OR-NAT Flashcards
After entering into a contract, an inspection revealed that the property has extensive roof damage. The seller declined to fix it, so the parties agreed to cancel the deal. What is this an example of?
** Mutually rescinding the contract**
In this example, the parties mutually rescinded the contract as a means of remedying the situation.
- Accepting liquidated damages
- Accepting partial performance
- ** Mutually rescinding the contract**
- Unilaterally rescinding the contract
June and Joel are considering two properties. One is a townhome and one is a condominium. Which of the following is a primary difference between the two?
** Condominium owners do not own the land beneath their units.**
Condominium owners do not own the land beneath their unit, but townhome owners do. This is one reason why it’s so important to know the difference between these two types of properties
* Condominium owners do not own the land beneath their units.
* Condo owners pay association fees, while townhome owners do not.
* The square footage is different.
* Townhome owners do not own the land beneath their units
Gene and Alex bought a property that backed up to a neighborhood park. The previous owner mentioned that ever since the park was built eight years ago, the next door neighbor who works at the park has cut through the yard to get to the park rather than going around via the streets, which saves about half a mile. What kind of easement is this?
* Easement by prescription
* Easement by prescription
* Easement in gross
* Express easement
* Visible easement
Easements by prescription are created through continuous, exclusive, and long-term use of another’s
property without actual permission
A property was sold using a general warranty deed. Which one of these statements is true?
* The buyer is the grantee.
The grantor is the former owner, and grantee is the new owner. Property may only be conveyed if both
(all) owners agree to convey it
- Either the buyer or the sellers can convey the property.
* The buyer is the grantee. - The buyer is the grantor.
- The sellers are the grantees.
Which of these tasks must a licensee perform for buyer clients?
** Ensure that the buyer receives copies of all signed paperwork.**
** Ensure that the buyer receives copies of all signed paperwork.**
- Advise the buyer on how to get the seller to come down on the asking price.
* Ensure that the buyer receives copies of all signed paperwork. - Explain to the buyer how to deposit the earnest money into the seller’s personal checking account.
- Explain to the buyer that there’s really no need to review transaction documents because they’re all standard.
Making sure your clients receive signed paperwork is your responsibility. Both parties should receive copies of signed paperwork.
Nevina may be creating an implied agency agreement if she does which of these?
* Performs a CMA for an acquaintance and provides advice on setting a listing price based on other comparable properties in the area.
Any time a licensee performs tasks that are usually part of an agency agreement, there’s a risk of creating an implied agency relationship.
- Contacts a mortgage broker to find out what first-time homebuyer programs are available.
- Gives her neighbor MLS listing information for another neighborhood home that’s on the market.
* Performs a CMA for an acquaintance and provides advice on setting a listing price based on other comparable properties in the area. - Speaks to a local civic club about the homebuying process.
Which of these statements about the Superfund Amendments and Reauthorization Act (SARA) is true?
* Landowners who perform due diligence when purchasing a property, including a Phase I site assessment, may be immune from liability if the property is found to be contaminated.
Based on SARA, landowners aren’t responsible if they didn’t know the property was contaminated when purchased, if they did their due diligence when investigating the property, and if they acted responsibly when the contamination was discovered
- Buyers who are evaluating a commercial or industrial real estate purchase must have an environmental impact statement performed to ensure that no contamination exists on the property.
* Landowners who perform due diligence when purchasing a property, including a Phase I site assessment, may be immune from liability if the property is found to be contaminated. - Landowners who purchased a property after any contamination occurred can’t be held responsible for the contamination.
- No matter what the circumstances are, SARA places liability on the current landowner for the cleanup of any contamination.
Which of the following is NOT a characteristic of a corporation?
* Corporations are tangible and nontaxable.
Corporations are conjured by law. Corporations don’t physically exist, as in bricks, mortar, or even people. Corporations are intangible and taxable
- Corporations are recognized legal entities.
* Corporations are tangible and nontaxable. - Corporations are taxable.
- Corporations have tax rates separate from individual tax rates.
Sam was putting up a basketball hoop by his driveway when one of the officers of the homeowners association walked by. “I’m so sorry,” she said, “but you’ll have to take that down. Basketball hoops in direct view of the street are prohibited.” What is in place in Sam’s subdivision that would prohibit this?
* CC&Rs
Developers manage the visual and aesthetic details of a given neighborhood through covenants, conditions, and restrictions (CC&Rs)
* CC&Rs
* Deed warranty
* Law
* Regulation
What is a principal meridian?
* A north-south line used as a reference point in the rectangular survey system
** A north-south line used as a reference point in the rectangular survey system**
- An east-west line used as a reference point in the rectangular survey system
* A north-south line used as a reference point in the rectangular survey system - The center-most section identified in the rectangular survey system
- The center-most township identified in the rectangular survey system
The north-south line that runs through the initial point is a true meridian (called the principal meridian). There are 37 principal meridians, which are referred to when distinguishing between the various surveys
A deed states, “For love and affection, the receipt and sufficiency of which is hereby acknowledged.” 7What does this statement represent in the deed?
