1 year
How long does a claimant have in which to file a claim for a fair housing violation?
nothing to the buyer, debit to the seller
The cost of clearing title defects is shown on the settlement statement as a:
Homeowner's Insurance
NOT deductible on federal income taxes
Property Taxes, Interest on a home loan, closing costs
deductible on federal income taxes
Board of Appeals
If a homeowner's property is reassessed resulting in higher property taxes, and the homeowner feels that the assessment is unfair, to whom can he appeal?
credit to the buyer, debit to the seller
A buyer is assuming the seller's unpaid mortgage balance. How would this be listed on the settlement statement?
Property Management Agreement
A contract for services between a property manager and the owner of an apartment building is called
southeast 1/4
A piece of land having the description. "the southwest 1/4 of the northwest 1/4 of the southeast 1/4 of Section 18" would lie in which quarter of the section?
25%
An investor paid $38,000 for a building 4 years ago. He sells it for $47,500. What is the percent of his profit?
Loan to value ratio
The amount that a lender is willing to lend based on the estimate of value is called:
honor the lease
A property is leased for 3 years with a lease signed by lessor and lessee. One and 1/2 years later the property is sold. The new owners wish to occupy the premises. What must the new owners do?
Building codes
Requiring bathrooms in a dwelling is an example of:
The largest corner lot
A subdivision is being assessed for installing curbs and gutters. All lots in the subdivision are approximately equal in size. Which property would most likely pay the highest special assessment?
Buffer Zone
An office park between a residential neighborhood and a shipping center is an example of a _________________ ______________.
The right of survivorship
What is the main difference between joint tenancy and tenancy in common?
Replacement
When using the Cost Approach to value, which method would most often be used when appraising an older building?
Contribution
An owner decides to add a bathroom to a house that is in a deteriorating neighborhood. Which principle of value would best indicate the effect of the new bathroom on the total value?
Comparative Market Analysis
How does an agent usually determine the listing price of a home?
Authentic Act
A statement which is signed in front of witnesses and is notarized is a(n) _____________________ __________.
Sue the agent
An agent tells a buyer that the property taxes on the house are the lowest in the area. After buying the house he finds that they are actually the highest. What can he do?
Sue for partial performance
A buyer represents himself in the purchase of a home. The seller agrees to leave all kitchen appliances, and it is written into the sales agreement. When the buyer moves into the house, the appliances are not there. What can he do?
$70,000
A house sold for $75,000 four years ago. Buyers obtained a 70% loan at 8% for 30 years. They recently had the house appraised and found the value has increased to $125,000. Their loan balance is $55,000. What is their equity?
Use a written deed
When a seller sells his property he must always:
an insurance company
What does the FHA function like?
to be able to sell the loan on the secondary market
The main reason lenders follow Fannie Mae guidelines is:
agents
Who is mainly responsible for adhering to fair housing laws?
disclose defects
A broker lists a house and the seller states that he wants to sell is "AS IS." The agent should still:
The party with whom he has a contract
An agent owes the duty of care to whom?
substitution
The Sales Comparison Approach is based on the principle of:
$124,000
House A has an enclosed garage worth $3000. House B is newer which gives it an increase in value of $4000. House B is worth $125,000. What is the value of House A?
Cooperative
What type of communal living does NOT operate under condominium laws?
Exclusive Agency
Which type of listing agreement would tend to create competition between seller and listing agent?
determine who must sign the contracts
What is the MAIN reason for licensees to be familiar with property ownership laws?
abstract of title
A brief history of the title to the property is called a(n) _______________ _______ _____________.
Earnest Money
The MAIN source of funds in the broker's escrow account is usually from:
Return it to the buyer
What should a broker do with a deposit check is the seller does not accept the offer?
when his offer is accepted
When does a buyer become obligated for an agreement to purchase?
Option
BEST example of a unilateral contract
when final payment is made
When does the buyer receive title in a land contract?
DUST (Demand, Utility, Scarcity, Transferability)
When a licensee determines the listing price of a property he is relying on which determinants of value?
Express agency
A seller tells a broker that he wants to list his house but does not want to sign a contract. What kind of relationship would the broker have with the seller?
