How does a creditor who has obtained a judgement get satisfaction against a debtor who will not pay?
Writ of Execution
The economic characteristics of land are?
Scarcity, location, and durability
What lease would best suit couples needs who are looking for temporary housing?
Month-to-Month lease
The land description T3N, R4W Principal Meridian refers to what type of property description?
Rectangular survey
Crops that require annual planting are generally considered to be?
Personal Property
A distinguishing characteristic of owning property by land trust is that?
The identity of the legal owner is kept confidential
A lawsuit for reverse condemnation may be brought by the?
Homeowner
If conditions for purchase are included in a deed and these conditions are violated, what is the penalty?
Return of the property to the original owner
When more than one approach to value is applied to a property and different indications of value are produced, how should the final estimate of value be determined?
Reconciliation
A borrower has defaulted on the mortgage. The mortgage contains an acceleration clause. This permits the lender to?
Demand immediate payment of the entire note
Too much leverage may result in?
Negative cash flow
A managing broker can be held responsible for?
All real estate activities of salespersons
Earnest money should be deposited into a trust account when?
In a timely manner
Why was the Jones vs Mayer decision of 1968 important?
By upholding the Civil Rights Act of 1866
A landlord may refuse to rent to a tenant who?
Has ever been convicted of selling illegal drugs
The buyer is assuming a mortgage presently on the property in the amount of $110,000. What is the adjustment made at the closing?
Credit buyer $110,000, debit seller $110,000
In most states, foreclosed property is sold through?
Public auction
Depreciation is calculated based on?
Cost of the building only
A judgement has been properly recorded. Any subsequent purchasers have actually examined the record or not, have been given?
Constructive notice
An agreement to purchase which has not been closed is?
An executory contract
An agency agreement between a property owner and a property manager is usually created by?
A management agreement
Homes built before 1978 require?
the buyer to acknowledge disclosure of the presence of any known lead paint
What is the first step to take when mold actions are found?
Identify and remedy the cause of the problems
When a principal authorizes an agent to perform to a particular act or transaction, it is an example of?
Specific agency
A broker earns his commission when?
The seller accepts the offer
A benefit of a deed of trust is?
Foreclosure is usually simpler and faster
The purpose of usary laws is to regulate?
Interest rates charged by lenders
The FHA functions most like an?
Insurance company
A loan that requires a borrower to pay interest only until the due date and then to pay the entire principal of the maturity date is called the?
Term loan
A deed restriction is applicable to the activities of?
Present and future owners
New sidewalks installed only on one side of the street will probably be paid for by?
Special assesement
What would be needed to be obtained for permission to build a grocery store in an area zoned residential?
Conditional use permit or zoning ordinance.
What is used to increase the lenders yield on a real estate loan?
Origination fee
A competitive market analysis is performed when?
Pricing property
Contracts made by a minor are?
Void
What is usary?
Collecting more interest than is allowed by law
All liens are?
Encumbrances
Abandoned private property redeemed by local government is an example of ?
Escheat
According to the law of agency as it relates to a broker?
The principal and the client are the same person
If a mortgagor defaults on the note?
The mortgage becomes due and payable
To the owner of land it runs across an easement is?
An encumbrance
Discount points are charged by the lender to?
Lower the interest rate
What is the fullest estate a property owner can have?
Fee simple absolute
A valid contract requires only?
Offer, acceptance, and consideration
When presenting offers it is best to?
Present all offers at the same time
The lender in a mortgage relationship is the?
Mortgagee
If a lessor dies after all parties have signed a lease, the lease is?
Unchanged
Essential elements for a deed include?
Words of conveyance
When does a deed convey title to property?
When it is accepted
What is not covered by the statue of frauds?
Listing agreement
A mortgage is acknowledged by?
Mortgagors
Which appraisal method would get the most weight on a single family home?
Sales comparison approach
What is the largest privately owned secondary market player?
FNMA
A fully amortized loan means that a loan will be payed off when?
In equal monthly installments that pay off the entire balance during the loan term
Equitable title is?
An interest in real property created by the execution of a valid sales contract.
