Real estate national exam

Prudence just finished paying off the debt on her loan, so the lender released the property's title to her. What clause in her mortgage stipulates this?
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Terms in this set (34)
Prudence just finished paying off the debt on her loan, so the lender released the property's title to her. What clause in her mortgage stipulates this?
Defeasance---A defeasance clause is a term within a mortgage contract that states the property's title (a fancy word for "ownership") will be transferred to the borrower (mortgagor) when they satisfy payment conditions from the lender (mortgagee).
Prior to a certain act's existence, there was no legal protection for women who endured sexual harassment from landlords and sellers when they attempted to obtain housing. What's this act called?
Housing and Community Development Act of 1974
Cambridge Apartments provides an open parking lot for its residents. There is adequate parking, and all spaces are available on a "first-come, first-served" basis. Alton has multiple sclerosis and uses a motorized wheelchair. Must Cambridge reserve a parking place specifically for Alton if he requests?
Cambridge must allow an exception to the first-come, first-served policy for Alton.
Cheryl and Roberto just signed a contract for Cheryl to buy Roberto's house for $235,000. Roberto owes $48,750 on his current mortgage, he's going to replace the old furnace ($800), he's agreed to pay 3% toward closing costs, and he'll pay a 6% commission to his agent. How much in whole dollars will he have left to put down on the condo he wants to buy?
Roberto's closing costs will be $7,050 ($235,000 x 0.03) and commission will be $14,100 ($235,000 x 0.06). If you subtract all the costs given ($7,050, $14,100, plus the $800 furnace, and the $48,750 mortgage payoff) from the $235,000 price, you end up with $164,300.
Walt and Ginger were informed by their landlord that their option to purchase the bungalow they're renting has just been terminated. Which of the following things that can occur is likely to terminate an option to purchase?
They sublet the bungalow for a month without permission.
A lot measuring three-fourths of an acre is for sale. How many square feet is this?
An acre is 43,560 square feet. Three-fourths of an acre is 32,670 square feet.
Harmony is looking at the legal description on her purchase contract. It mentions that the plat of her property is recorded in Map Book 12, page 14, at the county courthouse. What type of legal description is this?
Lot and block
Lawrence is a buyer closing on a home for which he's obtaining financing. Which document will give Lawrence an estimate of the costs he'll likely pay at closing?
Loan Estimate
Morris needs to pay for some repairs made to one of the units in his apartment complex. Which bank account should he use?
The firm's operating account
Margie needs to know the square footage for the first floor of the condo her client is interested in buying. The kitchen is 10 feet by 15 feet, the living/dining combo is 20 feet by 25 feet, and the office and bedroom are each 10 feet by 10 feet. What's the total square footage?
Find the area of each room to get its square footage, then add the square footage of all four rooms. Kitchen = 150 sq. ft.; living/dining = 500 sq. ft.; office = 100 sq. ft.; and bedroom = 100 sq. ft. = 850 square feet.
In the eyes of a lender, when financing a residence, what advantage does an investor have over owner-occupied borrowers?Investors can use rental income to qualify.Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's one purpose of this document?To provide the estimated closing costs for Lawrence's loanYour neighbors build a high-quality addition to their home, increasing its value compared to your own home's value. Because of this, you notice a bump in your property value. Which economic principle is at work here?ProgressionWith the cost approach to value, what is the replacement cost?Cost to build a functionally equivalent improvementWhich of the following describes a right-of-way easement?Land that a railroad company runs its track through--What is it called when all parties sign a contract, but before the seller's acceptance is delivered to the buyer?Acceptance---Acceptance occurs when all parties have signed a given contract. Binding acceptance occurs when the accepted offer is delivered.Don and Becky realized too late that the contract they signed for the sale of their home didn't include any language about a rent-back if the home they're building isn't ready in time. What can their listing agent do?Create a contract amendment with the required language.Which of the following is true about ownership or title to a property?Constructive notice to the public of real property ownership occurs when the deed is recorded.---Recording and possession give the public constructive notice that ownership has changed hands. It also protects the buyer from others' claims on the property.A buyer has a 30-year, $400,000 loan with a 7% interest rate. How much of the first month's mortgage payment is interest?$400,000 ร— 0.07 = $28,000; then $28,000 รท 12 = $2,333.33Your brokerage firm uses pre-printed sales contract forms, but your seller, Marcus, wants to add some language about staying in the house and renting from the buyer for a month after closing. What should you use to add this information?AddendumIn full seller disclosure states, whose responsibility is it to complete the seller disclosure form which will be reviewed by prospective buyers?Seller---In full disclosure states, the seller is responsible for completing a disclosure form.The government's authority at all levels to ensure the health, safety and welfare of its citizens, which includes the control of public land use is the definition of ______.Police power---While eminent domain and condemnation are part of this, police power defines a larger scope of authority.When the Sidells moved into their new home in Shady Acres, they were given a copy of a covenant document that listed restrictions on roofing, siding, fencing, and other visual components on their property. This type of covenant is likely enforced by what entity?Homeowners' associationWhich statement most accurately describes the type of notice provided by recording a change of ownership document?Recording the deed provides constructive notice of the property sale.What's a good policy that a buyer's agent should employ regarding contingencies?Use contingencies judiciously to protect the clients and the deal.---Contingencies should be used where warranted to protect the buyer, but shouldn't be overused. You don't want to kill the deal with too many contingencies.A townhouse is purchased for $475,000. If the transfer tax is $2.00 on the first $1,000. and $0.10 for each additional $100., how much are the transfer taxes?$4,742--The first $1,000 is $2.00. The transfer tax for the remaining $474,000 will multiplied by .001 ($0.10 for each additional $100). So the total transfer tax will be $476 ([$474,000 x .001] + $2).Maxine is purchasing a small craft shop, including the underlying real estate. She applies for a commercial loan from her federally insured bank to complete the purchase. Is Maxine's transaction covered by the Real Estate Settlement Procedures Act?No; commercial and business loans are exempt from RESPA requirements.Sam and Bridget are cousins who jointly own property. They are both named on the deed, they received title at the same time, they have the right of survivorship, and they each have equal interest and undivided rights of possession. What type of ownership do they have?Joint tenancyGunther's gross monthly income is $3,800, and he has no monthly debt payments. The lender's qualifying ratios are 28% for the housing ratio and 36% for the total DTI ratio. What's the maximum housing payment Gunther can afford?$1,368--Calculate the debt and housing ratios that buyers need to meet both lending ratios. While Gunther qualifies for a payment of $1,368 under the total DTI, he only qualifies for $1,064 under the housing ratio ($3,800 x 28%).Charles is selling his property to Seth. Charles is financing part of the transaction for Seth, who will make payments to Charles while Charles retains the property title. What is this an example of?A land contract--A land contract--With a land contract, the seller agrees to provide credit to the buyer for a portion (or sometimes all) of the funds required to close the transaction. The buyer makes payments directly to the seller.Identifying the purpose of the appraisal leads the appraiser to do what next?Identify data needed.Demographics impact the housing market. Which of the following is a true statement?An increase in the number of retirees in a given population would negatively impact the demand for large, single-family homes.Bethany has agreed to purchase Derrick's property using a land contract. Who holds legal title to the property during the term of the loan?Derrick--When a land contract is used to finance the sale, the seller holds legal title to the property until the loan has been repaid, at which point the title is given to the buyer.