WRONG!Wrong!

WRONG!

OK, If you’re tired of seeing that, once you’re finished, you can look here for explanations on all of the non-math quizzes (Math explanations are separate). DON’T do it until you’re finished (You’ll see the other answers). IF YOU ARE IN THE MIDDLE OF A QUIZ, click the back arrow on your browser, or click on the quiz name in the top frame.

General Explanations Maryland State Law Explanations Topic Explanations Low-Cost Website Design

GENERAL QUIZ

Explanation for question number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1. An agent owes the principal the responsibilities of care, obedience, accounting, loyalty and disclosure. Disclosure can also can be called notice. This can be remembered by the acronym COALD.
2. A lease for a definite period of time, even a week, is an estate for years.
3. As of 1988, it is illegal under the Fair Housing Act to have “adults only” communities (although there are some exceptions for retirement communities). Marital status is not protected under the Federal Fair Housing Act, which is the reason the Catholic couple is denied the apartment, not because of their religion. Loans can be denied to someone who just starts a new job, no matter what race they are. Moving companies or storage space are not covered under fair housing laws.
4. Payments on an amortizing loan address interest plus something towards the principal from the very beginning. A Graduated Payment Mortgage has a schedule of lower payments in the beginning part of the loan, even lower than the interest that is owed, so nothing is paid towards the principal at first. Later on the payments will increase and it will amortize like a normal loan.
5. A land contract can also be called an installment contract, or a land installment contract. The seller basically functions as a lender for the purchaser of the property. The transfer of title takes place over a long period of time. The seller holds onto legal title until a certain amount of the purchase price is paid back.
6. A unilateral contract is one in which only one side is obligated. An open listing is a unilateral contract, because the agent is not obligated to market the property, but if they produce an acceptable buyer (i.e., the seller accepts the sales contract), the seller is obligated to pay a commission.
7. Area preference or situs is the most important characteristic of real estate.
8. $5000 x 12 will give you an annual gross income of $60,000. 60,000 minus 16,000 will give you a yearly NET income of $44,000. 44,000 divided by the capitalization rate of 12% will give you a property value of $366,666.67.
9. DELIVERY and acceptance is when the transfer of title takes place. The essential elements of a contract are consideration, reality of consent, legal objective, legally competent parties and OFFER and acceptance.
10. OK, it takes me five minutes to answer this question and I WROTE it (but isn’t it fun?). The order that things happen is important. Bob, Carol, Ted and Alice are joint tenants. First, Ted sells his share to Jane, which would make her a tenant in common with 25%. Next, Bob dies, and his share would be divided between the two remaining joint tenants, Carol and Alice, so that they would be joint tenants with 37.5% each. Then Alice sells her 37.5% to Flo, who would become a tenant in common. Since Carol does not have anyone else to be joint tenants with, she would be a tenant in common as well. When Carol dies, her 37.5% would go to her heirs. Jane’s 25% would go to her heirs when she dies. When Ted marries Flo, nothing changes. Her property is still her property. So, Carol’s heirs and Flo each own 37.5%, Jane’s heirs own 25% and they are all tenants in common.
11. FHA loans are insured by FHA. VA (or DVA) loans are not insured, they are guaranteed, although it is true that the government does not loan the money for VA or FHA loans. The mortgage insurance on a conventional loan is called PMI (Private Mortgage Insurance).
12. The grantor may NOT be a minor. The grantee may be a minor. The grantor signs a deed. The grantee does NOT sign a deed.
13. If there is more than one owner and the deed does not specify the form of ownership, it will be assumed that they are tenants in common (except a married couple might be considered tenants by the entireties).
14. Under seller agency, Tom is considered to be representing the seller, whether it is his listing or not. Therefore he could not suggest any price other than the full listing price.
15. Shame on you if you got this wrong! Al Gore was Vice-President until January 20^th, 2001, and was followed by Dick Cheney, who was followed by the current Vice-President, Joe Biden. Hillary Clinton is a former First Lady and U.S. Senator, and ran for President. She is currently the Secretary of State. George W. Bush is the previous President, and was not the Vice-President. If you put Spiro Agnew, you really need to watch the news a little more often.

STATE LAW

Explanation for question number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1. Who is paying the money is a completely separate issue from who is being represented. Being PAID by both parties does NOT create a dual agency. Dual agency is created when both parties are being represented, whether the commission or fee is being paid by the buyer, seller or both. A broker can only be paid by both with full written disclosure and written permission of both parties.

