Midterm Study Guide Flashcards
In general, the most widely recognized real estate activity is brokerage
True
Property management, appraisal, financing, and development are all
Separate professions within the real estate industries
All of these factors tend to affect demand for real estate except
Construction and material cost
When the population of a town suddenly increases, which of these is most likely to occur?
Real estate prices will increase
All of these are examples of government policies that can affect the real estate market except
A shortage of skilled labor or building materials
The idea that no two parcels of property are exactly alike is called
Uniqueness
Finding funds to put together real estate transactions is called appraising
False
The six types of real estate mentioned in this unit are residential, commercial, rental, agricultural, mixed-use, and special purpose
False
If payments on a real estate loan include payment of part of the principal owed, the property owner will benefit from
Equity buildup
Office building an detail space are examples of
Commercial real estate
When the supply of a certain commodity decreases while demand remains the same, the price of that commodity will tend to
Increase
All of these factors can affect the supply of real estate except
Demographics
A property owner who does not want to the everyday tasks of managing a rental property can hire a
Property manager
Real estate professionals generally tend to specialize in one activity or class of real estate
True
Demand for real estate usually drops when jobs are scarce
True
The amount invested in a property is the owner’s debt
False
The supply of labor and the cost of construction generally have a direct effect on the demand for real estate in a market
False
Warehouses, factories, and power plants are examples of commercial property
False
Market trends in supply and demand can be overturned by a natural disaster, such as a hurricane or earthquake
True
The real estate market is generally slow to adjust to the changing forces of supply and demand
True
Owners with littoral rights enjoy
Unrestricted use of available waters, but they own the land adjacent to the water only up to the average high-water mark.
The Law of the Sea identifies national territorial waters as those extending from a baseline up to
12 nautical miles
The most important economic characteristic of land is
Location
A sales contract explicitly excludes some rose bushes from the sale. This provision is necessary because because the rose bushes are ordinarily considered to be
Real estate
Another word for uniqueness is
Non-homogeneity
The developer added sewer lines and utilities and built two streets. What are these items called?
Improvements
Growing trees, fences, and buildings are all considered
Real estate
A buyer particularly liked the ornate brass lighting fixtures in a seller’s house and immediately made an offer, which the seller accepted. On moving day, the buyer discovered that the seller had replaced all the ornate brass lighting fixtures with plain chrome ones. Which of these is most likely a correct assumption
Buyer. “Lighting fixtures are normally considered to be real property”
All of these are included in the bundle of right except
Expansion
A rural landowner has posted a number of “No Trespassing” and “No Hunting” signs on his property. Which “stick” in the bundles of rights gives the landowner this authority?
Exclusion
Which of these is an example of an economic characteristic of land?
Scarcity
Methods of annexation, adaptation of the item, and agreement of the parties are the legal tests for determining whether an item is
Real property or personal property
To determine whether an item is a fixture, the most important test is whether
The person who installed it intended for it to be permanent
Land rights, mineral rights, and air rights included in the definition of
Real estate
An important characteristics of personal property is that it it
Movable
A right or privilege tied to real property, although not necessarily part of the property, is called an
Appurtenance
A seller asked a real estate professional to draw up several documents relating to seller financing. Under these circumstances, the real estate professional should
Refer the seller to an attorney
The new owner of s condominium received the right to use a parking space in the multi-unit building. This right is an example of an
appurtenance
Manufactured housing is the term used for a factory built home as of
1976
An important distinction between real and personal property is that real property is transferred by a
Deed
Every workday for the past twenty years, an accountant has paid to park in a specific place in a nearby parking garage. Today, the accountant receives a notice that the garage will be replaced by an office building. Can the property owners do this after all the years the accountant parked there?
Yes, because the accountant only had a license
If the government acquires privately owned real estate through a condemnation suit, it is exercising its power
.
Eminent domain
There is notice in the public record of pending litigation affecting the title to a property. The notice reflects which of the following
A lis pendens
What are deed restrictions ?
Private agreements affecting the use of the land
A spouse dies, leaving real estate owned as separate property to the surviving spouse, but with the provision that when the surviving spouse dies, the real estate goes to specified charity. The surviving spouse owns a bundle of rights but does not own the right to
Will the property
For as long as anyone can remember, neighbor families have used a footpath to get to the river. Recently, the current owner of the footpath erected a fence across the path. Which of these easements might the neighbors claim would require the owner of the footpath to remove the fence?
