Exam & Quiz Questions Flashcards
A licensee preparing a competitive market analysis (CMA) has information on a comparable property that is similar in all respects to the subject property except that, while the subject property is ten years old and has two baths, the comparable property is five years old and has one bath. In this case, the licensee should adjust the:
sale price of the comparable property, down for the age and up for the number of baths
A portion of an advertisement reads: “New four-bedroom, two-bath home for sale in a family neighborhood. Yours for only $1,100 per month.” This advertisement violates the provisions of the:
Truth in Lending and Fair Housing Acts
If the purchase price on a condominium unit is $60,000, the amount being mortgaged is $55,200, and there are 2.5 points on the mortgage, which of the following percentages is the loan-to-value ratio on the following transaction?
92%
mortgagor
borrower
example of installment sale
seller financing
acceleration clause
allow lender to demand paid in full upon default of loan
mortgage lien
pledge of the real estate as collateral for a loan
primary purpose of secondary mortgage market
buy loans on real estate
something a lender can consider when deciding to lend money
debt load (DTI)
chattel mortgage
mortgage on personal property
mortgage insurance premium (MIP) charged on which loans?
FHA loans
financial points are
calculated on the loan amount
amortizing mortgage, borrower pays
both principal and interest in each payment
down payment requirement of conventional loan
20%
who is required to abide by the terms of an offer?
neither buyer nor seller
contract can be voided by: revocation, rejection, accord/satisfaction, all of the above
accord and satisfaction
is a listing agreement a bilateral or unilateral agreement?
unilateral
Seller is required to pay commission on ANY sale during the agreement of a:
exclusive right to sell
are carryover clauses required in a valid brokerage agreement
no
seller brokerage agreement is between
seller and brokerage agency (listing company)
brokerage agreement establishes
agency or non-agency relationship
purchase and sale agreement is between
buyer and seller
RESPA act covers which type of property?
1 to 4 residential units
Foreign Investment in Real Estate Tax Act requires _____ of sales price be withheld from the closing proceeds for property that is sold by foreign nationals
10%
Familial status provides protection against: marital status, being divorced, having children under 18, all of the above
Children under 18
Civil Rights Act of 1866 prohibits discrimination based on
race
inducing a person to sell based on entrance of a protected class into a neighborhood
blockbusting
Property that would be covered by Americans with Disabilities Act
office building (public building)
example of boycott
15 RE companies getting together and deciding not to do business with a specific RE company
NOT a triggering term in Truth in Lending Reg Z in terms of payments/price
CASH PRICE
Married couple, joint return are excluded from fed income taxes on a max of ________ profit on the sale of their home
$500,000
To qualify for exclusion of federal income taxes up to the max amount, one must live in the property ____ out of the past 5 years.
2
Cap rate for property sold $940,000 with an NOI of $41,000
4.4
Property value with a gross income of 74,000 and GIM of 6
444,000
Value of 20 year old building that would cost $800,000 to build today. Depreciation = %40. Land value = $100,000
$580,000
Value placed on a property when taken by eminent domain
condemnation value - must be fair market value
Difference between modular and mobile
mobile has a metal undercarriage
Sill
attached to the top of foundation walls
functional obsolescence is loss of value due to
4 bedroom only having 1 bathrooms
cost approach best suited for
school building (the “other category”)
True or false: cap rate is a rate of return
true
True or false: sq footage of a building is considered when determining value by income approach
false
Effective gross income equation
gross income - vacancy and collection losses
flashing is found
where a chimney and roof meet
GLAAG of non-dormered cape
multiple area of first floor by 1.5
True or false: Colonial is a style of roof
false
Fruits of the soil are
perennial plants owned by the tenant or owner of the property
an easement is
the legal right to use another person’s property
True or false: life estate is an example of a leasehold estate
false
Reversionary
grantor of a life estate when the property is returned to the grantor when the life estate holder dies and a remainderman was not named
actual eviction
landlord gives proper notice to evict a tenant
In Maine, the maximum security deposit that can be charged a person who rents a SFH is ____ month(s) rent
2
Unique aspect of joint tenancy
rights of survivorship
A quit claim deed gives
only the interest that the grantor has
Mortgagee’s title insurance
protects the lender in the event of title issues
Key required doc of a condo RESALE
Resale Cert
Voluntary alienation after dead
transfer of real estate by will
Quit claim deed with covenant guarantees
there will not be any title defects that originate during the grantor’s ownership
covenant of quiet enjoyment in a deed promises
Grantee will not disturbed because of a defect in the title
Which of the following is an economic characteristic of real estate? uniqueness indestructibility size liquidity
liquidity
A subdivision is defined as dividing a parcel of land into ____ or more lots in a 5 year period
3
Great Pond is a naturally occurring body of water of _____ acres or more
10
True or false: owner of a property with Tree Growth Tax must have a registered forester provide a forest plan at least once every 5 years
false; once every 10 years
Adverse possession must occupy the land for at least ___ years
20
True or false: you would not need a real estate license to promote your parents house for 3 months with a commission of 2% of the sales price if it sells
false
You may be penalized by which of the following for breaking license law:
- imprisonment of up to 1 year per violation
- $4,000 fine (up to)
- Loss of any commission earned in the transaction
- all of the above
loss of commission
You must have a ________ license in order to be a Designated Broker
broker
A person must be at least ___ years old to receive a Maine real estate license
18
A broker’s license is issued for ___ years
2
CE hours to complete to renew broker license
21
Maine RE Commission consists of __ public members and __ industry members
2 public; 4 industry
Sales agent probationary period for paperwork review is
90 days
A licensee may disclose terms of an offer with the written permission of
both buyer and seller
Who is responsible for providing required PD to the buyer of a listed property?
selling licensee (buyer agent)
If information about the buyer client’s motivation is _______, the licensee may disclose this information
made public by a source other than the licensee
A licensee must disclose they are licensed when
Buying property not listed with a real estate company
Seller agent has what duty to the buyer customer?
Honest treatment
A disclosed dual agency consent agreement must
be provided to all clients of companies that practice
Real Estate Brokerage Agreements is required to be given to
buyers and sellers of 1-4 residential units
