David Saks

                                                               #344

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.

                                                            #343

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.

                                                            #342

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.

                                                      #341

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.

                                                           #340

A buyer paid $460,000 for the house.

The lot was valued at $65,000.

The mortgage was for $200,000.

After all is said and done, how much equity does the homeowner have in the place ?

A. $260,000

First of all, the value of the lot has nothing to do with the calculation, so let's hope you don't figure it with eithyer a simple mathematical addition or subtractioin.

Therefore, let's just subtract the value of the loan from the cost of the home (460k-200k) and we see that we've got $260,000 in equity in the house.

Remember, the market value of the house minus the amount remaining on the mortgage is the equity.

Or mv-dbt=equity.

                                                       #339

Homeowner's purchase homkeowner's insurance because they know that homeowner's insurance will replace old furniture and roofs when these things need replacing.

True or false ?

A. False

Homeowner's insurance doesn't cover replacement because of age, although it does cover financial losses created because of fire, vandalism or burglary.

There are many different varieties to the formula when considering underwriting an homeowner's insurance policy.

In some cases, supplemental policies which cover appliances and HVAC may be considered.

                                                   #338

A homeowner's house was constructed in such a way so that the floor of the house was built nearly two feet above a one hundred year old flood mark.

The homeowner wants to apply for a federally related home loan.

The lender must require flood insurance.

True or false ?

A. False

The lender could exempt the homeowner from any flood insurance requirement because of the level of the flood mark and the it's age.

                                                      #337

A mortgage broker told a homeowner that he could deduct the appraisal fee from his annual gross income for income tax purposes.

Is this true or false ?

A. False

It could be considered a fraudulent misrepresentation of facts regarding the loan from the beginning of the loan process.

Loan discount points may be deducted from a homeowners income, however, for income tax purposes. 

The most important thing to remember about points being 100 percent deductible is that points are paid to obtain a specific type of loan. The loan has to be a loan to build, buy or improve (example : add a room) your principal residence.

                                                            #336

A homeowner insurance policy contained a provision for coinsurance along with coverage that insured the home for total replacement cost.

The home burned down and the homeowner had to settle for the present cash value of property damaged in the fire.

True or false ?

A. False

Because the homeowner policy insured the home for total replacement cost, the homeowner can make a claim which covers the full costs of replacement or repairs resulting from any damages to the property whatsoever. No deduction for depreciation is taken into consideraration because the home is insured for total replacement cost.

                                                         #335

A developer built a highrise building in the greater Memphis metropolitan area.

This highrise includes residential units, office space and retail stores and is considered to be a planned unit development.

True or false ?

A. False

A highrise building that combines the best asp[ects of residential property, office accomadations and retail shopping is a mixed-use development because of the assortment or commercial and residential applications assembled under one roof.