c) will be a debit to the seller. a) The lender calculates what the buyer owes and then tells the sellers what they will receive. Its important that sellers realize that a counteroffer is actually a rejection of the original offer, and by submitting one, they are giving the buyers an easy out if they want one. Set up a face-to-face meeting with the sellers as soon as possible. LO: 6.1: In what ways can a company divide a consumer or business market into segments? Customers prefer a collaborative relationship when there is a competitive supply environment featuring many alternatives. B) segment identification #6. d. all of the above For example, ________ can show the firm which brands are most competitive with its own. d. The supply of goods is bought by the buyers with the highest willingness to pay ANS 2. d) The contract will be valid after a five-day waiting period. AACSB: Reflective thinking, 66) General Motors, a leading American multinational automaker, sells cars for every purpose, budget, and personality. Customers prefer a transactional orientation when there are few alternative offerings from suppliers. Resources are allocated to their most efficient uses. The seller disagrees, crosses out the points clause, then signs and returns the document to the buyer. LO: 6.2: How should a company choose the most attractive target markets? d) allowance contract. Sam Seller lists his property with EX Realty. Price discrimination is indistinguishable from dumping. #7. a) Swing Loan b) Wraparound Loan c) Pillow Loan d) Ancillary Loan. d) closing insurance. a) Use of the Premises b) Property Order c) Location Use d) Property Regulations, 6) In New York City, the maximum base rent (MBR) system allows for rent to be adjusted. a. B) flexible market Meet with the buyers lender to ensure theyre getting a good deal. A. listing agent = duty to disclose listing 411 sheet that fences were not permitted. c) is subordinate to a first mortgage. c) Brokers may not complete leases to which they are not a party. 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 ________. B) purchasing approaches Brainscape helps you realize your greatest personal and professional ambitions through strong habits and hyper-efficient studying. Which of the following statements about collaborative relationships is(are) true? Anti-trust laws prohibit all of the following, EXCEPT: A. property management companies all agreeing to charge standardized management fees, B. three different brokerage firms allocating markets based on the value of homes, C. real estate companies agreeing not to cooperate with a broker because of the fees that broker charges, D. a broker requiring all the agents of his firm to join the local listing service, a broker requiring all the agents of his firm to join the local listing service. e. Only (a) and (b). Trust and relationship commitment b) The bundle of rights linked to the recorded title to a parcel. 9) Sellers Glen and Jill are closing on their home sale next week. AACSB: Analytical thinking, 52) If married and unmarried women respond similarly to a sale on perfume, these hypothetical segments fail the ________ criterion for useful market segments. 5) Which statement is true about accepting referral fees? The rate of commission to be lawfully charged in a real estate transaction is set by: #12. a) a felony. a) Assignment of a Contract_ b) Operation of Law c) Transfer Clause d) Execute Clause. D) It is a low-cost strategy. If a seller signs a sales contract and dies before the closing of the property, the sales contract is terminated. e. interfirm cooperation. d) provide a fixed interest rate for the life of the loan. a. invest resources to build operational linkages and information-sharing mechanisms for the relationship. This is called by what name? Business marketers track customer loyalty and retention because: Jerry agreed to what type of lease? Which of the following would likely NOT constitute a violation of the Sherman Antitrust Act? Eventually Sam convinces a co-worker, Wanda Wish, to purchase his home. What type of contract does Bill hold? a) Construction b) Wraparound c) Open-end d) Bridge. b) In a sublease, the original tenant retains primary responsibility for performance of the original lease contract. 3) Recording the deed is done through which of these? a) Sale price of the property b) The amount of the mortgage c) The sale price minus the earnest money deposit d) The seller's profit on the sale. 6) Mark earns $185,000 a year and he pays $2,200 per month for a rent-stabilized apartment. a) Allowance Clause b) Passage Clause c) Demise Clause d) Demising Clause. Which statement is true about prospecting for buyers? Which part contains the product and service elements that all segment members value? LO: 6.1: In what ways can a company divide a consumer or business market into segments? a) Right of Redemption b) Right to Rescind c) Right to Deed Access d) Right of Remainder. This means that. If a seller changes the terms of the offer to purchase, he has created a