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Colorado Real Estate > 303 National > Flashcards

303 National Flashcards

1
Q

1) The term “seisin” may refer to which of these?

A

c) General Warranty Deed

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2
Q

Executed” means that the Contract has been

A

d) Completed

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3
Q

A father dies and leaves a large piece of investment property (vacant land) equally to all of his children. During the probate proceedings, it is discovered that the father did not own the property alone; he had only 50% undivided interest with another investor as tenants in common. What will be the disposition of the property?

A

b) The children will each inherit their proportional shares but only of the father’s half.

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4
Q

D has adversely possessed a land parcel in Idaho for 25 years, which is the prescribed period for claiming the adverse possession in that state. D now wants to perfect ownership. What is the next step?

A

c) File a suit to quiet title

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5
Q

A history of all instruments on record affecting J’s land is called a(n):

A

b) Abstract of title

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6
Q

What is the value of a property where the gross rent multiplier is 170 and the annual rent is
$12,000?

A

$170,000

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7
Q

Which of these terms does NOT relate to condominiums?

A

a) Proprietary lease

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8
Q

As easement allowing access to one’s landlocked parcel over land between a road and the parcel would be an:

A

c) Easement by necessity

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9
Q

The power of a city to require permits and compliance with building code is:

A

c) Police Power

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10
Q

A state government has a department called the Bureau of Unclaimed Property to manage property for which no owner can be located. This is most closely related to the power called:

A

b) Escheat

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11
Q

Which use would NOT likely be able to claim eminent domain to obtain land?

A

c) Expansion of a plant facility by the largest employer in the city

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12
Q

If the owner of a commercial property makes major modifications to the interior structure of the property without obtaining the proper approval of the local building department, what is the WORST thing that could happen?

A

c) The local officials may require the modifications to be removed.

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13
Q

Which of these would appear in a title search of the property?

A

d) Deed restrictions

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14
Q

Which event will cause a tax-deferred exchange to become partially taxable?

A

c) Debt relief

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15
Q

A special type of zoning that allows a builder to use little or no traditional setback while still complying with density requirements (and often found in Planned Unit Development) is:

A

a) Cluster zoning

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16
Q

Which discrimination is allowed by the 1968 Fair Housing Law?

A

c) Source of income

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17
Q

A tax rate of 7 mills can be expressed as:

A

d) 0.007

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18
Q

If a seller is carrying the financing for a buyer for several years, the IRS wants assurance that the interest rate on that note is not below market rates. These rules are addressed under the concept of:

A

b) Imputed interest

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19
Q

A statement of compliance with fair housing laws is required in every broker’s office in the form of a:

A

d) Poster

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20
Q

Which term does NOT deal with taxation?

A

d) Prior appropriation

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21
Q

Which of these special assessments would not be assessed on an ad valorem basis?

A

c) A special assessment for sidewalks

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22
Q

Which of these brokerage functions would be performed by a broker when the brokerage is closing its own transaction?

A

a) Preparing a 1099-S for the sale of the seller’s property

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23
Q

Is a man who refuses to sell a home to a buyer because she is white violating the law?

A

a) Yes

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24
Q

Which of these is CORRECT regarding taxation?

A

b) A tax assessed to property according to its value is an ad valorem.

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25
Q

Which exchange will NOT qualify as like-kind IRS code section 1031?

A

b) Personal property

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26
Q

P wants to buy a home using VA eligibility, if any. Having a VA entitlement and wishing to buy a home, P may:

A

d) Obtain 100% financing for the new home

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27
Q

Which of these gives basic employment to an area?

A

b) A military base

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28
Q

Which appraisal approach is appropriate to estimate the repairs needed to a restaurant after a fire?

A

a) Cost

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29
Q

Which factor is most harmful to be used for a comparable?

A

a) The comp was sold 14 months ago.

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30
Q

The purchaser has made an earnest money deposit in the agreement, and the buyer and seller have agreed that the seller is to hold it until close of escrow. The proper entry on the closing statement is:

A

b) Credit buyer and debit seller

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31
Q

An appraisal represents:

A

b) An opinion of the value of the property on the date of the appraisal inspection

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32
Q

A property is encumbered by a first mortgage, a second mortgage, a third mortgage and tax lien. The second mortgagee forecloses and the third mortgagee buys the property at the foreclosure sale. Who owns the property subject to which, if any, remaining liens?