* Consideration
Consideration (something of value) is required for transfer of this deed. In a traditional sale, the consideration is the purchase price stated in the deed. In deed transfers, “for love and affection” may be the consideration offered
* Consideration
* Granting clause
* Habendum clause
* Subject to clause
Bob and Sandy are eyeing properties adjacent to the river to build a small retirement home with water views. The survey for one property shows one area where residential construction is prohibited? What might this area be?
* Floodway
A floodway is the area of a floodplain where water flows during a flood. Residential construction is prohibited in a floodway.
- Coastal zone
- Flood plain
* Floodway - Riverway
When is the seller paid the full amount of the purchase price for the property?
* At the closing
The seller is paid the property’s full purchase price at the closing
- After acceptance of the down payment or earnest money offer
* At the closing - The day after transferring title to the buyer
- The day prior to the closing
A ______ is a method of conveying real property from one party to another.
* Deed
A deed is a method of conveying real property from one party to another. A deed should be recorded to protect the parties’ interests.
* Deed
* Power of attorney
* Promissory note
* Recordation
Katherine purchased a property for $255,000, borrowing $242,250. The assessed value of the property is $249,700. The property appraisal came in at $257,000. Which of these amounts is used in calculating the transfer tax?
* $255,000
Transfer tax is calculated based on the purchase/sale price ($255,000)
- $242,500
- $249,700
* $255,000 - $257,000
You represent a buyer in a transaction that includes a 2% cooperating agent commission to be paid by the seller. Who’s your client?
* Buyer
You represent the buyer, which makes the buyer your client. Compensation doesn’t determine agency.
* Buyer
* Seller
* Seller’s agent
* Seller’s sub-agent
Marsten is the personal representative for his grandmother’s estate. After her death, he learns that he can’t distribute the estate’s property until after the will goes through probate. What does this mean?
* The court must determine the will’s validity and supervise distribution of the estate.
The executor carries out the provisions of the will and sees to property distribution after the will has been through probate
- Marsten must apply through the courts to manage his grandmother’s estate.
* The court must determine the will’s validity and supervise distribution of the estate. - The courts must contact all potential heirs to learn of their wishes regarding distribution of the estate.
- The courts must review Marsten’s ability and knowledge related to distribution of the estate.
In a real estate transaction, which of the following is established when the parties enter into an agreement voluntarily with a full understanding of the contract terms?
* Consent
Consent occurs only when the parties enter into the agreement voluntarily with full understanding of the contract terms.
* Consent
* Consideration
* Legal competency
* Legal purpose
Which one of the following statements about asbestos is true?
* No amount of it is considered safe.
Asbestos is harmful mostly when it is disturbed because the fibers are released into the air. No amount of it is safe, and it should only be removed by qualified professionals
- Homeowners can safely remove it.
- It’s harmful only if left in place.
- It’s not harmful at low levels.
* No amount of it is considered safe.
Property owner Susan and property manager Phil just entered into a property management agreement. Which of the following is NOT something that would be addressed in the agreement?
* Phil’s power to sell the property without consulting Susan
Phil has the ability to make day-to-day decisions regarding the property, but he can’t sell or refinance it without getting Susan involved.
- Fees the property manager will charge tenants
- Fees to be paid by the owner
* Phil’s power to sell the property without consulting Susan - The extent of the manager’s authority to act for the owner
Brent and Kathy recently bought a property in a gated community. While doing some landscaping they noticed that their neighbor’s shed seems to be over the lot line and on their property. What should they consult to determine if the shed is an encroachment?
* Survey
The survey will show exact property lines, and Brent and Kathy will be able to use that to determine if the shed is encroaching on their lot.
- Deed
- HOA covenant
- Mortgage
- Survey*
What type of property manager negotiates favorable leases with businesses that include stepped-up increases in leasing rates for long-term tenants?
* An office
Office property managers need to make sure they build in stepped-up increases in leasing rates.
* An office
* A planned unit development
* A real estate development
* A residential
Randa is trying to lower the vacancy rates for the commercial property she manages because her revenue targets will increase by 8% over the next year. What type of budget contains this revenue detail?
** Operating Budget**
The operating budget is an annual budget that includes income and expenses for a property’s operation
Capital reserve
** Operating budget**
Stabilized
Variable
Which one of the following actions would result in the legal termination of an agency agreement?
* The term specified in the agency agreement expired.
If the specified term in the agency agreement expires, the agency agreement would be terminated
- The client wants the seller to make improvements to the property.
- The client wants to attach an addendum to the sales contract.
- There’s an unexpected death in the agent’s family.
* The term specified in the agency agreement expired.