Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
198 Cards in this Set
- Front
- Back
|
What does the civil rights act of 1866 prohibit?
|
Race Discrimination
|
|
|
What does the federal fair housing act of 1968 prohibit
|
Race, Color, Creed, national Origin
|
|
|
What does the sherman Antitrust Act prohibit
|
Price Fixing
|
|
|
What rule did the Real Estate Settlement Procedures Act create?
|
All costs must be disclosed
|
|
|
If a designated broker is a member of NAR, does his agent have to be also?
|
Yes
|
|
|
What sign must be displayed in all real estate brokerages?
|
Fair Housing and Equal Opportunity Sign
|
|
|
In order for an adverrtisement to not be considered a blind ad, what must it contain?
|
Employing Brokers Name
|
|
|
The terms "Team or Group" may not refer to what?
|
Trade Name (DBA)
|
|
|
If the terms "Team or Group" are used in an ad, what must they refer to?
|
Sales Agents
|
|
|
Every Action that the salesperson makes is done under whos name?
|
Designated Broker
|
|
|
What words are subdivision ads never allowed to use?
|
Endorsed by the commissioner - No Risk
|
|
|
When is a property manager required to hld a real estate license?
|
More than two properties
|
|
|
What type of lease and contract do not have to be in writing
|
Under 12 months or Broker to broker
|
|
|
In a sale and leaseback, who owns the property?
|
Lessor
|
|
|
What type of lease has the tenant paying a fixed rent?
|
Gross Lease
|
|
|
What two things does an agreement for sale contain in one document?
|
Security, Promissory Note
|
|
|
What type of lease is used for land only?
|
Ground Lease
|
|
|
What is it called when you transfer your right and interest to another?
|
Assignement
|
|
|
What are security deposits treated as?
|
Trust Money
|
|
|
What is a Broker who works for the designated broker of a company called?
|
Associate Broker
|
|
|
Who does the term agent refer to?
|
The salesperson
|
|
|
When does personal property change to real property
|
What it's affixed
|
|
|
What is an attached item called when it changes from personal property to real property?
|
A Fixture
|
|
|
What is used to transfer personal property?
|
Bill of Sale
|
|
|
What type of value approach is being used when land is appraised seperate from improvement?
|
Cost approach
|
|
|
what is personal property called when used in a business or trade and attached to real estate?
|
Trade Fixture
|
|
|
Who owns trade fixtures
|
Tennant during lease
Landlord after lease |
|
|
What is required to identify and legally convey any interest or estate in real property?
|
A legal description
|
|
|
How many square feet in an acre?
|
43560
|
|
|
What does ADA cover if property has less than or equal to 25 employees?
|
Hiring costs, inteviewing, planning
|
|
|
How many feet in a mile?
|
5280
|
|
|
The term contigiuous means what
|
Touching at any point
|
|
|
How many square miles are in a township?
|
36 square miles
|
|
|
Where is a habendum clause found?
|
In the deed
|
|
|
How many sections are in a township?
|
36
|
|
|
What are the three types of legal descriptions?
|
Metes and Bounds, Government Rectangular Survey, Lot Black tract
|
|
|
What type of legal description uses distances and directions?
|
Metes and Bounds
|
|
|
Who does the assignment of rents clause protect?
|
The beneficiary
|
|
|
Which type of legal description is most commonly used with subdivisions
|
Lot-Black-Tract
|
|
|
If you are returning to the POB, which type of legal description are you using?
|
Metes and Bounds
|
|
|
A lease is an example of what type of property restrictions
|
Encumbrance
|
|
|
When a deed of trust is satisfied, what does the trustor receive?
|
Deed of ReConveyance
|
|
|
A lien is an example of what kind of property restrictions
|
Encumbrance
|
|
|
What are the four things about a property tax?
|
Specific, Involuntary, Priority, Unrecorded
|
|
|
What type of a lien is income tax?
|
General
|
|
|
What is the effective date of a mechanics lien?
|
Date when work began
|
|
|
What establishes position of lien or time and place of lien/
|
Recordation
|
|
|
When must a mecahincs lien be filed by?
|
120 days after compeltition of entire project
|
|
|
When does a mechanics lien take priority
|
When the work began
|
|
|
What does the word appurtenant mean?
|
Attached to the land
|
|
|
What type of estate is the giver of the easement?
