Progress Exam 1 Flashcards
the major intent of zoning regulations is to
ensure the health, safety and welfare of the community
Company built a hangar for a helicopter and it was kept on the owner’s property, but the owner did not pay for the hangar so the company filed a mechanic’s lien on the helicopter. Was the company justified in doing this?
no, because a mechanic’s lien can only be placed on the improvement
The tax rate in a county is 35 mills. How much is this for every $1,000 of assessed value?
1 mill = $.0001
$1 for every $1,000
35 mills = $35
The system established in 1785 by the US government, which describes land with principal meridians and base lines is called
rectangular survey system
Real Estate Tower has retail space, office space, and residential space. What type of development is it?
mixed-use
When a listing on a residential property is signed, what type of agency relationship is usually created?
special agency
if a borrower must pay $6,000 for points on a $150,000 loan, how many points is the lender charging for this loan?
$6,000 / $150,000 = .04 = 4 points
The seller under a land contract is AKA
vendor
A farmer is selling 2 parcels of land - 1 is 1 SQ mile and the other is 5 acres. The sale price is $2,100/acre. What is the selling price of the property?
1 SQ mile = 640 acres
640 + 5 = 645 acres
645 acres x $2,100 = $1,345,500
What is the principal federal statue that covers competition and is one of the most important pieces of antitrust legislation?
Sherman Antitrust Act of 1890
A trust deed gives the lender a right to request that the trustee perform certain tasks in order to fulfill the terms of the trust. The trustee may take action in those circumstances because they hold
naked title
Sydney manages an office building with leases of $60,000/year and her management agreement is for 7 years: year 1 at 7%, years 2 and 3 at 5% and 3% for the remaining years. What will be her total management fee?
year 1 = $60,000 x 7% = $4,200
years 2 and 3 = $60,000 x 5% = $3,000 x 2 years = $6,000
years 4-7 = $60,000 x 3% = $1,800 x 4 years = $7,200
$4,200 + $6,000 + $7,200 = $17,400
loan company was referring loan applicants to a particular insurance company, which in return paid the loan company a referral fee. This is
illegal, since the real estate settlement procedures act prohibits kickbacks
What would MOST likely be enforced by the forced sale of a property?
judgement
a point, line, or surface from which elevations are measured is known as the
datum
a 3-year straight note was obtained at 10%/year. Interest paid the first 2 years was $42,000. The loan on the house was 75% of the value. What was the total value of the property?
Year 1 = $21,000
Year 2 = $21,000
at 10% = $210,000 principal balance
$210,000 / 75% = $280,000 total value
Current value of a property is $40,000 and it is assessed at 40% of its current value, with an equalization factor of 1.5 applied to the assessed value. If the tax rate is $4 per $100 of assessed, what is the amount of tax due on the property?
$40,000 x .40 = $16,000
$16,000 x 1.5 = $24,000
$24,000 / 100 = 240
240 x 4 =$960
A person who dies without leaving a will is known as having died
intestate
If a mortgage loan is 80% of the appraised value of a house and the interest rate of 8% amounts to $460 for the 1st month, then what is the appraised value of the home?
$460 x 12 months = $5,520 year
$5,520 / 8% = $69,000 loan
$69,000 / 80% = $86,250 value
an owner of a 12-unit apartment lived in one of the apartments. The owner refused to rent to a person because of their national origin. Based on Federal Fair Housing Laws, foes the prospective tenant have a valid complaint?
Yes because it was a 12-unit apartment building
a lending institution will allow its borrowers to spend 28% of their income for housing expenses. What will be the max monthly payment allowed for a family with an annual income of $57,000 and no other debt?
$57,000 / 12 months = $4,750 monthly
$4,750 x 28% = $1,330
a buyer is applying for an FHA mortgage on a house priced at $108,000 and the max LTV ratio is 97.75. What is the min down payment?
$108,000 x 97.75% = $105,570
$108,000 - $105,750 = $2,430
Broker has a listing agreement with a seller. One of the broker’s salespeople commits a license law violation while interacting with the seller. The broker
could be responsible due to vicarious liability
a straight note for $13,400 with 8% annual interest. If the borrower actually paid $3,754 in interest, how many months did they take to pay it off?
$13,400 x 8% = $1,072 per year or $89.33 per month
$3,752 / 89.33 = 42 months
Property owner does not like how much they pay in property taxes. What can they object to and have a change of winning?
the assessed value of the property
What is the cap rate on a building that is worth $430,000 and rents for $1,500 per month?
$1,500 x 12 months = $18,000 annually
$18,000 / $430,000 = 4.19%
A section is
one square mile
Kate secures a loan with a 75% LTV ratio. The interest rate was 7.125% and the term was 30 years. The first month’s interest payment was $477.82. What was the appraised value of the property?
$477.82 x 12 months = $5,733.84 annually
$5,733.84 / 7.125% = $80,475
$80,475 / 75% = $107,300
Broker represents a party in a transaction where there is a dispute regarding escrow money. What should the broker do?
hold the money until both parties (or lawyers) provide a written release
If a house was sold for $40,000 and the buyer obtained a FHA-insured mortgage loan for $38,500 how much money would the buyer pay in discount points if the lender charged 4 points?
4 points = 4%
$38,500 x 4% = $1,540
Redlining deals with the conduct of
lending institutions
To have an outstanding debt satisfied through the sale of a debtor’s property, what legal element may be required?
writ of execution
Property owner which an easement runs in favor of another parcel of real estate is known as
servient tenement
brokerage was paid a commission of 6% of the first $120,000 of the sale price and 4% of everything $120,000+. What would be the sale price if the total commission was $9,000?
$120,000 x 6% = $7,200
$9,000 - $7,200 = $1,800
$1,800 / 4% = $45,000
$120,000 + $45,000 = $165,000
earnest money is provided when?
the offer to purchase real estate is made
a lease that goes from month to month is known as
an estate from period to period
a property was assessed at 25% of value with a tax rate of $12 per hundred. If the taxes totaled $11,400 what was the value?
$11,400 / $12 = $950
$950 x $100 = $95,000
$95,000 = 25% of the value
$95,000 / 25% = $380,000
an action taken by a creditor in which the court simply retains custody of the priority while a lawsuit is being decided is known as
writ of attachment
house sold for $350,000 and the buyer made a 20% down payment. Monthly interest on the loan was $1,400. What was the interest rate on the loan?
20% down = $280,000 mortgage
$1,400 x 12 months = $16,800 annual interest
$16,800 / $280,000 = 0.06 = 6%
typically a listing broker is usually considered to be
a fiduciary (agent) of the seller
Buyer negotiated for a $30,000 loan with $200 monthly payments plus 9% interest. What is the monthly interest in the 1st month?
$300,000 x 9% = $2,700
$2,700 / 12 mo = $225 per month
Property is valued at $35,000 and is assessed at 40% of its value, mill levy is 8.3%. What is the annual tax on the property?
$35,000 x 40% = $14,000
$14,000 x 8.3% = $1,162
a portion of a township in the rectangular survey system, which is a square with mile-long sides is called a
section
Condo sold for $85,000 and is assessed at 35% of value. The tax rate is $2,70 per $100, if it increases $.35 per $100 of value, what is the new tax?
$85,000 x 35% = $29,750
$29,750 / 100 = $297.50
$297.50 x $3.05 ($2.70 + .35) = $907.38
claim or interest revealed by a title search is called a
cloud on title
