Ultimate Test 4 Flashcards
What legal description would have the same beginning and ending point?
c) Meets and Bounds
A homeowner, after purchasing his property, finds that there is a hill at the bottom of this property with zoning restrictions prohibiting him from building within this area. To correct this issue he would?
a) Apply for variance
RESPA is regulated by:
b) HUD
The lead-based paint disclosure allows the purchaser to:
a) Allows the purchaser to test for lead based paint
The effective gross income is $70,000 per year. The net operating income is $4000 per month. The capitalization rate is 9%. What is the value of the property?
c) $533,333.33
A home sold for $150,000. This represents the property’s:
b) Market Price
A Lender is not allowed to use a Broker Price Opinion (BPO) for:
a) Purposes of loan financing
A Broker presents a purchase offer on a property. Richard and his wife, Stacey want a few hours time to make up their minds whether they want to accept the contract or not. During this time Stacey is killed in a car accident. The contract is:
b) Canceled
A Broker waits 30 days after his license is due for renewal before he pays his renewal fee.
During this 30-day period her license is:
b) Inactive
A group purchases a property as tenants in common and do not state their percentage of ownership. It is assumed that:
a) All parties have an equal interest
An appraiser may depreciate:
b) Building
A private lender is governed by the laws of:
d) USURY
Which of the following would always be a credit to the seller?
a) Sales price/prepaid taxes
Two firms working the same area agree to charge a fixed 7% commission rate. These Brokers have?
b) Broken antitrust laws
A seller signed a counteroffer. Prior to purchaser’s acceptance, a higher offering price on the property was presented to him. The seller:
a) May accept the new offer
A buyer purchases a home which has an easement through it allowing access to a neighbor’s lot. This easement:
b) Will always be an encumbrance to the new purchaser
Radon is colorless and odorless but it is also:
a) Easily mitigated
A husband and wife purchased the property as joint tenants. In his will, the husband left his half share to his son. Upon the husband’s death the son would receive:
d) Nothing
The appropriate way of estimating market price would be:
a) Sales Price
Which 50-unit subdivision would not have to register with the division of real estate:
a) Camping Sites
The higher the leverage, the:
b) Lower the down payment
A broker takes an open listing. To receive a commission, he must:
a) Prove that either he or one of his associates is the procuring cause
A shopping center was purchased. The most likely way the property was appraised was by utilizing:
d) The income approach
By combining two properties they are worth more than they are individually. This constitutes the principle of:
d) Plottage/Assemblage
A property owner has a large hill behind the home which they are unable to build upon. To rectify the situation she would apply for a:
d) Variance
Someone knocks on the door and tells the person answering that they had better sell their home quickly before these minorities that are moving in the neighborhood makes their home worthless. This is a violation of:
a) Antitrust laws
The doctrine of prior appropriation in Colorado water rights laws means that:
b) The first one to put the water to beneficial use has the senior right
Familial status exemptions apply to:
d) Housing where at least 80% of the occupants are 55 years of age and older
The tax year begins on July 1st and ends on June 30th. Last year’s
taxes were $1654.00. Closing is set for November 5th. Closing is to the date of closing the seller owns the day. This is measured on a 365-day calendar year. Taxes are due in arrears. The prorated amount based on last year’s taxes would be:
d) Debit seller $ 580.03/ credit buyer $580.03
A BPO is not allowed if the purpose is for:
a) Financing
The main purpose of an ILC it is to discover:
b) Encroachments
When we discuss sections, townships, base lines and principle meridians we are utilizing:
d) Government survey
A broker does not renew his license when it is due on June 1. He does renew it on June 20.
During the period of time between June 1 and June 20 his license is considered:
b) Inactive
In an installment land contract, legal ownership is transferred:
b) When the loan is totally paid off
In an option contract:
c) The optionee is the buyer
Designated brokerage is delegated by:
c) Office Manual
The earliest a Foreclosure sale on an agricultural property may take place is:
b) 215 days
Tax paid in arrears for last year was $680.00, closing is May 10th. Based on a statutory year, where the seller owns the day of closing, the amount reflected on the closing statement as a credit to buyer would be:
a) $245.55
A deed is considered to have been transferred when:
a) The buyer accepts the transfer
Who is obligated by statute to pay the sales tax?
d) The buyer
A private lender is regulated by the laws of:
d) Usury
A property is purchased with an easement going through to the neighbor’s property. This easement will exist until:
b) The neighbor cancels it
Upon delivery of an inspection to the seller, the seller is obligated to:
c) Negotiate with the buyer what repairs will be completed
The lead based disclosure:
a) Allows the purchaser the opportunity to have the property inspected for lead based paint
You are allowed to refuse rental to:
d) An alcoholic who has a history of violence
A fiduciary agreement is a trust arrangement and relates to:
d) Agency
A fiduciary agreement is a trust arrangement and relates to:
d) Agency
Which of the following is not recognized part of a legal contract?
c) Broker clause
What is another term for a holdover clause?
a) Protection clause
I may or may not buy your home. I have:
d) An option contract
An appraiser is valuing a church property. They will typically utilize?
c) Cost approach
A home warranty is more apt to cover:
b) All real property of the owner
The city reported that an access ramp is under consideration, but not yet finalized for completion. The broker told the purchaser that the ramp was on the planning commissioner’s desk and would be put in eventually. The broker:
b) Misstated the circumstance
