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50 Cards in this Set

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A person owned a 4-plex and lived in one of the units. Which of the following would be allowed?
A) advertising "only Protestants apply," if the property is being sold as a "for sale by owner"
B) refusing to rent to a student from a different national origin
C) advertising on the sign in the yard that only certain nationalities need apply if the property is being sold as a "for sale by owner"
D) refusing to rent to someone based on race
The correct answer is "B - refusing to rent to a student from a different national origin " There are certain absolutes regarding discrimination & there are some exceptions to the Fair Housing Laws that allow a person LIVING in a ONE to FOUR family apartment complex to pick to whom they want to rent their property. Basically, the person can discriminate based upon six of the seven (NEVER BASED UPON RACE) if (1) they do not advertise discriminatorily. (2) They do not use a real estate agent to help with the rental. So looking at the answers "A" and "C" cannot be correct because of the advertising issue. and "D" cannot be correct either because it is RACIAL discrimination. The correct answer is "B" because "National Origin and "Race" are two different issues, and discrimination is allowed with this exception to the law.
Which of the following persons is usually NOT an agent?
A) a person who works for a multiple listing service
B) a property manager working for a management corporation
C) a broker employed by a seller
D) a person working for someone else under power of attorney
The correct answer is "A - a person who works for a multiple listing service " Just as with advertising agencies or accounting practices that specialize in serving the real estate market, Multiple Listing Services (MLS) are not usually staffed with "practicing professionals."
A broker listed a $75,000 property and the agreement read that the owner would NOT take more than a 25% cash offer. The broker produced a buyer who offered a full price 100% cash offer. Would the broker be due a commission?
A) Yes, because the broker produced a ready, willing and able buyer.
B) Yes, because the offer was reasonable.
C) No, because the broker did NOT produce a buyer that fulfilled all the terms of the listing agreement.
D) No, because the broker violated the listing agreement by writing a 100% cash offer.
The correct answer is "C - No, because the broker did NOT produce a buyer that fulfilled all the terms of the listing agreement. " "Ready, willing and able" doesn't just mean able to buy a property, but able and willing buy it on the terms the owner stipulates.
Which non-governmental organizations have their greatest investment in first mortgages on single family residences?
A) insurance companies
B) commercial banks
C) savings and loans
D) Federal Housing Administration
The correct answer is "C - savings and loans " Saving and Loans and Commmercial Banks both have large investments in this area of financing. Who has more has fluctuated over the past 10 years, but currently Savings and Loans have the greatest investments in first mortgages on single family residences.
Rich put in writing that Rich would sell Mark a strip of land between the road and Mark's property line for $3.15 per square foot. Rich agreed to transfer the land in 6 months. The 6 months passed and Rich refused. Does Mark have any recourse?
A) No, because Mark did not give consideration.
B) No, because Rich did not insist within the 6-month period.
C) Yes. If it is in writing it is enforceable.
D) Yes. Any time parties agree to a specified price, the court would require them to perform.
The correct answer is "C - Yes. If it is in writing it is enforceable. " Because it's in writing, Mark has recourse, though the outcome is not a foregone conclusion.
A single parent who receives child support payments is applying for a loan to purchase a house. The parent MUST disclose the child support to the lender if:
A) applying for an FHA or VA loan.
B) gross income is less than $25,000 per year.
C) the child support exceeds 50% of income.
D) the child support will be considered as a basis for the payments.
The correct answer is "D - the child support will be considered as a basis for the payments. " If the parent wishes this income to be included in the qualification process, its source must be disclosed. Otherwise, both the source and the amount of income may be omitted.
Which is true regarding the Federal Fair Housing Law?
A) The case of Jones vs. Alfred Mayer Company negated the effects of the law.
B) Aggrieved parties may appeal to HUD for assistance.
C) It preempts state laws concerning discrimination.
D) It would apply to commercial buyers.
The correct answer is "B - Aggrieved parties may appeal to HUD for assistance. " Persons who believe they've experienced housing discrimination and wish to file complaints must do so with HUD within one year of the event.
When a city changes the zoning of a particular area to encourage the city to grow in that direction, the city is exercising the right of:
A) police power.
B) eminent domain.
C) escheat.
D) subrogation.
The correct answer is "A - police power. " "Police power" refers to the broad rights of government to enact and enforce laws, including zoning regulations.
Which BEST describes the principle that a home maintains its highest value in a neighborhood with similar homes and similar type housing?