Lease Purchase
A couple has a high debt ratio, but will have several loans paid off in the next year. They have found a house that they want to buy. What type of lease would be best for them?
Equitable
A buyer's interest in a property on which he has signed a purchase agreement, and it has been accepted, but the sale has not closed, is:
The buyer
A 17 year old male is selling a property to his uncle. Who is obligated in the transaction?
Constructive
When information is recorded at the courthouse, what kind of notice is given?
low liquidity
One of the risks of investing in real estate is:
55
Property owner can refuse to rent to a family with small children if the complex is mostly inhabited by tenants over age:
appurtenance to the land
Littoral and riparian rights are acquired by:
land
What could NEVER be a fixture?
fixture
A free-standing cabinet specifically made to fit into a corner of the room would most likely be:
$150
A property is sold for $125,000. The transfer tax is $4/1000. The seller has agreed to pay 70% of the tax. How much will the buyer owe for the transfer tax?
an act of novation
The seller is responsible for the unpaid mortgage balance in an assumption until:
enables the borrower to borrow a higher percentage
The GREATEST benefit of PMI to the borrower is:
Police Power
Government's power to enact and enforce laws to protect the health, safety, morals, and welfare of the general public is:
deficiency judgement
Property is foreclosed on by the lender. The lender sells it but does not receive enough to cover the debt. The lender can get a:
Other property owners get a court order
How are subdivision RESTRICTIONS enforced?
Market Value
An appraiser is hired to determine:
decrease in land value
The LEAST likely reason for a decrease in the value of a property would be:
Fully Amortized Loan
A loan with a fixed monthly payment covering principal and interest and giving a zero balance after the last payment would be a:
3 days of the loan application
RESPA requires lenders to provide an estimate of closing costs within:
interest costs
Regulation Z requires disclosure of:
month to month lease
The best type of lease for a couple, who are new in town and want to rent for a while to decide what area they want to buy in, would be:
Seller owes $315
Property taxes for the year are $840 paid in arrears. The property is sold and the date of closing is August 15th. The tax year is April 1 to March 31. Who owes the other money & how much do they owe? (Use a 360 day year and the seller pays for the day of
Notify the seller
If a buyer's deposit check is returned NSF, what is the FIRST this the listing agent should do?
Demand
The desire to purchase coupled with the ability is known as:
$7,700
A broker sells a property listed by another broker for $280,000. The commission of 5.5% is to be split equally between the two brokers. How miuch will each broker receive?
$33,000
A house is purchased for $165,000. It appraises for $167,000. The buyers obtain an 80% loan. How much will be required for the down payment?
$1,125
A property has a market value of $150,000 and is assessed at 50%. The tax rate is 15 mills. What is the tax?
$69,149
A seller wants to sell his house. He must pay off a mortgage of $45,000 and wants to receive $20,000 cash from the sale. The commission will be 6%. What should the selling price be?
Economic Life
The period of time over which a property may be expected to be useful is it's:
Upon 1st substantial contact
LA - When showing a property, when should the agent have the agency disclosure form signed?
Document the refusal
LA - An agent shows a house to the prospective buyer who seems very interested but is obviously in a hurry. The agent attempts to have her sign the agency disclosure form, but she indicated that she doesn't have time and does not want to be bothered with
Yes. This is illegal
LA - A seller is so pleased with the service of his agent that after the sale he sends the salesperson a check for $500. The salesperson deposits the check in his personal checking account and writes a thank you note to the seller. Has the salesperson don
Ministerial Acts
LA - Acts which are informative in nature, such as responding to phone inquiries, setting appointments, or responding to questions about a property are:
After review by the Nineteenth Judicial District Court
LA - When an agent's license is suspended or revoked and the licensee appeals, the suspension or revocation is effective:
20
LA - Licensee must be notified of any charges against him at least ______ days before the date of the hearing.
the full interest
LA - The penalty for usury is the forfeiture of:
Immovables Only
LA - A bond for deed may be used for:
Disclosed Dual Agent
LA - When acting as an agent for both the buyer and the seller in the same transaction with the informed written consent of both, the agent is a:
The Broker's Name
LA - One requirement of internet advertising is:
Cause
LA - Louisiana requires:
1
LA - How many years to file for lesion?
any felony
LA - A licensee can have his license revoked if convicted of a felony:
Farm lease and lease for rent
LA - In Louisiana, the two types of leases are:
Abusus
LA - The right of the naked owner is:
December 31
LA - If you are licensed on November 20th, your license expires on?
