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Real Estate > Prep Class Questions > Flashcards

Prep Class Questions Flashcards

1
Q

By judging and article of real estate it becomes a

A

fixture

items in a grey area can be real or personal property depeding on circumstance - IRMA
fixture disputes - go to court

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2
Q

John and Stan buy a parcel of land together and subdivide it in to building lots. They hire Joan to sell the parcels and pay her a salary of $100 + a 3% commission.

A

Joan is not a licensee - Joan would have to become registered as a sales associate to make this legal. Joan can receive a bonus as long as its not tied to any transactions

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3
Q

To whom is a real estate associate primarily responsible

A

Employer

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4
Q

Tests used by the courts to determine if an article is real or personal property include

A

IRMA - Intent, Relationship of the party, Method of annexation, and Adaptation of the article

Screwed or glued

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5
Q

A Tampa broker occasionally receives referrals from a friend in Chicago, the broker does not pay a commission or referral but does reimburse his friend for travel expenses incurred. What best applies …..

A

The broker and friend are in violation of license law. You can not pay anything to anybody in connection with a real estate transaction that does not have a valid real estate license somewhere.

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6
Q

How long long may a licensee remain in an involuntary inactive status?

A

2 years

Only way to get involuntary inactive is failure to renew

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7
Q

Membership on the commission is

A

appointed by the governor and confirmed by the senate

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8
Q

An applicant has been notified of passing the state exam for sales associate. How do they issue your license

A

Must complete and RE-10 and fax it to the DBPR

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9
Q

Which name does not appear on your license ?

A

the chairpersons name

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10
Q

Personal property would not include

A

plumbing fixtures

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11
Q

Al, Joe and Alice all licensed real estate brokers, form a real estate brokerage partnership. Al has his license revoked for fraudulent activity in a business transaction unrelated to real-estate . What is the status of the partnership?

A

The partnership registration is unaffected for 14 days

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12
Q

A real estate brokerage partnership has three actively licensed brokers, Sam, Sue and Charlie. If Charlie fails to renew his license at expiration….

A

Charlie’s license will be placed on involuntary inactive- it has no affect on the partnership for 14 days.

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13
Q

Real Estate Licenses expire on

A

the date indicated on the license

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14
Q

What is the the status of a license while your serving active military duty?

A

in good standing during service and for 6mo after tour of duty ends

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15
Q

Non-licensed sales associate is in the process of changing employers. when will his request for reissue become effective?

A

When it is received at the DBPR

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16
Q

A broker while attending a closing discovers his license had expired the previous day. the partner responsible for the brokers commission should….

A

Pay the broker as agreed

we earn our right to commission based on performance.

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17
Q

How is the chairperson of FREC determined?

A

selected annually by members of the comission

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18
Q

Personal property includes….

A

Refrigerators

Real or personal
fence real property…. permanently attached to the property

lease - any thing that transfers due rights is real property

landscaping - real anything growing is real property

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19
Q

study tip

A

always check the longest answer
aways guess c
if a word in the question appears in the answer it is usually the right answer.

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20
Q

walter was a licensed real estate associate employed by Swift realty Inc, a registered brokerage corp. Walter recently passed his brokers exam and is continuing to work for Swift as a broker-associate. New comer realty has asked walter to join the firm as an officer. If walter joins new comer realty and maintain his position at Swift realty, he….

A

will be in violation of the law.

because you can never have more than one status.

if he became an officer of swift corp as well then he could be a broker for both organizations by applying for multiple licenses.

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21
Q

If an applicant files an incomplete application with DBPR……

A

the app will be denied

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22
Q

If the only active broker in a brokerage partnership or brokerage corporation has his or her license revoked sales associates licensed with the firm

A

will become inactive status

…after 14 days. if broker is replaced with in 14 days bus will continue as normal

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23
Q

The real estate education foundation pays for its programs

A

by interest received on a $3M transfer that they made from the real-estate recovery fund

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24
Q

A real estate sales associate may not be employed by

A

a home owner

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25
Q

A license expired March 31st. The licensee applied for renewal April 31st. When would the renewal become effective?

A

when you send in the renewal application with the proper fee.

