KY State Pratice Questions Flashcards

Question

The "Open End" clause in a mortgage would benefit the borrower the most if he:

Answer 1

Borrowed additional money Open-End Clause is a provision in mortgage contract that declares the mortgaged real estate may be used as security to borrow additional money

Answer 2

A long term loan to replace a construction loan Take-Out Loan is a long-term loan. It is a permanent mortgage loan which a lender agrees to make to a borrower upon completion of improvements on the borrower's land. The proceeds of the loan are used principally to pay off the construction loan.

Answer 3

the cost paid each year to borrow money, including fees, expressed as a percentage. The APR is a broader measure of a borrower's cost of borrowing money. It reflects not only the interest rate, but also the fees a borrower must pay to get the loan expressed as a percentage. When the APR is used in advertising by a lender, it reveals the particularities of costs in credit in percentage terms. [If the ad only states the APR, then other disclosures are not necessary.]

Answer 4

C. appraising an old structure with many functional deficiencies. The cost approach is most appropriate for new buildings, not old.

Answer 5

The tax rate which is applied to the next dollar earned

Answer 6

C. bills of sale. Bills of sale are a written instrument that conveys title to personal property, such as furniture purchased as a part of a home sale. They are not used for real property. This is not the same as a lease, which is personal property that conveys an interest in real property.

Answer 7

Marketability and acceptability An Appraiser is concerned with the marketability and acceptability of a property. Depending on what type of property is being appraised, the others may be concerns as well, but not the primary concern of an appraiser which would be the marketability, and acceptability.

Answer 8

Narrative report Narrative Report is the most Comprehensive of the three types (letter form, short form, Narrative) that includes all the information obtained by the Appraiser as well as the methodology behind the calculations and value conclusion. But as comprehensive as it may be it does not contain the buyers financial condition because how you pay for the property is not relevant to the value of the property itself.

Answer 9

An unearned increment Unearned Increment: An increase in the value of a property as the result of inflation or a population increase.

Answer 10

Subtracted from the sales price of the comparables; When comparing two properties you need to deduct for features of the comparable. For example, if one property has pool and the other does not, you must subtract the value of the pool.

Answer 11

D. The present cost to replace the building with another building having the same utility The replacement cost of improvements is the cost to replace one improvement with another improvement having the same utility.

Answer 12

D. will. A joint tenancy has the right of survivorship. This means that If one joint tenant dies, the surviving joint tenants take the decedent's interest automatically- the property interest cannot be willed.

Answer 13

C. Interest rates would go down Just like most things in a free market economy, mortgage loans are subject to the laws of supply and demand. Thus, when there is more mortgage money in the market place "looking for a home," borrowers have more choices, which leads to increased competition among lenders, which leads to lower interest rates.

Answer 14

There is no will. Intestate succession occurs when someone dies without leaving a will, or leaving an invalid will so that the property of the estate passes by the laws of succession rather than by the direction of the deceased.

Answer 15

foreclose to enforce payment of $15,000. Foreclosure is a process that allows a lender to recover the amount owed on a defaulted loan. If, for example, someone defaulted on a $15,000 note before any payments were made, then the lender would foreclose for $15,000. In this case, the maker of the note still owes $15,000 on the property, even though Tim sold the debt to Eric, so Eric would foreclose for $15,000.

Answer 16

A. may affect title to real property based on the results of the lawsuit. A "lis pendens" is a legal document which gives notice that an action or legal proceeding (mechanic's lien filing, foreclosure) is pending in the courts that could affect the title to the designated property.

Answer 17

A. The possibility that some improvements on the insured property are located on adjoining land

Answer 18

FHA or private mortgage insurer Federal Housing Administration (FHA) insures Lenders against loss in the event of a default. FHA loan might approve a loan to buy 1-4 units of residential property to be used for rental purposes. To get an FHA loan you go to institutions that are authorized to deal with the FHA, there is no FHA office. Private insurers can insure loans when the borrower does not qualify for the FHA loan.

Answer 19

rescinded. A voidable contract is a contract that may be rejected by one of the parties to a contract. It is valid until it is rescinded. Examples of voidable contracts include contracts signed under duress, or contracts entered into with threat or menace. In those situations, the person forced or coerced into signing can void the contract (because they weren't a willing party) or choose to honor the contract. The person who did the forcing or coercing cannot void the contract (because they were a willing party).

