QUIZ QUESTIONS Flashcards
What is another name for the subdivision method of land description?
Lot and block method
Another name for the rectangular survey system is
Government survey system
The oldest method of land description in the United States is
Meet and bounds method
Economic characteristics of real property include
Scarcity, location, and improvements
Physical characteristics of real property include
Immobility, indestructibility and uniqueness
Situs is another word for
Location
What does appurtenant mean?
Attached to the land
Legal tests of a fixture include
Method of annexation, adaptability, relationship of the parties
Annexation is the process by which
Personal property becomes real property
Severance occurs when
An item of real property becomes personal property
The definition of land does not include
Emblements
What are examples of fixtures?
Heating system, bathroom, cabinets, light fixtures
Personality is another name for
Chattel
Real estate is defined as
All human made improvements, land, permanent attachments
What are the bundle of rights?
Right of possession
Right of use
Right of quiet enjoyment
Right of exclusion
Right of disposition
Samantha Smith has the legal right to act as if she owns the property although the property is actually owned by her sister Samantha is who
A holder of a life estate
A woman owned the feesimple title to a lot adjacent to her home. Upon her death, she willed the lot to the city pursuant to the city using the law as a park. This gives the city a what
Fee simple determinable
How might a homeowner be allowed certain protections from creditors?
Homestead rights
A life estate put autre vie is
Based on the lifetime of a person, other than the life tenant
Life estate is
Freehold estate based on the lifetime of a person
Fee simple defeasible is
Qualified fee estate, subject to the occurrence of a special event
Fee simple state is the same thing as what
Fee simple absolute
Freehold estates include
Fee simple
Fee simple defeasible
Life estates
The word ownership means the same thing as what other word
Freehold
What is true about cooperatives?
Is a lease hold interest
Title is held by a corporation
A prospective tenant purchases stock and becomes a shareholder
What is true about timeshare states?
Ownership is a real property interest
Owner ownership permits, multiple owners to buy a small interest
Ownership is for a specified unit for a specified period of time
Alan and Bonnie create a family trust they do this to protect their vast assets for the benefit of their only child Cheryl, Cheryl is the
Beneficiary
Alan and Bonnie create a family trust they do this to protect their assets for the benefit of their only child Cheryl. Alan and Bonnie are the
Trustors
What is true about corporations?
Partners personal assets are protected from lawsuits brought against the corporation
Joint tenancy requires four unities to be in place when tenancy is created what are those unities?
Possession interest time title PITT
Ashley and Jake are married and own a home together each holds an undivided interest they each hold the right of survivorship they are
Joint tenancy
The type of ownership that grants each owner of full and undivided write a possession is called what
Tenancy in common
Ownership by one person or corporation is called
Ownership in severalty
Real estate may not be held in which way
Lis pendens
When can easements be terminated?
When the need no longer exists
By the non-use or abandonment of the easement
By the release of the easement by the servient tenement
Easements are not created by
Restriction and prescription
Children attending laurel elementary school. I’ve been walking across Jake’s vacant lot for more than 10 years when jake decides to build a home on the property and attempts to kick the children off his property. The parents get involved in claim they have what.
An easement by implication
In order to overcome the problem of being landlocked court, can issue an order creating what
Easement by necessity
The canyons have an Easement on the Layton‘s 10 acre parcel in the form of a right away the canyons are what
The dominant tenement
An example of an appertanance is
Utility
An easement is
The right to use
Without meaning to Laurel and Dayton, build a 2 foot fence onto their neighbors property. This would be example of.
Encroachment
An encumbrance is
A burden on title
A charger claim against a persons property made to enforce a monetary payment is what
A lien
A deed of trust is used when the buyer
Takes out a mortgage
He has died, but has left a will before his heirs can receive their inheritance. He will need to go through a legal process called what
Probate
A male person who has left a valid will is called a
Testator
A male appointed person who carries out the direction of a will is called a
Testator
The word title means
The right to land
Ownership of land
Evidence of ownership
What is a deed?
