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86 Cards in this Set
- Front
- Back
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A buyer's broker has a client interested in buying a parcel of land that is presently listed with another brokerage. The buyer broker has a duty to: |
Obtain the lowest price for the buyer
Obtain the highest price for the seller Negotiate the best deal for both parties obtain the best deal for the brokerage company |
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A mortgage loan that calls for payments of interest only until the loan matures is called |
Term loan
Amortized loan Purchase-money loan Installment loan |
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On a settlement sheet, what is usually true |
Seller debuted for pre-paid insurance Seller credited for interest to date Buyer credited for unpaid taxes Buyer credited for pre-paid insurance |
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The use of a property that was lawful at the time of enactment but is now in violation of a zoning regulation is an example of: |
Nonconforming use
Exclusionary zoning Variance Spot-zoning |
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Which of the following is not a duty of a property manager to the owner? |
Maintain current rent comps
Maintain current sales comps Determine the vacancy rate in the area Maintain records of expenses for 5 years |
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Seller Stu and Buyer Andy have signed and executed a proper sales contract that contains no prohibitions. If buyer Andy wants to transfer his rights under the contract to a third party, Andy should exercise? |
Subrogation Subordination Assignment Attachment |
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When a salesperson and broker are in court to settle a dispute this would most likely be called: |
Mediation Arbitration Litigation Interpleader |
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The value placed on land and building by a governmental unit for use in levying annual real estate taxes is called the |
Assessed value Market value Appraised value Economic value |
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Notice of foreclosure under Deed of Trust is given by whom? |
Trustor Trustee Beneficiary Sheriff
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A contract has been signed but title has not yet passed. This is called |
Executed Executory Recorded Estopped |
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A property produces an income of $10000 per year. Management expenses are $700 annually. Monthly heating costs are $92. If the property is valued at $80000, what is the owner's approximate overall capitalization rate? |
7 % 8% 10% 14% |
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Which best describes fiduciary duty? |
Fair and adequate compensation Diligence and care to a client Convenience to a client Convenience to a customer |
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The most effective appraisal method to use when appraising a church would be |
Income Cost Highest and best use Market |
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You own a duplex and rent one unit. Which of the following is true? |
-you may deduct the expenses from both -you may deduct the expenses only for the rented one -you may deduct the expenses only for the unit owner occupied -you may not deduct the expenses for either unit |
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a house with a basement apartment that rents for $500 per month, due on the first of the month, is sold. If closing is on November 19, of the following statements about proration of the current month's rent is correct? |
the buyer owes the seller $200 the buyer owes the seller $300 the seller owes the buyer $200 the seller owes the buyer $300 |
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when a wraparound is created who is responsible for the underlying loans? |
vendee vendor trustee beneficiary |
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Wilma sells her property for $60,000. Commission is 7% and closing costs are figured to be $4000. What is the net to the seller at close of escrow? |
51,800 55,800 56,000 58,000 |
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a listing agreement must be signed by the |
owner owner and salesperson salesperson buyer |
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J purchases and individual cooperative housing unit with a large down payment, J will receive all of the following except |
a proprietary lease shares of stock corporate bylaws a special warranty deed |
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a parcel of property that measures 1/2 mile by 1/2 mile is equal to: |
160 acres 320 acres a half section a township |
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the HUD 1 form must be used in which of the following at close of escrow? |
home purchase with seller financing home purchase with conventional financing home purchase for cash home purchase by assumption |
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requirements for conveying title to real property include |
delivery of the deed recording of the deed signing of the deed by the lender acknowledging of the deed by the grantee |
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in order for a junior lien to have priority, the primary lienholder would sign which of the following |
subrogation defeasance subordination habendum |
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a licensee is required to disclose the presence of lead-based paint if the property was built before |
1988 1978 1989 1992 |
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when can an owner of a single family residence depreciate the property for tax purposes? |
when the property is sold if it is owner occupied if the property is a rental if it is held for 27 1/2 years |
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what type of listing would give the broker least protection |
net exclusive right to sell exclusive agency open |
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on a closing statement, the amount of cash a buyer needs to close a real estate transaction is best defined as the |
buyer's total debits (charges subtracted from the sellers' total credits buyer's total credits subtracted from the buyer's total debits (charges) seller's equity purchase price, less any financing costs, plus the buyer's and the seller's total expenses |
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on a closing statement, the amount of cash a buyer needs to close a real estate transaction is best defined as the |
buyer's total debits (charges) subtracted from the seller's total credits buyer's total credits subtracted from the buyer's total debits seller's equity purchase price, less any financing costs, plus the buyer's and the seller's total expenses |
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RESPA would cover which of the following loans? |
commercial 1-4 plex residential apartment building vacant industrial land |
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in suing the cost approach of appraisal all of the following would be considered in determining the replacement cost except: |
comparative survey replacement cost depreciation capitalization rate for that type of investment |
