Real estate quiz chapter 11 to 15 STUDY PLAY

Term
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Which Statute requires all contracts to be in writing to be enforceable?
Statute of Liberty
Statute of Limitations
Statute of Frauds
Florida Statute 475
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Terms in this set (50)
Which Statute requires all contracts to be in writing to be enforceable?
Statute of Liberty
Statute of Limitations
Statute of Frauds
Florida Statute 475
Statute of Frauds
What is a Meeting of the Minds?
Mensa Meeting
An important legal feature of a contract
Commission Meeting
The Senate
An important legal feature of a contract
An Option Contract is an example of which of the following?
A Unilateral Contract
An Unenforceable Contract
A Bilateral Contract
An Implied Contract
A Unilateral Contract
What is a Safe Harbor situation?
Where a brokerage has a policy manual which directs the actions of the sales and broker associates
Buying properties as a Trust
Checking out prices on the internet
Signing a Quitclaim Deed
Where a brokerage has a policy manual which directs the actions of the sales and broker associates
What is the Procuring Cause?
The Chain of Title
The party responsible for the sale
The Marketing Material
The Title Report
The party responsible for the sale
If Buyer and Seller reach an oral agreement over the purchase of a piece of property which of the following is true?
The contract is void and unenforceable
It is not a valid contract
The Seller must sell and the Buyer must buy.
They have a valid but unenforceable contract because it is not in writing
They have a valid but unenforceable contract because it is not in writing
What is an example of culpable negligence?
Steering
Conversion
Erosion
Failure by a sales associate to disclose a material fact that they knew about or should have known about.
Failure by a sales associate to disclose a material fact that they knew about or should have known about.
When does a purchaser have Equitable Title?
Between the delivery and acceptance of the contract and actual closing
When there are two owners with equal shares
Only the Seller has Equitable Title
After Closing
Between the delivery and acceptance of the contract and actual closing
When is an executory contract?
An agreement to be the executor of a will
A contract that has not been presented.
A Death Sentence
A contract in process
A contract in process
What is a Breach of Contract?
A contract which does not contain legal provisions
Failure to perform the provisions of the contract without a legal excuse
Contingency clauses have been added in the wrong order
A contract is prepared by the seller instead of the buyer.
Failure to perform the provisions of the contract without a legal excuse
At a foreclosure sale there was money left over after the debts were paid who got it? The Sheriff Grantor The Mortgagee The MortgatorThe MorgatorAn instrument confirming one person owing another money is called? A rescindment A note A mortgage A deedA noteWhat are Discount Points? Income Tax expense categories A sliding scale for listing price reduction over a period of time Reduction in Listing Broker Sales Commission payments A form of pre-paid interest used to obtain a lower mortgage interest rateA form of pre-paid interest used to obtain a lower mortgage interest rateWhat is a deficiency judgement? A Home Inspector's Report Notification of not qualifying for an FHA loan The judgement a lender seeks when proceeds from a foreclosure sale do not cover the amount owed to the lender Notification of failure to complete post-licensing courseThe judgement a lender seeks when proceeds from a foreclosure sale do not cover the amount owed to the lenderWhat does an Estoppel Certificate show? The current balance of the loan when a lender sells a note to another lender The Guaranteed ROI The date the loan will be paid off The Abstract of TitleThe current balance of the loan when a lender sells a note to another lenderWhat is the term for a mortgage that is junior to another mortgage? Wraparound Mortgage A Subordinate Mortgage First Mortgage Equitable MortgageA Subordinate MortgageWhat