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Flashcards in Course 1 Practice Exam Deck (100)
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1
Q

What legal description has been used the longest in the US?

A

Metes and Bounds

2
Q

What would be founds in a management proposal?

A

schedule of maintenance requirements

3
Q

What is an example of a violation of the Sherman Antitrust Laws?

A

market allocation

4
Q

Town is replacing a sidewalk that serves 8 homes and is 900 ft. Laura’s property is 60ft of the sidewalk and the cost of the project is $18,000. What will Laura’s assessment be?

A

$18,000 / 900ft = $20/foot

Laura’s 60ft x $20 = $1,200

5
Q

Home Hoarding Realty is advertising to the public that their managing broker has been in the business 37 Yeats and has sold over 1,250 homes. This is an example of what type of advertising?

A

Institutional Advertising

6
Q

Under the ___ of recording, title passes when the conveyance is registered on the title certification.

A

Torrens System

7
Q

Unlike buyer/seller agency agreements that create ______, management agreement creates _____

A

special agency, general agency

8
Q

The system of land ownership in the US is known as what?

A

Allodial System

9
Q

How does PUD zoning differ from ordinary zoning?

A

it requires that multiple tracts of land be developed according to a single design for efficient use of space

10
Q

Homeowner Louise has been lax in protecting her property rights. According to the _____, Louise may lose those property rights.

A

Doctrine of Laches

11
Q

Francis just signed the papers on a conventional 30-year, $210,000 loan. What type of interest will he be paying on the loan?

A

Simple Interest

12
Q

Given the net income of a property, the appraiser can determine an option of the value for that property by

A

dividing by the rate of capitalization

13
Q

What is a disadvantage of real estate investment?

A

it is NOT highly liquid

14
Q

New salesperson Juliet has been assigned office duty for Saturday and Sunday. What is another common term for office duty?

A

Floor time

15
Q

Seller Monica is selling her property to Harriet. What is Monica’s primary responsibility at closing?

A

deliver marketable title

16
Q

Vicky was posing as a customer of Established Realty. However, she was really there to see if Established Realty was following fair housing laws. Vicky was a

A

tester

17
Q

Morgan owned a large condo on the ocean. She died and no legal heirs were found. Who will receive title to the property?

A

state or county

18
Q

Buyer told broker Lena that they want to move to a Cuban neighborhood. Then buyer asked if Lena could show her the best home in the Cuban area. How should Lena respond?

A

Lena should explain to the buyer that she ethically and legally cannot recommend hosting based on national origin

19
Q

Why would a property with a rectangular system description also have a metes and bounds legal description?

A

because the property is irregular in shape

20
Q

if a cooperative corporation cannot pay its bills, what would happen?

A

The corp owing the property would be dissolved, and all of the residents could lose their interest in the coop

21
Q

A property has a Gross Income Multiplier of 14, and value of $800,000. What is its annual income?

A

$800,000 / 14 = $57,143

22
Q

An income producing property rents for $2,790/month and the GRM is 97. What is the estimated market value of the property?

A

$2790 x 97 = $230,630

23
Q

A cooperative is a type of what property?

A

a type of residential property

24
Q

What is true about the Americans with Disabilities Act?

A

Apartment manager might be required to allow a tenant with a disability to widen a doorway

25
Q

On a $280,000 loan, the lender charges a 2 point service charge. How much does the borrower have to pay for the 2 points?

A

2 points = .02%

$280,000 x .02% = $5,600

26
Q

Type of mortgage which allows the lender to increase the outstanding balance of a loan up to the original amount of the loan in order to advance additional funds is called what?

A

open-end mortgage

27
Q

Ownership of a property reverted to the grantor of the estate when its usage failed to conform to a stated condition in the grant is known as what type of estate?

A

fee simple defeasible

28
Q

Liens: $100,000 mortgage, $2,500 property tax bill, $8,000 mechanics lien, and a $25,000 judgement lien - which is paid off first after a foreclosure sale?

A

$2,500 property tax lien

29
Q

Alex’s home has been on the market for 8 months - what is the most likely reason the home has not been sold yet?

A

property is overpriced

30
Q

Tenant who stays beyond their lease without consent of the landlord is known as what?

A

tenant at sufferance

31
Q

what is another common name for the lot and block system of legal description?

A

recorded plat method

32
Q

what would be considered community property in a community property state?

