PSI Exam Flashcards
to pass the PSI (272 cards)
1
Q
The land and anything permanently affixed to it
A
real property
2
Q
movable objects (chattels) that do not fit into the definition of real property
A
personal property
3
Q
an item of personal property that has been converted to real property be being permanently affixed to the land or building
A
fixture
4
Q
A fixture that is permitted to be and is detached from the land or the building would revert to personal property and can also be called
A
severance
5
Q
geographic location of a parcel of land is fixed and can never change is called
A
immobile
6
Q
the long term nature of improvements plus permanence of the land tends to create stability in land development is its quality of being
A
indestructible
7
Q
all parcels differ geographically and each parcel has its own location
A
unique or nonhomogeneous
8
Q
supply in given location or of a specific quality can be limited would be
A
scarcity
9
Q
placement of an improvement on a parcel of land affects value and use of neighboring parcels of land.
A
improvements
10
Q
improvements represent a large fixed investment; some such as drainage and sewerage cannot be dismantled or removed economically.
A
permanence of investment
11
Q
refers to peoples choices and desires for a given area
A
area preference or situs
12
Q
to locate a property bound requires two permanent reference markers, has a POB, uses reference to linear measurements, may be established on distance between monuments (fixed objects), and returns to POB to be fully enclosed is what type of legal property description
A
metes and bounds
13
Q
based on measurements from base lines and principal meridians, where base lines run east to west and meridian lines north to south, and forms townships and township lines.
A
rectangular survey
14
Q
all parallel base lines that run 6 miles apart divide land into strips east and west of the principal meridian that are referred to as _____ and meridian lines that run 6 miles apart divide the land into strips north and south of the baseline are referred to as _____
A
ranges; tiers
15
Q
a township is __ miles square, which is ___ square miles.
A
6; 36
16
Q
a square mile contains ___ acres and one acre is equal to ______ square feet.
A
640; 43,560
17
Q
to determine the number of acres in a rectangular survey description, multiply all the denominators and divide the result of this mulitplication into 640 acres. NW 1/4 of the SW 1/4 =
A
4x4= 16 divided into 640 acres = 40 acres
18
Q
____ rights may be owned by the owner of the surface rights or by separate third party owners of subsurface rights, such as natural gas or oil companies, as well as by developers or the homebuilder.
A
mineral rights
19
Q
if the subsurface rights are owned by an oil company, the landowner could find an oil well on his property over which he or she would
A
have little or no control.
20
Q
the right to occupy, use, or control the space above a property, frequently utilized in larger cities
A
air rights
21
Q
ownership is determined by state law
A
water rights
22
Q
rights granted to owners along a non-navigable river or stream.
A
reparian rights
23
Q
rights granted to owners along an ocean or a large lake
A
littoral rights
24
Q
right to use water is controlled by the state rather than the adjacent landowner.
A
prior appropriation
25
charge, claim, or liability that attaches to real estate
encumbrance
26
affects the title, and is a charge against a property that provides security for a debt or obligation of the property owner.
liens
27
type of lien that refers to specific real or personal property, and include real estate taxes, mortgages, and mechanics liens
specific liens
28
type of liens that usually take priority over all other liens
real estate property taxes and special assessments
29
private limitation on the use of property.
deed restriction or restrictive covenant
30
an _____ is a right acquired by one party to use the land of another party for a specific purpose
easement
31
gives the easement beneficiary the right to use another's property
appurtenant easement
32
the tract over which the easement runs is known as the _____ ; the tract that benefits from the easement is known as the ________
servient tenement; dominant tenement
33
personal interest in or right to use the land of another, such as the right of way for a utility company
easement in gross
34
arises when there is no other access to a property by a street or public way, and the easement is required by necessity rather than convenience
easement by necessity
35
permission to enter the land of another for a specific purpose, such as permission to park in a neighbors driveway or to go hunting on another's property.