counteroffer. B) discretionary solution B) influencer D) examining the demographics section of the handbook of marketing E) gatekeeper, Answer: A b. The buyers' family is pressuring them to purchase this home. A buyer representation agreement is employed contract between a buyer and a broker .it is a single agency agreement in which the broker agrees to represent a buyer in purchasing property Click the card to flip 1 / 44 Flashcards Learn Test Match Created by gowergurl Terms in this set (44) By entering into an exclusive agency listing agreement with a seller, a real estate brokerage firm: A. is not entitled to receive a commission if another agency finds a buyer for the property, B. has become the seller's designated agent, C. has become the exclusive agent of the seller, but is not entitled to receive a commission if the seller finds a buyer for the property, D. has agreed to renegotiate the commission with the seller should another agency offer a lower commission rate, has become the exclusive agent of the seller, but is not entitled to receive a commission if the seller finds a buyer for the property. C) segment attractiveness b) after 5 years of loan payments. b. distant a) Estate for years b) Estate at will c) Estate from period to period d) Estate at sufferance. 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". 7) A buyer submits an offer to a seller. 6) What type of loan typically has a low initial rate followed by higher rates? What is this law called? C. All residential sellers are exempt from this act unless a broker is not involved in the transaction. B) situational factors D) segment "acid test" a) 2 percent of the loan amount. d. intend to move each partner toward the attainment of some long-term strategic goal. b) Norm can complete the lease agreements as long as he has a lawyer co-sign them. 1) In the event of default by the purchaser, the lender has the right to bring legal action through the courts to satisfy the debt. These would be examples of what is called ________. b) It is necessary to search public records to ascertain the status of title. a) This action is perfectly legal in New York. E) differentiated, Answer: B c) It is not voidable. If firms offer differentiated products, thenbuyers have increased power.B. c. transactional B) conducting VALS tests a. a collaborative advantage. c) the mortgage itself provides the only security for the loan. 8) A lease automatically terminates under which of the following circumstances? c) implied contract. 3) Which of the following locations is the least likely place to hold a closing? A) hard-core loyals b. solidarity. c) A chronology of successive owners of record of a parcel of real estate. d) accrued expenses. a) The tenant fails to pay rent. 1) Proof of ownership of a property is called what? ), a) The seller's share of $2,533.38 b) The buyer's share of $666.62 c) The seller's share of $2,525.76 d) The buyer's share of $674.24. 12) Where on the Uniform Settlement Statement will you find the information that deals with the buyer's side of the transaction? AACSB: Analytical thinking; Application of knowledge, 14) A company can learn a great deal by analyzing the degrees of brand loyalty. Ricardo had a duty to determine if fences were permitted even though the listing information sheet did not indicate anything regarding fences. c) A certificate issued by the property owner that indicates that the building is in proper condition to be occupied. E) actionable, Answer: B C. The same amount will go towards the principal every month. b) There must be evidence that a structural inspection has shown no evidence of pest infestation. a) Map coordinates b) Deed map c) Street address d) Survey map. c. always-a-share customers. a) The contract must be rewritten and signed again. 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. Why is it important to talk to the sellers about the buyers? d) no money down. a) To protect lawyers who are sued by clients b) To compel real estate companies to use standard forms c) To reimburse clients for money that was misused by their attorney d) To prevent licensees from preparing real estate contracts. All of the following will automatically terminate a residential agreement EXCEPT: C. death of the listing broker who works at a large residential firm with many agents, death of the listing broker who works at a large residential firm with many anents. LO: 6.3: What are the different levels of market segmentation? Calculate the test statistic and ppp-value for each sample. \text { Tsunami Corp. } & 1,250 & 31,250 & 35,000 \\ c) The escrow agent will subtract the seller_s total debits from the total credits and arrive at what the seller will receive at closing. 