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AL Real Estate Principles > Terms & Deffs > Flashcards

Terms & Deffs Flashcards

1
Q

What is immobile unique and indestructible

A

 land

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2
Q

When Supply goes up what goes down

A

 Price

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3
Q

What is Land plus appurtenances

A

Real Estate

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4
Q

When buying or selling real estate what “runs with the land”

A

 appurtenances

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5
Q

What rights are associated with a moving body of water that is navigable think river

A

 riparian

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6
Q

What rights are associated with a body of water that is not moving but is still navigable think lake

A

 Littoral

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7
Q

Where do you Littoral rights end?

A

At the mean high water mark

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8
Q

What divides out water rights

A

Doctrine of prior appropriation

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9
Q

Trade fixtures or personal property that is acquired at the end of a lease if not removed

A

 Accession

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10
Q

The process of converting personal property into real property. Such as buying materials to make concrete to pour a driveway or sidewalk

A

Annexation

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11
Q

An interest or right in real property that allows or will allow ownership for an indefinite duration.

A

Freehold estate

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12
Q

An interest or right in real property that allows or will allow possession for a fixed term

A

Leasehold estate

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13
Q

Type of estate you will deal with 99% of the time which involves people buying or selling it

A

Freehold “fee simple absolute”

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14
Q

Freehold estate that offers the maximum ownership estate in real property

A

Fee simple absolute

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15
Q

Type of freehold estate that is created by a deed condition often a gift

A

Fee simple defeasible or qualified fee

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16
Q

If a fee simple defeasible freehold estate deed condition is violated what happens to the estate

A

It reverts to the grantor or their heirs

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17
Q

What happens to the freehold estate with a life tenant who dies

A

It returns to a fee simple absolute estate and reverts to either the grantor (reverted) or third-party remainderman (if named)

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18
Q

What makes a leasehold estate for years

A

The lease has a specific termination date which requires no notice to vacate

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19
Q

True or false, death or sale of a  leasehold estate for years terminates the agreement

A

False, The lease is only terminated upon the predetermined date, unless  otherwise specified in the agreement

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20
Q

With regard to governmental powers what does the acronym PETE stand for

A

Police power, eminent domain, taxation, and escheat

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21
Q

Eminent domain is the right of the government to acquire privately owned real estate what is the proceeding by which the rate is exercised

A

Condemnation

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22
Q

What is the process by which the state may acquire privately owned real or personal property if the owner dies intestate (without a legal will)

A

Escheat

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23
Q

Type of partnership that gives partners equal say but also full liability

A

General partnership

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24
Q

What type of partnership limits the partner’s liability to their investment only

A

Limited partnership

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25
Q

What is the best way a couple should take title of a property

A

Based on the legal advice of their attorney

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26
Q

What right do co-owners have in a joint tenancy (must be specified in the deed)

A

The right of survivorship, which divides the equal interest of the member that passed away between the remaining members. Without going through probate and overrides a will.

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27
Q

What type of concurrent ownership is almost exactly opposite of joint tenancy and provides the members with no right of survivorship

A

Tenants in common, the deceased co-owners interest goes to the heirs or devisees

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28
Q

Type of survey that starts and ends at a point of beginning

A

Metes-and-bounds

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29
Q

In the rectangular (government) survey system what do the commas, semicolons; stand for

A

Commas = of
Semicolons = and
Because of a semicolon area = 60 acres

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30
Q

This method of describing real estate is typically used in urban or subdivided areas

A

Lot-and-block method

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31
Q

One tricky OR and EE is for Mortgage who is the mortgagor and who is the mortgagee

A 
Mortgagor = Borrower (2x Os)
Mortgagee = Lender (2x Es)
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32
Q

What is OWNERSHIP recognized by the courts after open, continuous, exclusive actual, and notorious (hostile) possession of another’s land for a certain period of time set by state law

A

Adverse possession

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33
Q

What is EASEMENT recognized by the courts after open, continuous, exclusive actual, and notorious (hostile) use of another’s land for a certain period of time set by state law

