Exam 3

Front 1

A mechanic's lien filed today would usually have priority over

Back 1

an unrecorded deed delivered a week ago.

Front 2

Following proper action by the local authorities the zoning on a vacant lot was changed from "commercial" to "residential" such an action is called

Back 2

down zoning

Front 3

A seller paid 7 points to enable the buyer of his property to obtain an FHA insured home loan. In calculating the income-tax consequences of this transaction the payment of the points

Back 3

may be used to reduce the amount of capital

Front 4

what is the maximum amount of payment a court may order lievied against the real estate recovery account for any one licensee?

Back 4

$100,000

Front 5

A real estate broker would normally look to the

Back 5

state department of corporations for matters involving illegal escrow procedures

Front 6

Community's master plan's basic purpose is to indiate existing and proposed

Back 6

all of the above
1. public facilities
2. public streets
3. industrial, residential and commercial districts

Front 7

the cost approach that tends to set the upper limit of value is known as the

Back 7

reproduction cost

Front 8

Lenders sometimes require borrowers to deposit amounts with the monthly mortgage payment to cover some costs related to the property. Which of the following would not be included and such impound? (1.payments for special assessments telated to the improvements of the public area 2. county/city property taxes 3. insurance premiums

Back 8

monthly interest

Front 9

value

Back 9

the relationship between a thing desired and a potential purchaser

Front 10

In a strong Real estate market lenders sometimes will make conventional loans up to 95% of the value of the property. Such a business practice is less risky because of the availability of

Back 10

private mortgage guaranty insurance

Front 11

as an element of value an individuals purchasing power

Back 11

plays an important role in affecting the value of real property

Front 12

Provisions in a rental agreement for residential real estate that make the security deposit nonrefundable are

Back 12

prohibited by statue

Front 13

under an exclusive agency listing an owner may sell his house and

Back 13

not be held liable for commission to the listing broker

Front 14

When does a fictitious business name statement filed with the county clerk in the county where the primary business is conducted expire?

Back 14

at the end of five years from Dec. 31 of the year in which it was filed

Front 15

who benefits economically from the effects of inflation

Back 15

debtors

Front 16

when a lender charges interest for a real estate loan

Back 16

it maybe augmented by a mortgage discount to increase the effective yield

Front 17

as it relates to subdivision the real estate commissioner is concerned with the details involved in an unconditional release clause because such a clausr is primarily concern with

Back 17

trust deed provisions

Front 18

lacking a contrary agreement a real estate broker has the right to cancel any authorization to sell

Back 18

at any time for any reason subject to possible civil liabilities

Front 19

when one endores a note does not wish to guarantee payment of the note, he would then endorse it

Back 19

without recourse

Front 20

this refers to an estate of inheritance or perpetual estate

Back 20

estate in fee

Front 21

Buyer Baker submitted an offer to purchase the real estate from owner Owens which was accepted by the seller. The contract was later breached by seller Owens. The broker in the transaction would be obligated to return any earnest money deposit to buy your baker unless?

Back 21

the broker had conveyed the deposit over to seller Owens before the breach of contract occurred

Front 22

a final estimate of the value of any single family residence is

Back 22

limited by the replacement cost of the building plus the value of the land

Front 23

a community's "master plan" is required by law to include basic planning studies covering all of the following except 1. recreational facilities 2. construction methods 3. proposed land uses.

Back 23

existing and proposed major public utility and transportation rates

Front 24

because the housing market deals with many different types of desires and needs it is said to be

Back 24

straified

Front 25

When a merchant applies for a loan to purchase a new building it is common for the lender to review the financial statements of the merchant's business. Which of the following conditions revealed by the financial statement but most likely cause the lender to make a favorable decision on the loan application?

Back 25

Fixed assets are ten times current assets (the large fixed asset indicates financial stability)

Front 26

of the following actions which one can require the prior written consent of the real estate commissioner before the action is legally binding?

Back 26

an amendment or modification of a deed which materially changes the rights of a buyer in a condominium transaction

Front 27

appraisal of a shopping center

Back 27

cost approach

Front 28

mortgage loan

Back 28

a loan collateralized with real estate

Front 29

elevation sheets of a construction plan usually provide which of the following information

Back 29

exterior sides of the structuresas they will appear after completion

Front 30

an architect often draw a plot plan for the purpose of

Back 30

guiding placement of construction and related land improvements

Front 31

the special forces influencing value are social ideals and standards, economic adjustments and government regulations NOT

Back 31

private restrictions

Front 32

depreciation

Back 32

loss in value from any cause

Front 33

physical deterioration

Back 33

wear and tear from use

Front 34

functional obsolescence

Back 34

is loss in value caused by unpopular floor plan

Front 35

economic obsolescence

Back 35

loss in value by zoning or government actions

Front 36

intestate succession

Back 36

dies with no will

Front 37

topography

Back 37

does not effect neighborhood change

Front 38

trustor is to beneficiary as

Back 38

mortgagor is to mortgagee

Front 39

replacement cost

Back 39

is the cost of aquiring an equally desirable substitute property

Front 40

the appraiser would use accrued depreciation in

Back 40

the cost method/cost approach

Front 41

the most detailed accurate method of estimating the cost new of an improvement

Back 41

is quantity survey method

Front 42

exclusive authorization and right to sell

Back 42

most common form of listing. broker gets comission no matter who sales the property

Front 43

bill of sale

Back 43

used to transfer title or interest in trade fixtures when selling a business

Front 44

Property taxes on residential real property are determined by the

Back 44

county assessor

Front 45

if athe owner of a property thinks that his property has been over assessed by the county assessor he would contact the

Back 45

assessment appeals board

Front 46

cash flow

Back 46

gross income - operation expense - debt service = cash flow GI-OE-DS

Front 47

broker jones who is not a member of any trade organization has been using a new advertising slogan. A new breed of Realtor. concerning this practice

Back 47

it is grounds for revocation or suspension of his real estate license.

Front 48

a broker is seeking investors to participate in a real estate investment. she may assure potential investors of limited liability for the debts to be incurred by forming any of the following except a

Back 48

general partnership

Front 49

a trust deed must be recorded within

Back 49

10 days

Front 50

one real estate advantage over investment securities is

Back 50

depreciation

Front 51

An escrow agent is authorized to

Back 51

call for funding of the buyer's loan

Front 52

Which of the following approaches to value is a separate evaluation of the land more important?

Back 52

Cost

Front 53

Which of the following documents is not normally recorded?

Back 53

A promissory note secured by a deed of trust

Front 54

capitalized income

Back 54

An indirect method of estimating depreciation

Front 55

An owner of real property who wishes to protect it against mechanics lien would file a notice of?

Back 55

Non responsibility

Front 56

To calculate the cubic footage of an attic with a cable roof

Back 56

Width x length divided by 2 x height equals cubic feet

Front 57

the purchasing power of the US dollar is

Back 57

price indexes

Front 58

According to a certain contract the buyer will be taken the property subject to the existing loan. Subject to most nearly means?

Back 58

The buyer will NOT be personally liable for the loan

Front 59

In a well planned residential community this contributes most to the maintenance of value

Back 59

Conformance to proper land use objectives

Front 60

Capitalization definition

Back 60

Establishes the value of an asset by dividing the annual net income by the desirable rate of return

Front 61

mortgage yield

Back 61

The effective interest return obtained from a first trust deed by an investor