In Class Test Flashcards
(109 cards)
1
Q
How often do we renew our licenses and by what date?
A
Every 2 years (Biennial) on June 30
2
Q
How many hours of training are required every 2 years (Biennially)
A
10 hours
3
Q
If you get your license revoked, how long do you have to wait to reapply and what vote do you have to get
A
- 3 years
- Majority of the real estate commission
4
Q
May a BIC be in charge of more than 1 office?
A
Yes
5
Q
‘A’ conveys a life estate to ‘B’… when ‘B’ dies, ‘C’ will get the property; during the life of B, what interest does ‘C’ have?
A
Remainder Interest
6
Q
‘A’, ‘B’ and ‘C’ are joint tenants with the right of survivor-ship, ‘C’ conveys his interest to ‘D’ (presumably with the consent of ‘A’ and ‘B’), then ‘B’ dies. What are ‘A’ and ‘D’? (Chapter 7)
A
Tenants in Common (A has 66%)
7
Q
If the state wants to acquire land for a road, it exercises its right of
A
- imminent domain
- The process of imminent domain is condemnation
8
Q
Under the civil rights act of 1968, may a private social club limit the sale of club properties to members only?
A
Yes, they can as long as they have open membership
9
Q
What are the protected groups from the civil rights act of 1968?
A
Familial Status Religion Sex Handicapped Color Race National Origin F.R.E.S.H.C.O.R.N.
10
Q
If the agent knew the property was 10% smaller than it was advertised, is she liable?
A
Yes - Fraud
11
Q
If the capitalization rate goes up, the value goes?
A
Down
12
Q
What type of state legislative act allow local governments to zone?
A
Enabling Act - all power at the local level comes from the state. This is a form of Police Power
13
Q
If the contract was signed under duress, what is the legal status of the contract?
A
Voidable (NOT VOID)
14
Q
Four ways to deal with risk in property management
A
- Avoid
- Control
- Retain
- Transfer
15
Q
May a BIC be in charge of more than 1 company?
A
Yes
16
Q
- How long does the BIC have to deposit an earnest money check?
A
48 hours from the acceptance of the offer except weekends and bank holidays
17
Q
Erosion of what two things can affect the setback line?
A
- Beach Front
- Sand Dunes
18
Q
What are the main three essential services the Landlord must provide access to?
A
- Heat
- Electricity
- Hot & Cold Water
19
Q
What defects do we not have to disclose because they are not physical defects
A
- Psychological defects AKA Stigma defects
- Death
- Virus not normally transmitted through a house
- Offsite hazard that doesn’t directly affect the property
20
Q
What are aspects that would make a contract nullable
A
Minor, intoxicated, Milly-ill?, duress, coerced, fraud, under the influence
21
Q
What kind of deed contains 5 warranties?
A
General Warranty Deed
22
Q
If the agent channels to or away from areas based on protected status, that is known as
A
- Steering
- Violation of fair housing act of 1968
23
Q
What kind of deed contains no warrenties?
A
Quick claim deed
24
Q
What is the primary feature of a joint tenancy
A
- Right of survivorship
- When one joint tenant dies, the surviving tenant gets their interest, not the heirs
25
The agent's contract says he will not be an employee, which makes him
An independent contractor
26
If the home lacks sufficient plumbing, it suffers from what?
Functional Obselesence
27
If the building was built before the current zoning, it has what kind of legal use?
Non-conforming use (legal term for grandfathered in)
28
When investors are talking about the rate of return income properties will produce, they are talking about what rate?
Cap rate (Capitalization Rate)
29
What events would terminate an offer?
```
-Rejection
Revocation
-Loss of title
-Time
-Death
-Destruction
```
30
What kind of deed would we use to clear a cloud on Title
Quit Claim Deed
31
Bitsy's home is the smallest in a neighborhood of large expensive homes, she benefits from what?
Progression
32
What may zoning regulate about a property?
- Use
- Size
- Setback
- Design/Style
33
The appraiser is evaluating a house being used as a restaurant, which approach has most weight?