Suspended
LA - If a broker's license if revoked, the licenses of his sponsored agents are automatically:
30
LA - How many years are required to acquire a property in bad faith?
intestate
LA - If a person dies without a will, he is said to have died:
Community Property
LA - Anything acquired by husband and wife during the time of marriage and through their labor or effort is considered:
Donation Mortis Causa
LA - When a person donated a thing during his lifetime in contemplation of death, possession to be taken at time of death, it is called:
Vendor's Lien
LA - A privilege to the seller for the unpaid balance of the sales price is a:
March 31
LA - The LAST date to renew your license is:
5 years
LA - Individual real estate brokers shall retain records readily available and properly indexed for a period of:
license fees
LA - The main source of funding for the Recovery Fund is from:
The belong to the original broker
LA - When a salesperson transfers his license to a new broker, what happens to his listings?
broker
LA - Who is required to have an escrow account?
$2500
LA - What amount of personal funds may be kept in a sales escrow checking account, rental trust checking account, or security deposit checking account for the purpose of covering bank service charges?
Within 180 days of licensing
LA - If an agent was licensed in 2012, when must his post licensing hours be completed?
1 baseline and 2 meridians
LA - How many baselines and meridians doe Louisiana have?
5/6 of an acre
LA - AN arpent is a unit of measure about equal to:
movables by anticipation
LA - Unharvested crops belonging to a person other than the land owner are considered:
Personal Servitude
LA - A right of use is a:
5
LA - When a salesperson or associate broker wishes to transfer his license to another sponsoring broker, the sponsoring broker shall return the license of the salesperson or associate broker to the Commission within ______ days of the date of execution of
10 days after closing
LA - When must a broker notify the Commission when closing an escrow account?
the licensee
LA - Who is responsible for making sure a licensee is aware of license laws?
1 year
LA - How long does an applicant for a real estate license have in which to ass the PSI exam?
Counteroffer
When a seller rejects a prospective purchaser's offer to buy, and makes a new offer of is own, this is known as a(n):
Adjustable Rate Mortgage (ARM)
A loan that provides for increases and decreases in the interest rate during its term is known as a(n):
It purchases certain mortgages issued by lending institutions
What does the Federal National Mortgage Association do?
insured by the federal government
Conventional loans are NOT
The secondary mortgage market
What provides a means of keeping money flowing in the real estate mortgage market?
decreases each month
What happens to the interest payment each month in a fully amortized loan?
blanket mortgage
What type of loan would allow a developer to obtain the release of lots, one at a time, as they are developed?
$24,000
A lot 80 feet wide and 150 feet deep is selling for $300 a front foot. What is the sale price of this lot?
1.8
If a lot has 78,500 sq ft, ow many acres are there?
$172,860
The commission on a sale was $12,100, which was 7% of the sale price. What was the sale price?
$96,250
A property sells for $875,000 with an annual return of 11%. What is the annual net income for the property?
$150,000
Joe bought a house for $150,000. He put 20% down and borrowed the rest at 8% interest over 30 years. Ten years later he sells the home for $250,000. The balance on the loan is $100,000. How much equity does Joe have in the property?
Consideration
Giving of the equivalent of money or some good/value (love, gift, affection.)
$137,142
A house sells with a commission paid to the broker of $9,600. If his salesperson received $3000 of the commission and the company charges a 7% commission rate, what did the house sell for?
640
How many acres are in a section?
$637.50
A property has a loan of $85,000 with an interest rate of 9%. What would the monthly interest payment be?