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26
Q

A sales associates license expired September 30th. what was the status of the license october 1st

A

It is involuntary inactive

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27
Q

if a license is lost or destroyed a licensee is not required to

A

you don’t have to notify your employer

Do need to receive a duplicate
if you find the one that was lost you return the original and submit an affidavit explaining how you lost it.
only reason you have it is to serve as prima face evidence

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28
Q

The FREC has the power and authority to compel the production of records and information from

A

Applicants and licensees

FREC only has power of applicants and licensees

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29
Q

DBPR power

A

over everyone

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30
Q

how many days do you have to notify the DBPR if you change your residential address

A

10 days

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31
Q

A property owner has had a new roof installed on his house but he hasn’t paid the roofer. so the roofer records a mechanics lean. The sales associate is aware of the lean but didn’t mention it because it might interfere with the sale …….

A

by law you must disclose any defects you are aware of before you receive a deposit or allow your client to sign an offer.

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32
Q

Broker Al is an agent for seller bill. if buyer charles offers $5K less than the list price but says he’d go higher if necessary. Broker al….

A

must present the offer and indicate the buyers willingness to go higher

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33
Q

Who may legally perform a service of real estate for compensation with out being license

A

a person appointed by the court

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34
Q

Three brokers form a partnership with equal undivided interest to buy develop and sell real estate. They invited a sales associate to become an equal partner in the firm. the partnership realized profits of $60k on the venture….

A

must split the profit equally according to the pro rata share in the business - they would each get 25%

they are doing it for themselves … no licencure issues

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35
Q

If the only actively licensed broker in a firm withdrawals, is removed or dies, how long do you have to fill the vacancy?

A

14 days

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36
Q

Riprarian rights are rights concerning

A

Flowing water (River)

Litoral rights - lake or ocean

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37
Q

Sales associate may not be paid a bonus by

A

a seller

can only be compensated by our employer

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38
Q

When a broker allows a sales associate to deal directly with the principal the….

A

sales associate has the same fiduciary duties as the broker

Sub agent to the brokers principal

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39
Q

A tree growing on a parcel of land may become personal property by…

A

Severance

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40
Q

an appraiser appointed by the county to perform ad valorem tax assessments would need what type of license

A

none

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41
Q

if four individuals wish to form a partnership to sell real estate for others, all four will be providing real estate services which applies..

A

all four must be active to perform services and the business must be registered with FREC

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42
Q

bus structures questions —

A

over 29 questions

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43
Q

Investigation of complaints is an exercise of what power

A

FREC

Publish Investigate E

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44
Q

Three people form a partnership to sell property for others

A

at least one must be an actively licensed broker

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45
Q

Sally andy mary are registered sales associates with broker charlie. sallie obtains a contract for one of mary’s listings . since mary receives a larger commission than sally they agree that mary will receive the entire commission and then split with sally. sally and mary

A

have violated their fiduciary duties to charlie and can be disciplined by the commission

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46
Q

a tree growing on a parcel of land would be included in a sale

A

unless the parties agree otherwise

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47
Q

what is the legal form of a business known as acme moving and storage company

A

corporation

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48
Q

a broker is contacted with a property owner to perform certain real estate services specified . the owner and broker agree that the broker is not an agent of the seller and will have no fiduciary duties to the owner. should the broker agree to provide limited representation, the broker is….

A

a transaction broker

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49
Q

FREC was created to

A

regulate licensees and applicants

enforce and administer the law

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50
Q

Chapter 475 created to

A

(law) protect the public

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51
Q

a brokers customer is the

A

customer

agent relationships = principal

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52
Q

A broker operating as a transaction broker has

A

limited responsibility to each party

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53
Q

Mary is an inactive broker and VP of bayside realty AMY the only actively licensed broker is out of town. What services may mary not perform while amy is out of town

A

can’t assist or perform any duties of real estate

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54
Q

which of the following relationships is not adversarial

A

fiduciary

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55
Q

Which of the following is not required on the brokers sign

A

the names of their associates

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56
Q

Managers of a condominium coop project are allowed to lease units within the complex for

A

a salary as long as the leases do not exceed 1 year

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57
Q

an active broker must

A

open and maintain an office

otherwise they are a broker associate

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58
Q

While the broker is out of town a sales associate receives an offer on a listed property. another offer is received after the broker returns. if the second offer is higher than the first offer, the sales associate should

A

submit any and all offers

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59
Q

the brokers principal is

A

who ever employes them

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60
Q

George hired Joan to perform onsite leasing services in a 200 unit apartment complex that he owns. Joan….