A licensed real estate broker must?
disclose all material facts to the principal
An agent can advertise a property for sale under the agents own name if?
The official name of the agent broker is also in the ad.
A land contract?
Is a way for a vendor to help a vendee finance the property
Under The Truth in Lending Act, the borrower has?
3 business days to change their mind
The type of mortgage that allows a borrower to borrow an additional sum is called?
An Open end loan
The most common method of estimating property value for fire insurance purposes is?
Replacement cost
Which deed contains the most covenants?
General Warranty
What is a lien on real estate?
A mortgage
Rescission of a contract can be described as?
The voiding of a contract
What is the legal procedure brought forth by a buyer to enforce terms of a contract?
Specific performance
Who has jurisdiction over estates of the deceased?
Probate court
What is Amortization provision?
Governments ability to put time limits on noncom-forming uses
Dies inestate=
Administrator
Wraparound mortgage? Blanket? Interest only? Fully amortized conventional?
2nd mortgage, more than one property, interest only, interest and principal.
What is a protection clause?
Allows a broker to sue for commission if the owner waits for expiration of the listing to contact a buyer to purchase without a broker.
203b? 203i? 203k? 234c?
most common, rural, rehabilitation loans, condos.
Under a deed of trust, the lender is known as the?
Beneficiary
Market price?
A price a property actually sold for
What tax will the seller pay for transferring title to real property?
Conveyance tax
What is equitable right of redemption?
Homeowner getting back their house by paying all debts prior to foreclosure
The money used to fund fha loans is provided by?
Lending institutions
Can a salesperson put broker on their cards?
Yes, must include,"On deposit
Seller? Buyer?
Grantor, grantee
What grants zoning authority to municipal government?
Police power
Under which system of government can we hold title to land?
Allodial
Who uses the term realist?
Members of the National association of real estate brokers
Where must a copy of the trust document be filed by a real estate investment trust?
With the secretary of state
When determining the net operating income of a investment property, an appraiser will not take into account?
Interest expense
What is the body of law that governs negotiable instruments?
Uniform commercial code
Type of legal system that uses feet, degrees, and natural markers?
Metes and Bounds
Novation?
Substitute a new contract or a new party to an existing contract
What is a trade fixture?
Chattel
What is a fixture?
Annexed converted to real property
Equitable title?
Couple who has signed a purchase contract and has been approved/signed by the seller.
What is replacement of a building?
Fractional equivalent of the original structure
Discussing commission rates? Statue of Frauds? Respa? Truth in lending?
Sherman Antitrust Act, contract must be in writing, disclosure of transaction costs, loan cost disclosure.
What is to inherit?
To receive title through a last will and testament.
What is exclusive agency?
Allows seller to procure the buyer and forgo paying the broker a commission.
A property management account?
Can earn interest
What causes termination of a real estate contract?
Completion
What is GRM?
Rent per month * the number
A person who benefits from an easement is considered?
The dominant tenement
What law requires lenders to limit the amount of money that can be held in reserves?
Respa
When an agent uses money that belongs to others is called?
Conversion
When is there a contract between buyer and seller?
When the seller mails the original accepted offer back to the buyer
Right of survivorship?
Joint tenancy
What type of note calls for interest payments during the term of the loan and principal due at the end of the loan?
Straight term loan
Estate for years?
Leasehold estate
Bungalow presents?
A single gable
Dies testate?
Executor
Novation?
Transferring ones rights or obligations under a contract to another and being relieved of liability.
How long does a claimant have to file a complaint with the HUD Office of Equal Opportunity?
1 year
A counteroffer constitutes what?
a change
Who would a buyer and seller sign closing papers with when financing through an FHA?
Settlement agency
A mortgage that has not been recorded is?
Effective between the lender and the borrower only
A survey is?
Determining the size and the boundaries of a property
Specific performance is?
A legal remedy available to the buyer to enforce the terms of the contract.
Which term best describes value being attributed to a property because of its desirable location?
Situs
A legatee is?
A person who receives money as a gift through a will.
A leasehold estate with a specific termination date describes?
estate for years
How do you calculate a 13 percent profit on a 166,500 house after paying a 6 percent commission?