The right to ownership of land
Evidence of ownership of real property
The owners bundle of rights
Which type of deed transfers full ownership rights from the seller to the buyer
General warranty deed
A grantee received the greatest protection from which deed
General warranty deed
The type of deed that provides the least protection to the grantee is
Quit claim deed
A hand signed will is called a
Holographic will
This type of deed carries no warranties or representations. It gives only the interest that was foreclosed. This is called what
Sheriff deed
Alan died without a will this is called
Intestate
The essential elements of a deed include
Date
A grantor must
Be at least 18 years of age
Be legally competent
Make certain their name is spelled correctly on the deed
Utah is a non-disclosure state this means that
The sales price is not a matter of public record
The habendum clause begins with
To have and to hold
Whose signature must be on the deed in order for the deed to be valid
Grantor
More often than not in Utah delivery is accomplished by
Recording
A contract that never was valid is
Void
Real property given to another person by Will is called
Devise
The type of deed that provides no warranty as to title defects prior to the grantor’s ownership is a
Special warranty deed
Alana wants to finish her basement in order to make certain her additions are up to the current billing coach. She needs to apply for a.
Permit
The zoning code for a church or government building is
S
Permission to vary from zoning regulations for building or use purposes is called
Variance
Emergency police power could be exercised in the case of
A fire on the adjoining property
The granting of a real estate license is an example of
Police power
The authority, governing police power of zoning is
Granted to the city by the state
Police power does not include
Escheat
Inverse condemnation occurs when
In adjacent property is condemned and the use diminishes its value
Condemnation is an example of
Eminent domain
Randy died without a will and did not have any heirs the state of Utah will take ownership of his property. This process is called.
Escheat
Randy’s home has been on the news recently. The home was the center of a major gang’s hideout. This home would be considered a.
Stigmatized property
Hidden defect that would not necessarily be known to an ordinary buyer is also referred to as
Latent defect
When an agent should know that a statement about a material fact is false it is also referred to as
Negligent misrepresentation
Exaggerating a properties benefit is called
Puffing
The third-party or non-representative consumer is also referred to as the
Customer
Which of the following duties does an agent owe to customers?
Honesty
Accounting for fund
Disclosure of material facts
Sunshine Realty only represents buyers which of the following statements are true about sunshine Realty services
Sunshine Realty never practices limited agency
In Utah and agent can only be compensated for their real estate services by
The agent’s own broker
In the state of Utah, all agency relationships are between the principal and who
The broker
In choosing a broker considerations, the agent should take into account include
Training
Support
Compensation
Another name for limited agency is
Dual agency
The fiduciary duty that requires an agent to act completely and capably to serve their client. Well is.
Reasonable care & diligence
The fiduciary duty that requires an agent to properly hold safe and account for all monies that come into an agent’s possession is called
Accounting for funds
The fiduciary duty that requires an agent to keep their clients information to themselves and not share critical information with anyone else is called
Confidentiality
The obligation of the agent to tell their client absolutely everything they know or learn about the property. The other agent or the consumer is the fiduciary duty of.
Disclosure
The fiduciary duty that requires an agent to put their clients needs and interest above all others, including their own is called
Loyalty
The fiduciary duty that requires an agent to follow all law instructions of the principle is called
Obedience
A fiduciary duty is
One in whom special trust and confidence is placed
Rick realtor enters into an agency agreement with Bonnie buyer in this situation. Bonnie is the.
Principal
The purpose of the For Sale By Owner Commission Agreement & Agency Disclosure is:
To disclose that the seller is unrepresented
The Fiduciary Duties that are “Limited” are:
Loyalty, Confidentiality, Disclosure
The purpose of the Limited Agency Consent Agreement is:
To disclose that the Buyer and the Seller are being
represented by the same Broker
Section 2 of the Buyer Broker Agreement & Agency Disclosure deals with:
The Brokerage Fee owed by the buyer to their agent
In Section 1 of The Buyer Broker Agreement & Agency Disclosure, the “Date” that the agent writes in the line is the:
Date on which the agreement terminates
The purpose of the Buyer Broker Agency Agreement is:
To spell out the duties owed by the buyer’s agent
The purpose of Section 5 of The Exclusive Buyer Broker Agency Agreement is:
.
