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Real Estate PSI > Psiii > Flashcards

Psiii Flashcards

1
Q

How do you get rid of a cloud on a title?\
A) Quitclaim Deed
B) Suit to quiet title

A

Clouds on titles are removed by using the “quitclaim deed”.

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2
Q

A husband and wife buy a house together. When the husband dies, the wife will own the property. This is a…

A

Tenancy by the entirety

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3
Q

Having accepted a purchase offer, the seller is entitled to…

A

The seller is entitled to the earnest money deposit.

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4
Q

What are zoning laws changed through?

A

Court order/Master plans variance.

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5
Q

What is the main purpose of regulation z?

A

To inform the true cost of credit

  • Credit is offered or extended to consumers
  • The offering or extension of credit is done regularly
  • The credit is subject to a finance charge or is payable, pursuant to a written agreement, in more than four installments.
  • The credit is primarily for personal, family, or household purposes.
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6
Q

For a deed to be valid, it must include what?

A

It must include a legal description of the property.
a deed must include a recital of consideration and an identifiable grantee; a deed may contain a recital of exceptions and reservations. Title is considered transferred when the deed is actually signed and acknowledged by the grantor.

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7
Q

A three-day extension is given in what situation?

A

When the mortgage has been changed from fixed to adjusted

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8
Q

If Molly gives Sarah permission to use her driveway, she gave Sarah a…
A) Easement
B) Echeasement
C) License

A

License

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9
Q 
Records must be kept for a minimum of...
A. Four Years
B. Ten Years
C. Five Years
D. Twelve months.
A

C. Five years

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10
Q

What is a lien that does NOT need to be included in the deed?

A

Real estate taxes

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11
Q

“The sales contract does not specifically state that whether the fixture is included or excluded in the sale, the buyer’s agent can assume that it’s…

A

Included in the sale, because of its attachment to the ceiling.

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12
Q

Subordination Clause

A

Mortgage permits a subsequent mortgage (buyer’s loan) to take priority.

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13
Q 
Which of the following is not a fixture?
 A. Chandelier
B. Built-in shelves
C. Heirloom rose bush
D. Cast iron garden bench
A

D. Cast iron bench

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14
Q

Sold “as is” but later found a latent defect. Can the buyer back out? Or Seller correct issue?

A

The seller is not legally responsible for repairs.

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15
Q

In general, option contracts must be…

A

In writing and is seller binding

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16
Q

A low loan-to-value ratio indicates what?

a) Lower equity in the property
b) no change in the property’s equity.
c) Higher equity in the property

A

Higher equity in the property.

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17
Q

Who requires a real estate license?

  1. An attorney selling a property to settle an estate and charging their normal attorney’s fees
  2. A property owner selling their commercial office building.
  3. A mother who receives a referral fee from her licensed son.
  4. A property owner renting out rooms in their home
A

A mother who receives a referral fee from her licensed son.

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18
Q

Independent contractors receive-

A

Negotiated commissions on transactions.

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19
Q

An old mechanic junkyard that is being sold should go through what?

A

Air quality control through EPA environment analysis.

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20
Q

What happens if a buyer makes an offer and the seller accepts but the agent then sets it in his desk drawer?

A

The offer is not considered valid as there is no acknowledgment.

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21
Q

A customer doesn’t want to sign an agency disclosure pamphlet. Do you still show them the property?

A

Yes, but note that they would not sign.

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22
Q

Should an agent disclose to a buyer that a railroad is being built in the near future?

A

Yes, the agent should disclose any facts that may affect the buyer’s decision.

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23
Q

The best method of removal for asbestos is…

A

Encapsulation.

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24
Q

Is it racial discrimination if a private clubhouse denies an African American family access to rent one of their apartments?

A

No, because it is a private business.

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25
Q

The seller leaves for 45 days on vacation and provided limited power of attorney to a broker to sell the property for at least $111,000, cash only. The broker received an all-cash offer for 115,000, the broker can?

A

Accept the offer.

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26
Q

A freestanding custom-built shelf is considered?

A

Personal property

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27
Q

When is a contract terminated?

A

If it is impossible for one or more parties to perform.

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28
Q

After closing, a seller offers you a $500 bonus, what is the best action to take?

A

Direct the seller to give the bonus to your broker.

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29
Q

What is the beneficial owner?

A

The person who is selected by the grantor
- the assets of the trust are to be managed for their benefit
THE SELLER

30
Q

GrantOR vs. GrantEE

A

The GrantOR- The seller or owner. They transfer the rights of a property to the grantee.
The GrantEE- The party who receives the transfer.

31
Q

Licensees are ethically required to keep up on…

A

Matters affecting real estate

32
Q

Family plans to build a 800 square-foot tiny house, the HOA requires that all houses be 1800 square ft. This is?

A

Enforceable as written

33
Q

Estate/Tenancy at will is…

A

The occupation of real estate by a tenant for an indefinite period, terminable by one or both at will.

34
Q

Functions of the RE commission are:

A
  • Setting requirements for licensing brokers and salespersons
  • Setting rules regarding the conduct of licensees
  • Discipling those whose conduct violates the rules and regulations
35
Q

Principal broker

A

Licensed broker that is responsible for the operations conducted by the entire brokerage firm

36
Q

Guaranty Fund

A

Payments may NOT exceed $50,000

37
Q

License Reinstatement

A

Within three years past the expiration date, they must be in good reputation. They must pay all past fees, as well as a $150 reinstatement fee.

38
Q

If you fail to attend a hearing what happens?

A

You are automatically guilty.

