A tenant farmer built a chicken coop and a tool shed. These buildings belong to the
Tenant
A farmer has posted a number of "No Trespassing" and "No Hunting" signs on his property. Which "stick" in the bundle of rights gives the farmer this authority?
Exclusion
The resolution of a fair housing complaint by obtaining assurance that the respondent will remedy the violation is called
Conciliation
Land, mineral, and air rights in the land are included in the definition of
Real Property
A new owner received the right to use a parking space in the multi-unit building where she purchased a condominium. This right is an example of
An appurtenance
A landlord refuses to rent a vacant apartment to a couple with two small children because he is concerned the children will disturb the sick and elderly woman in the apartment next door. Which of these is most likely TRUE?
The refusal constitutes a violation of the Fair Housing Act because it discriminates on the basis of familial status
Complaints of discriminatory housing practices filed with the HUD will be referred to a local enforcement agency if
The state or municipal law is substantially equivalent to the federal law
Which of these are exempt from the federal Fair Housing Act?
Owner-occupied buildings with no more than four units
The Fair Housing Act does NOT prohibit discrimination on the basis of
Sexual preference
Property management, appraisal, financing, and development are all
Separate professions within the real estate industry
An occupancy requirement is exempt from familial status protection under the Fair Housing Act if the housing is intended to be occupied by
Persons 62 years of age or older
Mobile home, rather than manufactured housing, is the term used for a factory-build home that was built before
1976
Under the Civil Rights Act of 1968, what is the limit to file a housing discrimination complaint with HUD?
1 year
All of these factors can affect the supply of real estate EXCEPT
Demographics
A seller asked a real estate professional to draw up several documents relating to seller financing. Under these circumstances, the real estate professional should
Refer the seller to an attorney
The developer added sewer lines and utilities and built two streets. What are these items called?
Improvements
A person who advises a real estate client who is making a purchase to use or invest in real estate is called
A counselor
When the population of a town suddenly increases, which of these is MOST likely to occur?
Real estate prices will increase
Which of these laws extended housing discrimination protections to families with children and persons with disabilities?
Fair Housing Amendments Act of 1988
The most important economic characteristic of land is
Location
All of these are examples of government policies that can affect the real estate market EXCEPT
A shortage of skilled labor or building materials
Under what conditions can someone refuse to rent to an African-American on the basis of race?
Never
All of these people are considered members of protected classes EXCEPT
A person convicted of the manufacture of distribution of illegal drugs
One of the provisions of the Fair Housing Amendments Act of 1988 is
A change that made the penalties for violations more severe, and it also added additional damages
Growing trees, fences, and buildings are all considered
Real estate
A real estate broker sends a yellow flyer to all the homeowners in a neighborhood. The flyer contains a reprinted article from a local newspaper describing the future relocation plans of various employers in the region and this statement, printed in bold
Has committed no offense
A man particularly liked the ornate brass lighting fixtures in a woman's house and immediately made an offer, which the woman accepted. On moving day, the man discovered that the woman had replaced all the ornate brass lighting fixtures with plain steel o
Man: "Lighting fixtures are normally considered to be real property
A woman planted a rose bush on her property and plans to dig it up and take it with her when her house is sold. The sales contract explicitly excludes the rose bush from the sale. This provision is necessary because the rose bush is considered to be
Real estate
The end of a meters-and-bounds land description is always a
Point of beginning
A man is willing to pay $1200 per acre. He is planning to buy the SE � of the SE � of the SE � of Section 11. How much will he pay for the land?
$12000
A man sells 6 acres of prime development property to a woman for $2.25 per square foot. How much did the woman pay?
$588060
What kind of ownership do the horizontal property acts regulate?
Condominiums
The homestead exemption in a town of $15000. Four years ago, a man purchased a home for $58000 and then experienced hard times. At a court-ordered sale, the man's property is purchased for $60000. If the man has an outstanding mortgage balance of $35000 a
$15000
If the government acquires privately owned real estate through a condemnation suit, it is exercising its power of
Eminent domain
Which of these must exist for an appurtenant easement to exist?
