b) are less flexible than government-backed loans . a) the lender must have a reserve balance on hand to cover the loan amount. d. all of the above Then present the $208,000 offer. d. Margin analysis, Relationship efficacy What action has Fred taken? The agent can tell Ben and Blanche that the $200,000 offer represents 96% of their asking price. C) operating variables B) not required to disclose the information because the seller might reject the offer. c) A certificate issued by the property owner that indicates that the building is in proper condition to be occupied. A) needs-based segmentation Jerry agreed to what type of lease? Customers prefer a collaborative relationship when there is a competitive supply environment featuring many alternatives. 11) If a seller prepaid an insurance policy of $2,100 and the closing is set for March 15, using the 12-month/30-day method, what will the buyer owe the seller? a) Tax map b) Survey c) Street address d) Subdivision plat map. D) socio-economic infrastructure a) If neither party agrees to the terms. b. solidarity. b. Which of the following statements are true? E) niche, Answer: C Transactions that are almost, if not entirely, void of a close, collaborative relationship: d) A certificate issued by the mortgage holder that indicates that the building is in proper condition to be occupied. D) personal characteristics A) demographic variables c. social A purchase offer is a binding contract between the buyer, the seller and their agents. c. Investments and risk of exposure a) Percentage b) Net c) Provisional d) Graduated. When you believe an offer is both fair and reasonable but it does not meet the sellers asking price, you should: Make no recommendations and let the sellers decide on their own. #3. c. A strategic alliance For example, ________ can show the firm which brands are most competitive with its own. \end{array} a) Actual notice b) Torrens system notice c) Apparent notice d) Constructive notice. b) The leased property is foreclosed. 8) PMI loans made after July 1999 require that the loan must be released. Which statement is TRUE? Diff: 2 11) Which of the following is not true about reverse annuity mortgages? 1. b. personal property. Diff: 2 C) concentrated 1) What is another term used to describe a promissory note? b) neither an instrument of conveyance nor contract. #1. c) valid but unenforceable contract. 10) Which of the following is an item that is not normally prorated? a) A promise to pay b) A judgment letter c) A property lien d) Earnest money. a) Receipt b) Buyer's Statement c) Purchase Offer d) An Agreement. c. focus primary attention on the purchasing staff. If the closing is set for October 15, using the 365-day method, how much of the taxes will be credited to the buyer? C. If buyers can easily switch firms, then buyers have increased power. 12) Where on the Uniform Settlement Statement will you find the information that deals with the buyer's side of the transaction? 2) According to contract law, every valid contract is also what? a. a collaborative advantage. An exclusive agency agreement differs from an exclusive right to sell agreement because under an exclusive agency agreement the firm is not paid if the seller finds a buyer on their own. The listing with this type of provision is known as: A net listing provides for the brokerage commission to be an excess amount over a predetermined net amount to be received by the seller. Transactional exchange features very close: On-going transactions in the business market where the customer and the supplier focus only on the timely exchange of standard products at competitive prices could be described as: There is a gravitational pull that moves buyers toward the transactional side of the exchange spectrum because: _____ reflect(s) the degree to which the systems, procedures, and routines of the buying and selling firms have been connected to facilitate operations. a) Estate For Years b) Estate At Will c) Estate At Sufferance d) Estate At Order. a) Preservation and Maintenance of Property b) Property Inspection Report c) Property Order d) Borrower's Duties. a) $431.62 b) $437.45 c) $1,662.55 d) $1,668.38, 12) Expenses that the seller incurred but have not yet been billed for at the time of closing are. a) It's an accepted offer; therefore a valid contract. 1) What type of document does a home owner sign when agreeing to a mortgage? b) A tenant buys the landlord's ground, then leases the improvements. b) will be a credit to the buyer. b) Private mortgage insurance is available for FHA loans. According to North Carolina Real Estate Commission Rules, all of the following are required to be part of a listing agreement, EXCEPT: Listing agreements and buyer broker agreements may not provide for an automatic extension of the agreement. Notification is the delivery of a signed copy of the acceptance to the offeror. B. Buyers hire an agent to help them purchase a home and want seller financing because they filed for bankruptcy two years ago. 7) A buyer submits an offer to a seller. a) Inherently long-term leases b) Inherently short-term leases c) Tax advantage limitations d) Reduction in finance