A

d) Owner - 3rd mortgagee. Remaining liens - 1st and tax

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33
Q

Regulation Z deals with disclosure of:

A

c) Costs of credit

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34
Q

An appraiser is examining the subdivision layout and proximity to shopping and schools. For which part of the appraisal is this relevant?

A

a) Neighborhood analysis

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35
Q

J has mortgage in which he received regular monthly payments from the mortgagee. What type of loan does J have?

A

c) Reverse annuity mortgage

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36
Q

An agreement between two lenders with the same property as collateral agree to change the priority of their lien is a:

A

b) Subordination agreement

37
Q

Foreclosure by Mortgage Company Inc. would NOT be triggered by which event?

A

d) The borrower fails to pay income taxes on income derived

38
Q

The seller has received prepaid rents on the property in the amount of $450. The closing date is the 15th of the month. Which of these is the property entry on the closing statement?

A

a) Debit seller $225, credit buyer $225

39
Q

The buyer has agreed to assume the prepaid insurance on the property in the amount of
$382. The policy expires next June 30th, and the close of escrow is October 22, 1991. Using a 360-day year for prorating, what is the correct entry on the closing statement?

A

d) Debit buyer $263.16, credit seller $263.16

40
Q

Four brokers meet to assign market segments so each can specialize in a certain price range. This is:

A

b) Illegal because of federal antitrust laws

41
Q

J has offered property as collateral for a loan but maintains possession of the property.
This is an example of:

A

c) Hypothecation

42
Q

What agency ensures compliance with the Real Estate Settlement Procedures Act?

A

a) HUD

43
Q

A broker’s duties include:

A

a) A fiduciary duty to the principal

44
Q

Which of these is NOT prorated at the closing of an assumption sale?

A

a) Mortgage impound (or escrow) account

45
Q

The buyer and seller have agreed to an assumption of the existing first deed of trust, and the seller has agreed to carry back a second deed of trust. The proper entries on the closing statement are:

A

b) Debit seller for both loans, credit buyer for both loans

46
Q

The seller has a 320-gallon fuel oil tank that is 70% full of the day of closing. The buyer had agreed to pay for the remainder of the oil in the tank. Current fuel oil prices are $1.12 per gallon. What is the amount of the adjustment at closing?

A

d) $250.88 debit to buyer

47
Q

A new loan in the amount of $76,500 has an annual interest rate of 9.75% and a term of 30 years. The buyer wishes to make payments on the first of the month. The closing is set for September 23, with the first payment due on November 1. What entry is required on the closing statement to accomplish this? Use a 360-day year for prorating

A

a) Debit buyer $165.75. Logic 76,500.0975=7,458.75/360=20.718758 days= $165.75 Buyer makes payments so he debits.

48
Q

In encouraging salesperson productivity, a strong broker would:

A

c) Provide programs to motivate associates, such as special classes and marketing strategy sessions

49
Q

Which of these is NOT subject to compliance with the Real Estate Settlement Procedures Act (RESPA)?

A

a) A purchase money loan from the seller

50
Q

A 15-year mortgage paid and released is:

A

d) Executed

51
Q

A broker who employs more than 10 salespeople must:

A

c) Be responsible for the conduct of the sales people

52
Q

Which of these is a specific statutory lien?

A

b) Mechanic’s lien

53
Q

A vendee to a contract for deed assigns her interest in the contract to an assignee with the vendor agreeing to release the assignor of all liability on the contract. What term best describes what has happened?

A

d) Novation of the parties

54
Q

Changes to a contract in escrow:

A

b) Should be signed or initialed by both parties

55
Q

Under which circumstances is an agency terminated with no liability to either party?

A

b) Expiration of the contract

56
Q

What is the commission rate on a sale of $129,750? The commission was $4,541.25.

A

a) 3.5%

57
Q

If a parcel neighboring a listed property has recently been rezoned commercial- professional, the out of town seller should be notified of this fact because of the agent’s duty of:

A

c) Disclosure

58
Q

Which licensee would be construed as an independent contractor of the brokerage?