Debit buyer $840
A sales is to be closed on July 12th. Taxes for the year are $1,800 and have already been paid on January 1st. The prorated taxes at the closing SHOULD:
$1372
A home is valued at $98,000. Property in the area is assessed at 40% of it's value. If the local tax rate is $3.50 per hundred, what is the annual tax?
General Warranty Deed
A deed which gives the buyer the MOST protection is:
All the usual covenants of title
To be considered a general warranty deed it must contain:
Voidable
A contract based on misrepresentation o a material fact is:
Signed by Grantee
What is NOT needed for a valid deed?
Legacy or bequest
Personal Property conveyed by will is known as:
Grantor
Who is required to sign when transferring a deed?
Adverse Possession
An example of involuntary alienation is by:
Condemnation
Paul refused to sell his land to the city highway department because he felt the amount offered was insufficient for his property. If the highway department pursues the matter, what proceeding would they use to acquire Paul's land?
Unenforceable
The statute of Frauds generally provides that an oral contract for the sale of real estate is:
Fee simple absolute
The best possible estate in land is:
Encroachment
A neighbor's fence erected 12 inches on to another's property is an example of:
Tenancy in common
Sally and June are co-owners in a parcel of real estate. In the event of Sally's death, her interest goes to her heirs. Sally and June's ownership is a:
may sell to anyone who would then become a tenant-in-common
A joint tenant who wishes to sell her interest in the property:
Joint Tenancy
When ownership includes "Right of Survivorship," it is known as:
Cooperative
Fred lives in an apartment. At the time of his move-in he received a proprietary lease as well as stock in the corporation that owns the building. This would be a:
Condominium
A person who owns a fee simple interest in a unit in a multi-unit structure along with a percentage interest of the common elements would be the owner of a:
Highest and best use
In appraising property, the first consideration should be:
a fee based on the time and expertise required
An appraiser should be paid based on:
60
LA - A privilege or lien is filed within ______ days when last work was done.
Shorter period of time
LA - Advantage of an Executory Process
Not required to be in writing
LA - In Louisiana, Leases are:
LA - If a contract's terms are not met the contract is said to be:
1 year
LA - The time frame for Redhibition
2
LA - In order to have a Predial Servitude, you must have how many pieces of property?
10%
LA - The Assessment Rate for Louisiana Residential is:
Usus
LA - The right to use is known as:
Habitation
LA - he Right of a person to live in the house of another for their lifetime in Louisiana is known as:
24
LA - What age may a child no longer be a forced heir?
50%
LA - With Community Property each spouse owns an Undivided _________ Interest
Accretion
LA - The buildup of soil on a riverbank or stream is called:
Corporeal
LA - A thing that has a body
Quit Claim
LA - To clear a cloud on a title, you would file a:
Usufruct
LA - The right to use and enjoy the benefits of property is called:
1 month
LA - If a lease expires and the tenant stays an extra week without opposition, the lease is extended:
Air
LA - Example of Common thing
1/2
LA - A husband and wife have 3 children under the age of 23. The husband dies. What is the forced portion the children will receive?
Expropriation
LA - In Louisiana, state or local government may exercise its power of eminent domain to take private land for public use, though the process of:
Subrogation Clause
A clause in which the owner of a property assigns his rights to sue to his insurance company is called:
Arrears
When a monthly note is paid and the payment covers the previous month, the not is said to be in:
Arpent
LA - A french acre is known as a(n):
Recondution
LA - When a lease expires and it is extended by the tenant staying an extra week or month (allowed), this is known as:
Ordinary Process
LA - Under foreclosure proceedings, when you file a suit:
Lien
LA - Privilege is also known as a(n):
Sales price
On a closing statement, the seller always receives credit for:
one time, at issuance
The premium for a mortgagee's title insurance policy is paid:
the title is only as it appears on record subject to conditions and exceptions
Title insurance policies standard form provide legal certainty that:
for as long as he or his heirs own the property
A owner's title insurance policy remains in effect how long?
Up to his purchase price if the title is defective
An owner's title insurance policy protects the buyer:
Net Listing
If the seller agrees to allow the broker to keep all the money earned in a sale above a certain amount requested by the seller, the arrangement is called a(n):
Exclusive Right to sell Listing
On which type of listing can a broker receive a commission no matter who sells it?
