Exam Flashcards
An owner hired a construction company to build a swimming pool at a new home. the owner failed to pay the bill once the work was completed and the construction company filed a lien to obtain payment of the debt.the encumbrance created is called:
A mechanics lien
Two lots of the same size are sold on a street. the lot on the corner sells for 20k more than the lot in the middle of the street. what characteristic most likely explains price difference
situs
tenants are still in their rental even though lease expired.. the landlord has given notice to quit and refused to accept rent. they areL
tenants at sufferance
a major diff between freehold and non freehold estates is that all FH estates
are of indeterminable duration
the land description T3N, R4W Principal Meridian refers to what method of property description?
Rectangular survey
at the time of harvest, crops that require annual planting are generally considered
personal property
an easement can be terminated by
merger of titles
if conditions for purchase are included in a deed and these conditions are violated, what is the penalty?
return of property to OG owner
a deed restriction is applicable to the activities of
all owners, present and future
a landowner wishes to build a store in an area zoned for residential use. what would most likely be used to obtain permission for this store?
conditional use permit or zoning variance
the terms “littoral”, “riparian”, and “appropriative” refer to
water rights
a lawsuit for inverse condemnation may be brought by
a homeowner
an escheat occurs when
a property owner dies w/o heirs or a valid will
an Environmental Impact Statement (EIS) does what?
projects the impact on the environment of a proposed project
What approach MOST reliably estimates the sales price of a single family residence?
Market Data
Straight line method is used to calculate the reproduction or replacement cost of a building. True or false?
False. Straight line method calculates depreciation
Which is NOT a consideration in the definition of Market Value?
A. Buyer and seller must be unrelated and acting without undue pressure
B. Buyer and seller must agree to appraised value
B
according to the principle of progression, a three bedroom, one story home is MOST likely to bring highest sales price if located in a neighborhood in which
most homes are larger than sale home
An appraiser MUST be licensed or certified to handle Federally related work on residential property valued at more than…
250k
when more than one approach to value is applied to a property and different indications of value are produced, how should the final estimate of value be determined?
Reconciliation
a competitive market analysis takes into consideration
square footage of the subject property
an adjustable rate loan should include negative amortization. True or False?
False
a borrower has defaulted on the mortgage. The mortgage contained an acceleration clause. This permits the lender to..
demand immediate payment of entire note
The FHA functions most liek
an insurance company
a buyer made an offer on a property that was listed at $350k. Se wanted to put $35k down and make payments to the seller, allowing the seller to retain title until principle was paid off. The seller accepted and the buyer became a
vendee
the purpose of usury laws is to regulate
interest rates charged by lenders
when is flood insurance REQUIRED in order to obtain a loan?
when property is located in a Flood Hazard Zone
Which of the following statements about discount points is FALSE?
A. they are a function of the marketplace
B they ar competed as a percentage of the selling price
B
Federal Truth-in-Lending laws are also known as
Regulation Z
a couple listed their home with a broker. after 2 mo. the seller found a buyer and the sale closed. the seller was not obligated to pay a commission to the broker. the listing ws most likely
an exclusive agency listing
a broker has brought a ready, willing and able buyer to a seller. in MOST listing contracts, the broker has earned his commission when
the seller accepts the offer
the amount of commission to be paid is
agreed upon by the seller and agent on the contract
a broker supplies the financing for a project to build condos with the stipulation that he has the exclusive right to sell the completed condos. which of the following BEST describes this relationship?
agency coupled w/ interest
a broker lists a property with a listing contract allowing subagency and dual agency. one of the broker’s salespersons shows the property. the salesperson would be classified as
a subagent of the seller
a broker, acting as agent for the seller, presents and offer to buy from the broker’s former college roommate. the broker knows that the buyer will increase the amount of the offer if the seller turns down the offer. when presenting the offer, the broker should…
tell the seller that the buyer will pay more
which of the following events would automatically cancel a listing agreement?
property owner’s death
the day after a broker’s listing on a house expired, it ws listed w/ another broker and offered in the MLS. Several days later, a third licensee called the first broker and asked for the key to show the home. The broker should inform the caller that
he is no longer the listing agent
a realty firm has just entered into an agreement to represent a home builder i the sale of a new subdivision. the firm has located several potential buyers and five homes have been sold to purchasers that the firm’s agents have contacted. the realty firm has a n agency relationship with…
the builder
At the time of listing, the seller tells the listing agent that they are moving because the neighbor has loud parties every weekend. the agent should
tell potential buyers about parties
the real estate broker who is listing a house for sale should personally verify
the number of square feet in the building
the dept of housing and urban development estimates that most private homes built before 1978 contain potentially dangerous levels of lead. Because of this, some Federal agencies, such as FHA,`
require the buyer to acknowledge disclosure of the presence of any known lead paint
a seller mentions to his agent that the previous owners of his property may have dumped hazardous waste on the site. under the comprehensive environmental response, compensation, and liability act (cercla), who is liable for damages from the dumping prior to the sale of the property?
the seller
without checking the facts, a broker who is the seller’s agent tells a buyer that the property taxes in a particular neighborhood are among the lowest in the area. the buyer relies on the broker’s statement and makes an offer on a house in said neighborhood. before closing, it is determined that the taxes are actually among the highest in the area. the buyer could seek to rescind the contract on the basis of
misrepresentation
a seller tells the listing agent that her home was treated for termites 10 years ago, so there are no termites now. before listing the property, the agent should
tell the seller to disclose the termite treatment on the property disclosure.