A) substitution
B) conformity
C) highest and best use
D) competition
The correct answer is "B - conformity " Conformity means that the more properties are alike in age, style and condition, the more they retain their value.
Which would be a contributing factor toward functional obsolescence?
A) corroded woodwork
B) having no permanent indoor bathtub
C) sagging floors
D) a central hallway located on the second story
The correct answer is "B - having no permanent indoor bathtub " Functional obsolescence has to do with the absence of features considered standard in today's market, such as bathtubs, bedrooms with closets, kitchens with space for refrigerators and so forth. It can also result from inadequacies caused by poor initial design. It does not have anything to do with deterioration of features such as poor woodwork or sagging floors.
Which of the following items would MOST likely be enforced by the forced sale of a property?
A) encroachment
B) easement
C) will
D) judgment
The correct answer is "D - judgment " A judgment is a court-ordered document and would not only be enforced in the event of a forced sale, it is often the reason behind it.
A house was sold on an installment land contract. There was no mention in the contract about a counter top microwave oven. Can the seller take the microwave oven?
A) No, because it is a fixture.
B) No, because it is real property.
C) Yes, because it is a fixture.
D) Yes, because it is personal property.
The correct answer is "D - Yes, because it is personal property. " In this case, the microwave fits the "pick it up and move it" characteristic of personal property. Had it been installed under the cabinets or as a range hood, however, it would most likely be considered a fixture.
A buyer purchased an option on a property. In this case:
A) The optionee would have to sue to get the money back if he does not exercise the option within the option time period.
B) The optionee would lose the money paid if he does NOT exercise the option within the option time period.
C) The optionor could sue the optionee to complete the option.
D) The optionor must purchase the property at any price another buyer would offer.
The correct answer is "B - The optionee would lose the money paid if he does NOT exercise the option within the option time period. " The money an optionee puts down is the price he pays for the privilege of taking time to consider whether or not he wishes to exercise the option. It is the optionor's to keep, regardless of the option-holder's decision.
Which of the following must be disclosed to be in compliance with Regulation Z (Truth in Lending)?
A) the cost of credit
B) closing costs
C) the tax bill
D) broker's commission
The correct answer is "A - the cost of credit " Regulation Z (Truth In Lending) creates a disclosure device only, and does not establish any set interest rates or required charges for credit such as closing costs or broker's commissions.
A broker entered into an agreement with a buyer to find the buyer a piece of property, whereby the buyer agreed to pay $5,000 for the broker's services. The broker found a DESIRABLE lot for the buyer, which was listed with another broker on an exclusive basis. The sale was consummated. Can the buyer's broker collect the $5,000 in commission from the buyer and also share in the commission of the listing broker without the permission of all parties to the transaction?
A) No. One can only receive commission from one party in each transaction.
B) No, because the broker had not obtained written prior permission from both the seller and buyer.
C) Yes, because both brokers had exclusive agreements with the buyer and seller.
D) Yes, because the two brokers can decide to split the commission however they want to.
The correct answer is "B - No, because the broker had not obtained written prior permission from both the seller and buyer. " The broker is entitled to share in the listing broker's commission, but only if permission is obtained before introductions and negotiations begin. Once the transaction is in process, the broker can collect only the $5,000 buyer's agency commission.
In which of the following cases would an estoppel certificate be needed?
A) The holder of a mortgage loan sells it, and the buyer of that loan wants the mortgagor to acknowledge the full amount of the debt still owed.
B) The holder of a mortgage loan wishes to block the assumption of that loan because of the low interest rate on that loan.
C) A developer has defaulted on payments of a mortgage taken back by the seller of the land in question.
D) A developer wishes to purchase only part of a parcel of land but wishes to have the right to purchase the rest of the parcel if houses built on the first part sell well.
The correct answer is "A - The holder of a mortgage loan sells it, and the buyer of that loan wants the mortgagor to acknowledge the full amount of the debt still owed. " Basically, by issuing the estoppel certificate, the bank attests to the accuracy of the borrower's remaining debt and certifies that it will not at some future point attempt to change that position to its advantage.
Under which of the following circumstances is the broker due a commission?
A) The broker procures a buyer who can meet the seller's terms and conditions.
B) broker produces an offer with earnest money for more than the listed price of the property.
C) The broker produces an offer with earnest money.
D) The broker produces an offer with earnest money that is also signed and dated.
The correct answer is "A - The broker procures a buyer who can meet the seller's terms and conditions. " In this case, the broker produced a ready, willing, and able buyer, so he would be due a commission.