A

Easement by prescription/prescriptive easement

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34
Q

What type of deed states I hear by remise, release, alienate, and convey to X the following real property

A

Quitclaim

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35
Q

The person who employs another to act on his or her behalf

A

The principal (not necessarily the person that pays the agent, think buyers agent)

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36
Q

The one who is employed to represent the principal

A

The agent or fiduciary

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37
Q

What is another name for a transaction broker

A

Facilitator, someone who does not act as a fiduciary but does provide services to a party

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38
Q

What is the acronym used to remember fiduciary duties to principal as defined by common law of agency

A

OLD CAR

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39
Q

What does the acronym OLD CAR stand for?

A

Obedience
Loyalty
Disclosure (only material facts to all)
Confidentiality (Price, Terms, Motivation)
Accounting (Responsible f/ $ or Property)
Reasonable Skill and Care

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40
Q

All you owe to 3rd parties is DAH

A

Disclosure (at 1st substantive contact)
- Material Facts
Accounting
Honesty and Fair Dealing

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41
Q

Type of agent who is authorized to perform a particular act without the ability to bind the principal

A

Special Agency

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42
Q

Agency in which the agent is authorized to perform a series of acts associated with the continued operation of a particular business

A

General agency (ex. Realestate salesperson to Brokerage; Property manager)

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43
Q

Scope of agency where an agent is authorized to perform in place of the principal. The agent has unlimited ability to bind the principal.

A

Universal agency (POA)

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44
Q

Can a special agent be granted general agent powers?

A

Yes, for example a real estate sales person may be given power of attorney at some point during the process

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45
Q

Types of listing agreements include

A

Exclusive right to sell (best f/both)
Exclusive agency (Agent v. Owner)
Open listing (Wild West)

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46
Q

Type of contract that meets all legal requirements and contains all essential elements

A

 valid, binding and enforceable in court by both parties

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47
Q

Type of contract that has no legal affect and is not enforceable by either party because it lacks one or more of the essential elements of a valid contract

A

  void

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48
Q

Type of contract that appears valid but one party may disaffirm because the party is a minor or was subject to duress fraud or misrepresentation

A

Voidable

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49
Q

What type of contract termination occurs if A stipulations cannot be met that was requested

A

Contingency

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50
Q

Is a contract terminated by death?

A

No the estate must honor the contract

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51
Q

Long-term debt such as car payments, student loans, or other mortgages should not exceed what percent of monthly income

A

36%

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52
Q

Weather in mortgage is issued in a title theory or lien theory state what is the mortgage or deed of trust used for

A

Security for the promissory note

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53
Q

What is the legal instrument that provides evidence of the debt which is secured by either Mortgage or a deed of trust

A

The promissory note

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54
Q

Who signs the promissory note

A

The borrower not the lender so there’s not a contract it’s just an IOU

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55
Q

The special provision on promissory note will cause the lender to demand immediate payment of the entire balance if a borrower defaults on a payment

A

Acceleration clause

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56
Q

The purpose of a mortgage or deed of trust is

A

To pledge (hypothecate) the property as security for a debt

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57
Q

What type of interest is accrued on the majority of home loans

A

Simple not compounding

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58
Q

A reason for loan acceleration and foreclosure that results when maintenance of a property is so poor the value that is owed cannot be collected if foreclosed on

A

Waste

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59
Q

When are conventional loans insured by a Private Mortgage Insurance (PMI) to protect lenders

A

When the LTV (Loan to Value) is above 80%

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60
Q

Which two laws are enforced by the consumer financial protection bureau (CFPB)

A

TILA- Truth in lending act !! REG Z !!

RESPA- Real Estate Settlement Procedures Act

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61
Q

Law that deals with
— Loan Costs disclosure
— Not real estate specific
— Enacted by REG Z

A

Truth in lending act (TILA)

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62
Q

Law that deals with
— All closing costs
— real estate specific
— Standardizes closing practices for 1-4 family residential properties

A

Real Estate Settlement Procedures Act (RESPA)

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63
Q

TILA (Truth in Lending Act) = ?

