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;
217 Cards in this Set
- Front
- Back
|
A properly drafted property management agreement should contain all of the following EXCEPT:
a. names of the owner and the manager b. a requirement that the manager provide periodic reports to to the owner c. outlined duties of the property manager d. names of tenants in occupancy |
D. names of tenants in occupancy
|
|
|
Property managers are responsible for all of the following EXCEPT:
a. protecting the condition of the real estate b. maximizing income from real property c. handling rents d. drafting original legal documents for leasing space in the building |
D. drafting original legal documents for leasing space in the building
|
|
|
A properly drawn property management contract should contain all of the following EXCEPT:
a. a legal description of the property b. the terms and conditions of the employment c. an outline of the expected duties d. the scope of the authority |
A. a legal description of the property
|
|
|
All of the following should be included as fixed operating expenses in the budget for property management EXCEPT:
a. property management's fee b. ceiling replacement c. fuel costs d. maintenance |
B. ceiling replacement
|
|
|
A broker acting as a property manager of a building was instructed by the owner to paint the building for $1000. Without the owner's knowledge and consent, the broker could:
a. contract the job for $800 and pocket the $200 b. accept a rebate from the painter c. do the job himself and keep the $1000 d. cannot do nothing that was not within the scope of the employment contract |
D. cannot do nothing that was not within the scope of the employment contract
|
|
|
Under Regulation Z, all of the following may be advertised alone EXCEPT:
a. 5 percent down payment b. 9 1/2 percent annual percentage rate c. $73,600 cash price d. very low monthly payments |
A. 5 percent down payment
|
|
|
Regulation Z provides a right of recission:
a. to first mortgages to finance the purchase of a residential condominium unit. b. that expires 3 business days after the date of consummation of the transaction or the date on which the lender makes material disclosures, whichever is later c. to all residential loans on real estate d. that expires on default of the loan |
B. that expires 3 business days after the date of consummation of the transaction or the date on which the lender amkes material disclosures, whichever is later
|
|
|
Under the Truth-in-Lending Act disclosure of which of the following will trigger disclosure of other credit terms?
a. 10 percent down payment b. 10 percent annual percentage rate c. no down payment d. reasonalbe financing available |
A. 10 percent down payment
|
|
|
A landlord owns a multi-family dwelling and occupies one of the units. She rents out the other units and says she prefers to rent to foreign doctors. Which is true under the Federal Fair Housing Act?
a. she is violating the act, assuming there are a totoal of 3 units. b. she is not in violation of the act assuming there are 4 units c. indicating a preference for foreign doctos would not be grounds for a charge of discrimmination under the act she is in violation of the act because she is intentionally acting to discriminate |
B. she is not in violation of the act assuming there are 4 units
|
|
|
The prohibitions of the 1968 Fair Housing Act apply to single-family housing in all of these cases EXCEPT if:
a. it is single-family housing owned by a corporation b. it is single family housing privately owned by an individual who owns more than three houses, or who sells in any two-year period, more than one house in which he or she was not the most recent occupant c. a real estate broker uses discriminatory advertising to attract buyers d. the owner gives the home to his/her child |
D. the owner gives the home to his/her child
|
|
|
A minority group is moving into an area immediately adjacent to an old subdivision. Xanadu Realty offers in good faith to list homes in the subdivision at a lower than usual rate if the owners list within 45 days. There is no mention of race.
*Such practice is not illegal because: For blockbusting to exist, there must be some actual of implied representation about the effect of the entry of minority groups in the area |
*Such practice is not illegal because:
For blockbusting to exist, there must be some actual of implied representation about the effect of the entry of minority groups in the area |
|
|
If foreclosure sale procees are less than the outstanding debt and foreclosure expenses, which remedy is available?
|
The mortgagee may obtain a deficiency judgement against the mortgagor.
|
|
|
What is an equitable period of redemption?
|
It refers to a time within which a debtor can reclaim the property by payment.
|
|
|
A mortgage that cover several parcels of land and may contain a provision for sale of an individual parcel, thereby reducting mortgage payments is a(n)
|
Blanket Mortgage
|
|
|
The clause in a mortgage note that permits the loan to be paid off at any time without a penalty is called a(n)
|
"or more" clause which is also called the prepayment privilege clause, prepayemnt is allowed, if for example, the monthly payment is listed as "$600 or more."
|
|
|
Which of the following is BEST for the tax-payer?
a. a deduction for $10,000 b. a deferral of $10,000 c. a credit for $10,000 d. an exemption for $10,000 |
C. A credit for $10,000 - Because it applies against the amount of tax owed, a credit is more beneficial than a deduction or exclusion, which lessens the amount of income subject to taxation.
|
|
|
The compulsory charge the government imposes against property owners benefited by street improvements, sewer line installation, or road repais is called a _______.
|
special assessment
|
|
|
Items that are affixed as appurtenances to land are usually real property. All of these items are real property EXCEPT:
a. growing trees b. trade fixtures c. buried water tanks d. buildings |
B. Trade fixtures
|
|
|
The formula used in direct capitalization of income property valuation is
|
value equals income divided by cap rate
V= income ---------- cap rate |
|
|
A hospital receives a gift of real property from an elderly couple who reserve to themselves a life estate. The hospital is _______.
|
Remainderman
|
|
|
The return of land to the grantor or grantor's heirs when the grat is over is best described as __________.
|
Reversion
|
|
|
An example of a less-than-freehold estate is a(n)________.
|
leasehold estate
|
|
|
Which of the following BEST defines real property?
a. land and the aire above it b. land and the area below and above the surface to infinity and all the improvements thereon c. the land, buildings thereon, and anything permanently affixed to the land and/or buildings d. land and the mineral rights in the land |
B. land and the area below and above the surface to infinity and all the improvements thereon
|
|
|
If a property owner dies intestate (without a will), his or her property will go to
|
The heirs by descent
|
|
|
Who is (are) the best person(s) qualified to determine the method of ownership in the purchase of real estate?
|
Buyer and Attorney
|
|
|
A buyer is thinking of purchasing an interest in a resort condominium that would guarantee possessioin of a specific two-bedroom unit for March of every year. Which form of ownership might a broker recommend?
|
Time-share
|
|
|
The MOST important factor in determining whether something is a fixture is ____________.
|
The intention of the party who attached it.
|
|
|
An apropriation of land for some public use made by the owner and accepted for such use by or on behalf of the public, such as streets in platted subdivision, is called ________.
|
Dedication
|
|
|
A riparian owner is one who owns land bounding on _______.
|
a waterway
|
|
|
A landowner who sells a one-acre farm must ______.
|
specifically reserve the mineral rights therein, or they will automatically pass to the buyer
|
|
|
An example of a right, privilege, or improvement that belongs to and passes with a property (runs with the land) is described as a(n) _________.
|
appurtenance
|
|
|
Which statement is TRUE?