39
Q

What is a buyer’s agency agreement?

A

A written contract or oral understanding that creates a relationship between a potential buyer and a broker’s buyer. Essentially, the broker will act as the agent and will represent the interest of the buyer.

40
Q

Regulation Z and recission

A

Regulation Z protects consumers in the mortgage market from unfair practices, involving compensation paid to loan workers.
Recission- allows one to rescind certain credit transactions within three business days, and purchases. Only if induced by fraud, misrepresentation, or a mistake.

41
Q

Open Listing

A

Allows the owner to give a listing to more than one broker at the same time. the owner does NOT owe a commission to anyone except to the broker who actually completes the sale.

42
Q

Exclusive Agency Listing

A

Gives only one broker to sell the property, for a specified time.

43
Q

Exclusive Right-to-sell listing

A

A contract giving the broker the right to collect a commission no matter who sells the property, including the owner, during the term of the listing.

44
Q

A motel is the subject of an appraisal and it is determined that rerouting of a county highway has limited customer access to the motel this is an example of?

A

Economic obsolescence.

45
Q

What is a meeting of the minds?

A

An agreement to the exact terms of a contract by all parties involved.

46
Q

Earnest money should be deposited into a trust account

A

Within a timely manner, according to state laws.

47
Q

A 15-year-old inherits a property, the 15-year-old sells the property, this is?

A

This is voidable

48
Q

What information is included in advertising?

A

The agent’s name. the broker’s name and phone number.

49
Q

As a licensed salesperson, you receive a lead from a friend who is not licensed as a real estate broker, associate broker, or salesperson. You want to split your commission check with your friend:

A

This is a violation of the law.

50
Q

An offer was presented but the seller did not accept the offer, instead, he suggested different terms that would be more acceptable, which of the following is false?
A. This is a rejection of the original offer
B. This is a counteroffer on the original offer
C. This is a negotiation that keeps the original offer alive
D. This kills the original offer, which can no longer be accepted

A

This is a negotiation that keeps the original offer alive

51
Q

A real estate licensee representing a buyer may do all of the following EXCEPT:

A

Disclose the highest price a buyer is willing to pay

52
Q

Which of the following types of deeds provides the purchaser of real estate the greatest protection?

A

General Warranty Deed

53
Q

a condensed history of the documents affecting real property is known as:

A

abstract of title

54
Q

When must a licensee disclose their licensing status?

A

Whenever they themself are selling or purchasing real estate they must disclose that they are licensed to sell. It must be in writing, and typically within the contract itself.

55
Q

What can result in the suspension of your license?

A

Failing to account promptly for any money
held in trust and/or failing to display, on demand of the Commission all records, books, and accounts of
trust money

56
Q 
Failure to renew your license can result in...
A. Fines
B. Recission 
C. Reexamination 
D. Nothing
A

C.

Reexamination

57
Q

Discount points- 1 point = 1% of loan amount.

Q. What is a charge of 3 points on a $120,000 loan?

A

.03 x 120,000 =$3,600

58
Q

What method do appraisers deal with most often?

A

Market Value

59
Q

Characteristics of Radon gas?

A

Odorless, colorless, tasteless, and radioactive gas.

60
Q

Characteristic of Asbestos?

A

Highly friable

61
Q

Definition of Functional Obsolescence

A

Outmoded design in older structures/unacceptable design in newer structures. Separated into curable and incurable categories.

62
Q

Definition of External Obsolescence

A

A form of depreciation caused by factors external to the land itself. Always considered incurable because you cannot move land.

63
Q

Blanket mortgage

A

A loan that covers more than one piece of property.

64
Q

Truth In Lending Act (TiLA)

A

1968, requires lenders to disclose credit terms and conditions when advertising triggers loan terms, so as not to mislead consumers

65
Q

The buyer asks if there are any sex offenders in the neighborhood. The agent’s MOST appropriate response would be to:
A. Go to the state’s website and obtain the information and give it to the buyer.
B. ask the seller and then pass the seller’s information along to the buyer.
C. give the buyer the website address so the buyer can look up that information
D. contact the local police department to obtain the information

A

C.

Direct the buyer to the website address with the proper information so that they can do their own research.

66
Q

In a typical agency relationship between a broker and client, the broker’s commission is determined by

a. state law.
b. the local real estate board.
c. mutual agreement.
d. minimums based on the property type.

A

C. Mutual Agreement

67
Q

Which of the following is not a duty owed to every party in a transaction?

a. Reasonable care and skill
b. Honesty and good faith
c. Confidentiality
d. Agency disclosure

A

C. Confidentiality

An agent only owes confidentiality to their principal.

68
Q

A licensed agent is required to disclose their license status when advertising their own property for sale?

A

YES.

69
Q

Example of the power of eminent domain?

A.

A

Condemnation

70
Q

What kind of listing does need not an expiration date?

A

Open listings do not need expiration dates. (making it okay for a broker to turn down a listing!!!)

71
Q

A provisional broker sells another firm’s listing for $150,000. The commission is 6.5 percent of the sales price. Of this amount, 55 percent goes to the listing broker, and the remaining 45 percent belongs to the cooperating broker. If the provisional broker receives 60 percent of any commission that he generates for the office, he is entitled to receive

a. $2,632.50.
b. $3,217.50.
c. $4,387.50.
d. $5,850.00.

A

A. 2,632.50

72
Q

The main difference between tenancy in common and joint tenancy is: that with tenancy in common when a co-owner dies…

A

His undivided interest passes to his heirs.

Real Estate PSI (1 decks)

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