Exam Flashcards
A suit in court to force a party to a contract to complete the requirements of the contract is called a suit for
Specific performance
The best way to avoid legal problems when preparing sales contracts is by
Putting all terms in writing
True / false _ homosexuals are Not a protected class under federal fair housing law?
True
When a mortgage is used in a real estate transaction, the evidence of the principal obligation is the
Note
In the government rectangular survey system, section his located due:
East of section 11
A mortgage broker -
Acts as an intermediary
An owners’ policy of title insurance continues to be in force
As long as the insured has liability
At an open house, an interested buyer asks the listing agent a number of questions. Can the agent tell the interested buyer why the sellers are moving?
No
True/false -radon is a liquid released the in soil?
False
Ceilings sprayed with a fluffy, stringy material may indicate the presence of:
Asbestos
The absence of what would invalidate a deed?
Delivery
Which type of interest is usually charged when financing a house?
Simple interest
When presenting an offer to a seller and the seller has legal questions about the contract, the real estate professional should?
Advise the seller to consult a lawyer
A seller engages a real estate broker to find a buyer ready, willing, and able to purchase the seller’s parcel of real property. The seller executes and delivers to the broker an exclusive right-to-sell employment contract. A few weeks prior to the expiration date of the employment contract, the seller decides to revoke the contract before any sale occurs and prior to the broker finding a buyer ready, willing, and able to buy the property. The owner:
Can revoke this contract but could be liable for damages
Is recordation an essential element for a lawfully enforceable contract?
No
The substitution of a new contract, which terminates and replaces an existing contract, is called:
Novation
A money judgment of the court, when recorded, always becomes an
Involuntary lien
What has priority claim over a previously recorded trust deed?
Unpaid property taxes
The taxes are $858.92 for January through December 31. The taxes are paid in arrears. The closing is July 16, and the buyer owns the date of closing. What is the debit and credit?
$461.23
$858.92 ÷ 365 = $2.353205
Seller has owned 196 days x $2.353205 = $461.23
Debit the seller and credit the buyer $461.23
The period over which a property may be profitably utilized is known as?
Economic life
Who holds the title to real property when a mortgage is given?
Mortgagor
If a seller accepted an offer but changed the date of possession and initialed that change - what would happen?
It would become a counteroffer, subject to acceptance by the buyer
A buyer asked a listing broker when a property line was. Not knowing exactly, the broker estimated the location of the line. After closing, the buyer discovered that the actual location the of line was 3 feet inside where the broker estimated. Is the listing broker liable to the buyer?
Yes, brokers should only make statements they are sure are true.
An escrow company acts as an
Agent for both the buyer and seller
The deed covenant that obligates the grantor to perform any acts necessary to protect the title conveyed is called the covenant of
Further Assistance
Certain economic principles are of considerable importance in the valuation of real estate. The principle that no “buyer will pay more for a product than the price be can pay for a reasonable duplicate”is known as the principle of:
Substitution
A property on a lake is closing on August 1st. A boat dockage feel due to the homeowners association, for $240 for a six-month period, from July 1 to December 31 is due September 1I and will be paid by the buyer. What entry appears on the closing statement?
Credit to buyer $40
$240 ÷ 6=$40 per month X 1 month (July 1-July 31) = $40 credit to buyer
Taxation is:
One of the governments rights
A title plant is a:
Collection of real estate records
A house has an assessed value of $142,000. The property is taxed at 80% of the assessed value at a rate of $2.12 per $100. If the assessed valuation increased by 18%, what is the amount of taxes to be paid on the property?
$2,841.82
$142.000 x 1.18 = $167,560 increased valuation
$167,560 x 0.80 = $134,048
New tax basis assessed value X tax rate = annual taxes
2.12 ÷100 =0.0212
$134,048 x 0.0212 = $2,841.82 annual taxes
Is providing for control of rents a type of zoning control?
No
The property manager working for the landlord must notify the potential tenant of:
Environmental contamination
Two appraisers were asked to appraise an apartment property. Both arrived at the same net income, but the first appraiser used a capitalization rate of 6%, while the second appraiser used a capitalization rate of 8%. In this case, the property with the higher cap rate will have a?
Lower value
-The more an investor wants in return on a property, the less he or she can pay to buy it. Therefore, the higher the cap rate, the lower the value
The requirement that a contract not be for an illegal purpose or against public policy is referred to as:
Legality of object
The broker working for the buyer must tell the seller-
If the buyer cannot qualify for a loan.
In law, a trade fixture is:
Personal property
The Do Not Call rules apply to telephone solicitations made:
Both in-state and state-to-state
The right of the government to impose taxes on land is called the right of?
Taxation
If a seller netted $315,180 after paying closing expenses of $6,260, an existing mortgage balance of $430,000 and a 7% commission, how much was the sales price?
$808,000 Looking for Whole (Sale price) $315,180 + $430,000 + $6,260 (P) 100% - 7% (R) Sale price $_ (W) W= ($315,180+$430,000+ $6,260) ÷ (100%-7%) W= $751,440÷93% W= $751,440÷ 0.93 W= $808,000
When the parties to a contract have fully performed the terms, the contract may properly be described as:
Executed
The principal broker at XYZ Realty has told hers salespeople to try to only sign listing contracts that give the firm the most protection. In this case, the salespeople should be trying to get what type of listings?
Exclusive right-to-sell listings
In researching records at the county clerk’s office, a first mortgage and a second mortgage on the same piece of property can usually be distinguished by:
Date of recording
The mortgage insurance premium on an FHA loan is paid by the:
Mortgagor