a. all liens are encumbrances b. all encumbrances are liens. c. specific liens affect all property of the debtor located in the state d. Judgements are specific liens |
A. All liens are encumbrances
|
|
|
Of the three methods of appraising properties, the replacement cost approach is particularly apropriate and would give the MOST accurate value in the appraisal of a(n)________.
|
new home
|
|
|
Which fact might be classified as functional obsolescence?
a. the exterior needs painting b. property front on a busy expressway c. property has single car garage d. neighborhood's 50 years old |
C. Property has single car garage
|
|
|
To qualify for a VA loan on a dwelling, all of these requirements EXCEPT:
a. the applicant must sign a declaration that he or she intends to occupy the dwelling b. there must be an appraisal from an appraiser approved by VA c. the applicant must have a certificate of eligibility d. the borrower must pay the discount points at closing |
D. the borrower must pay the discount points at closing
|
|
|
A particular savings association has blocked out certain regions of the community where it will not place loans because of the ghetto conditions such a practice is called
|
redlining
|
|
|
How frequently are title insurance premiums paid?
|
once; only at the time of issuance
|
|
|
A buyer is interested in buying property in another state without an inspection. The buyer should obtain a(n):
|
extended coverage title insurance policy
|
|
|
Constructive notice of a fact is established by:
a. entering it in the public record b. acting openly in accordance with the face c. communicating the fact directly to each interested party testifying to the existence of the fact under oath in open court |
A. entering it in the public record
|
|
|
If escrow instructions differ from the deposit receipt or sales contract and the escrow instructions have been signed by both the buyer and seller, which statement is correct?
|
Escrow instructions take precedence
|
|
|
When transactions involving the sale of real estate are place din escrow, this means:
|
a designated agent agreed to by the parties holds the necessary documents until the terms are met.
|
|
|
A standard policy of title insurance insures against all of the following EXCEPT:
a. matters of record b. forgery c. mining claims d. contractual capacity |
C. mining claims
|
|
|
Tracing the conveyances and encumbrances of real property is known as:
a. chain of title b. title search c. cloud on title d. recordation of title |
B. title search
|
|
|
Which function does an abstract of title perform?
a. guarantees a clear title b. insures the title c. gives the abstractors opinion of title d. offers a condensed history of all recorded document |
D. offers a condensed history of all recorded document
|
|
|
When a title insurance company issues an ALTA extended policy, such a policy usually extends beyond the risks normally insured under the standard policy to include all of the following EXCEPT:
a. unrecorded mechanics' liens b. unrecorded physical easements c. the effect of zoning regulations. d. the rights of parties in possession |
C. the effect of zoning regulations.
|
|
|
A broker finds a prospective buyer for a single-family dwelling, and the subject of title insurance has come up. The buyer wants the greatest owner protection available. Which of the following should the broker recommend?
|
Extended coverage policy of title insurance
|
|
|
The standard form title insurance policy insures against:
a. governemental actions b. forgery of a deed c. right of parties in posession d. water and mineral rights |
B. forgery of a deed
|
|
|
A deed has been properly escrowed with an attorney, and closing is scheduled for 13 days later. If the seller dies before closing, when does legal title pass?
a. title passed when the deed was placed into escrow. b. title passes when and if the estate provides another deed. c. because the escrow dies with the seller, no deed or legal title will pass at closing d. title passes on closing |
D. title passes on closing.
*The rule is that a deed is valid only if the grantor is alive at the time of delivery. When death occurs during escrow, most courts will create the legal fiction that delivery occurred when the deed was first deposited in escrow, at which time the grantor was alive. Although deliivery relates back, actual passing of legal title does not take place until closing. |
|
|
*FACT*
The quitclaim deed gives the least protection to the grantee. |
*FACT*
The quitclaim deed gives the least protection to the grantee. |
|
|
The two parties involved are most likely to sign all of these documents EXCPET:
a. purchase contract b. listing c. lease d. warrantly deed |
D. warrantly deed
|
|
|
All of the following may affect the validity of a deed EXCEPT:
a. proper signature b. lack of money consideration c. delivery d. competent grantor |
B. lack of money consideration
|
|
|
Deeds that purport to convey an interest but make no warranty of good title are called:
|
Bargain and sale deed.
* A bargain and sale deed may be used by a grantor who has good title but does not want to make any warranties with respect to title. |
|
|
Marketable title to real property is LEAST likely to be conveyed:
a. to a minor b. by a quitclaim deed c. by a minor d. by a special warranty deed |
C. by a minor
|
|
|
*FACT*
A deed must be signed by the grantor to be recorded. |
*FACT*
A deed must be signed by the grantor to be recorded. |
|
|
All of these documents will most likely be recorded EXCEPT the:
a. quitclaim deed b. satisfaction of mortgage c. power of attorney d. offer and acceptance |
D. offer and acceptance
|
|
|
Which party is in the weakest position against a claim of title by stranger?
a. a nonoccupant holder of a warranty deed b. a nonoccupant holder of an unrecorded quitclaim deed c. one who holds an unrecorded deed d. one who holds a recorded a quitclaim deed to the property |
B. a nonoccupant holder of an unrecorded quitclaim deed
|
|
|
When a property is sold subject to an existing lease that has nine months before it expires, all of these statements regarding the settlement are true EXCEPT that the
a. security deposit is a credit to the buyer b. prepaid rent is a credit to the buyer c. security deposit is a debit to the seller d. prepaid rent is a credit to the seller |
D. prepaid rent is a credit to the seller
*Prepaid rent is a debit to the seller and a credit to the buyer, because the seller has already received this income for the unused period. The seller who has this money must return it to the buyer, who will eventually return it to the tenant, provided there are no damages at the time of lease termination. |
|
|
A declaration made by a person to an official stating that a deed has been freely and voluntarily executed is an:
|
Acknowledgement
*The grantee must exist at the time of delivery. Thus, a deed to a grantor's grandchildren is not valid if the grantor is only ten years old at delivery. |
|
|
Which deed offers the least protection to the grantee?
|
Quitclaim deed
|
|
|
For a deed to be valid, which of the following must occur?
a. there must be manual delivery of the deed b. the deed must be signed by both grantor and grantee, and also recorded c. the deed must have a habendum clause (to have; hold) d. the deed must be in writing |
D. the deed must be in writing
|
|
|
The clause that defines or limits the quantity of the estate being conveyed is the:
|
habendum clause
*Also called the to have and to hold clause, the habendum clause is customarily included in a deed. It indicates that the grantor is conveying, for example, a fee simple or life estate. |
|
|
Deeds that limit the liability of the grantors to their own acts and all persons claiming by, through, and under them are known as:
|
special warranty deed
|
|
|
For adverse possession, all of the following elements are required EXCEPT:
a. hostile b. notorious c. continuous d. tacking |
D. Tacking
*Tacking refers to meeting the continuous time element by linking together successive periods of possession by different occupants, such as a father's four years added to his son's succeeding ten years. |
|
|
When does legal title to real property pass from the seller to the buyer?
