Final Exam Flashcards
Restrictions in a deed that benefit only the grantor:
can be removed by the grantor’s issuing a quitclaim deed.
property owner was denied permission to build a garage too close to his lot line because this would:
be against Zoning Ordinances
The head of a company managing a condominium complex would have the following type of agency:
General agency (Laches is a defense to a proceeding in which a plaintiff seeks equitable relief.)
The doctrine of laches:
Prevents unfair relief that is detrimental to a party being sued.
A bonding company provides a $5,000 bond to a broker conditioned upon faithful accounting by the broker of all funds entrusted to her in the event of a claim:
Board collects check payable to Mass for aggrieved party
All of the following statements are true EXCEPT
external obsolescence is the result of one’s personal financial condition
A property owner who has the legal right to use a neighbor’s land holds a(n):
easement
Which of the following is NOT a participant in the secondary market?
Credit union
An appraisal of real estate
estimates value
“Time of the essence” means:
Puntual performance of a binding contract
A building measures 120’ by 50’ and is 25% of the total land area of a parcel. If X buys 15% of the total lot, how many square feet are left?
20,400
The covenant in a deed that states that the grantor has full possession of the premises in fee simple (or any other estate the grantor purports to convey) is called the covenant of:
Seisin
Tom Brady wishes to sell a lot at a 14% net profit. He purchased the lot for $37,000. What would the sales price have to be to give Mr. Brady a 14% profit after paying the selling broker a 5% commission on the sales price?
$44,400
In a metes-and-bounds legal description,
Monuments
The BEST description of a special agent would be a person who:
has limited authority
(A real estate agent has limited authority and is a special agent. A property manager whose duties include many tasks would most likely be a general agent. One who has complete authority is known as a univeral agent.)
Upon change of ownership, who inspects smoke detectors?
Fire Department
RESPA forms must be used in all of the following loans EXCEPT:
Seller financing
When a buyer is to assume the seller’s mortgage balance, escrow is to account for the customer trust account by which entry in the settlement statement?
Debit buyer; credit seller
Mud tunnels at the foundation of a home indicate:
ground terrmites
Mass housing’s ability to adjust income and price limits is determined by:
U.S. Treasury and HUD
If there is no redemption of the property, how long must a tax sale purchaser wait before starting action to obtain title to the land?
One year from the date of the tax sale
The difference between reproduction cost and the present value of a building is:
Depreciation
An owner was in default on a mortgage payment. The lender could call the entire loan balance due if the loan contained a (n):
acceleration clause
The decision in which a town, city or federal government is determined to take title to property for public improvements, title may be acquired from an unwilling owner by:
Eminent domain
All of the following are essential for a valid real estate sales contract EXCEPT:
provision for broker’s commission
A person approaches an owner and says, “I’d like to buy your house.” The owner says, “Sure,” and they agree on a price. What kind of contract is this?
Unenforceable
Which type of loan has its interest rate based on some type of index?
Adjustable-rate mortgage
A percentage lease applies to:
Department store
Which of the following is exempt from the right of rescission under the Truth-in-Lending Act?
A conventional first purchase-money mortgage on the borrower’s principal dwelling
A home is purchased using a fixed-rate, fully amortized mortgage loan. Which statement regarding this mortgage is TRUE?
Each mortgage payment amount is the same
“I hear they’re moving in. There goes the neighborhood! Better put your house on the market before values drop!” This is an example of what illegal practice?
Blockbusting
Financing real estate through a group of persons who pool their funds to purchase or make a down payment on investment properties is BEST described as:
a syndicate
In a physical sense, real estate may be said to include everything EXCEPT
personal property
A legally enforceable agreement under which two parties promise to do something for each other is known as a(n):
bilateral contract
Failure of a broker to post an equal housing opportunity poster could result in:
Shifting the burden of proof as to discrimination from the plaintiff to the broker.
The nature of the relationship between principal and agent is:
Fiduciary
A Bridge Loan:
Is used to finance purchase of a new home until old home is sold.
For Adverse possession to be effective, all of the following must be present EXCEPT:
Occupied by original adverse possessor
What terminates a contract for deed?
Delivery of a deed to the vendee.