Two adjacent parcels, different owners
When two or more individuals decide to buy a property together, it results in a
Co-ownership
A man creates a trust to pay for a broker's real estate education. The trust is operated by a woman, who makes payments on behalf of the broker directly to the real estate school. Based on these facts, which of these statements BEST characterizes the rela
The man is the trustor, the broker is the beneficiary, and woman is the trustee
Two women own an apartment building together as joint tenants. They share equally in the expenses and profits. One day, one of the women decides to end the relationship. If she sells her interest to a man by signing and delivering a deed, which of these s
The man and the remaining woman will be tenants in common
Which of these is defined as a claim, charge, or liability that attaches to real estate?
Encumbrance
What form of ownership is employed when one person transfer ownership to someone else to hold and manage for a third person?
Trust
An elderly man left the family home to his second wife with the provision that when she dies, the home goes to a son by his first wife. The second wife owns a bundle of rights but does not own the right to
Will the property
For as long as anyone can remember, neighbor families have used a footpath to get to the river. Recently, the current owner erected a fence across the path. Which of these easements might the neighbors claim, which would require him to remove the fence?
Easement by prescription
In some states, a husband cannot sell his property unless his wife also signs the deed. The wife's interest is called
Dower rights
Which township section number is directly north of Section 7?
Section 6
The basic units of the rectangular survey system are the
Township squares
The state requires enough land to build a four-lane highway. For the state to acquire the needed land, the state must do all of these EXCEPT
Reimburse the property owner for the amount that the property owner paid for the land.
Mike, Rebecca, and Noah agree to purchase and operate a property as a permanent investment. Mike and Rebecca each contribute $50,000. Noah contributes $30,000 and agrees to run the day-to-day operations of the business, which they call "Property Group Par
Limited partnership
Three brothers bought a farm together, and the deed listed only each of their names. What form of ownership are they presumed to have taken?
Tenancy in common
In the past, a farm was typically a quarter section, or
160 acres
A will provided that the local banker take care of the deceased person's estate until the children reach age 25. What kind of trust is this?
Testamentary trust
A metes-and-bounds description is NOT required in rectangular survey system descriptions when
A tract is too large to be described by quarter sections
A company is a legal entity, created by charter under the laws of the state. The company is managed and operated by a board and is permitted to buy and sell real estate. When one of its directors dies, the company continues to operate. Because of its stru
Corporation
All of the systems are used to express a legal description EXCEPT
Benchmarks
Air lots, condominium descriptions, and other vertical measurements may be computed from the U.S. Geological Survey
Datum
A man owns a large undeveloped parcel of land on the side of a hill. The property borders a road on the lower edge. The owner sells the lower portion of the property to a woman, and she builds a home on it. Several years later, the owner sells the upper-p
By necessity
In a large highrise condominium, each unit is owned by individual owners. The elevators, parking garage, and swimming pool are called
Common elements
Which of these MOST accurately describes the dimensions of a quarter-section?
1/2 mile by 1/2 mile
The verification that the grantor's signature is both genuine and voluntary is
An acknowledgment
A bargain and sale deed contains how many express warranties?
0
A woman purchased property from a man. Shortly after closing, the woman discovered that there were serious flaws in the title that made it unlikely that the property could be resold in the future. What can she do now?
Because the woman has accepted the deed, her only recourse is to sue the man under any covenants contained in the deed
A history of all recorded liens and encumbrances is revealed in the
Abstract
A title insurance policy that protects the interest of a mortgagee is called
A lender's policy
The person who prepares a certificate of title is the
Abstractor
To serve as public notice, a deed is recorded in the
County, or in some states, the town where the property is located
In front of witnesses, a woman says to a man, "I never made a will, but I want you to have my property when I die." If the man becomes the owner of the property, it is because the state recognizes what kind of will?
Nuncupative
Five years ago, a lien was recorded against a parcel of property by a construction company. When the lien was recorded, a man was the owner of the property and a woman was an active partner in the construction company. The property is in county A, but the
The woman has actual notice of the lien but not constructive notice, because of the mistake in recording.
The granting clause in a special warranty deed generally contains the words
Grantor remises, releases, alienates, and convey
All of these are necessary to a valid deed EXCEPT
The grantee's signature
The transfer of any interest in a parcel of real estate is typically in a document called the
Deed
In one state, transfer tax is $1.20 for each $300 (or fraction of $300) of the sales price of any parcel of real estate. If a seller's property sold for $250,000, what will be the amount of the transfer tax due?
