Practices Flashcards
After the close of escrow, the buyer and seller decide to cancel the transaction. What action needs to be taken
A new deed must be prepared and recorded from buyer to seller
RESPA does not cover
Loan assumptions
When land is purchased with a mortgage, the buyer may have trouble obtaining a construction loan without a
Subordination clause
An owner knows a broker is showing the owners property without authority, he owner could be liable for what?
Certain acts of the licensee
Rate of return relates to
Cap rate
What basis is used to charge taxes in a cooperative
Pro-rata share
What is not exempt under federal fair housing
A “for sale by owner” selling a five-plex
Four people make an offer on residential investment property.
They give broker 40,000 earnest money deposit, he steals the money.
If payment is made from recovery fund, what is the max amount the parties may receive.
30,000
In deed, what is the clause called that deals with easements and liens
Limitation and restriction
Which of the following would not appear in a listing agreement
Houses of worship
If a parcel of real estate is near a toxic waste site, what is the agent obligated to do
Disclose the fact
When mortgage banker borrows on existing loans held by banker, what is this called
Warehousing
A salesperson enters into a contract with a buyer and seller and opens escrow.
Before Coe, his brokers real estate license is suspended. What is status of salespersons commission
Salesperson may receive a commission
What is not a charge to seller on settlement sheet
Property insurance
What is true if a property has a first and second lien in default
Second would terminate if the first had successful judicial foreclosure
When a person donates private land for public use, this is called
Dedication
What does a defeasance clause state
Lenders claim has been cancelled
A broker who acts as a property manager is what type of agent
General
Families with children may be denied occupancy of rental units if all the units are reserved exclusively for people_____ and older
62 years
What method best defines
Present worth of future income
Income approach
What form of real estate investing falls under federal securities laws.
REIT
How would abandoned property revert to state
Escheat
RESPA provides for all, except?
A limit on loan points
What does not violate RESPA.
Giving the buyer the names of lenders
A deed was given to two brothers but it didn’t indicate how title was taken. This form of ownership would be
Tenancy in common
When land is offered intestate it would be regulated by the office of interstate land sales registration.
What number of lots must be offered for the regulation to take place
25 or more
What is it called when a structure is adding value to the land
Economic life
What is not a security instrument
A note
What is personal property
Lease
When an exchange of real property takes place, which of the following triggers a taxable event
Assuming a loan of lesser value
Seller tells broker they would like to sell home furnished.
Agent should not do what
Add personal property to deed
Economic life of building is
Period of time it remains profitable to operate
What is weakest type of will
Nuncupative
An exclusive agency listing agreement
Allows seller to sell and not pay a commission
A home is located next to a factory. This is considered
Economic depreciation
A broker runs ad for a sales person to work certain hours and holidays. Salesperson is most likely considered an______
Employee
Joe gave Larry permission to cross over his land for ten years in order to get to the lake, Larry has what from joe?
License
What is it called when a structure is adding value to the land.
Economic life
What is a person called who recieves real estate in a will
Devisee
When a borrower take a variable rate mortgage, what is true regarding the margin
It remains constant for the life of the loan
What can be allowed for recording easements
Placing an encumbrance on the property
What is it called when a voluntary transfer of real estate takes place according to a will
Alienation
What’s it called when party is granted a property upon the condition that a certain use continue in the future
Defeasable fee
How is title insurance paid
Once at the beginning
What to mortgages not contain
A subrogation clause
In order to determine cap rate.
Income divided by value
What is not exempt under the federal fair housing law
A for sale by owner selling a five-plex
