2. Which of the following would not terminate an easement?
prescription creates an easement by constant use of propert without permission for the required number of years
merger and acquiring te adjacent property mean the same thing
abandonment also terminates an easement
4. Mark and Bob are joint tenants in an investment property. One wants to sell, the other does not. How can this be settled?
A: partition is a voluntary or court ordered division of property that can end joint tenancy
annexation is the process of personal property turning into real property
defeasance is a clause in a mortgage or lease to cancel a certain right
1. A court order directing the county sheriff to seize and sell property of a debtor to satisfy a lien is:
...
6. In discussing property taxes, which of the following statements would be false?
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9. Which of the following statements about foreclosure is false?
no nrequirement that borrower receive notice of foreclosure, only that the lender sends it 21 days before the foreclosure SALE.the notice must then be posted at the door ofthe county courthouse and filed in the county clerks office
10. The standard policy of title insurance:
sandard title policy protects the buyer. a lender might be protected by a mortgagees or lenders policy
11. Which of the following is NOT covered by the standard title insurance policy?
standard doesnt cover survey or boundary problems
12. What is the main disadvantage to a lender who chooses to accept deed in lieu of foreclosure?
in deed in lieu of foreclosure, the lender must accept responsibility for all existing liens on the property.it is less expensive,k quicker and less complicated than foreclosure
14. What is the distance between the lot line and the building line called?
setback. building line is sometimes called thesetback line. gross area is all sq footage under the roof, plottage is increased price and usability from combining two or more pieces of landinto one, and progressions is an increase in prop value due to cond
18. A commercial property has potential gross rents of $20,000 per month and an occupancy rate of 80%. The expenses per year are $60,000 and the market value is $1,100,000. What is the owner's rate of return?
178k
27. Two brothers have inherited the family farm. The brothers are 19 and 16 years old. The 19 year old does not want the property and deeds his share to the 16 year old. The 16 year old sells the property. At this point the sales contract is:
voidable at option of minor
24. Mary is a sales agent at ABC Realty. She is sponsored by her broker, John. Mary sells 123 Main St., a property listed by XYZ Real Estate, to her buyer- client Jim. The broker at XYZ Real Estate is Marcos. The transaction goes to closing, and the commi
only ocmmission can be paidfrom abc
TERMINATED VS VOIDABLE VS VOID VS UNENFORCEABLE
voidable(at the option of xyz) = one party can cancel
28. A buyer has defaulted on a sales contract. The seller has agreed to keep the earnest money deposit as compensation. What remedy has the seller agreed to?
remedy is liquidated damages. if a buyer defaults the seller can keep the deposits. there isno partial performance in a sales contract- property is sold, or not sold the seller isnt suing the buyer to force the buyer to perform or buy the property. money
29. A listing agreement is
a unilateral contract. IF the home is sold, THEN the seller pays commission. also termintaed by death of the broker or seller. not of the salesperson
37. Many states require a seller's disclosure of property condition. Which statement about a seller's disclosure is FALSE?
sellers responsibility is forthe accuracy of the disclosure
brokers responsibility is for discovering and disclosing all problems in areas accesible for visible inispection
brokers role is to disclosure and to encourage honesty and fulldisclosure. broker
38. Which of the following statements about radon is false?
radon is harmful to all. radon is colorless n odorless n enters through foundation.hud doesntrequire radon testing for fha loans
39. A seller tells the listing agent that the home has 3400 sq. ft. The listing agent should:
tax records and appraiser numbers are a good resource to confirm true size. verify all info from seller. broker willnot be able to confirm sellers info.
32. A sales agent has negotiated a listing with a commission rate of 5.5% with 3% going to the selling broker and 2.5% going to the listing broker. The property sells for $365,000. The listing sales agent receives 60% of her broker's commission. How much
5475
49. All of the following are penalties for violation of the Federal Fair Housing Act except:
(a) Fines
(b) Up to one year in jail
(c) Injunctions
(d) Assessment of attorney fees
violation of fair housing laws is a civil offense. criminal penalities arent used. fines, injunctions and ssessment of attorney feesare all possible penalties
52. A physically handicapped tenant has modified an apartment to meet his needs at his own expense. His lease is almost up and he plans to move. The landlord wants the apartment restored to its original condition. What is true?
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56. A sales license holder is working with a minority couple to find a home for them. The license holder is only showing the buyers homes in minority neighborhoods. The license holder is guilty of:
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57. A sales license holder has advertised a property. Her ad states that the property is in a family- oriented neighborhood and can be purchased for $1,100 a month. What is wrong with this advertisement?
