Practice Exam 5 Flashcards
(37 cards)
Which approach is based on the premise that many people buy a real property after comparing it to others with similar features?
Sales Comparison Approach
What would NOT be part of the development cost of a LOT?
installing curbs
installing storm sewers
constructing a building
installing street lights
constructing a building
An actual agency that arises by deduction or inference from other facts and circumstances, including the words and conduct of the parties, best describes what type of agency?
implied / ostensible
A situation in which the tenant’s lease has expired and the tenant is no longer paying rent but is living on the property is known as?
estate at sufferance
A person owned a 4-plex and lived in one of the units. Are they allowed to refuse to rent to a student from a different national origin?
Yes (1-4 unit apartments and NEVER based on race)
The purpose of ___ is to make sure that all members of the brokerage company understand the broker’s philosophy.
a policy and procedures manual
The finance fee charged by the lender to make the loan is a
loan origination fee
A contract that is binding on only one side is known as
unilateral contract
Broker wants to email alll property owners within her “farming” district every 90 days. Does the broker have to follow any sort of ad requirements?
Yes - the CAN-SPAM Act (has to offer an opt-out option)
An exercise of police power by a municipality to regulate and control the character and use of the property is called
zoning ordinances
The buyer in a land contract is the
vendee
A deed would be presumed to have been delivered when what happens?
it was recorded - means the title was properly transferred
The environmental hazard found mostly in electrical equipment is
PCBs
Title held by a husband and wife may include all of the following forms of ownership EXCEPT:
severalty
tenancy by the entireties
joint tenancy
tenancy in common
severalty - means SOLE ownership
Most homeowners insurance policies contain what clause?
coinsurance clause
title to real property is conveyed by deed when the deed is
delivered to and accepted by the grantee
The amount of a broker’s commission is established by
an agreement between the broker and the seller/buyer
If a broker deposits the buyer’s earnest money in a trust account, at what time is the seller entitled to receive it?
at the time of settlement - until a transaction actually closes, the EM is considered part of the purchase price and does not yet belong to the seller
What is the lender’s evidence of a debt (loan)?
promissory note
When doing a CMA, a salesperson would be LEAST concerned about which of the following?
list prices of properties in the area
sale prices of properties in the area
original price of the home the owner paid
number of properties of similar size/style for sale in the area
original price the owner paid for the property
A building development with designed grouping of varied and compatible land uses (housing, rec, commercial centers, industrial parks) all within one contained development or subdivision. This qualifies as a?
planned unit development (PUD)
when appraising a commercial property, the appraiser is MOST concerned with what?
income generated by the property
Why do buyers apply for a FHA 203(b) loan?
small down payments
Risk management refers to
reducing the risk to a level at which it can be managed or tolerated