Which of the following exemplifies a voluntary alienation?
A sale
A property manager should manage a property as if he was:
The owner of the property
Of the three methods of appraising properties, the replacement cost approach is particularly appropriate and would give the MOST accurate value in the appraisal of a(n)
new home.
In what way is tenancy by the entirety different from joint tenancy for a husband and wife?
One spouse can sell only with the other’s consent.
Which law requires that all advertising that references mortgage financing terms contain certain disclosures?
ruth in Lending Act (Regulation Z).
All of the following are true regarding a transfer of title by adverse possession EXCEPT:
The transfer is voluntary
Title to ownership of a condo unit is vested in:
The individual owner of each unit.
A mortgage clause that gives the mortgagee the right to declare the whole sum due in the event that the borrower sells to another who assumes the loan without the mortgagee’s consent is called a(n):
alienation clause.
A deciding factor in determining procuring cause might be any of the following EXCEPT:
Who first took the buyer over the threshold
In the absence of a notice to terminate, a lease that automatically renews itself would be a:
periodic tenancy
A variance could be a(n):
large, new supermarket located in an area zoned for small retail shops.
The principle of “leverage” is involved when a buyer can control an expensive property with:
a large mortgage
A borrower obtains a home improvement loan secured by her house that is neither insured nor guaranteed by a government agency. She has obtained which type of loan?
Conventional.
There are several ways in which land use is regulated or controlled. All of the following are means EXCEPT
resolutions passed by local REALTORS boards.
The term reproduction cost new, as used in the cost approach to estimating value, means the present cost of reproducing the subject improvement:
with the same or very similar materials
Which deed offers the LEAST protection to the grantee?
Quitclaim.
What are ordinances that restrict the average maximum number of houses per acre that may be built called?
Density zoning.
An appraiser often makes a distinction between the physical life and the economic life of an improvement. Regarding these two ways to measure “life” which is generally TRUE?
Economic life ceases first.
Under the Consumer Protection Act it is unlawful for a licensee to:
Do not disclose to the buyer that the home you are showing is infested with termites.
An owner conveys ownership of her residence to her church but reserves for herself a life estate in the residence. The future interest held by the church is a:
remainder.
A sees S’s ad “For Sale by Owner.” A asks S if he can show his buyer the property. S leaves A the key. Which is true?
No agency exists
A VA owner may do which?
Sell to a non-veteran who may assume the VA loan.
Which of the following BEST describes a reduction certificate?
It shows the balance due on a mortgage.
A new office building constructed in an old neighborhood is for sale. What is the BEST method of appraisal to use?
RCN minus depreciation plus land.
In a condo conversion, a tenant given an owner-signed P&S has how many days to accept or reject?
90
The act of directing home seekers toward or away from particular areas, either to maintain or to change the character of the neighborhood, is
Steering.
To ensure that two individuals owned property equally, you would specify:
A concurrent Estate.
Which of the following is a voluntary, specific lien?
Mortgage lien.
A seasoned loan is a :
loan with a payment history.
Which statement is TRUE of real estate appraisers of property secured by federally related loans?
They must hold a state appraiser’s license or certification.
A home located in an area where there are factories with a great deal of smoke and dust experiences:
Economic/External obsolescence.
Each of the following is an essential element of every real estate sales contract EXCEPT:
acknowledgment
None of the following sign a deed EXCEPT:
Grantor
An acceleration clause is BEST defined by which of the following?
Mortgagee’s demand for full payment
A buyer purchased a commercial warehouse for $750,000. fixed expenses are $15,000 per year and operating expenses are $49,000 per year. If the buyer wants a 9 percent return, how much gross rental income does he need each month?
$10,958
When selling a house with an underground septic system, the seller must:
Prove system was approved under Title 5 guidelines.
A fence falls over along a property line. This puts in question the actual property line. What is the remedy?
Discovery by survey.
One of the advantages of a joint tenancy is that it:
avoids the delays and expenses of probate.
An owner sells his beachfront property with the reservation he may use the new owner’s dock one week a year. This is an example of:
Easement in gross
A lien is:
A right
M.G.L. c.93A requires the broker or salesperson to:
Disclose all known information, good or bad, to the buyer.
