MTRES - Montana Real Estate Salesperson

Question 21: Several past and present owners share responsibility for a contaminated Livingston site, and under the Superfund law each one can be forced to pay the entire cleanup cost, then seek proportionate reimbursement from the others. This principle is known by which term?

Joint and several liability

Strict liability

Retroactive liability

Contributory liability

Question 22: Under the Superfund law, a landowner is held responsible for cleanup of contamination on the property without any excuse, whether or not that owner caused the release. This no-fault form of responsibility to the injured party is best described by which term?

Joint and several liability

Retroactive liability

Strict liability

Vicarious liability

Question 23: Testing confirms intact asbestos insulation around the ducts of an older home, and the owner learns that fully removing it would be disruptive and costly. Which alternative method seals off the material so that its loose fibers cannot become airborne?

Encapsulation

Landfill capping

Radon mitigation

Friable removal

Question 24: After determining that a hazardous substance has been released at an abandoned industrial parcel, a federal agency identifies responsible parties, orders cleanup, and, if they refuse to pay, may bill them and seek damages in court. Which agency exercises this authority?

The Army Corps of Engineers

The Bureau of Land Management

The Environmental Protection Agency

The Consumer Product Safety Commission

Question 25: An anxious buyer asks whether the federal lead-based paint law forces the seller of an older mountain duplex to test the property and remove any lead paint discovered. How should the agent accurately describe what the federal law actually requires?

Mandatory testing before every sale

Disclosure of known hazards only

Full abatement of all lead

Certified inspection paid by seller

Question 26: A developer reviewing pollution laws before a Billings project wants to know which statute would govern contaminants released from a boiler stack into the outdoor atmosphere, as opposed to effluent piped into a nearby creek. Which law addresses the airborne contaminants?

The Clean Water Act

The Safe Drinking Water Act

The National Environmental Policy Act

The Clean Air Act

Question 27: Before signing a contract to buy a 1955 farmhouse outside Bozeman, a purchaser wants time to have the older home evaluated for lead-based paint hazards. Under federal rules, what opportunity must the seller offer this buyer before the contract becomes binding?

A thirty-day repair guarantee

A lead abatement before closing

A ten-day inspection period

A refund of earnest money

Question 28: A seller of an older Billings home knows the basement floods heavily every spring, a condition that would clearly affect a reasonable buyer's decision. Regarding this known problem, what is the seller's general obligation to prospective buyers under common disclosure law?

Disclose the known material defect

Stay silent unless the buyer asks

Repair it before any showing

Disclose it only after closing

Question 29: A landowner arranging construction financing needs the holder of an existing first lien to agree that its lien will move to a lower priority so a new construction lender can take first position. Which clause BEST allows the existing lender to give up that priority?

The release clause

The subordination clause

The defeasance clause

The acceleration clause

Question 30: At a Butte closing, real estate taxes for the current year have accrued but remain unpaid, and the buyer will pay the full bill later. To handle this accrued item fairly on the closing statement, how should the proration be entered?

Credit the seller, debit the buyer

Debit both buyer and seller

Credit both buyer and seller

Credit the buyer, debit the seller

Question 31: During a refinance in Missoula, a loan officer repeatedly persuades an elderly homeowner to refinance again and again, each time charging fresh fees that strip away her equity while providing her little real benefit. This abusive practice is best described as which of the following?

Prudent portfolio lending

A permissible rate buydown

Predatory loan flipping

A standard loan assumption

Question 32: A lender reviewing a couple's loan application in Butte declines to count the wife's steady salary, assuming she may stop working to raise children someday. This assumption violates a federal law protecting credit applicants. Which law does the lender's conduct breach?

The Truth in Lending Act

The Fair Housing Act

The Community Reinvestment Act

The Equal Credit Opportunity Act

Question 33: A homeowner who is at least sixty-two years old wants to convert part of the built-up equity in the home into cash, receiving payments and owing nothing until the home is sold, vacated, or the borrower dies. Which loan serves this purpose?

A home equity line of credit

A reverse mortgage

A straight loan

A wraparound loan

Question 34: A title company offers a Great Falls real estate agent a cash payment each time the agent steers buyers to order title insurance from that company, with no service performed in return. Under RESPA, this arrangement is prohibited as which of the following?

A kickback for a referral

A permissible finder's arrangement

An earned cooperative commission

A lawful affiliated business arrangement

Question 35: After a buyer submits a completed mortgage application for a Billings condo, the Consumer Financial Protection Bureau's rules require the lender to deliver a standardized form summarizing loan terms and estimated costs within a short, fixed period. Within how long must this Loan Estimate be provided?

Three business days before closing

Fifteen days after application

Thirty days after closing

Three business days after application

Question 36: Most home loans use a payment plan in which each regular monthly payment is applied to both the interest due and the loan principal, so the balance is gradually reduced to zero by the end of the term. Which type of loan is this?

A straight loan

A balloon loan

A fully amortized loan

A growing-equity mortgage

Question 37: A borrower arranges financing in which she pays only interest during the loan term and then repays the entire principal in a single lump sum when the loan matures. Which type of loan is characterized by interest-only payments followed by full principal repayment?