A

may perform services only if she is paid a salary.

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61
Q

A sales associate registered with a brokerage firm may be

A

the only one that owns that stock

but may never be an officer or director of that corp

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62
Q

which appraisal assignments is a real estate broker not allowed to accept

A

valuing a waterfront home for a federally regulated lender in connection with a request for a loan

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63
Q

what is the status of a license when an associate has not completed the necessary post licensing education?

A

Void

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64
Q

The DBPR has denied an individuals application for a real estate license.

A

The applicant is allowed 21 days in which to request a hearing

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65
Q

broker al obtains a listing on owner bills property for $125K subject to owner financing with 20% down payment. Broker Al obtained an offer at the full list price contingent on the seller taking back and 80% mortgage. while thinking it over broker charles presented an all cash offer at the full listing price . which broker is entitled to a commission.

A

Broker A… the one that had the listing

listing secures your right to commission

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66
Q

an owner authorized broker al and broker bill to show his property to buyers. broker bill obtained an offer that was accepted. who is entitled to a commission?

A

broker bill - this is an open listing

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67
Q

a contract for sale specifies the roof is to be inspected by a roofer prior to closing. the broker authorizes a sales associate to contact a roofer and have them inspect it . at closing it was discovered the inspection had not been performed. Who is ultimately responsible ?

A

Broker

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68
Q

Many brokers have become involved in property management. the primary reason for the growth in the segment is …..

A

an increase in absentee ownership

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69
Q

Three persons form a business and receive charter from the secretary of state. what type of business have they formed

A

Corp for profit

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70
Q

A broker from clearwater and a broker from tampa agree to share the commission and expense of marketing a property. this arrangement can best be described as

A

joint venture

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71
Q

Sam and sarah are both licensed real estate brokers who agree to corporate in the sale of property for a successful builder. they employ sales associate debby who will receive 4% on all sales in which she participates. sam and sara will each pay half of debby’s commission and share equally any remaining profit. Why type of arrangement is this….

A

This is an illegal arrangement

Debby can only have one employer

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72
Q

a joint venture between two brokers is

A

similar to a partnership in terms of liability

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73
Q

which business has a life time it can be in perputity

A

a corporation (look up charters)

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74
Q

which of the following can not register with the DBPR to perform real estate services

A

Business trust –Small commissions give little joy

Sole prop| Corp for profit, not for profit| General partner| LLP, LLC| Joint venture

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75
Q

To acquire limited ownership in a limited partnership a limited partner must contribute

A

cash real estate or personal property

can’t offer to manage

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76
Q

to create a Limited Partnership a certificate must be filed with …

A

the secretary of state

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77
Q

corporate charter does not include

A

the name of the stock holders

charter must have
name
lifetime
bus activities

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78
Q

a joint tennancy

A

must have Posession Interest Time and Title

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79
Q

Sal has a broker friend ed. ed introduces sal to another broker. sal indicates that he would like to sell his home. Carl buys sals home…

A

no one is in titled to a comission

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80
Q

what is the renewal period for a branch office license

A

2 years

initial issue 18-24 mo

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81
Q

an officer or director of a real estate brokerage corp must have an active brokers license when

A

inteviewing a prospective sales associate

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82
Q

Broker escrow

A

it has to be reconciled every month and prompt action must be made to correct any mistakes

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83
Q

group license

A

only available to sales and broker associates needing to perform real estate services for multiple developments, (owned by same developer) when not employed by a builder

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84
Q

when are real estate exam questions and answers made public

A

never

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85
Q

general partnerships registered with DBPR to provide real estate services must

A

the partnership is not required to registered with the secretary of state (JUGS)

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86
Q

an inactive broker in a brokerage partnership has been performing services for compensation. What affect will this have on the partnership…

A

The registration of the partnership is in jeopardy and may be revoked

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87
Q

An investor gave John POA to invest for him. John is an attorney at law. If John sold one of the investment properties and kept 4% commission …..

A

john is subject to prosecution for accepting composition with out a valid license

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88
Q

if an applicant is discovered cheating on the state exam

A

the application will be denied

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89
Q

in a real estate brokerage corp..