$1000.80
A person who is designated by the principal in a broad range of matters related to a particular transaction or activity is a
General agent
What is the main value of a multiple listing service (MLS) for sellers?
It exposes the property to a greater number of prospective buyers
The seller's agent has certain duties to the client-principal. All of these are duties of the principal EXCEPT
Suggesting marketing strategies to the agent
Which of these statements could be negligent misrepresentation?
The uneven floors just mean that the building dates to colonial times
The broker was hired to represent the seller, to market the property, and to solicit offers to purchase. The broker is called a
Special agent
A broker listed a seller's home for $425,000 with a 4% commission, plus $3,000 for advertising costs. The buyer offered $380,000, and after several counteroffers, finally agreed to $400,000. What was the total cost to the seller?
$19000
Although state laws vary regarding internet advertising, which of these is a typical element of state policy or law?
Ads must contain true, current information and avoid misleading the potential client or customer
The primary purpose of the Uniform Electronic Transactions Act (UETA) is to
Remove barriers in electronic commerce that would otherwise prevent enforceability of contracts
In real estate, a sales associate is always
Licensee who performs real estate activities on behalf of a broker
A house was the scene of a drug arrest and a violent murder last year. When it was listed on the market, many people considered it to be a
Stigmatized property
The agent's obligation to use skill and expertise on behalf of the principal arises under which of these common-law duties?
Care
A real estate broker had a listing agreement with a seller that specified a 6% commission. The broker showed the home to a prospective buyer. The next day, the buyer called the seller directly and offered to buy the house for 5% less than the asking price
The broker was the procuring cause of the sale and is entitled to the full 6% commission
A broker who owns a realty agency does not permit his salespeople to charge less than an 8% commission in any transaction. After reading a newspaper article about this realty agency's policies, the broker of another realty agency decides to also adopt the
Neither broker has committed an antitrust violation
When a broker places trust funds of others into the company's operating account and then withdraws funds for the firm's use, what illegal practice has taken place?
Conversion
Even if a consumer has requested placement on the National Do Not Call Registry, a real estate professional may call the consumer up to how many months after the consumer's last purchase?
18
What is a seller's agent required to disclose to prospective buyers about material defects in the property?
All information about material defects that the agent knows or should know
An individual who is authorized and consents to represent the interests of another person is
An agent
Why have real estate license laws been put into effect?
To protect the public and establish standards of professionalism
All of these are ways for a broker to charge for services EXCEPT
Standard community rate
An arrangement to sell one product only if the buyer purchases another product as well is called
A tie-in-agreement
A broker has an agency agreement to represent a seller in the sale of a house. The agreement's expiration date is June 10. On May 5, the house is struck by lightning and burns to the ground. The seller, overwhelmed by grief, dies. Based on these facts, wh
The agency agreement was terminated by the fire, although the seller's death also would have done so.
A seller listed and sold her property for $325,000. She agreed to pay the listing broker a 7% commission. The listing broker offered a listing 40/60 selling split to any cooperating broker who sold the property. How much did the seller have to pay in comm
$22750
All of these are requirements for independent contractor status used by the Internal Revenue Service EXCEPT
Specific hours stated in a written agreement
The buyer and seller agreed to a closing date of September 7 and that time is of the essence. Which of these is the closest meaning of the phrase?
Closing must be on or before September 7
A buyer makes an offer on a house, and the seller accepts in writing. What is the current status of this relationship?
The buyer and seller have an express, bilateral executory contract
A broker just explained the value of signing an exclusive-agency listing with a broker who is a member of the multiple listing service. The broker is trying to overcome the misconceptions of the seller who asked about
An open listing
What information is NOT needed for a listing agreement?
The age of the seller
The term statute of limitations is BEST described as the limitation on the
Time period in which parties to a contract may bring a lawsuit to enforce their rights
A woman is buying a man's house and wants to take over the mortgage. The lender releases the man from the obligation, substituting the woman as the party liable for the debt. This new agreement is called
A novation
Any of these will terminate a listing agreement EXCEPT
An offer to purchase
All of these are essential to a valid real estate sales contract EXCEPT
An earnest money deposit, held in an escrow account
A 14-year-old comes into a brokerage office and says, "I want to make an offer on this property. Here is a certified check for 10% of the asking price. Please help me with the paperwork." Why should the broker be concerned?
