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EXAM 1 CE shop

Terms in this set (111)

Isabelle is thinking about buying a one bedroom residence in a cooperative. a residence in a cooperative, unlike a condominium, is considered
PERSONAL PROPERTY
legally, cooperatives are personal property, whereas condos are real property
Katherine purchased a home in south Carolina for $415,000. what's the county portion of the deed recording for this transaction?
$456.50
THE South Carolina DEED RECORDING FEE IS $1.85 PER $500 OF REAL PROPERTY VALUE THE COUNTY PORTION OF THIS FEE IS $0.55. $415,000/$500= 830.
830 X $0.55 = $456.60
Whats the acronym for the legislation that eliminates illegal referral fees among settlement service providers?
RESPA
stands for the real estate settlement procedures act
state coastal bank in South Carolina has a borrower who's in default on a home loan. if the back wishes to foreclose, what process will it use?
judicial
what act gives companies th aright to sue a competitor for making deceptive ad claims?
the Latham act
it is a federal act that provides companies with the right to sue competitiors doer making deceptive ad claims
if a contract is accepted under duress, it is considered
unconscionable
this contract is unconscionable because one of the parties accepted the contract under duress, which means that party was forced and didnt consent
which of the following opinions can a real estate licensee provide?
an opinion regarding the listing price
jamilynn violated anti trust law by engaging in price fixing. which of these actions did she most likely perform?
she told a consumer the commission rate is standard for the industry
Octogenarians Gertie and Frank met in Sunset Living, a skilled nursing center for people with advanced Alzheimer's disease, where they're both residents. They fell in love and get hitched, signing a marriage certificate. This is an example of a(n) ______ contract.
invalid
an invalid contract is one thats missing at least one of the required elements. in this case, neither party has the legal capacity to enter into a contract due to their advanced Alzheimer's disease
bob wants an open listing agreement. why might this not be in bobs best interest
he won't get full representation from any one licensee
an appraiser is most likely to use the cost approach for which of the following properties
a school
the cost approach is used on non income producing properties with few comparable
in the income capitalization approach to appraisal, NOI is found by
subtracting Toal operating expenses from effective gross income
loans available through the farm service agency have which of the following characteristics?
loan terms may be as long as 38 years
the farm service agency has loans for both rural and farm properties. loan terms may be as long as 33 or 38 years, depending on the borrower's income
what's the term for an addition to a sales contract that can be added without changing other terms already agreed upon in the contract?
addendum
gina purchased a home in South Carolina for $415,000. what's the deed recording fee for this transaction?
$1,535.50
415,000/ 500 = 830
830x 1.85= 1,535.50
for a deed to be valid, which two elements are required?
signature of the grantor and consideration
only the grantor signature is required
Tim is selling his home to Kirk and promises in writing to have a licensed professional repair the home's leaky roof. After closing, Kirk, who financed the purchase, discovers that Tim patched the roof poorly and it leaks whenever it rains heavily. Under South Carolina's statute of limitations, if Kirk wishes to sue Tim, he must do so within ________ of the contract breach.
20 years
in South Carolina, the statute of limitations for suing someone based on a written contract concerning property secured by a mortgage is 20 years
which of the following describes the appropriate capital gains exclusion for a taxpayers primary residence
The taxpayer lived in the home at least two of the five years immediately preceding the sale, with an exclusion of up to $250,000 for single taxpayers, $500,000 for couples filing jointly.

the requirement is two of the last five years, and the exclusion is up to $250,000 for single tax payers and $500,000 for couples filing jointly
what must occurs to effect a transfer of title
the grantor must deliver a valid deed to the grantee
there is a requirement for the seller (grantor) to deliver a marketable title. The grantee is not required to sign.
what types of monies received from income- producing properties should be deposited into an escrow account
PREPAID RENT AND SECURITY deposits
current rent may be deposited into an operating account. prepaid rent and security deposits should be deposited into an escrow account. each property should have its own escrow account (even if multiple properties are owned) to avoid commingling funds
when an appraiser relies on comparable properties to estimate the adjusted market price of a property, the appraiser is using the _____ approach
sales comparison
what's the difference between an exclusive right to sell and an exclusive agency agreement?
no commission is earned if the seller locates the buyer with exclusive agency
an exclusive right to sell protects the agents commission, even if the seller locates the user
which agency duties survive termination of an agreement
confidentiality and accounting
loyalty does not survive
activities that restrain trade and reduce competition and choices for consumers are considered to be what kind of violations
antitrust
antitrust violations are those that restrain trade and unreasonable reduce competition. this reduction in competition lessens choices for consumers. these actions are illegal
where can you find out what's not covered by a title insurance policy?
the title insurance policy's schedule of exceptions
in most transactions involving a buyer or a seller, real estate agents have limited authority to act on behalf of their clients. therefore, which type of agency relationship are they in?
special
property ownership for an indeterminable length of time is an example fo what form of estate?