|
When the deed is delivered
|
|
|
Hank executes a deed of his farm to Seth. Hank keeps the deed in his safe-deposit box. On his death, the box is opened, and attached to the deed is a note to give the deed to Seth. Who has title to the farm?
|
Hank's heirs
|
|
|
The Real Estate Settlement Procedures Act (RESPA) is designed to regulate:
a. disclosures of closing information b. procedures for recording titles to real estate. c. ceilings on interest rates charged d. those who are qualified to prepare a settlement statement |
A. disclosures of closing information
|
|
|
Under what type of program can a financial instituion underwrite an FHA loan?
a. direct establishment b. direct endorsement c. direct capitalization d. direct programming |
B. direct endorsement
|
|
|
*FACT*
Mortgage to a trust deed similarities are that they both involve a promissory note. |
*FACT*
Mortgage to a trust deed similarities are that they both involve a promissory note. |
|
|
A clause in a blanket mortgage that permits mortgagors to assign parcels of property covered by the mortgage on a payment of a specific amount is BEST termed a ________.
|
Release or partial release clause
|
|
|
*FACT*
Unless otherwise provided, interest is usually charged in arrears, meaning at the end of each period for which interest is due. |
*FACT*
Unless otherwise provided, interest is usually charged in arrears, meaning at the end of each period for which interest is due. |
|
|
An unrecorded deed is valid and binding
a. between parties to the deed b. on a later bonafide purchaser for value who first records the deed c. even if not delivered d. when signed by the grantee |
A. between parties to the deed
|
|
|
Under an adjustable rate mortgage, what may occur?
|
The interest rate may decrease or increase one percentage point.
|
|
|
It is common procedure to record all of the following EXCEPT:
a. land contract b. quitclaim deed c. assignment of a mortgage d. promissory note secured by a mortgage |
D. promissory note secured by a mortgage
*A note does not involve an interest in real property. Also, most lenders do not want the details of loans to be made public. |
|
|
Which term BEST describes the right to pay off a mortgage debt after default?
a. foreclosure b. prepayement c. redemption d. escalation |
C. redemption
|
|
|
Under the rules and regulations of RESPA, which is TRUE?
a. buyers may not use their attorneys at a closing b. lenders can require the use of a designated closing agent c. lenders cannot charge points on a loan d. borrowers receive an explanation of settlement charges |
D. borrowers receive an explanation of settlement charges
|
|
|
When a buyer "assumes and agrees to pay" an existing loan on a property, which statement is true?
a. the seller is relieved from liability b. the buyer and the seller are liable for the loan c. only the seller is liable d. only the buyer is liable |
B. the buyer and the seller are liable for the loan
|
|
|
A statement from a borrower setting forth the amount of the balance unpaid, the interest rate, and any claims she may have against the lender is called a(n):
|
Estoppel Certificate
|
|
|
Escrow is often used for all of the following purposes EXCEPT to:
a. determine that outstanding debt and unpaid liens will be satisfied b. see that the purchase price is paid and all checks are cleared c. offer properties for sale to prospective buyers d. disburse funds from a sale to the appropriate people. |
C. offer properties for sale to prospective buyers
|
|
|
There are serveral requirements in a valid escrow concerning the sale of real property. One of them is:
|
a valid and enforceable written contract for the sale of land
|
|
|
Which statement about title insurance is CORRECT?
a. dollar coverage under a mortgagee's policy of title insurance remains constant b. dollar coverage under an owner's policy of title insurance declines as the loan declins c. the buyer pays annually for coverage as long as the policy is in effect. d. the insurance coverage on a mortgagee's policy is based on the declining balance of the loan |
d. the insurance coverage on a mortgagee's policy is based on the declining balance of the loan
|
|
|
Which statement is TRUE regarding an encumbrance on real property?
a. an encumbrance effectively prevents the passing of title from grantor to grantee b. an encumbrance may indicate a lien c. encumbrances are liens that restrict use of the property d. encumbrances are restrictions that transfer title to property |
B. an encumbrance may indicate a lien
|
|
|
A buyer purchased a furnished, fee simple home and is going to assume the existing mortgage. The settlement company will arrange to have drawn up all of the following with the exception of the:
a. bill of sale b. note and mortgage c. assumption agreement d. warranty deed |
B. Note and mortgage
|
|
|
A mortgage that allows for advances to a mortgagor up to a certain maximum is a(n)
|
open-end mortgage
|
|
|
Charging more than the legal rate of interest is called ______.
|
Usury
|
|
|
What advantage to the borrower does a 20-year amortization loan have over a 15 year amortization loan?
|
Lower monthly payments
|
|
|
*FACT*
A broker received a parcel of land valued at $30,000 as part of his/her commission in negotiating a sale of a $1million hotel. The same day that the escrow on the hotel closed, the broker sold the land for $40,000. *This is proper behavior because the broker did not resell the land until after title to it was received. |
*FACT*
A broker received a parcel of land valued at $30,000 as part of his/her commission in negotiating a sale of a $1million hotel. The same day that the escrow on the hotel closed, the broker sold the land for $40,000. *This is proper behavior because the broker did not resell the land until after title to it was received. |
|
|
The broker for the seller owes an obligation to:
a. divide the commission with another broker chosen or preferred by the buyer b. divulge to the buyer the lowest price at which the seller will sell c. present to the principal all written offers the broker receives, including terms and conditions of each offer signed by a prospective buyer. d. keep the property in top condition |
C. present to the principal all written offers the broker receives, including terms and conditions of each offer signed by a prospective buyer.
|
|
|
A real estate offic has a listing for $90,000. A buyer makes an offer for $105,000. Without the knowledge of the seller, the listing office can:
a.offer to buy the property through a nominee for $90,000 b. suggest that the broker reduce the offer to $90,000 c. buy directly from the seller for $95,000 and the next day resell to that original buyer for $105,000 d. present the $105,000 offer to the seller. |
D. present the $105,000 offer to the seller.
|
|
|
The prime obligation of an agent to the principal is:
a. mutual trust b. reverence c. loyalty d. thrift |
C. loyalty
|
|
|
An agent with a valid listing is generally considered to have earned a commission:
a. only if title is transferred b. when an offer has been secured from a prospective buyer c. when a ready, willing, and able buyer who offers to buy on the principal's listing terms has been produced d. only when the principal signs a contract of sales |
C. when a ready, willing, and able buyer who offers to buy on the principal's listing terms has been produced
|
|
|
It is unethical practice for a broker representing a seller to:
a. advist the seller of the highest price a prospective purchaser may be willing to pay b. advise a prospective purchaser of the lowest price the seller is willing to accept c. suggest to the buyer that the full asking price is appropriate d. encourage a broker from another company to try to sell the property |
B. advise a prospective purchaser of the lowest price the seller is willing to accept
|
|
|
The commission rate for the sale of real estate is determined by:
|
negotiation between the broker and the seller
|
|
|
Regarding financial agreements made by the client, the broker:
a. need not see that those agreements are put in writing b. is limited to setting the sales price and brokerage fee c. may delegate this responsibility to the sales manager d. is ethically bound to see that all contracts exprses the specific written agreement of parties concerning the details of the transaction |
D. is ethically bound to see that all contracts exprses the specific written agreement of parties concerning the details of the transaction
|
|
|
A seller tells her broker that termites have destroyed the floor and that the swimming pool is in violation of the city setback requirements. What must the broker's salesperson disclose to a prospective buyer?