A

one officer must be an actively licensed broker

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90
Q

john andy ted judy are officers in acme realty inc. All four are actively licensed brokers. Andy has been found guilty of defrauding a member of the public on a real estate transaction. who may FREC discipline as a result?

A

they may impose discipline as they deem appropriate

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91
Q

title to property purchase for a corporations sole (church) is held in the name of ….

A

the sole title holder

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92
Q

upon the death of a sole title holder the title of property held by a corporation sole passes to

A

their successor in office

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93
Q

which business formation most closely resembles a corporation

A

a business trust

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94
Q

which statement is correct regarding a business trust

A

corp faces dual taxation

bus trust - money goes straight to the stock holders

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95
Q

which of the following is not real property

A

cemetery lots

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96
Q

which powers of the commission may be delegated

A

Executive

q- quarem

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97
Q

prima face evidence is

A

has reputable presumptions

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98
Q

a broker failed to complete the required post licensing education prior to the expiration date. what is the status of their license?

A

void

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99
Q

a broker associate may perform services of real estate

A

under the supervision of another broker

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100
Q

broker john is the owner and broker of able realty inc a registered licensed brokerage corp. High sales realty inc is down the street. John would like to purchase all the stock and become president of high sales dealt. to accomplish this, john must

A

apply for multiple licenses

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101
Q

brokers mike and tony are partners in paremount realty, a registered real estate brokerage. mike and tony have dissolved their partnership and disagree who is entitled to use the name ‘paramount realty’ until the dispute is settled…

A

registration of the partnership and all licensees under the partnership are inactive

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102
Q

registration of a branch office is necessary

A

based on the activities conducted there

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103
Q

an instigator of the department has discovered that a party could damage the public while involved in a real estate transaction. the department may…

A

issue a cease and desist order

can the department suspend your license – no, only FREC can

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104
Q

a license issued by the department is

A

evidence of a license

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105
Q

a broker and sales associate had a serious disagreement. The sales associate moves into another office and took original documents and files when leaving. The sales associate may

A

be charged with larceny (because they were originals)

copies are breach of trust

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106
Q

licensee has been subpoenaed to appear in a formal hearing to answer charges regarding fraudulent activity. how may the defendant obtain testimony from a witness who refuses to appear?

A

request the administrative law judge issue a subpoena

107
Q

which type of deposit may a sales associate accept with out the knowledge of the broker

A

cash

108
Q

Broker Alice notifies the closing agent that she will not be able to attend the closing and request the commission be divided and paid to her and sales associate jane by separate checks according to their employment agreement. Which applies

A

the closing agent should follow her instructions. this is perfectly alright.

109
Q

broker alice sold a client a home knowing it was badly in need of repairs. the defect were not disclosed to the customer. the customer fixed up the house and sold it for a large profit…

A

the broker is in violation of the law (failure to disclose)

110
Q

licensee has been issued a final order from FREC revoking their license. Which action can the licensee take if they decide to challenge the decision?

A

they may file an appeal with the district court of appeals and file a stay

111
Q

if a broker listed a home and told the seller that all brokers in the area charge 8% comission ….

A

it is a violation of state (FL anti trust) and federal law (price fixing - sherman clatyon)

112
Q

margie allowed broker to show her home only if she agreed not to show the property to minority customers. the broker should

A

inform margie that she is in violation of the law and refuse the listing.

113
Q

a licensee has been adhjucated insane and committed to a mental hospital. the license will be…

A

revoked

adhjucated is determined by the court and considered permanent

if committed for 7 years … it would only be suspended

114
Q

an investigator for the DBPR has issued a broker a letter of non compliance. the broker ….

A

has 15 days to correct it

115
Q

how many days does a licensee have to file a petition of review after being served a final order from FREC

A

30 days

petition is a technical name for an appeal

116
Q

a licensee found guilty of concealment by a criminal court is

A

guilty

117
Q

a party refuses to produce evidence required in an investigation. if a subpoena is needed to obtain the information the…

A

investigator may request the information from the DBPR

Why wouldn’t they request from an admin law judge - because it’s not far along enough in the process to have and admin law judge

118
Q

which is correct regarding giving testimony in front of an administrative law judge at a formal hearing?

A

Hear-say evidence is generally admissible.

In FREC’s hearing process they are allowed to used hear-say evidence.