The sales contract may be disaffirmed by the minor
A seller accepted all of the terms that the buyer offered, making only one small change in the amount of the earnest money. At the moment, these agreements constitute
A counteroffer
Additional conditions that must be satisfied before a sales contract is fully enforceable are called
Contingencies
It is the broker's office policy that salespeople keep 60% of the firm's share of any commission earned from any property they list. The salesperson listed a property that was later sold by a cooperating broker for $285,000. If the two brokers agree to sp
$5557.50
In most states, a broker's license can be suspended or revoked if the broker
Takes a listing that does not include a date on which the listing expires
If a contract does NOT contain a time or date for performance, the act should be done within
A reasonable time
What kind of listing agreement is illegal in many states because of the potential for conflict of interest between a broker's fiduciary responsibility to the seller and the broker's profit motive?
Net listing
If a man allows a woman to back out of a contract, returns the earnest money to her, and both are back to the positions they held before the contract, the contract has been
Rescinded
A listing agreement is
An employment contract between the seller and the broker
An example of personal property that a seller may leave with the property and, therefore, must be identified on the listing agreement is
Stacked firewood
When may a broker's agreement to represent a property buyer be terminated?
The broker and buyer mutually agree to cancel the agreement
A buyer and a seller enter into a sales contract for the sale of a home. The seller changes his mind at the last minute, and the buyer suffers a financial loss of $1,500 and must rent a home in which to live. Unless the contract provides otherwise, all of
The seller is not liable because the buyer should not have incurred the $1500 cost before the sale
In a buyer representation agreement, the broker acts as the agent of the buyer and must protect the buyer's interests
At all points of the transaction
Which of these is an example of a unilateral contract?
Option
The amount of the earnest money in a sales contract should
Discourage the buyer from walking away from the agreement
Which of the following is true about cooperatives
The units share common walls within a larger building
The two characteristics of real estate governs the way the market reacts to the pressures of supply and demand:
Uniqueness and immobility
A shortage of skilled labor is a factor that affects
Supply
Which of the following would not affect demand
Government policies
Riparian rights allow the owner
Access to the water's edge
A bill of sale is used to transfer the ownership of
Personal property
One of the physical characteristics of land is
Nonhomogeneity
The term real estate includes
Permanent man-made structures
The provisions of the Fair Housing Act apply
In all states
If someone feels they have been discriminated against when trying to obtain housing, they can file a complaint to HUD within what time frame of the alleged act?
One year
When a landlord claims "no vacancy" exists when there really is a vacancy in a building, this is known as
Steering
If a person believes illegal discrimination has occurred, they may file a complaint with HUD within
12 months
Escheat
Provides that the ownership of real estate will revert to the state (or county) in which it is located when its former owner dies without a will (intestate) and has no heirs capable of being discovered by the state
Governmental powers (PETE), or limitations on the ownership imposed by the government for the general welfare of community
Supersede rights of interests of the individual owner; Can include building codes; Can include the right of the government to take privately owned real estate for public use (all of these are true)
Easements can be terminated
Abandonment, release, failure of purpose
Your neighbor uses your driveway to reach his garage, which is on his property. Your attorney explains that ownership of the neighbor's real estate includes an easement appurtenant giving him the right to do this. Your property is the
Servient tenement
One primary difference between an Condominium and a Cooperative is
The purchaser is a fee simple owner who receives a deed to individual ownership of an individual unit
Community property rights means
Husband and wife are considered equal partners, with both signatures required for conveying or mortgaging community property
Tenancy in common means
Each owner is entitled to use of the entire property
When all partners participate in the partnership and share full liability, this is known as a
General partnership
A point of reference for measuring elevations is called
Datum
22. Metes-and-bounds descriptions within the rectangular survey system are used in the following:
When the tract is irregular; When the tract is too small to be described by quarter sections; When the tract does not follow the lot or block lines of recorded subdivision or section, quarter-section lines, or other fractional section lines (all of these)
The W � of the NE � of SE � would describe how many acres?