license
36
illegal extension of a building or some other improvement
encroachment
37
all owners have equal right of possession. May hold equal or unequal shares. each owner can sell, convey, mortgage, or transfer his or her interest without the consent of the other co-owners, upon the death of the co-owner, the individual interest of the deceased passes to heirs or devisees according to the will and there is no right of survivorship
tenants in common
38
all owners have equal shares, if one owner or tenant dies, this share is automatically transferred to the other owners without going through probate, must have time, title, interest and possession.
joint tenancy
39
owners must be husband and wife, have the right of survivorship, title may be conveyed only by deed signed by both parties.
tenancy by the entirety
40
the owner of a life estate in property
is entitled to possession of the property.
41
three individuals own a motel as tenants in common. one of the individuals decides to sell all of her assets. she may legally
sell, because a tenant in common has an undivided interest in real property that is transferable.
42
when a landowner tears down a fence, with the intention that it be permanently removed, and piles the material on the land, such material is real property. T/F
False
43
specific liens would not include
judgements
44
a farmer purchased land with no access to a street or public way. after an unsuccessful attempt to gain access through negotiation, he was able to gain access through an
easement by necessity.
45
a woman built a fence that extended beyond the boundary of her property onto her neighbors property. this is an example of
an encroachment.
46
a grandmother owned a life estate measured by her own life in residence. she leased the property for five years using a standard lease contract. shortly thereafter, she died. the lease was
valid only as long as she was alive.
47
an electrician did some rewiring in a home for which he has not yet been paid. one month after the work was completed, the electrician drove by the home to discover a for sale sign on the property. the electrician should
file a mechanics lien.
48
included among the legal requirements of taking title to real property as tenants in common is that
each co-owner may have unequal shares in the property.
49
a homeowner employed a contractor to build a swimming pool on his property. upon completion, the contractor filed a lien to receive payment of the contract fee. such filing could be considered any of the following except
a general lien
50
a family buys a 40 year old house, and the broker tells them the garage was built 30 years ago. because the buildings are located on a "postage stamp sized" lot, the family hires a surveyor who tells them the garage extends six inches onto the neighbors lot. because the husband has taken a real estate course, he realizes that this might be a prescriptive easement and through court proceedings could become
adverse possession.
51
a man has an unrecorded claim affecting the title to another mans property. the owner has been trying to sell the property and the man with the claim is concerned about the possibility of it selling before a judgement of some kind is obtained. to protect himself, the man with the claim should
file a lis pendens, which means litigation pending.
52
Garcia and Johnson own adjoining parcels of real estate. Garcia has granted Johnson an easement over his property for ingress and egress. if Johnson decided to sell his land to Davis,
the status of the dominant and servient tenements will not change.
53
legal seizure of property to be held for payment of money pending the outcome of a suit to enforce collection is
an attachment
54
two individuals bought a building and took title as joint tenants. one of the owners died testate. the remaining owner now owns the building
in severalty.
55
a husband and wife own property as tenants by the entireties. the husband dies and his will names their son as inheritor of the property. which of the following statements is correct?
the son has no interest in the property.
56
two brothers may take title to income property in unequal shares under which of the following?
tenants in common
57
legal description may not be based on
a street address.
58
a land description that begins at a specific point and proceeds around the boundaries of a parcel by reference to linear measurements and directions is based on
metes and bound
59
in the government survey system
base lines run east and west.
60
you and your sister own a house. your sister would like to sell her interest in the house to a cousin. you and your sister own the house under which of the following?
tenancy in common
61
a plumber sells his home, in which he has installed washerless faucets. after the contract has been executed, he decides to replace the faucets with standard faucets. which of the following is true?
the plumber can be held liable for removing the faucets, because they are fixtures that were in place before the contract was signed.
62
which of the following forms of ownership may only be held by a wife and a husband?
tenancy by the entirety
63
johnson sold his house; it included a water softener, which he had bought the previous year. johnson's water softener would be classifed as
a fixture.
64
you bought a property that measure 1/2 mile by 1/2 mile. how many acres did you purchase?