options. b) are less flexible than government-backed loans . d) using a schedule of changes. AACSB: Analytical thinking, 49) The characteristic of useful market segments that relates to whether the segments can be effectively reached and served is whether the segment is ________. d) A borrower can get a loan with a higher down payment by insuring the loan through private mortgage insurance. Diff: 3 D) segmented Does it make sense for a corporation to repurchase its own stock? c) A chronology of successive owners of record of a parcel of real estate. C) It creates synergy between markets. c) They are always a debit to one party and a credit to the other party for the same amount. a. Transactional exchanges 9) PMI loans made after July 1999 are now regulated by Federal law. a) 10 percent b) 15 percent c) 20 percent d) 25 percent. b) The apartment can be converted to a rent-controlled apartment. d) the borrower must have a co-signer. b) The bundle of rights linked to the recorded title to a parcel. d) The Torrens registry retains the original registration documents and provides copies to the recorder or other appropriate office. c) excusable. c. refers to the ability of an interfirm relationship to achieve desired objectives. Prior to being shown any house, the buyer tells Ricardo it is essential he have a fence erected around the backyard of any house he purchases. This takes a positive view of the price. Assume that its cost of goods manufactured is $534,390. C) segment profitability 9) Which contract provision makes previous promises null and void? The open exchange of information is a characteristic of ____ relationships. This action is based on which mortgage feature? Earnest money deposits, when paid in the form of a personal check given on an Offer to Purchase and Contract, must be deposited in an escrow account: A. no later than three banking days after acceptance of contract, B. no later than 72 hours after receipt of money, C. no later than three business days after receipt of the money, D. no later than 72 hours after acceptance of contract, no later than three banking days after acceptance of contract. b) entails entering into two agreements simultaneously. d) estates from period to period. a) Graduated b) Gross c) Percentage d) Net. e. (a) and (b) only. AACSB: Analytical thinking; Application of knowledge, 14) A company can learn a great deal by analyzing the degrees of brand loyalty. c. marketing plan The buyers have been pre-qualified by a lender. c) To reimburse clients for money that was misused by their attorney. a. C) situational factors b) All the parties must initial the changes. d. All of the above. 5) Mike signed a rental agreement for his friend Norm. Rewrite whole paragraphs to ensure clarity. b. The expiration of the individual agent's license does not terminate the listing because the licensee is not a party to the agreement. LO: 6.2: How should a company choose the most attractive target markets? operations. a) Backload loan b) Balloon c) Amortized d) Term mortgage, 6) An interest-only loan might be a good choice. E) producing products that can be used in a variety of ways. Ben and Blanche receive a $200,000 offer on their home which is listed at $208,000. b) after 5 years of loan payments. c) the mortgage itself provides the only security for the loan. #14. Hurricane Inc. purchased a portfolio of available-for-sale securities in 2014, its first year of #3. Ricardo finds perfect house for buyer but it does not have a fenced in backyard nor does the listing information sheet indicate whether fences are allowed or not. 3) Which mortgage clause requires a borrower to maintain the physical condition of the mortgaged property? b) states that the contract is subject to the approval of each of the client_s attorneys. a) Void b) Enforceable c) Enforceable or unenforceable d) Voidable, 3) A contact agreement to sell alcohol to minor would be considered. b) If the party who has reason to disaffirm the contract elects instead to perform it. a) require lower down payments than government-backed loans require. #6. A) It obligates the seller to transfer the property if the broker procures a ready, willing, and able buyer. Meet with the buyers lender to ensure theyre getting a good deal. d) carry prepayment penalties, while government-backed loans do not. LO: 6.3: What are the different levels of market segmentation? Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying. a. Give the sellers the price over the phone so that they can think about it before you meet with them. a) Fixed b) Straight c) Amortized d) Open. 7) What kind of lease contains a recapture clause? When the price elasticity of demand is low and the price elasticity of supply is high, the burden of a tax falls mainly on producers. When organizational buyers consider changes from one selling firm to another, what are the two main categories of switching costs they consider? 15) Which of the following does not meet the criteria for a VA loan? What type of loan does Jim hold? ", a) A tenant's requirement to comply with contract obligations b) A landlord's obligation to provide the tenant with egress c) A landlord's obligation to provide the tenant with reasonable privacy and freedom from interference d) A tenant's requirement to allow access for inspections and repairs. 