Which of the following items would be LEAST important in a property management agreement?
A) the manager’s compensation plan
B) the manager’s marketing role
C) rental price of each unit
D) when and in what form the property manager will report to the owner
The correct answer is "C - rental price of each unit " Management agreements are negotiated on the level of responsibilities assumed by the manager, and the cost per rental unit seldom has a direct bearing on those responsibilities.
A plumber did some work on a property and was NOT paid. He discovered that there were already several liens against the property. He then discovered that the owner had another piece of property, which was free from encumbrances. Which of the following would be true?
A) The mechanic's lien can be placed on any of the owner’s property.
B) The mechanic's lien can only be placed on the property where the work was done.
C) The mechanic's lien can be placed on the other property if the other property was in another state.
D) The mechanic's lien is a general lien and can therefore be placed an any real or personal property of the owner.
The correct answer is "B - The mechanic's lien can only be placed on the property where the work was done. " Unfortunately for the plumber, a mechanic's lien may only be placed on the property on which the work was done. And, since liens are prioritized in the order they're filed, his claim goes to the end of the line.
Which of the following is true regarding the useful life of a property?
A) You can NOT extend the physical life of a property by superior maintenance.
B) The physical life is generally greater than the economic life.
C) The economic life is generally greater than the physical life.
D) The physical life is equal to the number of years the property is economically viable.
The correct answer is "B - The physical life is generally greater than the economic life. " This is primarily an accounting concept used for tax and valuation purposes. For example, an office building could have reached the end of its useful life and, theoretically, have been worth more as scrap than an existing structure. However, it may still suit the needs of its owner who would prefer to continue using it in its current state rather than absorb the high costs of demolition and new construction.
A city council zoned a two-block area so that only Spanish style homes could be built because of the Spanish heritage in the area. What type of zoning would this be?
A) directive zoning
B) aesthetic zoning because of architecture
C) cultural zoning
D) bulk zoning
The correct answer is "B - aesthetic zoning because of architecture " As the name implies, aesthetic zoning establishes visual consistency in an area. In addition to building style, it can also include features such as landscaping styles and prohibition of outdoor features such as fences or sports courts and the like. While municipalities may impose these restrictions, especially in historic areas, they're much more commonly encountered in subdivisions in the form of restrictive covenants.
A loan with a balance of $21,000 prior to the June 1 payment was figured with interest at 11% annually and monthly principal and interest payments of $571.80. There was a 1% pre-payment penalty. The owner paid the June 1 payment and then paid off the balance of the loan. What was the pre-payment penalty?
A) $204
B) $206
C) $210
D) $215
The correct answer is "B - $206 " Start with the loan balance of $21,000, and multiply it by 11% to get the annual interest paid of $2310. Divide that number by 12 to get the monthly interest amount of $192.50. Subtract that amount from the total principal and interest payment of $571.80 =$379.80 principal paid on June 1st in arrears for the month of May. Subtract $379.30 from the prior loan balance of $21,000, for a total of $20,620.70, and 1% of that is 206.
A straight note for $13,400 was executed at 8% annual interest. If the borrower actually paid $3,752 in interest, how many months did he take to pay it off?
A) 32
B) 36
C) 39
D) 42
The correct answer is "D - 42 " At 8%, the annual interest on $13,400 is $1,072 or $89.33 per month. Total payments of $3,752 divided by the monthly payment equals forty-two months.
A property was assessed at 25% of market value. The rate was $5 per $1,000. If the homeowner actually paid $150 in taxes for the year, what was the total value of the property?
A) $30,000
B) $82,500
C) $120,000
D) $133,000
The correct answer is "C - $120,000 " Begin the calculation by dividing the $150 paid in taxes by the 5. Then multiply the result of 30 times the $1,000 assessment rate for a first value of $30,000. Then, since the assessed value is 25% of market value, this figure is multiplied by 4 for an actual value of $120,000.
A 3-year straight note was obtained at 10% per year. Interest paid the first two years was $4,200. The loan on the house was 75% of the value. What was the total value of the property?
A) 21,000
B) 28,000
C) 31,040
D) 38,750
The correct answer is "B - 28,000 " If two years' interest payments equal $4,200, then one year's equals $2,100. At 10%, that means the principal balance is $21,000. Additionally, since the loan is for 75% of the home value, divide $21,000 by 0.75 for a total value of $28,000.