A

REG Z (Federal reserve regulation Z)

Why you hear fast talker at end of commercial 

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64
Q

Four Primary Disclosures required by lenders under TILA

A
  1. True cost of credit, ex. APR
  2. Total finance charges
  3. Total # & amount of payments
  4. Total amount financed
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65
Q

What is the 3 day right of rescission?

A

TILA requirement that does NOT apply to home mortgages or construction loans

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66
Q

What triggers full disclosure under TILA

A

Mention of down payment, interest-rate, monthly payment, or number of payments. (Price and APR do not trigger)

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67
Q

What combined the TILA & RESPA to create a Loan Estimate that must be provided to the borrower no later than 3 business days after loan application?

A

TRID (TILA/RESPA Integrated Disclosure act

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68
Q

TRID requires what is provided to the borrower no later than 3 days before closing?

A

Closing Disclosure

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69
Q

Which act prohibits discrimination in all consumer credit transaction

A

Equal credit opportunity act (ECOA)

Race, color, religion, national origin, sex, marital status, dependence on public assistance, and age (if over 18)

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70
Q

ECOA adds what protected classes

A

MAP: Marital status, Age, and Public assistance

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71
Q

What is the Proration math formula

A

(Amount Paid / Days in Period) x Days Owed

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72
Q

360 Day Year Means each month has?

A

30 days

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73
Q

How many days are in a month for a 365-day year?

A

Need to know how many days are in specific month

  • 30 days has September, April June and November. All the rest have 31. Except February, 28 & 29 in leap year
  • Start at small knuckle & January. peaks = 31 Valleys = 30 or less
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74
Q

How to guess the right answer for proration using big side versus little side

A

Need to know who owes who, and which one has a bigger piece. Check for only one answer on test that passes test.

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75
Q

Prorated “accrued” items are what?

A

Owed by the seller but will be paid later by the buyer

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76
Q

How much do mortgage buy down points cost

A

One-percent of the total amount financed

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77
Q

For tax calculation purposes how many mills are in a penny

A

 10

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78
Q

Income/Rate = Value is the formula important when dealing with

A

Valuation of income property

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79
Q

What are the protected classes under the federal fair housing act

A

Race, color, national origin, sex, disability, and familial status

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80
Q

Under the fair housing act/civil rights act of 1968 are you allowed to advertise in local neighborhood newspapers or websites that may cater to a protected class

A

Yes as long as you advertise the property and not who should occupy it.

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81
Q

What are the three prominent types of violations to the fair housing act/civil rights act of 1968

A

Steering
Blockbusting
Red Lining

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82
Q

When dealing with members with disabilities a landlord should not charge extra for the following

A

Damage deposits above what is normally requested or pet deposits for service animals

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83
Q

What are 4 risk management Points of Evaluation? (ACTR)

A

Avoid - Remove the Source
Control - Plan to deal w/emergency
Transfer - Use of Insurance
Retain - Too small to respond

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84
Q

What is used to control growth in regards to land-use and zoning

A

Master development plan

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85
Q

Who’s responsibility is it to verify that current zoning use and rules will meet the buyer’s needs

A

The buyer’s, but we will usually help

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86
Q

Things to remember when answering questions regarding “off the books” or “outside the company/office” sales

A
  • Must comply with all License laws except listing brokers name on advertising
  • Qualifying Broker always liable for licensee’s actions
  • Money must be deposited in QB’s trust acct, unless owner of money agrees otherwise in writing
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87
Q

Who qualifies as an immediate family member under Alabama state law?