160 acres.
65
you are traveling directly from section 6 to section 36 of the same township. you are traveling what direction?
southeast.
66
charles holds a life estate in a house measured against his life. charles' life estate is
limited in duration to the life estate owners' life.
67
a man and a woman own their house as tenants by the entirety. which of the following statements would not correctly describe the status of their ownership?
either owner may convey a one-half interest in the house to a third party.
68
the county zoo holds title to its land with the condition that if it charges admission fees, the title will revert to the original grantor of the estate. this is an example of
defeasible fee estate.
69
a farmer purchased a parcel of land described as the N 1/2 of the SW 1/4 and the S 1/2 of the NW 1/4. How many acres are in this legal description?
160 acres.
70
which of the following would not generally be included in the definition of real estate?
chattels
71
you purchased the right to live in an apartment in a resort for the 32nd week of each calendar year for the next 30 years. the type of interest you have is called
time-share estate.
72
When the county board acquires land for a freeway, it is exercising the power of
eminent domain
73
one example of the use of police power by a city is
environmental protection laws.
74
a building housing an insurance agency existed before the property was rezoned residential. the insurance agency building has now been grandfathered in. this is an example of
a nonconforming use
75
radon generally enters a house through the
basement floor.
76
a mineral used for many years as insulation on heat ducts is
asbestos
77
which of the following was an insulating material pumped between the walls of a house and banned from use in the 1970s?
urea-formaldehyde foam
78
all of the following may be sources of goundwater contamination except: underground storage tanks, waste-disposal sites, pesticides on farms, or cement.
cement
79
all of the following requirements generally are covered by building codes except
minimum number of square feet of land area per apartment unit
80
strict liability means that
an owner is responsible to an injured party without excuse.
81
which of the following terms refers to a dangerous health hazard that can occur when asbestos ages and starts to disintegrate and become airborne?
friable
82
which of the following best describes a buffer zone?
a recreational area located between a residential area and an office park
83
police power controls include all of the following except
deed restrictions.
84
a tire company has a manufacturing plant located in an area that recently has been zoned residential. the company is allowed to operate under the new zoning ordinance. however, if the plant is completely destroyed by a fire, the company may
not construct another tire plant in the neighborhood without being granted a zoning variance.
85
which of the following provides for monetary compensation to an owner in the event that the owner's property is taken to build a new freeway?
condemnation
86
a property is assessed at $300,000 the taxing body uses a 52% assessment ratio and 40 mills is the tax rate. what is the monthly property tax?
$520
87
a buyer made an offer on a building subject to an inspection. during the due diligence period, disintegrating airborne asbestos fibers were discovered. this condition is called
friable
88
a potential homeowner should have a certified inspector check around toilets, showers, sinks, and basement walls to detect what kind of problem?
mold
89
which statement correctly describes mold as an environmental concern?
stachybotrys chartarum in sufficient amounts has been associated with severe health problems
90
The characteristics required for a property to have value include all of the following except
depreciation
91
you own land worth $40,000 and your building has a replacement cost of $160,000. what would be the value if the appraiser used a depreciation rate of 30%?
$152,000
92
Which of the following does NOT apply to the definition of market value?
Market value is the average price that a property will bring.
93
The annual net income for an office building is $20,000. If an owner realized a 9% return on her investment, the value of the building would be
$222,222
94
you look at four similar houses for sale in the same area and choose the house with the lowest asking price. you probably are basing your decision on the principle of
substitution
95
a builder developed a subdivision in which the demand for homes was great. he sold the last lot in his subdivision for a much higher price than that for which he had sold the first lot in the area. this example illustrates the principle of
supply and demand
96
in appraising a special-purpose building such as a post office, the most reliable approach to an indication of its value would generally be the
cost approach
97
which of the following is an example of locational obsolescence?
a zoning ordinance allowing a decrease in minimum lot size
98
economic obsolescence results from all of the following except
outdated kitchens
99
depreciation generally applies to
the building only
100
a principal factor for which adjustments must be made in using the market/data approach is
the date of sale
101
an appraiser is estimating the value of a building that has net income of $5,000 per quarter and a capitalization rate of 8%. what is the value of this property?