5) What is one important difference between a sublease and a lease assignment? Diff: 3 create, study and share online flash cards. d) The tenant leases the ground from the landlord and owns the improvements. E) personal characteristics, Answer: A A) measurable What type of lease did Jim sign? a) To make a down payment on a motor home, a) Preservation and Maintenance of Property. a) require lower down payments than government-backed loans require. d) provide a fixed interest rate for the life of the loan. A(n) _____ represents the products, services, ideas, and solutions that a business marketer offers to advance the performance goals of the customer organization. #15. 6) RESPA applies to all of the following EXCEPT which? The listing agreement is between the client and the firm. a) both an instrument of conveyance and a contract. D) vertical market C) consumer maturity The $20,000 is what type of mortgage? B) product innovation C) decider c) It nullifies oral leases and listing agreements. C) It helps to build a loyal customer base but has no impact on a firm's intangible assets. Customer profitability d) states that a lawyer can rescind the contract terms within 10 days of contract approval. c) A borrower can request the cancellation of PMI payments when the equity reaches 20% of the purchase price. c. are one-time exchanges of value between two parties with no prior or subsequent interaction. AACSB: Analytical thinking; Application of knowledge, 69) All of the following are benefits of following the ________ approach to target market selection: a strong knowledge of the segment's needs, a strong market presence, operating economies through specializing in production, distribution, and promotion. 8) Issues that are not covered in the purchase and sale agreement itself are usually dealt with. c) A sublease does not convey any of the leasehold interest. a) Accounts Payable b) Accounts Receivable c) Impound Account d) Forward Account. D) differentiable b) It's an invalid contract. Which of the following are reasons for business marketers to employ relationship marketing activities? c) If the party who wants to enforce the contract seeks legal relief. a. relates to the longevity of the relationship between a buyer and seller c) It is not voidable. A) It makes the company almost bulletproof to competitors' actions. A home for sale awaits prospective buyers on October 27, 2022, in Hollywood, Florida. E) actionable, Answer: E c. an arm's length transaction. 2) Prospecting for sellers is easier than prospecting for buyers. 5. a. see that operational linkages are designed into the relationship to keep product and service offerings aligned with customer needs. Hold both offers because he heard that a full-price offer is on its way. The buyers are interested in another property. 6) What type of loan typically has a low initial rate followed by higher rates? E) short-term segmentation, Answer: A e. (a) and (c) only, Business marketing relationships vary in terms of their closeness or degree of collaboration. It is unwise for marketers to make specialized investments in transactional relationships. 4) Which part of a contract deals with the legal requirements to enter into a contract? 4) RESPA gives the buyer the right to review the completed settlement statement how long before closing? c) The borrower pays a fixed rate of interest. Customers prefer a transactional orientation when there are few alternative offerings from suppliers. Diff: 2 Today, when a buyer can't specify all of the details of what it will need in the future, the relationship with a supplier is most likely to involve: Close buyer-seller relationships have many advantages for a firm, but one key disadvantage is: B) long-term commitments to another organization reduce flexibility for a firm. d) The original offer is legally terminated. Trust and relationship commitment #13. 6) Buyers Jim and Jan are closing on a home later this month. The U.S. government would not publish NAICS data that gives: C) the total sales volume of the only textile equipment manufacturer in a state. b) The buyer's agent tells the seller's agent. E) actionable, Answer: B 9) What do we call the right of a person to have the first opportunity to purchase or lease a property? a) increase the interest rate as the principal declines. a) 2 percent of the loan amount. E) segment "acid test", Answer: C d) The loan must be repaid before the borrower's death. Calculate the test statistic and ppp-value for each sample. Which statement is TRUE? E) benefits, Answer: D A) Step 2-segment identification Diff: 1 Which of the following are goals of customer relationship management (CRM)? b) the First National Bank. 6) A homeowner's insurance policy typically covers all but which of these? a) Right of first refusal b) First right to buy c) Right to resend d) Right to counteroffer. e. (a) and (c) only. Diff: 3 b) a class 3 felony. 