Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CE SHOP - MAIN POINTS > PREP AGENT + PRACTICE FINAL > Flashcards

PREP AGENT + PRACTICE FINAL Flashcards

1
Q

An ownership interest that permits multiple purchasers to buy interests in the same piece of real estate is a

A

time-share.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The Four Essential Elements: (STUD) (4 elements of value)

A

SCARCITY: The availability of a similar type of property in the open market;
TRANSFERABILITY: The ability of the property to be transferred;
UTILITY: The ability of the property to fulfill a particular need or purpose in the open market;
DEMAND: The desire for a such type of property in the open market;

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The principle of appraising, which states that the maximum value is achieved when the property is in harmony with its surroundings, is the principle of

A

conformity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Which of the following does not result in a lien?

A

Private restrictions.

Covenants, Conditions and Restrictions are generally imposed by planned developments, Homeowner’s Associations and Condominium Associations. They do not result in liens.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

The unit of comparison when using the market data approach to appraise a single-family residence, is the:

A

Entire property;

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What does the term “Quiet enjoyment and possession” mean?

A

Possession without disturbance from owner of paramount title

Paramount title means any legal interest in the premises that is not terminable at the will of the landlord or at the time the tenant is entitled to take possession.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

how many acres in one square mile?

A

640 acres

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

The type of mortgage loan which permits borrowing additional funds at a later date is called:

A

An open-end mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

A “GPAM” mortgage loan provides for:

A

Graduated Payment Adjustable Mortgage (GPAM) allows for the deferment of certain principal payments. It is a form of negative amortization loan.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Which of these federal laws requires that finance charges be stated as an annual percentage rate?

A

The Truth in Lending Act of 1968

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

contract wherein the broker represents a buyer or tenant is called

A

a buyer broker agreement or an exclusive right to represent agreement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

The quantity survey method, unit-in-place method, and square foot/cubic foot methods of real estate appraisal most directly relate to the:

A

cost approach

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

this states that a person cannot take a position that contradicts a prior position. In other words, a person can’t go back on their word, especially when others have taken action based on that word.

A

The doctrine of estoppel

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How does one determine the gross rent multiplier?

A

Price divided by the monthly rent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

is a federally-chartered enterprise owned by private stockholders that purchases residential mortgages and converts them into securities for sale to investors; by purchasing mortgages

A

Federal National Mortgage Association (FNMA)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

how to calculate gross rent multiplier?

A

rent divided by selling price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

The selling price on a buyer’s closing statement is treated as:

A

a debit to the buyer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Who is the recipient of the mortgage insurance payment on an FHA insured loan?

A

The fha, even though the borrower pays for it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Who is the recipient of the mortgage insurance payment on an FHA insured loan?

A

FHA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Which of the following best describes an earnest money agreement?

A

a legally enforceable contract requiring the signatures of all parties to be valid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

In tenancy in common, there is always a unity of:

A

Possession

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What would be most important to an appraiser in assessing the value of a vacant lot?

A

Highest and best use

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

The CAN-SPAM Act, a law that sets the rules for commercial email, establishes requirements for commercial messages

A

they must include a physical address for the sender. It also gives recipients the right to have you stop emailing them and spells out tough penalties for violations.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

According to the Truth-Lending Law (Regulation Z) the disclosure statement for a borrower must include which of the following?

A

The annual percentage rate, late payment charge, and the total dollar amount that will be repaid over the life of the loan.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Desk cost is

A

total operating expenses of the office, including salaries, rent, insurance, etc., divided by the number of salespersons

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

A loan fee charged by a lender to increase the lender’s yield on a loan is:

A

a discount point.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

In some states, the instrument used instead of a mortgage is a:

A

Deed of trust.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

The BEST description of a fixture is:

A

Personal property that is now considered real property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

The covenant in a deed which states that the grantor is the owner and has the right to convey the title is called:

A

covenant of seisin

Another outgrowth of the feudal system, “seisin” derives from the French meaning to “sit upon or own” and gives owners the right to sell or transfer property at will.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What months of the year has 30 days ?

A

NAS-JUNE (November, April, September - June)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What is the difference between Market Value and Market Price?

A

Market Value: The listing price

Market Price: The actual price paid for the property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

a mortgage without a promissory note

A

is still valid

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

does the FHA guarantee loans?