|
Servient Estate
|
|
|
In order to obtain an easement by prescription, whats the time frame of use?
|
10 years (hostile)
|
|
|
What does an easement by necessity provide with the land?
|
Ingress and Egress
|
|
|
What did the 1988 fair housings amendment add to the FFH act?
|
Disability and marital Status
|
|
|
Who is responsible for restoring property if a handicap person makes some adjustments for convenience?
|
The Tennant
|
|
|
What is HUD's policy on unsolicited disclosure of the fact a seller has AIDS?
|
Its illegal
|
|
|
Does the protected class of handicap under FFH act include people with physical illnesses
|
Yes
|
|
|
Which act prohibits discrimination against gender
|
House development act of 1974
|
|
|
The federal Reserve Board implemented what regulation in the Truth in Lending Act?
|
Reg Z
|
|
|
what must be shown whenever monthly payments or interest rates are advertised?
|
The APR rate
|
|
|
If an equal housing opportunity sign is not displayed in a mortgage brokers office, what does this constitute?
|
Discrimination
|
|
|
What is it called when brokers direct members of certain minority groups away from some of their listings?
|
Steering
|
|
|
How much is an origniation fee usually?
|
1%
|
|
|
What is it called when a broker tries to profit by telling owners to sell because a minority groups may be moving into the neighborhood
|
Blockbusting
|
|
|
Who typically pays for owners title insurance policy?
|
The Seller
|
|
|
Who typically pays for lenders insurance policy?
|
Buyer
|
|
|
What is it called when a lender bases a loan application on national Origin?
|
Redlining
|
|
|
What is it called when a housing complex rejects a 35 year old person in a senior housing community?
|
Exemption
|
|
|
Can a private club legally give different treatment to it's own members?
|
Yes
|
|
|
What is the minimum penalty for a violation of fair housing laws?
|
10,000
|
|
|
What is the statue of limitiation on fair housing laws
|
one year
|
|
|
when a mortage is paid in full, when must a satisfation piece be recorded?
|
Within 30 days of full payment
|
|
|
What does the successful bidder of a mortgage foreclosure receive?
|
Sherrifs Deed
|
|
|
What is the redemption period of a mortgage foreclosure sale?
|
6 months
|
|
|
What happens to excess funds at a foreclosure sale?
|
Goes back to the borrower
|
|
|
What happens when the money from a foreclosure sale is not sufficient to repay debt?
|
Deficiency Judgement
|
|
|
In a deed of trust, who is the trustee
|
Impartial third party
|
|
|
Upon full payment of a deed of trust, what is required on the deed of reconveyance?
|
Trustee Signature
|
|
|
What is the redemption period on a trustee's sale
|
90 days prior to the sale
|
|
|
What type of loan provides for a sum payment at the end of specified term?
|
Partial Amortization
|
|
|
What type of loan covers more than one property?
|
Blanket loan
|
|
|
What type of loan covers personal and real property?
|
Package Loan
|
|
|
What type of financing cannot be a wrap around?
|
Due on Sale
|
|
|
What type of finacning is where a buyer receives title and gives note and mortage to seller?
|
Carry back
|
|
|
How does a lender get paid for writing the loan?
|
Origination
|
|
|
What type of lenders purchase and sell exisitng loans
|
Secondary Lenders
|
|
|
Who is PMI risk insurance for?
|
The lender
|
|
|
How much does a borrower need to put down to avoid paying PMI?
|
20%
|
|
|
PMI is used with what type of loan?
|
Conventional
|
|
|
MIP is used with what type of loan?
|
FHA
|
|
|
In a net lease, what does the lesee pay for?
|
Rent plus charges
|
|
|
with a FHA loan, who must do the appraisal?
|
approved appiaser
|
|
|
What type of loan does a borrower pay principle and interest monthly whereby ending with a zero balance loan?
|
Amortized
|
|
|
What type of loan does not lend directly to the borrower?
|
FHA loan
|
|
|
With what type of loan does the seller pay escrow fees?
|
VA loan
|
|
|
What are the four governemnt powers?
|
Police, Eminenet Domain, Taxation, Escheat
|
|
|
What type of private property is exempt from Eminent Domain
|
None
|
|
|
What is the process by which the government takes property by eminent domain?