Answer 20

C. Are not responsible for firm debts beyond their individual investment. Limited partners are exactly that - limited. They cannot do anything except invest their money in the partnership. Because of their restricted position, they are not held liable for debts of the partnership beyond the amount of their investment.

Answer 21

use borrowed money so that the return can be maximized. Leverage is the use of borrowed funds to complete an investment transaction. The higher the proportion of borrowed funds used to make the investment, the higher the leverage and the lower the proportion of equity funds.

Answer 22

down zoning This is known as down zoning because it usually reduces the economic value of the property involved. Down zoning is the process by which an area of land is rezoned to a usage that is less dense and less developed than its previous usage. This is typically done to limit sprawl and overgrowth of cities, and to help concentrate areas of development into smaller sections to prevent over zoning a community.

Answer 23

unenforceable. A verbal contract is an agreement that is not in writing and is not signed by the parties. It is a real contract but lacks the formal requirement of a memorandum (written document) to render it enforceable in litigation, making it unenforceable. The statute of frauds requires all purchases of real property to be written in order to be enforceable, so until this real property transaction is performed or entered into a written agreement, the verbal contract is considered unenforceable.

Answer 24

salesperson's broker and the seller.

Answer 25

C. It is divided, with Ralph retaining Ralph's original interest and the balance going to Keith's estate. Tenancy in Common is formed as the result of two or more persons owning an undivided interest in the property. Unity of Possession is the only unity required for a tenancy in Common. There is no automatic right of survivorship as there is with a Joint tenancy: Thus Keith's interest does not have to go to Ralph.

Answer 26

escheat Escheat is a reversion of property to the state in the absence of an individual owner. Usually occurs when a property owner dies intestate (without a will), and without heirs. An individual CANNOT acquire property through Escheat.

Answer 27

D. A bill of sale A bill of sale is a written document that serves as evidence of the transfer of title to personal property. Personal property is generally movable property, an example of a bill of sale would be a lawn mower.

Answer 28

D. Depreciation and maintenance expenses.

Answer 29

C. General agent A general agent has the power to act on behalf of the principal in an authorized area of business. Property managers are an example of a general agent, as they are authorized to perform all tasks related to the managing of the property.

Answer 30

open-end mortgage. An "Open End Mortgage" is an expandable loan in which the borrower is given a limit up to which he or she may borrow, with each incremental advance to be secured by the same mortgage. The lender is allowed to advance additional funds to increase the outstanding balance of the loan at the borrower's request, up to the original loan limit of the promissory note.

Answer 31

the buyer. When a homebuyer applies for a home loan, the TILA/RESPA Integrated Disclosure rule requires the lender to provide a Loan Estimate to the buyer within 3 days of receipt of the loan application, and all revisions have to be delivered at least 7 days before closing. The loan estimate details the loan terms, mortgage payments, costs at closing and other costs and fees related to the loan, many of which cannot change.

Answer 32

No, because owners are not covered by Regulation Z Regulation Z requires disclosure of all financing terms and conditions if a low interest rate, down payment or other enticement is featured in an ad. This does not apply in this case, however, because Regulation Z applies only to institutions, not individuals selling their own property.

Answer 33

B. The broker has to keep a record of the check in his record of all trust funds received and not placed in his trust account Brokers are generally required to keep records of all financial dealings related to real estate transactions they are brokering.

Answer 34

lessee. A "leasehold interest" is the right to exclusive possession and use of real property for a fixed period of time held by the lessee. Remember: lessor(landlord), lessee (tenant).

Answer 35

B. An easement in gross An easement in gross is held by a person or entity, not a property, so it does not "go with the land". Typically an easement is used to go to another property. With an easement in gross, there is no other property to go to. Therefore it would not go with the land because there is no land.

Answer 36

C. All of the other options are correct

Answer 37

Seller "Subagent" means a person to whom an agent delegates agency powers. In a case like this, the subagent may be "working for" the listing agent, but they are still representing the seller. This is common in real estate, as the marketing of real property by real estate agents is often a cooperative effort. The listing broker usually makes an offer of compensation to a cooperating broker (subagent) by placing the property on the Multiple Listing Service. Some MLS's make the offer of subagency automatic, while for others, the offer of subagency is optional and requires an affirmative act by the listing broker. If the principal (seller) specifically authorizes his/her broker to appoint a subagent and thus establishes a new contractual and fiduciary relationship, the subagent represents the principal in the same manner as the listing broker.