A tenant agreed to lease a commercial space for $2,000 per month. The tenant needed a sign to advertise the business and requested that the owner provide a sign. The owner agreed to erect a sign but required in return that the tenant sign a 5-year lease and pay rent of $2,200 per month until the cost of the sign was recovered. At the termination of the lease, could the tenant be allowed to take possession of the sign?
A) Yes, because is was over a 3-year lease.
B) Yes, because the sign was a trade fixture and could be removed prior to the termination of the lease.
C) No, because it was installed by the owner and therefore it is the owner's real property.
D) No, because tenants can never remove any item that has been attached to the property.
The correct answer is "C - No, because it was installed by the owner and therefore it is the owner's real property. " The issue comes down to one of relative permanence. If the renter had asked the owner to provide portable "sandwich" style boards, it could be argued that the renter paid for them through the longer lease and higher rent and was entitled to keep them. However, signs are permanent features affixed to the property. Since it cannot be picked up and moved intact, it becomes part of the property and thus belongs to the owner.
The final process in appraising a duplex would be:
A) site analysis.
B) reconciliation.
C) state the problem.
D) market data comparisons.
The correct answer is "B - reconciliation. " Reconciling estimated values with final values is the last step in the appraisal process.
Which BEST characterizes the difference between zoning laws and building codes?
A) Zoning laws deal with use; building codes deal with building materials.
B) Building codes deal with use; zoning laws deal with building materials.
C) Building codes deal with construction materials; zoning laws do NOT.
D) Zoning laws deal with construction materials; building codes do NOT.
The correct answer is "A - Zoning laws deal with use; building codes deal with building materials. " Just as the name implies, building codes deal with the specifications and quality with which buildings are constructed. Zoning determines where, of what size, and for what use those buildings may be sited.
Which of the following covenants would NOT be found in a general warranty deed?
A) seisin
B) restrictive ownership
C) further assurance
D) quiet enjoyment
The correct answer is "B - restrictive ownership " General warranty deeds document that the title is transferred to the new owner free of all claims and restrictions.
The rights of a landowner to use waters of an adjacent lake or ocean are known as:
A) riparian rights.
B) zoning rights.
C) littoral rights.
D) livery of seisin.
The correct answer is "C - littoral rights. " Again, while both riparian and littoral rights concern water, littoral rights specifically apply to nonmoving bodies of water, like lakes and oceans. Zoning and seisin both deal with land control.
A claim or interest revealed by a title search is called a:
A) cloud on title.
B) lien.
C) judgment.
D) lis pendens.
The correct answer is "A - cloud on title. " It's easy to remember a cloud on a title as something marring the clear title, like a cloud in the sky marring an otherwise clear sky. These terms are all related; however, a lis pendens is the notification that a lien might be placed on a title, or, in other words, that there is a CLOUD on the title. (A judgment is another type of lien against a property, issued by a court.)
When the amortized payment of a mortgage remains constant over the period of the loan but leaves an outstanding balance to be paid at the end, this payment is called:
A) an alienation payment.
B) an escalation payment.
C) a balloon payment.
D) an acceleration payment.
The correct answer is "C - a balloon payment. " In a balloon loan, the interest and principal are paid on an equal basis, until the final payment (the balloon). This differs from the other payments: an acceleration payment, which makes the whole debt due if the borrower defaults; a satisfaction, in which the debt is paid in full on a mortgage; or an alienation, which provides that the lender can make the debt due, or allow the buyer to assume the loan on the sale of a property.
The process in which boundaries are measured and land areas determined is called:
A) an appraisal.
B) an assessment.
C) a survey.
D) an involuntary lien.
The correct answer is "C - a survey. " A survey is the process that measures boundaries and land areas. This is often confused with appraisal, which APPRAISES the value of something (often a property) or assessment, which imposes TAX on something. A lien is a financial encumbrance.
An estimate of the value of something, usually a property, is known as:
A) an appraisal.
B) an assessment.
C) a survey.
D) a lien.
The correct answer is "A - an appraisal. " An appraisal is the process that APPRAISES the value of a property. Don't confuse this with a survey, which measures boundaries and land areas; or an assessment, which imposes TAX on something. A lien is a financial encumbrance.
Which is NOT a purpose of the Truth in Lending Laws (Regulation Z)?
A) to provide a competitive environment for mortgage lenders
B) to allow the buyer to shop around for credit
C) to help buyers be aware of the total cost of credit
D) to set the interest rates
The correct answer is "D - to set the interest rates " Regulation Z includes the disclosure of interest rates, but not the amount. As long as it's disclosed, lenders are free to charge whatever rates they choose, up to the state limits.