|
Condemnation
|
|
|
What administers federal superfund sites
|
EPA
|
|
|
What did the Comprehensive Environmental Response, compensation and liability act of 1980 create?
|
Superfund sites
|
|
|
What can leaking USTS cause/
|
Contaminated ground water
|
|
|
What kind of license is required to subdivide land?
|
none
|
|
|
What is the rescission period on unsuspected, unsibdivided land?
|
Six months (7 days if inspected)
|
|
|
What is the rescession period on inspected unsubdivided land?
|
7 days
|
|
|
What can a subdivide do before receiving the CPR
|
take reservations (Max 5000)
|
|
|
When is CPR not needed?
|
Unsubdivided land
|
|
|
What is the max lot reservation a subdivider can take?
|
5000
|
|
|
how long does a subdivider have to keep the receipt of acceptance of cpr?
|
5 years
|
|
|
How long is a contract without proof of CPR voidable for?
|
3 years
|
|
|
In an open listing, who gets the commission?
|
Whoever lists and sells the property
|
|
|
What type of listing gaurenttes the broker a commission?
|
Exclusive Right to Sell
|
|
|
What type of listing does the broker get nothing if the seller sells it himself?
|
Exclusive Agency
|
|
|
How are commissions expressed?
|
Percentage of list price
|
|
|
How are commissions calculated?
|
Percentage of Sale price
|
|
|
When are commissions earned?
|
When you find a willing, able, able buyer
|
|
|
when are commissions paid and whom are they paid to?
|
Employing Broker, @ COE
|
|
|
Is it legal for an agent to earn a commission from both the buyer and the seller on the same transaction?
|
Yes. Duel agency
|
|
|
Who can take a seller to court to fight a commission dispute?
|
Designated Broker
|
|
|
Does an agent hvae to disclose a stigmatized property?
|
No
|
|
|
When must a lead based paint disclosure form be attached to a Contract?
|
Prior to 1978
|
|
|
What is misrepsentaiton with intent called?
|
Fraud
|
|
|
Is puffing legal?
|
Yes, but frowned upon
|
|
|
What type of environmental testing is required at schools by federal law?
|
Ebstesos
|
|
|
What is an option a form of?
|
Unilateral Contract
|
|
|
What is not a component of a valid contract?
|
Earnest MOney
|
|
|
What does death do to a contract?
|
Nothing
|
|
|
If seller wants to change only the closing date on an offer, what must he do;/
|
Write a counteroffer
|
|
|
What does the broker do once earnest money is received?
|
Trust account within 24 hours or straight to title
|
|
|
What happens when an agent is unavailable for 24 hours and another broker wants to present offer?
|
WIth the permission of the seller this can happen (must be kept for 1 years)
|
|
|
Once a counter offer is written, what happnes to the original contract?
|
Void
|
|
|
What is consideration in an Option contract
|
Option Fee or Option Money
|
|
|
Can an agent tell his buyer how to take title?
|
No
|
|
|
What is the maxium possible estate on can possess in real property?
|
Fee Simple
|
|
|
What is the duration of a freehold estate?
|
Indefinite
|
|
|
What type of estate is contingent on someones life?
|
Life-Estate
|
|
|
What type of ownership exists if it is not states and the couple is not married?
|
Tennants in Common
|
|
|
In joint tenancy with right of survivorship, what four factors must be equal?
|
Possession, Time, Interest, Title
|
|
|
How can corporations hold title?
|
Severalty
|
|
|
In community Property Ownership, what happens when one spouse dies?
|
Remaining spouse only owns half
|
|
|
What are the owners of an LLC called?
|
Managing Members
|
|
|
What type of wonership does a condominum owner have in the common area?
|
Tennancy in COmmon
|
|
|
Who owns a co-op
|
Corporations
|
|
|
What is the cancellation period of a time share?
|
7 days
|
|
|
What must be disclosed before time share presentaiton is given?
|
Value of the time share
|
|
|
What type of ownership does a single man hold for his townhouse?
|
Severalty Of Land
|
|
|
When is the closing official?
|
Date of recording
|
|
|
In joint tenancy with right of survivor ship, what happens when one person dies?
|
reduces the amount of people on title by one
|
|
|
What is recorded, signed document indicated the sale price of the property called?
|
Affidavid of Sale
|
|
|
What is it called when a title company turns earnest money over to the court because of a dispute
|
Interpleader Actions
|
|
|
Who supervises escrow agents?
