Attempt 7

Steve is preparing a market analysis for the Joneses and has selected three comparable properties. How many adjustments should Steve make to the Joneses' property?

Zero. Steve won't adjust the subject property. Only the comparable sales price is adjusted. If it is inferior, adjust upward. If it's superior, adjust downward.

Loan interest rates can only be locked in for a specified number of days, which varies by lender from _____.

30-60 days

You sign a contract to purchase a machine that will allow you to travel back in time and meet Abraham Lincoln. Assuming that time machines don't actually exist (for now), what type of contract is this?

A party can't promise to do something that's actually impossible in a contract. This contract is void because the seller of the machine literally can't perform his side of it.

What are building specifications?

A written narrative of the building plan

You're trying to locate the northwest corner of a recently surveyed 10-acre property you will be listing for sale. The deed tells you that this corner is marked with a monument. What are you looking for?

An iron rod with a surveyor's cap

Cam is a broker. His licensees, Jane and John, represent two sides in a single transaction. Jane represents the seller; John represents the buyer. What relationship does Cam have to the buyer and the seller?

Cam is a dual agent to both the buyer and seller.

To determine debt coverage ratio, ______.

Divide net income by debt service

What may be the result if a tax assessor discovers an undeclared improvement?

Fines, back taxes, and redoing the work according to permit

Cooperative shareholders under a condop structure have ______.

Flexibility in selling and subletting, similar to that of condominium owners

At a closing, what cooperative tax is often based on a percentage of the gross sale, net sale, or gain, or on the number of shares the shareholder owns?

Flip tax

Corlin is a landlord who is a repeat offender when it comes to discrimination claims. His most recent complaint was referred by HUD to federal civil court. Since this was his third offense in six years, Corlin is facing a possible fine of as much as ________.

For a third violation of the Fair Housing Act in seven years, the civil penalty may be as much as $105,194.

Although most homes in New York are connected to public water and sewer, you'll often find septic tanks and wells _______.

In rural communities

Juan secures a fixed rate amortized 30-year loan for $295,000 at 4.25%. If his monthly P&I payment is $1,750, how much interest does he pay in the second month of the loan?

In the first month, Juan pays $1,044.79 in interest ([$295,000 x .0425] ÷ 12). His monthly payment (stated in the question) is $1,750, so that means he paid the principal down $705.21 ($1,750 - $1,044.79). His new principal balance is $294,294.79 ($295,000 - $705.21). We use the new principal balance amount to calculate interest for the next month. Juan pays $1,042.29 in interest ([$294,294.79 x .0425] ÷ 12).

Which of the following would be a description used for real property and a fixture?

In-ground

Broker Francine would like to move her office into her home, which is zoned as residential and, as such, does not permit signs in the yard or front windows. Francine ________.

Is NOT allowed to violate zoning ordinances in order to comply with license law

What's NOT true of an easement appurtenant?

It's an encumbrance on the dominant property.

Andrea, a commercial developer, is planning to build an apartment complex on a lot in Miami and is using the land, pledged to the lender as an estate for years, as collateral for the loan. What type of mortgage is this?

Leasehold

Which of the following involves permission to do something on another's land without actually possessing any interest or ownership in the land?

License

Which of the following describes sub-agency?

Norm is a listing agent. He allows Stu, an agent from another firm, to present an offer from an unrepresented buyer.

Several actions take place on the secondary mortgage market. Which of these is a common activity?

Packaging loans into mortgage-backed securities

The New York town of Greenville is growing, and has decided to make some changes to their zoning ordinances. Which of these entities is responsible for making recommendations about amendments to the town's zoning?

Planning board

Which part of a homeowners policy covers the property of the insured?

Section I

Who should display the Equal Housing Opportunity Logo in all advertising and marketing materials?

The licensee and the broker

Which of the following is true regarding value?

The principle of substitution says that buyers won't pay more for a property than it's worth, and if there's a similar property nearby that they can substitute for it that is priced less, it will bring down the value of the original property in the buyer's eyes.

Where are mortgages recorded?

They're recorded at the recorder's office in the county where the property is located.

Which type of ownership requires unities of time, title, interest, and possession?

This is joint tenancy. If one joint tenant dies, that tenant's interests go to the remaining joint tenants. If only one tenant is left, she owns the property in severalty.