$250,000
102
an appraiser is using the gross-rent-multiplier (GRM) method to estimate the market value of a single family home. the home has an annual gross income of $7,200, with quarterly expenses of $900. the recognized GRM for the neighborhood is 110. the appraiser's estimate of value is likely to be
$66,000
103
the GRM is used in the
income approach for single family homes
104
in determining the value of a 20 unit apartment building, the appraiser has established the gross income from rents. after deducting the loss for vacancies and collection losses from this gross income, the appraiser would have established the
effective gross income
105
what is the first step an appraiser would take to arrive at an estimated value using the income approach?
determine annual potential gross income.
106
an airport routing was changed, with the result that airplanes flew over a residential area. the subsequent loss in value caused by the airplane noise would be best described as
external or economic obsolescence.
107
which of the following factors would be considered in the market/data or sales comparison approach to value?
conditions under which property was sold
108
out-modeled plumbing fixtures are an example of
curable functional obsolescence
109
in the income approach to appraisal, if the net income was $42,000 and the capitalization rate was 12%, to find the value of the property, the appraiser would
divide the net income by the capitalization rate
110
denise lived in a house with a well. the groundwater entering the homeowner's well became contaminated and lessened the value of denise's home. the loss in value is an example of
external obsolescence
111
which of the following reflects the stages through which a neighborhood passes?
growth, stability, decline and revitalization
112
gross rent multipliers are generally used in appraising
single family homes
113
you purchased an apartment building for $600,000 nearly 6 years ago. the building accounted for 80% of the purchase price. if the building's economic life is estimated to be 60 years, what is the current total depreciation of the property?
$48,000
114
ramon purchased an office building with an annual effective gross income of $208,000 and expenses of $74,000. what capitalization rate was used by ramon to arrive at a value of $1,576,470?
8.5%
115
maria was appraising a three bedroom house. maria had a comparable with four bedrooms that sold for $160,000. maria makes an adjustment of $5,000 to the comparable for the difference in the number of bedrooms. the adjusted sales price of the comparable will be
$155,000
116
if the house you are appraising has central air conditioning valued at $2,500 and your comparable does not, you will adjust the sales price of the comparable by
+2,500
117
a home's value is increased because of its proximity to schools, parks, and transportation lines. these neighborhood sites are referred to as
amenities
118
a bike trail that enhances the value of a neighboring home is called
an amenity
119
a comparable property sold for $250,000 and it has 200 more square feet than a subject property. if square footage contributes $30 per square foot, what is the adjusted value of the comparable?
$244,000
120
an appraiser is told by a lender that if he can appraise a house for $250,000, he will be given the assignment. the appraiser should
not accept the assignment, because it violates his professional ethics.
121
which of the following statements does not correctly describe a CMA?
a CMA does not consider expired or withdrawn listings that did not sell.
122
all of the following statements concerning real estate financing are correct except
a promissory note is security for a mortgage
123
a promissory note is not
evidence of title
124
which of the following payment plans allows for periodic payments of interest only, with the principal due as a lump sum payment at maturity?
straight
125
all of the following are participants in the secondary mortgage market except
FDIC
126
all of the following are characteristics of a conventional loan except
it is never insured by a private agency.
127
which of the following is characteristic of a federal fair housing administration (FHA) loan?
the FHA does not provide the money for the loan
128
which of the following is not a characteristic of a VA loan?
the loan is insured
129
granting a conventional loan requires that the borrower provide the lender with which of the following?
mortgage and promissory note
130
the process by which a mortgagor regains his or her interest in a property is called
redemption
131
which of the following statements about FHA mortgages is false?
FHA mortgages are not assumable
132
on the FHA loan, the buyer would not be required to
make a 20% down payment on the loan.