A

car the spouses bought together after the marriage

33
Q

Carla has been walking across a path on John’s property for the last 22 years. John knows about this but has never given Carla permission. What might a court grant to Carla?

A

Easement by Prescription

34
Q

Non-judicial foreclosure is required to foreclosure on a

A

Deed of Trust

35
Q

Why is designated agency a good alternative to traditional dual agency?

A

even through the same broker represents each party, both the buyer and seller have a licensee who exclusively acts as their agent in the transaction

36
Q

The assessed value of Sidney’s home is $250,000 but the home was recently appraised at $225,000. As a result, Sidney believes her tax bill is way too high. What option does she have?

A

she can file a complaint with the local board of assessment review

37
Q

The cost to replace an improvement with original materials is known as what?

A

reproduction cost

38
Q

Written pledge by a lender to lend a certain amount of money to a qualified borrower on a particular piece of real hate for a specified time under specific terms is what?

A

conditional approval

39
Q

Justin defaulted on his home mortgage payments. The lender obtained a court order to foreclosure on the property. At the foreclosure sale, Justin’s house sold for $339,000 and the unpaid balance of his loan is $400,000. What must the lender do to revere the $61,000 Justin still owes?

A

Seek a deficiency judgement

40
Q

What clause protects a lender if they do not want the loan to be assumed by another party?

A

alienation

41
Q

what best describes the principle of conformity?

A

home maintains its highest value by being in a neighborhood with similar-type housing

42
Q

Broker Austin represents a party in a transaction where there is a dispute regarding the deposited escrow money. What should Austin do?

A

hold the money until both parties (or their lawyers) provide a written release

43
Q

Deed in Lieu of Foreclosure is ideal because

A

borrower’s credit is hurt less, avoids public notice, and there is less risk to the lender that the borrower will damage the property in revenge

44
Q

Earl orally agreed to a 18-month lease with landlord Blake. Is this contract enforceable?

A

No, all leases for longer than 1 year must be in writing

45
Q

What type of clause allows a broker to collect a commission for some period of time after the listing expires?

A

Carryover clause

46
Q

Tenancy in Common

A

Tenants share an indivisible interest, all tenants in common have distinct and separable ownership of their respective interests and any number of people may by co-tenants in a single property

47
Q

What can qualify for an FHA loan?

A

anyone with qualified income

48
Q

Independent Contractor

A

broker cannot tell them how to work, they are paid commission on all sales, and they will have to pay income taxes

49
Q

A(n) ____ is one that conflicts with the ordinances that where enacted after the use commenced.

A

Legal nonconforming use

50
Q

What type of agency cannot be revoked by the principal, nor is terminated if the principal dies?

A

agency coupled with an interest

51
Q

Broker Jon is attaching a rider strip to a For Sale sig. What info is most likely on it?

A

Jon’s call number

52
Q

If a comparable has one less bathroom than the subject, an adjustment is made by

A

Add value to the comparable

53
Q

The size of jurisdiction’s tax base is derived by

A

subtracting exemptions from assessed values

54
Q

Broker Jack has an agreement with seller Mark that says Jack will receive compensation if anyone except Mark sells Mark’s home. This is an example of what?

A

Exclusive Agency

55
Q

If a coopering broker accepts the offer of subagency from a listing broker, to whom does the cooperating broker owe fiduciary duties?

A

seller

56
Q

When the agency relationship has been terminated, the licensee is no longer considered the principal’s agent and does not owe any further duties to the principal except for

A

accounting and confidentiality

57
Q

Should a licensee who represents both buyer and seller tell the buyer about material defects on the seller’s property?

A

Yes, any defects known to the broker should have been disclosed to the buyer

58
Q

What principle is used with the Sales Comparison Approach rot value?

A

substitution

59
Q

One of the major considerations in a master plan is

A

the effect of new development on traffic patterns and the environment

60
Q

Jordan has a month to month lease with landlord Greg. What type of lease is this?

A

Estate from period-to-period

61
Q

The first step in the appraisal process is to

A

state the problem

62
Q

The cost of doing direct mail ads depends on

A

the frequency of the mailings

63
Q

Owner Tom decided to lease out his basement to a college student. By leasing the basement, Tom has

A

transferred a portion of his bundle of rights

64
Q

A broker induces an owner to sell by telling them that Muslims are moving into the neighborhood. This broker is guilty of what?

A

Blockbusting

65
Q

A seller decided to back out of a sales contract for no good reason. What recourse does the buyer have?