To spell out the duties owed by the buyer’s agent
Section 3 of The Exclusive Buyer Broker Agency Agreement deals with:
Protection. Period
In Section 1 of The Exclusive Buyer Broker Agency Agreement, the “Date” that the agent writes in the line is the:
Date on which the agreement terminates
Which form creates agency with a seller
Exclusive right to sell agency agreement
Which form creates agency with a buyer
Exclusive buyer broker agency agreement
If an agent practicing limited agency does a Comparative Market Analysis for one client:
They absolutely must give the same CMA to the
other client
Undisclosed dual agency is
Serious violation of state law
Can result in loss of commission or lawsuit
Can result in licensed suspension or revocation
Stephanie is an agent. She has listed her own home for sale. A buyer comes along and falls in love with Stephanie’s
home and wants to make an offer on it. The buyer doesn’t have an agent. What CAN Stephanie do?
Under no circumstances, can stephanie represent this buyer
Robert realtor has a home listed. He has a buyer who falls in love with the home and wants to make an offer. What should Robert do in the situation?
Robert must get a limited agency consent agreement signed by both the seller and the buyer prior to writing the offer
In a limited agency situation, the duties that are limited are
Loyalty
Confidential
Disclosure
The limited agency consent agreement needs to be signed by
The buyer, the seller and the agent or broker
The limited agency consent agreement must be signed by the buyer before
Buyer enters into a real estate purchase contract
The basic premise of the “Hermansen vs Tasulis” case is that
Agents have of duty to disclose material facts, even to customers
A hidden defect in a home that would not be discovered by an ordinary prudent buyer is called a
Latent defect
An agent stating: “This home has the most glorious views of any home in the entire Salt Lake Valley,” is an example of
Puffing
Despite the fact that the Seller did not disclose the cracked foundation, Agent Max should have known that the
foundation of a home he had listed for sale was severely cracked. Max is guilty of:
Negligent misrepresentation
An example of a “Stigmatized Property” would be a:
House where a highly publicized murder took place
A haunted house
A home where someone committed suicide
A house on the corner of dark and scary is believed to be haunted. This is an example of.
Stigmatized property
The appropriate place for a seller to disclose that there was a water leak in the upstairs bathroom three years ago was on the
Seller property condition disclosure
Agent Ashley is working on behalf of Buyer Brynne. When Ashley finds Brynne a property that she feels perfectly fits
what Brynne is looking for, Ashley works hard to find out everything she can about the home, the neighborhood, the
sellers, and their motivation for selling. Ashley’s efforts reflect her fiduciary duty of:
Disclosure
Agent Alexis represent seller, Sam what duties does she owed to any potential buyers?
The duties of honesty and fairness to any potential buyers
Agent Alex represents a Buyer. Alex learns from the listing agent that the property’s roof may not pass the home
inspection. Alex decides not to share this information with the Buyer, as she is afraid the Buyer will choose not to
purchase the property. Alex is guilty of breaching which of her fiduciary duties?