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. D. Since buyer didn't have agent, it's his responsibility to check about fences. c) The landlord leases the ground floor of the building to a commercial tenant. A) Step 2-segment identification d) The real estate must be appraised by an approved FHA appraiser. E) full market coverage, Answer: A b) The first seller may sue the buyer for specific performance. e. both (c) and (d), Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Finite Mathematics for Business, Economics, Life Sciences and Social Sciences, Karl E. Byleen, Michael R. Ziegler, Raymond A. Barnett, Morality and Justice Exam Review Guide Cards. a) deliver the title. What approach can their agent take to change the sellers perception of the offer? d. satisfaction with the salesperson. c. Achieving customer retention. AACSB: Analytical thinking, 17) In segmenting its markets, an aluminum company first looked at which end-use market to serve: automobile, residential, or beverage containers. 8) Conventional loans are typically uninsured. AACSB: Reflective thinking. a) Margin b) Index c) Payment cap d) Rate cap. Effective machine life is only determined by the durability of the machine. Once there is a valid and enforceable sales contract, death of the parties does not end that agreement. The sellers make no warranties for the property but must answer truthfully if asked about defects. c. focus primary attention on the purchasing staff. The history of the listing activities, information about the buyers and then the offer itself. d) Amanda has done nothing wrong. What must be enforced for this contract to be binding? d) pay the purchase price for the property. 9) Which of the following is a good example of a unilateral contract? ________2. A potential buyer can make an issue a material fact by asking about or expressing their intentions. If the buyer rejects the first counteroffer, the seller can accept the first offer. Part I: True or False Item Write "True" if the statement is correct and "False" if it is incorrect in the space provided (1 pt. A. a) If neither party agrees to the terms. Diff: 1 If a seller dies after signing a listing agreement, the listing agreement is terminated. They were counting on a full-price offer and are very disappointed. Paul is most likely holding what kind of loan? 2) Establishing and communicating the distinctive benefit(s) of the company's market offering for each target segment is called ________. b) will be a credit to the buyer. D) buyer A) single-segment concentration Which of the following statements is TRUE? d. A strategic alliance. Which of the following is not true regarding organizational buyers? Diff: 2 (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 E) Step 7-marketing-mix strategy, Answer: D 8) Issues that are not covered in the purchase and sale agreement itself are usually dealt with. c. Total cost of ownership LO: 6.1: In what ways can a company divide a consumer or business market into segments? b. By targeting mothers-to-be as future heavy users, producers of these products and services are segmenting consumers on the basis of ________. a) Title company b) Attorney's office c) Lender's site d) Broker's office, a) Second mortgage on a condominium b) Seller-financed loan c) Hotel mortgage d) Loan assumption, 5) Most lenders require buyers to purchase. Notification is the delivery of a signed copy of the acceptance to the offeror. d) it may also restrict some uses. Browse over 1 million classes created by top students, professors, publishers, and experts. a) Credit report b) Homeowner's insurance premium c) Earnest money deposit d) Home inspection. b. personal property. B. 15) The loan origination fee on a VA loan cannot exceed. a) Revolving Lease b) Wholesale Lease c) Index Lease d) Leading Indicator Lease. c) when the loan-to-value ratio reaches 78 percent. Buyer purchases the house and later learns that he cannot erect a fence. What type of lease does Jim have? c. Relationship commitment b) Private mortgage insurance is available for FHA loans. D) user status b. directly assist customers with planning and strategy development. c) The Torrens title record is the title itself. _____ illuminates exactly what activities are associated with serving a particular customer and how these activities are linked to revenues and the consumption of resources. a) Seller b) Lender representative c) Buyer d) Closing agent. Having strong relationships with customers can be hard for competitors to understand or duplicate. d. commission. 4) In which contract provision would the length of the lease be outlined? 4) How is the interest on a ARM loan determined? 