166,500 * 113percent= 188,145/94percent= $200,154
Calculating property taxes?
amount per year/365= x times number of days, which equals the total amount?
What percent of a borrowers income can be used to service debt on a conventional loan?
36percent
How do you calculate the amount of interest that will be payed of a 72,00 loan? If payments are 9.35 per 1,000 for 30 years?
72k/ 100= 72. 72 times 9.35= 673.50. 673.50 times 360= 242,352. 242352- 72k = 170,352 in interest.
What is a package deed of trust?
A type of financing that allows the purchaser to finance personal property along with the purchase price of the home.
What is an unconventional loan?
Any loan that does not conform to Fannie Mae or Freddie Macs standards.
What is a sublease?
The tenant transfers the interest only for part of the lease term.
What is an assignment?
The tenant transfers the entire interest for the remainder of the lease.
How much would 3 points be on a 135,000 house with a 40,000 down payment?
95,000 * 3 = 2850
Who is a devisee?
A person who receives title through a last will and testament
When a contract is terminated and each party gives back to the other party anything they have received, what occurs?
Rescission
According to Fannie Mae and Freddie Mac standards, how much of a borrowers income can be dedicated to housing expenses for a conventional loan?
28percent
What is a codicil?
A change to last will and testament
Concurrency?
Seller does not have to give notice to the contingent buyer, the seller is free to accept an unconditional offer.
Contingency?
Seller has to give the contingent buyer a chance to remove the condition if another offer is received by the owner.
What is a covenant?
A restriction in the deed imposed by the developer
What is tenancy in common?
A parcel of real estate owned by 2 or more people without the right of survivorship
Trust?
A device with which one person transfers ownership of property to someone else to hold or manage for the benefit of a 3rd party.
A lease executed by a minor lessor is?
Voidable by the landlord only
The longer the term of the loan, the?
Higher the number of monthly payments on the loan
1mil?
1/1000
Condemnation or Appropriation?
The act of taking the land.
Eminent domain?
Power that makes it possible
Adverse possession?
Acquiring title to land by continuous use.
Escheat?
When one dies without a will and without heirs, so title involuntarily transfers to the state.
What would be considered evidence of the agency relationship between broker and buyer?
Buyer-broker contract or purchaser agency agreement
A legal description of property based on lines of latitude, townships, and sections is described as?
Government rectangular survey
Who investigates written complaints against licensees?
The Ohio Divison of Real Estate
Who appoints the 5 members of The Ohio Real Estate Commission?
Governor
When must a relator give a buyer a consumer guide to agency?
First substantive contact
Outdated or expired info must be removed when?
Within 2 weeks
An appraiser develops an opinion of value on a property based on?
Gathering and analysis of objective facts and data
There is a balanced market when there are more?
Houses for sale than buyers
Why is the effective date valuable in an appraisal?
It is only valid during the effective date.
What are the 4 life cycles neighborhoods usually go through?
Growth, stability, decline, and revitilization
Which site valuation method uses adjustments to make other properties closer to the subject property?
Sales comparison method
Who appoints the Superintendent?
Director of Commerce
What is a post licensing requirement?
3o hours every 3 years. 10 hours within 12 months
1.Estate for years, 2.periodic tenancy, and 3.tenancy at will.
All are leasehold estates. 1. A fixed time period. 2.Month-to month. A duration of time, not a specific date. 3. No specified termination date or period of time.
Easement in gross?
Benefits a person only and not the land.
Tenancy at sufferance?
Holdover tenant. Someone who stays past lease expiration date.
Easement by prescription?
21 years of open and notorious use.
Intention of the anexer and the purpose of the annexation
Know this
Defeasance clause?
Gives borrower right to redeem real estate after default on a note.
Subordination clause?
Mortgage recorded at a later date priority over one recorded earlier.
FHA LOANS?
Housing expense ratio= 31per, total debt service ratio=43per
Conventional Loans?90%
28 per housing expense ration, 36per total debt service ratio.
The first step in the appraisal value is to?
Define the problem
What is not an approach to value in an appraisal?
Comparable market analysis
Adjusting features of comparables to match subject property?
Sales comparison approach