|
Must disclose both of the information.
|
|
|
The position of trust assumed by the broker as an agent for the principal is described MOST accurately as:
|
Fiduciary Relationship
|
|
|
*FACTS*
Advertising Regulations of Regulation Z: 1) Interest rates cannot be mentioned alone, but, rather, the "annual percentage rate" must be stated. 2) General terms such as "liberal terms available," "small down payments accepted," or "VA or FHA financing available" may be used. 3) Complianced is forced by Federal trade commission |
*FACTS*
Advertising Regulations of Regulation Z: 1) Interest rates cannot be mentioned alone, but, rather, the "annual percentage rate" must be stated. 2) General terms such as "liberal terms available," "small down payments accepted," or "VA or FHA financing available" may be used. 3) Complianced is forced by Federal trade commission |
|
|
*FACTS*
Advertising Regulations of Regulation Z: 2) General terms such as "liberal terms available," "small down payments accepted," or "VA or FHA financing available" may be used. |
*FACTS*
Advertising Regulations of Regulation Z: 2) General terms such as "liberal terms available," "small down payments accepted," or "VA or FHA financing available" may be used. |
|
|
*FACTS*
Advertising Regulations of Regulation Z: 3) Complianced is forced by Federal trade commission |
*FACTS*
Advertising Regulations of Regulation Z: 3) Complianced is forced by Federal trade commission |
|
|
When a property is advertised "principals only" which group is executed?
|
Agents
|
|
|
The broker's responsibilities in presenting to the seller a written offer to purchase include all of the following EXCEPT:
a. making known to the seller all written offers before the seller accepts an offer. b. making known the ramifications and practical effects of an offer. c. presenting only the offers that are within 10 percent of the asking price. d. presenting all offers as rapidly as they are received. |
C. presenting only the offers that are within 10 percent of the asking price.
|
|
|
A subagent of a seller would BEST be described as a ______.
|
special agent
|
|
|
After showing a property a number of times and not securing an acceptable offer, the broker decides to buy the property himself. He must _______.
|
Make his true position known to the seller.
|
|
|
An attorney-in-fact, in executing the powers given to her under the provisions of a general power of attorney, usually has the right to do all of the following EXCEPT:
a. encumber the principal's property with the attorney-in-fact as a beneficiary. b. sign the principal's name c. record the power of attorney in the county where the principal property is located d. collect money for the principal |
A. encumber the principal's property with the attorney-in-fact as a beneficiary.
|
|
|
Under which circumstances might a broker be liable for misrepresentation for negotiations with a prospective buyer?
a. the broker states the land area is approximately one acre, when it is actually 44,000 square feet. b. the broker fails to mention that a structurally unsound grocery store is a nonconforming use. c. the broker passes on accurate information to the buyer that was given to him by the seller. d. the broker fails to disclose the height of the building. |
B. the broker fails to mention that a structurally unsound grocery store is a nonconforming use.
*The use of the word approximately in citing land areas gives leeway for slight differences in square feet. The broker must disclose pertinent facts, such as the fact that because of zoning regulations the new buyer probably would not be able to make needed structural changes to the grocery store without risking loss of nonconforming use status. The building height is an obvious fact. |
|
|
All of the following are covered under the federal Fair Housing Act because of the definition of familial status EXCEPT:
a. condominiums that have a specific exemption defined under a "grandfathering" provision of state law. b. one or more individuals under the age of 18 living with a parent c. families where one or more members are pregnant d. housing projects intended for occupancy solely by individuals 62 years of age or older |
D. housing projects intended for occupancy solely by individuals 62 years of age or older
|
|
|
Under the federal Fair Housing Act, which of the following is exempt?
a. private clubs operating a commercial boarding house b. religious organizations giving preference to their members in renting church-owned housing c. nonresident owner of a duplex renting one unit d. real estate agent selling own home |
B. religious organizations giving preference to their members in renting church-owned housing
|
|
|
Which of the following is probably a discriminatory practice under the 1988 Amendments to the Federal Fair Housing Act?
a. not allowing a family with children to keep a small dog b. requiring that someone with severe arthritis carry a small dog while riding in an elevator c. requiring a partially death person to turn down the noise from a television after midnight d. requiring prospective tenants to fill out a credit report |
B. requiring that someone with severe arthritis carry a small dog while riding in an elevator
*The handicap provision requires adjustment in the rules to accommodate the handicapped, as long as this does not threaten the health and safety of others. |
|
|
Any of these acts is forbidden by the Federal Fair Housing Act EXCEPT:
a. racial discrimination on the basis of national origin b. racial discrimmination in real estate board membership c. discrimmination on basis of age d. racial discrimmination in home repair financing |
C. discrimmination on basis of age
|
|
|
Under the federal Fair Housing Act, it is permissible to
a. approve a loan to a person who has stated the intention to rent the property only to members of a minority group b. refuse to grant loans on the basis of the financial condition of an apllicant who is a member of a minority group. c. refuse loans on properties because they are located in certain areas. d. give preference in approving loans to members of a certain race. |
B. refuse to grant loans on the basis of the financial condition of an apllicant who is a member of a minority group.
|
|
|
All of the following are both encumbrances and liens EXCEPT a:
a. mortgage b. judgment c. restriction d. tax |
B. judgment
*A restriction is not a charge on property for the payment of a debt, it is a physical encumbrance. |
|
|
The right of a water company to lay and maintain water mains along the rear of a lot is called a(n)_______.
|
easement in gross
|
|
|
Which of the following is the BEST description of the purpose of a building permit?
a. municipal control of the volume of building b. evidence of compliance with municipal regulations c. regulation of area and bulk of buildings d. evidence that construction fees have been paid |
B. evidence of compliance with municipal regulations
|
|
|
Restrictive covenants in a deed are an _______ on the property.
|
encumbrance
|
|
|
An easement created by adverse use is saild to have been created by______.
|
Prescription
*Prescriptive easements usually require open, notorious, and hostile use for the same statutory period as adverse possesion. |
|
|
In recent times, the time-share condominium has become a very important influence in marketing real estate in resort areas. It has generally caused a reduction in the ____ __ __________.
