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M.SCHOOL Real state class > 50 Questions > Flashcards

50 Questions Flashcards

1
Q

The subject property is a three-bedroom, two-bath home. A comparable property is a three-bedroom, two and one-half-bath home. An appraiser has determined that the extra half bath is worth about $2,200. What adjustment should the appraiser make?

A

Subtract $2,200 from the comparable’s transaction price.

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2
Q

Which of the following is incorrect concerning FHA and VA mortgages?

A

VA is a government insured loan and could be accompanied by an origination fee.

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3
Q

Which of the following liens would take priority?

a. A vendor’s lien filed on December 12, 2017.

b. A mechanic’s lien filed on January 1, 2018.

c. Property tax lien filed on January 14, 2018.

d. A special assessment tax filed on January 13, 2018.

A

c. Property tax lien filed on January 14, 2018.

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4
Q
  1. How is the intangible tax typically noted on the Closing Disclosure Statement?
A

Buyer debit only.

If you see intangible tax talked about in a closing disclosure always debit buyer as is the tax on the new mortgage

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5
Q

Which of the following is an example of a blind ad?

a. Call Suzanna Smith, best sales associate in town 555.201.2435 (cell).

b. Call Bob Blythe, Excel Realty 555.941.2435 (cell).

c. Call Cindy Simon, Sunstate Brokerage 555.201.2435 (cell).

d. Best sales associate in town, call Bob Barker, Townsgate Realty 555.201.2435 (cell).

A

a. Call Suzanna Smith, best sales associate in town 555.201.2435 (cell).

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6
Q

What is a the penalty for a first-time minor violation that is not accompanied by a fine?

A

c. A notice of non-compliance

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7
Q

An unlicensed personal assistant may perform which activity?

A

Hand out objective, written information on a rental property

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8
Q

Two brothers have decided to purchase investment property and are not sure how they want to take title. The brother’s wives have looked into the options and have decided that in the event that one of the brothers die, his wife would like to receive title. With this information, how should they take title?

A

Tenancy in common

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9
Q

A father intended to leave his house to his son and executed a general warranty deed to the property and gave it to his son. Shortly after, the father died, before the deed could be recorded. Which applies?

A

The son has title to the property because title to the property was conveyed when the father delivered the deed to his son and his son voluntarily accepted it.

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10
Q

Which of the following clauses or covenants in a deed states that the grantor owns the property and has the right to convey it?

A

Covenant of seisin

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11
Q

Which expenses associated with a principal residence are deductible for income tax purposes?

A

Property taxes, mortgage interest, points, and mortgage loan origination fees

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12
Q

Amy, Todd, Frank, and Francine all co-own a beach house on St. Petersburg beach. Frank died, and his co-ownership of the property passed, according to his will, to his son. How do these parties own the property?

A

Tenants in common

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13
Q

Which statement is true about the monthly payments on a 30-year fully amortized loan?

A

Initially, interest is the largest portion of the payment

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14
Q

What are the rights flowing through your property called?

A

Riparian rights

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15
Q

If the title company is holding the escrow check, what must be on the purchase and sales contract regarding the title company?

A

The name, address, and phone number of the title company

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16
Q

Missing money in escrow account question #21

A
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17
Q

A broker sold an up-to-date and accurate rental list to a customer on June 10th for $475.00 On June 14th the customer decided not to obtain a rental and then orally demanded, and should receive, how much of a refund?

A

$356.25

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18
Q

Which statement is false concerning the primary mortgage market and the secondary mortgage market?

A

The primary objective of the secondary mortgage market is to create new loans for borrowers to increase the money supply for lenders.

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19
Q

When a broker’s license is suspended or revoked, which does not apply?

A

The sales associates registered under the disciplined broker will automatically have their license status changed to null and void.

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20
Q

Which of the following is the economic indicator that adjusts in an adjustable-rate mortgage?

A

The index

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21
Q

Which of the following methods of surveying property is used in a subdivision where plat maps have been recorded?

A

Lot and block also called the plat method

22
Q

Which of the following types of notice is also called legal notice and is achieved by recording documents in public records?

A

Constructive notice

23
Q

In which of the following mortgage lending theories does the borrower not retain title during the loan period?

A

Title theory

24
Q

If you are at the POB, (point of beginning) and you are headed N90 degrees East, what direction are you headed?

A

East

25
Q

What is not true of an abstract of title?

