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Real Estate

Terms in this set (110)

The agent knows the duty of care to
His principle
Executory contract is one which
Has been signed but not performed
Which will receive payment first
Four month old state income tax lien
A type of loan tied to a specific index and mutually agreeable to both the lender in the borrower
Variable rate
The tax year is July 1 to June 30. Annual taxes are 912 paid in arrears. closing is on the 15th. Assuming 360 days and the seller pays for the day of closing who owes how much for the taxes?
Seller owes $722
An appraiser uses what to determine value
Comparable
What is not deductible from gross income on a federal tax return
Homeowners insurance
The cancellation of a sale in which the seller would not be allowed to demand specific performance would be
Option
The advantage of a VA loan
Loan is guaranteed
What is the best example of federal fair housing laws to protect handicapped people
A blind person being able to have a seeing dog in an apartment where no pets are allowed
A vendor wants to give you a gift for services you should
Tell your broker
Subdivision restrictions exclude babysitting other peoples children in your home
This is legal and restricts the types of owners in the subdivision
One of many brokers a seller has employed to sell her house presents an offer for full price. The type of listing is most likely
Open listing
And improvement to a specific property which benefits only that property is paid for by
Special assessment
Which of the following represents physical deterioration
Unrepaired where in tear
Which is the best example of a buffer zone
In agricultural area between a single-family neighborhood in the shopping center
An apartment building is sold while lease, which of the following best describes the lease after the sale
The new owner must honor the lease
Buffer zones are used to
Separate areas of different land use
In general, an agent should advise a married couple to purchase property and what type of ownership
Seek legal advice
Regulations Z requires
Disclosure of financing cost including interest rate
6 miles of street lights are installed by the city to like the adjoining properties. It would be paid for by
Special assessment to the adjoining property
A vendor has paid money are valuable consideration for the services obtain by the Licensee for the principle. The money should
Be put in a trust account until instructions are given by the principle
Taxes of 1140 were paid in full on February 1 for the current calendar year. The sale of the house closes on April 1 if the buyer pays the day of closing, how much does the buyer owe for taxes
$855
A property description which reads starting from the east side of Main Street at the intersection of commercial Street thence 300 feet south to Pearl Street etc. is what type
Metes and bounds
An owner owns land along a non navigable stream.
Which is true of his riparian rights?
They extend to the middle of the stream
The property of a person who dies having no WILL and no heirs goes to the state through the concept of
Escheat
Which statement describes the difference between an exclusive agency listing and in exclusive right to sell listing
The seller can sell the house himself and pay no commission in an exclusive agency
Which of the following would not go with the sale at closing
Emblements
And option is given for two years to purchase a property of $100,000. The value is $150,000 in at the end of the two years the value is $400,000. The seller
Do nothing, the option is binding
An agent can ensure he gets commission if his client buys the house after the contract expires by including
Protection clause
The deposit on a rejected offers should be disbursed to
The buyer
A contract signed under duress is
voidable
To purchase himself from fair housing suits, an agent should
Keep accurate records of what property he shows to whom
The actual action of taking private land for public use is
condemnation
A buyer assumes the sellers loan and the seller is released from liability for the loan. This is
Novation
Our house is offered for sale with the Sumption of trust deed. A buyer makes an offer meeting all terms except that he says subject to loan. If the seller rejects the offer the broker is entitled to
No commission
In determining the list price of a house, the agency consider
Utility, demand, scarcity, and transferability
A housing complex with 80% of the units occupied by a person 55 or older would be exempt from running to which protected class
Familial
An owner sells her own condo unit and tells the buyer she can have the rug in the foyer. The buyer does not mention the rug in the contract, relying on the sellers oral agreement the buyer can
Not Sue, because it was not a writing
Requiring bathrooms in buildings that are to be occupied by humans is an example
Building codes
The law which requires giving information about closing cost and
RESPA
Which is not protected by fair housing laws
Illegal drug users
The seller tells his agent only to show his property to certain people. The agency tell the seller that
He cannot sell the property
A low loan to value ratio means
High equity
If you think your property taxes are too high can can appeal to
Board of appeals
A name for a person represented by the licensee is
B or C (principle or client)
A person living on a property without permission of the owner is a
Tenant sufferance
Which method of determining value would use either replacement cost or reproduction cost
Cost approach
The best way to ensure a marketable title is by
Title insurance
A man listed a house exclusive agency. He then tells his agent to remove the sign in the yard because he is tired of people coming to his door
The agent should remove the sign
The conveyance of the property to two parties in the proportion of 1/3 to 2/3 would be
Tenancy in common
Regulations he provides that the Buyer be giving
Meaningful information about the cost of a loan including interest rate
What would protect a lender against problems with the title
Mortgagee's title insurance
What is true of an option
It is not mutually binding
An agent that represents both the buyer and seller in a transaction with the written consent of both is known as
A disclosed dual agent
A house was purchased for $75,000.05 years ago. It sells for $95,000. Improvements of $10,000 were made. Six months later the seller buys a house for $110,000. How much tax is he liable for
None (because if he reinvest his profit within the same time allowed, the taxes deferred.)