A borrower who had repaid a portion of the original loan could again borrow the funds without rewriting the original terms of the note under which of the following types of mortgages?
A) package
B) blanket
C) wraparound
D) open-end
The correct answer is "D - open-end " An open-ended mortgage functions sort of like a perpetual equity line of credit, but without the costs and higher interest generally associated with opening a separate account. The down-side, of course, is that it can tempt some homeowners to constantly undermine their built-up equity.
A buyer and seller entered into a contract for the sale of a house. The buyer applied for and was approved for a loan. At the last minute the seller backed out of the sale. Is the broker due a commission?
A) No, because the buyer did not meet all the personal requirements of the seller.
B) No. Since the sale did not close, the broker did not perform.
C) Yes, because the buyer was able to perform all of the requirements in the contract.
D) Yes. Anytime a contract is signed, the broker has performed and is due a fee.
The correct answer is "C - Yes, because the buyer was able to perform all of the requirements in the contract. " It is the broker's responsibility to secure the buyer; it is the seller's responsibility to perform as promised. The broker held up his end of the bargain and is therefore entitled to his or her commission.
Vicky is a real estate licensee whose friend Thomas is a home inspector with an excellent reputation. When Vicky has a buyer interested in a property, she sends them to Thomas, who pays her brokerage a $50 referral fee. Is this a legal practice?
A) Under no circumstances.
B) Yes, with the permission of Vicky's broker, and if the buyer knows of and agrees to the arrangement.
C) Yes, if the money is paid to Vicky through the broker-in-charge.
D) Yes, because small amounts of $50 or less are viewed as "honorariums," not fees or commissions.
The correct answer is "B - Yes, with the permission of Vicky's broker, and if the buyer knows of and agrees to the arrangement. " Real Estate License Laws require that all elements in a transaction be open and above-board. There can be no hidden deals or secret transactions between any parties. While the Real Estate Settlement Procedures Act does prohibits licensees from receiving "Kickbacks" from mortgage lenders for referrals, there is not any law that prohibits licensees from receiving referral fees from service providers with full disclosure to all parties.
A salesperson did a CMA and listed a property for $68,000. Soon thereafter, another property that was comparable to the listed property sold for $75,000. Which of the following BEST describes what the salesperson should do?
A) Not tell the owner since a mistake had obviously been made in the CMA.
B) Not tell the owner because admitting the mistake would get the salesperson in trouble with the broker.
C) Tell the owner that another had sold for $75,000.
D) Tell the owner because if it sells for $75,000 the commission would go up.
The correct answer is "C - Tell the owner that another had sold for $75,000. " One of the highest obligations of licensees is honesty to all parties. Moreover, while not including the property in his original comparables may have been an oversight, the broker might also have considered it over-priced until the market proved him wrong. The point is, real estate pricing is always a moving target and brokers and salespeople do best when they acknowledge that fact.
A $100,000 property sustains $60,000 in fire damage, but is only covered for $40,000. Under the terms of the insurance policy's 80% coinsurance requirement how much will the insured receive?
A) $60,000
B) $48,000
C) $40,000
D) $30,000
The correct answer is "D - $30,000 " To make this calculation, begin by determining the maximum benefit the homeowner could receive under the 80% requirement, which is $80,000. Next, divide the $40,000 of actual coverage by the 80% number and calculate it as a percentage. The result is 50%, and 50% of the $60,000 loss is $30,000. Had the homeowner maintained the 80% coverage, he or she would have been covered for the entire $60,000 loss.
What do you own if you have an undivided interest in common areas and a separate interest in a certain unit of an industrial, commercial or residential building?
A) A cooperative apartment.
B) A limited partnership.
C) A community apartment project.
D) A condominium.
The correct answer is "D - A condominium. " "Undivided interest" means that a person owns a share of property that can't be separated from the whole. In other words, if a condominium project has fifty owners, each unit owns one-fiftieth of the common property.. but the owners of, say, unit A, can't decide to sell their share so they can go on a trip. Although usually associated with residential living, some industrial and commercial complexes also use the condominium structure.
Which of these activities may a California real estate licensee engage in?
A) Selling a business.
B) Negotiating the sale of a Nevada ranch in California.
C) Negotiating the sale of a note for compensation.
D) All of the above.
The correct answer is "D - All of the above. " Unlike many other states which restrict licensees to the literal buying and selling of properties, California agents may also engage in allied activities, including the sale of notes and businesses as well as out-of-state properties, so long as the negotiations for such properties occur in-state.