A

An abstract of title is a complete successive record of a property’s ownership.

26
Q

Concerning the Statute of Frauds, which does not apply?

A

The Statute of Frauds states that all contracts must be in writing to be enforceable.

27
Q

Which of these describes a non-freehold estate that includes a definite specified amount of time?

A

Estate for years

28
Q

Which of the following statements is true concerning continuing education?

A

Actively licensed and inactively licensed sales associates must complete the 14 hours of continuing education.

29
Q

A broker has listed a seller’s property. The seller has disclosed to the broker that the roof leaks. The broker has satisfied his legal obligation if he tells the buyer

A

the roof leaks.

30
Q

Two brokers meet and decide to set commission rates on all sales for one year. Which applies?

A

This is a violation of Anti Trust laws.

31
Q

A broker sold three houses in Florida to a customer that now lives in Chicago. This same customer uncovered an opportunity with someone who might want to buy property from the Florida broker. The customer asked the broker if he would reimburse her for the expenses incurred in convincing the person to buy property from the Florida broker. Which applies?

A

The broker cannot reimburse the customer because the customer does not have an active real estate license.

32
Q

If a property sold for $675,000 and was listed at a 6% commission, what was the sales associate’s check amount if the sales associate is entitled to receive 80% of all commissions earned?

A

$32,400

33
Q

Which of the following is true about taking listing contracts when a licensee leaves a brokerage?

A

If a sales associate takes original listing contracts, he/she could be charged with larceny. If a sales associate takes copies of listing contracts, he/she could be charged with breach of trust.

34
Q

When office space rentals are plentiful, what type of market are we in?

A

A buyer’s market

35
Q

What are the set of guidelines called that must be followed by appraisers?

A

USPAP (Uniform Standards of Professional Appraisal Practice)

36
Q

A real estate brokerage company has entered into a single agent buyer broker relationship with the buyer. In order to show this buyer property that is listed with the same brokerage company for which it is a single agent, in what brokerage capacity may the company work with this buyer and seller?

A

Both the seller and the buyer must transition to a transaction broker relationship before the buyer can be shown the seller’s property

37
Q

Which of the following statements concerning violations of the Fair Housing Act is incorrect?

A

Steering is when sellers are encouraged to list their property based on discriminatory practices.

38
Q

A residential zone requires at least 7,500 square feet per lot. The developer is reserving 25 percent of the land for streets, sidewalks, and a community center. The tract of land for the development consists of 175 acres. How many residential lots are available for development?

A

762

39
Q

What is the effective yield to the lender if the borrower has 5% interest on a loan and purchases 4 points.

A

5.5%

40
Q

A building is 4 stories high and each floor is 100 x 50. I want to put bins in all the space I can. I can’t use 20% of each floor. The bins are 5 x 5. How many bins can I put in the building?

A

640

41
Q

A property sold for $450,000 The sales associate that listed the house is entitled to 70% of all commission earned. If the sales associate’s check was $22,050 what was the property listed at?

A

7%

42
Q

If a lot is 250’ x 300’, street paving costs are $20.00 per running foot, and the city will pay 40% of the paving costs, what will be the assessment to the property owner?

A

$1,500

43
Q

How many acres and square feet are there in the legal description N 1/2 of the SE 1/4 of the NW 1/4 and the N 1/2 of the S 1/2 of the SE 1/4 of the N 1/4 of section 11?

A

30 acres and 1,306,800 square feet

44
Q

Which of the following describes leverage?

A

Leverage is the use of borrowed funds to purchase assets or to finance an investment.

45
Q

How is the binder deposit shown on the Closing Disclosure Form?

A

Credit to the buyer only

46
Q

What is the status of a sales associate’s license if he/she does not complete the required post licensing education prior to his/her first renewal cycle?

A

Null and void

47
Q

How many sections are in a township?

A

36

48
Q

Which mortgage clause allows the mortgagee the right to demand the outstanding loan balance plus accrued interest in the event that the borrower sells or transfers any interest in the property without the lender’s prior written consent?

A

Due-on-sale clause

49
Q

What requirement does not apply regarding dwellings built prior to 1978?

A

Buyers must have the property inspected for lead-based paint.

50
Q

Two close friends own a daycare center as joint tenants with right of survivorship. One owner passed away? Who owns the daycare center?

A

The surviving owner becomes sole owner of the daycare center by operation of law.

M.SCHOOL Real state class (1 decks)

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