Income approach
34
What kind of inspection is recommended to a residential buyer?
Home Inspection
35
May a lendor refuse a loan to a member of a protected group based on a history of poor credit
Yes
36
Civil Rights Act of 1968 because there are no exceptions for what kind of discrimination?
Race
37
If an agent says "I hear they are moving in, better sell your house" is an example of
- Block Busting
38
What federal act prevents a lender from discriminating based on marital status
- ECOA - Equal Credit Opportunity Act
| - Has additional groups protected, not protected in Fair Housing Act
39
May an agent offer a discount only to members of his own ethnic group?
NO
40
- Jones vs. Mayer pertains to what kind of discrimination?
Race
41
A condo discrimnates against a condo with children, what kind of discrimination is that?
Familial
42
A property manager is what kind of agent based on scheduled authority?
General Agent
43
Americans with Disabilities Act applies to employers with how many employees?
15 or more
44
Does Standard Title insurance cover unreported rights of parties who are in possession?
- It does not
| - Do a visual inspection of the property before you buy
45
15 days unexplained absence with unpaid rent constitutes
Abandonment
46
4 ways to deal with risk in property management
- Retaining
- Transfer
- Avoid
- Control
47
4 ways to deal with risk in property management
- Retaining
- Transfer
- Avoid
- Control
48
If the sales person has a change of address must the RAC notify the BIC?
Yes
49
- When is it legal to act both for the seller and buyer in the same transaction and what is required?
- Dual agency, formed, written consent from both parties
50
- What 5 groups don't have to have a license to do certain real estate transactions?
- Attorneys
- Owners (buyers/sellers)
- Foresters
- Gov Employees
- Receivers & Trustees
51
- For what kind of property must the seller complete the seller disclosure form?
- Residential up to 4 units for previously occupied
| - Not required for new construction
52
If we get a security deposit, what kind of account must we deposit it?
Trust Account
53
What are the 4 disciplinary actions the RAC can take against an agent
- Revocation
- Suspension
- Fine up to $5,000
- Public reprimand
54
If an agent wants to transfer to a different company by mail, what do they do?
Use the transfer form, signed by the new BIC
55
Net price listings are what in South Carolina?
- Illegal
- Net price listing is when the seller agrees the listing company may keep any amount over the agreed amount as their commission.
56
What would be some grounds for discipline against the agent
- Failure to disclose
- Forgery
- Co-mingling
- Guarantee future profit from resale
57
Max penalty for practicing without a license
?
58
What three groups can get a reduction in property taxes under the SC property tax exemption?
- 65 and older
- Legally Blind
- 100% Disabled
59
What are the four exceptions to confidentiality
- Required by law
- Written Consent
- Defend yourself from allegation
- When the information is already publicly available
60
A Buyer who chooses not to be represented is a
Is a customer
61
What are the 3 basic requirements to get an enforceable fee?
- Written fee agreement
- MLS could be written fee agreement
- Procurement of a sale
- License
62
What must appear on every RE advertisement?
- Full Company Name
| - On internet can have link to home address instead of name
63
What SC Act sets out the duties of the Landlord and Tenant?
SC Residential Landlord/Tenant Act
64
When is designated AC appropriate?
2 Agents under the same BIC on the same transaction
65
What is an example of a general Lien?
A Judgement
66
The SC Consumer Protection Act gave the buyer freedom to choose his own
- Closing attorney
| - Insurance agent
67
What kind of buyer agreement is that if seller doesn't pay, the buyer will pay the commission regardless of who procures the sale?
- Exclusive buyer/agency agreement
- Other two possibilities
- Open
- Exclusive Agency
68
When does the seller not pay the buyer's commission?
Usually FISBO
69
What other liens is not placed in public record?
- Property Taxes
- Special Assessments
- Why?
- They already have priority
70
The owner with the most expensive house suffers from?
Regression
71
The owner with the least expensive house benefits from?
Progression
72
Combine multiple types of appraisal
Reconciliation
73
On which approach would the appraiser put the most weight on a shopping center?