Answer 38

A. A verbal lease for one year or less The Statute of Frauds is state law that requires certain contracts to be in writing and signed by the party to be charged (or held) to the agreement in order to be legally enforceable. The Statute of Frauds generally requires that all contracts for the sale of land or any real property interest be in writing. It also states that leases for more than one year need to be in writing as well.

Answer 39

Valid A minor is generally defined as any person under the age of 18. However, a person under the age of 18 years is said to be an emancipated minor if the person has entered into a valid marriage, is on active duty in any armed forces, or willingly lives apart from their parents with the parents' consent and manages their own financial affairs regardless of the source of income. Emancipated minors are treated as adults by the law, so are capable of consenting to a contract.

Answer 40

D. They are the evidence of the debt The promissory note is the evidence of the debt. The trust deed is the security of the debt.

Answer 41

tenants in common Tenants in common hold property with undivided fractional interests, and the shares do not have to be equal. In a joint tenancy, each owner holds equal shares and interests to the property. Community property consists of personal or real property acquired by either party in a marriage and belonging to both parties to the marriage. In a cooperative, owners own shares in a corporation, partnership or trust which owns a property, with each owner holding a proprietary lease and the right to occupy the unit.

Answer 42

General A general lien attaches to all of a debtor's real and personal property as opposed to a specific lien, which affects only a particular piece of real or personal property. A voluntary lien, such as a mortgage, is placed on a property with the consent of the owner. An involuntary lien is imposed upon a property without the consent of the owner.

Answer 43

B. joint tenancy requires all ownership rights to be acquired at the same time. Joint tenancy (which offers the right of survivorship) requires PITT- possession, interest and title must all occur at the same time. Tenants in common owners have equal rights of possession but may have unequal rights of ownership. All owners, regardless of how ownership is taken, share one deed which conveys legal title.

Answer 44

D. termination by the servient tenement. An easement cannot be terminated by the servient tenement, although it can be terminated by the dominant tenement (usually via quitclaim deed). All of the other events shown will terminate an easement.

Answer 45

Fee simple absolute estate The son holds a remainder interest in the property, and will have a fee simple absolute estate upon the death of the uncle, the life tenant.

Answer 46

36 sections Each section is 1 square mile. Each township is 6 miles square and contains 36 square miles, so a township contains 36 sections. Each section is 1 square mile, or 640 acres. The 36 square miles of a township are 23,040 acres.

Answer 47

C. Judgment A judgment lien is not a lien just on specific assets but on the assets of the debtor in general. A judgment applies to both the personal and real property of the debtor. Property tax liens are specific liens that have priority over other liens. A mechanic's lien may be filed against real property by a contractor or supplier for nonpayment of work or supplies. A property tax lien may be filed by a government for the nonpayment of real estate property taxes.

Answer 48

60 acres To calculate acres in a survey system legal description, multiply all the denominators and divide that number into 640 acres. In this problem, multiply denominators for the first part: 4 × 4 = 16; 640 acres ÷ 16 = 40 acres. Multiply denominators for the second part: 2 × 4 × 4 = 32; 640 ÷ 32 = 20 acres. Then add 40 acres + 20 acres = 60 acres.

Answer 49

involuntary alienation. Involuntary alienation occurs when property is transferred without the owner's consent. The right of eminent domain allows a government to acquire property for a public purpose through condemnation. When a person dies without a will (intestate) and without heirs, the property passes (escheats) to the state. This process was neither planned nor initiated by the owner before death. Voluntary alienation occurs when property is transferred with the owner's consent. Adverse possession is the acquiring of title through open, notorious, hostile, and continuous use of another's property. Descent occurs when an heir inherits a property through probate from a deceased owner who died intestate, without a will.

Answer 50

Value Change, contribution, and substitution all affect value—the most probable price a property will bring. Change relates to the reality that nothing is constant and variations in various aspects of a property will affect its value. Contribution means that the value of any part of property is measured by how it affects the value of the whole property. Substitution says that the maximum value of a property tends to be determined by how much it would cost to purchase an equally desirable substitute property. Depreciation is a loss of value for any reason. Under the principle of supply and demand, when supply increases the value decreases and when demand increases, the value increases.