|
Cost of ownership
|
|
|
In a residential condominium project, which event requires an amendment to the condominium declaration?
|
relocation of the boundaries of several units
|
|
|
All of the following documents are used in the typical condominium project EXCEPT:
a. association by laws b. a master deed c. a proprietary lease d. a declaration |
C. a proprietary lease
*The proprietary lease along with a stock or trust certificate is typically used in a cooperative housing project. |
|
|
When evaluating an income property, an appraiser must take into consideration all of the following EXCEPT:
a. correct capitalization rate b. cost of the building next door c. net operating income of the property. d. vacancy and bad debt rates |
B. cost of the building next door
*If the cap rate is off by just 1/2 percent, the difference in valuation can be drastic. One percentage point difference in the cap rate can make a 12 1/2 percent difference in the value estimate. There are two methods to select the appropriate cap rate: (1) by evaluating net income figures and sales prices of comparable properties and (2) by analyzing the two component parts of the cap rate, that is, the return on the investment (interest) and the return of the investment (recapture). The cap rate is applied to the net operating income after deducting for bad debt and vacancy. |
|
|
Cindy, Barb, and Sue are tenants in common. If Barb dies:
a. Cindy's share in the property is unaffected. b. Barb's interest goes to Cindy. c. Barb's interest goes to Cindy and Sue d. Barbs interest automatically goes to her surviving spouse. |
a. Cindy's share in the property is unaffected.
*Because Barb's interest will go to her heirs. |
|
|
Which of the following BEST describes the highest and best use for a particular property?
a. the use that the owner wants b. whatever is the present use c. the use that produces the greatest net return d. whatever use produces the highest density zone |
C. the use that produces the greatest net return
*The highest and best use for a parcel could be a parking lot today but an office building three years from now. It depends on the greatest net return, not necessarily the maximum number of units that can be built in a given space. |
|
|
Market value could be determined BEST by considering:
a. acquisition cost, market data, replacement b. comparison, income, replacement c. purchase price, summation cost d. income stream, acquisition cost |
B. comparison, income, replacement
All three are apraisal approaches to value. Under choices A, C, and D, acquisition cost generally is not relevant to present value. |
|
|
A government agency may acquire a certain property for public use by utilizing ________.
a. an attachment b. the right of eminent domain c. a suit to quiet title d. a claim of adverse possession |
eminent domain
*The governement must pay "just compensation" to the condemnee for the taking. It pays less for acquiring an easement than for the fee simple title. If the government abandons the easement, clear title reverts to the condemnee. |
|
|
The right of the government to place reasonable restrictions on the use of privately held land is known as _________.
|
Police Power
*The police power is given to the government by the constituion and enables the government to pass rules and regulations to protect the health, safety, and welfare of the community. Restrictive covenants are private restrictions found in deeds or recorded declarations. |
|
|
All of the following are true concerning apartment ownership EXCEPT:
a. ownership in a cooperative usually requires purchase of shares of stock in the cooperative corporation or association. b. individual apartments in a condominium are conveyed and are financed as if they were single-family dwellings on separate pieces of land. c. cooperative owners usually can sell their units only with prior board-of-directors approval. d. cooperative owners receive a deed. |
D. cooperative owners receive a deed.
*In addition to stock purchase, the cooperative purchaser becomes a lessee under a proprietary lease to the specific apartment unit, not a grantee under a deed. |
|
|
Which is usually TRUE under commonly accepted principles of tenancy law?
a. Unless otherwise specified, a conveyance of property to a man and woman is automatically construed as a "tenancy by the entirety." b. tenancy by the entirety is characterized by a right of survivorship, which may be severed only by divorce or by joint conveyance of the husband and wife. c. a joint tenancy may be created by operation of law rather than by intent of the parties. d. tenants by the entirety may will away their separate halves of the property. |
B. tenancy by the entirety is characterized by a right of survivorship, which may be severed only by divorce or by joint conveyance of the husband and wife.
*In most states, a tenancy involving survivorship must be created by clear and definite words. Otherwise, it will be construed as a tenancy in common. In a few states, however, the mere conveyance to husband and wife automatically creates a tenancy by the entirety. |
|
|
The term refinancing refers to _________.
|
the repayment of an existing mortgage loan from the proceeds of a new one.
|
|
|
Which of the following BEST describes the principal advantage of a sale-leaseback from the commercial buyer's point of view?
|
Allowable depreciation (cost recovery) can be claimed
|
|
|
A buyer is purchasing a home by way of a VA Loan. The closing statement reveals a payment of $1200 in discount points. How would this payment appear on the closing statement?
|
Reduction in the proceeds due seller
*The seller would be debited the amount of the discount points. |
|
|
The term boot probably would be considered in connection with _______.
|
Exchange
*Boot (anything received in an exchange, such as extra cash to equalize the values of two properties) may be the only immediately taxable portion of a tax-deferred exchange. |
|
|
No depreciation for tax purposes is allowed for:
a. improvements over 30 years of age. b. land c. buildings d. leaseholds |
D. leaseholds
*In real estate investments, depreciation is, for tax purposes, an expense deduction taken over the period of ownership. |
|
|
Tax deductions on a personal residence include all of the following EXCEPT:
a. loan points paid by purchaser b. prepayment penalties c. real property taxes. d. depreciation |
D. depreciation
Loan points and prepayment penalties are fully tax deductible as interest in the year paid if the security for the loan is the borrower's personal residence. If the security is investment property, these charges are deductible over the term of the loan and not in the year paid. |
|
|
One of the advantages of a joint tenancy is that:
a. cannot be terminated without the consent of each tenant. b. can be held in different fractional shares. c. avoids the delays and expenses of probate. d. can exist only between husband and wife |
C. avoids the delays and expenses of probate.
There is no interest left in the deceased joint tenant's estate. Because it passes to the surviving tenant, there is nothing to probate. A joint tenancy can be severed by transfer of one tenant's interest. Shares must be equal, and anyone but a corporation can be a joint tenant. Consent from all is needed to sell the property, not an interest. |
|
|
Which is TRUE regarding the liability of a limited partner?