The owner
Who is (are) the principal(s) in a listing agreement?
Listing Agent
I the buyer writes up an offer, who would present the offer to the seller?
Negotiation
The amount of commission paid to a broker is determined by:
Limited Partnership
LA - In Louisiana, "Partnership in Commendam" means:
10 days
How long after taking possession do tenants and buyers have to get a property inspected for lead problems?
Securities and Exchange Commission (SEC)
Laws related to selling shares in Real Estate ventures are called "Blue Sky Laws." Who has jurisdiction for enforcing those laws?
Equity
The difference between the value of property and the amount owed on it is:
Seashore
LA - "Littoral" property is located on:
2
LA - Homeowners MUST live in a home at lease ______ years to receive MAXIMUM tax advantage.
Boot
LA - The extra money needed when a tax deferred exchange of property is NOT between properties of equal value is the:
Doctrine of Prior Appropriation
LA - When water is scarce and its use is restricted, this is called:
written in the testator's own handwriting
A holographic will is only valid of it is:
his heirs
If a person dies intestate, the title to his property would usually pass to:
Tenants in common
There is no right of survivorship in:
Joint Tenancy
A husband & wife owned property together. When he dies, she gained ownership of the property automatically. The form of ownership they had was:
Emblement
Corn is an example of:
Buyer and Seller
A principal refers to who:
Registered with the Real Estate Commission
LA - All trade names, symbols, and logos used in advertising a real estate company MUST be:
4
LA - All applicants for brokers license shall have served actively for ______ years as a real estate salesperson
90 days
LA - Applicants have how long to find a sponsoring broker after passing the state exam?
Commingling
Broker Mary Jones deposits $500 of a clients deposit money into her personal account and the balance into her trust account. This is:
60 days
LA - Because of death of the broker, salesperson may transfer to new broker within:
Licensees and their principals
LA - Who does the Real Estate Commission adjudicate disputes between?
6 years
LA - Each member of the Real Estate Commission serves for _____ ____________.
$10
LA - How much is the annual research and education fund fee?
Agency Disclosure Pamphlet
LA - All licensee must provide to buyers and sellers a(n):
Seller signs and notifies the buyer of that fact
A buyer makes an offer to purchase on a standard purchase agreement. This is binding when:
Time is of the essence
Saying that means the date specified on the contract is important.
Contingency
A clause in a contract which bases mutual consent on a specific event which may or may not occur is called:
First Right of Refusal
An agreement that would give a party the first chance to buy a property if it were ever placed on the market is called:
Specific Performance
A court order to compel an owner or buyer to live up to the terms agreed upon in a contract is:
Leasehold interest
The term that best describes a tenants rights to leased property would be:
Estate from period to period
A lease is for an original term of two years. If the tenant stays one extra day beyond the two years and the lease is automatically renewed, it would be a(n):
Net Lease
A clause providing for the lessee to pay some or all of the maintenance costs would be found in a(n):
Unaffected by the sale
When the owner of a property sells it with an existing lease, the lease is:
Graduated Lease
A lease that allows a pass-though of some operating expenses to tenant in the form of higher rents would be a(n):
Contractual ability
Means all parties are competent.
Offeree
The party that receives an offer to purchase is the:
An exchange of promises
Consideration in a contract is:
Fear
The concept of duress is based on:
Void
A contract which has no legal force of effect is:
Mortgage Loan
Discount points are based on the:
Lender
Insurance on an FHA loan is designed to protect the:
Veterans and their qualified dependents
VA loans can be originated for:
Prepaid Interest
Discount points on FHA loans are a form of:
Both require little or no down payment
What is the similarity between VA & FHA loans?
Appraised Price
With an FHA loan, when the selling price exceeds the appraised value, what will the loan be made on?