119
Q

a sales associate relocating to another state

A

not in violation of licensure law

address change- 10 days
return and irrevocable consent to service agreement - 60 days

120
Q

sallie violated 475. it is her first time. what is the max period of suspension

A

10 years

121
Q

an agents obligation to their employer include

A

fiduciary duties (due diligence)

122
Q

a licensee has Insufficient funds to pay a fine associated with a disciplinary action. which would apply?

A

Funds can come from Real estate recovery fund

123
Q

what action can be taken if the DBPR determines that brokers actions constitute an immediate danger to the health and welfare of the public

A

issue a summary suspension

124
Q

if a licensee is temporarily unable to deal safely with the public due to the use of drugs or alcohol. the license will be

A

suspended for period of disability

125
Q

a licensee found guild of fraud in activities other than real estate may…

A

be served with an injunction

126
Q

a broker has been found guilty of bank robbery. this activity

A

is prima face grounds for revocation after a hearing justifies the action.

127
Q

Moral Turpitude

A

a descriptive term of a criminal act
premeditated & moral depravity
assult and battery - not moral turpitude

128
Q

a broker has received an offer accompanied with an escrow check. before the offer can be presented the buyer demands a return of deposit. the broker should …

A

return the check to the buyer

if the offer had been accepted -there is a contract (this becomes an escrow dispute money is held as liquidated damages to the injured party) needs to go to court

129
Q

a subpoena requires a licensee to

A

appear as a witness

130
Q

the DBPR may not

A

issue an injunction prohibiting license law

131
Q

a claim can be requested from the recovery fund when

A

only when a person obtained a judgement by suing the licensee and the licensee doesn’t have enough funds to pay the fines

132
Q

which circumstance would not be enough for a sales associate to be charged with fraudulent conduct

A

a failure to disclose an unknown lean or encumbrance prior to closing

why- we can’t comment to the condition of title only an abstract company or a title company

133
Q

Broker mike wrote a contract for sale with broker theresa. Broker mike could not attend the closing so broker Theresa collected the entire commission. Which applies

A

The only one entitled to the commission is theresa but she would need to honor her MLS agreement by collecting the commission and then disbursing Mikes share.

134
Q

During an IRS audit of a Brokers operating account it was determined that part of a commission paid by a mississippi broker to a FL broker was not reported. Which applies

A

frec probably will not take action if tax return is amended

135
Q

relationship of the parties is relevant when ….

A

relationship of the parties is relevant when appraising properties

136
Q

A broker associate is listing a home in a neighborhood predominately owned by minorities , a customer calls about the home. The broker

A

should ably enquire as with any other

137
Q

Discriminations questions

A

leave out any part that is discriminatory

138
Q

Which qualifies as an exemption of the Civil Rights Act of 1868

A

lodging owned by a private club for the purposes of non commercial occupancy of it members (Sorority House) not discrimination as long as membership is open to everyone

139
Q

Bill is a sales associate for superior construction company, jack the owner and developer has instructed bill not to show properties to minority customers. What should bill do

A

withdrawal and register with another customer … can’t just ignore the illegal action or you are found guilty by decent decree (you didn’t protect yourself by leaving)

140
Q

A minority prospect offers to pay cash for the full property price. the owner finds out and refuses to sell the property to a minority. What action should the broker NOT take ..

A

don’t sue the buyer,

When given an illegal minority instruction, advise the seller that action could be taken due to discrimination laws and you have to disclose to the seller that their civil rights may have been violated. If you report this, broker may sue the seller for comission

141
Q

Acts prohibited by the civil rights act of 68 do not include

A

limiting the showing of property to specific hours

142
Q

A broker has an office and a branch office a sales associate who works only in the branch office should be licensed from …

A

doesn’t matter, as long as it’s the same broker

143
Q

Information received by a broker during a confidential relationship…..

A

may be used by the broker so long as it causes no harm to the principal

144
Q

A policy and procedures manual is not a legal requirement but a

A

valuable tool in maintaining office (helps eliminate confusion in the office)

145
Q

what type advertising is being used when a broker advertises a specific listed property for sale

A

specific advertising

146
Q

what type advertising are you using if the object were to identify the name in the market

A

name advertising

147
Q

What is the purpose of institutional advertising

A

to create an image within the community

148
Q

a to Z a licensed realestate brokerage company has advertised apartments for rent under property management. mr & mrs adams responded to the add and wishes to lease one of the units. they ask joe the sales associate to show them the property and prepare a lease for them to sign. Joe…

A

need to have an attorney to prepare the lease.

we can only fill in the FL Supreme court approved residential lease (we can’t add or remove anything) can only fill it out. Any other lease must be prepared by an attorney

149
Q

a contract for the sale of a parcel of land of which the broker is assured a large commission is executed. the broker may record the contract in the public records ….

