Practice Exam 4 Flashcards
5 acres of land were zoned for residential and area surrounding too. If the owner of the 5 acres wants to re-zone to commercial, what would they have to obtain to allow for the change?
spot zoning
When a transaction that involves earnest money has consummated, when and how must the sponsoring broker disburse the funds?
according to the terms of the contract regarding the release of earnest money
Amount of a loan expressed as a percentage of the value of the real estate offered as collateral is the
LTV ratio
5 individuals join together to purchase a property and they own the property in severally. What type of business organization have they formed?
corporation
Person who has the entire bundle of rights in a parcel of real estate unencumbered de deed conditions is said to own a
fee simple absolute estate
The type of lease that is for an indefinite amount of time and may be cancelled by the landlord or tenant at any time is known as a
estate at will
The loss of value due to the normal wear and tear on a property is what type of depreciation?
physical deterioration
Points are usually charged to do what?
improve the yield on a mortgage
3 people own a property as joint tenants. 1 tenant dies, how is the property now owned?
The 2 remaining joint tenants now own 1/2 of the property each as joint tenants
a lot measuring 120’x200’ is selling for $300 a front foot. What is its price?
120’ x $300 = $36,000
If the amount realized at a sheriff’s sale as part of a mortgage foreclosure is more than the amount of the indebtedness and expenses, then the excess belongs to whom?
the mortgagor (previous owner)
As an agent for the seller, a real estate broker can
solicit an offer to purchase the property from a prospective buyer
The physical characteristics of land represent the land’s immobility, non homogeneity and
indestructible nature
A metes and bounds legal description is used to describe what?
irregular pieces of property
An extension of credit from a seller to a buyer to allow the buyer to complete the transaction is what type of mortgage?
purchase money mortgage
Tyler purcahsed a home and applied for a mortgage at Southgate Bank. The loan was made and payments were paid on the 1st of each month, after 3 years Tyler lost his job and could not make the payments. What can the mortgagee do?
file a court action to have the house sold to satisfy the debt
Bill is building a new house and makes sure the 1st floor joists are completely covered with sub-flooring upon which exterior walls and interior partitions are erected. What type of frame construction is this?
platform frame
Which is not an involuntary method of conveying property?
escheat
condemnation
quitclaim
adverse possession
quit claim
PM’s represent the ____ interest, not the _____
owner’s, tenant’s
A deed conveys a ____ interest in real estate
present
A will conveys ____ interest in real estate until after the death of a testator
no
A will conveys __ interest in real estate until it is ___
no, probated
If the NOI and the cap rate were known, how would an appraiser find the value of a property using the income cap approach to value?
NOI / cap rate
High vacancy rate may be caused by any of the following EXCEPT:
inept management
poor location
excessive rent
impressive amenities
impressive amenities
Some states also allow a licensee to act in a non-agency capacity. Depending on the sate, the licensee could be known as all of the following EXCEPT
transaction broker
subagent
facilitator
coordinator
subagent
What is the primary benefit of radio and TV ads for real estate firms?
they reach a much larger audience than most other mediums
The benefit, interest or value that induces the parties to enter into a contract is known as
consideration
Buildings that were erected before the enactment of a zoning ordinance and do not comply with the zoning limits are called
nonconforming use
If a property owner tells a licensee that their commission will be anything above x listing price, the listing is known as
a net listing
After contracting for a house, a buyer applied for a conventional loan at a mortgage banker. What would NOT be listed on the good faith estimate of closing costs?
broker’s commission because they are usually paid by the seller
a recorded value deed must contain all of the following EXCEPT
signature of grantor
signature of grantee
granting clause
an acknowledgement
signature of the grantee
an oral contract in which the parties state the contracts terms and express their intentions in words is known as
an express contract
What is NOT a type of listing?
open
exclusive agency
exclusive right to sell
MLS contract
MLS contract
Blockbusting is an attempt
to panic a neighborhood into thinking property values will decline due to unwanted person(s) moving in
A broker places a buyer’s earnest money deposit in his personal funds account. The broker does not spend the money before the closing. The broker has
commingled funds which is an illegal act
It is necessary to calculate a dollar value for depreciation when using what approach?
cost approach to value
What would require the value of the land to be calculated separately form the value of the improvement?
cost approach
The rights of ownership of real property does NOT include the right of
compatibility (deals with the transaction and not the property itself)
A contract in which all the parties have fulfilled all their promises and performed the contract is known as
an executed contract
The Civil Rights Act of 1866 permits discrimination in housing based on race under what circumstance?
NEVER
Broker decides not to disclose to a buyer that the property’s well is almost dry. The broker has
committed passive fraud
The government’s right to make laws and regulations for the general welfare of the public is known as
police powers