133
disclosure of total cost of credit in a loan transaction is required by
regulation z
134
funds for VA loans usually are provided by
approved lenders.
135
charging a rate of interest in excess of the maximum rate allowed by law is
usury
136
a veteran buys a home with a VA-guaranteed loan. two years later, the veteran sells the home to a buyer who, with the lender's approval, assumes the veteran's loan. in this situation, the veteran is
no longer financially responsible if the buyer defaults six months later.
137
if a lender charges a borrower two discount points on a $60,000 loan, what will be the charge for the points?
$1,200
138
Trigger terms relates to
Truth in lending
139
you are receiving a mortgage from your local bank. truth in lending requires your bank to disclose
the annual percentage rate.
140
a buyer purchased a home and asked the seller to pay 2 1/2 discount points equaling $4,000. how much money did the buyer want to borrow?
$160,000
141
a lender makes a loan to a borrower with a poor credit history and charges a higher interest rate because of the greater risk involved in the loan being paid back. this would be an example of
subprime loan
142
FHA mortgage insurance makes it possible to lower a down payment to as little as
3.5%
143
a loan that allows older homeowners to convert part of their equity in their home to tax free income without having to sell, give up title, or take on a new monthly mortgage payment is called a
reverse mortgage.
144
a mortgage on a home in which the home is worth less than the amount owed to the bank that holds the mortgage is called an
underwater mortgage.
145
adam agrees to buy beatrice's real estate for $123,000. beatrice signs a sales contract and the $12,300 earnest money check is deposited with beatrice's broker, cornelius. beatrice is unable to show good title, and adam demands the return of his earnest money from cornelius, as provided in the contract. what should cornelius do?
return the entire amount of earnest money to adam
146
a broker employs several salespeople at her office. early one day, one member of her sales staff submits a written offer with an earnest money deposit on a house listed with the broker. later the same day, another salesperson submits a higher written offer on the same property, also including an earnest money deposit. the broker, in accordance with the policy of her office, does not submit a second offer unless the first has been presented and rejected by the seller. in this case, the seller accepts the first offer, so the seller is not informed of the second offer. in the situation, the broker's actions are
not permissible, because the broker must submit all offers to the seller.
147
an owner listed her home for $98,000, and the listing broker told the prospective buyer to submit a low offer, because the seller was desperate. the buyer offered $96,000, and the seller accepted. in this situation,
the broker violated the agency relationship.
148
which of the following is generally required to create a universal agent?
a power of attorney
149
a doctor listed his home with a broker under an exclusive right to sell listing. the listing salesperson and her broker signed the listing contract. all of the following are true about the relationship among the parties except
if the salesperson dies, the listing contract will be terminated.
150
a real estate broker is usually
a special agent.
151
all of the following are true concerning a real estate broker except
brokers may place blind ads.
152
you are a broker who has listed a home for a neighbor. which of the following terms describes your relationship with the seller?
the seller is your client.
153
you are a broker acting as a facilitator in the sale of a house without being an agent of either party. you are a
transactional broker.
154
the responsibilities of a broker in an agency relationship include
accountability for funds received
155
the listing broker owes fiduciary duty to the
seller
156
when a broker lists a property, the broker may
advertise the seller's property
157
which of the following is a violation of the broker's fiduciary relationship with a seller?
the broker tells a prospective buyer the lowest price the seller will accept.
158
all of the following are true of fiduciary except
a fiduciary is a neutral third party.
159
a salesperson is working under a broker. the salesperson may
work under the broker as an independent contractor.
160
a special agent is best described as someone who
has authority to represent a principal in a specific transaction
161
a broker presents a seller with a written offer to purchase. the broker is responsible for
explaining the advantages or disadvantages of the offer to the seller
162
a broker is listing her neighbor's home. the commission should be determined by
negotiation with her neighbor.
163
a brokerage has earned a commission on the sale of a listing by another broker. the listing broker may pay part of her commission to
the selling brokerage.