20
Unlike surveys and survey sketches, a spot survey shows
The shape of buildings on a lot
The covenant of quiet enjoyment means
The grantor assumes responsibility for protecting the title against the claims of third parties
The type of deed that provides the least protection to the grantee
Quitclaim deed
The covenant of seisin means
The owner has full ownership and the legal right to convey the title
Deeds that are exempted from the transfer tax include:
Gifts; Deeds by charitable, religious, or educational institutions; Deeds securing debts or releasing property as security for a debt (all of the above)
An abstract of title does NOT provide evidence of title unless it is accompanied by a(n)
Attorney's opinion of title
All of the following are true regarding public records EXCEPT they
Guarantee marketable title
A buyer took delivery of the deed to his new house but neither recorded the deed nor took possession of the property. Under these circumstances, the
Buyer's interest is not fully protected against third parties
The recordation of a warranty deed
Gives constructive notice of an individual's interest
The broker's commission:
a. Is set by uniform commission rates
b. Is set by federal law
c. Is always negotiable
d. Is set by state law
3 only
The listing and the selling broker agree to split a 7 percent commission fifty-fifty on a $186,900 sale. The listing broker gives the listing salesperson 30 percent of his commission, and the selling broker gives the selling salesperson 35 percent of his
$2289.53
Each of two brokerage companies claimed full commission for the sale of a property that was listed by both of the firms under open listing agreements. The broker who is entitled to the commission is the one who
Was the procuring cause of the sale
If a consumer has established a business relationship with a real estate professional and is on the "do not call" registry, a real estate professional may call the consumer for up to how many months after that consumer's last purchase, delivery or payment
18 months
The duty of loyalty obligates the agent to
Exercise skill and knowledge on the principal's behalf; Obey the principal's instruction; Report the status of all funds received (all of these)
Exaggeration of a property's benefits is called
Puffing
Upon discovering a latent defect in a property, the licensee should discuss the problem with the seller and then
Inform any prospective buyers of the defect
Two salespeople working for the same broker obtained offers on a property listed with their firm. The first offer was obtained early in the day. A second offer for a higher purchase price was obtained later in the afternoon. The broker presented the first
The broker has no authority to withhold any offers from the seller.
The individual who hires and delegates to the agent the responsibility of representing his or her interests. This may be the buyer, seller, owner, landlord, or tenant
Principal
A broker sold a residence for $565,000 and received $31,075 as commission in accordance with the terms of the listing agreement. What was the broker's commission?
5.5%
The final decision for the asking price for a property should be made by
Seller
Last month a broker took a listing on a property. She now learns that her client has been declared incompetent by the court. Her listing now is
Terminated
Under which listing agreement can owners of listed property sell the property on their own without having to pay the listing licensee a commission?
Both exclusive-agency listing and open listing
A property owner lists his property for sale with a licensee. During the listing negotiations, he tells the licensee that he wants $138,000 for the property and anything above that amount the licensee can keep as a commission. A listing with this type of
Net listing
A buyer and a seller sign a contract to purchase. The seller backs out, and the buyer sues for specific performance. What is the buyer seeking in this lawsuit?
Transfer of property
The buyer of real estate under an installment contract
Has only equitable interest in the property's title
An option
Binds the optionor for a specified time
The essential elements of a contract include all of the following EXCEPT
Signatures of the parties
A woman was the owner of a parcel of property. When she defaulted on her loan, the trustee immediately sold the property to recover the debt. The trustee acted under the terms of the security instrument. Based on these facts, which of these statements is
Exercise of this power of sale clause is an example of non-judicial foreclosure
The market value of an undeveloped parcel is $40,000. Its assessed value is 40% of market value, and properties in its county are subject to an equalization factor of 1.50. If the tax rate is $4 per $100, what is the amount of the tax owed on the property
$960
Basic form homeowners insurance policy provides property coverage against
Fire, lightning and smoke damage
Term that refers to a lender charging an interest rate that is higher than that permitted by law?
Usury
Which of these is a general, statutory, and involuntary lien on both real and personal property?
Federal tax lien
A borrower defaulted on his mortgage loan, leaving an unpaid balance of $95,000. After receiving only $85,000 from the sale of the property, the lender filed for a
Deficiency judgement
A town wants to construct new concrete curbs in a residential neighborhood. How will the town most likely raise the money necessary for the improvement?
Special assessments
A document that indicates that a loan has been made is called a
Promissory note
Which of these is an example of a specific, voluntary lien?