|
State supervisor of land
|
|
|
What establishes or proves sales price to help determine taxes?
|
Affidavid of sales
|
|
|
How are taxes paid
|
In arrear
|
|
|
How is insurance paid?
|
In advance
|
|
|
When doing proration, what is the amont of days in a year and month if not stated otherwise?
|
360 and 30
|
|
|
Who prepares the HUD 1 statement
|
Escrow Agents
|
|
|
Who is repsonsible for delivering settlement statemnt to the buyer and seller?
|
The agent
|
|
|
What is the ownership hisotry of a property called?
|
Chain of title
|
|
|
What is a history of all recorded instruments that has affected title to a property ?
|
Abstract of title
|
|
|
What insurance policy is paid for by the buyer to protect the lender?
|
Lenders Policy
|
|
|
What type of document prevents forgery and ensures that the grantor has signed Voluntarily
|
Acknowledged Deed
|
|
|
What has to happen for the deed to be valid?
|
Acceptance and Delivery
|
|
|
What does it mean when a person dies intestate?
|
WIthout a will
|
|
|
What is it called to transfer real property by will?
|
Devise
|
|
|
What kind of properties does RESPA apply to?
|
Residential Properties
|
|
|
How long must a lender keept a settlement statemnt after COE
|
2 years
|
|
|
Who administers RESPA regulations
|
HUD
|
|
|
When must the settlement statement be available to the buyer and seller according to RESPA?
|
1 day prior to closing
|
|
|
Under RESPA what is the kick back penalty?
|
1 year in jail, 10K, and loss of license
|
|
|
What type of loans are not covered by respa
|
Commercial
|
|
|
What prohibits kickbacks in real estate?
|
RESPA
|
|
|
Which clause is the "To have and to hold"?
|
Habendum clause
|
|
|
Who must sign the deed for it to be valid?
|
Grantor
|
|
|
Who must sign the deed for it to be valid?
|
Grantor
|
|
|
What can distinguish a deed froma mortage instrument?
|
Words of conveyance
|
|
|
In recordation, what is not recorded by priority?
|
Properrty Taxes (always first)
|
|
|
What does proper redecoration of a property provide?
|
Constructive Notice
|
|
|
What is always first in priority
|
Property Taxes
|
|
|
In order for proper recordation, where must the property be recorded?
|
County where it is located
|
|
|
Which type of deed does the grantor accept responsibilyty for title defects that arose only during his ownership?
|
Special Warrenty Deed
|
|
|
Which type of deed offers the greatest protection
|
General Warrenty Deed
|
|
|
After redemtopion period, what type of deed is given at a foreclosure sale for failure to pay property taxes?
|
Treasurers Deed
|
|
|
What type of deed is given to convey property out of a deed of trust?
|
Trustees Deed
|
|
|
Which type of deed is often used as an expedient to remove defects in a title?
|
Quick-Claim
|
|
|
How is a loan value establishes
|
Lowest number between appriased and sale price
|
|
|
What are the tow major requirments to become an appriaser?
|
Appraisers license and 2000 hours of apprentice work
|
|
|
What are the four property characteristics that affect value?
|
Demand, Scarcity, Utility, Transferbility
|
|
|
What is a sllers market?
|
More demand than Supply
|
|
|
Which approach to value is most frequently used for residentail sales?
|
Market Approach
|
|
|
What is the only approach an appraiser can use to value land?
|
Market Approach
|
|
|
What type of appraisal approach would be used to value a post office?
|
Cost Approach
|
|
|
What type of appraisal approach would be used to value new homes?
|
Cost apporach
|
|
|
What is a home with five bedrooms and one bathroom an example of?
|
Functional Obsolescence
|
|
|
What type of deprecitaition is an example of railroad tracks running besides a home?
|
Economic Obselence
|
|
|
What type of approach to value would be used for office space?
|
Income Approach
|
|
|
What is designed to reflect the recapture of the original investment
|
CAP Rate
|
|
|
What type of agency is between a broker and his salesperson?
|
General Agency
|
|
|
What measures the risk involved in an investment?
|
Cap Rate
|
|
|
Which type of appraisal approach does not allow for variations in vacancies or bad debts?
|
Gross Rent Multiplier
|