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what are considered to be the four elements of value in appraisal? |
land, capital, profit, labor location, profit, desire, highest and best use location, situs, labor, profit demand, scarcity, utility, transferability |
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a handicapped person is leasing a house that requires modification. which of the following is true about the modifications? |
the lessor may forbid handicapped modifications the lessor can require the lessee to reasonably restore the property at the end of the lease the lessor must pay for the modifications the lessor can increase the rent due to the risk of the handicapped person |
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which is the annual rate of interest on a 52,200 loan if the first semiannual interest payment is 3,524? |
11-3/4% 13-1/2% 14-1/4% 15-3/4% |
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a property has an appraised value of 50,000. a loan is granted on the property for 75% of its appraised value. the loan is spread over 25 years at an interest rate of 9% per year. if the amount paid toward the principal is to remain constant throughout the life of the loan, what is the first monthly payment? |
125 281 406 500 |
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when a person takes over the rights of a previous adverse possessor, it is known as |
tacking on sub-letting prescription license |
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a lease that provides for periodic increases of rent at regular intervals is called a |
graduated lease percentage lease yearly lease net lease |
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regarding residential owner occupied property, which of the following would normally be deduction on a Federal Income Tax return? |
insurance principal payment loan interest routine maintenance |
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a type of loan where the mortgagee pays the mortgagor of the property a monthly income is called? |
reverse annuity open-end flexible loan blanket morgage |
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which of the following would a broker not give in a normal real estate transaction? |
closing costs abstract of title and opinion fiduciary services pro formula |
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regarding closing statements, debit is |
a proration an adjustment for an expense paid outside of closing an expense a refund |
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a husband owner property that was inherited from his uncle before marriage. after marriage, the husband sells the property, which of the following is true? |
signature of the wife is not required. signature of wife is required because the property is owned by the community the wife must sign a disclaimer deed before the husband can sell the husband cannot sell without the wife's permission |
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if a listing contract contains the clause "time is of the essence"the agent must deliver an offer to the seller? |
within 24 hours within 48 hours as soon as possible upon request |
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a buyer enters into an agreement that gives him the opportunity to buy for an agreed upon price and terms, but not the obligation. the buyer has entered into a |
sale leaseback right of first refusal lease option |
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which if the transactions would not be covered by regulation Z? |
FHA loans home loan in excess of 207,000 non-real estate loans up to 25,000 seller carryback financing |
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RESPA would provide for all of the following except |
good faith estimate HUD booklet a limit on loan points restriction on kickbacks |
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a broker relationship to a seller most likely be |
general special implied ostensible |
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you build a 150,000 house in a 50,000 area. the builder forgets to install closets in the house. the lack of closets is best defined as which of the following? |
principal of regression physical depreciation functional obsolescence economic depreciation |
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a portion of a deed that indicates what the grantee will "have and hold" is called? |
estoppel clause fee simple clause granting clause habendum clause |
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who could not write a purchase contract? |
escrow officer attorney for sale by owner business broker |
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a salesperson shows 3 houses to a potential buyer and later says , "this is the best deal you can get, I'd take it if I were you". what type of agency was most likely created? |
expressed implied exclusive exclusive agency |
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what is the effect of a counter offer on the original offer? |
amendment rejection continuation limitation |
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once a purchase contract is signed, the purchaser is said to have what kind of title? |
equitable legal marketable adverse |
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K and R bought a house as tenants in common. If K dies, which of the following statements is correct about ownership of the house? |
it automatically becomes tenancy in severalty it is divided, with 50% held by R and 50% to K's estate R holds fee simple ownership in K's share of the property R holds a life estate ownership in K's share of the property |
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a property drawn property management agreement would include all of the following except? |
legal description of the property management fees manager's duties duration of term |
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A makes an offer to B. B makes a counter offer back to A. who is the offeree? |
A B A and B neither A nor B |
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a lot 100 ft x 100 ft has a 25 ft setback in the front, a 30 ft setback in the rear, and 10 ft side yard setback. what is the buildable area? |
1800 sq ft 3600 sq ft 4500 sq ft 10, 000 sq ft |
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the proper entry on a closing statement regarding the property taxes, which have not been prepaid, would |
credit the broker and debit the seller credit the buyer and debit the assessor debit the seller and credit the buyer debit the buyer and credit the seller |
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what is the fine for the first violation of the federal fair housing laws? |
5,000 10,000 15,000 2,000 |
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an owner sells a property on which a farmer lives and works, as a tenant. when the property is sold, who gets the cops? |
the seller the buyer the farmer no one |
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property A is encroaching on property B. property B waits too long to take any action. if property A obtains an easement it would most likely be? |
necessity prescription in gross implied |
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Q offers to buy T's house for 120,000 with a 20,000 down payment. the balance is to be paid by way of a three-year contract for deed with interest at 12% per year. if monthly payments are interest only, how much simple interest will Q pay during the term of the contract? |
