Maine TRELG Associate Broker Practice Test

These questions are part of the practice quiz. Start practicing

• Redlining is a practice where a lender outlines in red the neighborhoods in which it will not lend money for:
• A voluntary agreement between competent parties that is supported by consideration and creates legally enforceable obligations is called a:
• The Maine Non-resident Withholding tax applies to which of the following?
• An appurtenant easement is one that involves:
• Which scenario describes a material defect?
• When might a title examiner discover forgeries?
• Is it true that the lender can change The Loan Estimate?
• During the golf tournament, discussing a rumor about an appraisal company owner constitutes what type of behavior?
• What role do organisms in a vernal pool play in the forest ecosystem?
• Which type of ownership allows individuals to hold property in shares and have the rights to occupy the property?
• When asked about material defects, how should the agent of the seller respond?
• For a property at 456 Somewhere Avenue, which type of loan is the borrower applying for?
• What determines the effective date of a contract?
• The right of first refusal typically applies to a property that is how?
• Vernal pools are generally found in which of the following environments?
• What is the primary obligation of the seller in an option contract?
• What must a condo meet in order to be purchased with an FHA loan?
• Where can a licensee find information on private land use restrictions?
• What must the government prove to take land by eminent domain?
• True or False: There is imputed knowledge between a transaction broker and a customer.
• What is one of the key responsibilities of a fiduciary agent?
• What term indicates that an obligation must be fulfilled by a specific date?
• All contracts for the sale of real estate must be in writing to comply with what?
• A transaction broker's role can best be described as what?
• True or False: A vernal pool may be dry in the summer.
• Which of the following best describes a 'counteroffer'?
• In property law, what does it mean if a property has a 'dominant tenement'?
• What is the purpose of the Natural Resource Protection Act?
• What is true regarding property tax and insurance escrows for a buyer making a 25% down payment?
• When may the buyer conduct a "walkthrough" of the property?
• What is the status of a roof that leaked once ten years ago?
• Which of the following is a characteristic of a VA loan?
• What is the primary purpose of property assessment?
• When performing a CMA, which statement is true?
• What is the correct classification for wastewater from sinks and washing machines that do not contain fecal matter?
• An FHA loan may be used to purchase which type of property?
• Which statement is true regarding a transaction broker's responsibilities?
• Owners of single-family or multifamily occupancies are required to have a working smoke detector in each area within or giving access to:
• What term describes acts performed by a real estate brokerage agency that are informative or clerical in nature for a person who is not a client?
• What does "capacity" refer to in the context of a loan application?
• What does PMI stand for?
• What must be identified for the title company when a buyer learns about a property in multiple counties?
• What is a Broker Price Opinion (BPO)?
• What is the effect of an offeree accepting only part of an offer?
• Which entity typically has the authority to grant variances related to land use?
• Which scenario represents a material defect?
• What is a possible consequence of not obtaining the necessary permits for property use in the Shoreland Zone?
• Which properties are mandated to have flood insurance?
• What type of property might require an easement for access?
• What is the minimum lot size required in Maine to accommodate a septic system?
• An acceptance entails the offeree accepting what?
• Which program in Maine offers property tax relief to qualified property owners?
• Who is responsible for discrepancies up to 15% for costs of a title attorney hired by the buyer?
• What is the purpose of private mortgage insurance (PMI)?
• What term describes the legal process of terminating a lease before the expiration date?
• Is a seller agent required to seek additional offers while a property is under a contract of sale?
• What is the value placed on a property to estimate how much it is likely to sell for called?
• What value does a lender assign to kitchen appliances in a property sale?
• The essential factor that differentiates a bilateral contract from a unilateral contract is:
• Under what circumstances would a lender most likely require private mortgage insurance (PMI)?
• For what period back in time does a surveyor research a parcel of land?
• True or False: An agreement on all terms except one minor aspect constitutes a binding contract.
• True or False: Vernal pools are important for amphibian reproduction.
• Which loan program might Jason investigate for a no down payment option?
• Which authority must a farmer in Boothbay Harbor get approval from to subdivide his land into five lots?
• An exchange of value or promises in a contract is referred to as what?
• Which element is NOT a fiduciary duty of an agent?
• Which statement is true about lender's title insurance?
• Is it permissible for a landlord to charge a higher security deposit for a family with children?
• What should a seller's agent avoid when discussing property defects?
