Reference no: EM133034954

1. A broker lists several newly constructed affordable homes of a builder client. The broker wishes to advertise these homes targeting first time buyers. Which of the following financing terms in the advertisement would trigger further financial disclosure requirements under the Truth-in-Lending Act?

A. Terms to fit your budget
B. FHA and VA financing available
C. easy monthly payment plans available
D. buy for less than $5000 down for a monthly payment under $850

2. To be legally binding, a listing agreement can be signed for the owner by the

A. broker, upon telephone instructions from the owner
B. trust beneficiary acting under a valid trust
C. owner's heir apparent
D. attorney in fact

3. An escrow or a trust account is often held by a lender to pay

a. The banks outstanding invoices
b. Property taxes and insurance payment
c. Mortgage payments
d. Interest on a loan

4. A building was purchased for $350,000 with a 20% down payment, If the lender charged the buyer three discount points, how much will the buyer need to cover these two:

1. $61,600
2. $78,400
3. $80,500
4.$360,500

5. A couple calls a broker to sell their home. The brokers inspects the house and notices water marks on some of the ceilings. The sellers admit there roof leaks and don't want to tell prospective buyers about it, what should the broker do?

-Operate in the best interest of the sellers and list the house just they way they want it
-List the house for sale after the sellers paint the ceiling
-Lis the house, declining responsibilities for any lack of disclosure
-Decline the listing