Answer 51

Scarcity The characteristics of value (STUD) are: scarcity, transferability, utility and demand . Scarcity means that there is a limited supply of similar properties. Competition is the interaction of supply and demand causing prices for property to rise or fall. The economic principle of anticipation states that value is created by the expectation that certain events will occur affecting the value of a property. Balance refers to the amount remaining after certain mathematical calculations have been completed.

Answer 52

sales comparison approach An appraiser will most likely use the sales comparison approach to determine the value of the land. They may use the cost approach to arrive at an opinion of value for the library building itself. The reproduction cost and the replacement cost are incorporated within the cost approach to value. An appraiser uses the income approach to value for income-producing properties, such as a multi-unit apartment building. NOTE - The question is asking solely about how the appraiser would value the land. Land is always valued by using the sales comparison approach.

Answer 53

B. the borrower may cancel the first home purchase loan transaction within three days after settlement. A borrower has no rights to cancel a first or second home purchase loan under the CFPB but does have cancellation rights for other loans, such as those for refinancing or home equity. The CFPB does require that lenders provide borrowers with a new loan closing disclosure that states all charges to be paid by the borrower and the seller at settlement of the loan. Lenders must provide a new loan estimate of closing costs no more than three business days after receiving a loan application along with information on settlement costs.

Answer 54

their loan-to-value ratios are often lower than other types of loans. The answer is their loan-to-value ratios are often lower than other types of loans. The borrower with a conventional loan usually makes a down payment of at least 20%, so that the loan-to-value ratio is 80%. The security for the loan is provided by the mortgage, and the payment of the debt rests on the borrower's ability to pay. Conventional loans are not insured or guaranteed by the government, unlike FHA or VA loans. Private mortgage insurance (PMI) protects the lender only for the excess of the loan amount over 80% of the property's appraised value. Conventional loans are often purchased from the original lenders through the secondary mortgage market.

Answer 55

No acceptance has been given. It has not been presented to or accepted by the owner. Remember, contracts aren't valid until both parties agree. However, even though the listing agreement has expired, the offer should be presented. If it's accepted and the transaction closes, the broker will generally be entitled to his or her full commission. NOTE- while there's no listing agreement here, that's not what makes the offer "NOT a valid contract"- it's the lack of 1 of the 4 essentials of a valid contract that makes it so (consideration has been offered, but no acceptance of the offer has been made).

Answer 56

A. The sale of homes and home loan lending The Civil Rights Act of 1968 defines housing discrimination as the "refusal to sell or rent a dwelling to any person because of his race, color, religion, or national origin". Title VIII of this Act is commonly referred to as the Fair Housing Act of 1968, and it specifically prohibited discrimination concerning the sale, rental and financing of housing based on race, religion, national origin. Gender, familial status, and disability were added to the list of identities protected by the Fair Housing Act through amendments in 1974 and 1988. Whatever you do, remember the year 1968 when taking the real estate exam!

Answer 57

D. a legally enforceable contract requiring the signatures of all parties to be valid While an earnest money deposit is not a contract, an earnest money AGREEMENT is a legally enforceable contract that requires the signature of all parties to be valid. Earnest money agreements are contracts written up during the exchange of the earnest money which often outline the conditions for refunding the deposit.

Answer 58

No, because the divorce makes it not an "at arms' length" transaction "At arm's length" means transactions involving independent and objective parties with no unrelated motivations that might distort the true value. In this case, the relationship between the owners might have skewed the final sales price, making it an unreliable comparable.

Answer 59

a type of depreciation that is incurable. Economic obsolescence is caused by factors outside the property lines, like a property being located too close to an airport. When economic obsolescence results in depreciation to the value of a property, that depreciation is considered "incurable" because there's nothing the property owner can do to fix it. If you want to be over analytical you can think of things such as when developers invest in improving the property. But that is how you will get into trouble on your exam. Try to find the best answer for the given question rather over rationalizing every point.

Answer 60

the time over which value generated by the investment exceeds its cost of operation. The economic life of an investment property is simple- how long can it make money? Once a property costs more to operate than it earns, it reaches the end of its economic life.

Answer 61

neighborhood analysis. Neighborhood analysis is a formal process of identifying, measuring and analyzing the influences that help determine a neighborhood's vitality and desirability. It is useful when determining the value of homes in a particular area.