freehold
what's a covenant between a lessor and a lessee
an agreement or promise made between the parties
the location of wetlands and springs at a development site is part of
topography
fair housing act of 1968
discrimination through blockbusting, steering, and redlining
METES AND BOUNDS DESCRIPTION
"beginning at the iron pin 30 paces from the center of the brook that runs across the road southwesterly..."
a metes and bounds description has a point of beginning, which is where the description begins. "beginning at the iron pin..."
in the sales comparison approach. the appropriateness of the various comparable sales in relationship to the subject is considered in a process known as________, where certain factors may be given more weight
correlation
through a correlation process, the most weight may be given to one or two of the sales that are presented, or equal weight may be given to a ll
what type of loan may be used if the buyer is obtaining seller financing?
purchase money mortgage
buyers use this when they need seller assistance with financing. the seller issues a mortgage to the buyer as part of their purchase agreement
Gerald creates a trust to convey his property to his heirs. his friend, Nancy is placed in charge of making sure the terms of the trust are carried out. in this example, Nancy is the
trustee
the trustee is the person in charge of carting out the terms of the trust
the earths surface, extending downward to the center of the earth and upward to infinity, including permanently attached natural objects is called
land
which of the following describes a sale subject to a mortgage
the seller transfers title with the lien in place
the buyer takes title to the existing mortgage and any dificiency judgment would go against the note holder
with which type of commercial lease does the tenant pay some or all of the expenses?
net lease
what does procuring cause refer to?
an uninterrupted serious of events that results in a. successful transaction
chance and lucky have an option agreement between them in which no consideration is provided. is this enforceable
no
consideration is required to make an option contract enforceable
what is true about a title to a property
constructive notice to the public of interest in a parcel of real estate occurs when the deed is recorded and physical possession of the property is taken
recording and possession give the public constructive notice that ownership has changed hands. it also protects the buyer from others' claims on the property
with which type of government power can a lien be places on a. property, giving the govt a claim to the property?
taxation
the govt power that, if unpaid, allows the government to place a lien on the property
the lender, the loan applicant, and the ____ all complete parts of the request for verification of deposit form
depository institution
a fee a lender charges for processing a loan is called
a loan origination fee
the enforcement of antitrust laws, investigation into possible violations, and subsequent prosecution of violations are handled by the
attorney general
Which term refers to a permitted deviation from current zoning restrictions that allows an owner to use land for a purpose that's otherwise prohibited, and requires the owner to prove the zoning creates an unnecessary hardship?
use variance
allowed when the land is used for a purpose that, under the current zoning restrictions, is prohibited and causes the property owner unnecessary hardship
which of these describes a deed
ownership doc
real property ownership may offer significant tax advantages
depreciation
the total amount thats treated as a home acquisition debt for tax purposes has to be less than _____ for married couples filing jointly
$750,000

$375,000 if married and filing sepeartlt
what is it called when a licensee provides services for a customer but does not enter into an agency agreement?
transaction brokerage
why would a buyer want to know whether any additions or alterations were made to a property>
so the buyer can determine if permits were pulled
how do predatory lenders take advantage of consumers
making loans to consumers who cant afford them
a property owners rights to access ponds, lakes, oceans and other closed bodies of water bordering the owner's land is called _____ rights
littoral
local real estate developments, such as a new subdivision, will likely impact _____ the most
aesthetics of a community
if a rectangular building were 40 feet by 20 feet, the area would be _____
800 square feet
Janie's got an open house scheduled for Sunday, but lets her friend in on Saturday to preview it. It's love at first sight! With the owner out of town, Janie decides to cancel the open house so there won't be any other offers. Her friend makes an offer and it's accepted on Monday. What fiduciary duty or duties has Janie breached?
loyalty and disclosure
according to the NAR code of the ethics and standards of practice preamble, "realizing that cooperation with other real estate professional promotes the best interests of those utilize their services, realtors urge _________
exclusive representation of clients
uh oh. you failed to present an offer on behalf of your client in a timely manner. as a result, the seller accepted a lower offer from another buyer. for which of the following could your buyer sue you?
negligence
Mark works at Farm and Country Bank, and has arranged an agricultural loan for Josh, a local organic farmer. Josh didn't meet the bank's normal underwriting standards, but Mark made the loan because he was able to arrange for a guarantee from ______.
the farm service agency
Micheal doesn't have a real estate license, but he helps his friend, Nancy, sell her home. what can Micheal legally receive as compensation
a heartfelt thank you
Maureen is selling her house under a listing agreement with Tanya. Tanya has an appointment with Maureen to present an offer from a buyer, when Tanya learns that Maureen had died suddenly the day before. What happens to their agency relationship?
agency is terminated by law when the client dies
what fiduciary duty goes beyond closing?
confidentiality
the ease with which the property can be conveyed to another describes which factor that influences value?
transferability
a negotiable instrument must contain an order to pay or a
promise to pay
In which of the following situations is it legal to receive compensation?
