide $400,000 by the percentage of the appraised value of 66.6666% or .666666 and we find that the property was appraised for $600,000.60 . 07/09/2014

#2851 Donna purchased a home seven years ago for $650,000. She signed a listing agreement recently and offered the home for sale through the broker at an increase of 30% over what she originally paid for the home. The house wasn't getting any offers because of poor market conditions and Donna decided to reduce the price by 25%. The property then sold with the reduced price. Donna paid a 5% commssion to the brokerage that listed the home. Did Donna gain or lose money in the sale ? How much did she gain or lose ? Take your time. The solution is posted below the wildlife photo. A. Donna lost money. B. $47,937.50 lost on the sale. Multiply $650,000 times .3 and we have $195,000 or 30% over the original price for a new listing price of $845,000. Multiply .25, the 25% reduction, times the new... 07/09/2014

  #2850 A broker has the right to exercise the decision to control the number of hours an independent contractor would have to work in addition to the work schedule that the independent contractor would be required to comply with. Is this true or false ? A. False The broker would have not have the right to dictate the number of hours the independent contractor has to work, nor their work schedule. He could could control the amount of compensation the independent contractor would receive. 07/09/2014

#2849 When a real estate salesperson is paid in a lump sum by the broker or their employer and that same licensee or salesperson is responsible for paying their own taxes, we refer to this person as an employee. Is this true or false. Remember to take your time. The answer is posted below the wildlife photo. A. False. If the agent / salesperson is responsible for paying their own taxes we refer to them as an independent contractor. 07/09/2014

  #2848 A buyer became a client of a broker and decided that he wanted to purchase a house that the broker has listed with his company. It's not ok for the broker to show the buyer / client the house that he has listed for sale. True or false ? Take your time. The solution is posted below the wildlife photo. A. False It is ok for the broker to show the house to the buyer / client, but both the buyer and the seller have to be made aware of what's going on and agree to allow the broker to represent both of them in writing. 07/09/2014

#2847 When a real estate broker is hired by someone to sell their home the broker has an obligation to comply with the directions of any interested buyer. Is this true of false ? Take your time. The solution is posted below the wioldlife photo. A. Absolutely false. The real estate broker hired by the seller is only required to recognize and comply with all of the lawful instructions of the owner / seller. 07/09/2014

#2846 When we speak of confidentiality we consider it to be part of the fiduciary duty of care from the five common-law  fiduciary duties of care, obedience, accounting, loyalty and disclosure. True or false ? Please take your time. The solution is posted below the wildlife photo. A. False Confidentiality is a characteristic of the fiduciary duty of loyalty. 07/09/2014

                #2845 The owner decides to abandon the property he has listed with a brokerage. This will terminate the relationship that the broker has with the owner. True or false ? Take your time. The solution is posted below the wildlife photo. A. False  Abandoning the property will not terminate a broker-seller agreement. If the seller / owner declares bankruptcy the relationship could be terminated. 07/09/2014

#2844 When a real estate broker acts as the agent for the seller the broker has an obligation to disclose confidential information about the seller to the buyer if it helps the chances of closing the deal. True or false ? Take your time. The solution is posted below the wildlife photo. A. False When a real estate broker is acting on belhalf of a seller the broker has an obligation to remain faithful to the interests of the seller. Disclosing confidential information in order to gain procurement of a sale is inappropriate. 07/09/2014

#2843 In a real estate transactionn, when one speaks of a fiduciary relationship their typically referring to a relationship that will allow another person to act on behalf of another with the additional privilege and grant of legal power  for the other persons affairs. Is this true or false ? Take your time. The solution is below the wildlife photograph. A. False A fiduciary relationship is one which represents an agents reloationship to the principal or the one that hires the agent. 07/09/2014

#2842 A house was built on top a pile of manure. The ceilings of the home we're also poorly constructed and poorly attached to any supporting members or beams. This would be considerd an example of a stigmatized property ? True or false ? A. False If the house was constructed on top of a pile of manure and the ceiling construction was garbage, this would be considered an example of latent defects in the property. 07/09/2014

#2841 A buyer inquired as to whether or not a city landfill was going to be constructed on an adjacent lot in a new subdivision. The seller's agent replied that she didn't know even though the agent was fully aware of the fact and failed to disclose this to the prospective buyer. If the seller's agent had disclosed this fact to the potential; buyer it would have been considerd to be representative of an uneccessary disclosure. True or false ? A. False Failure to disclose the fact that a new city landfill is going to be constructed on the adjacent property is an example of fraudulent misrepresentation. 07/09/2014

    #2840 A buyer wants to finance the purchase of a duplex with an FHA loan. The buyer may do this only if the intention is to rent out both of the units. Is this fact true or false ? Please take your time. Te solution is posted below the wildlife photo. A. False Federal Housing Administration (FHA) loans are normally made to finance the purchase of an owner-occupied primary residence. 07/09/2014

    #2839 For hypothetical purposes, a home is located in a low closing cost area of a state and it's selling for $400,000. It was appraised at $410,000. The FHA max ceiling for the loan is $390,000. The maximum amount that the buyer would be able to receive is the FHA max of $390,000. Is this fact true or false ? Please take your time. The solution is poted below the wildlife photo.   A. False The FHA will have a maximum loan amount available based under the FHA's LTV (loan to value) rules. In a state that is low-closing recognized and the price of the property or it's value is over $125,000 the maximum LTV would be 97.15% of the lessor of the property's appraised value or sales price. The selling price is lower so we multiply 97.15% times 400k and here's what it looks like : 400000 se... 07/09/2014

#2838 The Federal Housing Administration not only insures the loans it sells, but it buys them also. Is this fact true or false ? Please take your time. The solution is posted below the wildlife photo. A. False The Federal Housing Administration neither buys nor sells loans. The Federal Housing Administration does insure loans, however. 07/09/2014

#2837 Secondary financing of a property may always be used to cover the minimum cash investment of the borrower as long as the sum of the two loans exceed the properties value. Is this fact true or false ? (puhleeez, you better not miss this one) Remember to take your time. The solution is posted below the wildlife photo. A. Absolutely false Secondary finacing may be used only if the two loans do not exceed the value of the property. 07/09/2014

#2836 If secondary financing is used in alignment with a conventional loan it may never be partially or fully amortized with a balloon payment. Is this fact true or false ? Please take your time. The solution is posted below the wildlife photo. A.False Secondary financing may certainly be fully or partially amortized, and with a balloon payment. Seconday financing may even be interest only. 07/09/2014

#2835 A man is applying for aconventional loan with an LTV of 90%. He has a monthly income of 3000 dollars a month. His total monthly recurring debt obligations equal 500 dollars. What is the maximum monthly mortgage payment that this buyer will qualify for ?   A. $580 Here's how it works. 3000 total monthly income*0.36 or 36% of monthly income for mortgage=1080 total for mortgage -500 in additional recurring debt subtracted from the maximum allowable for the mortgage=580 dollars total available for mortgage payment 36% is the  standard for lending if there are other monthly debt obligations 07/09/2014

#2834 When we talk about a 2-1 buydown plan we're talking about buying down the interest rate at 1% for two years. Is this fact true or false ? Please take your time. The solution is posted below the wildlife photo. A. False A 2-1 buydown plan is one that is considered a temporary buydown and the interest rate is reduced by 2% the first year and 1% the second year. 07/09/2014