Answer 62

a specific lien. A construction lien, also known as a mechanics lien, is a claim made against a property by a contractor or other professional who has supplied labor or materials for work on that property. Construction liens are designed to protect professionals from the risk of not being paid for services rendered. They are considered a specific lien.

Answer 63

a remainder. A life estate is a type of property ownership, typically established by a deed, which is often used to avoid probate and immediately transfer property to an heir, or remainderman, at the time of death. The remainder is the future interest conveyed to the remainderman in the deed.

Answer 64

The building is a nonconforming use. A nonconforming use is a use of property that was allowed under the zoning regulations at the time the use was established but which, because of subsequent changes in those regulations, is no longer a permitted use. ... State law does not regulate nonconforming uses, structures, or lots

Answer 65

80 Acres 4*2= 8 640 acres / 8 = 80 acres

Answer 66

C. may be terminated by the dominant tenement. An appurtenant easement is a type of easement that still applies to a property even if the owners change. It is sometimes referred to as "running with the land". Appurtenant easements can be terminated if the dominant tenement files a quitclaim deed for the easement.

Answer 67

an encumbrance. An encumbrance is a right to, interest in, or legal liability on real property that does not prohibit passing title to the property, but that may diminish its value. Encumbrances can be classified in several ways, including financial (for example, liens) or non-financial (for example, easements, private restrictions).

Answer 68

an estate for years. Terms of an agreement are contained in a lease. Leases with fixed periods are generally referred to as an "estate for years". This refers to a leasehold estate for any specific period of time (the word "years" is misleading.) An estate for years is not automatically renewed.

Answer 69

servient tenement The party gaining the benefit of the easement is the dominant estate (or dominant tenement), while the party granting the benefit or suffering the burden is the servient estate (or servient tenement). Like, for example, if Joe holds an easement to drive through Arthur's apple orchard to get to his shed, Joe has the dominant tenement and Arthur's apple orchard is the servient tenement.

Answer 70

a mortgage given from buyer to seller to secure the purchase price. A purchase money mortgage is a mortgage issued as part of the purchase transaction and is given to the seller rather than to a third-party lender. Also known as seller or owner financing, this is usually done in situations where the buyer cannot qualify for a mortgage through traditional lending channels. The "lender" is the seller in a purchase money mortgage.

Answer 71

reduction certificate. A reduction certificate is a document signed by a lender stating the outstanding amount on a mortgage loan.

Answer 72

Alienation clause

Answer 73

4 One discount point costs 1 percent of your mortgage amount. 1% of $150,000 = $1,500, and $6,000 ÷ $1,500 = 4. Mortgage points, also known as discount points, are fees paid directly to the lender at closing in exchange for a reduced interest rate. This is also called “buying down the rate,” which can lower your monthly mortgage payments.

Answer 74

In this situation, the first broker has defaulted on an oral contract to share the commission and could lose a court suit if the second broker sues for his share of the commission. This has nothing to do with real estate regulations, only the oral agreement between the two brokers. NOTE - The second broker would not sue the SELLER for his share of the commission because the oral agreement is between the two brokers only, which is not the same as the correct answer.

Answer 75

C. Both the lessor's and the lessee's signatures It is not always necessary for a lessor and a lessee to sign a lease for more than one year. Though the lease agreement itself must be in writing, the actions of the lessor and lessee can make the contract enforceable, even if not signed.

Answer 76

No, active participation in real estate transactions requires a license. Tasks such as answering phones or making copies are considered support and don't require any licensing or course work. However, activities such as soliciting listings or providing information about a property are part of the transaction process and may be handled only by licensed real estate professionals.

Answer 77

statute of limitations. Virtually all avenues of legal recourse, including suits for breaking a contract, have "statutes of limitation". A statute of limitation is a time limits for taking legal action against another person or entity.

Answer 78

D. Kickbacks RESPA is concerned with educating consumers about the true costs of borrowing and standardizing lending practices and closing practices. As such, referral fees (or "kickbacks") are prohibited between the different entities involved in the home loan process.

Answer 79

based on sale price or appraised value, whichever is lower. Although various banks, mortgage companies and programs have different LTVs, the lower, more conservative number is used.

Answer 80

lessor under a leasehold. In property law, "reversion" is a future interest retained by the grantor after the conveyance of a lesser estate to another person or entity, such as the owner of a fee simple granting a life estate or a leasehold estate.