Disclosure
Agent Ashley represents a Seller. She fails to educate the Seller as to the Included Items that need to remain with the
property. Ashley is guilty of failing to exercise which of the following fiduciary duties:
Reasonable care and diligence
Which form creates agency with a seller
Exclusive right to sell agency agreement
Which form creates agency with a buyer
Exclusive buyer broker agency agreement
Undisclosed dual agency is what
Serious violation of state law
Can result in loss of commission or lawsuit
Can result in license, suspension or revocation
In the real estate transaction, who is the client
The principal
Agency agreement can be terminated one
One of the parties to the contract dies
The contract expires
The duty set forth in the contract have been performed
Damage assessed for non-performance of a contract that are agreed upon in advance when actual damages might be hard to establish are called
Liquidated damages
The five required elements of real estate contract include
Mutual agreement consideration
Capacity
Legal purpose
In writing
The real estate purchase contract is an example of a
Bilateral contract
Fire Bob and seller Sue enter into a written contract for the sale of Sue’s home. This would be an example of what
Express contract
Something of value promised by one party in exchange for an interest or benefit to the other party is called
Consideration
Mutual agreement means
A meeting of the minds
Illegally enforceable agreement between parties who agreed to perform certain act called a
Contract
The Smiths and the Johnsons have agreed to cancel out the old contract and substitute it for a new one. The substitution process is called.
Novation
When a court of law awards damage is beyond actual damages in order to punish one of the parties, those damages are also called
Punitive damages
In order for acceptance to occurred, the acceptance must be
Signed and communicated to the offerer
The Johnsons are suing the Smiths for specific performance. What are they seeking from the court?
For the Smith to have complete the contract as agreed
Failing to reform the duties owed by contract is called
Breach of contract
A contract that is created by the actions of the parties is called a
Implied contract
A contract that is created by either oral or written words is called a
Express contract
Sam Smith can withdraw his offer to purchase the office building at which time
Anytime prior to acceptance
What is the statue of frauds?
Stipulate that all real estate contracts must be in writing
Stipulate that all lease is over 12 months must be in writing
Sam Smith presents an offer to purchase an office building. He is the.
Offeror
The buyer has decided to cancel their transaction based on the fact that they discovered the property is haunted which form should be used
The buyers notice of cancellation
According to the buyer due diligence checklist, the suggested a remedy for handling an issue with lead faced paint is
To consult with appropriate professionals
The purpose of the seller property condition disclosure is
Allow the seller an opportunity to provide complete an accurate disclosure regarding all material facts affecting the property
The purpose of the transaction Doc receipt is to
To provide proof that specific documents were delivered
The blank addendum should be used for
As a last resort
As a real estate licensee, we have license too
Fill in approved forms
The resolution of due diligence addendum accomplishes the following
Allows the seller to contribute to the buyers closing costs
Allows buyer and seller to agree to purchase price reduction
Allows buyer and seller to agree that specific repairs will be made
The option to keep house on the market time clause addendum is
Allows the seller to accept other offers
Requires the seller to notified buyer if seller does accept additional offers
Allows the buyer a specified number of hours to agree to remove conditions from the REPC
The purpose of the disclosure of interest addendum is to
Disclosed at the principal is a licensed or related to the licensee
When a seller is considering which offer to accept or counter in a multiple offer situation:
The purchase price matters
The dates in section 24 matter
All contingencies matter
When a listing agent receives multiple offers on a property, they have listed they should
Present the offers as they come in
Regarding multiple offers real estate agents need to remember that
The seller is in charge of how many multiple offers are to be handled
The seller is in charge of whether or not multiple offers can even be disclosed to other inquiring agents
The sellers noticed to buy of multiple offers form
Provide all buyers with opportunity, present their highest and best offer
The multiple offer addendum is
An addendum to the real estate purchase contract
Multiple offer addendum to the REPC is
A counter offer
Specifies the terms of the counter offer
Is not binding unless buyer is notified in writing by the seller
The multiple offer disclosure discloses several options for dealing with multiple offers, including the option to
Except your counter one of the offers and reject the others
Present multiple counter offers
Provide all buyers and opportunity to present their highest and best offer
The multiple offer disclosure needs to be given to
The seller