• What does a boundary survey incorporate that a Mortgage Loan Inspection does not?
• If a borrower makes a down payment of less than 20% of the amount of a conventional loan, the borrower must purchase:
• A listing agent inquires about the buyer's intent to assign the contract. What is the best response from the buyer agent?
• Which of the following is a scenario that qualifies as a material fact?
• Any person acquiring by sale or exchange either a single-family dwelling or multiapartment building shall certify at closing that the dwelling is provided with smoke detectors. The certification must be signed and dated by the:
• What is considered a material fact in real estate?
• True or False: Meeting the seller's asking price guarantees a buyer the ability to purchase the property.
• Is it okay for a landlord to charge a higher security deposit for someone with a dog?
• What personality style does a buyer client who struggles with decision-making and seeks advice on every step of the buying process typically exhibit?
• What type of statute does Maine use to determine ownership of real property?
• When an underwriter assesses a loan application, which factor is considered the most important?
• Is a real estate brokerage agency presumed to be acting as a transaction broker unless a written agreement specifies otherwise?
• What is the significance of recorded documents in real estate?
• Is a boundary survey necessary to show property lines based on original recorded documents?
• What makes a purchase and sale agreement a bilateral contract?
• What does it mean if a property has a 'servient tenement'?
• Which fiduciary duty did Lionel violate by delaying communication of a counteroffer?
• Which of the following best defines a void contract?
• Which of the following would most likely specify the size, species and location for landscaping in a subdivision?
• What is required for an agent to become an appointed agent in Maine?
• A right of first refusal typically applies to property that is?
• If a property extends into two counties, who needs to be informed to facilitate title searches?
• Which type of contract is enforceable in court because it is complete and proper?
• Regarding boundary lines, which statement is true?
• What is the preferred approach for estimating the value of a single family residence?
• Is it true that a brokerage agreement may not be enforced against a client who engages another real estate brokerage agency after the expiration date of the first agreement?
• What is the required down payment for an FHA loan?
• Which event can terminate a listing or sales contract?
• In which situation is an application fee normally collected by the lender?
• True or False: A lender considers personal property valuable in terms of mortgage financing.
• True or False: If the seller has a Homestead Exemption, the buyer will automatically be granted a Homestead Exemption.
• An appraiser uses the cost approach to provide an opinion of value of a public library. What is part of this appraisal?
• What is a key difference between the Gross Rent Multiplier method and the Cap Rate method?
• True or False: A licensee must present the Real Estate Brokerage Relationships Form when listing an 8-unit apartment house.
• Who is most likely to use a Rural Development (RD) loan to purchase property?
• Acceptance in a contract is also referred to as?
• What happens to an offer when it is rejected by a party?
• The highest and best use of a single story ranch house on a busy street in a commercial zone most probably is NOT as a:
• What happens to an offer if it expires without acceptance?
• Must the borrower show proof of homeowner's insurance to the lender?
• Contingencies included in a contract make it:
• What is the process through which a contract is formed?
• Which fiduciary duty of an agent includes responsibility for handling clients' funds accurately?
• Under the principle of vicarious liability, who may a buyer client be legally responsible for?
• True or False: All veterans automatically qualify for a veteran exemption on municipal property taxes.
• What must Maureen do to live in a co-op?
• What does the term "collateral" refer to in the context of a mortgage?
• True or False: The Truth in Lending Act dictates to financial institutions how much interest they may charge a consumer for a loan.
• Which of the following is an action that may be taken for violations of the Fair Housing Act?
• Under what condition can a buyer withdraw from a purchase agreement?
• What personality type might exhibit vague responses like "very nice" when discussing property preferences?
• What kind of defect is associated with an appliance that cannot fully complete its function?
• Which of the following would you classify as less critical than a material defect?
• What is the effect of the buyer agent specifying that personal property is included "as viewed"?
• Which statement about land surveyors in Maine is true?
• Which of the following activities may a transaction broker NOT conduct for any party's benefit?
• What is Jason's debt to income ratio if his total monthly debt payments are $2080 and his monthly income is $6500?
• What is a potential downside of a rate lock for the borrower?
• Which of the following is an example of anti-trust behavior?
• One characteristic of a coop form of ownership is that:
• Who is a licensee's primary duty owed to when they have an agent relationship with a client?
• What is the minimum contiguous acreage required for farmland eligibility for registration?
