What is a report from a licensed appraiser that sums up a property’s market value based on collected data called?
When Shondra originally bought her house, she made a 30% down payment on the $600,000 purchase. Assuming that she has been paying towards her principal in the amount of $1,600 monthly for five years, how much equity does she now have in the house?
She has $276,000 in equity.
Equity = Value of asset - Amount owed on asset
When a property management agreement is signed, it creates a ________ agency relationship between the ________ and the ________.
When a property management agreement is signed, it creates a GENERAL agency relationship between the OWNER and the PROPERTY MANAGER.
With the exception of tax liens, how are liens generally prioritized?
Liens are prioritized by date of creation, with older liens being paid off first in the event of a foreclosure.
A Christian organization owns a fourplex. It wants to rent to only Christian tenants. Under the federal Fair Housing Act, is this legal?
Yes. Religious organizations which rent to tenants for residential purposes are exempt from the Fair Housing Act.
Hans bought an investment property for $5,250,000. The NOI of this property is $367,500. At what cap rate did he purchase this property?
He purchased the property at a 7% cap rate. The cap rate is found by dividing the NOI by the property value.
CERCLA was passed in 1980 to:
CERCLA established a Superfund to clean up uncontrolled hazardous waste sites and to respond to spills.
Who provides flood insurance to homeowners?
Flood insurance can be purchased only from the National Flood Insurance Program (NFIP).
When you’re talking about mortgages, what is another name for an origination fee?
Which ownership rights can be sold separately from a property’s surface rights?
The four different rights — subsurface, surface, air, and water — may all be sold together OR separately.
Which of these is an easement that is attached to a piece of land, regardless of owner?
An easement appurtenant is an easement that is attached to a piece of land, regardless of owner.
An unmarried Texas couple purchased real estate together. How would the deed identify how they hold their interests if they specify they want them passed to the survivor in case of death?
The deed would identify the interests of the owners as joint tenants with the right of survivorship.
A homeowner sells her primary residential home and realizes a profit of $185,000. How much tax will this homeowner pay on the capital gains?
None. Homeowners are exempt from capital gains up to $250,000 per person every two years.
Which federal law amended the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)?
In 1986, six years after CERCLA became law, it was amended by the Superfund Amendments and Reauthorization Act, or SARA. SARA designated more money to the Superfund trust, and established new environmental laws and regulations.
Which of these is a protected class under the federal Fair Housing law?
Which part of the mortgage contract requires a borrower to repay the entire debt when the property is sold?
An alienation clause would require a borrower to pay the mortgage debt in its entirety upon the property being sold.
All federally related loan programs require a property to have which of these?
An appraisal is required for all federally related loan programs.
What will most lenders require homeowners to obtain before closing?
Homeowners insurance is required by most lenders.
Liability for others by mandate of law or by express agreement is called:
What is the name of the economic characteristic that makes land a distinctive commodity?
How long after an incident does a victim of housing discrimination have to file a complaint with HUD?
How does errors and omissions insurance (E&O) affect the defendants in fair housing cases?
While errors and omissions insurance is available for both brokers and their agents, E&O normally covers mistakes and not violations of public law. It normally offers no protection in discrimination lawsuits.
Darleene is looking at an investment property. The annual net operating income (NOI) of the property is $310,000. If the capitalization rate for this class of property in this area is currently 9%, what is the total value of this property?
The value of the property is $3,444,444.44. Net operating income (I) ÷ capitalization rate (R) = value (V).
A property owner has the right to tell other people that they cannot trespass on their property. What is this right called?
Right of exclusion.