A

need sellers permission & notarized to record in public record

150
Q

probable cause panel

A

NOT members are not appointed by the gov

they are appointed by the chairperson of FREC

151
Q

an agency receives a copy of the original order following a formal hearing

A

given to defendant and frec’s final order panel

152
Q

denial of a fl real-estate license may be justified under which condidition

A

condition of a fellony

153
Q

when may a sales associate accept an ernest money deposit with out the knowledge/ permission of their broker

A

Never

for anything you do as an employee of a broker/ owner developer you must have their permission/ implied permission

154
Q

a licensee was arrested for passing counterfeit currency and is being tried in a criminal court. which statement is correct

A

FREC may take an action against the licensee regardless of the outcome of the criminal court.

155
Q

a sales associates license may be suspended or revoked under 475 for what

A

suing a property owner for a commission earned ( can only sue employer) - illegal suit

156
Q

payments from the recovery fund are authorized by

A

FREC authorizes the check

treasurer actually writes the check

157
Q

sales associate usually has the authority to

A

accept (collect)the initial down payment

158
Q

an investor has purchased two apartment buildings from a broker and asked the broker to assume all responsibility for managing his properties. Why type of agency relationship does this describe

A

General (Correct) - no time frame/ performance of an act that would terminate the relationship

special has a specific ending date or ends with the completion of an act

159
Q

a real estate sales associate is a

A

sub agent of the brokers principal

160
Q

with respect to an interest bearing escrow account…

A

the interest must be transferred to a non interest bearing account before distributed to the buyer or seller. (can’t pay directly out of escrow)

161
Q

fl statute 475 mandates the automatic suspension of a license when

A

payments made from the recovery fund on behalf of the licensee

162
Q

What is the amount charged annually for the recovery fund when the balance of the fund is under 500k

A

$1.5

when it reaches 1M fREC can’t charge us

can only collect when its under 500K

163
Q

a broker can not have an escrow account

A

in an insurance company - not a depository

164
Q

the DBPR has conducted an investigation and determined that an individuals activity is an immediate danger to the public. What action may they NOT take

A

they can’t impose a summary suspension

why? - can only issue a summary suspension prior to an investigation (it’s too late during the investigation)

165
Q

nancy’s lease will expire in 25 days, she is considering moving. Bob the broker has advertised the apartments for rent for 400/ mo including utilities. nancy respond to the add signed the lease and paid bob his 200 fee. Nancy decided to renew her lease rather then move and contacted bob to request a refund. how much is bob obligated to refund Nancy

A

$0 …. have to request with in 30 days

166
Q

a buyer has considered making on a listed property an asked the broker

A

should advise the broker to consult a title professional or seek the advice of a competent attorney.

167
Q

they law that requires the APR of a loan to be disclosed is

A

regulation z as part of consumer credit protection act

168
Q

a seller and a buyer both paid a broker in a transaction. which is true …

A

its find as long as both approved the dual commission

169
Q

when a broker represents both parties as an agent in a real estate transaction. he or she….

A

is in violation of 475 for acting as a dual agent

170
Q

broker al receives an offer on a listed property at 10AM . another customer had seen a property with another agent earlier that day and called to state an offer would be made by 2pm that same day . broker al should

A

submit the 1st offer and advise the owner of the possibility of another offer

171
Q

a sales associate may be subject to fraud

A

even if it was accidental

intent, restitution, and damage are not a defense for Fraud

172
Q

the mortgage market is

A

anywhere money is bought and sold

173
Q

which advertisement would trigger complaints with the consumer credit cost disclosure act

A

the consumer credit cost disclosure act says that for any consumer loan that includes a monthly payment, an interest rate, dollar amount, terms . you must disclose the full terms of the loan

174
Q

which source of mortgage loans is subject to the least amount of government regulation