a. liability is to the extent of his or her investment. b. liability is without limits. c. liability is limited to short-term debts of the partnership. d. personal liability is limited to a stated percentage of partnership debts. |
A. liability is to the extent of his or her investment.
*A limited partner's liability normally extends only to the extent of his or her investment. However, should a limited partner participate in the management of the partnership, then the limited partner loses his or her intended limited liability. A general partner is usually liable for all the partnership's debt. |
|
|
Laura is preparing her federal income tax return. She can claim depreciation on all of the following EXCEPT:
a. a vacant duplex b. a home rented to a friend c. vacant land held for investment d. rented single-family dwelling |
c. vacant land held for investment
*Land does not qualify for depreciation, but improvements on investment property do. |
|
|
Mortgage satisfaction is evidenced by a(n):
a. estoppel certificate b. release of lien c. reduction certificate. d. certificate of no defense |
B. release of lien
Another name for a release is a satisfaction piece. The estoppel certificate (also called certificate of no defense) is used when assigning a mortgage. It confirms the terms of the mortgagor's debt to prevent later dispute over any of the terms. |
|
|
A clause in a mortgage or lease, stating that the rights of the holder shall be secondary to a subsequent lien, is called a(n):
a. subordination clause b. habendum clause c. escalation clause d. recapture clause |
A. subordination clause
This clause is frequently found in second mortgages that allow the mortgagor to refinance the first mortgage. A recapture clause is found in shopping center percentage leases; a habendum clause is likely in a deed; and an escalation clause covers increases or decreses in payments. |
|
|
The main advantage of a wraparound mortgage is that the:
a. borrower gains additional financing at a higher rate than the market interest rate. b. originator of a wraparound mortgage is the primary mortgage holder. c. wraparound mortgage specifically finances subdivisions. d. effective interest rate is typically lower than the prevailing rate on new mortgages |
D. effective interest rate is typically lower than the prevailing rate on new mortgages
|
|
|
All of these statements are true of the promissory note used to finance real property EXCEPT that it is:
a. the written promise of the borrower to repay the loan b. the fundamental loan document c. typically recorded d. junior loan |
C. typically recorded
|
|
|
In the event a first mortgage fails to record his or her mortgage and a good faith second mortgagee records his or her mortgage first, all of the following are true EXCEPT:
a. the second mortgagee has priority b. the borrower is personally liable to both lenders c. the first lender will still be able to collect the money owed d. an unrecorded mortgage cannot be enforced and collected on |
d. an unrecorded mortgage cannot be enforced and collected on
|
|
|
What type of mortgage may permit a builder to obtain the release of lots, one at a time, as they are developed?
|
blanket mortgage
|
|
|
The words balloon payment on a mortage refers to:
a. first payment b. last payment c. middle payment d. total payments |
B. last payment
Balloon payments are popular in installment land contracts and nonamortized purchase-money second financing |
|
|
An escalation clause in a mortgage usually provides for:
a. an adjustment of the interest rate under specified conditions. b. immediate payment of the full debt upon any default. c. a method of speeding up the payment to pay off the loan sooner d. a locked-in interest rate in the event that interest rates increase |
A. an adjustment of the interest rate under specified conditions
The modern version of the escalation clause is the variable-rate (or adjustable-rate) mortgage. Choice B is the acceleration clause. |
|
|
Who must sign the mortgage and note?
|
Mortgagor
|
|
|
Under which circumstance can one take depreciation on a single family dwelling for federal tax purposes?
|
When one rents it
|
|
|
Common elements in a residential condominium usually include all of the following EXCEPT:
a. girders and stairways b. parking stalls assigned to particular apartments. c. elevators d. roofs |
b. parking stalls assigned to particular apartments.
|
|
|
A joint tenant in real property who wishes to dispose of the interest:
|
May convey to a nontenant who becomes a tenant in common
|
|
|
When owners of a tenancy by the entirety are divorced, they
a. become tenants in common b. become tenants at sufferance c. remain tenants by entireties d. automatically become joint tenants with right of survivorship |
A. become tenants in common
Because the marital unit is ended, the tenancy be entirety also ends. Often there is a property settlement agreement that resolves who gets the property, or the owners may elect to form a joint tenancy or a tenancy in common. Otherwise, by operation of law, property is held in tenancy in common. |
|
|
Carl and Samuel own a farm as joint tenants. Which statement is TRUE?
a. Samuel's wife has a dower interest in the property b. Carl can transfer his interest in the property by will. C. Upon Samuel's death his interest will pass to his widow. d. Carl can sell his half interest in the farm without Samuel's consent. |
D. Carl can sell his half interest in the farm without Samuel's consent.
*Dower does not apply to joint-tenancy property. There is no property left in the estate to pass by will because the remaining joint tenants survive to the interest of the deceased joint tenants. |
|
|
The liquidation of a debt by periodic installment is BEST described as:
|
Amortization
*A fully amortized debt is one in which there are equal periodic payments of principal and interest, resulting in a zero balance at the end of the stated period. While the amount is constant, the part of each payment applied to interest and that applied to principal varies, with the interest portion gradually decreasing and the principal portion gradually increasing. An annuity is the periodic payment of money for the duration of aperson's life or other designated period of time. |
|
|
A case in which the seller wanted to be releived of all obligations under the VA mortgage that another veteran buyer would assume and substitue eligibility would be BEST described as:
a. subordination b. novation c. acceleration. d. subrogation |
B. Novation
*Novation is the substitution of one obliged party for another. Note that the assuming buyer would have to substitue his or her own VA eligibility. |
|
|
The money used for FHA loans is supplied by:
|
Qualified lending institutions
*The private lender makes the loan, which is then insured by FHA. |
|
|
A promissory note providing for interest only to be paid during its term is BEST described as a(n):
|
Straight Note
*A straight note is interest only. An amortized note would include interest and principal payments. |
|
|
A veteran sells his property to another veteran, who assumes the loan? Which statement is TRUE?
a. the seller is automatically released from liability upon the assumption. b. the seller is immediately eligible for a maximum new VA loan upon the assumption. c. there is a prepayment penalty d. It may be assumed with VA approval. |
D. It may be assumed with VA approval.
To assume a VA loan committed after March 1, 1988, a purchaser must be able to qualify based on VA guidelines. |
|
|
In which one of the following ways do mortgage brokers differ from mortgage bankers?
a. brokers service the loans they arrange b. brokers arrange junior financing c. brokers do not provide their own funds to originate loans d. brokers operate in the primary mortgage market. |
C. brokers do not provide their own funds to originate loans
Unlike the broker, the mortgage banker is capable of originating loans as well as servicing the loans arranged for others. The mortgage banker operates in the primary mortgage market (originating loans) as well as in the secondary mortgage market (selling loans, especially to Fannie Mae.) |
|
|
A certificate of eligibility is a prerequisite for which type of loan?