(a) It violates Federal Fair Housing laws
(b) It vi
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60. According to the Equal Credit Opportunity Act, a lender cannot deny credit if the borrower's sole source of income is:
govt service
61. In what document would you find the loan amount and an amortization schedule?
(a) The Deed of Trust
(b) The lien
(c) The mortgage
(d) The note
note is instrument for debt and a promise to pay it. all details including amortization schedule are found in the note. deed of trust, or mortgage is the borrowers pledge or real property as security for the note
in short, the note
70. The landlord pays the expenses of the property. The tenants pay rent plus utilities. What type of lease is this?
(a) a net lease
(b) a percentage lease
(c) a graduated lease
(d) a ground lease
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71. Why is commingling illegal?
(a) To protect the broker from claims by creditors of the clients
(b) To protect clients' funds from claims by creditors of the broker
(c) Due to the difficulty of maintaining accurate records of clients' funds
(d) To preve
protects clients funds from being seized by a creditor of the broker.broker must keep accurate written records for all funds held. funds in the escrow account donot earn interest
72. A business organization in which a member or manager is not generally held liable for debts, obligations or liabilities of the company is called:
llc is where a member or manager is not generally liable forthe debts of the company. a sole proprietor has total liablity and in s corp,shareholders have limited liability
75. A license holder sponsored by a broker is:
(a) a special agent for the broker
(b) a universal agent for the broker
(c) a general agent for the broker
(d) a limited agent for the broker
c
65. A homebuyer plans to purchase a home using a $200,000 loan with a loan factor of $5.30. The tax and insurance payment on the property is $900 per month. What income does the buyer need to qualify for the loan if lenders are qualifying at 28%?
(a) $7,5
answer is 7000
1. a court order directing the county sheriff to seize and ell property of a debtor to satisfy a lien is
answer: writ of execution. used to enforce payment of a lien.
injunction is a court order to stop behavior or a practice. lis pendins is a legal noice that a lawsuit has been filed but not yet heard in court and a jedgement is a general lien o a property
police power vs deed restrictions
deed restrictions are private controls of land use rather than govt controls.police power gives govt right to regulate and control land use through zoning and building codes, and to regulate special land areas like coastal property, floodplains, and wet l
zoning laws if youre already there
if your property vilates new zoning laws, it is grantfathered in and considered non conforming use non confroming use is permanent and he will be able to keep his business at that locaiotn. doesnt require variance, which is permission to violate the rules
principle of conformity
properties have max value when surrounded by similar properties
what do these laws govern
1. statute of frauds
2. statute of lmitations
3. law of agency
4. sherman anti trust act
1. real estate contracts
2. sets time limit
3. governs relationship between agent and a client
4. passed to prohibit monopolies in general. in re it makes it so commissions are negotiable, not fixed or standard
money damages vs suit for specific performance vs liquidates damages
...
unilateral vs bilateral agreement
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megans law
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enviornmental protection agency vs enviornmental protection act
enviornmental protection agency enforces cercla. there is no environmental protection act
what should be disclosed regarding a property
murder, alleged haunting, and structrual problems that result in death on the property must be disclosed.
e&o insurance vs general liability insurance vs health insurance vs homeowner warranty
e&o protect if agent makes a mistake thats harmful to a client. general liability protect property owner if someone else is injured. health insurance protects the policy holder, not vistiors to property. homeowner warrany protects owner if something needs
if an unlicensed owner who has a 3 family property, a broker isnt involved, and she doesnt discriminate in advertising,who canshe discrimnate against?
for any reason BUT color/race
ada requires
the employment of qualified applicants regardless of disability. there is no equal opportunity emplyment act. title vii is the civil rights act of 1968.civil rights dont address emplyment
panic peddling vs channeling/steering
panic peddling is persuading someone that something bad will happen and they might as well sell
the other means taking buyers to or away neighborhoods based on a protected category
landlord owns a property, and john a blind tenant wants tolive there. he needs aguide dog. does heneed written permission?
landlords must allow a visually impaired tnant with a guide dog to keep said guide dog. tenant doesnt need written permission
1.arm
2. term loan
3. budget loan
1. allows buyer to adjust his rateif rates goup or down
2. fixed rate and payments of interest only
3. lender requires borrower to pay not only principal and interest, but also 1/12th annual property tax and 1/12th annual homeowner premium as part of mont
what has the least impact on a credit rating
1.shortsale
2.foreclosure
3. assumption subject to
4. straight assumption
1. can result in a loss as much as 200 points
2. can impact credit up to 7 years
3. seller remains liable even tho no longer owns property
4. relaeses seller form liability for the loan being assumed by the buyer
leases
estate for years: starting and end date
periodic tenancy: auto renews until one party gives notice to term
estate at will: termed by either party without notice
more leases
net lese: tenant pays rent plus some of the expenses of the property
graduated lease: scheduled rent increases based on expected business growth
ground lease: lease of land only
percentage lease: part or all of the rent is determined by the receipts of th