Easement by prescription
A property owner conveyed a one-acre parcel of land to a preschool. The deed stated that the property was to be used only as a playground; the property owner reserved a right of reentry. What kind of estate has been granted
Fee simple subject to a condition subsequent
The state requires enough land to build a four-lane highway. For the state to acquire the needed land from a property owner, the state must so all of these except
Reimburse the property owner for the amount that the property owner paid for the land
A property owner gave land to a school “so long as the land is used only for academic and recreational purposes.” The ownership interest granted here is called
Fee simple determinable
A resident of Sunny Oaks owned two acres of land, sold one, and reserved an easement appurtenant for entrance and exit over that acre to reach the public road. The acre that was sold is
The servient tenement
A patient died in a nursing home. The deceased left no will and had no heirs. What happens to the deceased’s $250,000 estate?
It’s given to the state or country
The state’s authority to enact legislation to protect the public is passed through to municipalities and countries by
Enabling acts
In some states, a husband could not sell his property unless the wife also signed the deed. The wife’s interest was called
Dower
The electric company has the right to extends its wires over 50 parcels of land. What right does the electric company have?
Easement in gross
If the dominant estate merges with the servient estate, which of these is TRUE?
The easement is terminated
A large undeveloped parcel of land on the side of a hill borders a road on its lower edge. The owner of the parcel sells the lower portion of the property to a buyer who builds a home on it. Several years later, the upper portion of the property does not border any road. To gain access to the road, the owner of that property has a legally implied right to an easement
By necessity
Which of these must exist for an appurtenant easement to exist?
Two adjacent parcels, different owners
The holder of a life estate is called a
Life tenant
The homestead exemption in a town is $15,000. Four years ago, a resident purchased a home for $58,000 and then experienced hard times. At a court-ordered sale, the property is purchased for $60,000. If the resident has an outstanding mortgage balance of $35,000 and credit card debts amounting to $24,360, how much is protected by the homestead exemption?
$15,000
Which of these is defined as any claim, charge, or liability that attaches to real estate?
Encumbrance
Ina tenancy in common, if the fractions of ownership are not stated in the deed, how are they determined?
The tenants are presumed to hold equal shares
All of these are characteristics of a tenancy by the entirely except
The surviving spouse automatically owns one-half of the property acquired during the marriage
Three siblings bought a farm together. The deed listed all of their names, but failed to designate any form of concurrent ownership. What form of ownership are they presumed to have taken?
Tenancy in common
When two or more individuals decide to buy a property together, it results in a
Co-ownership
Which of these cannot take title as a joint tenant with right of survivorship?
A corporation
Membership camping is similar to
Time-share use
Three friends agree to purchase and operate a property as a permanent investment. Two friends each contribute $50,000. The third contributes $30,000 and agrees to manage day-to-day operations of the business, which the friends call “Property Group Partners”. Only the third friend has any right to participate in the operation of the venture. If a structure on the property collapses, resulting in injury and property damage worth $275,000, what will be the liability of the friend who contributed $50,000.
$50,000
All of these utilities are required for a joint tenancy except
Unity or ownership
When a corporation takes complete ownership of a property, it is to be ownership in
Severalty
Shareholders in a cooperative receive shares of stock that entitle them to a
Proprietary lease
Two people, each of whom has two children, are getting married, and they are buying a house together. They ask the real estate professional for advice about how to take a title. What advice should the real estate professional offer?
Suggest that they consult an attorney
In a large high-rise condominium, each unit is owned by individual owners. The elevators, parking garage, and swimming pool are called
Common elements
A farm that is a quarter-section is
160 acres
Air lots, condominium descriptions, and other vertical measurements may be computed from the U.S> Geological Survey
Datum
All of these systems are used to express a legal description except
Benchmarks
The lot-and-block systems starts with the preparation of a
Subdivision plat
Which of the following most accurately describes the dimensions of a quarter-section?
1/2 mile by 1/2 mile
A metes-and-bounds description is required in a rectangular survey system description when
A tract is too small to be described by quarter-sections
The end of a metes-and-bounds land description is always a
Point of beginning
The base units of the rectangular survey system are the
Base lines
Before granting a zoning variance, a zoning board of appeals must
Hold a public hearing so that neighbors may voice their opinion
A plat map is best described as
A detailed map that illustrates the geographic boundaries of individual lots
All of the following would be included in a zoning ordinance except
Objectives for future development of the area
A new structure has been completed to the satisfaction of the inspecting city engineer. What documentation must be issued before anyone can move in?