164
a broker has just received an earnest money payment on an offer to purchase. the broker must place the earnest money in his
trust account
165
what is the listing broker's legal responsibility to a prospective purchaser?
the broker must not use fraud or deceit.
166
broker matt is going to contact customer pierre who would like to see one of matt's listings. matt should make his agency disclosure
prior to discussing pierre's financial qualification and type of house desired.
167
all of the following would be classified as a latent defect except
a large crack in the living room ceiling
168
an owner had a grease fire and it spread to the ceiling. the kitchen was remodeled and the charred ceiling joists were sealed with paint. when the seller sells the property, the hidden charred ceiling joists should be disclosed as
latent defects
169
if a buyer's agent knows the house her buyer desires to purchase has been stigmatized by a recent murder-suicide, ethically, what should the buyer's agent do?
disclose it to the buyer before the buyer writes an offer
170
all of the following statements describe a red flag issue except
an aging water heater, because replacing it is inexpensive compared to other items in the house.
171
all of the following statements are correct about the property inspection process except
the buyer should not accompany the inspector and ask questions.
172
all of the following are considered a latent defect except
the roof is sagging.
173
all of the following statements correctly describe a home warranty program except
the program protects buyers for up to two years after the move.
174
a buyer should have a certified inspector check around toilets, showers, sinks, and basement walls to detect what kind of problem?
mold
175
a contract in which the intentions of the parties are shown by their actions is
an implied contract
176
which of the following is not an essential element of a contract?
an earnest money deposit
177
the lessee in a leasing agreement is the
tenant
178
a lease that is signed by a person who is 17 years of age is
voidable
179
contracts for sale of real estate must be in writing to be enforceable, according to the
statute of frauds
180
a broker lists a home for $80,000. The broker brings an offer to the seller for $78,000 which is rejected by the seller. The broker obtains another offer, for $80,000, for the seller. Before she can deliver the offer, however, the offeror withdraws it by calling the broker at the seller's home. There is
no contract.
181
a salesperson entered into an option contract with an optionee who has 30 days to exercise his option. The option is what kind of contract?
unilateral contract
182
a broker has received several offers for a property he has listed. the broker must present each offer to the seller
promptly on receipt.
183
without discussing price, you order dinner in a restaurant. you are required to pay for the dinner through what kind of contract?
implied
184
a broker and a seller have signed an open listing contract. This agreement is an example of
a unilateral contract.
185
which of the following correctly describes an open listing?
the seller may employ any number of brokers.
186
a contract that lacks legal object is considered to be
void.
187
all of the following may legally terminate a listing with a broker except
an economic depression.
188
Ayers gave an option on her property for 90 days to Benitez and received a cash consideration of $100. Benitez later assigned the option to Columbus for a valuable consideration. Before expiration of the option, Ayers stated that she no longer wanted to sell the property. Which of the following is correct?
Columbus would have a good chance in court to compel Ayers to sell to him, if he exercises the option before its expiration date.
189
Both the buyer and the seller agree to wait until the broker's exclusive right to sell listing has expired. They then have a third party buy the home. After a short while, the third party conveys ownership to the interested buyer, who was actually introduced to the owner by the listing broker. In this case,
if the listing broker can prove collusion, he or she may collect a full commission.
190
Procuring cause would not be required for
exclusive right to sell listings
191
when a broker sold a property, the sales contract contained the following statement; "Buyer to accept property in 'as is' condition." However, both the seller and the broker knew the plumbing was in a major state of disrepair but did not tell the buyer. Would an action for damages against the broker, based on fraud, be successful?
Yes. The duty to disclose a material fact cannot be avoided by an "as is" condition.
192
A broker brings a seller an offer to purchase contract for the listed price of $114,500, with an additional stipulation that the seller must furnish a title insurance policy to prove marketable title. The seller refuses the offer. The broker
can collect nothing.
193
A salesperson for a brokerage listed an owner's home under an exclusive right to sell listing contract. Which of the following statements correctly describes this situation?
the listing belongs to the brokerage.
