solution

Question 1

A loan is offered and later there is a change in APR of 0.125%. What will be required to close?

A – an expedited closing

B – a shortened loan term

C – a revised closing disclosure

D – a notification from the Consumer Financial Protection Bureau

Question 2

The buyer is interested in opening a day care center in the city. A large vacant lot near the manufacturing district is available. The city is encouraging more day care and has stated they will happily grant a variance. The buyer’s agent should advise the buyer

A – of the possibility of contamination and suggest the offer be written only subject to a satisfactory environmental report.

B – against such a venture as getting all of the approvals in place will be difficult.

C – to seek a location elsewhere that is already suitably zoned.

D – to write the offer contingent upon a satisfactory environmental report and zoning and planning commission approval.

Question 3

Inspection of a dump site on the property indicates the clean-up will cost approximately $30,000, which you believe to be somewhat highly priced. The prospective buyer accepts the cost and wants to close. Which one of the following is most appropriate?

A – Tell him the estimate of cost for the dump site is unrealistic.

B – Support the buyer’s choice for purchase without question.

C – Be sure the offer includes acknowledgment of all disclosures.

D – Document that you advised against making an offer.

E – Recommend a second estimate from another vendor.

F – Recommend that the seller pay for the cleanup.

Question 4

Ted and Steve bought property together, taking title as joint tenants with right of survivorship. If Ted dies, his interest in the property will transfer to

A – Steve.

B – Ted’s spouse, if he was married.

C – Ted’s heirs.

D – Steve’s heirs.

Question 5

Buyer Jim signs a purchase contract at the asking price with no contingencies and the 30-day closing date as specified by the seller. Seller Tom changes the contract closing date of 40 days and signed the contract. This contract, in its present form, is:

A – Valid with the 30-day closing date, since Buyer Jim met all the terms as originally specified by the seller

B – Valid with the 40-day closing date, since a 10-day extension is not considered material to the contract

C – Invalid since the signed documents do not yet indicated mutually agreed-upon terms

D – Enforceable, since the seller has provided a valid counter-offer