Certificate of occupancy
A developer has included a playground and running trails between the commercial properties facing a busy street and the houses further back in the subdivision. The recreational area is considered
A buffer zone
A state delegates zoning powers to a municipality through
An enabling act
Which of these best defines zoning density?
A restriction on the average number of houses per acre
When an area was rezoned as residential, a stove grandfathered in and allowed to continue business. This is an example of a
Nonconforming use
Zoning ordinances affect all of these except
Racial composition of neighborhoods
A city passed a zoning ordinance that prohibits all commercial structures over 30 feet high. A company wants to build an office building that will be 45 feet high. In order to obtain permission for the building, the company may apply for
A variance or zoning change
Lead is commonly found in all of these except
Insulating material
How can property owners help avoid carbon monoxide exposure?
Have fuel-burning heating systems checked and maintained annually
Why is mold a serious environment problem in buildings?
It destroys material it grows on and causes health problems for occupants
Lead-based paint is found in about 75% of all private housing built before
1978
What causes mold problems in buildings?
Chronic moisture problems
A seller accepts an offer on her home, which was built in 1892. Which of these statements about lead-based paint is false?
If the buyer requests a lead-paint inspection, the seller has ten days in which to obtain one at her own expense
Which of these has been proven to pose a health hazard ?
Radon, Asbestos, Lead-based paint (All of these)
Sealing off asbestos instead of removing it is called
Encapsulation
A newspaper advertisement states, “One-bedroom apartment immediately available. Good neighborhood. Only able-bodied individuals should apply.” Which of these is true?
The ad is not permitted under HUD’s advertising guidelines because it discriminates on the basis of disability
A real estate broker sends a bright yellow flyer to all the owners in a neighborhood. The flyer contains a reprinted article from a local newspaper describing the future relocation plans of various employers in the region and this statement, printed in bold red letters: “Warning! The failure to sell your property within the next six months could cost you a bundle!” At the bottom of the page was printed the broker’s name, photo, office address, and phone number. Based on these facts, the broker
Has committed no offense
A neighborhood has a large population of recent immigrants from Asian countries. When a couple that has just arrived from South Korea came to a broker to look for a home to buy, he suggested that they look at listings only in this neighborhood. The broker violated the Fair Housing Act because his actions constitute
Steering
Which of these are exempt from the federal Fair Housing Act?
Owner-occupied buildings with no more than four units
The Fair Housing Act does not prohibit discrimination on the basis of
Sexual preference
All of these people are considered members of protected classes except
A person convicted of the manufacture or distribution of illegal drugs
An occupancy requirement is exempt form familial status protection under the Fair Housing Act if the housing is intended to be occupied by
Persons 62 years of age or older
Under what conditions can someone refuse to rent to an African-American on the basis of race?
Never
A landlord refuses to rent a vacant apartment to a couple with two small children because he is concerned the children will disturb the sick and elderly woman in the apartment next door. Which of these is most likely true?
The refusal constitutes a violation of the Fair Housing Act because it discriminates on the basis of familial status
A seller tells a real estate professional “don’t show my house to anyone not born in the United States.” In this circumstance, the professional
Must decline to take the listing with this requirement
All of these are violations of federal antitrust law except
Commission splitting
When communicating with clients or consumers via email, all of these are examples of professional etiquette except
Responding to emails within one week
An important purpose of the E-sign Act is to
Give contacts created using emails the same legal standing as those on paper
All of these are requirements for independent contractor status used by the Internal Revenue Service except
Specific hours stated in a written agreement
What is the main value of a multiple listing service (MLS) for sellers?
It exposes the property to a greater number of prospective buyers
Why have real estate laws been put into effect
To protect the public and establish standards of professionalism
An arrangement to sell one product only the buyer purchases another product as well is called a
Tie-in agreement
All of these are ways for a broker to charge for services except
Standard community rate
What is the compensation plan called if a sales associate’s commission split increases depending depending on whether the sales associate achieves higher production goals?
Graduated commission split
What is the practice called when a consumer selects specific services to use and only pays the real estate professional for those services?
Unbundling services
