Exam 2 Flashcards
When compared to FHA loans, conventional loans off the borrower…
lower loan to value ratios
The borrowers mortage is payable in monthly installments that include principal and interest over 15 years, the last payment is a larger amount than the regular monthly payments. This is known as a…
Ballon mortgage.
Effective delievery of a deed depends upon the…
Intention of the grantor.
An appraiser seeking to find market value would be concerned with all the following except…
original cost of the property.
Whose obiligation is it to disclose lead based paint on homes before 1978?
The seller
A form of real property ownnership with the right of occupancy and use of specfic property for a specific portion of each year for either a fixed number of years or forever?
Timeshare
A mortgage broker acts as a…
intermediary.
A voidable contract is…
enforeable, but is subject to rescission by one of the parties to the contract.
Trust accounts hold…
funds not belonging to the firm.
As a listing agent, what obligations do you owe to unrepresented buyer?
Honesty and fairness.
What is market cap and how is it calculated
See example
A declaration made by a person to an official stating that a deed has been freely and voluntarily executed is called…
An acknowledgement.
The escrow agent represnts…
both the buyer and the seller.
If there is a default on a mortgage, the mortgagor, after the foreclosure sale, may have the statutory right of…
redemption
A valid deed must name the…
Grantor and Grantee
An exlusive agency listing is NOT…
the owner must pay a commission if the property is sold directly by the owner.
Consideration in a contract:
May be an exchange of promises.
The main north and south line in a government survey from which townships are located is called as…
Principal meridian
An established business relationship (ERB) exists if the consumer was involved in a transaction with the company during the previous…
18 months
Who is responsible for the buyers actions if they fail to produce the money for a cash offer?
The buyer
Which form of agency gives the agent the broadest powers to act for the principal?
Universal agency
Senior housing may refuse to rent to families if…
80% of the units are occupied by one person over the age of 55.
A seller mentions over the phone to the listing agent that she is willing to take less then the current sales price. The listing agent tells a REALTOR marketing group: “Bring any offer. The seller will take less then the asking price.” Did the agent break her fiduciary duties?
Yes, the seller did not get give the agent written permission to share confidential information.
An appraiser was hired to prepare a feasibility study for adding a swimming pool to a 24 unit apartment building. What basis of appraising would be used?
Contribution
If a seller has already accepted one offer and later accepts another offer on a contingent basis, this contract is called a…
Back up contract
If there is a disagreement concerning assessed value of real property the burden of proof is upon the…
taxpayer
When are licensed real estate professionals allowed to discriminate?
Never
All of the following are a type of zoning control except…
Rent controls
To earn a commission, a listing broker with any exclusive listing must procure a ready, willing and able buyer at the seller’s listing terms and…
nothing else.
When a property is sold “as-is” who is liable for disclosing any known defects in the property?
The seller only
A buyer pays $45k for a lot. Five years later, he puts it on the market for 20% more than he originally paid. The lot then sells for 10% less than the asking price. What is the selling price of the lot?
$48.6k
A remedy in court compelling the seller to sell the property is known as..
specific performance
Prohibiting the sale of property based on the buyers race is..
Invalid, even if owner’s agreed.
Which of the following statements best describes the concept of land owernership?
Ownership of the property is to the sky above and downward to the center of the earth, as well as the surface.
If a seller accepted an offer but changed the date of possession and initiated that change…
it would become a counter offer, subject to acceptance by the buyer.
Advertising property or services by real estate professionals even on social media should at least include…
The brokerage firms name
A person who hires or apoints an agent is called the …
principal
The process used to take private land for public use is known as…
condemnation
Which of the following had priority claim over a previously recorded trust deed?
Unpaid property taxes
The best description of a contract is…
An agreement between competent parties and based on legal consideration that creates legally enforceable duties and obligations.
Closing is June 12 for the current year. The water bill is a flat rate and is paid in arrears. The bill is $41.69 for the period June 1 through June 30. The buyer is to pay the date of closing. What is the debit and credit?
$15.29
All of the following concerning real estate are true except…
A promissory note is the security for the deed of trust.
All of the following are a necessary element in the formation of a contract except…
performance
The fact that land has a number of important uses is the basis for the essential element of value known as…
utility
An option in a contract by which the owner of property gives another person the right to purchase his or her property for a stated sum within a given period of time is…
A voluntary encumbrance
A property manager representing the landlord must…
avoid giving false information to a tenant.
The promissory note must contain an acceleration clause and a(n)…
Prepayment clause
If a commercial property sold at a court foreclosure does not sell for an amount sufficient to satisfy the mortgage loan debt, the mortgage may obtain…
a deficiency judgement
The phrase “time is of the essence” is most likely to be found in a…
sales contract
The length of a safety clause in a listing agreement is determined…
negotiation between seller and broker.
A sale closes on Feb 12, with the seller having the day of closing. The buyer is assuming the seller’s mortgage, which has an outstanding balance of $28k as of the closing date. The last mortgage payment was made on Feb 1. The annual interest rate of 7.75% and interest is paid in arrears. What interest proration appears on the buyers closing statement?
$72.36 credit.
A deed of trust is normally used to…
secure a debt with real property.
The practice of inducing panic selling based on race or another minority group is known as…
blockbusting
The balance of the loan was $150k after the last payment, and the closing is scheduled for tomorrow. If the prepayment penalty is 0.5% what would be reflected on the seller’s side of the settlement statement?
A debit of $750.
All of the following are prorated at closing except…
Sale price
A second offer made on a property prior to the seller’s acceptance of the first should be…
Submitted to the seller immediately.
If a seller signs an offer made by a purchaser, the first thing the listing agent should do is…
Give a copy to the seller.
Liquidated damages are most likely to be found in which of the following?
Purchase contract
The deed covenant that states that the grantor owns the property and has the right to convey it is the covenant of…
selsin
In what corner of a township would you find Section 1?
Northeast corner
Reconcilliation is best defined as…
the appraiser’s weighting of each property and approach to value.
A house sells for $165k. If the seller agrees to pay 5.5% discount points on a $155k mortgage and the broker’s fee is 6%, how much did the seller net?
$146,575
When the property is sold “as-is” the seller must disclose…
Any known material defects.
The purchase contract specifies that the listing brokerage and the seller may keep the earnest money if the buyer defaults. This stipulation is known as…
liquidated damages
The column of townships running north and south is numbered according to its distance from the principal meridian and is referred to as…
Tracts
