Test Questions Flashcards
Who needs a license?
Anyone who represents the pubic and collects a fee, needs a license
What is capital gains?
If you sell something for more than your “basis” in the item, then the difference is a capital gain, and you’ll need to report that gain on your taxes. Your basis is usually what you paid for the item.
What is the amount of capital gain exclusion for a single person?
$250,000
What is the amount of capital gain exclusion for a married couple?
$500,000
What does the FHA do?
Insure the lender
What does VA do?
Guarantee
What is earnest money?
Is evidence of the buyers intention to carry out the terms of the contract in good faith.
What is a bilateral contract?
Both parties promise to do something; one promise is given in exchange for another. Real estate contracts are bilateral because the seller promises to sell a parcel of real estate and convey the property title to the buyer, who in turn promises to pay a certain sum of money for the property.
What is a unilateral contract?
This is a one-sided agreement. One party makes a promise to induce a second party to do something.
In IL are brokerage contracts, bilateral or unilateral.
unilateral (pg268)
What is the Homestead Exemption
It protects a person from creditors. page 41
What is the amount of the Homestead Exemption?
single: $15,000
married: $30,000
What is an encumbrance?
Debts, liens, easements, encroachments, licenses. page 42
What is the IL Statue of Frauds?
States that all contracts must be in writing to be enforceable in courts. page 268
What is ownership of severalty?
The title is held by one person