$1000
Two discount points charged on an FHA loan of $50,000 would amount to:
Purchase Money Mortgage
The Smiths own their house free and clear of all liens and offer it for sale at $110,00. The buyers, the Byrds, give a deposit of $3,000 and agree to make a down payment of $37,000. The Smiths agree to loan the Byrds $70,000, which will be amortized for 3
Budget Loan
A loan with payment that includes an amount to cover insurance and taxes would be a(n):
Partially Amortized Loan
Monthly payments for a particular loan are figured on a 25 year amortization schedule. However, the loan is due in full after 5 years. What type of loan is this?
Executory Process
Foreclosure where there is no court action is an example of:
Deficiency Judgment
In a foreclosure, the mortgagee seeks additional compensation from the mortgagor if the sale of the property does not completely satisfy the debt through the sue of a:
Equitable Redemption
The borrower's right to redeem property is the period of default up to sheriff's sale is called:
Default
Failure to meet an obligation when due is a(n):
Primary Lender
A local lender is a(n):
Low income housing
Ginnie Mae provides funds for:
Discounting
If a lender holding a note for $58,000 sold it to a lender for $50,000, his action would be known as:
Promissory Note
For a mortgage to be enforceable, what is needed?
Trustor
In a trust deed, the borrower is called the:
ARP
An accurate measurement of the cost of credit because it includes all additional costs of borrowing.
Handicap and familial status
The 1988 Fair Housing Amendments Act added which 2 classes?
Blockbusting
The illegal practice of inducing an element into an area for the purpose of inducing families to move is known as:
1866
The first fair housing act was created in:
Race
The Civil Rights Act of 1866 prohibits discrimination based on:
Commissions
Under ECOA rules, a borrower is less likely to be approved for a loan if their income is from:
methods of settlement and closing
RESPA regulates:
Fee Simple Estate
Which type of estate is inheritable?
Deed Restriction
Private owners can place what on a property
Survey
Encroachment would be detected by:
Habendum Clause
The clause in a deed that states the form of title the grantee will receive is the:
Covenant of Seisin
The covenant in a deed that states the grantor is the owner and has the right to sell the property is:
a corporation
A coop is owned by:
Severalty
Ownership by one person in common law state is known as:
Joint Tenancy
A poor man's will for a husband and wife would be what type of ownership?
Doctrine Necessity
An owner who lives near a waterway but NOT abutting it, to have access to the water, this is called:
Reliction
Dry land that is exposed by gradual receding of the water line is:
Setback Ordinances
Laws which determine the distance from the street that a building may be erected are:
US Government Survey, Metes and Bounds, Lot and Block
Legal property descriptions
10
How many acres are in the SW 1/4 of the NW 1/4 of the NE 1/4 of Section 10?
SE
Section 36 is located in what part of a township?
US Government Survey
A survey that refers to fractional sections, townships and ranges is a legal description by:
40
A parcel of land 1/4 of a mile by 1/4 of a mile is how many acres?
Lot and block
A salesman filling out a contract for suburban home located in a subdivision that has been registered at the parish courthouse, would normally describe the property using:
36
How many sections in a township?
43,560
How many sqft in an acre?
5,280
How many feet in a mile?
640
How many acres in a square mile?
160
How may acres is a piece of property that is 1/2 mile square?
40
How many acres is a parcel of land measuring 1,320 feet by 1,320 feet?
Township
A parcel of land 6 miles wide and 6 miles long is called a(n)
640
How many acres in a section?
US Government Survey
A survey that refers to fractional sections, townships, an ranges
Metes and Bounds
A survey that measures by angles and distances from a specific point
Fixed beginning point
To be valid, a metes and bounds description must have a(n):
Quiet Title Suit
The chain of title is broken between a previous owner and the present owner. To convey the title, what will be required?
Constructive Notice
When a document is recorded in the public record, the world is given:
Abstract of Title
History of the property in the public record
Cash Flow
The total amount of money remaining after all expenditures have been paid is:
Inflation
When the value of money decreased but retail prices increase, it is:
Blue Sky Laws
Laws regulating the selling of shares in Real Estate investments across state lines is called?
Implied Agency
If the actions of the parties created an agency agreement, this would be a(n):
Buyer's agency agreement
If a buyer wishes to be represented legally by the real estate company, he should sign a:
Law of Agency
The relationship between the principal and the broker is covered by the: