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Flashcards in Difficulty Level II Exam Deck (80)
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1

M was trespassing on N's land. N asked the court to permanently bar M form this wrongful activity. What remedy was sought by N?

An Injunction

2

Which of the following would be an example of functional obsolescence?

Surplus Utility (page 306)

3

Which of the following would be a credit on a seller's closing statement?

Purchase Price

4

D took title to property under the name BD. When she sold the property, she signed CD as grantor. The buyer has?

A cloud on the title (page 108)

5

How are the taxes on a property calculated?

Multiply the assessed valuation by the tax rate in mills

6

Part of a legal description reads T7R4W. The south boundary of the township is so described is how many miles north the of the base line?

36 miles north

7

when a new mall opened the rental income of the old mall was reduced by $4,600 per month Assuming a 12.5% cap rate, what was the loss in value for the old mall?

formula is:
income (for the year) / cap rate = value
$4,600 x 12 = $55,200/12.5%=$441,600

8

A valid contract could be unenforceable because of :

the statute of limitations. (it is out of date)

9

The clause in a deed that defines the "extent of the estate granted" is known as what type of clause?

The Habendum Clause (The have and to hold clause, following the granting clause which defines the extent of ownership the grantor is conveying. (page 104)

10

If Z's interest in land entitles her to impose restrictions on it's future use, her interest is a

Fee simple estate

11

To be valid, a deed requires that it:

is accepted,
has words of conveyance
and is in writing. It need not be signed it takes effect on the date of DELIVERY.

12

On a real estate closing statement, prepaid rent would always be a:

Debit to the seller (Because the seller has received money for use beyond the seller's ownership period, it is a seller debit. The seller must turn over the prepayment to the buyer.)

13

A broker is prohibited from accepting a listing from a minor because of:

The fact that a minor cannot appoint an agent. (a minor lacks contractual authority)

14

RESPA (Real Estate Settlement Procedures Act) applies to:

First Mortgage.. Applies to any residential R/E transaction involving a new first mortgage loan. Designed to ensure that the buyer and seller are both fully informed of all costs related to closing the transaction.

15

What is Ground Rent?

The portion of the rent attributable to the land alone

16

Owner E gave open listings to brokers F, G, and H. Which of the following statements is true of the brokers?

The one who procures the buyer earns the entire commission.

17

If three brokers all talked to buyer J, who later purchased directly from E, which broker is entitled to a commission?

The broker who started an uninterrupted chain of events that directly led to the sale.

18

An appraiser could determine the cost of replacement by using all of the following methods:

Unit in place,
Quantity survey,
Construction cost index.

However an appraiser could not use Observed condition to determine the cost of replacement because this is necessary to determine the accrued depreciation

19

What type of liability does a purchaser have "subject to a loan"?

None!
The Seller remains liable for any possible deficiency judgement should the buyer default.

20

An offer can be terminated by:

A counter offer (an acceptance contingent upon a change in price)
A revocation by the offeror
The Death of the offeror.

it can not be terminated by asking for more time.

21

FHA Loans are:

Fully amortized they can not have balloon payments.
they cover housing only
points may be payable by the buyer
and an FHA appraisal is required

22

In determining net income for the income approach, an appraiser would be concerned with all of the following:

Vacancy factor,
Collection losses &
Management expenses.

23

In determining the cost to build various structures on a vacant lot and the value the property would have with the improvements, an appraiser uses the:

The Development Method which considers cost of construction and deducts this from estimated value of land and structure when completed. This provides the land value for the use. The development method is used to determine the highness and best use.

24

Which is true of a blind ad?

All ads must contain the salesperson name and agency. Without this it is usually gounds for disciplinary action.

25

Open Mortgage

Can be paid at any time without penalty

26

A house that gains in value because of higher-cost homes being built in the area is an example of the principle:

Progression: an appraisal principal that the value of a lesser-quality property is favorably affected by the presence of a better quality property.

27

J & K are brothers and hold the title to the family farm in fee simple. Upon the death of either, his interest will pass with out probate to the survivor. How do they hold title?

As Joint Tenants because there is the right of survivorship (and no probate)

28

Freehold Estates are:

Life Estates and Fee Simple.

29

One tenant in common, without the concurrence of the other tenants in common, may:

Use the property without paying the covenants for the use.
will his or her interest to someone other than a cotenant.
Sell his or her interest without approval of the covenants.

HE MAY NOT place an easement over the property

30

A 660' x 660' parcel contains what percentage of the land contained in a 1,320' x 1320' parcel?

25%
660 x 2 = 435,600
1320 x 2 =1,742,400
435,600/1,742,400=.25 or 25%