You refer a client to your sister, who works at another real estate agency. When she gets her commission check, she sends you a thank you note.
you demonstrate the fiduciary duty of accounts by
taking care of your clients funds and paperwork
which type of antitrust violation involves two or more businesses conspiring against another business?
group boycotting
in the income capitalization approach to appraisal, NOI is found by
subtracting total operating expenses from effective gross income
how many approaches to value do appraisers generally use?
three
what happens to a joint tenants share of property when the joint tenant dies?
the joint tenants interest goes to the remaining joint tenants. if only one joint tenant is left, that joint tenant owns the property in severalty
You're working with a couple who state they definitely must sell at a price of $275,000. They're more concerned about getting that price than the amount of commission they'll pay, and they say you can keep any amount the sale brings in that's more than $275,000. What type of listing is this?
net listing
which term is used for the individual who conducts the closing?
closing agent
whats the term for an addition to a sales contract that can be added without changing other terms already agreed upon in the contracts?
addendums
which of the following can indicate drainage problems?
water that pools after a heavy rain and is present more Than 24 hours
Logan signed a purchased contract for a time share on Tuesday. by which day must he notify the seller in writing of his intent to cancel the contract
monday
Sandra enters into a contract to sell her home to Paul. Under the statute of frauds, in order to be legally enforceable, the written contract must name the contracting parties, identify the subject matter of the contract, and ______.
prevent the essential terms and conditions of the contract
what protects the buyer the sale and can reimburse the buyer after the sale if a title issue arises?
title insurance
can be defined as everything that's not real property
person property
Calculate the total debt ratio based on the following information, assuming the lender does not consider any debt with 10 or fewer payments remaining: $1,500 condo payment; $100 monthly association fees; $150 monthly student loan payment; $300 car payment (with only four payments remaining); and a monthly gross income of $5,000.
35%.
a $400,000 property depreciated in value by 2%. what's its new value
$392,000
Archie signed a contract to buy Pam's home. The deal eventually closed, but Pam failed to hand over the home's keys to Archie. A week passed, and Archie filed a lawsuit in an attempt to force Pam to give him the keys. This is an example of ______.
the building department
when banks have lots of funds available for lending, what tends to happen to interest rates?
rates decrease
the SECONDARY market is comprised of
FNMA, GNMA, FHLMC, and lending institutions that uy loans from other lenders
Which type of South Carolina contract must contain the date the agreement is signed, the date the option is exercised, and the closing date?
an option contract
in most transactions involving a buyer or seller, real estate agents have limited authority to act on behalf of their clients. Therefore, which type of agency relationship are they in?
special
property ownership for an interminable length of times an example of what form of estate?
freehold
Which of the following closing activities occurs on the day of closing?
funds are transferred
real property rights include the right
of enjoyment
article 3 of the code of ethics requires NAR brokers to cooperate, except when
cooperation is not in the clients best interest
from whom or what entity do licenses receive compensation for brokerage services once a transaction is closed?
the brokerage for both side receive their share of brokerage fees and discourse licensee shares to them
Darell wants to hire Bernard from Gold Star Realty as his agent. what do they need to do to establish this relationship?
they need to sign a written agency agreement
Hannah is a property manager for Alex, who owns an apartment building. Hannah is permitted to reject application based on which of following?
poor credit history
which of the following best describes what an appraisal is>
its an opinion of value
which term is used when someone else property by using it for an extended period of time?
adverse possession
per the EPA what must be conducted before a project may be approved for development
an environmental impact study
lenders will require which type of fund for taxes and insurance?
reserve fund
what happens to agency when the goal of the agreement is completed?
agency terminates
you represent Andy, who's selling his South Carolina condo to Kelley. who should complete the property condition disclosure statement ?
Andy
in order to enforceable, what does the statute of frauds require a real estate contract to be?
In writing
what's the purpose of the loan application
to provide the lender with information needed to determine a borrower's ability to repay the loan
the real estate offer rejection form has been required by law in South Carolina since
January 1, 2017
the number or properties available describes this factor that influences value
scarcity
the power of the state to claim property when the owner dies without a will and without locatable heirs or creditors is also known as
escheat
is a consumer wants to file a deceptive ad complaint, which entity should be contacted?
the BB
what can a wet environment with little air circulation do?
lead to mold growth
what the purpose of a deed
to establish proof of ownership
given all the laws prohibiting discrimination in housing, why does it still occur?
it often happens outside of the public eye
if Rina wants to pay off her mortgage early, what might she consider before doing so?
whether shell incur a prepayment penalty
when evaluating the income listed on a loan application, what will the lender consider?
income amount and source
what is a capital gain?
sales price minus the adjusted basis
in full seller disclosure states, whose responsibility is it to notify the seller of the seller's duty to disclose all known material defects?
licensee representing the seller
Gretchen, a South Carolina real estate salesperson, received an escrow check from a client on Saturday afternoon. When must she deliver the check to her broker-in-charge?
by end of day Monday
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