RIRES - Rhode Island Real Estate Salesperson

Question 21: An inspector finds intact asbestos insulation in a home and notes that sealing it off, rather than removing it, may be preferable in certain circumstances if its condition is monitored over time. Which method of asbestos control does this describe?

Encapsulation

Abatement

Remediation by removal

Mitigation

Question 22: A cautious buyer eyeing an older Cranston property wants to learn whether contaminated hazardous waste sites sit nearby before making an offer. Which federal agency maintains the publicly searchable list of Superfund sites that a licensee could reasonably suggest consulting?

The local zoning board

The county recorder of deeds

The Environmental Protection Agency

The state banking department

Question 23: A property manager is preparing a new residential lease for a downtown Providence apartment located in a building that was constructed back in the 1950s. Regarding lead-based paint, which action does federal law specifically require before this particular lease takes effect?

Disclose known lead information

Provide a ten-day inspection window

Abate any peeling paint

Install lead water filters

Question 24: A Warwick seller asks whether the federal lead-based paint law obligates them to hire a laboratory and actually test their pre-1978 home for lead before listing it. Which statement most accurately describes what the federal regulation actually requires of this seller?

Test every painted surface first

Remove all lead-based paint

Disclose known hazards, not test

Hire a certified abatement firm

Question 25: Two landmark federal statutes protect different environmental media: one restricts emissions of pollutants into the atmosphere, while the other restricts the discharge of pollutants into the nation's rivers, lakes, and coastal bays. Which pairing correctly matches each concern to its governing law?

Clean Water Act, then Clean Air Act

Clean Air Act, then Clean Water Act

Both under the Clean Air Act

Both under the Clean Water Act

Question 26: A couple purchasing a 1940s home in Newport wants time to hire someone to test for lead-based paint hazards before they are bound. Under the federal rule, what period must the seller allow for this assessment absent a different written agreement?

Three business days

Thirty days

Seventy-two hours

Ten days

Question 27: A buyer is looking at a waterfront home in Newport situated on low-lying land that maps identify as an area subject to inundation during heavy storms. The designation identifying land at elevated risk of flooding is best known by which term?

Brownfield

Water table

Flood zone

Superfund site

Question 28: The seller of an older Cranston home knows the basement floods heavily during spring storms, a condition a buyer could not easily observe on a dry-day showing. Regarding this known problem, what is the seller's basic legal obligation to buyers?

Disclose the known material defect

Repair it before any sale

Keep silent unless directly asked

Lower the price accordingly

Question 29: At a Newport settlement, real estate taxes are paid in arrears and remain unpaid for the seller's months of ownership; the buyer will pay the full bill later. On the closing statement, how are these accrued taxes best handled between the parties?

Credit the seller, debit the buyer

Credit the buyer, debit the seller

Debit both parties equally

No proration is required

Question 30: A Providence owner refinances the mortgage on her primary residence and later signs a home equity line on the same home. A neighbor buying a first home wonders why he received no cancellation window. Under Regulation Z, which transactions carry the three-business-day right of rescission?

Purchase-money first mortgages

All owner-occupied residential loans

Only commercial property loans

Refinances and home equity loans

Question 31: A lender and borrower dispute who may take immediate possession and collect rents after a default, without first completing a court proceeding. The state treats the mortgage as conveying legal title to the lender. Which statement BEST explains the lender's position?

A lien requires judicial foreclosure first

The borrower keeps legal title

Holding title allows immediate possession

Possession waits for statutory redemption

Question 32: A lender wants to stop a future buyer of the property from taking over an existing low-rate loan, reserving the right to demand payment of the full balance whenever the borrower sells or transfers the property. Which clause accomplishes this goal?

The acceleration clause

The prepayment clause

The release clause

The alienation clause

Question 33: In a Cranston transaction the buyer and seller never sit at the same table; instead a disinterested third party holds the deed, funds, and instructions, then disburses money and records documents once every condition is satisfied. What is this closing method called?

A face-to-face closing

Closing in escrow

A title bring-down search

A mortgage servicing transfer

Question 34: When a borrower defaults, a clause in the mortgage lets the lender declare the entire remaining principal balance immediately due and payable at once, sparing the lender from having to sue separately over each missed installment. Which clause grants this power?

The acceleration clause

The alienation clause

The defeasance clause

The subordination clause

Question 35: A Rhode Island homeowner aged sixty-two or older wants to convert built-up equity into income, receiving payments from a lender while remaining in the home, with nothing due until she sells, moves out, or dies. Which loan product serves this purpose?

A home equity line of credit

A wraparound mortgage

A growing-equity mortgage

A reverse mortgage

Question 36: A title company offers a Warwick sales associate a cash payment for every buyer she steers to it, with no actual service performed in exchange for the money. A federal settlement law flatly prohibits such payments. Which prohibited practice does this arrangement represent?

A permitted finder's commission

An affiliated business arrangement

An illegal kickback for referrals

A lawful cooperative fee split

Question 37: A borrower's home loan calls for periodic payments of interest only throughout the term, with the entire principal balance falling due in a single lump sum at the very end. By what name is this type of loan commonly known?

A fully amortized loan

A straight loan

A growing-equity mortgage

A blanket loan

Question 38: A borrower makes a twenty percent down payment and receives a mortgage that carries no government insurance and no government guarantee, relying instead on the borrower's creditworthiness and the property's value. Which type of loan best fits this description?

A conventional loan

An FHA-insured loan

A VA-guaranteed loan

A wraparound loan

Question 39: Before funding a purchase near the Woonsocket riverfront, the lender insists the buyer provide a fire and hazard policy and, because the home sits in a designated special flood hazard area, additional coverage. Why does the lender require these insurance policies at closing?

To satisfy fair-housing disclosure rules

To protect the collateral securing repayment

To comply with rescission notices

To meet appraisal accuracy standards

Question 40: A lender that has already funded many home loans sells blocks of them to a national agency, which pools the loans and sells securities to investors, freeing the lender's capital to make additional loans. Which market is this activity part of?

The secondary mortgage market

The primary mortgage market

The Federal Reserve System

The construction loan market

RIRES Rhode Island Real Estate Salesperson - Set 5 - Part 2