6) A homeowner's insurance policy typically covers all but which of these? C) personal characteristics 5) When the Modern Museum of Art separated its consumers by whether they were culture-oriented or outdoor-oriented for its new exhibit on art that used natural materials, they were using ________ segmentation. Answer: B 3) Which statement best defines the concept of "quiet enjoyment? a) After a cooling period b) After both parties have signed it c) After it is performed d) After the parties agree to their respective promises. A) naked solution D) personal characteristics 1) Which of the following statements about market segmentation is TRUE? 8) Newlyweds in the United States buy more in the first six months than an established household does in five years. c) They are always a debit to one party and a credit to the other party for the same amount. d) The broker must complete a rider. a) Expense b) Credit c) Debit d) Proration. What actions can the sellers take regarding the purchase offer? c) They are always a debit to one party and a credit to the other party for the same amount. a) The lender makes payments to the borrower. AACSB: Reflective thinking, 45) If an organization's marketing department wants to create "segment storyboards" to test the attractiveness of each segment's positioning strategy, it would most likely occur in the ________ step of the segmentation process. b) a class 3 felony. Given the following selected account balances of Delray Mfg., prepare an income statement for Delray Mfg. Answer: A Discuss the accuracy of this statement. Which statement is TRUE? b) periodic estates. E) segment "acid-test", Answer: D LO: 6.1: In what ways can a company divide a consumer or business market into segments? AACSB: Analytical thinking; Application of knowledge, 13) Mothers-to-be are potential users who will turn into heavy users of infant products and services. The buyers family is pressuring them to purchase this home. LO: 6.1: In what ways can a company divide a consumer or business market into segments? #12. a) Sara cannot legally fill out this contract. c. The supply of goods is sold by the sellers with the lowest costs. A buyer with a 640 credit score and an 80% loan-to-value ratio will have a fee of 2.25%, while a buyer with a 740 score will have a fee of 0.875%. B) segment identification e. none of the above, From the customer's perspective, relationship quality centers on: c) the mortgage itself provides the only security for the loan. E) segment identification, Answer: E A purchase offer is a binding contract between the buyer, the seller and their agents. The agent can tell Ben and Blanche that the $200,000 offer represents 96% of their asking price. c. a) It's an accepted offer; therefore a valid contract. a) Proceeds from tax exempt mortgage revenue bonds. e. (a) and (b) only, For transactional customers, the business marketer should: d. All of the above. d) Tim and Laura have not acted in good faith; so they cannot get their earnest money back. B. Ricardo = duty to determine if fences were permitted even if listing 411 sheet did not indicate anything regarding fences. a) A borrower can reduce monthly interest rate payments over the life of the loan by getting private mortgage insurance. 4) The Statute of Limitations requires that parties to a contract who have been damaged or who question the contract's provisions do what? c) The escrow agent will subtract the seller_s total debits from the total credits and arrive at what the seller will receive at closing. 1) Prospecting for buyers is easier than prospecting for sellers. Which statement is TRUE in a market with a price ceiling? He does not have to pay off his existing mortgage in order to qualify. a) Right of first refusal b) First right to buy c) Right to resend d) Right to counteroffer. #1. c) The maximum purchase price of the property cannot exceed $250,000. Diff: 2 d. Buying centers. operations. A. it must contain a nondiscriminatory clause, B. it may be oral up to presentation of the first offer, C. it requires the seller to sell if a full price offer is made by a buyer, D. it can contain an automatic renewal clause if both parties agree to it in writing, it must contain a nondiscriminatory clause. a) Marketable title b) Abstract of title c) Evidence of title d) Title commitment. Earnest money must be deposited no later than 3 banking days. d. all of the above a) Wraparound Loan b) Bridge Loan c) Swing Loan d) Ancillary Loan. c. liquidated damages. a) The potential buyer, the optionee, is obligated to buy the property once the option agreement is completed. a. c. are one-time exchanges of value between two parties with no prior or subsequent interaction. 5) What is the purpose of the Statute of Frauds? Which of the following performance attributes has research recently shown influences customer satisfaction of business buyers? 3) How might a voidable contract become valid? Death of the party to an agreement ends an employment contract such as a listing or buyer broker agreement. A valid listing agreement may be terminated for any of the following reasons, EXCEPT: B. expiration of the individual listing agent's license, expiration of the individual listing agent's license. B) demographic b) voidable and illegal contract. d) void. A. The home is listed at $210,000. b) The apartment can be converted to a rent-controlled apartment. Diff: 2 8) Which of the following is not an item that a seller usually pays at closing? a) The landlord sells the ground to another, then leases it back. E) micro, Answer: B d) require higher down payments than government-backed loans require. d. Neither (a) nor (b) is true. a) A certificate issued by a local building department that indicates that the building is in proper condition to be occupied. The listing agreement must be in writing at the time of the listing and the buyer brokerage agreement must be in writing prior to the submission of the buyer's offer. 