the document used in a real estate sale that establishes the legal rights of the buyer and the seller is the
purchase contract
a prospective buyer made an offer to purchase a property. While the owner was reviewing the counteroffer, the owner received a better offer. the owner can accept the second offer if
the owner withdraws the counteroffer before it is accepted
a company agrees to lease a property to be used as a gambling casino. state laws prohibit gambling. this particular contract would be legally defined as
void
a contract has been drawn which obliges the sellers to convey the title to their land to the buyers if the buyers come up with 22k on or before dec. 31st. this is called
an option contract
prospective buyers made an offer on a property. the seller did n to accept, but made a counteroffer. the prospective buyers signed the counteroffer and the real estate agent delivered their acceptance to the seller. in the interim, the same buyers had found another house that they liked better and made an offer on it, which was accepted. which contract is valid?
Both
a written agreement in which a purchaser agrees to buy and a seller agrees to sell is called
a contract
when one of the parties to an agreement fails to perform one of it’s conditions, that contract is deemed to be
breached
the purpose of requiring an earnest money deposit in a real estate consoles contract is to
provide evidence of the buyer’s intention to carry out the contract
the real estate contract for a specific property for use as an unlicensed whiskey sales operation who was forced to terminate. the termination was the result of
impossibility of performance
a couple signed a lease on an apartment for a period of 1 year. the lease does NOT contain an automatic renewal clause. the couple plays to move out at the end of the lease rather than renew it. How much notice must they give to comply with the lease term?
no notice required
a judgement has been properly recorded. any subsequent purchasers, whether they have actually examined the record or not, have been given
constructive notice
MOST closed real estate transactions should be reported to the IRS. REQUIRED info includes the seller name(s) and social security number(s) and
the sales price
depreciation is calculated based on
the cost of the building only
special tax assessments are NOT usually prorated at closing, true or false?
true
the buyer is assuming a mortgage presently on the property in the amount of 110k. what is the adjustment made at closing?
credit buyer 110k, debit seller $110k.
at the closing on June 15, the buyer is assuming a mortgage presently on the property, on which the monthly interest charge is currently $600. the seller has made the payment due on june 1. assuming a VA mortgage, what’s the adjustment made at closing?
debit seller $300, credit buyer $300
a will has been drawn up, leaving the family homestead to the owner’s granddaughter. Once that has been done, the owners may
make any changes they wish through a codicil or a later will
which of the following may be considered prima facile evidence of discrimination by a broker?
failure to display the equal housing app. poster at the broker’s place of business
errors and omissions insurance covers the broker for
unintentional misreprisentation
according to the TinLact, if any “trigger terms” are used in an ad, the prepayment penalties and rebates disclosure MUST appear in the ad too. True or false?
false
a managing broker can be held responsible for
all real estate activities of salespersons
antitrust laws prohibit competing brokers from receiving compensation from both the buyer and seller. T or F
F
a salesperson qualified a minority couple w 2 kids and defined their price range between 110k and 120k for the 3bd house they wanted. they asked to look at 2 listings in a non minority neighborhood. the salesperson didn’t show them the properties bc they were priced under 90k and had only 2 small bds. did the salesperson act appropriately or nah?
nah, bc it is appropriate to show any property for which the buyer is qualified.
earnest money should be deposited into a trust accoutn
in a timely manner according to state laws
the buyer wants to make the purchase offer contingent on a complex mortgage arrangement. the buyer’s agent who is drawing up the contract should
suggest the buyer ask a lawyer to furnish the wording
the statement “this property has the most beautiful views in the neighborhood” is and example of
puffing
when is racial discrimination in the rental of rooms or apartments permitted?
under no circumstances
a buyer is getting a fully amortized loan for 220k. the bank will give the buyer the loan for 15 years at 5.5% or for 30 years at 6.5%. to the nearest cent, what is the difference between the monthly payments for these 2 loans? (USE AMORTIZATION TABLE)
$409.20
the sellers have agreed to give the buyers of an allowance of $16.95 per sq yard to retile the kitchen. If the kitchen is 10ftx14ft, how much will it cost the sellers (to the nearest dollar)
$264
a couple bought a rental house for $194k. it’s assessed value was $180k. If the tax rate is $1.5 per$100 of assessed value, what is the monthly contribution the lender will require for taxes?
$225
a buyer wants to purchase a home for $60k. the lender appraises the home for $58k and offers to finance it with an 80% loan to value loan, charging a loan OG fee of 1.5pts. how mjcuh will the origination fee be?
$696
a realty co. recei ed an $8.4k commission for the sale of a house. the broker’s commission was 6% of the sales price. what was the sales price of the house?
$140k
ownership of common stock in a corp. gives
an interest that is classified as personal property
a property management plan may serve different purposes for different owners, and generally has to strike a balance between a preservation of the property’s value and generation of income. which of the following owners would MOST likely prefer a property manager who emphasizes cats flow over th maintenance of value?
an individual entrepreneur who owns several apartment buildings
a major reason for buying and owning a condo rather than a detached single-family home is that
a condo tends to be more affordable