What does the California Subdivided Lands Act control?
A) The sale of improved building lots in the state of California.
B) The sale of unimproved lots within the state.
C) Any parcel in a subdivision, whether within California or out-of-state.
D) The sale of improved building lots outside of California.
The correct answer is "C - Any parcel in a subdivision, whether within California or out-of-state. " The Subdivided Lands Act, intended to ensure full disclosure, truthful representations and compliance with codes and laws, applies to any property offered for sale to California residents, regardless of where the property is actually located.
A grant deed has been issued to Richard Bowtree that reads, "Richard Bowtree, et ux." What does "et ux" mean?
A) And others.
B) And wife.
C) And without further warranties.
D) And, without further encumbrances.
The correct answer is "B - And wife. " An old term usually found on deeds, tax records and such, it has been supplanted by more modern forms such as tenancy in common and community property that recognize husband and wife as individuals.
John has purchased a just completed, high-end, fifty-unit rental building. He plans on three year leases at an average rental of $2,000 per month with the first and last month's rent due in advance. For tax purposes, he treats the receipts for the first month's rent (50 units x $2,000 = $100,000) as income for this year, but doesn't declare the portion representing the last month because its technically income that won't be recognized for three years. Is acceptable under IRS guidelines?
A) Yes, under the rules it's considered deferred revenue.
B) Yes, the IRS would view it as tax-deferred recapture.
C) He has to declare the portion representing the last month, but can defer paying the tax on it.
D) No, any rental income is due in the year it's received.
The correct answer is "D - No, any rental income is due in the year it's received. " Rental income is ordinary income. And, while expenses associated with running and maintaining the building can be deducted, there are no special provisions or treatments regarding cash flow from rental units.
Which of these investment structures is considered the best and most popular form of real estate syndication?
A) A limited partnership.
B) A joint venture.
C) A real estate investment trust.
D) A corporation.
The correct answer is "A - A limited partnership. " A limited partnership consists of "general partners" who actually run the business and are responsible for its actions and liabilities and "limited partners" who share in profits and tax benefits but incur no liabilities beyond their initial investment. Thus, it combines the profit and tax advantages of real estate development with limited risk.
Rebecca owns a commercial lot of 16,500 square feet and a 150 depth on each side. She wants to expand her store and two identical lots are available on either side of her property. Each of these lots is also 150 feet in depth, but contain a total square footage of 4,950 square feet each. If Rebecca buys both lots and combines them with her original, how many linear of frontage will she have?
A) 143 linear feet.
B) 159 linear feet.
C) 176 linear feet.
D) Not enough information is provided to make the calculation?
The correct answer is "C - 176 linear feet. " First, arrive at the frontage for Rebecca's original parcel. Since length times width equals square footage… square footage divided by one know side equals the length of the other. In this case, 16,500 divided by 150 = 110. Since the other two lots also have a depth of 150 feet, their frontage equals 4,950 divided by 150 or 33 feet each. 110 plus two times 33 = 176.
What is the "gross rent multiplier" formula?
A) A property's gross rental income divided by its market value.
B) The sale price of a property divided by its gross rental income
C) A property's gross rents divided by its sale price.
D) None of the above.
The correct answer is "B - The sale price of a property divided by its gross rental income " This is used as a quick, short-hand guestimate for a property's approximate value. Sometimes this calculation produces a positive cash flow, other times a negative one... and one is not necessarily better than the other. Far more detailed calculations are necessary to determine a property's real market value and attractiveness as an investment.
Which of the following activities requires a real estate license in California?
A) A person selling his or her own home.
B) A trustee overseeing the sale of a foreclosed property.
C) A real estate secretary who hosts open house weekends.
D) A person who manages the apartment complex he or she lives in.
The correct answer is "C - A real estate secretary who hosts open house weekends. " As a general rule, what creates the need for a real estate licenses is engaging in any part of the real estate transaction processes for third parties for compensation.
Which of the following is a duty of the real estate commissioner?
A) Investigating complaints filed by the public against a licensee.
B) Approving or disapproving public reports for subdivisions.
C) Qualifying applicants for real estate licenses.
D) All of the above.
The correct answer is "D - All of the above. " The Department of Real Estate exists to ensure the public is protected and well-served by all segments of the real estate industry. Accordingly, assuring professionalism among licensees through screening and testing... providing an open channel for filing complaints... and making sure builders and developers offer products that meet code and live up to representations form the department's and commissioner's essential mission.