• Which of the following describes a fiduciary relationship in real estate?
• What does a missing ground fault receptacle in a bathroom demonstrate?
• What is typically provided to inform about known property defects?
• Where is a licensee most likely to obtain zoning information about a property in Lewiston?
• Which of the following is the best example of a loan that is subordinate to a first mortgage?
• What type of loan may allow eligible down payments from family gifts?
• True or False: The lender must wait until the borrower expresses intent to proceed before requiring an application fee.
• Why is it important for agents to disclose property defects?
• Which characteristic may indicate a 'C' personality in a buyer client?
• Which document is often essential when applying for a mortgage?
• What is the basis of antitrust laws in relation to consumer benefit?
• Which of the following habitats is NOT typically recognized as significant wildlife habitat?
• Which of the following scenarios would be categorized as a material defect?
• Which insurance is the lender required to have the borrower purchase?
• Which organization oversees the protection of significant wildlife habitats in Maine?
• What information regarding a death in a house should be disclosed?
• Which of the following is generally considered a clerical task in real estate?
• What must a transaction broker disclose to all parties in a real estate transaction?
• What communication style is best for a client who has an 'I' personality and seeks reassurance in the buying process?
• True or False: The Real Estate Brokerage Relationships Form must be provided for all real estate transactions.
• Which personality type is likely to need confirmation and structured communication about the home buying process?
• An express contract can be formed in which manner?
• What is the name for the water that is disposed of from a washing machine draining to the outdoors?
• If Douglas owns a property in a flood zone and has no mortgage, what is true?
• When must an agency receive written consent for disclosed dual agency?
• According to the Maine Real Estate Commission, which signature is required on the Property Disclosure form?
• In Maine, what happens to the confidentiality of client information once the agency relationship ends?
• Joseph's right to cross Mary's land to reach his property is an example of what?
• The consequence of a contract having contingencies is that it is:
• What is the primary purpose of the Maine Real Estate Commission?
• What is the purpose of stating personal property as viewed on a specific date in a sale?
• The term 'rescission' in contract law refers to?
• Which of the following describes a condition that could be a safety risk?
• What must a borrower provide to demonstrate their ability to secure a loan?
• What is the primary purpose of an escrow or impound account?
• Which of the following statements about reverse mortgages is true?
• Is it necessary to include the full legal names of the parties in the Purchase and Sale Agreement for lender efficiency?
• What does a noticeable crack in a foundation typically indicate?
• A seller wants to take a weathervane installed on the top of the garage with him after the closing. Where must this be noted?
• Which of the following enforces requirements for places of public accommodation (such as a real estate office)?
• True or False: A Maine real estate licensee must present the Real Estate Brokerage Relationships Form when discussing market conditions with a neighbor.
• If a buyer client shows indecisiveness and agrees with suggestions but seems unsatisfied, what style might they be exhibiting?
• Is it an example of anti-trust behavior for designated brokers from different agencies to participate together in a golf tournament?
• The cost approach would most likely be used by an appraiser to estimate the value of a:
• Does Jason's financial profile qualify for the FHA maximum back end ratio of around 41%?
• Marianne's request for no showings on Sundays is an example of which fiduciary duty?
• What must Robert obtain to convert his seasonal property in the Shoreland Zone to year-round use?
• At which location is a deed typically recorded?
• Under the Natural Resources Protection Act, what type of wildlife habitat is protected on approximately 230 Maine islands?
• In real estate, the term "eminent domain" refers to:
• If your client has an 'S' personality, which statement would best prepare them before viewing houses?
• A boundary survey looks back to what point in time?
• What could prevent Jenna from having a home business despite local zoning allowing it?
• When does an agency relationship with a buyer officially begin in Maine?
• The purpose for which a contract is made must be described as:
• What is one responsibility of a buyer agent when asked about contract assignments?
• What term describes the property owned by Milly from which Mike benefits by crossing to reach the beach?
• When discussing commission charges after a golf tournament, is this considered anti-trust behavior?
• Eileen discovered mold after tearing down a wall; which statement about this is true?
• For which period will property tax proration be credited to a seller if they paid taxes from January 1 to June 30?
• Which of the following may be more restrictive than municipal zoning?
• Which is the best place to verify if a property is receiving a property tax exemption?
• In a bilateral contract, what is exchanged between the parties?
• When hearing about a ghost in the house, this would be classified as?