Answer 81

Open listing An open listing lets an owner sell her home by herself as a "For Sale By Owner". It is a non-exclusive agreement, meaning the owner may execute open listings with more than one real estate broker and pay only the broker who brings an able buyer whose offer the owner accepts.

Answer 82

the comprehensive plan of the local government. A subdivision is the act of dividing land into pieces that are easier to sell or otherwise develop, usually via a plat. The most effective way to determine land use and the amount of land to allocate is to consult the local government or municpality's comprehensive plan.

Answer 83

A. consumers who have made an inquiry to a licensee may be contacted up to three months later. The National Do Not Call Registry is a database maintained by the United States federal government, listing the telephone numbers of individuals and families who have requested that telemarketers not contact them. Certain callers are required by federal law to respect this request, but it allows for licensees to contact potential customers for up to 3 months after the customer has made an inquiry with them. NOTE - This question is asking about consumers who have only made an inquiry- they may be contacted up to 3 months later. Customers who have had an established business relationship with a company can be contacted up to 18 months later.

Answer 84

B. The buyer can revoke the offer immediately, provided the seller has not responded to the buyers offer Regardless of the acceptance clause, a buyer can revoke an offer at any time before the seller has accepted and that acceptance has been communicated back to the buyer. Until that point, there is no contract.

Answer 85

1. Fee Simple Absolute - Fee Simple Absolute, also known as fee simple is an absolute ownership of land without any conditions and limitations. 2. Fee Simple Defeasible - A fee simple defeasible is a conveyance of property that has conditions placed on it. The holder of a fee simple defeasible possesses the property as a fee simple subject to that condition. If the condition is violated or not met, then the property will either go back to the original grantor or a specified third party. 3. Life Estate - s the ownership of immovable property for the duration of a person's life. In legal terms, it is an estate in real property that ends at death when ownership of the property may revert to the original owner, or it may pass to another person. The owner of a life estate is called a "life tenant".

Answer 86

Tenants in common share the ownership of a specific property. Each owner may own a different portion of the property, but all of them have equal rights to the entire property. Any of the owners can sell their share at any time Should one of the tenants die, their interest would pass to their heirs. If Joe died, Steve would still hold 50% and Kim would still own 25%, but Joe's 25% would pass to whomever he designated in his estate plan or to his relatives, according to state law.

Answer 87

Unlike tenants in common, joint tenancy typically involves a right of survivorship, which means that the interest held by each tenant would pass to the others upon death. Joint tenancy requires four unities known as TTIP, which stands for time, title, interest, and possession. Each owner must take title to the property at the same time and receive the title on the same deed. Each also receives the same proportionate and equal share of ownership, along with identical rights of possession. The title usually reverts to a tenancy in common if these four unities aren't met. If a joint tenant sells or conveys the interest created in a joint tenancy to another party, the joint tenancy is broken and a tenancy in common is created.

Answer 88

A. $131,707 The seller's minimum represents 82% of the contract (the other 18% is selling fees and charges): $108,000 divided by 0.82 is $131,707.32 Rounded to the nearest dollar, the answer is $131,707.

Answer 89

NOI / Price of Property

Answer 90

B.$1,285,714.20 $102,000 - ($1000*12) = $90,000 $90,000 / 7% = $1,285,714.20

Answer 91

Scott Vs. Sandford

Answer 92

D. Deed in Trust

Answer 93

I (Interest) = 6% Price of property = Price 10% down payment meaning Loan amount is 90% of the property value. 1st month interest = $526.50 Interest per year = %526.50 * 12 = $6,318 0. 9Price*.06 = $6,318 0. 9Price = $6318 / .06 = $105,300 Price = $105,300 / .9 = $117,000

Answer 94

D. Make adjustments for amenities in the comparable properties.

Answer 95

Substitution

Answer 96

One square mile 2.6 square kilometers 640 acres 260 hectares

Answer 97

43,560 square feet 4046.86 Square Meters 4840 square yards 1/640th of a square mile

Answer 98

A. Highest & Best Use

Answer 99

B. Mortgagee's Title Policy

Answer 100

Retroactive liability means that individuals can be held responsible for past actions, even if those actions were legal at the time.