Mortgage lien
The woman could have exercised her statutory right of redemption at any time prior to the trustee's sale of the property. The difference between the interest rate that the lender charges and what the investor demands can be made up by charging
Discount points
A man and a woman are married, 65 years old, and retired. They have almost $800,000 in equity in their home, but they don't have enough cash to travel as they have always dreamed of doing. The couple should consider which of these financing alternatives?
Reverse mortgage
Which of these characteristics apply to a real estate tax lien?
Specific, involuntary lien
All of these are liens against real property except
Lis pendens
One afternoon, a client calls a real estate broker. "My lender just told me that my note and mortgage is a negotiable instrument," says the client. "What does that mean?" Which of these would be the broker's BEST response?
Don't worry. That means the mortgage can be sold by the lender, but you're not affected
In February, a homeowner contracted with a general contractor to have his billiard room converted to a sauna, but he never paid for the work. The homeowner stopped making mortgage payments to his mortgage company in June. The owner is two years delinquent
County ? contractor ? mortgage company
To give notice of a potential claim against the property and to establish priority, a creditor may file
Lis pendes
A mortgage company charges borrowers a 1.5% loan origination fee. A man buys a house for $210,000 and pays $50,000 in cash. He applies for a mortgage to cover the balance. What will the mortgage company charge as a fee if the asking price of the house was
$2400
Which of these would permit a law enforcement officer to seize and sell a debtor's property?
Writ of execution
Parties to lending agreements are referred to by different terms. Which of these refers to the same party?
Borrower = mortgagor
How does an acceleration clause help lenders?
Without the acceleration clause, lender would have to sue the borrower for every overdue payment
A house is listed for $250,000. A man buys it for $230,000, with a 20% down payment. He borrows the balance on a fixed-rate mortgage at 6%. The lender charges four points. If there are no other closing costs involved, how much money does the man need at c
$53360
All of these are roles of the Federal Reserve System EXCEPT
Make direct loans to buyers
Which of these formulas is incorrect for the income approach?
Value / rate = income
One way a borrower can obtain a conventional mortgage loan with a lower down payment than 20% of the purchase price is by
Obtaining private mortgage insurance
To qualify for most conventional loans, the borrower's monthly housing expenses and total other monthly obligations cannot exceed what percent of the total gross monthly income?
36%
What does private mortgage insurance cover?
Protects the top 20 to 30% of the loan against borrower default
An empty lot is located in a neighborhood of single-family homes. It is the only empty lot in this well-maintained neighborhood. A busy street with many stores is located three blocks away. An industrial area is about s ix blocks away. What is the probabl
Single-family home
A house had a sale price of $240,000. The buyer obtained a loan for $220,000. If the lender charges three points, how much will the buyer pay in points?
$6600
A house sits on the corner of a busy intersection. Two of the corners are occupied by gas stations, and directly across from the house is a fast food restaurant. The house's owners have been told that the property would be worth more if the lot were vacan
Highest and best use
What is the GRM for a residential duplex with a selling price of $234,000 if the monthly rent for each unit is $925?
126.5
A woman plans to build a large house in a neighborhood of smaller homes, so she purchases three neighboring lots from their three owners. What is the term for the woman's activity?
Assemblage
A woman plans to build a large house in a neighborhood of smaller homes, so she purchases three neighboring lots from their three owners. What is the term for the woman's activity?
Cost approach
A 16-year-old female applied for a conventional loan in order to purchase a condominium. The lender denied the application, citing the applicant's age as the reason for the denial. Which of these is TRUE?
The lender lawfully denied the application because the applicant was under 18 and therefore was too young to legally sign a contract.
Air pollution from increased automobile traffic near a building with ornate exterior decoration has dissolved much of the intricate detail work. The cost of restoring the front of the building is roughly five times the building's present value. These fact
Incurable physical deterioration
A two-unit apartment building is being appraised. In this neighborhood, the accepted gross rent multiplier is 144. The annual income on the building is $16,800 (both units rented). The monthly expenses are $300. Based on the income approach, what is the e
$201600
Lenders that make conventional loans to sell in the secondary mortgage market follow the standardized forms and guidelines issued by Fannie Mae and
Freddie mac
Which of these reports would a salesperson MOST likely research and deliver to a prospective seller?
