Practice Exam 4 Flashcards Preview

Real Estate > Practice Exam 4 > Flashcards

Flashcards in Practice Exam 4 Deck (42)
Loading flashcards...
1
Q

5 acres of land were zoned for residential and area surrounding too. If the owner of the 5 acres wants to re-zone to commercial, what would they have to obtain to allow for the change?

A

spot zoning

2
Q

When a transaction that involves earnest money has consummated, when and how must the sponsoring broker disburse the funds?

A

according to the terms of the contract regarding the release of earnest money

3
Q

Amount of a loan expressed as a percentage of the value of the real estate offered as collateral is the

A

LTV ratio

4
Q

5 individuals join together to purchase a property and they own the property in severally. What type of business organization have they formed?

A

corporation

5
Q

Person who has the entire bundle of rights in a parcel of real estate unencumbered de deed conditions is said to own a

A

fee simple absolute estate

6
Q

The type of lease that is for an indefinite amount of time and may be cancelled by the landlord or tenant at any time is known as a

A

estate at will

7
Q

The loss of value due to the normal wear and tear on a property is what type of depreciation?

A

physical deterioration

8
Q

Points are usually charged to do what?

A

improve the yield on a mortgage

9
Q

3 people own a property as joint tenants. 1 tenant dies, how is the property now owned?

A

The 2 remaining joint tenants now own 1/2 of the property each as joint tenants

10
Q

a lot measuring 120’x200’ is selling for $300 a front foot. What is its price?

A

120’ x $300 = $36,000

11
Q

If the amount realized at a sheriff’s sale as part of a mortgage foreclosure is more than the amount of the indebtedness and expenses, then the excess belongs to whom?

A

the mortgagor (previous owner)

12
Q

As an agent for the seller, a real estate broker can

A

solicit an offer to purchase the property from a prospective buyer

13
Q

The physical characteristics of land represent the land’s immobility, non homogeneity and

A

indestructible nature

14
Q

A metes and bounds legal description is used to describe what?

A

irregular pieces of property

15
Q

An extension of credit from a seller to a buyer to allow the buyer to complete the transaction is what type of mortgage?

A

purchase money mortgage

16
Q

Tyler purcahsed a home and applied for a mortgage at Southgate Bank. The loan was made and payments were paid on the 1st of each month, after 3 years Tyler lost his job and could not make the payments. What can the mortgagee do?

A

file a court action to have the house sold to satisfy the debt

17
Q

Bill is building a new house and makes sure the 1st floor joists are completely covered with sub-flooring upon which exterior walls and interior partitions are erected. What type of frame construction is this?

A

platform frame

18
Q

Which is not an involuntary method of conveying property?

escheat
condemnation
quitclaim
adverse possession

A

quit claim

19
Q

PM’s represent the ____ interest, not the _____

A

owner’s, tenant’s

20
Q

A deed conveys a ____ interest in real estate

A

present

21
Q

A will conveys ____ interest in real estate until after the death of a testator

A

no

22
Q

A will conveys __ interest in real estate until it is ___

A

no, probated

23
Q

If the NOI and the cap rate were known, how would an appraiser find the value of a property using the income cap approach to value?

A

NOI / cap rate

24
Q

High vacancy rate may be caused by any of the following EXCEPT:

inept management
poor location
excessive rent
impressive amenities

A

impressive amenities

25
Q

Some states also allow a licensee to act in a non-agency capacity. Depending on the sate, the licensee could be known as all of the following EXCEPT

transaction broker
subagent
facilitator
coordinator

A

subagent

26
Q

What is the primary benefit of radio and TV ads for real estate firms?

A

they reach a much larger audience than most other mediums

27
Q

The benefit, interest or value that induces the parties to enter into a contract is known as

A

consideration

28
Q

Buildings that were erected before the enactment of a zoning ordinance and do not comply with the zoning limits are called

A

nonconforming use

29
Q

If a property owner tells a licensee that their commission will be anything above x listing price, the listing is known as

A

a net listing

30
Q

After contracting for a house, a buyer applied for a conventional loan at a mortgage banker. What would NOT be listed on the good faith estimate of closing costs?

A

broker’s commission because they are usually paid by the seller

31
Q

a recorded value deed must contain all of the following EXCEPT

signature of grantor
signature of grantee
granting clause
an acknowledgement

A

signature of the grantee

32
Q

an oral contract in which the parties state the contracts terms and express their intentions in words is known as

A

an express contract

33
Q

What is NOT a type of listing?

open
exclusive agency
exclusive right to sell
MLS contract

A

MLS contract

34
Q

Blockbusting is an attempt

A

to panic a neighborhood into thinking property values will decline due to unwanted person(s) moving in

35
Q

A broker places a buyer’s earnest money deposit in his personal funds account. The broker does not spend the money before the closing. The broker has

A

commingled funds which is an illegal act

36
Q

It is necessary to calculate a dollar value for depreciation when using what approach?

A

cost approach to value

37
Q

What would require the value of the land to be calculated separately form the value of the improvement?

A

cost approach

38
Q

The rights of ownership of real property does NOT include the right of

A

compatibility (deals with the transaction and not the property itself)

39
Q

A contract in which all the parties have fulfilled all their promises and performed the contract is known as

A

an executed contract

40
Q

The Civil Rights Act of 1866 permits discrimination in housing based on race under what circumstance?

A

NEVER

41
Q

Broker decides not to disclose to a buyer that the property’s well is almost dry. The broker has

A

committed passive fraud

42
Q

The government’s right to make laws and regulations for the general welfare of the public is known as

A

police powers