Income Approach
74
The led paint form is required on houses built before
1978
75
Liability under the superfund is what three kinds of liability?
- Strict
- Joint and Several
- Retro-active
76
- If terms are struck through and new terms added then
Have client initial AND date where new terms are added!!
77
- When the buyer enters into the contract, they get what kind of title?
Equitable Title
78
- An option to purchase binds what party?
- It binds the seller
| - They must sell of the buyer uses the option
79
Under the statute of frauds, contracts for the sale of RE must be in what?
Must be in writing!
80
If time is of the essence and 1 party is ready to close and the other is not, which party can declare a breach?
The party that is ready
81
What events would terminate a listing agreement?
- Death of the seller
- Substantial destruction of the property
- Mutual agreement
- Closing
- Loss of Title
82
Confidentiality is part of what other fiduciary duty?
Loyalty because we keep the confidences of those to whom we are loyal
83
Where does the common law come from?
Court decisions and tradition
84
The buyer's agent told the buyer the wrong zoning, which duty did he breach?
?
85
The property is inheritable and has no limitations on its use, what kind of property is it?
Fee Simple
86
The property is deeded for recreational purposes only, it is a what?
Determinable Fee
87
A development that combines different uses is what kind of community?
Master Plan
88
A senior wants to get cash from the equity in her house, she applys for...
Reverse Annuity Mortgage
89
If the interest is paid after the period in which it is earned, it is payed in
Aarears
90
An adjustable rate mortgage (ARM) is tied to an economic indicator known as a
Index
91
If a book store installs book shelves, may it remove them when the lease expires?
Yes, because the bookshelves are a derived income, which is called trade fixtures which is considered personal property.
AKA Yes because they are Trade Fixtures
92
In a residential sale, after the contract is signed, may the seller remove lighting fixtures in the bathroom?
No
93
What are the four tests to determine if something is a fixture?
- Annexation (attachment)
- Intention of the parties
- Agreement (controls regardless of others)
- Adaptation
94
In a land contract, when does the buyer get the deed? (vendor gives to vendee)
After the final payment
95
The lease has expired, the landlord continues to accept the rent monthly, what kind of leasehold estate is that?
?
96
In a sale and leaseback, the buyer becomes the?
Lessor (aka Landlord)
97
The buyer's agent keeps the buyer informed about new properties, she is exercising the duty of what?
Disclosure
98
Which Federal Law requires finance charges to be stated as an APR?
The Truth in Lending Act
99
If the seller dies, what happens to the listing?
It is terminated
100
The seller has just signed the buyer's offer, what should the listing agent do with that document?
Promptly deliver it back to the buyer's agent.
101
What are the three main steps of the COST appraisal process
- Estimate the land value
- Estimate the cost of the improvements
- Deduct appreciation of the improvements
102
What law requires the lender to provide a statement with all fees and charges?
Real Estate Settlement Procedures Act (RESPA)
103
A closing statement is called a "Closing Disclosure" - On a cash deal use "HUD 1"
HUD-1 = Housing and Urban Development Form #1
104
'A' conveys a life estate to 'B'... when 'B' dies, 'C' will get the property; during the life of B, what interest does 'C' have?
Remainder Interest
105
What kind of damages is earnest money?
Liquidated Damages
106
What would a search of the public record show about the property?
- Gives chain of title (owner)
- Sale Price
- Liens
- Mechanics Liens
- Mortgage Lien
- Written Easements
- Litigation Pending -> go to county clerks office to get more info
- Extra Info: Tax liens have statutory have priority so they are not recorded
- Extra Info: Priority = Who gets paid first in a foreclosure
107
What does a squatter not have to show
- Permission
| - Must show Squat continuously for 10 years
108
Buyer makes an offer open for 10 days, on the fifth day the buyer revokes the offer, what happens to the earnest money?
The Buyer gets the money because you can revoke before acceptance
109
Who has the weakest position, the person with the recorded deed, or someone with an unrecorded deed who never takes possession
The person with the unrecorded deed