When it comes to short sale transactions, real estate professionals should never
Give legal advice to their clients
Give tax advice to their clients
Attempt to enter into limited agency by up, representing both buyer and seller
Regarding short sales when it comes to third-party approval
Verbal approvals from third parties are not valid
Third-party approvals can take a very long time to obtain
If there are multiple mortgages on the property written approval is required from all lienholder
Regarding short sales real estate professionals need to understand that
Short sales may take a very long time
Obtaining third-party approval can be time-consuming
Buyers may become impatient and back out of the transaction anytime prior to the third-party approval
The addendum to the exclusive right to sell agency agreement for short sale disclosures to the seller what
That they have previously seen and signed the short sale disclosure form
That they are authorizing their agent to disclose in all advertising on the MLS that this is a short sale transaction
That a short sale may have a negative impact on the sellers credit
If a seller would like to accept a backup offer on a short sale transaction a real estate professional should use
The secondary back up offer contract for short sale form
A short sale is defined as
A transaction in which the purchase price is less than the amount owed on outstanding liens on the subject property
The document that defined what a short cell is actually is defined in
The short sale disclosure and addendum
The purpose of the short sale addendum to the REPC is
Acknowledge that this transaction is a short sale
Define the role of a third-party and short sale transactions and defined third-party approval
Specified contract, deadlines, pursuant to the third-party approval
The short sale disclosure should be signed by
Buyer or seller clients
The purpose of the short sale disclosure is to
Provide disclosure to all parties
Define what a short sale is and spell out the rights of the parties to cancel
Define the role of a third-party in short sale transactions
A property manager must
Use a standard contract or use one prepared by an attorney
At a minimum of full-time property manager must have
A real estate license
Ned has abandoned his lease before the expiration date and has moved out of his apartment. What will Ned not have to pay?
Commission to the property manager for finding a new tenant
Federal laws that affect property management include
Americans With Disabilities Act
The federal fair housing act
Equal credit opportunity act
The process by which a landlord removes a tenant for nonpayment of rent is called
Eviction
The statue of frauds stipulates that
All real estate purchase contracts must be in writing
All real estate lease is longer than 12 months must be in writing
Mr. Jones has a four Plex for rent. He may legally refuse to rent to who.
Drug addicts
An agent representing a property owner rents a condo to a tenant without checking the tenants credit history. The tenant had a very poor credit history. The agent breached their fiduciary duty of.
Reasonable care and diligence
An agent has been hired to be a property manager his client is the
Landlord
A licensee or company responsible for maintaining a client investment properties would be a
Property manager
The clause in a mortgage that states that the tenants rights under their lease are to remain intact at the lender has to foreclose on the owner’s property is called a
Non-disturbance clause
A lease of unspecified duration that does not automatically renew itself is called a
Periodic tenancy
A lease with a specific starting and ending date is called a
State for years
A lease of unspecified that does not automatically renew itself is called a
Estate at will
In order for the tenant to be relieved of paying rent and terminating the lease under constructive eviction
The tenant must vacate the property
A lease is considered a
Less than freehold estate
Tenancy for years
Periodic tenancy
The legal process of removing a tenant for a breach of the lease is called
Eviction
A law that states that all leases over 12 months have to be in writing is called
The statue of frauds
Laurel and Dayton would like to rent one of the units in Diane’s four Plex they sign a lease they are
Tenants
Diane owns a four Plex in Spanish Fork. She offers to lease each unit for $500 per month. Diane is the.
Lessor
Bronson buyer wants to know what the loan term is on the loan for his new condo where on his loan estimate while he find this information?
Page one
Brooke, buyer wants to know if her interest rate is locked on the loan for her new condo where on her loan estimate will she find this information?
Page one
Buyer bob wants to see a breakdown of the loan costs are for the purchase of his new home. Where can you find this information on his loan estimate?
Page 3
Betty Buyer wants to know what her estimated “Cash to Close” will be for her pending real estate transaction. Where
can she locate this information on her Loan Estimate?
Page 2
The first section of the Loan Estimate clearly discloses:
The loan terms
The piece of legislation that created TRID is called:
The Dodd/ frank act
Another name for TILA is
Regulation Z
Which federal law requires the lender to disclose the Annual Percentage Rate?