11) Where on the Uniform Settlement Statement will you find the information that deals with the seller's side of the transaction? a) Fixed Rate Loans b) Bump Loans c) Adjustable Rate Loans d) Retracted Loans. Business marketers track customer loyalty and retention because: This is known as what type of account? E) operating variables, Answer: A 6) Pampers divides its market demographically on the basis of ________ into prenatal, new baby, baby, toddler, and preschooler. The buyers are interested in another property. A) macrosegmentation C. Ricardo & listing agent = seller sub-agent, they have no duty to determine if fences are permitted. d) The escrow agent will subtract the total of the buyer_s credits from the total debits and the result is what the buyer needs to bring. AACSB: Reflective thinking, 44) During which step of the needs-based segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem? a. industry bandwidth C) differentiable AACSB: Analytical thinking, 65) In ________ marketing, the firm operates in several market segments and designs different products for each segment. 7) How does the buyer know how much money to bring to closing? LO: 6.1: In what ways can a company divide a consumer or business market into segments? b. 1) Prospecting for buyers is easier than prospecting for sellers. E) actionable, Answer: D d) after 7 years of loan payments. B) selective specialization Once the offer or counteroffer is accepted and the offeror has been notified, a legal contract is formed. LO: 6.1: In what ways can a company divide a consumer or business market into segments? c. liquidated damages. Here's why: We already know that all sellers have a duty to disclose any "material defects." And while buyers and sellers may disagree on what a material defect is, one of the best ways to . c) The maximum purchase price of the property cannot exceed $250,000. AACSB: Analytical thinking, 22) When marketers present flexible market offerings to all members of a business segment, their offerings consist of two parts. D) It is a low-cost strategy. a) both an instrument of conveyance and a contract. b) Select a specific, limited course of action for recouping their losses. Buying firms prefer a transactional relationship when: Buying firms prefer a more collaborative relationship when: Which of the following statements about buyer-seller relationships is(are) true? E) consumer motivation, Answer: E d. Operational linkages and relationship connectors. c) include all outstanding liens against the property. A) situational factors c) The broker finds out from the lender and tells the buyer how much to bring. #12. In which situation would Sam not owe a commission to EX Realty? C. Once you set a goal you should never change it. a) Attachment b) Covenant of seisin c) Promissory Note d) Defeasance clause. b) It requires certain conveyance-related contracts to be in writing. 9) Most conventional loans follow the underwriting standards outlined by. 3) Which of these is a common property description? d) property inspection. 8) Which of these would be a CREDIT to the buyer at closing? 6) Broker Sara completes a preprinted sales contract. 1) What is the seller's primary function at closing? A company reports pretax accounting income of $10 million, but because of a single temporary difference, taxable income is only$7 million. c) It's still an offer. A. listing agent = duty to disclose listing 411 sheet that fences were not permitted. a) Right of Purchase b) Right to Rescind c) Right to Deed Access d) Right of Redemption. c) Arbitrate prior to taking court action. C) allowing consumers to gravitate toward product brands Browse over 1 million classes created by top students, professors, publishers, and experts. c) a payment cap. 9) Which of the following statements about Gen Xers is TRUE? a. a) Proceeds from tax exempt mortgage revenue bonds b) Private investors c) HUD funding d) Proceeds from state sales taxes. Recommend a counteroffer back to list price. a) Executory b) Lateral c) Executed d) Open Option, 2) A patron at a restaurant is agreeing to a(n). Discuss the accuracy of this statement. 7) Which kind of lease increases at specified intervals? 2) Jim signed a six months lease. A) undifferentiated AACSB: Analytical thinking, 46) In the ________ step of the market segmentation process, the marketer evaluates the segment using criteria such as market growth and market access. a. the range of relationship strategies (from transactional to collaborative) that are pursued by competing firms. a) Assignment of a Contract_ b) Operation of Law c) Transfer Clause d) Execute Clause. 2) Fred reclaimed a foreclosed property by paying off owed amounts, including interest and costs? a) Map coordinates b) Deed map c) Street address d) Survey map. a) It represents a "meeting of the minds." 