Study sets, textbooks, questions
Upgrade to remove ads
Sales agent course
Terms in this set (74)
The portable basketball hoop in the driveway is personal property.
2. A metes and bounds description of real property relies on:
A metes and bounds description of real property relies on a point of beginning, measurement of distances, and directions on a compass.
What does fee simple ownership describe
A life estate interest describes
Life estate tenant
The "rights" of a life estate tenant expire unpon that specifically named persons death or departure from the property. They are, in effect, a "tenant" and while alive they may do nothing to degrade the property's value. If they "quit" the property and cease to reside there the property reverts in full to the owner. A person with a "life estate" in a property will/must be specifically named in the legal documetns and this designation does NOT extend to that persons family or relatives.
The bundle of rights for an ownership of fee simple absolute
The right to lease the mineral rights. The right to encumber the property with easement in gross. And the right to sell the air rights
An easement in gross is extinguished...
When the party that benefits does.
An appurtenant easement is extinguished when...
The dominant and servient tenant merge
When someone adds to a property such as a fence that becomes part of real property
When real property is turned into personal property such as a tree becoming firewood
What are legal tests to determine if a property is a fixture or personal property
Method of annexation, agreement between parties, and adaption to real estate.
What is true about a municiplaity
The municipality may take Leila's property under eminent domain and must pay fair market value to do so.
An appurtenant easement
"runs with the land."
Mike is remodeling his house. Mike's next door neighbor Gary says that Mike may store a pallet of patio flagstones on a corner of Gary's property. Gary has granted Mike a:
A mortgage is what type of lien on a property?
specific, voluntary lien on a property.
A rectangular lot has 150 feet of road frontage. The lot is sold for $6.00 per square foot. If the purchase price was $180,000, how deep is the lot?
200 feet answer. $180,000 divided by $6.00 per square foot = 30,000 square feet. If one side of the rectangle is 150 feet, the other side is 200 feet. (150 x 200 = 30,000)
18. Physical obsolescence of real property may be due to:
deferred maintenance of the property. Physical obsolesence has to do with the condition of the property itself, not due to external influences.
The gross rent multiplier method of estimating the value of property is most likely to be used when appraising what type of property?
when appraising multi- family residental property.
The process an appraiser used to review the results of each appraisal method and determine how much weight to assign to each method is called:
The appraiser uses a process called reconciliation to arrive at an estimate of value.
What is an example of curable physical depreciation?
A minor roof leak
The owner of an apartment complex offers to pay William $75 to plow the snow from the driveway. If William plows the snow, he will be paid $75. He is not obligated in any way to do the plowing. This is an example of a(n):
This scenario is an example of a unilateral contract.
In reference to a valid contract, a competent party is someone who:
has mental and legal capacity contract.
25. A 16 year old named Dustin signs a contract to lease a car. Because of his age, this contract is:
O You are incorrect. The correct answer is B. This contract is voidable.
The Statute of Frauds requires that for agreements for the sale of real estate to be enforceable in court, they must be:
Agreements for real estate must be in writing and signed by the parties to be held to the agreement.
If "time is of the essence" is stated in the offer to purchase real estate, the offer is automatically canceled if acceptance is not communicate:
within the time period specified in the contract.
Which types of listings assures the listing broker of a commission regardless of who sells the property?
An Exclusive Right-to- Sell listing assures the listing broker of a commission regardless of who sells the property.
With which type of listing does the owner retain the right to sell his own property without owing a commission to a broker?
Which provides readily available liquidated damages for the seller if the buyer backs out of the purchase agreement for real estate?
Earnest money deposit
Gerald, a licensee with Sunshine Realty, is offered a $5000 bonus by the seller if he sells a particular listing before the last day of the year. The transaction closes on December 28. Which of the following statements is true?
All commissions or other forms of compensation are paid to the agency, not to the licensee. The agency's policy is then followed as to who, if anyone, gets any portion of the $5000.
Who is the seller's agent when the listing agency, Brownstone Realty, practices designated agency?
The licensee who obtained the listing from the seller.
33. A facilitator/intermediary/transaction broker is:
Neither an advocate nor agent of either party.
The right to buy or lease a property at a specific price during a specified period of time is called a(n):
Which of the following gives the holder the right to buy or lease property only if the owner decides to sell or lease the property to someone else?
Right of first refusal
Margaret makes an offer on Matthew's property. Matthew accepts all terms of the offer except for the date of closing. He counteroffers with an alternate date. What is the status of this negotiation?
By counteroffering, Matthew has rejected Margaret's offer.
Wendy made an offer on Thomas's property contingent on Thomas painting the front porch before closing. On the day before closing, wendy discovers that Thomas has not painted the porch. She decides to go ahead with the closing. This is an example of:
After an offer is accepted, but before the transaction has closed, the licensee representing the seller discovers an infestation of carpenter ants under the back porch of the property. Whom should the licensee inform of this discovery?
the licensee should disclose this to both the seller and the buyer. Material defects must be disclosed right up to the time of closing.
