Practice Exam 5 Flashcards
Which approach is based on the premise that many people buy a real property after comparing it to others with similar features?
Sales Comparison Approach
What would NOT be part of the development cost of a LOT?
installing curbs
installing storm sewers
constructing a building
installing street lights
constructing a building
An actual agency that arises by deduction or inference from other facts and circumstances, including the words and conduct of the parties, best describes what type of agency?
implied / ostensible
A situation in which the tenant’s lease has expired and the tenant is no longer paying rent but is living on the property is known as?
estate at sufferance
A person owned a 4-plex and lived in one of the units. Are they allowed to refuse to rent to a student from a different national origin?
Yes (1-4 unit apartments and NEVER based on race)
The purpose of ___ is to make sure that all members of the brokerage company understand the broker’s philosophy.
a policy and procedures manual
The finance fee charged by the lender to make the loan is a
loan origination fee
A contract that is binding on only one side is known as
unilateral contract
Broker wants to email alll property owners within her “farming” district every 90 days. Does the broker have to follow any sort of ad requirements?
Yes - the CAN-SPAM Act (has to offer an opt-out option)
An exercise of police power by a municipality to regulate and control the character and use of the property is called
zoning ordinances
The buyer in a land contract is the
vendee
A deed would be presumed to have been delivered when what happens?
it was recorded - means the title was properly transferred
The environmental hazard found mostly in electrical equipment is
PCBs
Title held by a husband and wife may include all of the following forms of ownership EXCEPT:
severalty
tenancy by the entireties
joint tenancy
tenancy in common
severalty - means SOLE ownership
Most homeowners insurance policies contain what clause?
coinsurance clause
title to real property is conveyed by deed when the deed is
delivered to and accepted by the grantee
The amount of a broker’s commission is established by
an agreement between the broker and the seller/buyer
If a broker deposits the buyer’s earnest money in a trust account, at what time is the seller entitled to receive it?
at the time of settlement - until a transaction actually closes, the EM is considered part of the purchase price and does not yet belong to the seller
What is the lender’s evidence of a debt (loan)?
promissory note
When doing a CMA, a salesperson would be LEAST concerned about which of the following?
list prices of properties in the area
sale prices of properties in the area
original price of the home the owner paid
number of properties of similar size/style for sale in the area
original price the owner paid for the property
A building development with designed grouping of varied and compatible land uses (housing, rec, commercial centers, industrial parks) all within one contained development or subdivision. This qualifies as a?
planned unit development (PUD)
when appraising a commercial property, the appraiser is MOST concerned with what?
income generated by the property
Why do buyers apply for a FHA 203(b) loan?
small down payments
Risk management refers to
reducing the risk to a level at which it can be managed or tolerated
a naturally occurring gas that is suspected of causing lung cancer is known as
radon
An item which was personal property but has been attached to and becomes part of the real property is a
fixture (anything attached to the property)
husband and wife own property as tenants by the entireties. What is NOT true?
both must consent to sell
each may individually file a partition suit
both are liable for a debt secured by sucker property
Can be ended by divorce
each may individually file a portion suit
What is generally incurable because it results from factors that the owner of the subject property cannot control?
external obsolescence
what type of tenancies refers to ownership of real property?
tenancy in common
The type of real estate loan that allows the lender to increase the outstanding balance of a loan up to the original sum in the note while advancing additional funds is the
wraparound mortgage
A leasehold estate is an example of what estate?
less-than-freehold estate
faillure to perform provisions of a contract without a legal excuse is known as
breach of contract
In order to determine exactly what portion of a mortgage loan the VA will guarantee on behalf of a qualified vet, the borrower must apply for a
certificate of eligibility
Can vets apply for another VA loan is they have paid off the previous one?
yes, because a vets entitlement is fully restored if that veteran has paid off all prior VA mortgages
What does NOT affect supply?
population
construction costs
government controls
labor force
population
The law that requires real estate contract to be in writing to be enforceable is the
statue of frauds
Broker represents a buyer - what is the broker responsible for?
appraisal of property
providing sound legal advice
advertising the property on MLS and online
assuring that only certain ethnic groups are shown the property
advertising property on MLS and online