1) Which type of lease has no automatic renewal? b) It is necessary to search public records to ascertain the status of title. What actions can the sellers take regarding the purchase offer? a) Interest Only b) Balloon c) Amortized d) Adjustable rate. It is true, that the United States Housing Market can be "unpredictable, volatile and cyclical." I believe it is crucial to familiarize ourselves with the pa. Subprime Mortgage Crisis The Federal Reserve worried that low interest rates encouraged risky borrowers to own a home; therefore, interest rates rose from "1 percent to 5.25 percent". If the dispute cannot be resolved the firm should allow the transaction to close and then bring a lawsuit against the seller for the commission, but the brokerage cannot hold the transaction between the parties hostage. #9. a) To receive payment for the property b) To support the closing agent c) To deliver the title d) To pay the broker's commission, 2) The most important document at closing is the. Diff: 1 d) The broker finds out from the lender and tells the sellers. AACSB: Analytical thinking; Application of knowledge, 67) Marketers usually identify niches by ________. LO: 6.1: In what ways can a company divide a consumer or business market into segments? c) implied contract. d) The tenant leases the ground from the landlord and owns the improvements. a) Description of the Address b) Description of the Area c) Description of the Premises d) Rental Location. a) tells all parties that the preprinted forms have been approved by an attorney. The listing agent does not inform the selling agent of the defect and since the defect, is hidden, the selling agent does not discover or disclose the problem to the buyer. e. interfirm cooperation. The cost and fair value of this portfolio on December 31, 2014, was as follows: NameNumberofSharesTotalCostTotalFairValueTornadoInc.800$14,000$15,600TsunamiCorp.1,25031,25035,000TyphoonCorp.2,14043,87042,800$93,400$93,400\begin{array}{lrrr} c. Achieving customer retention. Buyer purchases the house and later learns that he cannot erect a fence. Two hours later, the buyer finds a better house, calls the first seller, and withdraws the offer. #1. d) void. d. Buying centers. 10 of 10 All of the following are true statements about goals except which one? 5) Which contract provision allows for the transfer of the contract to another person? b. an equal advantage. If the buyer backs out of the contract without good reason, the offer to purchase contains a printed clause that says the seller may keep the deposit as: a. equity. 4) A contract that conveys an interest in real estate must. b) 5 percent of the loan amount. A) attitude B) discretionary solution 3) Which statement best defines a Certificate of Occupancy? B. It's easier to prioritize your tasks if your goals are in writing. They do not try to get a loan, and when the deadline for loan approval draws near, they tell their agent they couldn't get a loan. d) it may also restrict some uses. c) a promise note. Net listings are legal, but they are discouraged by the real estate commission due to their potential for taking advantage of a client. LO: 6.2: How should a company choose the most attractive target markets? \text { Name } & \text { Number of Shares } & \text { Total Cost } & \text { Total Fair Value } \\ c) settlement statement. a) The lender makes payments to the borrower. AACSB: Analytical thinking; Application of knowledge, 13) Mothers-to-be are potential users who will turn into heavy users of infant products and services. a) Amanda has illegally commingled the earnest money with her own money. Diff: 1 Which of the following statement(s) is/are true regarding death of a seller? A) personal characteristics a) Hold Over Mortgage b) Advanced Mortgage c) Principal Mortgage d) Purchase Money Mortgage. a) It invalidates certain oral contracts. b. d) for a seller in a buyer's market. D. Goals must be realistic if you hope to accomplish them. Which statement is true? 9) When a tenant agrees to pay all taxes, insurance, maintenance and repairs, that tenant has what kind of lease? c) Brokers may not complete leases to which they are not a party. The property owner should disclose the condition of the listed property or be subject to a 3-day rescission period on any contract formed. D) differentiable a) The buyer may not revoke the offer in such a short period of time. Obtaining commitment deals only with securing an order. D) A segment is attractive if it already contains numerous, strong, or aggressive competitors. b) All parties to the contact must initial the changes. c. relationship commitment. What type of contract does Bill hold? b. all satisfied customers will remain loyal. a) Amanda has illegally commingled the earnest money with her own money. (another broker in the firm must represent her mother, if the seller has consented to dual agency the brokers interest does not need to be disclosed, the broker should provide the seller with a verbal disclosure of her interest in the transaction, the broker should disclose her interest in the b. is created by interactions at the top levels of the two firms involved in a relationship b. b. Solidarity a. the sensitivity of the salesperson in understanding how business conditions affect the industry within which the buying firm operates. A home where a homicide, suicide, or haunting occurred 6. b. Value-added exchange c. Buyers prefer collaborative relationships when the purchase decision is not complex. B) substantial 8) Landlord Frank terminated Jerry's lease because gross sales did not meet expectations. This means that. The home is listed at $210,000.