A

a) A salesperson in general sales

59
Q

Salesperson K of Westside Realty has listed seller R’s home. Salesperson W of Eastside Realty has a buyer brokerage agreement with buyer J. Which statement is CORRECT?

A

c) R is Westside Realty’s principal

60
Q

J is a broker representing her investor client B, in acquiring a fourplex. Her duty in the transaction is to:

A

d) Seek the lowest possible price

61
Q

The Statute of Frauds requires that all of these must be in writing in order to be enforceable EXCEPT:

A

c) A short term lease

62
Q

Broker J has a listing on a large piece of acreage. The lot lines are very irregular and impossible to measure without a complete survey. J has heard rumors that the parcel is not as large as the seller believes it to be and that the fence along the back actually encroaches upon the next parcel. J is showing the land to a prospective purchaser. J should?

A

d) Inform both the buyer and seller that there may be some questions of survey

63
Q

J listed a home with broker F on an Exclusive Right to Sell Listing. J sold the property before the Listing expired to his brother-in-law S. Does J owe F a commission?

A

a) Yes, because the Listing provides for him to receive a commission on any sale

64
Q

A void contract is which of these?

A

b) A verbal contract of Real Property

65
Q

Which of these contracts is unenforceable?

A

a) A contract with a minor

66
Q

Which type of insurance is customary for a broker to require of the salespeople in the brokerage?

A

d) Errors and omissions insurance

67
Q

A portion of a township which is square with mile long sides is called a:

A

c) Section

68
Q

The rights of a landowner to use waters on an adjacent stream or river are:

A

d) Riparian rights

69
Q

The grantor’s promise to obtain and deliver any instrument needed to make the title good is the covenant of:

A

d) Further assurance

70
Q

A primary claim or interest anticipated by a title search is a:

A

d) Cloud

71
Q

Title passes from the grantor to the grantee:

A

d) When the seller signs the warranty deed and gives to buyer

72
Q

According to RESPA, lenders must provide:

A

b) A booklet explaining all the costs involved in owning a home

73
Q

All of the following liens must be satisfied in order to transfer clear title EXCEPT:

A

d) Assumed mortgage

74
Q

A specific lien is:

A

c) Mortgage

75
Q

The three major evidences of title are:

A

d) Abstract and opinion, Torrens certificate, title insurance

76
Q

Emblements are considered:

A

d) Property of the tenant farmer

77
Q

Crops that are growing in a field on a land purchase contract:

A

d) Are negotiated as part of the contract

78
Q

Jim offers to pay anyone $100 to mow his lawn and trim the bushes. This is an example of:

A

d) Unilateral contract

79
Q

A recorded legal document that gives constructive notice that an action affecting a certain property has been filed in court:

A

c) Lis pendens

80
Q

The buyer’s legal procedure to enforce a contract is:

A

d) Specific performance

81
Q

A listing contract under which the broker’s commission is contingent on producing a ready, willing and able buyer before the property is sold by another broker or by the owner is a:

A

d) Open listing

82
Q

A contract may be renegotiated after acceptance if the:

A

a) Inspection reveals items that need repair

83
Q

Per contract, a home inspection is required on:

A

d) Home inspections are not required

84
Q

An exclusive right to buy contract (buyer agency) may:

A

d) All of the above

85
Q

On a purchase contract, the following are considered to be parties to the contract:

A

a) Buyer, seller

86
Q

A seller hires broker A under the terms of an open listing contract. Broker B would not agree to list under an open listing agreement, so seller enters into an exclusive right to sell list agreement with broker B. Broker A produces an offer to purchase which is accepted by the seller. The seller must pay:

A

c) Full commission to both broker A and broker B

87
Q

The law that requires real estate contracts to be in writing to be enforceable is:

A

a) Statute of Frauds

88
Q

Broker A listed a property and later found out that the seller’s doctor had declared her incompetent. The listing agreement is now:

A

d) Voidable

89
Q

Broker A takes a six month listing agreement beginning January 1. On February 22, the seller informs broker A that she no longer wishes to sell. Which of the following is true?

A

d) The seller may be responsible for broker’s expenses

Colorado Real Estate (28 decks)

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