Truth in lending act TILA
What does TILA stand for
Truth in lending act
What does APR stand for
Annual percentage rate
What does TRID stand for
TILA/RESPA Integrated Disclosure
The Section on the Closing Disclosure where the buyer can locate whether or not the loan is Assumable is on:
Page 4
The Section on the Closing Disclosure where an agent will find their commission itemized can be found in:
Section H
The bottom line on page 1, “Cash to Close,” is itemized on what page?
Page 4
The first section on Page 5 of the Closing Disclosure is the:
Loan calculations
The first section on Page 4 of the Closing Disclosure is the:
Loan disclosures
The first section on Page 3 of the Closing Disclosure is the:
Calculating cash to close
The first section on Page 2 of the Closing Disclosure is the:
Loan costs
The first section on Page 1 of the Closing Disclosure is the:
Loan terms
Federal Law requires that the Closing Disclosure be given to a buyer at least how many days prior to Settlement:
5 days
The acronym “RESPA” stands for:
Real Estate Settlement and Procedures Act
The Closing Disclosure is required for
Only on transactions where federally related mortgage is part of the transaction
Closing” is defined as:
The buyers loan has funded & recording has occurred
The document the buyer must receive at least three days prior to Settlement is called the:
Closing disclosure
On the Closing Disclosure, prorations for unpaid real estate taxes are shown as a:
Debit to the seller & credit to the buyer
Which federal law requires that consumers receive a Closing Disclosure at least 3 days prior to Settlement?
Real Estate Settlement and Procedures Act (RESPA)
What does a split closing mean
The Buyer and Seller are using different title
companies
Settlement is defined in the Real Estate Purchase Contract as:
All parties signing all necessary documents
Title insurance does not protect against:
Zoning restrictions
ALTA stands for
American land title association
An owners title insurance policy covers what
Defects found in public records
Forged documents
Improperly delivered deeds
Lender’s Extended Coverage covers:
Everything covered by Standard Coverage
Unrecorded rights of persons in possession
Unrecorded liens not known to the policy holder
If the buyer has a mortgage, the type of title insurance that the buyer purchases protects the:
Lender
The type of title insurance policy that the seller buys protects the:
Buyer
Buyer Bob purchased a property for $300,000. His mortgage was for $220,000. How much title insurance coverage did
Bob have to pay for?
$220,000
Which type of policy is specifically mentioned in the REPC:
ALTA policy
What title insurance would give the buyer the least amount of protection?
Attorney’s opinion
Title insurance is
A limited guarantee of marketable title
The number of days a taxpayer has to identify potential replacement properties is:
45
Money or property given to make up the difference in value or equity in a 1031 Exchange is called:
Boot
A tax-deferred exchange is called a:
1031 Exchange
To calculate Cost Basis, one must calculate:
Purchase Price plus Acquisition Cost
Depreciation taken periodically in equal amounts over an asset’s useful life is called
Straight line
Basis can be defined as:
The investors initial cost
Another name for depreciation is:
Cost recovery
Equity refers to:
The value of the property owned minus outstanding
liens
To calculate capital gain, we must calculate the:
Cost basis minus depreciation minus the sales price
Capital Gain can be defined as:
The difference between the adjusted basis of a
property and its net selling price
One of the tax benefits of home ownership is:
Mortgage Interest Deduction is tax deductible
Closing costs paid on a transaction are tax deductible
Property taxes paid are tax deductible
Another term for an “AITD” is a:
Wrap around mortgage
The acronym “AITD” stands for:
All inclusive trust deed
An “IOU” is a:
Promissory note
In a deed of trust transaction, the party who retains possession of te property is the:
Trustor
In a deed of trust transaction, the borrower is referred to as the
Trustor
In a deed of trust loan transaction, the lender is also referred to as the:
Beneficiary
An instrument used to create a mortgage lien is called a:
Deed of trust
The lender in a mortgage loan transaction is called a(n):
Mortgage
The borrower in a mortgage loan transaction is called a(n):
Mortgagor
A pledge of real estate as security for a debt is called a(n)
Mortgage
