Practice Exam 3 Flashcards
In the law of ___ in the real estate vocation defines the rights, duties and responsibilities of all legal parties
Agency
Ashley pays HOA dues of $660 for the year. She sells her home and closes on June 15. What is the amount of the prepaid HOA portion due back to Ashley using the 12mo-360 day proration?
seller credit, debit buyer $660/12mo = $55/month $55 / 30 days = $1.83 day July - Dec = 6mo June - 15 days 6mo x $55 = $330 15 days x $1.83 = $27.45 $330 + $27.45 = $357.50
If a broker procures a buyer who can meet the seller’s terms and conditions, is the broker due a commission?
YES
If a broker produces an offer with earnest money is the broker due a commission?
NO
What is the least important item in a PM agreement?
rental price of each unit
A recorded legal doc that gives constructive notice that an action affecting a certain property has been filed in court is called
a lis penden
Commercial zoning can regulate
intensity of usage
1,000 cotton plants is classified as an?
emblement
Undue influence or duress applied to one party to a contract make the contract
voidable
Ann planted a rose garden on the corner of her neighbor’s property and the neighbor did not know. The statutory period has elapsed and Ann claimed the rose garden. Would she have a good change of getting rights to an easement by prescription?
Yes bc she had made open use of the property
If Jamie’s quarterly interest payments are $150 on a $12,000 loan, what is her annual interest rate?
$150 x 4 quarters = $600/year
$600 / $12,000 = 5%
What deed is the most commonly used in the US?
Warranty (guarantees the seller a clean title)
Can a seller be an escrow agent?
NO
IF a client of a licensee relied on certain promises made by the licensee, and these went unfulfilled - the licensee may be liable for deceptive trade practices, and violations of the state’s
consumer protection act
Who is usually NOT an agent?
Person working for MLS, PM for management corp, broker employed by a seller, or a person working for someone else under power of attorney?
Person working for someone else under power of attorney
Property sold for $12,100 and gains a 10% profit for the owner. What was the original cost?
100% + 10% = 110%
$12,100 x 110% = $11,000
2 story home measures 48ft x 25ft and is $70/SQFT. What is the construction cost?
48 x 25 = 1200 x 2 = 2400 SQFT
2400 x $70 = $168,000
a wife’s life estate interest in the husbands property is known as
dower
Building sold for $60,000 with a 10% down payment and obtained a loan. 1% loan origination fee - what was the total cash used for the purchase?
$60,000 x .9 = $54,000 loan x 1% = $540
$60,000 x 1% = $6,000
$6,000 + 540 = $6540
Broker produces a buyer who is interested in buying a listed property. At closing, the seller is unable to provide title and the buyer cannot come up with financing to purchase. Is the broker due a commission?
No, because he did not produce a willing and able buyer
Home appraised for $93,000 and borrower put 20% down. What is the loan amount?
$93,000 x 80% = $74,400
$82,500 loan that is 80% of the appraised value. What was the appraised value?
$82,500 / 80% = $103,125
Income approach to value would be most important in the appraisal of what type of building?
Office building
Tenant installed a satellite TV dish 3 years ago and took it with her when she moved. The conversion of real property to personal property is an example of
severance
IF a person believes that they are a victim of illegal discrimination in housing, they would
file a complaint with HUD
Quarterly payments of $1340.63 on a $65,000 - what is the interest rate?
$1340.63 x 4 = $5362.52 / $65,000 = 8.25%
Which is NOT an example of police power?
zoning ordinances
building codes
restrive covenants
city planning requirements
restrictive covenants - they are private matters enforced by residents
Homeowner just discovered they have a termite infestation. This is an example of
possible curable physical obsolescence (curable = cost if less than the economic benefit of a problem free home)
What is the cubic footage of 60ft x 8ft x 3in?
3in / 12 = 0.25
60 x 8 x .25 - 120
$154,000 sale 6% commission and 50/50 split. What is the broker’s commission?
$154,000 x 6% = $9240
$9240 / 2 = $4620
Depreciation refers to
loss of value in improvements from any cause
Federal Communications Commission provides a list of phone numbers of consumers who do not want to be contacted by telemarketers. This is commonly called
The National Do Not Call Registry
A listing agreement is a legal
contract between the seller and brokerage that est. their agency relationship
in 1988, the Fair Housing Amendments Act added which 2 protected classes?
handicap and familial status
$84,500 house, $2,000 earnest money, loan for $67,600. March 15 (buyer) settlement and prorated taxes of $1,880.90/year have been paid. Add closing costs of $1250. Using the actual number of days method, how much cash does the buyer need to bring to the settlement?
March 16 - Dec 31 = 291 days $1880.96 / 365 = $5.153 $5,153 x 292 days = $1,504.97 $84500 - 67600 = $16,900 down payment - $2,000 EM = $14,900 $14,900 + $1,504.97 + $1250 = $17,654.77
Bilateral contrat is a contract
where a promise by 1 party is given in exchange for a promise by another party
Permission granted to hunt on another’s land is an example of
license
Recorded history of matters that AFFECT the title to a specific parcel of real property is called
abstract of title
What BEST describes why a neighborhood analysis is important to the informed licensee?
it can help render an opinion of value
If an owner cancels a listing in order to contact the potential buyer and sell to them directly, can the agency relationship be terminated?
NO
If a seller tells a licensee what the want to list the property at, what should the licensee suggest as a sales price?
within range of the most recent “asking and sold”: comparables in view of the seller’s urgency and market conditions
The process in which boundaries are measured and land areas are determined is called
a survey
The remnant of an estate that the grantor holds after they have granted a life estate to another person, if the estate will return to the grantor, is called
reversion
Licensee receives 35% of total commission from her broker, what is her BROKER’S share is the property sold for $23,000 and a 6% commission?
$23,000 x 6% = $1,380
$1,380 x 65% = $897
Tenant rents a space for $1,500/mo and agrees to pay 3% gross annual sales over $200,000. What were gross sales if total rent paid for the year was $30,000?
$30,000 - $18,000 (1500x12mo) = 12,000
12,000 / 3% = $400,000 + $200,000 = $600,000
Seller conveyed a quitclaim deed to the buyer.Upon receipt of the deed, the buyer may be certain that
all of the seller’s interests in the property belong to the buyer