A

individual

175
Q

which is incorrect with regards to telephone solitation

A

hours

176
Q

when title of a property of transferred to a 3rd party with the mortgage. the financing used is

A

trust deed

always trust deed when referring to financing in 3rd party

no wrap around deed

177
Q

wrap around mortgage

A

new second mortgage with a first mortgage (new encmberance added to an existing encumbrance)

178
Q

if the fed sold securities in the existing market

A

they create a tight money market

179
Q

which is true regarding an FHA loan

A

FHA limits the amount of the loan

FHA insures loans, minimum down payment of 3%

180
Q

10 units or an annual budget of 100K + to run the association you have to

A

hire a CAM manager. Can’t be self managed.

181
Q

the credit controlling device used by the fed that is the most potent and effective is

A

open market

182
Q

leverage

A

to increase your buying power by borrowing money

183
Q

when a sale lease back is used

A

the lessee has achieved 100% financing

184
Q

the interest rate discount and other loan charges are disclosed in …

A

the promissory note

185
Q

a wrap around mortgage

A

incorporates the balance of a initial mortgage plus a remaining sum

186
Q

what type of loans do commercial banks prefer

A

short

187
Q

which action involves usury

A

charging an illegal interest rate

188
Q

if loan payments consist of interest only and the entire principal of the loan is due on maturity. the loan is

A

a term loan

189
Q

which mortgage results in negative amortization

A

graduated payment

190
Q

which agent is gov owned and operates in secondary market to make high risk, low yield loans for low income households possible

A

National Mortgage Association (government)

191
Q

increase interest to

A

increase profit

191
Q

what type of loan was fannie mae originally created to buy

A

FHA only

Today they buy from anybody (FHA, VA, or original)

191
Q

the role of the gov national mortgage association is to

A

provide special assistance to residential borrowers

192
Q

all the following are common types of mortgage

A

amortization

193
Q

mortgage backed securities are guaranteed by

A

Ginne Mae

194
Q

that portion of the mortgage market where loans are bought and sold is

A

secondary market

195
Q

what is west of T24S R17E

A

T24S R16E

196
Q

A vertical strip of land originating at the meridian and extending west along the entire length of the meridian is

A

Range 1W

197
Q

cher would like to purchase a condo but has limited money for a down payment. a friend told her she would probably qualify for an FHA. What is an FHA

A

234- FHA condo loan

203B- residential single family insured loan

198
Q

3 days

A

Rescission period, resale condo (from receipt of docs)

199
Q

7 days

A

Notice to terminate week to week tenancy at will

200
Q

10 Days

A

recession period for a time share developer sale

201
Q

14 Days

A

Replace only active broker in a brokerage corporations

Notice to the defendant of a formal hearing

202
Q

15 Days

A

time to file exemptions to the recommended order
notice to terminate month to month tenancy at will
recession period for developer sale of a new condo
time to notify FREC about escrow dispute
Probably cause, request for additional information

203
Q

20 days

A

time to file an answer to a formal complaint

204
Q

30 days

A

must resolve escrow dispute
probable cause panel must find cause
notice to applicant to correct an error or omission on an application
refund fee paid for rental inform list
appeal of the final order to the District Court of Appeals

205
Q

25 Days

A

time to protest annual tax assessment

206
Q

90 Days

A

Application approval
hearing officers recommend order
time to file mechanics lien from completion of work
Any Mediation must be complete