39. What duty does a licensee who is a non-agent have to the parties in real estate transaction?
40. A valid contract for the purchase of real estate must include a(n):
Although many contracts include information about the licensees, to be valid, the contract must provide a description of the property.
The federal law that assigns accountability for the cleanup of hazardous sites in the environment is called:
CERCLA assigns accountability for the cleanup of hazardous sites in the environment.
Which federal agency publishes flood zone maps?
An environmental issue related to high humidity and trapped moisture is:
45. A hazardous substance that may leak from older electrical equipment is called:
PCB (polychlorinated biphenyls) is a hazardous substance that may leak from older electrical equipment. following
naturally occurring gas that can enter houses through cracks in a foundation is called:
A lender refuses to lend money for properties located in the Red Brook neighborhood because too many immigrants from the Middle East live there.
Which of the following federal laws prohibits discrimination that denies equal access to places of public accommodation?
Americans with Disabilities Act
The borrower has the right to reconsider and cancel a home equity loan within:
The Sherman Antitrust Act prohibits a group real estate brokers from:
setting prices such as minimum commissions.
RESPA rules apply to which of the following types of loans?
Federally-related loans for 1 to 4 residential units is the
53. Under RESPA, a lender is required to provide a borrower with:
A Loan Estimate. of closing costs.
According to the Americans with Disabilities Act, elevators are NOT required for either new or existing structures which are places of public accommodation if:
answer: B. The structure has fewer than 3 stories or fewer than 3000 square feet per story.
A real estate broker places an ad that says "Great buy in this neighborhood! You only need 3 percent down!" According to TILA trigger rule, the ad must also include:
APR and terms of repayment (number, amount, due date).
When a buyer applies for a loan to finance the purchase of property, he is seeking:
The buyer is seeking a loan in the primary market.
Since each installment payment on amortized loan reduced the principal balance, the borrower pays:
decreasingly less interest over the course of the loan term.
For a mortgage to be securitized on the secondary market, the loan must:
must conform to uniform underwriting standards.
The trustee for a deed of trust is:
is a neutral third party.
mortgage document states that if the borrower defaults, the lender has the option of declaring all the principal still owed payable immediately. This is called a(n):
The premium for owner's title insurance
is paid at the closing.
In which of these forms may a parent and child own property together?
As joint tenants or tenants in common
A large 5000 square foot home is built on the same road as other similar properties. Which principle explains the benefits of this placement of the home?
A mortgage document states that if the owner sells the property, the lender may demand immediate payment of the entire loan balance ("due on sale"). This is called a(n):
Robert pledges three pieces of real estate as collateral for one mortgage. Robert has a:
Blanket mortgage. Robert has a blanket mortgage.
Which of the following statements regarding LTV (loan to value) ratios is true?
the higher the LTV, the greater the lender's risk.
A. PMI is usually required on conventional loans with down payments less than 20%. B. PMI is issues by private insurance companies. C. PMI protects lenders from the greater risk of high LTV loans.
What must a veteran present to a lender in order to apply for a VA loan?
Certificate of Eligibility to the lender.
typical VA loan requires no down payment.
Which of the following words describes an arrangement in which money and documents are held by a neutral third party?
Which of the following real estate transactions is most likely exempt from RESPA (Real Estate Settlement Procedures Act) requirements?
On a Closing Disclosure, prepaid interest on a new loan to cover from the date of closing through the last day of the month would appear as a:
Debit to the buyer.
70. Index, margin and cap are terms related to what type of mortgage?
ARM (Adjustable Rate Mortgage).
In a lien theory state, the borrower retains title and gives the lender a:
a lien on the property.
In a title theory state, the borrower gets title to the property:
The borrower gets title when the note is paid in full.
Andrea bought a property with a 20% down payment for a 30 year loan at 7% interest. If her first month's interest was $787.50, what was the amount of her loan? (Note that you may use the formula I=PRT for simple interest as you are using the first month of the loan -- no amortization in this question!)
Step 1: Rearrange the formula to solve for P. P=I/RT Step 2: Calculate a year's interest 787.50 x 12 = 9450 Step 3: Convert 7% to a decimal .07 Step 4: You are given the interest payment for the first month of the loan, so time = 1. Step 5: P=1/RT=9450/(.07 x 1)=135,000.
A commercial property generates $56,000 of net operating income, and the appraiser determines that the cap rate of comparable properties is 10%. What value does the appraiser give this property using the cap rate method?
$560,000. Use the formula Value = Income/Rate. Value = 56000/.10 = 560000.
Licensee Robert lists a property for a 6% commission. The property sells for $192,000. The listing agency splits the commission 50/50 with the selling agency. Per his agreement with his agency, Robert is entitled to 66% of the commission earned by his agency. How much does Robert earn on this transaction?
The listing agency's commission is (192000 x .06)/2 = 5760. Roberts gets 60% of this. .60 x 5760 = 3801.60.
Other Quizlet sets
Kin 308: Strength Sports
Chapter 3 and 4
Menu Test 2 (Soups,Salads,Burgers)