Comparative market analysis
The broker helps the homeowner answer the on-screen qualification questions.
Which of these events is an improper use of a CLO system?
2 only
The Equal Credit Opportunity Act prohibits lenders from discriminating against credit applicants on the basis of all of these factors EXCEPT
Past credit history
Assuming that all of the transactions are federally related, which of these properties would NOT have to be appraised by a state licensed or certified appraiser?
Condominium unit with a sale price of 67850
Which of these approaches is given the greatest weight in reconciling the appraised value of a two-bedroom, owner-occupied home?
Sales comparison approach
Property being appraised is called the
Subject property
A package loan includes
Real and personal property
The Federal Deposit Insurance Corporation (FDIC) does which of these?
Insures deposits in insured institutions up to $250,000 per depositor, per account
The principle of value that is the interaction of supply and demand is called
Competition
When appraising a new home in which no one has ever lived, an appraiser will likely use the
Cost approach
An apartment building has $65,000 in potential gross annual income. The vacancy rate is estimated at 5%, total operating expenses are $29,000, and the capitalization rate is 9%. Using the income approach, what is the value of the building?
$363889
Who is responsible for paying the broker or the broker's salesperson when one of them uses a computerized loan origination system to take the loan application from a borrower?
The borrower
Which of these makes direct loans to qualified borrowers?
FSA
The land on which a house was built is worth $50,000. The house was constructed in 1990 at a cost of $265,000 and was expected to last 50 years. Using the straight-line method, determine how much the house has depreciated by 2014.
$127200
A woman buys a small house in a highly desirable neighborhood consisting of large homes and pays $390,000. A man buys a nearly identical house in a neighborhood of similarly sized homes and pays $290,000. What economic principle BEST describes the reason
Regression
Who owns the building that is erected on land that has a ground lease?
Lessee
What amount is the seller debited for the broker's commission?
$1750
If a tenant remains in possession of leased property after the expiration of the lease term, without paying rent and without the landlord's consent, what is the tenant's status?
Tresspasser
What will be the amount of commission paid to the cooperating broker?
$10500
A security deposit held by a landlord
Compensates the landlord in the event of rent default or premises damange
A lease that provides for specified rent increases at set future dates is called
Graduated lease
A woman signs a lease to rent an apartment. Her lease runs from October 1 until November 1 of the following year. A man signs a two-year lease to rent an apartment in a new building that will be ready for occupancy in 15 months. Which of these leases must
Both the men's and the woman's
The expiration date of a one-year lease is September 30. On July 1, the house is sold to a family that wants to live in the rental property. Assuming the lease does not include a sale clause, how soon can they move in?
October 1st, present year
A tenant signed a one-year lease with a landlord on April 10. On the following March 1, the landlord asked the tenant whether the lease would be renewed. The tenant did not respond but was still in the apartment on April 11. What can the landlord do?
The landlord may either evict the holdover tenant or accept a rent check, creating a holdover or periodic tenancy
What amount is the buyer debited for the water bill?
$22.50
A man rents an apartment under a two-year written lease from a landlord. Three months after signing the lease, the man is transferred to another country for a year. During this period, he leases the apartment to a woman. The woman mails monthly rent check
Sublease
All of these items are usually prorated at closing EXCEPT
Appraisal fees
Since 2002, a real estate broker has had an understanding with two of the five mortgage lenders in town. She recommends only those two lenders to her clients and does not tell clients about any other lenders. In return, the recommended lenders pay for the
The broker's arrangement with the lenders is an illegal kickback under RESPA
A man owns a fully occupied rental apartment building. If he sells the apartment building to a woman, how will the tenants' security deposits be reflected on the closing statement?
Credit man, debit woman
What is the minimum time period a lender must retain a HUD-1 after the date of closing?
Two years
A buyer is purchasing a house from a seller. The single-family home is subject to an existing 30-year mortgage of $286,500 at a fixed rate of 6%. Under the terms of the sales contract, the buyer will assume the seller's mortgage at 6% interest and pay the
Yes, because the lender's fee on the assumed loan is more than $50
A tenant lives in an apartment building owned by a landlord. Vandals break into the building and destroy the central air-conditioning system. The tenant's apartment becomes uncomfortably warm. The next day, the tenant sues the landlord for constructive ev
No, the premises are not unusable, the condition was not due to the landlord's conscious neglect, and the tenant has not abandoned the apartment
What is the purpose of an operating budget for a property manager?