A

To sue for specific performance

66
Q

Under what type of contract is a seller obligated to sell, but the buyer is not obligated to buy?

A

Option

67
Q

Gerald is 55, singe and resides on his 3 acre property. Why will Gerald qualify for a homestead exemption?

A

Because he lives on the property

68
Q

A(n) ____ contract is one that unduly favors the party with superior bargaining power

A

unconscionable

69
Q

What type of property sale typically requires a property condition disclosure?

A

a 3 unit, multi-family dwelling

70
Q

Judicial Foreclosure is a _____ property sold under the supervision of a ____

A

mortgaged, court

71
Q

Real estate licensees should know enough about building ordinances to be able to

A

alert clients of potential problems in a home

72
Q

Rob owns his property and enjoys the full bundle rights. Can his use his property as collateral for debt?

A

Yes, he can encumber his property

73
Q

“This property has the best view in the entire county” is an example of

A

puffing

74
Q

What are the primary advantages of PEX piping?

A

PEX piping is able to withstand both high and low temps and is highly resistant to chemicals

75
Q

Escrow moneys should always be held in the broker’s ____ account

A

escrow

76
Q

160 County Drive has 4 acres of open pasture and a 1,900 SQFT home. The home has 2 beds and 4 baths. Call 555-555-5555 now for info! What is missing from this ad that makes it a blind ad?

A

The broker’s ID

77
Q

What is a valuable skill for a property manager to have?

A

knowledge of building systems

78
Q

What is the definition of “valuable consideration” in regard to contract validity?

A

somethings specifically offered in exchange for something else

79
Q

How might a voidable contract become valid?

A

if the party who has reason to disaffirm the contract elects instead to perform

80
Q

Broker Tom hires salesperson Wes as an independent contractor. Wes can expect what from Broker Tom?

A

performance expectations

81
Q

Broker Ron wants to open a separate escrow account for each transaction he is involved in. Is this legal?

A

Yes, there is no legal limit on the number of escrow accounts a broker can have

82
Q

A shopping center is an example of what type of property?

A

Retail

83
Q

A will that is not signed is considered to be

A

invalid

84
Q

Promissory Notes

A

property is collateral, primary evidence of a loan, is a negotiable instrument, which means that the lender can sell the note to a third party

85
Q

In the appraisal process, looking at the number of rec facilities, the distance to schools, and adequacy of public transportation is called?

A

Neighborhood analysis

86
Q

Quarry Mountain Subdivision requires all property’s to have fences that are all at least 8ft tall surrounding each property. This is an example of what?

A

Deed restriction

87
Q

Licensee Alex only represents the buyer in a transaction. What is Alex called in this situation?

A

Single agent

88
Q

When should the managing broker send a thank you for listing letter to the sellers?

A

within the first few days of obtaining a listing

89
Q

Listing Agreement

A

listing price is listed, can be modified but only if all parties agree in writing, and contract law applies to it

90
Q

Mary abandoned her property by failing to pay its property taxes, and the property reverted to the state. This is an example of what?

A

Escheat

91
Q

Neal’s home has been foreclosed on and sold at Sheriff’s sale. The sale brought in $500,000 and the total liabilities on the home were $425,000. Who receives the additional $75,000?

A

Neal

92
Q

What is a forecast of income and expenses that can be projected over 5 years?

A

Stabilized Budget

93
Q

Why is the condition of bearing walls more important than non-bearing walls?

A

bearing walls support the ceiling and roof

94
Q

Which parties typically purchase title insurance once the transaction is complete?

A

Lender and buyer

95
Q

What form does RESPA require lenders to use to detail the costs that the buyer and seller will pay at closing?

A

closing disclosure

96
Q

What is the most common lease term for space in an office building?

A

3-5 years

97
Q

Bobbie decided to redeem her property after a tax sale. Bobbie exercised her

A

Statutory right of redemption

98
Q

How does the Federal Reserve control lenders?

A

the tell lenders what percentage of assets they must keep as reserves

99
Q

What is the balance on an amortized loan of $780,000 after the first payment if the interest rate is 5% with a monthly P&I payment of $3,780?

A

$780,000 / 12 months =$65,000
$65,000 x 5% = $3,250
$3,780 - $3,250 = $530
$780,000 - $530 = $779,470

100
Q

The essential criteria for an acceptable legal description is that it

A

accurately locates the parcel in the opinion of a court