Quick Notes!

Question 1

Number of cubic feet in a cubic yard

Answer 1

27

Question 2

Number of acres in a section

Answer 2

640

Question 3

Number of linear feet in a mile

Answer 3

5280

Question 4

Square footage of a square or rectangle

Answer 4

length x width

Question 5

Square footage of a triangle

Answer 5

1/2 (base x height)

Question 6

volume or cubic feet

Answer 6

length x width x height

Question 7

Formula for annual taxes

Answer 7

tax rate x assessed value

Question 8

When part of an agreement is changed, or an old agreement is replaced by a new one.

Answer 8

Novation

Question 9

A provision in a mortgage contract that allows the mortgaged real estate to be used as security to borrow additional money.

Answer 9

Open-end clause

Question 10

What is the voluntary relinquishment of rights of ownership or another interest?

Answer 10

Abandonment

Question 11

A unit of measurement for lumber, equaling 144 cubic inches or 12” X 12” X 1”

Answer 11

Board Foot

Question 12

The most detailed of the appraisal reports in which conclusions are supported and explained:

Answer 12

Narrative form appraisal report

Question 13

“Let the buyer beware” is also known as what?

Answer 13

“Caveat emptor” —- the principle that only the buyer is responsible for checking the quality and suitability of goods prior to making a purchase. In real estate, this often means the buyer purchases the property as-is, without warranties of title or of condition of the property.

Question 14

In valuing a single family residence by the comparison approach, an appraiser would make adjustments to:

Answer 14

the comparable properties.

Question 15

A lender is required under the Truth-in-Lending Act (Regulation Z) to furnish an applicant for a real estate loan with a copy of a:

Answer 15

disclosure statement

Question 16

An addition to a will, which modifies the will by adding to it, subtracting from it, or clarifying it.

Answer 16

CODICIL - an amendment to a will. Any modification or addition to a previously executed will is contained in a separate document called a codicil, which must comply with state law to be valid.

Question 17

A trust deed may be released from the records by:

Answer 17

recording a reconveyance deed.

In order to clear the Deed of Trust from the title to the property, a Deed of Reconveyance must be recorded with the County Recorder or Recorder of Deeds.

Question 18

ostensible authority.

Answer 18

Ostensible authority happens when a third-party is allowed to believe there is agency relationship between an agent and a principal through the actions of the principal. If a broker acts like a seller’s agent and the seller doesn’t say otherwise, but the broker’s actions result in a sale, the broker will most likely be considered to have an ostensible authority.

Question 19

Laches

Answer 19

failing to do something which should have been done, i.e., to file a claim or to enforce a right, all within a prescribed time. The Statute of Limitations outlines actions that can be brought within a certain time frame.

Question 20

seller disclosure

Answer 20

A seller disclosure is a document completed by the seller that lists any known issues and “material facts” known about the property during the time they owned the home. In most states, the seller is required to provide this disclosure within a few days of mutual acceptance.

Question 21

doctrine of prior appropriation

Answer 21

In states where water is scarce, the “doctrine of prior appropriation” determines the use of the water. According to this doctrine, the use of the water is determined by the state, not the owner whose property is next to the body of water.

Question 22

down zoning

Answer 22

It usually reduces the economic value of the property involved. Down zoning is the process by which an area of land is rezoned to a usage that is less dense and less developed than its previous usage.

Question 23

“Let the buyer beware” is also known as what?

Answer 23

Caveat emptor

the principle that only the buyer is responsible for checking the quality and suitability of goods prior to making a purchase. In real estate, this often means the buyer purchases the property as-is, without warranties of title or of condition of the property.

Question 24

Injunction

Answer 24

a court order to stop certain action(s) by certain individual(s).

For example, an injunction could be sought by local homeowners to stop another homeowner from putting up a large neon sign over his home that says “Motel”.

Question 25

statute of frauds

Answer 25

The statute of frauds explains which contracts need to be written out to be enforceable. Normally, any contract that is not performed within one year must be in writing- for example, any contract to lease real property for more than a year must be put in writing.

Question 26

BLIGHTED AREA

Answer 26

It is a term popular in urban renewal, referring to a run-down area in which houses are vacant or in disrepair. Blighted areas can often be accompanied by crime and low property values.

Question 27

When considering portfolio risk management, the lender needs to be concerned with which of the following:

Answer 27

Reserves, Diversification and Liquidity