• Who is qualified to determine and document the existence of a vernal pool?
• Which is not a responsibility of a transaction broker?
• If a child is found poisoned in a rental, Maine law requires testing of the unit and expensive abatement if the unit is determined to have:
• What is one of the key duties a licensee has towards their client?
• What is the function of a title insurance policy?
• When must property disclosures be provided to a buyer in Maine?
• A title search goes back at least 40 years and rests on a:
• Which example illustrates functional obsolescence?
• For a buyer who is very enthusiastic yet somewhat of a perfectionist, what is the best way to communicate about finding the perfect home?
• What is a characteristic of a unilateral contract?
• What is the implication if a real estate agent acts against the interests of their client?
• What must a buyer agent do if they receive a lower offer from the seller's agent?
• What type of insurance protects a lender against claims on the title going back to the time of the sale?
• During a title search, what can the title examiner typically discover?
• A legal document authorizing someone else to represent you is called a:
• When is it necessary to disclose information about properties in different counties?
• What type of fact is indicated when a recent death occurred in the home?
• Which statement is true about the fiduciary duty of confidentiality?
• What must each real estate brokerage in Maine have according to licensing law?
• Which piece of information is typically found on a recorded deed?
• Is flood insurance mandatory for properties in a flood zone financed by federally backed loans?
• Which of the following does an enhanced title insurance policy cover?
• Which document typically includes details of all contract terms agreed upon by a seller and buyer?
• For which of the following transactions does RESPA (Real Estate Settlement Procedures Act) NOT apply?
• The seller's urgency to sell due to a prison sentence is considered what type of fact?
• The underwriter's review process primarily evaluates which aspect of the applicant's history?
• Which scenario is NOT considered a material defect?
• A title search looks back at least how many years?
• Liquidated damages in a contract are typically represented by which of the following?
• Which scenario illustrates a violation of the fiduciary duty of disclosure?
• Which of the following is not typically a factor in determining borrower approval?
• When is a boundary survey most critical for property owners?
• Which party is insured by lender's title insurance?
• If a prospective buyer at an open house is already represented by another licensee, what can the hosting licensee do?
• Which statement best defines APR?
• Which of the following is NOT a characteristic of an express contract?
• In a disclosed dual agency, what type of knowledge do clients and the brokerage agency possess?
• Which of the following indicates a material fact regarding seller circumstances?
• Internal Revenue Code section 1031 exchanges are used by real estate investors to:
• Who typically benefits from lender's title insurance?
• If a title defect is found just before closing, how long does the seller have to correct it?
• If Jason wants to use a gift from his parents as a down payment on an FHA loan, what is a condition that must be met?
• For a contract to be considered legal, the purpose must be:
• What personality type best describes someone who takes detailed notes while property showing?
• In real estate transactions, who typically pays for title insurance?
• True or False: There may be many addendums and side agreements to this Purchase and Sale Agreement.
• What does it mean when an underwriter places an application in "suspended" status?
• Which of the following is typically required by lenders as a condition of the loan?
• What condition commonly applies to properties in flood zones?
• Which of the following is considered a significant wildlife habitat?
• When is a buyer legally bound to purchase a property?
• What is one of the "current use" programs in Maine that offers property owners a reduction in assessed value?
• Which of the following is most likely to be part of a zoning ordinance enforced by a municipality?
• What is the responsibility for discrepancies in charges to record documents over 10% between the Loan Estimate and Closing Disclosure?
• True or False: An appointed agent may disclose confidential client information to seek advice for the client's benefit.
• Is it true that a buyer agent is obligated to discover latent defects of the property?
• Which party must maintain property insurance until the closing?
• If a buyer neglects to acquire a property insurance binder before closing, what typically happens?
• A farmland owner can prohibit incompatible use within how many feet of registered farmland after July 1, 2012?
• What is a primary characteristic of a condominium?
• Which buyer style is characterized by a desire for efficiency, asking to see more properties in the same timeframe?
• Which entity is NOT typically involved in zoning approvals for land division?
• What is an important approach to take with clients who exhibit perfectionistic tendencies?
• Which structures are governed by the Natural Resource Protection Act?
• When can an offeror revoke their offer?
• What term describes knowledge attributed to a party based on their relationship with another party?
• What condition must be met for the seller’s representatives during the sale process?
• A licensee purchasing real estate listed by their own agency must disclose their status in which document?