Answer 101

1. Figure out what the property value is at 5%. 60,000/5%= 1,200,000 2. Figure out what the property value is at 6%. 60,000/6% = 1,000,000 3. 1,200,000 - 1,000,000 = 200,000

Answer 102

1. What is the monthly amount? 5000 / 12 = $416.67 a month 2. 416.67 * 5 months = $2083.33

Answer 103

This type of question is always talking about a section. 1 section is equal to 640 acres. 640 / 2 / 4 / 4 / 2 = 10 acres

Answer 104

1. B * 420 = (12 * 43,560) 2. B * 420 = 522,720 sqft * How many sqft is in a acre? 43,560 Sqft 3. B = 522,720 / 420 = 1,244.57 ft

Answer 105

*What is a cap rate: It is the rate of return on a real estate investment based on the income the property produces. Cap Rate = Annual Net Operating Income / Cost & Sales price of the property 1. Figure out how much the property makes. $400,000 * 6% = $24,000 2. $24,000 / 8% = $300,000

Answer 106

1. $30,000 *50% = $15,000 | 2. $15,000 * 40% = $6,000

Answer 107

1. add the outstanding mortgage, taxes due, and net profit: $12,500 + $350 + $7,000 = $19,850 2. $19,850 is 94% of the selling price, with the broker's 6% commission equalling the rest. To find the selling price, simply divide the known quantity by it’s percentage relative to the selling price: $19,850 ÷ .94 = $21,117.02

Answer 108

1. We start solving this problem by finding out what 6% of $219,000 is: $219,000 x .06 = $13,140 2. The problem mentions that the commission is split evenly between the two brokers. Each side gets 50%: $13,140 x .50 = $6,570 3. And finally, we need to figure out the agent’s split, which is 75% of $6,570: $6,570 x .75 = $4,927.50

Answer 109

the name or number of the subdivision plat.

Answer 110

a principal meridian

Answer 111

Metes and bounds

Answer 112

a recorded subdivision map.

Answer 113

280 acres The answer is 280 acres. There are three parcels in this description. The first: ¼ × 640 = 160, and ¼ x 160 = 40 acres The second: ¼ × 640 = 160, and ½ x 160= 80 acres The third: 640 × ¼ = 160 40 + 80 + 160 = 280 acres

Answer 114

Four miles The answer is four miles. The shortest distance from Section 1 to Section 36 is from the bottom of Section 1 to the top of Section 36, or four miles.

Answer 115

160 acres. A quarter (¼) of 640 acres is 160 acres

Answer 116

the mean sea level at New York Harbor

Answer 117

20,000 square feet The property is 200 × 100 = 20,000 square feet.

Answer 118

130,680 SQFT Because one acre contains 43,560 square feet, three acres will contain 3 × 43,560 sq. ft. = 130,680 sq. ft.

Answer 119

benchmarks. Cities with local datums also have designated official local benchmarks.

Answer 120

horizontal township lines and vertical range lines. Townships are the basic units of the rectangular survey system.

Answer 121

City and ZIP code The city and ZIP code are not used in a lot and block description.

Answer 122

The townships. Townships are the basic units of the rectangular survey system. Principal meridians and base lines are the two sets of intersecting lines in the system. Ranges are the 6-mile strips of land on either side of a principal meridian.

Answer 123

$588,060. The buyer paid $588,060: square feet × 6 = 261,360 square feet 261,360 square feet × $2.25 = $588,060

Answer 124

a survey. A legal description is a detailed way of describing a parcel of land and is based on information collected through a survey.

Answer 125

street address. A legal description is a precise method of identifying a parcel of land and includes metes-and-bounds, rectangular survey, and lot-and-block as methods that can be used for identification. A street address is not a legal description and, therefore, not as precise.

Answer 126

beginning. metes-and-bounds property method of property description always ends back at the point of beginning so that the tract being described is completely enclosed.

Answer 127

43,560 sq. ft.

Answer 128

5,280 feet and 43,560 square feet

Answer 129

an Improvement Location Certificate (ILC). A survey that provides only the location of the structures and improvements as related to property boundaries is an Improvement Location Certificate (ILC).

Answer 130

2.94 The answer is 2.94. The parcel is 256,000 square feet: 400' ×640' = 256,000 sq. ft. Half of it is 128,000 square feet. Each acre requires 43,560 square feet. Therefore: 128,000 sq. ft. ÷ 43,560 sq. ft. per acre = 2.938 acres (rounded to three decimal places). The nearest answer is 2.94.

