Practice Exam 3 Flashcards Preview

Real Estate > Practice Exam 3 > Flashcards

Flashcards in Practice Exam 3 Deck (46)
Loading flashcards...
1
Q

In the law of ___ in the real estate vocation defines the rights, duties and responsibilities of all legal parties

A

Agency

2
Q

Ashley pays HOA dues of $660 for the year. She sells her home and closes on June 15. What is the amount of the prepaid HOA portion due back to Ashley using the 12mo-360 day proration?

A
seller credit, debit buyer 
$660/12mo = $55/month
$55 / 30 days = $1.83 day
July - Dec = 6mo
June - 15 days 
6mo x $55 = $330
15 days x $1.83 = $27.45
$330 + $27.45 = $357.50
3
Q

If a broker procures a buyer who can meet the seller’s terms and conditions, is the broker due a commission?

A

YES

4
Q

If a broker produces an offer with earnest money is the broker due a commission?

A

NO

5
Q

What is the least important item in a PM agreement?

A

rental price of each unit

6
Q

A recorded legal doc that gives constructive notice that an action affecting a certain property has been filed in court is called

A

a lis penden

7
Q

Commercial zoning can regulate

A

intensity of usage

8
Q

1,000 cotton plants is classified as an?

A

emblement

9
Q

Undue influence or duress applied to one party to a contract make the contract

A

voidable

10
Q

Ann planted a rose garden on the corner of her neighbor’s property and the neighbor did not know. The statutory period has elapsed and Ann claimed the rose garden. Would she have a good change of getting rights to an easement by prescription?

A

Yes bc she had made open use of the property

11
Q

If Jamie’s quarterly interest payments are $150 on a $12,000 loan, what is her annual interest rate?

A

$150 x 4 quarters = $600/year

$600 / $12,000 = 5%

12
Q

What deed is the most commonly used in the US?

A

Warranty (guarantees the seller a clean title)

13
Q

Can a seller be an escrow agent?

A

NO

14
Q

IF a client of a licensee relied on certain promises made by the licensee, and these went unfulfilled - the licensee may be liable for deceptive trade practices, and violations of the state’s

A

consumer protection act

15
Q

Who is usually NOT an agent?
Person working for MLS, PM for management corp, broker employed by a seller, or a person working for someone else under power of attorney?

A

Person working for someone else under power of attorney

16
Q

Property sold for $12,100 and gains a 10% profit for the owner. What was the original cost?

A

100% + 10% = 110%

$12,100 x 110% = $11,000

17
Q

2 story home measures 48ft x 25ft and is $70/SQFT. What is the construction cost?

A

48 x 25 = 1200 x 2 = 2400 SQFT

2400 x $70 = $168,000

18
Q

a wife’s life estate interest in the husbands property is known as

A

dower

19
Q

Building sold for $60,000 with a 10% down payment and obtained a loan. 1% loan origination fee - what was the total cash used for the purchase?

A

$60,000 x .9 = $54,000 loan x 1% = $540
$60,000 x 1% = $6,000
$6,000 + 540 = $6540

20
Q

Broker produces a buyer who is interested in buying a listed property. At closing, the seller is unable to provide title and the buyer cannot come up with financing to purchase. Is the broker due a commission?

A

No, because he did not produce a willing and able buyer

21
Q

Home appraised for $93,000 and borrower put 20% down. What is the loan amount?

A

$93,000 x 80% = $74,400

22
Q

$82,500 loan that is 80% of the appraised value. What was the appraised value?

A

$82,500 / 80% = $103,125

23
Q

Income approach to value would be most important in the appraisal of what type of building?

A

Office building

24
Q

Tenant installed a satellite TV dish 3 years ago and took it with her when she moved. The conversion of real property to personal property is an example of

A

severance

25
Q

IF a person believes that they are a victim of illegal discrimination in housing, they would

A

file a complaint with HUD

26
Q

Quarterly payments of $1340.63 on a $65,000 - what is the interest rate?

A

$1340.63 x 4 = $5362.52 / $65,000 = 8.25%

27
Q

Which is NOT an example of police power?

zoning ordinances
building codes
restrive covenants
city planning requirements

A

restrictive covenants - they are private matters enforced by residents

28
Q

Homeowner just discovered they have a termite infestation. This is an example of

A

possible curable physical obsolescence (curable = cost if less than the economic benefit of a problem free home)

29
Q

What is the cubic footage of 60ft x 8ft x 3in?

A

3in / 12 = 0.25

60 x 8 x .25 - 120

30
Q

$154,000 sale 6% commission and 50/50 split. What is the broker’s commission?

A

$154,000 x 6% = $9240

$9240 / 2 = $4620

31
Q

Depreciation refers to

A

loss of value in improvements from any cause

32
Q

Federal Communications Commission provides a list of phone numbers of consumers who do not want to be contacted by telemarketers. This is commonly called

A

The National Do Not Call Registry

33
Q

A listing agreement is a legal

A

contract between the seller and brokerage that est. their agency relationship

34
Q

in 1988, the Fair Housing Amendments Act added which 2 protected classes?

A

handicap and familial status

35
Q

$84,500 house, $2,000 earnest money, loan for $67,600. March 15 (buyer) settlement and prorated taxes of $1,880.90/year have been paid. Add closing costs of $1250. Using the actual number of days method, how much cash does the buyer need to bring to the settlement?

A
March 16 - Dec 31 = 291 days 
$1880.96 / 365 = $5.153
$5,153 x 292 days = $1,504.97
$84500 - 67600 = $16,900 down payment - $2,000 EM = $14,900
$14,900 + $1,504.97 + $1250 = $17,654.77
36
Q

Bilateral contrat is a contract

A

where a promise by 1 party is given in exchange for a promise by another party

37
Q

Permission granted to hunt on another’s land is an example of

A

license

38
Q

Recorded history of matters that AFFECT the title to a specific parcel of real property is called

A

abstract of title

39
Q

What BEST describes why a neighborhood analysis is important to the informed licensee?

A

it can help render an opinion of value

40
Q

If an owner cancels a listing in order to contact the potential buyer and sell to them directly, can the agency relationship be terminated?

A

NO

41
Q

If a seller tells a licensee what the want to list the property at, what should the licensee suggest as a sales price?

A

within range of the most recent “asking and sold”: comparables in view of the seller’s urgency and market conditions

42
Q

The process in which boundaries are measured and land areas are determined is called

A

a survey

43
Q

The remnant of an estate that the grantor holds after they have granted a life estate to another person, if the estate will return to the grantor, is called

A

reversion

44
Q

Licensee receives 35% of total commission from her broker, what is her BROKER’S share is the property sold for $23,000 and a 6% commission?

A

$23,000 x 6% = $1,380

$1,380 x 65% = $897

45
Q

Tenant rents a space for $1,500/mo and agrees to pay 3% gross annual sales over $200,000. What were gross sales if total rent paid for the year was $30,000?

A

$30,000 - $18,000 (1500x12mo) = 12,000

12,000 / 3% = $400,000 + $200,000 = $600,000

46
Q

Seller conveyed a quitclaim deed to the buyer.Upon receipt of the deed, the buyer may be certain that

A

all of the seller’s interests in the property belong to the buyer