207
Q

1 year

A

Action to foreclose on mechanics lien

208
Q

Loan to value

A

loan amount / Value

209
Q

Operating expense ratio

A

operating expenses/ effective gross income

210
Q

Debt Convergence ration

A

Net operating income/ Annual Debt Service

211
Q

Property Value

A

Net Operating Income/ Overall Cap Rate

212
Q

Equity Dividend Rate

A

Cash Throwoff/ Equity

213
Q

Pay Back Period

A

Equity / Cash Throwoff

214
Q

Cash Break Even Ratio

A

Operating Expenses- Reserves + Dept Service / Potential Gross income

215
Q

Margin of Safety

A

1- Cash Break Even Ratio

216
Q

Miles to feet

A

1 Mi = 5280 Ft

217
Q

Acre to Sq Ft

A

1 Acre= 43560 sqft (208.71 ft x 208.71 ft)

218
Q

Section to Acres

A

1 section = 640 Acres

219
Q

Section to township

A

36 sections = 1 township

220
Q

township to miles

A

1 township = 6 sq miles

221
Q

2.5 acres =

A

330 ft x 330 ft

222
Q

5 acres =

A

330 ft x 660 ft

223
Q

10 acres =

A

660ft x 660 ft

224
Q

20 acres =

A

660 ft x 1320 ft `

225
Q

1 section =

A

1 mile square

226
Q

Services of Real Estate

A

A BAR SALE

Appraising

Buying
Auctioning
Renting

Selling
Advertising rentals
Leasing
Exchanging

227
Q

Fiduciary duties of an agent

A

CAR SOLD

Confidentiality
Accounting for funds
Reasonable care

Skill
Obedience
Loyalty
Diligence

228
Q

Tests to Distinguish Personal Property

A

IRMA

Intent
Relationship
Method of Annexation
Adaptation

229
Q

Bundle of legal Rights

A

DUE

Disposition
Use
Exclusion

230
Q

Unities required to create a joint tenancy

A

PITT

Possession
Interest
Time
Title

231
Q

Methods of obtaining title to real property

A

WADED

Wil
Adverse Possession
Deed
Estoppel
Descent and distribution
232
Q

Government Limitations on property rights

A

PETE

Police Power
Eminent domain
Taxation
Escheat

233
Q

Elements of an enforceable contract

A

COLIC

Competent parties
Offer and acceptance
Legality of the subject
In writing
Consideration
234
Q

Ways to Terminate a contract

A

BRRLAP

Breach
Renunciation
Revocation
Lapse of time
Abandonment
Performance
235
Q

Characteristics of value

A

DUST

Demand
Utility
Scarcity
Transferability

236
Q

Agents of Production

A

CELL

Capital
Entrepreneurial ability
Land
Labor

237
Q

Executive duties of FREC

A

Executives eat PIE

Publication
Investigation
Education

238
Q

Executive powers of FREC

A

Set Policy

239
Q

Void

A

License is null and void due to

1) failure to complete post license edu or expired more than 2 yrs
2) revoked by FREC
3) canceled by FREC by request of licensee

240
Q

Ineffective license

A

Has license but can’t use it

241
Q

Voluntary inactive

A

Licensee has requested inactive status

242
Q

Involuntary inactive

A

Status when license is not renewed
Or
When broker of a brokerage becomes involuntary inactive

243
Q

Fiduciary relationships

A

Sales associate is a subagent to brokers principal

244
Q

Fee simple estate

A

Indefinite duration; inheritable estate

245
Q

Life estate

A

Ownership for life of a person who owns the estate

246
Q

Habendum clause

A

Identifies estate in deed ( to have and to hold)

247
Q

Remainderman

A

Receives estate upon death of life tenant

248
Q

Estate for years

A

Definite period of time

249
Q

Tenancy at will

A

May be terminated at will of either party

250
Q

Tenancy at sufferance

A

Tenant remains in possession after termination of estate for years; no notice required to terminate

251
Q

Tenancy in common

A

2 or more co-owners own undivided interest; no right of survivorship

252
Q

Joint tenancy

A

2 or more co-owners own undivided interest; with right if survivorship

Must have PITT

253
Q

Tenancy of the entireties

A

Exclusively for husband and wife

254
Q

Government limitations

A

PETE- Eminent domain, police power, taxation, escheat

255
Q

Eminent domain

A

Gov takes title to privately owned land

Must have - publics use, due process, just compensation

256
Q

Police power

A

Gov restricts owners use and occupancy of land

Ie zoning codes, building codes& environmental regulations

257
Q

Escheat

A

Title reverts to state; no will, no errors

259
Q

Freddie Mac

A

Provides secondary market for sellers and lender. Developed standardized conventional loan documents.

260
Q

Fannie Mae

A

Primary function is to provide secondary mortgage market.
Obtain funds from private capital markets
Does not borrow from treasury

261
Q

Ginnie Mae

A

Special assistance and management and liquidation functions

Guarantees securities in mortgage pools

263
Q

Ginnie Mae

A

Special assistance and mgmt and liquidation functions; guarantees securities in mortgage pools

263
Q

Freddie Mac

A

Provides secondary market for sellers and lenders - developed standardized conventionalized loan documents

Real Estate (10 decks)

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