A fully amortized loan

A straight loan

A balloon loan

A growing-equity mortgage

Question 38: A federal law implemented by Regulation Z requires that a lender disclose the true cost of consumer credit, including a single figure that folds in interest plus loan fees, points, and other finance charges so borrowers can compare offers. What is that disclosed figure called?

The annual percentage rate

The nominal interest rate

The discount rate

The debt-to-income ratio

Question 39: Before funding a mortgage on a home near a river in Kalispell, the lender insists the buyer carry a policy covering fire and similar physical damage, and, if the property sits in a designated flood zone, an additional flood policy. Why does the lender impose these requirements?

To satisfy the appraiser

To protect its collateral

To comply with ECOA

To waive the down payment

Question 40: A borrower in a typical transaction obtains a home loan that carries no government insurance and no government guarantee, relying solely on the borrower's own creditworthiness and the property itself as security for the lender. Which type of loan best fits this description?

A conventional loan

An FHA-insured loan

A VA-guaranteed loan

A government loan

MTRES Montana Real Estate Salesperson - Set 5 - Part 2

Question 21: Several past and present owners share responsibility for a contaminated Livingston site, and under the Superfund law each one can be forced to pay the entire cleanup cost, then seek proportionate reimbursement from the others. This principle is known by which term?

Question 22: Under the Superfund law, a landowner is held responsible for cleanup of contamination on the property without any excuse, whether or not that owner caused the release. This no-fault form of responsibility to the injured party is best described by which term?

Question 23: Testing confirms intact asbestos insulation around the ducts of an older home, and the owner learns that fully removing it would be disruptive and costly. Which alternative method seals off the material so that its loose fibers cannot become airborne?

Question 24: After determining that a hazardous substance has been released at an abandoned industrial parcel, a federal agency identifies responsible parties, orders cleanup, and, if they refuse to pay, may bill them and seek damages in court. Which agency exercises this authority?

Question 25: An anxious buyer asks whether the federal lead-based paint law forces the seller of an older mountain duplex to test the property and remove any lead paint discovered. How should the agent accurately describe what the federal law actually requires?

Question 26: A developer reviewing pollution laws before a Billings project wants to know which statute would govern contaminants released from a boiler stack into the outdoor atmosphere, as opposed to effluent piped into a nearby creek. Which law addresses the airborne contaminants?

Question 27: Before signing a contract to buy a 1955 farmhouse outside Bozeman, a purchaser wants time to have the older home evaluated for lead-based paint hazards. Under federal rules, what opportunity must the seller offer this buyer before the contract becomes binding?

Question 28: A seller of an older Billings home knows the basement floods heavily every spring, a condition that would clearly affect a reasonable buyer's decision. Regarding this known problem, what is the seller's general obligation to prospective buyers under common disclosure law?

Question 29: A landowner arranging construction financing needs the holder of an existing first lien to agree that its lien will move to a lower priority so a new construction lender can take first position. Which clause BEST allows the existing lender to give up that priority?

Question 30: At a Butte closing, real estate taxes for the current year have accrued but remain unpaid, and the buyer will pay the full bill later. To handle this accrued item fairly on the closing statement, how should the proration be entered?

Question 31: During a refinance in Missoula, a loan officer repeatedly persuades an elderly homeowner to refinance again and again, each time charging fresh fees that strip away her equity while providing her little real benefit. This abusive practice is best described as which of the following?

Question 32: A lender reviewing a couple's loan application in Butte declines to count the wife's steady salary, assuming she may stop working to raise children someday. This assumption violates a federal law protecting credit applicants. Which law does the lender's conduct breach?

Question 33: A homeowner who is at least sixty-two years old wants to convert part of the built-up equity in the home into cash, receiving payments and owing nothing until the home is sold, vacated, or the borrower dies. Which loan serves this purpose?

Question 34: A title company offers a Great Falls real estate agent a cash payment each time the agent steers buyers to order title insurance from that company, with no service performed in return. Under RESPA, this arrangement is prohibited as which of the following?

Question 36: Most home loans use a payment plan in which each regular monthly payment is applied to both the interest due and the loan principal, so the balance is gradually reduced to zero by the end of the term. Which type of loan is this?

Question 37: A borrower arranges financing in which she pays only interest during the loan term and then repays the entire principal in a single lump sum when the loan matures. Which type of loan is characterized by interest-only payments followed by full principal repayment?

Question 38: A federal law implemented by Regulation Z requires that a lender disclose the true cost of consumer credit, including a single figure that folds in interest plus loan fees, points, and other finance charges so borrowers can compare offers. What is that disclosed figure called?

Question 39: Before funding a mortgage on a home near a river in Kalispell, the lender insists the buyer carry a policy covering fire and similar physical damage, and, if the property sits in a designated flood zone, an additional flood policy. Why does the lender impose these requirements?

Question 40: A borrower in a typical transaction obtains a home loan that carries no government insurance and no government guarantee, relying solely on the borrower's own creditworthiness and the property itself as security for the lender. Which type of loan best fits this description?

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