45-HR. CA REAL ESTATE PRACTICE COURSE » Summer 2021 » Section 4 Unit 3 Exam

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Question #1
Closing issues do occur. Which is a common closing issue?
A.   The seller leaves valuable artwork behind.
B.   The seller refuses to move out.
C.   The buyer doesn't bring a cashier's check to closing and fails to wire funds.
D.   Either the buyer or seller fails to appear.
Question #2
Drake’s offer to purchase Kevin’s condo currently has a financing contingency, an inspection contingency, an appraisal contingency, and a sale of current home contingency. Kevin also got an offer from Lucy, which came in at $5,000 less than Drake’s offer but with only an appraisal contingency. What is true about Drake’s offer compared to Lucy’s?
A.   It's likely viewed as a more favorable offer.
B.   It will likely set off a bidding war.
C.   It's likely viewed as a less favorable offer.
D.   It's likely viewed as a lowball offer.
Question #3
Your client wants to include multiple contingencies in his offer. But you know several buyers are interested in the property, and it's going to be a competitive bidding situation. You say to your client, ___________.
A.   "To be competitive, you should remove all contingencies."
B.   "Contingencies always kill a deal."
C.   "Great idea. This will help our offer stand out."
D.   "Let's evaluate which contingencies matter most to you and consider omitting the rest."
Question #4
Which of the following statements accurately represents a major difference between a pre-approval letter and a pre-qualification letter?
A.   Buyers receive a pre-approval letter only after the lender has verified at least some information the buyer provided.
B.   Pre-approval letters mean that the buyer has received final approval for a loan after going through the entire loan process.
C.   Pre-qualification letters are more difficult to get than pre-approval letters.
D.   Unlike a pre-approval letter, a pre-qualification letter ensures that the lender has verified information the buyer provided.
Question #5
The main difference between loan pre-qualification and loan pre-approval is that loan ______ doesn’t include lender verification of buyer-provided data.
A.   Research
B.   Underwriting
C.   Pre-approval
D.   Pre-qualification
Question #6
As a buyer’s agent, what is your responsibility regarding the funds the buyer must provide at closing?
A.   You must pick up and deliver them.
B.   You must deliver them.
C.   You must make sure your buyer knows they're required and the amount needed.
D.   You must pick them up.
Question #7
What's one of the main purposes of a home inspection?
A.   To discover defects that could materially affect value
B.   To create a maintenance plan for the new home owner
C.   To discover cosmetic issues
D.   To discover cosmetic and structural issues
Question #8
What happens when an appraisal comes in lower than the agreed-upon sales price?
A.   The seller must reduce the price to the appraised value.
B.   The buyer will be forced to terminate the contract immediately.
C.   The parties may choose to negotiate the difference.
D.   A new appraisal will always be ordered.

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