does a defeasance clause in a mortgage provide for? Subordination Penalties if the mortgage is paid off early Alienation Release of the indebtedness once the loan is paid offRelease of the indebtedness once the loan is paid offWhich of the following best describes Equity in a property? The value of the outstanding mortgage The Property Tax Assessment Value The value over and above the outstanding mortgage balance(s) The price at which it was purchased before the last saleThe value over and above the outstanding mortgage balance(s)What Title does the seller retain until the loan is paid in full in an installment land contract? Joint Tenancy Equitable Mortgage Legal Tenants in CommonLegalWhat is the annual interest rate on a loan where interest is paid at $500 per month on a $50,000 loan? 5% (Percent) 0.12% (Percent) 10% (percent) 12% (Percent)12% (Percent)Where can a borrower obtain an FHA mortgage? FHA Any Qualified Lending Institution RESPA TRIDAny Qualified Lending InstitutionWhich of these is part of the VA Loan application requirement for a veteran? Certificate of Service Certificate of Occupancy Driver's License Certificate of EligibilityCertificate of EligibilityWhich of the following is the basic difference between a FHA and a VA loan? VA guarantees loans; FHA insures them They are the same but VA loans have no down payment FHA guarantees loans; VA insures them There is no down payment on FHA loans, VA requires 5%VA guarantees loans; FHA insures themA man had a loan for $60,000 and he had to pay 2.5 points. How much would he have to pay in cash? $6,000 (Dollars) $3,000 (Dollars) $1,500 (Dollars) $2,500 (Dollars) 1 Point = 1% of the loan amount: $60,000 x 2.5%=$1,500 (Dollars)What does the Acronym TRID stand for? TILA-RESPA Integrated Disclosure The Real Interest Disclosure Truthful Rates of Interest Document The Reasonable Interest DisclosureTILA-RESPA Integrated DisclosureWho would most likely obtain a Blanket Mortgage? A developer building an assisted living facility A developer for a sub-division A Theme Park A HospitalA developer for a sub-divisionWhat kind of loan would be fully paid out over the lifetime of the loan? Wrap Around Mortgage A Purchase Money Mortgage Partially Amortized Loan Fully AmortizedFully AmortizedThe amount of a loan as a percentage of the value of the collateral offered as security is known as what? Negative Amortization Estoppel Value Loan to Value Ratio Interest RateLoan to Value RatioRESPA is administered by which Agency? CBFP - Consumer Bureau of Federal Protection CFPB - Consumer Financial Protection Bureau CFCB - Consumer Federal Credit Bureau CFBC - Consumer Finance Bureau ControlCFPB - Consumer Financial Protection BureauIf a loan is $230,000 at 10% interest over 30 years with a payment of $2225.30 (Principle and Interest) per month what is the principal balance after one month? $229,691.37 (Dollars) $219,774.70 (Dollars) $228,083.33 (Dollars) $226,199.73 (Dollars) 230,000 x 0.10= 23,000 annual interest 23,000/12 = 1,916.67 monthly interest 2225.30-1916.67 = 308.63 Paid to Principal. $230,000-308.63=229,691.37.$229,691.37 (Dollars)A house sold for $280,000 and the total commission received by the broker was $21,000 what was the rate of commission? 9.5%(Percent) 7.5%(Percent) 5.5%(Percent) 6.5%(Percent)7.5%(Percent)Alex bought a lot for $7,500 and sold it 5 years later for $11,000 what was his percentage gain? 23.8% (Percent) 55.3% (Percent) 46.7% (Percent) 33.4% (Percent)46.7% (Percent)Which of the following best describes the purpose of the Sales Disclosure? An official HUD statement used by the seller to itemize all closing charges An official HUD statement used by the buyer to itemize all closing charges An official statement used by the listing agent to disclose all closing charges for buyer and seller An official settlement statement itemizing all charges for a borrower and a sellerAn official settlement statement itemizing all charges for a borrower and a sellerSue and John buy house for $285,000 and they obtain a 75% loan how much is their loan and how does I appear on the closing statement? $71,250 (Dollars) Credit to Buyer $213,750 (Dollars) Credit to Buyer $213,750 (Dollars) Credit to Seller $71,250 (Dollars) Credit to Seller$213,750 (Dollars) Credit to BuyerA 20 Acre plot sold at $3500 per acre what is the cost of the deed stamp tax and who pays it? $490.00 (Dollars) paid by seller $700.00 (Dollars) paid by seller $490.00 (Dollars) paid by buyer $700.00 (Dollars) paid by buyer Seller pays Stamp Tax @0.70 per $100 sales Price: (20 x 3500)/100=700; 700 x .70 = $490.00$490.00 (Dollars) paid by sellerA Property was listed at $127,000 and sold for $125,000, how would the price appear on the settlement statement? Credit the Buyer $125,000 and Debit the Seller $125,000 Credit the Seller $125,000 and Debit the Buyer $125,000 Credit the Seller $127,000 and Debit the Buyer $125,000 Credit the Buyer $127,000 and Debit the Seller $125,000Credit the Seller $125,000 and Debit the Buyer $125,000If a seller wants to net $205,500 after paying real estate commission of 6% and paying off a $100,000 HELOC how much does he need to sell the property for? $355,000 (Dollars) $305,500 (Dollars) $315,000 (Dollars) $325,000 (Dollars) 205,500+100,000=305,500; 305,500/94%=325,000$325,000 (Dollars)A Property sold for $234,000, the listing commission was 6% with the selling broker receiving 45% of the total commission. How much will the listing Sales Associate receive if he is paid 60% of the total amount received by her broker? $6,433.20 (Dollars) $3,790.80 (Dollars) $4,633.20 (Dollars) $14,040.00 (Dollars) $234,000 X 6%=$14,040; Listing Broker receives 55% = $14,040 x 55%=$7,722. Listing agent receives 60% = $4633.20$4,633.20 (Dollars)Property Taxes of $2400 are due in arrears on a home that is due to close on March 22. Day of Closing belongs to buyer Using the Statutory Month Method what are the prorated tax charges? Debit Seller $540 (Dollars) and Credit Buyer $1860 (Dollars) Debit Seller $540 (Dollars) and Credit Buyer $540 (Dollars) Credit Seller $540 (Dollars) and Debit Buyer $540 (Dollars) Credit Seller $540 (Dollars) and Debit Buyer $1860 (Dollars) Seller owes 2 months + 21 days = 81 days; 2400/360 = 6.67 per day 6.67 x 81=540. Debit Seller $540 and Credit Buyer $540Debit Seller $540 (Dollars) and Credit Buyer $540 (Dollars)The deed of the property is taxed based upon which of the following? Sale Price Cash to Close List Price Previous Sale PriceSale priceWhich of the following will influence Demand? Buyer ability to get a loan Availability of Skilled Labor Loans available to Builders Credit ScoresBuyer ability to get a loanWhat is the term for the situation where there are more buyers than available homes for sale? Buyer's Market Lender's Market Renter's Market Seller's MarketSeller's MarketWhich of the following is NOT a Government Interference? Deeds Zoning Building Codes TaxesDeedsWhich is NOT a demand factor? Credit Scores Market Values Availability of skilled workers Consumer IncomeAvailability of skilled workersWhat is the most important thing that vacancy rate will indicate? Location, location, location How much movement there is in the market How much money the owner will receive Economic value of the neighborhoodHow much movement there is in the marketWhen building materials become scarce due to a lot of building activity what affects a builder most? Supply Market Value Skilled Labor DemandSupplyWhat would a change in sales volume indicate? An increase in real estate licensees More FSBO homes for sale A change in the market Absentee OwnersA change in the marketWhat is the term for the principal of no two properties being the same? Plottage Nonhomogeneous Assemblage ErosionNonhomogeneousWhen a large Company closes its doors and many workers lose their jobs what will this do to the market? It will probably result in a buyer's market It will probably result in a seller's market It will probably result in a lot of construction It will probably result in a lot of Absentee OwnersIt will probably result in a buyer's marketWhich of the following best describes real estate investment? A relatively long term investment A quick way to make money Independent of the property market A short term opportunityA relatively long term investment