6) Which of the following contracts must be in writing to be enforceable? a) Percentage b) Net c) Provisional d) Graduated. A. D) pseudo solution b) states that the contract is subject to the approval of each of the client_s attorneys. Diff: 3 b) He has given notice. E) short-term segmentation, Answer: A a) Fixed Rate Loans b) Bump Loans c) Adjustable Rate Loans d) Retracted Loans. LO: 6.2: How should a company choose the most attractive target markets? How would Grant_s lease at this time be classified? 6) In which contract section might you the property address? a) Good Faith Estimate b) Truth-in-Lending Statement c) HUD-1 Form d) Mortgage Loan Disclosure Statement. c) every seven years. They do not limit the ability of a firm from setting company policies as to fees, rates or geographical areas. They can accept it outright, reject it totally, or submit a counteroffer. a. the cost of new customers is often far less than long-standing customers. However, the client and the firm can agree to extend the listing period by mutual agreement and a properly executed addendum. LO: 6.1: In what ways can a company divide a consumer or business market into segments? C) loyalty status This is an example of a. a) legal and binding contract. _____ exists when one party has confidence in a partner's reliability and integrity. 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 . e. Only (a) and (b). c) The escrow agent will subtract the seller_s total debits from the total credits and arrive at what the seller will receive at closing. c) a misdemeanor. b) the First National Bank. 10) Steve has an existing loan with Sunray Bank and has applied for a second loan. d. all of the above #8. At this point, assuming all other contract validity items are in order, what is the status of the offer? E) antiloyals, Answer: B Which of the following is true regarding the Residential Property and Owner's Association Disclosure Statement? a) Receipt b) Contract for sale c) Agreement d) Purchase offer. a) The lender calculates what the buyer owes and then tells the sellers what they will receive. d. Operational linkages and relationship connectors. a) One calendar week b) One business day c) Two calendar days d) One business week. Be sure all requested inspections have been ordered. 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. a) Hold Over Mortgage b) Advanced Mortgage c) Principal Mortgage d) Purchase Money Mortgage. d) A sublease conveys the entire leasehold interest. Diff: 1 c. Transactional customers display less loyalty to a particular supplier and can easily switch part or all of their purchases from one vendor to another. Present the $208,000 offer and the $200,000 offer together at the same presentation meeting. Which of the following statements is(are) true? B) not required to disclose the information because the seller might reject the offer. 4) A contract that conveys an interest in real estate must. Diff: 2 b) credits to the seller. d) a document that conveys legal title. d. all of the above c) It's still an offer. 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. d. All of the above. a. close B) Step 3-segment attractiveness d) It is permissible in amounts under $50. (a manufacturer). When a business marketer demonstrates special skills in managing relationships with key customers or by developing innovative strategies with alliance partners, they are trying to create: C) operating variables The $20,000 is what type of mortgage? c. marketing plan According to the North Carolina Real Estate Commission, who is held responsible for this nondisclosure? b) This mortgage type is popular among the elderly. Which statement is true? a. do not involve the exchange of money. d. a transactional exchange. #1. d. the lost-for-good customer. 68) Volkswagen concentrates on the small-car market and Porsche on the sports car market. c) have more paperwork than government-backed loans. C) segment attractiveness Which of the following statements about selling a home as-is in North Carolina is true? A counteroffer can give the buyers an out if they want one. 8) PMI loans made after July 1999 require that the loan must be released. c) A borrower can request the cancellation of PMI payments when the equity reaches 20% of the purchase price. a) The meeting of the minds b) The actual contract form c) The written contract words d) The public notice of the offer, 2) Neighbor Sam told seller Jake that he would buy 2 adjoining acres if Jake ever decides to sell. The buyers are interested in another property. d. Collaborative exchanges. Diff: 2 b) Preservation and Maintenance of Property. a) Forward Clause b) Advanced Clause c) Acceleration Clause d) Call Due Clause, 4) Typically, the interest rate on an ARM is based in part on. C) A segment is attractive when there are actual or potential substitutes for the product.