Answer 131

$102,801.60 $102,801.60. An acre consists of 43,560 square feet. 43,560 × 2 = 87,120 total square feet. 87,120 × $1.18 = $102,801.60

Answer 132

16.5 feet. A chain is 66 feet long and the same length as four rods, each being 16.5 feet long.

Answer 133

They are measured below the datum rather than above it.

Answer 134

A) office with lavatory. The Fair Housing Act defines a dwelling as any building or part of a building designed for occupancy as a residence by one or more families, including vacant land on which an applicable structure will be built. A commercial building composed of office or retail space does not fall under the Fair Housing Act.

Answer 135

D)the owner of a 20-unit residential apartment building renting to men only. Sex is a protected category under the federal Fair Housing Act but the owner of the building doesn't qualify for any exception to the law. Even if the owner lives in one of the units, doesn't use a broker, and does not advertise discriminatorily, the property is not an exception to the law because it has more than four units.

Answer 136

within 1 year of the alleged act. HUD also may initiate its own complaint

Answer 137

The informal resolution of a dispute by obtaining assurances that the person responding to the complaint will remedy the violation. HUD can attempt to resolve the dispute informally through conciliation. Conciliation is the resolution of a complaint by obtaining assurance that the person against whom the complaint was filed will remedy any violation that may have occurred.

Answer 138

It provides no exceptions that would permit racial discrimination. Unlike other exemptions permitted under the federal Fair Housing Act of 1968, the Civil Rights Act of 1866 allows no exceptions that would permit discrimination on the basis of race.

Answer 139

Investigates for reasonable cause to bring a charge Within 100 days of the filing of the complaint, HUD either determines that reasonable cause exists to bring a charge of illegal discrimination or dismisses the complaint.

Answer 140

persons 62 years of age or older. Housing is exempt from the familial status protections if it is intended for occupancy only by persons 62 years of age, or for occupancy in 80% of its units by at least one person 55 years of age or older. Strict rules for ongoing verification and reporting are imposed on this second alternative.

Answer 141

B) The man may file a complaint alleging discrimination on the basis of familial status. The salesperson and, by implication, the broker and the property owners/principals have violated the prohibition against familial-status discrimination. Anyone in charge of one or more children under age 18 who is denied access because of the children is the victim of discrimination based on familial status.

Answer 142

the Civil Rights Act of 1866. The law prohibits discrimination based on race in every property transaction and is still in effect.

Answer 143

B)It is often a contributor to the deterioration of older neighborhoods. Redlining is a prohibited practice by lenders and insurance companies. It frequently leads to the deterioration of older neighborhoods because loans are not made based on racial grounds as opposed to any real objection to an applicant's creditworthiness.

Answer 144

Title VIII of the Civil Rights Act of 1968. The law has been amended since then by the Housing and Community Development act of 1974 and the Fair Housing Amendments Act of 1988, so that it now prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability.

Answer 145

An impairment that substantially limits one or more of an individual's major life activities. The definition of the term disability is very broad and focuses on impairments that prevent or restrict a person from performing tasks that are of central importance to most people's lives.

Answer 146

No, because the rental of rooms in an owner-occupied single-family home is exempt from the Fair Housing Act

Answer 147

15 or more employees.

Answer 148

the state or municipal law is substantially equivalent to the federal law.

Answer 149

the U.S. Congress and U.S. Supreme Court.

Answer 150

Blockbusting Such statements, made by a person in real estate brokerage, constitute blockbusting—usually an attempt to get listings by frightening owners into selling by encouraging the belief that a member of a protected class is moving into the neighborhood. To do this for financial gain is a violation of the federal Fair Housing Act.

Answer 151

Racial discrimination is prohibited by any party in the sale or rental of real estate. The Jones v. Mayer decision held that the Civil Rights Act of 1866, banning all limitation on property rights on the basis of race, is the law of the land. Racial discrimination by anyone in the sale or rental of any kind of property violates this law.

Answer 152

An area that will not be the subject of marketing and/or lending efforts. A lending institution can refuse to make a loan for sound economic reasons, but it may not refuse to make a loan based solely on the location of the property. In the same way, real estate professionals may not effectively set some areas apart as unsuitable for marketing property because of the protected classification of the residents of the area.

Answer 153

C. 10 days to conduct an inspection they can waive.

Answer 154