A

No, they insure it rather. VA loans are indeed guaranteed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

a township contains

A

36 section or square miles (6 by 6)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

A section has

A

640 acres

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

what does it mean when the buyer or seller has the day of closing?

A

they have to pay the bill. it also means a day has to be added or reduced into the calculation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

what does a promissory note do?

A

it secures the deed or mortgage

it also dictates the terms of the mortgage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

units of one square mile is called

A

sections

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

what does arrears mean?

A

money that is owed and should have been paid earlier.

40
Q

what is the process between commendation and eminent domain?

A

Commendation is the actual process

eminent domain is the right

41
Q

what is the difference between commendation and eminent domain?

A

Commendation is the actual process

eminent domain is the right

42
Q

an EBR exist when a customer make an inquiry for how long?

A

3 months prior

and it exist up to 18 months after a transaction

43
Q

what is a car mortgage?

A

it is a personal property loan

44
Q

The Federal National Mortgage Association (FNMA) was created specifically for:

A

Increasing the amount of money available for financing houses and buying loans to keep the market liquid

45
Q

what is a mortgage broker?

A

As an real estate sales professional, a real estate mortgage broker bring parties together to get a loan acting as an intermediary

46
Q

the columns of townships running north and south is numbered according to its distance from the principal meridian is

A

Ranges

47
Q

A poisonous gas given off as part of combustion is known as

A

carbon monoxide

48
Q

What is a back-up contract?

A

when the seller accept a second contract when he or she has an executory contract

49
Q

What is the main difference between a lease purchase contract and a lease with an option to purchase?

A

Lease contract: the buyer is required to buy the property

Lease with an option to purchase: the buyer is not required to purchase the property

50
Q

What are the east to west rows of townships called?

A

Tiers

51
Q

The system of legal description that defines a parcel of land by tracing its perimeter is known as:

A

metes and bounds.

52
Q

BRRETA stands for

A

Brokerage Relationships in Real Estate Transactions Act. Its intent is to provide consistency and a legal framework under which individual broker agreements operate.

53
Q

Who enforces the Georgia Fair Housing Law?

A

The Georgia Commission on Equal Opportunity.

54
Q

what does RESPA stands for?

A

Real Estate Settlement Procedures ACT) applies to one-to-four family residential dwellings. It is primarily there to provide consumers with enough information to enable them to shop for settlement services.

55
Q

A corporation takes title to real property:

A

in severalty.

56
Q

how much is one square miles?

A

it is 640 acres

57
Q

Are cooperatives owners of real estate?

A

No they are not!. they lease rather and their shares are considered personal property

58
Q

Can executory contracts be changed?

A

Yes, with an amendment. Executed contracts cannot be changed though

59
Q

A “lis pendens” is a

A

legal document which gives notice that an action or legal proceeding (mechanic’s lien filing, foreclosure) is pending in the courts that could affect the title to the designated property.

60
Q

A lender that invests a major portion of its assets in long-term real estate loans, prefers large loans on commercial properties, and does not like to service its own loans is a:

A

life insurance company

61
Q

Which of the following liens does not need to be recorded to be valid?

A

real estate tax lien

62
Q

What are the parties in a deed of trust?

A

Trustor: Owner
Beneficiary: Lender
Trustee: Neutral third party

63
Q

An agreement that ends all future lessor-lessee obligations under a lease is called:

A

a surrender

64
Q

How is the capital gain calculated when an owner sells a principal residence?

A

By subtracting the property’s adjusted cost basis from the net sales price

65
Q

it is a written notice that a lawsuit has been filed concerning real estate, involving either the title to the property or a claimed ownership interest in it.

A

“Lis pendens” is Latin for “lawsuit pending”.

66
Q

it is a charge or claim upon property that arises by virtue of specific statutes that address the relationship between the property owner and the party given the ability to place the lien.

A

statutory lien. (mechanic lien is under this)

67
Q

it means that the prospective buyer has obtained the right to acquire ownership of a property currently owned and occupied by another.

A

“Equitable title”

68
Q

The primary purpose of a deed is to:

A

transfer title rights.

69
Q

What is the difference between net and gross lease?

A

Net lease: lessee pay for expenses, taxes ect

Gross Lease: Lessee pays a flat rent price

70
Q

The seller under a land (installments) contract is called:

A

the vendor.