It is a guide for the property's financial performance in the future.
When an area was rezoned as residential, a store was grandfathered in and allowed to continue business. This is an example of
Nonconforming use
A woman would like to operate a business in her home, but she lives in an area zoned for residential use only. What should she do?
Seek a conditional use permit from the zoning board, if it is defined ass allowable
Before granting a zoning variance, a zoning board of appeals must
Hold a public hearing where neighbors of a proposed use may voice their opinions
A man owns a 2,000-acre tract of undeveloped woodland surrounding a scenic lake. He has divided the tract into 106 individual lots, ranging in size from 15 acres to 100 acres. He has also hired telemarketers to sell the lots to residents of the state and
The man must file a disclosure statement with HUD
All of these could be included in a zoning ordinance EXCEPT
Objectives for future development of the area
A city passed a zoning ordinance that prohibits all commercial structures over 30 feet high. A man wants to build an office building that will be 45 feet high. In order to obtain permission for the building, the man may apply for a
Variance or zoning change
Of these, a high vacancy rate most likely indicates
An undesirable property
All of these are common tests of valid zoning ordinance except
Anticipation of future housing needs
A state delegates zoning powers to a municipality through
An enabling act
All of these are principal responsibilities of the property manager except
Forcibly removing tenants for nonpayment of rent.
Which of these is an example of corrective maintenance?
Repairing a leaking water heater
A property manager's first responsibility to owner should be to
Realize the highest return possible consistent with the owner's instructions
One way that property managers meet the goals of ECOA is by
Making sure to use the same lease application for every applicant
A company was moving from one part of the city to another. During the move, a truck carrying computer equipment worth more than $250,000 accidentally ended up in a river, and the equipment was destroyed. Fortunately, the company was insured under several
Contents and personal property policy
A developer has included a playground and running trails between the commercial properties facing a busy street and the houses further back in the subdivision. The recreational area is considered
Buffer zone
Under the ADA, existing barriers MUST be removed
When removal may be accomplished in a readily achievable manner.
A man goes all over the country buying large tracts of vacant land, splitting them into smaller parcels, and building identical communities of single-family ranch-style homes surrounding a central shopping center. He sells the homes to residents and lease
Both a developer and a subdivider
If an apartment rents for $750 per month and the manager receives a 12% commission on all new tenants, how much will the manager receive when renting an apartment, assuming that this commission is calculated in the usual way?
$1080
A plat map is best described as
Detailed map that illustrates the geographic boundaries of individual lots
A man owns an apartment building that generated $60,000 in rental income, $15,000 in expenses, and $35,000 in debt service last year. Also, the property appreciated about $10,000 last year. What was the amount of cash flow on the man's apartment building
$10000
One objective of investing in income property is to generate spendable income, also called
Cash flow
In terms of real estate investment, another name for depreciation is
Cost recovery
An increase in the amount of money in circulation is called
Inflation
What is the purpose of the Brownfields Law enacted in 2002?
It distributes funds to clean up polluted industrial sites so they can be restored to productive use
Which of the following describes straight-line depreciation?
Depreciation is taken periodically in equal amounts over an asset's useful life
What causes mold problems in building?
Chronic moisture problems
Which of these is responsible for administering the Superfund?
EPA
For a REMIC, the asset test means
Almost all assets in the REMIC must be qualified mortgages and permitted investments
Lead is commonly found in all of these EXCEPT
Insulating material
Which of these would disqualify someone from claiming innocent landowner immunity under the Superfund Amendments and Reauthorization Act (SARA)?
A landowner had only constructive knowledge of the damage
Any additional capital or personal property included with a real property transaction to even out the value of a property exchange is called
Boot
How can property owners help avoid carbon monoxide exposure?
Have fuel-burning heating systems checked and maintained annually
Which of these is a source of polychlorinated biphenyls (PCBs)?
Caulking compounds
Why is mold a serious environmental problem in buildings?
It destroys material it grows on and causes health problems for occupants
A point of reference for measuring elevations is called
Datum
What information is NOT needed for a listing agreement?
The age of the seller