2. A salesperson cannot even show his or her own listing to a buyer that they are REPRESENTING. They would have to find another salesperson to work with the buyer on THAT TRANSACTION. Also, a licensee could still sell their own listing to a buyer customer, where the buyer has NOT yet signed a buyer agency contract.

3. There is no such thing as an attorney-at-will. The list of people who can do an act of brokerage DOES include attorney-at-law, attorney-in-fact and someone appointed by will.

4. Salespeople are no longer dual agents in Maryland. In a transaction where both the buyer and seller are being REPRESENTED by the same company, the broker or company would be the dual agent. The salespeople would be Intra-Company Agents (ICAs), and could still fully represent the buyer or seller. The license law requires different salespeople if both parties are being represented. A licensee can NOT show properties listed with his own company as a presumed buyer’s agent.

5. OK, if you’re stuck on the wording, Peck is buying the house on Pepper Street. Since Peter Piper works for a DIFFERENT Real Estate Company, he can SHOW the house as a presumed buyer’s agent without getting the agency disclosure signed. An agent can NOT write up an offer, or help someone negotiate as a presumed buyer’s agent, whether the house is listed with the same or different company, therefore, Peter Piper must get a written agency disclosure signed before writing the offer. And, just in case you didn’t know, the law doesn’t change, just because you are working with a friend.

6. Blockbusting is using scare tactics, based on a protected group of individuals (race, religion, handicap, etc.), to get a homeowner to sell or list their house for sale, and is illegal.

7. Calling expired listings is an acceptable business practice.

8. A salesperson does an act of brokerage in the name of the broker, so if the broker can’t do an act of brokerage, the salesperson can’t do it in their name. The salesperson could, however, transfer to another company and work there.

9. The Maryland Real Estate Commission consists of nine members, FIVE of which are licensed in the real estate industry, and FOUR are from the consumers or public at large. All of the members are appointed by the governor. Licensees may join the BOARD, which is the trade association.

10. An Intra-Company Agent (ICA) can fully represent their buyer or seller in a transaction where both the buyer and seller are represented by the same company. There must be a different salesperson working with each party. The broker or company is a dual agent. Salespeople are no longer dual agents (not legally anyway).

11. A licensee selling a house must disclose any material fact that they know or SHOULD know about the property. Material facts would include anything physically wrong with a property, any structural problem, any environmental problem on the property or in the vicinity of the property, liens or pending liens, and legal items such as taxes or zoning concerns. Material facts would NOT include murder, suicide, natural death, felony, AIDS or HIV, the type of people that live in a neighborhood or crime in a neighborhood.

12. A licensee must complete ALL of their continuing education BEFORE renewing their license. If they cannot, they should put their license on inactive status until they can complete the requirement. If the license expires, they will have to pay a $100 fee to reinstate it. If the license is expired for more than four years, then they would have to take the state exam again. A licensee cannot carry continuing education credits from one term to the next.

13. An agent is obligated to deal fairly and honestly with ALL parties, even if a party is NOT being represented. An agent may NOT keep material facts about a property confidential, even if the seller asks the agent to do that. A seller is not always represented. It is possible for a buyer that is being represented to get help from the agent in buying a house that is not listed with a real estate company.

14. This is a double negative. “NONE are true...EXCEPT” means ‘Which one is true?’ Even if the seller fills out the Disclaimer statement, the agent is still obligated to disclose material facts that they know or should know about a residential property. The buyer must receive the Disclosure or Disclaimer Statement BEFORE they submit an offer. If they don’t receive it until after the contract is ratified, they have 5 days to rescind the contract. If 3 days go by and they still haven’t received the form, or if they don’t receive it at all, the contract is voidable by the buyer until they apply for a loan. This is still true, even if the seller does not use a real estate agent.

15. You cannot start selling until you get your license. You cannot get your license until you affiliate with a broker. And you’re ALWAYS welcome to visit this website!

Do you have feedback? Write us at YDQ@YourDailyQuiz.com. We’d love to hear from you!

INSTRUCTORS - Pass this on to other Real Estate companies!
This FREE service has to spread by word of mouth to remain available.

General Explanations Maryland State Law Explanations Topic Explanations Low-Cost Website Design

ã2000 Douglas R. Barry