|
VA loan
|
|
|
The seller has an existing first mortgage. To limit exposure to further liability on the mortgage. To limit exposure to further liability on the mortgage note, the seller should find a buyer ready to:
a. take title subject to the mortgage b. subordinate his or her position to the mortgage c. assume the mortgage and note d. obtain his or her own financing |
D. obtain his or her own financing
*if the buyer obtains financing, the seller will get cashed out and can pay off the existing mortgage. The seller would not be primarily liable if the buyer assumed the note, although he or she would remain secondarily liable. |
|
|
A mortgage broker:
a. arranges loans between borrowers and lenders b. is a lender c. buys mortgages in the secondary mortgage market d. buys mortgages and resells them at a profit |
A. arranges loans between borrowers and lenders
|
|
|
All of these transfers can result in the lender's excercising its rights under the due-on-sale clause, based on the rules of Freddie Mac, EXCEPT:
a. recorded land contract b. lease with option to purchase c. unrecorded land contract d. second mortgage |
D. second mortgage
As a result of the federal Garn-St. Germain law, federal lending institutions are permitted to call in or accelerate their loans in the event the borrower transfers title to the real property securing the loan. Any transfer of legal or equitable title (including options or long-term leases) will trigger the due-on-sale clause, with a few exceptions such as transfer between husband and wife. This law does not apply to junior mortgaging, because no transfer of legal or equitable title is involved. |
|
|
Under an FHA graduated payment mortgage, which of the following fluctuates over the term of the loan?
a. interest rates b. monthly payments c. finance charge d. annual rate |
Graduated payment mortgages appeal to younger people who expect their income to gradually increase so they will be able to handle higher payments in later years. Under an adjustable-rate mortgage, the interest would fluctuate.
|
|
|
Discount charges charged on a loan result in:
a. higher yield to the lender. b. longer time period of loan repayment c. lower overall cost to borrower d. higher purchase price in the secondary mortgage market |
A. higher yield to the lender.
*Each point is computed as a percent. One point is 1 percent and two points equal 2 percent. The discount points increase the lender's yield. Borrowers today use points to buy down the interest rate. By artificially lowering the interest rate by paying discount points, the buyer's borrowing power increases. Either the buyer or seller can pay up to six discount points without having a negative influence on the appraisal. |
|
|
What element is peculiar to the sale-lease-back transaction?
a. the seller gets a return on the purchase in the form of rental. b. the property is sold on condition that the new owner lease it back to the seller at the time title passes. c. the buyer keeps capital in inventories, rather than in realty. d. the rental that the seller pays is not income-tax deductible. |
B. the property is sold on condition that the new owner lease it back to the seller at the time title passes.
*The buyer is relatively confident the seller will be a triple-A tenant. Rent is tax deductible as a business expense. |
|
|
A land contract (or contract for deed) and a seller-carrback purchase-money mortgage are similar in that:
a. the seller assumes no financial risk b. the title is conveyed immediately to the buyer c. the seller is the lender d. a mortgage is required |
C. the seller is the lender
*Under a land contract, the seller retains legal title as security, whereas under the purchase-money mortgage, the seller retains no title interest in the property, only the lien interest of a mortgagee. |
|
|
A woman inherited a residence from her father. The property's value at the date of his death five years ago was $117,000. An appraiser hired to recommend a listing price would be primarily concerned with:
a. the $117,000 figure and the average rate of appreciation of residences in the past five eyars. b. the value of similar residences recently sold in the community c. the book value of the dwelling d. the equity at the time of the father's death |
B. the value of similar residences recently sold in the community
*The appraiser would be most concerned with market comparison information. In appraising the residence, neither original cost nor valuation for death tax purposes would have much relevance to the question of what a ready, willing, and able buyer would pay today for the residence. |
|
|
When a property has suffered a reduction in value due to dry rot and termite damage, appraisers refer to such reduction as:
|
Physical Deterioration
|
|
|
When an appraiser adjusts the estimate of a home's value because of a poor floor plan, the adjustment is made because of _________.
|
Functional Obsolescence
|
|
|
Market value is most closely related to _______.
a. comparable price b. replacement price c. income analysis d. reproduction price |
A. comparable price
|
|
|
A post office of unique design and construction is BEST appraised by which of approach?
a. income b. market comparison c. land residual d. cost |
D. cost
|
|
|
Which method of ownership could result in double income taxation?
|
corporation
|
|
|
If the board of directors of a condominium project obtains insurance coverage then __________.
|
The premiums are common expenses
|
|
|
An appraiser compared a house with a detached garage that sold for $150,000 with a detached garage. The appraiser than deduced that a detached garage in that neighborhood was worth $5000. What appraising principle was the appraiser using?
|
Contribution
*The principle of contribution states that the value of any component is what it adds to the value of the whole or what its absence detracts from that value. |
|
|
All of these tenancies would permit partition if the husband and wife cannot agree on the sale of property EXCEPT:
a. joint tenancy b. tenancy by the entirety c. tenancy in common d. tenancy in partnership |
b. tenancy by the entirety
*The marital unit owns the property in tenancy by the entirety, so one spouse cannot seek partition. |
|
|
A husband and wife contact a broker about selling their home. The wife has a number of outstanding debts. Which is true of this property, which is held as tenancy by entirety?
|
The listing broker should get both husband and wife to sign the listing.
|
|
|
What is the name of the legal action one co-owner brings against the other in order to force the sale of his or her interest in the property?
|
Partition
|
|
|
A woman and her brother hold property in joint tenancy. What results if the woman deeds her part to herself and her husband?
|
The joint tenancy is severed.
*The joint tenancy is severed on the transfer, with the brother owning one-half undivided interest and the husband and wife owning the other half, which could be held as tenancy by the entirety, joint tenancy, or tenancy in common. They are tenants in common as to their respective half interests. |
|
|
If an area is rezoned industrial and a commercial establishment is given permission to continue its operation in that area, this is an example of
|
Non-conforming use
|
|
|
An owner wants to extend the side of her house beyond the setback boundary. What must she obtain?
|
A Variance
|
|
|
In estimating the value lost by a structure due to physical deterioration, the appraiser placest greatest emphasis on the:
|
observed condition of the building
|
|
|
All of the following are examples of external obsolescence EXCEPT:
a. population density b. direct effect of the elements c. zoning d. nearby highway realignment |
b. direct effect of the elements
|
|
|
A factor by which the appraiser multiplies the total rental income from a property as an estimate of its value is the:
|
gross income multiplier
|
|
|
Highest and best use is concerned with all of the following EXCEPT:
a. net yield to owner b. utility of surrounding area c. relationship to regional development d. interest rate on investment loans |
d. interest rate on investment loans
|
|
|
The collection of data and the analysis of different approaches to value is known as:
|
reconciliation
|
|
|
In making an informal appraisal for listing purposes, a broker finds comparable residences that recently sold for $92,000 - $82,000 - $103,000. The broker should advise the seller that the residence should be listed at which amount?
|
Price of the most similar property.
|
|
|
Assume that three rental buildings had sales prices and rents as follows: $107,250 & $16,500; $105,625 & $16,250; $112,125 & $17,250. What value would most likely be indicated on a similar building if rents were $16,750.
|
$108,875
Divide the sales price by the rent, then multiply your answer by the rent of 16,750. Based on the three properties, the gross rent multiplier is 6.5; in other words, the sales prices were 6.5 times the annual rent. |
|
|
Your client plans on getting divorced shortly before closing on a property she and her boyfriend just purchased and asks you about how to hold title to the property. You should suggest she:
|
Consult an attorney
|
|
|
Assume the contract for the sale of real property includes the sale of certain removable items, such as paintings and furniture. Upon delivery of the deed, the seller should also deliver:
|
A bill of sale
|
|
|
As defined in local zoning ordinances, the distance between lot lines and improvements is known as:
|
setback
|
|
|
A recorded notice of a current lawsuit involving title to real property is termed a(n):
|
lis pendens
|
|
|
When money in a pending purchase of real property is held in escrow, the broker can obtain out of escrow an advance on earned commission if and only or only when ______________.
|
both buyer and seller give their written consent
|
|
|
What type of reduction in value is present when a hydrogen gas storage tank is located next to a property?
|
external obsolescence
|
|
|
Define appurtenance:
|
In real property law, this describes any right or restriction which goes with that property, such as an easement to gain access across the neighbor's parcel or a covenant (agreement) against blocking the neighbor's view. Any subsequent owner has the same right or restriction.
|
|
|
Define easement:
|
An easement gives one party the right to go onto another party's property. That property may be owned by a private person, a business entity, or a group of owners. Utilities often get easements that allow them to run pipes or phone lines beneath private property
|
|
|
The taking of private property for public use without compensation is authorized under the principle of:
|
Police Power
|
|
|
The difference between police power and eminent domain can BEST be determined by whether:
|
any compensation was paid to the owner
|
|
|
A taxpayer is allowed to deduct repairs made to:
|
property held for investment
|
|
|
A landowner builds a small factory in the city. After the factory is built, the city adopts a zoning ordinance in which the area in question is designated a residential area. Which statement about the owners alternative is true?
|
He may continue to operate as a nonconforming use.
|
|
|
All of these condominium fees are most likely to be paid by a condominium owner EXCEPT:
a. recreation fees b. mainetnance fees. c. stock-transfer fees d. hazard insurance |
C. stock-transfer fees
|
|
|
What document is prepared to evidence that personal property is pledged to secur a loan?
|
Chattel mortgage
|
|
|
Assume that a buyer is making fully amortized payments of $600 per month on a purchase-money mortgage. Which statement is TRUE?
a. The amount applied to principal decreases each month. b. the interest payment stays the same. c. interest and principal payments are constant d. the amount applied to interest decreases each month |
D. the amount applied to interest decreases each month
|
|
|
A buyer purchases a fee simple property for $70,000 by way of assuming a first mortgage of $50,000, paying $10,000 in cash and having the seller take back a purchase-money second mortgage for the balance. There is an existing $5000 second mortgage on the property to be paid off. At settlement (close of escrow), what is the CORRECT order in which to record documents?
a. Assumption mortgage, deed, purchase-money second mortgage b. deed, release of existing second mortgage, assumption agreement, purchase-money second mortgage c. purchase-money second mortgage, deed d. release of second mortgage, deed, purchase-money second mortgage |
The existing second mortgage will be paid off, so a release or satisfaction piece must be recorded. Nothing need be recorded concerning the assumption because the obligation to assume will be stated in the deed. This is recorded an instant before the purchase-money second mortgage.
|
|
|
One is seized of property when he or she:
|
is the lawful owner
|
|
|
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(n)
|
Balloon payment
|
|
|
When one has permission to use land but has no other rights, one has a:
|
license
|
|
|
A party wall would be found:
|
along a property line
|
|
|
Which term BEST describes a modern form of real property ownership that involves the guaranteed right of occupancy and use of a specific portion of each year for either a fixed # of years or forever?
|
Time-sharing
|
|
|
If probating an estate, which of the following is the last to receive payment, if any?
|
The heirs
|
|
|
The word intestate MOST nearly means to die:
|
without a will
|
|
|
The largest estate or ownership in real property is a(n):
|
Fee simple estate
|
|
|
Which statement provides the greatest assurance that you are getting fee simple ownership?
|
The owner can furnish title insurance.
|
|
|
Carlos deeds a property to Julio, who fails to record. Carlos subsequently deeds the same property to Augusto. Which of these statments are TRUE?
a. Julio owns the property based on him having it first b. Augusto is the owner if he first records without notice of Julio's rights c. Augusto and Julio are now tenants in common d. Carlos remains the owner because both deeds are void |
B. Augusto is the owner if he first records without notice of Julio's rights
|
|
|
Which of the following is typically personal property?
a. gas and mineral rights b. water rights c. a beneficiary's rights under a real property d. trees on a farm |
C. a beneficiary's rights under a real property
|
|
|
An example of personal property is:
a. household furnishings b. wall-to-wall carpeting c. built-in dishwasher d. garbage disposal |
A. household furnishings
|
|
|
A licensee is concerned about a construction project going on next to a property she is selling. Where would she be BEST advised to go to clarify any question about an encroachment?
|
Licensed surveyor
|
|
|
Which lien normally takes priority over all other liens?
|
Real estate property taxes
|
|
|
A landowner wants to give her neighbor the right to cross over her property, but the landowner does not wish to make this a permanent, irrevocable right. The broker should advise the owner to consider granting what type of right?
|
License
|
|
|
An abstract of title is best described as a(n):
a. brief digest of the title to a particular property b. summary of each deed in a title search c. appraisal of the lands and the improvements d. summary of all improvements and encroachments on the property |
A. brief digest of the title to a particular property
|
|
|
In using the gross rent multiplier, Comparable A has a value of $88,000 with a monthly net income of $880; comparable B is $90,000 with a monthly net income of $900; Comparable C is $95,000 with a net income of $950. If you receive $930 a month net income, what is your comparable value?
|
A=88,000 divided by 880 = 100
B=90,000 divided by 900 = 100 C=95,000 divided by 950 = 100 Therefore, the average gross rent multiplier is 100 + 100 + 100 = 300 divided by 3 (statistical mean) = GRM of 100. Gross rents are $930 (GR) x the multiplier (M) of 100 = $930 x 100 = $93,000 |
|
|
What is a subject-to-sale offer?
|
A Subject to Sale clause or Special Clause Sale is simply when the Buyer puts an Offer in on a property, but the Offer to Purchase has the condition that the Buyer first needs to sell their home.
If the Seller accepts an Offer with that condition, the listing remains active on MLS, and will continue to be marketed by the Listing Agent. The status does not change to Pending or Conditionally Sold. However, the remarks field of the listing must note that there is a “Special Clause in effect” or “Subject to Sale Offer”, as well as identifying the length of the notice (i.e. 24, 48, or 72 hours) If the Seller receives another Offer on their property, the Buyer is notified that they have 24, 48, 72 hours (or whatever time frame was agreed upon in the Contract) to waive their Subject to Sale clause and proceed with the purchase. If the Buyer does not, or is unable to waive the condition, the Seller can then accept the new Offer after the specified time has elapsed. |