194
An owner gives an exclusive right to sell listing to a broker for a six month period. During the exclusive period, the owner also gives an open listing to another broker who produces a buyer. What is the owner's liability for payment of a commission?
The owner is liable for payment of commission to both brokers.
195
A buyer has contracted with a seller to purchase property. The contract was ratified on January 10. The closing was on March 31. What is the status of the contract on April 1?
Executed.
196
An exclusive right to sell listing contract is a bilateral contract and may be considered
an employment contract
197
a salesperson
is responsible primarily to the broker under who he is licensed.
198
The buyer's offer requires the seller pay for a licensed termite inspector to inspect a house. If active infestation exists, the buyer can either agree to have the property treated or can decline the offer. This part of an offer is best known as
a contingency.
199
If a buyer offers to purchase a home for $350,000 subject to the sale of the buyer's home, what is the subject to sale called?
Contingency
200
A tenant decided to purchase a farm on an installment land contract for deed with a ten-year balloon. During the ten years, what kind of title does the vendee have in the farm?
Equitable
201
The deed that provides the buyer the greatest protection is the
general warranty deed
202
A warranty deed transfers title to the grantee when it is
delivered and accepted.
203
Which of the following would be an example of voluntary alienation?
Sale
204
A grantee has received an executed, notarized deed. The grantee takes possession of the property but does not record the deed. The conveyance is
valid as between the parties and invalid as to subsequent recorded interests without notice.
205
All of the following statements correctly describe a properly executed will except
it takes effect only after the death of the devisee.
206
Generally, title insurance coverage extends to
defects not found in the public record.
207
A deed must be signed by the
grantor
208
Roberts and Sanchez have entered into a binding offer to purchase. Sanchez will buy Robert's house. Which of the following statements correctly describes the status of the transaction?
Roberts will hold legal title until closing, and Sanchez will hold equitable title until closing.
209
All of the following statements correctly describe equitable title except
it may not be conveyed by will.
210
The need for a loan closing to be prepared on a Uniform Settment Statement is a requirement of
RESPA
211
The requirement that a lender give each loan applicant a copy of Settlement Costs and You is created under
RESPA
212
The person conducting the closing must report details on the closing to the IRS on
IRS form 1099S
213
Section 1031 of the Internal Revenue Code allows real estate investors to do which of the following when making a property exchange?
Defer the capital-gains tax
214
A single person listed a house and accepted an offer from a buyer. Then, before closing, the person married. At closing, the other spouse signed a deed to relinquish an inchoate interest in the property being sold. What kind of deed would be used to convey their inchoate interest without imposing any legal obligations to defend its title?
Quitclaim
215
When a grantor appears before a notary, the notary attests that the grantor is who he or she says they are, and that their signing is
voluntary
216
RESPA requires that borrowers be provided with a good faith estimate of settlement costs by lenders no later than how many business days after the loan application?
Three
217
Brenda and Carl, a married couple, bought a principal residence in 1998 for $300,000. They sold the property in 2006 with a capital gain of $600,000. Capital gains tax on their profit will be
$100,000.
218
Which deed would typically be used to cure a defect in title?
Quitclaim deed
219
The federal fair housing laws prohibit discrimination on the basis of
sex
220
Persuading someone to sell by telling her or him that minorities are moving into the neighborhood is illegal and is called
blockbusting
221
Which of the following is exempted from the federal fair housing laws?
Lodgings of a private club when the lodgings are not operated commercially
222
The practice of channeling potential buyers of one race into one area and potential buyers of another race into another area is known as
steering
223
A real estate broker may
solicit listings in a minority neighborhood.
224
The federal fair housing laws prohibit which of the following types of private housing?
A Norwegian advertising his house for "Norwegians only"
225
Which of the following categories is NOT protected against discrimination under the federal fair housing laws?
Lawful source of income
226
The denial of a loan by a lender would NOT be a violation of federal fair housing laws if it were based on
lack of income
227
Which of the following laws provides comprehensive guidance for making public facilities accessible?
