In a tenancy in common, if the fractions of ownership are NOT stated in the deed, how are they determined?
The tenants are presumed to hold equal shares.
In the case of land trusts, the beneficiary is usually also the
trustor.
Office buildings and retail space are examples of
commercial real estate.
A person who advises a real estate client who is making a purchase to use or invest in real estate is called
a counselor.
All of these factors will tend to affect demand for real estate EXCEPT
transfer taxes.
When the population of a town suddenly increases, which of these is MOST likely to occur?
Real estate prices will increase
Property management, appraisal, financing, and development are all
separate professions within the real estate industry.
The idea that no two parcels of land are exactly alike is called
uniqueness.
A property owner who does not want to deal with the everyday tasks of managing a rental property can hire
a property manager.
When the supply of a certain commodity decreases while demand remains the same, the price of that commodity will tend to
increase.
All of these factors can affect the supply of real estate EXCEPT
demographics.
All of these are examples of government policies that can affect the real estate market EXCEPT
a shortage of skilled labor or building materials.
Why have real estate license laws been put into effect?
To protect the public and establish standards of professionalism
In real estate, a sales associate is always
a licensee who performs real estate activities on behalf of a broker.
All of these are requirements for independent contractor status used by the Internal Revenue Service EXCEPT
specific hours stated in a written agreement.
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.
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 qualified buyer makes a written offer on a property on March 6 by filling out and signing a sales agreement. Later that day, the seller accepts and signs the agreement, keeping one copy. The broker gives a copy of the signed agreement to the buyer on Ma
May 1
All of these are violations of federal antitrust laws EXCEPT
commission splitting.
All of these are ways for a broker to charge for services EXCEPT
standard community rate.
What is the main value of a multiple listing service (MLS) for sellers?
It exposes the property to a greater number of prospective buyers.
Generally, in a court-ordered sale, which of these is paid first?
Real estate taxes
Which of these is an example of a specific, voluntary lien?
Mortgage lien
The millage breakout for ad valorem taxes are library: 0.5; school: 1; school debt service: 0.5; community college: 1; vocational school: 0.5; and all others: 5. If the property is assessed at $165,000, how much is the tax bill?
$1,405.75
All of these are liens against real property EXCEPT
lis pendens.
Which of these characteristics apply to a real estate tax lien?
Specific, involuntary lien
Which of these would permit a law enforcement officer to seize and sell a debtor's property?
Writ of execution
Which of these is a general, statutory, and involuntary lien on both real and personal property?
Federal tax lien
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
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 assessment
All of these liens must be recorded to be effective EXCEPT
real estate tax lien.
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
To give notice of a potential claim against the property and to establish priority, a creditor may file
a lis pendens.
A man considered having a new garage built and talked about the project with a contractor. In April, while the man was on vacation, the contractor began building the garage according to the man's specifications. Work was complete by the end of May. In Jun
No, because there was no express or implied contract between the man and the contractor.
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?
A reverse mortgage
A document that indicates that a loan has been made is called a
promissory note.
a woman defaults on her mortgage, and the lender forecloses. The lender's foreclosure suit is filed on March 15, and the sale is to be held on May 10. If the woman attempts to redeem the property on May 1, which of these statements applies?
The woman is exercising her equitable right of redemption.
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
$53,360
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.
A deed of trust involves all of these terms EXCEPT
mortgagor
One state is a lien theory state. A buyer purchases property from a seller and gives him a mortgage as part of the purchase price. Therefore, the buyer is the borrower, and the seller is the lender. Which of these statements is FALSE?
The buyer has given legal title to the seller.
A basic form homeowners insurance policy provides property coverage against
fire, lightning, and smoke damage.
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
$2,400
A mortgage document contains the clause: "In the event of Borrower's default under the terms of this Agreement, Lender may declare the entire unpaid balance of the debt due and payable immediately." This clause is called
an acceleration clause.
This month, a man made the last payment on a mortgage loan secured by a woman. The man's lender must execute
satisfaction of mortgage.
Homeowners may deduct which of these from their gross income?
Loan discount points and loan prepayment penalties
A buyer purchases property from a seller for $45,000 in cash and assumes the seller's outstanding mortgage balance of $98,500. The lender executes a release for the seller. The buyer fails to make any mortgage payments, and the lender forecloses. At the f
The buyer is solely liable for $23,500.
The decision whether to buy or rent should involve consideration of
housing affordability and current mortgage interest rates.
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 judgment.
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
The exercise of this power of sale clause is an example of nonjudicial foreclosure.
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.
What is the term that refers to a lender charging an interest rate that is higher than that permitted by law?
Usury
Parties to lending agreements are referred to by different terms. Which of these refers to the same party?
Borrower = mortgagor
If the lender wants to call the entire note due and payable if the borrower stops making payments, the security instrument must include
an acceleration clause.
When a deed of trust is the security instrument, which party usually chooses the trustee?
The lender
Lenders charge a loan origination fee to
cover the expenses involved in generating the loan.
After a foreclosure sale, what responsibility does the purchaser have for the mortgage and any junior liens?
The purchaser has no responsibility because the purchaser receives the property title without the mortgage and junior liens.
How does an acceleration clause help lenders?
Without the acceleration clause, lenders would have to sue the borrower for every overdue payment.
What is a major disadvantage to lenders of accepting a deed in lieu of foreclosure?
The lender takes the real estate subject to all junior liens.
All of these are roles of the Federal Reserve System EXCEPT
make direct loans to buyers.
A lender who collects payments, processes them, and follows up on loan delinquencies is said to
service the loan.
The primary mortgage market lenders that have most recently branched out into making mortgage loans are
credit unions.
The Federal Deposit Insurance Corporation (FDIC) does which of these?
Insures deposits in insured institutions up to $250,000 per depositor, per account
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.
A package loan includes
real and personal property.
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%
Regulation Z generally applies to
a credit transaction secured by a residence.
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
Regulation Z generally applies to
a credit transaction secured by a residence.
A wraparound loan enables a borrower
with an existing mortgage loan to obtain additional financing from a second lender without paying off the first loan.
All of these are lenders in the primary mortgage market EXCEPT
mortgage brokers.
The Homeowner's Protection Act of 1998 (HPA) requires that the lender automatically
terminate the private mortgage insurance payment if the borrower has accrued at least 22% equity in the 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?
$6,600
On which type of loan can the borrower prepay without penalty?
All of these
The Equal Credit Opportunity Act prohibits discrimination in the lending process based on
all of these.
A woman bought a home. The asking price for the home was $585,000; the woman offered $565,000 and the seller accepted. The appraised value of the home is $560,000. The woman plans to pay $94,600 in cash and take out a mortgage for the remainder. What is t
84%
A buyer is purchasing property from a seller. The seller bought the property on December 20, 1999, with an FHA loan and has lived there ever since. Because of its favorable terms, the buyer would like to assume the seller's mortgage. Is this possible?
Yes, but the buyer will have to undergo the complete buyer qualification process