A

Parent, child or spouse

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88
Q

Two Possible solutions to earnest money dispute

A
  • Pay the money into court with or without the word “interpleader” or
  • The parties all agree in writing how the money should be handled
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89
Q

Is the broker a party in determining what happens to earnest money

A

No they have no option and cannot deposit anywhere except the court or disperse as agreed-upon by all parties

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90
Q

What do anti-trust laws protect against

A

Interference in free and open market competition (market dividing, price fixing, bid rigging, refusal to deal)

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91
Q

Who investigates the Alabama anti-trust violations

A

The office of Alabama attorney general

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92
Q

Is a RECAD disclosure form required in commercial transactions

A

Yes the only time it is NOT required is when dealing with a company, example transactions with a corporation, limited liability company, partnership, trust, government entity, or artificial person.

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93
Q

A transaction broker may NOT do what

A

Offer negotiation assistance

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94
Q

In Alabama does a buyer brokerage agreement have to be in writing

A

Yes if agency services are included and brokers owe some legal duties even after the agreement is terminated

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95
Q

Equation to find Alabama Deed tax

A

(Down Payment / 500) x $0.50

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96
Q

Equation to find Alabama Mortgage tax

A

(Amount Financed / 100) x $0.15

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97
Q

What two taxes make up Alabama Recordation taxes?

A

Deed & Mortgage

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98
Q

True or false Alabama is a community property state?

A

False

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99
Q

How many square miles are in one section

A

One

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100
Q

How many acres are in one section or one square mile

A

640 acres

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101
Q

How many square feet are in 1 acre

A

43,560  Square feet

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102
Q

When solving for Total Cost or Total Value remember the 2nd unknown will equal what?

A

100% ex. What is TC if Loan = $1,000, Fees = $100 & Interest = 10%. You know 90% of total = $1,100 so 1,100/.90= $1,222

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103
Q

Capitalization rates are annual so you have to remember to convert what

A

Monthly income to annual

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104
Q

To convert cubic feet to cubic yards you divide by

A

 27

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105
Q

How many hours of continuing education must licensees complete during a renewal period?

A

15
With 6 in Risk Management:
- 3hrs avoiding violations &
- 3hrs any other

106
Q

 The duty to retain files is only three years, but, if files older than three years are destroyed after a commission request what will happen?

A

Will result in additional discipline by the commission

107
Q

There are two correct answers on the test one regarding discipline by the real estate commission and the other regarding additional criminal charges which should you choose?

A

Always choose the correct answer for the real estate portion of the exam as this is not a bar exam for lawyers.

108
Q

How long does a new licensee, holding a temporary license, have to complete their post license education requirements?

A

12 Months

109
Q

With regard to mold what is required for disclosure in Alabama?

A

There’s a gray area but should still be disclosed even if professionally removed as spores could still return in the future.

110
Q

If an agent thinks there is evidence of problems with a home but the owner denies them what should they tell a prospective buyer?

A

“I have no personal knowledge of ___, but it is always best to obtain a home inspection.”

111
Q

For the purpose of the license exam once you assume that all rebates are?

A

 illegal

112
Q

Who may nominate an individual to the Alabama real estate commission?

A

The Alabama association of realtors submit three names to the governor for any available position and the governor she uses among those names

113
Q

What is the FDIC deposit insurance limit on trust accounts?

A

$250,000

114
Q

When are your brokers license is revoked and all real estate activities cease under that broker what must also occur before real estate activities by sales persons may resume

A

The new broker must accept the licenses for sales persons and associate brokers before activities may recommence

115
Q

To apply as a broker an Alabama sales person‘s license must have been active for how many months of the previous 36 months?

A

24, breaks in active status are allowed.

116
Q

Type of contract which gives the buyer the right to purchase and the seller is bound contractually to sell

A

Unilateral option contract

117
Q

If two sales people in the same real estate firm agreed to divide their town into northern southern regions and each handle their own is this agreement in violation of anti-trust laws?

A

No because they belong to the same firm

118
Q

The licensee always requires buyers and sellers sign a receipt for estimated closing statements. This is because

A

It is required by Alabama license law that they sign for receipt of the statement before signing for offers and counter offers.

119
Q

Watch out for MUST vs SHOULD

A

Sales person I MUST present written offers without waiting. But SHOULD disclose if other offers are pending. 

120
Q

Qualifying brokers responsibility for her licensees’ actions include

A

Disciplined by the commission and civil damages to injured parties

121
Q

Who has the duty to disclose to the seller, the sales person’s real estate license and relationship to a listing agent

A

The licensee Buyer (sales person), The listing agent would be prudent to disclose such things too but the Duty falls on the licensee Buyer

122
Q

What is another term for the original sales person‘s license

A

 permanent

123
Q

Sales person‘s license has been in inactive status for many years. What is necessary to activate it?

A

Complete current periods continuing education requirements and then obtain a broker who will request the license to be issued under that broker

124
Q

Transaction broker may not

A

Offer Advice to the consumer. This is especially tricky to handle during offers and counter offers

125
Q

Listing agreements (not buyer brokerage agreement) must have fixed what

A

Expiration dates

126
Q

Is the company or brokerage address required to be displayed with the company name on all advertising including business cards?

A

No

127
Q

What is the minimum age to take the real estate license exam

A

 19

128
Q

Do witnesses testify during the appeals stage of a commission review

A

No appeals are decided based on the record which consists of transcripts of testimony before the commission and exhibits presented to the commission for review

129
Q

What do licensees have to disclose if selling their own property

A

That they are licensed in Alabama

130
Q

Who holds inactive real estate licenses?

A

The Alabama real estate commission

131
Q

What is the last possible date to renew an Alabama license

A

30 September of even numbered years. 31 August is the last date to renew without been placed in an active status and paying a penalty to renew. 

132
Q

How long was the person to be a US citizen before obtaining their Alabama real estate license

A

There’s no length requirement they simply must be a citizen before applying

133
Q

How much time must pass post bankruptcy to apply for Alabama real estate license

A

None there is no credit check requirement for licensing

134
Q

What time period must have passed before someone convicted of a felony or crime of moral turpitude may apply for a real estate license in Alabama

A

Two years

135
Q

What is the minimum fine the commission can Levi even simply for a bad check

A

$100

136
Q

How long does a temporary license holder have to complete their post license education?

A

12 months
6 Active
+ 6 Inactive if necessary

137
Q

Alabama, the duties of a licensee while practicing agency are stipulated by what

A

The real estate consumer agency disclosure act (RECAD) that must be included on all buyer/seller contracts.

138
Q

How does a consumer begin the process of converting a judgment into a check from the real estate recovery fund?

A

Consumer files a verified claim in the court that entered judgment against the licensee

139
Q

What amount of personal funds may an Alabama broker keep in a trust account

A

No more than $1,000

140
Q

How many days does a sales person have to file an application for rehearing

A

30

141
Q

Is writing bad checks a violation of Alabama commission law?

A

No not unless written directly to the commission. However writing enough bad checks might demonstrate dishonest dealings, bad faith, or untrustworthiness which are punishable

142
Q

Is there a requirement for estimated closing statements to be provided to those selling or buying commercial real estate

A

No

143
Q

The appraised value of a residence with four bedrooms and one bath would probably be reduced because of

A

Functional obsolescence

144
Q

The truth in lending act requires that lender supplied borrowers with information applying to

A

The true cost of credit or annual percentage rate

145
Q

RESPA requires a new loan estimate of closing costs and a new loan closing disclosure before what

A

Settlement

146
Q

Acceptable evidence of marketable title is

A

A title insurance policy

147
Q

The sales comparison approach to value is MOST important when estimating the value of

A

An existing residence

148
Q

To find an estimate of value for an apartment building, retail location, or hotel an appraiser would normally rely on which approach to value for each of these income producing properties?

A

Income approach

149
Q

Between an estate for years and an estate from period to period. Which has an expiration date

A

The estate for years.

Estates from period to period automatically renew until notice is given

150
Q

Type of easement granting a right of way for utility company’s power lines is?

A

Easement in gross

151
Q

When presented with a tax problem for math what is the first thing you should always do?

A

Check time periods to make sure amounts given are in the same format

152
Q

Why is in real estate property tax lien a specific involuntary lien when compared to other tax and judgment liens

A

Because those other liens will target both real property and personal property while the real estate property tax lien only targets the real estate

153
Q

Demand, utility, scarcity and transferability (DUST) are all characteristics of what

A

Value

154
Q

What three things will terminate an agency relationship

A

Completion of the agencies purpose, destruction of the property, and bankruptcy of the principal

155
Q

According to federal do not call legislation when a consumer makes an inquiry or submits an application, a real estate licensee may call the consumer for up to how many months

A

3

156
Q

If a change needs to be made to a contract how should it be made?

A

Using an amendment

157
Q

Items that explain and are added to offers such as an addendum for a long legal description would be called what?

A

 attachment

158
Q

A contract that conveys the right to quiet enjoyment and use of property but does not convey title

A

A lease

159
Q

A contract in which one party purchases the right to buy at a fixed price within a specified period is

A

An option contract

160
Q

An appraisal is based on analysis of what kind of properties

A

Those that have actually sold

161
Q

The primary purpose of a profit and loss statement is to analyze what

A

How the property was managed and make projections for the new year

162
Q

When the buyer is in default and the seller keeps the earnest money the contract most likely provided for

A

Liquidated damages

163
Q

If the listing agent loses the sellers house keys. The agent has reached her fiduciary duties of?

A

 accounting

164
Q

A mortgage loan from a seller to the buyer to allow the buyer to complete the transaction is called

A

A purchase money mortgage

165
Q

A fixed rate home loan that is fully amortized according to the original payment schedule permits the borrower to pay ____ each payment.

A

the same amount.

166
Q

A mortgage broker generally does what

A

Bring the borrower and the lender together

167
Q

Federal income tax regulations allow Home Owners to reduce their taxable income by amounts paid for what

A

Real estate property taxes not repairs and maintenance

168
Q

General real estate property taxes levied for the operation of the government are

A

Ad valorem taxes

169
Q

The clause in the deed that conveys the rights and privileges of ownership is called

A

The granting clause

170
Q

How long do parties have to file a discrimination suit in federal

A

Two years

171
Q

Why is the civil rights act of 1866 unique

A

It provides no exceptions that would permit racial discrimination

172
Q

Title 11 of the financial instructions reform, recovery and enforcement act of 1989 (FIRREA) regulates

A

 appraisers

173
Q

A corporation takes title to real property in Severalty, because ?

A

they are treated like a single person and my own property in severalty

174
Q

Value = NOI (net operating income)/ by

A

 capitalization rate

175
Q

Which title of the ADA impacts commercial in public accommodations

A

Title III

176
Q

In this type of lease the tenant agrees to pay rent along with some of the property expenses

A

A net lease

177
Q

In this type of lease the tenant only pays rent

A

 Gross lease

178
Q

A listing contract is best described as

A

A personal service contract

179
Q

Which right of redemption is with the mortgagee/lender

A

An equitable right of redemption

180
Q

Which right of redemption is with the court after foreclosure

A

Statutory right of redemption

181
Q

Consumer financial protection bureau (CFPB) why is a lender to give the borrower what at the time of application

A

A new loan estimate of settlement costs

182
Q

To compute the return on investment (ROI), property Manager must

A

Divide the after-tax cash flow by the equity and multiply by 100

183
Q

Does bankruptcy affect agency contract for sale of a property?

A

Yes because title to the property transfers to a court appointed receiver

184
Q

Determining the height of a structure a surveyor would most likely use

A

 A datum

185
Q

Value = DUST

A

Demand, utility, scarcity, transferability

186
Q

This is by definition government restriction on the amount a property owner may charge for rent

A

Rent control

187
Q

In joint tenancy each owner has what share of the property

A

And undivided share they all share equally

188
Q

Type of defect that is easily noticeable during inspection. Opposite of latent

A

Patent

189
Q

How much is a buy down points worth to the lender

A

1.25% so if they provide a loan for 8% with a one by down point the pay out to the lender would be 8.125%

190
Q

What is the purpose of a building code?

A

To make sure buildings are structurally safe

191
Q

Clause in a mortgage or deed of trust the permits the lender to foreclose sale without court action is

A

The power of sale clause

192
Q

Which lease is used to attract tenants for a property that is difficult to lease by offering a lower than market rate that increases as the business grows?

A

 graduated lease

193
Q

An appraiser using the gross rent multiplier method would consider RENTAL INCOME and what

A

 market price

194
Q

Provides the convenience of legal title at a future date

A

A contract for deed

195
Q

Why would a reverse mortgage loan be better for A person over 62 years old be better than a home equity loan?

A

Because the reverse mortgages does not require the large recurring payments that a home equity loan would.

196
Q

Which appraisal approach cost?

A

The cost approach

197
Q

If a lender applies 28/36 qualifying ratios what percent of the borrowers monthly income can be applied to PITI and what percent is the max total obligations?

A

PITI = 28% Max
Total Obligations = 36% Max
Of Gross Monthly Income

198
Q

In an executory purchase contract, the buyers interest is described as

A

Ownership in equity

199
Q

In a land contract the buyer holds what

A

Possession or equitable title during the term of the contract while the seller maintains title to the property

200
Q

What type of contract is a property management agreement

A

A personal service contract terminates upon the death of either party

201
Q

Potentially responsible parties are least likely to include

A

Real estate licensees. More often than our past or present owners who are those disposing of hazardous waste

202
Q

A tenant who remains in possession of the property after the lease has expired is called?

A

A holdover.

This is different than a lease at-will tenant who is still in legal possession

203
Q

An appraiser uses estimate of the buildings replacement cost in what type of appraisal

A

 cost approach

204
Q

In an executory purchase contract, the buyers interest is described as

A

Ownership and equity

205
Q

What is a property manager who manages a commercial properties MOST Paramount concern

A

Environmental damage caused by the tenants business

206
Q

The four unities of possession interest time and title are associated with which type of tenancy

A

Joint tenancy

207
Q

A married couple who owns a farm together with the right of survivorship most likely maintains a

A

Tenancy by entirety. Because it includes the right of survivorship

208
Q

A contract entered into without duress, misrepresentation or fraud means that it meets the legal requirements of what

A

consent

209
Q

Can an encumbrance on real estate be transferred with title when sold?

A

Yes as long as it is excepted by the buyer

210
Q

What is a 1031 tax deferred exchange used for the sale of

A

Investment property

211
Q

Type of loan used to cover more than one parcel or lot and maybe used to finance subdivision developments

A

A blanket loan

212
Q

If a property is misrepresented because defects are not disclosed to the buyer, The buyer may be able to resend a sales contract or receive

A

Compensatory damages for repair of the defect

213
Q

There are no exceptions to fair housing law for what

A

Racial discrimination

214
Q

For an FHA insured loan discount points may be paid by who

A

Either the buyer or the seller

215
Q

If the borrower discovers that the loan is not assumable what clause did the borrower find

A

Due on sale

216
Q

Time, title, interest and possession are necessary for?

A

Survivorship interest

217
Q

Private used land restrictions must be in

A

 writing no verbal agreements

218
Q

The acquired legal privilege for the right of use or enjoyment, short of an estate, that one may have in the land of others

A

Easement

219
Q

True or false property which has been previously encumbered is frequently transferred or sold

A

True

220
Q

The Americans with disabilities act requires access for all people to all services in buildings except

A

Private dwelling

221
Q

A voidable contract is valid until what

A

One of the parties elects to resend

222
Q

This type of contract presents a promise for a promise

A

A bilateral contract

223
Q

If the lessee subleases what do they retain

A

An interest in a leasehold estate

224
Q

The present worth of a future benefit coming from the ownership of property defines what

A

Market value

225
Q

Before the government can exercise the right of eminent domain the use must be

A

Public with just compensation

226
Q

 during the period of an exclusive right to sell listing if the principal no longer desires that the broker act for him he may

A

Revoke the agency created by the listing contract but may be held liable for damages. He’s NOT forced to sell the property in accordance with terms of the listing contract

227
Q

When appraising the value of a parcel of undeveloped land the first and most important thing to consider is

A

Market price of comparable properties

228
Q

An individual who engages in multiple discriminatory practices can be fined by an administrative law judge what

A

25,000 to 50,000 without limitations of time.