4,000 12,000 28,000 36,000 |
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when a listing is taken the owner says he wants to net 20,000 upon closing.an offer comes in that will net the owner 15,000, what should the broker do? |
present the offer not present the offer broker should make a counter offer broker may accept the offer |
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what would an advantage to the lessee in a net lease? |
lessee could deduct mortgage interest on his income taxes lessee could deduct property taxes on his income taxes lessee could deduct building depreciation on his income taxes lessee would not pay utilities |
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L owns an 8 unit apartment building and lives in one of the units. L has a strict set of rules for L's units. in this situation. according fo the federal fair housing amendment od 1988, L may enforce the rule which states |
no pets allowed including seeing eye dogs and support animals the security deposit will increase an additional 100 for each child under 16 years of age rentals are only for married couples with children handicapped tenants who modify their units must agree o restore the premises at their own expense at end of tenancy |
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a minority buyer asked to see a type of house in a certain area. you should do which of the following |
show him several houses in all areas how him houses only in that one area ignore his request mainly concentrate in minority areas |
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if a loan is assumed, what happens to the ALTA policy? |
must buy a new policy policy is cancelled still in effect policy is optional |
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the increase in the cap rate causes value to |
decrease increase remain the same stabilize |
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if a 17 year old person enters into a contract to purchase real property, the contract is |
voidable by the seller unenforceable by either the buyer or the seller void because the buyer is a minor voidable by the buyer |
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A lists his property with a broker. A buyer tells the broker that he is also buying the two properties next door and tells the broker not to tell the seller. which of the following is true |
the broker may not tell the seller because it was told in confidence it would be the broker's decision the broker would be obligated to tell the seller due to the fiduciary relationship the buyer may take legal action against the broker if he discloses |
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a mortgage lien is released from the records when |
the mortgage is duly recorded recording a reconveyance deed recording the satisfaction of mortgage the loan is fully repaid |
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after gathering all appraisal data, the appraiser would |
determine highest and best use correlate the data average all three approaches establish gross rent multiplier |
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Lue sells a property to Bud under an oral agreement for 100,000. Bud pays Lou 50,000 and agrees to pay 25,000 each year for two years. Bud makes substantial improvements in the property and makes the first 25,000 payment on time. one month before the final 25,000 payment is due, Lou declares the contract to be void. in this case, which of the following statements is correct |
the contract can be overturned as long as it is done before the last payment is made the contract can be overturned because it was oral the contract cannot be overturned because the statute of limitations has expired the contract cannot be overturned due to the actions of the parties |
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the legal capacity of a person to enter into a real estate contract is affected by all of the following except |
age sobriety literacy mental incompetence |
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familiar status as defined by the federal fair housing act as amended in 1988 includes |
any person residing with a parent or guardian families with children under the age of 18 families with dependent children regardless of their age families that consist of at least one person 55 years of older |
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1866 civil rights act prohibits discrimination by |
race race, religion race, religion, sex race, religion, sex and national origin |
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when a tenant moves out because the landlord will not maintain the property in a livable manner, this is called |
constructive eviction actual eviction forcible detainer writ of restitution |
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at a general meeting of a broker's trade association, several members begin talking about fees and business practices. this sort of activity could be considered? |
a violation of the sherman anti-trust act activity prohibited by the better business bureau an appropriate activity with the association a good way for brokers to learn about the different practices of other companies |
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standard title insurance policy would be for the benefit of |
grantee grantor beneficiary trustee |
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which of the following processes is not part of a deed of trust foreclosure? |
constructive notice 90 day reinstatement period notice to all listed creditors deed of reconveyance |
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two real estate licensees have a dispute that is handled outside the court. it is |
arbitration lis pendens litigation interpleader |
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a mortgage that covers a number of parcels of real estate property and that may provide for the separate sale of each parcel is |
a blanket mortgage an open-end mortgage a wraparound mortgage a partially amortized mortgage |
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a broker lists a property with provisions for subagency. another broker accepts the term of the listing broke's offer to cooperate. the cooperating broker is acting as |
agent to the buyer agent to the seller subagent to the seller not an agent of either party |
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place the liens in priority highest to lowest |
property taxes, assessments, IRS IRS, property taxes, assessments IRS, assessments, property taxes property taxes, IRS, assessments |
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who gives instructions to sign the deed of reconveyance? |
trustee beneficiary mortgagee mortgagor |
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in a closing statement, a carryback is a |
debit to buyer and seller credit to buyer and seller credit to buyer debit to buyer |
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a management agreement between an owner and an agent states that the management fee will be 7% of the first 200,000 of the annual gross collected rent and 8% of the collected rent that exceeds that amount. if last year's gross rent collection totaled 222,500, the management fee was |
15,800 16,688 7,575 17,800 |
