Final Exam Prep Agent Flashcards
Mrs. Jones, an appraiser, is appraising a single family residence for which she has located six closely comparable properties, all sold within the past six months. The subject property is rented for $500 per month. It is a custom-built home, approx. three years old. Mrs. Jones would probably give the most weight in her final estimate of value to which of the following appraisal methods?
- gross rent multiplier
- market data approach
- cost approach
- income approach
-gross rent multiplier
Generally, construction onto the property of another, like a wall fence, building, etc. is known as what?
- encroachment
- easement appurtenant
- situs
- estoppel
-encroachment
Which method would an appraiser be most likely to use when appraising a newly build (1 yr old) apartment building with no rental history?
- Income approach
- Cost approach
- Capitalization approach
- Market approach
-Cost approach
Great approach when theres nothing to compare it to.
When a appraiser is appraising a property he usually considers all of the following except:
- The assessed value
- The property rights to be valued
- a definition of value
- the property identification
-The assessed value
Assess value is for tax purposes thats why the appraiser cant look at the records.
If private property has been damaged (such as through excessive airport noise) of taken by the government without formal eminent domain proceedings, what would a property owner initiate to recover just compensation for losing, or damaging the property?
- Condemnation
- Injunction
- Inverse condemnation
- writ of execution
-Inverse condemnation
The person takes actions against the government
What are the 4 government powers?
PETE Police Eminent Domain Taxation Escheat
The governments right to make laws and regulations for the general welfare of the public is known as:
- police power
- eminent domain
- the bundle of rights
- escheat
-police power
The total collection of rights which may be claimed by private ownership is best described as:
- freehold
- the bundle of rights
- an estate
- the fee simple system
-the bundle of rights
A listing agreement is a:
- unilateral or bilateral contract
- all are correct
- employment contract
- contract to find a buyer for a property
-all are correct
Which of the following would be the best and most complete definition of the term “encumbrance”?
- The use of property by a debtor to offer a creditor security for a debt
- The degree, quantity, nature, and extent of interest which a person has in real property
- Anything which effects or limits the fee simple title to property
- Any action taken relative to property, other than acquiring or transferring title.
- Anything which effects or limits the fee simple title to property
example: easements, liens, mortgages, clouds on title, anything that limits you
What is a variance?
An exception to the rule that will not effect the rest of the community. It cant effect anybody else and you need special circumstances for it.
Redlining is specific to ….
Financing
RESPA would apply to which of the following?
- Homes and residential dwellings only
- 1-4 family residential dwellings
- commercial real estate only
- subdivisions
-1-4 units family residential dwellings
Its primarily there to provide consumers with enough information to enable them to shop for settlement services.
A change in flight pattern that caused a loss of property value would be an example of:
- aviation obsolescence
- physical deterioration
- economic obsolescence
- functional obsolescence
-economic obsolescence
Happens for causes outside your property lines.
A promise in exchange for a promise, supported by consideration, is the basis for a:
- multilateral contract
- unilateral contract
- offer to lease
- valid, binding, bilateral, contract
-valid, binding, bilateral, contract
What are the essentials of a valid contract?
Lawful object
consideration
offer and acceptance
capable parties
without any of these the contract is VOID.
A listing broker has a signed sales contract on a house. The broker then noticed a crumbling wall in the basement. The broker should inform:
- both the buyer and seller
- the seller only
- the buyer, seller and mortgage company
- the buyer only
-both the buyer and seller
Material facts must be disclosed to everyone
What item will appear as a debit on the buyers closing statement?
- none of the other options
- prepaid homeowners insurance
- the purchase price
- unpaid property taxes
-the purchase price
Debit is what you owe and the buyer will definitely see this price of the home on the closing statements
An appraiser examines a building that is 25 years old. Because if the superior upkeep, it has the condition of an 11 year old building. The appraiser may use the 11 year old age as the:
- actual age
- effective age
- numerical age
- physical age
-effective age
Age of the property based upon it condition, not its actual age.
Whats the OR EE Rule?
OR GivOR: Lessor Vendor Optionor Grandor Givor Propertor For your pleasure
EE Receiveeees: Lessee Vendee Optionee Give me Property makes me happy
In some states the instrument used instead of a mortgage is a:
- promissory note
- release deed
- negotiable instrument
- deed of trust
-deed of trust
The primary purpose of a deed is to:
- give constructive notice
- prevent adverse possession
- prove ownership
- transfer title rights
-transfer title rights
deed is evidence of transfer
In a new counter-offer:
- none of the below
- the terms of the offer can never be changed
- the counter-offeror becomes the counter-offeree
- the counter-offeror can change the terms of the offer unilaterally.
-the counter-offeror becomes the counter-offeree
the roles are reversed when a new offer is made
Which of the following would be classified as a general lien?
- mechanics lien
- property tax lien
- judgement
- real estate property tax lien
-judgement
property tax lien and mechanics lien are specific liens. Judgement is a lien on the debtor in general.