229
Q

The clause that makes a mortgage note un-assumable is which

A

Alienation clause

230
Q

At the time of entering into a conditional installment sales contract the seller retains what

A

Legal title

231
Q

A high loan to value ratio would indicate

A

 Low equity

232
Q

The type of mortgage requiring the borrower to pay only interest during the term is what type

A

term

233
Q

On a construction loan interest is charged to who

A

The builder

234
Q

What is a legal right for dissolution of coownership

A

Bill of partition

235
Q

In Alabama the annual license fee for salesman and companies is

A

$85

236
Q

The annual license fee for brokers in Alabama is

A

$95

237
Q

From the final hearing of any complaint brought before aREC they shall render a decision within

A

30 days

238
Q

A licensee paying $30 on receipt of their initial active license funds white

A

The Alabama real estate recovery fund

239
Q

A licensee desiring to appeal a decision or ruling of the Alabama real estate commission in court shall post a satisfactory bond in the amount of

A

$200

240
Q

Does a broker have to pay a license fee for each company they work for

A

Yes $95 each

241
Q

 while a licensee may offer an owner money for a listing or if the listing cells or even A vacation to Florida they may not offer what?

A

A portion of the commission they earn

242
Q

If a licensee is appealing a decision what happens to their license during the appeal

A

It is stayed pending the outcome of his appeal

243
Q

Which estate in real property is often described as being a potentially perpetual estate

A

Fee simple estate

244
Q

A lien is always a result of what

A

 A debt

245
Q

How many years is required for a prescriptive easement in Alabama

A

Minimum of 20

246
Q 
Paint peeling off the interior of the building would be considered 
deferred maintenance, 
physical depreciation, 
functional obsolescence, 
or economic obsolescence?
A

Physical depreciation

247
Q

Which of the following would be a negotiable instrument?
 trust deed
 note
Mortgage

A

The note, neither a trust deed or mortgage is negotiable

248
Q

Capital required to equalize the value of two like kind properties in a real estate exchange is called the

A

Boot

249
Q

Type of control that includes building codes, zoning and subdivision regulations is?

A

Police power

250
Q

A tenant of a store in the Local shopping center pays different amounts of rent each month for the same amount of space. The tenant most likely has which type of lease

A

Percentage lease, where the tenant pays a base rent plus percentage of gross sales revenue each month

251
Q

If a buyer buys a property “subject to” A mortgage and subsequently defaults on payment, Who is responsible for payments?

A

The seller only

252
Q

On the closing statement, the purchase money mortgage would appear as a credit to who?

A

The Seller

253
Q

 The fed can usually make the price of real estate go down by doing what

A

Increasing their discount rates to member banks

254
Q

Deed restrictions are placed on a subdivision development by who

A

The developer

255
Q

Because a person is considered a minor if there are 18 years of age or younger a contract is voidable by the minor if they are not how old?

A

 19

256
Q

Do commercial banks provide mortgage loan funds on the secondary mortgage market?

A

No they provide mortgage loan funds on the primary mortgage market

257
Q

Listing contracts are not

A

 assignable

258
Q

Rent the property would command in a perfectly informed market is?

A

 economic rent

259
Q

Which clause in a mortgage would prevent the current holder to pass to a new buyer

A

Alienation clause

260
Q

Under a mortgage a mortgagor is the party who

A

Signs the mortgage is the maker

261
Q

Do all associate broker is qualified to become qualifying brokers

A

No they meet the requirements to be a broker but must have a business to be a qualifying broker

262
Q

What must a student have before they can begin the 30 hour post licensing course

A

A temporary license

AL Real Estate Principles (1 decks)

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