Riparian, littoral, and percolating are all concerning what right
Water
And executed trust the note is a lien
If there's also an executed trust deed
When a broker arrives at a price by comparing a property to other similar properties he is using the principle of
Substitution
In order to comply with federal guidelines before leasing to a mentally ill tonight, and Agent should
There are no guidelines
A lenders impound reserve account is used for
Taxes and insurance payments
A property owner owns land near a waterway with no access to the water. He obtain permission from the state to use the water weight. How does he obtain access to the water
Must negotiate for an easement with the owner of the waterfront property
An amortized loan with a balloon payment is more likely a
Partially amortized loan
And encumbrance is most likely discovered by
Chain of title
If a person wants to build a neighborhood grocery on a residential street he would need
Zoning variance
A man and his wife owned a duplex as joint tenants and reside in one side. The man dies leaving his entire state to his son by a previous marriage. Which of the following best describes what will happen as to ownership of the duplex
The son is an heir but gets none of the duplex
In an assumption, the original bar is liable for the balance of the loan until
The act of novation
Deed restrictions are the same as
Restrictive covenants
A survey uses monuments to give
Property boundaries
Deed restrictions can restrict all except
No minority occupants
How would you describe land for agricultural use
Rectangular survey
All of the following are true of a freehold state except
It has a termination date
A neighborhood's children cut across his yard to get to school each day in order to avoid a busy street. If the owner later decides to build he may be prevented by
Prescription
A listing contract terminates when
Expiration of the date
The best example of a unilateral contract is
An option
When two or more pieces of property or join together this is called assemblage. What is the name of the resulting increase in value
Plottage increase
All of the following are examples of involuntary alienation except
Transfer by attorney in fact
The advantage of a balloon mortgage is
Relatively small monthly payments
A widow made her last mortgage payment five years ago. She is on a fixed income and would like to borrow against the equity. What is the best type of loan for her
Reverse annuity
Which is the least likely cause of depreciation
Decreasing land value
A type of sale in which the seller retains title until all payments are made is
Installment land contract
A sales person sees that an apartment sold for $62,000. He has nice their apartments listed for $80,000-$90,000. He places an ad stating that the apartments start at $62,000. This is an example of
Misrepresentation
A purchase agreement is signed on a $350,000 house and a deposit of $25,000 is given to the broker and put in escrow. A month later, the buyer and seller agree not to go through with the sale. Which of the following should the agent do
The broker must return the deposit
The most accurate method for the cost approach is
Quantity survey
When combining two or more appraisal processes, what method is used to arrive at the final value
Reconciliation
A written promise to repay a debt is
A promissory note
An option requires
The seller must sell for a set price within a given time limit.
What document should be inspected to determine what type of building can be built on a property?
Zoning ordinance
Which is deductible when calculating capital gains tax
Purchase price, fixing up costs, selling expenses, and capital improvements
A sales person who list a property is
A sub agent to the broker and an agent to the seller
All of the following must be given to your clients except
Obeying your client when it means the agent will violate the law
In a net listing the broker receives
Any amount above a preset amount determined by the seller
In the closing statement any new loan proceeds are listed as
A credit to the buyer
A contract is signed for the sale of a house. The seller dies in the heirs do not wish to sell. The buyer can
Sue for specific performance
A six unit complex located in an area zoned R1 for single-family residences would be an example of
Non-conforming use
If the full deck is not recovered through foreclosure, the balance can be recovered through
Deficiency judgment
Market ability of title is affected by all except
Market price
A contractor can make a claim for unpaid invoices through
Mechanics lien
A listing contract may be terminated
Upon mutual agreement of the parties
According to the law of supply and demand, if three houses are for sale in an area with high demand which one would likely sell for the least
First sold
A violation of the fair housing law is considered
Misdemeanor
An example of price fixing would be
two brokers agreeing to set the same fee structure
Which contract is between the seller and the buyer
Purchase agreement
A title search the discloses a break in the chain of title. What must the seller do
File a suit to quiet title
To obtain a VA or FHA insured loan the buyer must
Live in the house
What document should be the basis for closing or settlement statement
Purchase agreement
All are types of contracts except
Void
A property can be acquired by the city through condemnation after
Judgment in court favoring the city
Mr. Smith list his lakefront home for sale. Mr. worth offers to purchase in sales contract and signed and deposit accept. Mr. Smith then learns that a marine is being built on the lake which will increase the value of his property. He refuses to sell to Mr. worth, instructing his agent to return the deposit. Which is the least beneficial course of action for Mr. worth to take
Rescision
Which is state is always inheritable
Fee simple
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