Americans with Disabilities Act
228
Which of the following activities would be legal under the familial status category of the federal fair housing laws?
Charging higher rents for people with pets
229
Converting information on a real estate listing to a large-print or audio format would be a response to
the ADA
230
The ADA requires all of the following alterations to be made to public facilities and services except
providing an automatic sprinkler system.
231
Which of the following rental practices would be legal under federal fair housing laws?
A rental agent refuses to rent an apartment to a person who is convicted drug dealer.
232
The Civil Rights Act of 1866 prohibits discrimination in housing on the basis of
race
233
Disclosure of cost in a credit transaction is required by
Truth-in-Lending
234
According to the Federal Equal Credit Opportunity Act, a rejected credit applicant must be informed, in writing, of the reason for credit denial within
30 days
235
A landlord allowed a tenant confined to a wheelchair to make several minor physical changes to an apartment. These changes are called
reasonable accommodations or modifications.
236
Which of the following is a legitimate landlord action under fair housing's familial status?
Limiting occupancy based on local zoning requirements
237
Most states require real estate license to be conspicuously displayed by the brokerage firm. What else is the broker of a real estate office required to conspicuously display?
EHO poster
238
A broker was listing a seller's home for sale when the seller stated that he would be unwilling to sell to an Asian. The broker should
not accept the listing.
239
The Federal Fair Housing Act of 1968 was amended in 1988 to prohibit
discrimination against pregnant women.
240
The Federal Telemarketing Law allows follow up calls to previous customers to be made within
18 months of the previous sale involving the agent.
241
All of the following statements correctly describe the E-Sign law except
E-Sign allows consumers to provide written consent if they wish to substitute electronic documents for written documents.
242
All of the following statements correctly describe the Federal telemarketing law except
Real estate licensees are not considered telemarketers under the law.
243
A licensed real estate broker who engages the services of a licensed salesperson on the basis that the broker can direct what the salesperson can do but not how it is done has
engaged an independent contractor.
244
A house payment is referred to as principal, interest, taxes, and
homeowner's insurance
245
pi (3.14) x R^2
Area of a circle
246
A = LxW
Area of a rectangle
247
A= 1/2(BxH)
Area of a triangle
248
A = (B1+B2)xH/2
Area of a trapezoid
249
diameter x pi (3.14)
Circumference of a circle
250
L x W x H
Volume of a cube
251
part divided by total is the
formula used to find %
252
part divided by the percent is
formula used to find total
253
total x percent is
formula to find part
254
amount charged for real estate services
commission
255
A word that is equated with tax rate
millage
256
replacement cost/years of useful life
straight line depreciation formula
257
net income/rate
formula used to arrive at value
258
net income/value
formula used to arrive at rate
259
cap rate x value
formula used to find net operating income
260
loan divided by 1,000 x amortization factor
formula to find monthly PI
261
A man signed a lease for six months. This is an example of
estate for years.
262
The term boot is related to
an exchange
263
A woman's two year lease had expired when she decided to continue living in her apartment without the consent of her landlord. The woman now has
tenancy at sufferance.
264
You have entered into a lease that requires you to pay all or part of the landlords operating expenses. You have signed a
net lease
265
All of the following may be depreciated except
land
266
A broker has an annual overhead of $300,000 and there are ten desks, each accommodating two salespeople. The broker's desk cost is
$15,000
267
The owner of a condominium unit has violated a deed restriction created by the homeowners' association. The restriction will be enforced by the
homeowners' association.
268
All of the following are included in trust account notations except
a record of appointments to show homes.
269
All of the following statements correctly describe trust accounts except
trust funds should be deposited in a business/operations account
270
The revenue earned from all sources, including sales, appraisals, management fees, etc. is called
gross income.
271
Front end ratio for an FHA loan can be ___, while a conventional loan is ____.
31%, 33%
272
The back end ratio for an FHA loan is ___ while a conventional loan is ____
43%, 45%
