CRES Connecticut Real Estate Salesperson - Set 4 - Part 1
Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.
Question 1: A lender's newspaper advertisement states only that a home loan is available with a low down payment amount, saying nothing about repayment. Because it names a specific credit term, a federal rule now requires several additional disclosures. Which advertising concept has been triggered?
Question 2: Two loans run for the same years: the first spreads level payments so the balance reaches zero exactly at term's end, while the second sets payments too low to retire the debt, leaving a large sum due at maturity. Which term BEST fits the second loan?
Question 3: A landowner holds a purchase-money mortgage from the seller but now seeks a construction loan, and the new lender insists on first-lien position. A clause in the seller's instrument lets that earlier lien step down so the construction loan comes first. Which clause BEST enables this?
Question 4: A homeowner refinances the mortgage on her primary residence with a brand-new lender rather than her current one, and later learns she may cancel the transaction within three business days after signing, with no penalty. Which federal borrower protection gives her this cancellation window?
Question 5: A title company offers a real estate broker a cash payment for every buyer the broker steers to it, with no service performed in return. A federal statute governing settlement services flatly prohibits this. Which law bars such a kickback?
Question 6: A buyer wants to purchase a run-down Waterbury colonial and fold the cost of major repairs into a single government-insured mortgage, borrowing against the home's expected value once all of the planned improvements are fully completed. Which financing product is designed for this?
Question 7: A builder finances a new colonial with a short-term loan that releases money in stages as each phase of the work is finished and inspected, and the borrower pays interest only on funds actually disbursed. Which type of loan is this?
Question 8: A homeowner keeps her first mortgage untouched but wants a revolving credit account secured by a junior lien on her house, from which she can draw funds as needed and repay repeatedly during a draw period. Which product is she seeking?
Question 9: A seller finances the sale directly, letting the buyer take possession and pay the price in installments over time, yet the seller retains legal title until the very last payment is made, and no outside bank participates. Which financing arrangement does this describe?
Question 10: A borrower takes an adjustable-rate mortgage whose rate periodically resets by adding a fixed percentage set by the lender to a published economic indicator that moves with the market. That fixed add-on the lender keeps constant is known as which of the following?
Question 11: A borrower selects a mortgage whose early payments cover only the accruing interest, so the principal balance does not decline at all during that initial period, and no equity builds through paydown until amortization later begins. Which type of loan is this?
Question 12: A New Britain borrower reads loan terms warning that paying the mortgage off early, whether by refinancing or selling within the first few years, would trigger an extra charge compensating the lender for lost interest. Which loan feature does that describe?
Question 13: A buyer breaches a contract to purchase a Greenwich home, and the seller quickly resells it for less than the contract price. The seller wants to recover only the shortfall in money. Which remedy BEST fits what the seller is actually seeking here?
Question 14: A long-term tenant of a Danbury duplex holds a clause letting her match any bona fide offer the owner is willing to accept before the property can be sold to another buyer. She cannot force a sale herself. This clause is which of the following?
Question 15: A seller in West Hartford receives three offers on the same colonial in one weekend. The listing agent must decide how to present and respond to them. Absent a law or agreement requiring otherwise, who decides how the multiple offers are handled?
Question 16: A developer signs a fifty-year lease for a vacant parcel near Danbury, agreeing to construct and own a commercial building on the land while paying the landowner rent for the ground itself throughout the term. This long-term arrangement is which of the following?
Question 17: A purchase contract for a Stamford condo states that if the buyer defaults, the seller may keep the earnest money deposit as the agreed measure of loss, with no further claim. This pre-agreed sum recoverable on breach is best described as which of the following?
Question 18: A shoe store leasing space in a Hartford shopping center pays a minimum base rent plus an agreed share of its monthly gross sales once sales exceed a set breakpoint. This retail lease tying rent to sales volume is which of the following?
Question 19: Once a purchase agreement is signed for a Milford home, the buyer must tender the agreed funds and the seller must deliver marketable title by closing. These duties each side owes the other under the signed contract are best described as which of the following?
Question 20: A brokerage moves all its paperwork to a paperless platform where clients sign contracts electronically. Under the laws validating electronic transactions, which condition generally must be satisfied before a party is bound by an electronically signed real estate agreement?
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