Real Estate Associate Practice Quiz 1

The correct answer is that the city has the authority to proceed through the right of eminent domain. Eminent domain is the power of the government to take private property for public use, as long as just compensation is provided to the property owner. In this case, the city plans to take the homeowner's property to build a public library, which qualifies as a public use. Therefore, the city has the authority to proceed with the seizure of the property through the right of eminent domain.

A real estate salesperson may receive a brokerage commission only from his/her employing broker. This means that the salesperson can only receive a commission from the broker they work for and not from any other cooperating salesperson or broker.

Discount points are charges imposed by a lender to increase the interest yield on a mortgage. These points are essentially prepaid interest that borrowers can choose to pay upfront in exchange for a lower interest rate on their mortgage. Each discount point typically costs 1% of the total loan amount and can lower the interest rate by a certain percentage, usually 0.25%. By paying discount points, borrowers can reduce their monthly mortgage payments and save money in the long run.

After signing a home improvement loan on his personal residence, the owner is allowed 3 business days to rescind the contract due to Regulation Z. Regulation Z is a federal law that provides certain consumer protections for credit transactions, including the right to cancel certain types of loans within a specified period of time. In this case, the owner has the option to rescind the contract within 3 business days of signing.

The salesperson earns 2/3 of a 7% commission on a sale of 14 acres at $2,150 per acre. To calculate the commission, we first find the total sale amount by multiplying the number of acres (14) by the price per acre ($2,150), which equals $30,100. Then, we calculate the commission by multiplying the total sale amount by the commission rate (7%), which equals $2,107. Finally, we find 2/3 of the commission by multiplying the commission amount by 2/3, which equals $1,404.67. Therefore, the commission would be $1,404.67.

The estimated value of the subject property is $75,000. This is calculated by adding the value of the 3 bedrooms ($21,000), the 2 bathrooms ($5,000), and the unfinished basement ($0) to the base value of the house.

The principal paid on the second month's payment can be calculated by subtracting the interest paid from the total monthly payment. Since the monthly payment is $230.67 and the annual interest rate is 8.5%, the monthly interest can be calculated as (8.5% / 12) * $30,000 = $212.50. Therefore, the principal paid on the second month's payment is $230.67 - $212.50 = $18.17.

The correct answer is "THE SIGN MUST INDICATED THAT THE OFFICE IS A BRANCH OFFICE." This statement is incorrect because branch office signs are not required to indicate that the office is a branch office.

The correct answer is that only the broker is in violation of Chapter 475, F.S. This is because the broker is employing an unlicensed secretary who is referring prospects to the broker and receiving a bonus for each referral. According to Chapter 475, F.S., it is illegal for anyone to engage in real estate brokerage activities without a valid license, and the secretary's actions can be considered as engaging in brokerage activities. Therefore, the broker, who is responsible for ensuring that all employees are properly licensed, is in violation of the law.

A salesperson can accept a deposit in connection with a real estate transaction only under the condition mentioned in option III. This means that the salesperson can accept a deposit if they are licensed and authorized to do so by their broker. Options I and II are not valid conditions for accepting a deposit in this context.