71
Q

What is the difference between reproduction cost and replacement cost?

A

Reproduction: Cost to build exact replica
Replacement: Cost to build similar but not exact

72
Q

What is the best way to appraise the land value of a property?

A

The allocation method (also called the abstraction or extraction method) is an appraisal method whereby the appraiser estimates the land value of any improved property by deducting or abstracting the value of any site improvements from the overall sales price of the property. The amount remaining is the estimated sales price or indicated value of the land.

73
Q

Which of the following does not have to be included in a written listing agreement?

A

The legal description is not required in most areas, and an adequate description such as the property address is satisfactory.

74
Q

On a settlement statement, prorations for real estate taxes paid in arrears are shown as a:

A

debit to the seller and a credit to the buyer.

75
Q

tenancy by the entirety is most commonly found in

A

Married Couples . this type of tenancy has the right of survivorship

76
Q

it protect or exempt a portion of the area or value of the land from judgments or debts.

A

homestead rights.

77
Q

what is the difference between reversionary interest and remainderman interest?

A

reversionary interest: if the title holder breaks the condition, the property goes back to the seller
remainderman: the life state is good for the life of another person

78
Q

A property owner conveys a life estate to her uncle and names her son as remainderman. On the death of the uncle, the son will have what type of estate?

A

The son holds a remainder interest in the property, and will have a fee simple absolute estate upon the death of the uncle, the life tenant.

79
Q

what is the difference between improvements and alterations?

A

Improvements: streets, sidewalks, fences, ect
alterations: increase the value of things such as land, but are not improvements.

80
Q

An appraiser was hired by Joe to appraise Bill’s property. With whom should the appraiser discuss his findings?

A

Joe

The results of an appraisal are confidential. The appraiser is working for the entity that orders the appraisal (usually the lender). In this case, Joe ordered the appraisal, so that’s who gets the final appraisal.

81
Q

The major cause of loss of value in real property is due to:

A

Obsolescence is the major cause of loss of value in real property and can refer to functional or economic obsolescence. The word obsolescence literally means the condition of no longer being used or useful, or the condition of being obsolete.

82
Q

this provides that when property is sold, the lender may either declare the entire debt due immediately or permit the buyer to assume the loan at an interest rate acceptable to the lender.

A

A due-on-sale clause, or alienation clause

83
Q

When a buyer gives the agent a post dated check, it:

A

May be retained but must be disclosed to the seller.

84
Q

are discount points or points allowed in VA loans?

A

Yes, when refinancing.

85
Q

The donation of private land for public use is called:

A

Dedication

86
Q

it is a document signed by a lender stating the outstanding amount on a mortgage loan.

A

A reduction certificate.

usually used in “subject to”

87
Q

it allows people 62 years of age or older who have considerable equity in their homes to borrow money against that equity. No payments are due until the property is sold or the borrower defaults, moves, or dies.

A

Reverse-mortgage

88
Q

The position of a building on its site in relationship to its surroundings is normally referred to as its:

A

Orientation

89
Q

Which of these BEST describes the capitalization rate

A

Rate of return a property earns as an investment

90
Q

What is the difference between MIP and PMI?

A

MIP (mortgage insurance premium) is charged on FHA loans; PMI (private mortgage insurance) applies to some conventional mortgages.

91
Q

Which of the following is created when possession and title do not occur at the same time?

A

An Interim Occupancy Agreement allows for a buyer to take possession of a property prior to the close of escrow.

92
Q

The monthly payment on a mortgage loan is, by statute, considered late when received by the lender:

A

More than 10 days after the due date

93
Q

A type of mortgage where a seller extends credit to the buyer in order to complete the transaction:

A

Purchase money mortgage

94
Q

A normal size section in the Government Rectangular Survey System contains:

A

1 square mile.

95
Q

it usually says that all original claims on a debt must be paid before any new ones. in a second or third mortgage gives the first mortgage priority. This means that if the house is sold or foreclosed upon, the debt owed under the primary mortgage gets paid off first.

A

A subordination clause

96
Q

The primary survey line running and west in the rectangular survey is called

A

Baseline

97
Q

A board-foot is:

A

144 cubic inches.

CE SHOP - MAIN POINTS (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions