CE shop course 2
what is the length of the statute of limitation to file a fair housing complaint with HUD
1 year
what's the minimum number of business days prior to closing that lenders gave to provide borrowers with the closing disclosure form
3
which type of communication does the CAN-SPAM act outlaw
Email marketing with no "unsubscribe" option
the office of fair housing and equal opportunity is a part of which federal department
HUD
How is title usually conveyed to the buyer during a foreclosure process?
Through a referee's deed (sheriffs deed or a commissioners deed)
a pipe or a vent sticking out of the ground or a metal cap plate are clues for what
an underground storage tank on the property
what is the purpose of a buyer representation
to build rapport with the buyer
how many years is a commercial property depreciated
39 years
when does buyer possession usually occur
After closing and funding
With the cost approach to value, what is the replacement cost?
Cost to build a functionally equivalent improvement
Which act created the Office of Fair Housing and Equal Opportunity under the Department of Housing and Urban Development?
Federal Fair Housing Act of 1968
Janice and Tom's home is subject to foreclosure. Their deed of trust includes a power-of-sale clause. Which form of foreclosure will most likely be used?
Foreclosure by advertisement
what could be a consequence if there were no secondary mortgage market
Lenders might not have funds available to make new loans to the public.
what laws are MN purchase agreements subject to
MN state law
Seller Jeremiah has no cash on hand, but the buyers have outlined some repairs they want made in order to close on the purchase. Which of the following is his best option if he wants this transaction to close?
Offer a seller credit to cover the cost of the repairs.
required for conventional loans that have a LTV greater than 80%
PMI
Eleanor is working as a buyer's agent for Luis in a state without full disclosure requirements. What is her responsibility relative to property disclosures?
She must obtain the disclosures, provide them to Luis, and review them with him.
with an interest only loan, what happens after the specific period of time that interest only payments are made is over
The full principal of the loan is due
Jasmine has a mortgage on her property, but allows her homeowner's insurance to lapse. Which of these is a possible consequence of this action?
The lender can put Jasmine's loan in default.
what does the underwriting step of a loan processing typically involve
Verification of the borrower's financial situation
What does the MAAP method help licensees determine?
Which property facts they need to disclose
Jennifer is the owner of the single-family residence in which she resides. How long can she take to depreciate her property?
Zero years (personal residences cannot be depreciated)
in what type of financing situation does the seller provide financing to the buyer
a contract for deed
best representation of what happens after a federal fair housing complaint is made
a fair housing specialist will review the complaint
what is something that is not requested in the initial fair housing complaint form
a motorized copy of the complaint description
best description of the purpose of the property disclosure statement
a representation of the homes current condition to the sellers best knowledge
separate for that becomes part of a sales contract
addendum
where in the MN purchase agreement should you indicate that the sale is part of a 1031 exchange
additional terms
what agency disclosure form should MN licensees give to prospective lease clients
agency relationships in real estate transactions
one alternative to foreclosure is a voluntary conveyance of ____
deed
allows the lender to demand immediate payment of the entire remaining loan balance
due on sale clause
potential ramification to the seller is a short sale is completed
negatively impact credit, lender may seek deficiency judgment for amount not repaid, alternative to foreclosure
often involve a conflict of interest
net listings
how many sqft is 1 square yard
nine sqft
which is form is used as the actual contract for deed in mn
the mn uniform conveyancing blank contract for deed
A buyer has agreed to purchase a property using a contract for deed. Who holds the legal title to the property during the term of the loan
the seller
a licensee has a written listing agreement with a seller. Who is the licensees client
the seller
when a property is damaged prior to closing how many business days does the seller have to alert the buyer
3
what does the ftc consider to be a deceptive ad
Any ad likely to mislead consumers acting reasonably under the circumstances
what does the federal trade commission consider to be an unfair ad
Any ad or business practice that causes or is likely to cause injury
what must sellers provide prospective buyers of homes built prior to 1978 in addition to the federally required disclosure form
EPA lead safety pamphlet
how does an umbrella policy work with other insurance policies for the insured
an umbrella policy doesn't kick in until the primary policy is exhausted
the value used to calculate the property taxes, and it's based of a percentage of the market value
assessed value of real estate
Which parties must be identified on the promissory note?
borrower, lender
term that describes a loss of money or anything if value due to failure to perform
breach
a mortgage payment that includes property taxes, and property insurance
budget mortgage
a loan that meets certain criteria that are accepted by frannie mae and freddie mac
confirming loan
your clients have signed a contract for deed to purchase a property. What rights do they receive
equitable title and possession of the property
type of insurance covers licensees who are sued by consumers for inadvertent mistakes in a real estate transaction
errors and omissions
a loss in value caused by an undesirable or hazardous influence offsite is which type of depreciation
external depreciation
what legislation added persons with disabilities as a protected class
fair housing amendments act of 1988
usually purchase separately or bundled with homeowners policy but not standard
flood insurance
when a power of sale clause is included in a deed of trust the lender can initiate what
foreclosure by advertisement
what two types of data does an appraiser gather
general to specific
what hazards do mining activities, landfills, or agricultural pesticides contribute to
groundwater contamination
why might you back out of a working with a buyer unless you're working under an agency agreement
having an agency agreement allows you to represent the buyers interests
Using a buyer's pre-approval or pre-qualification can help in ______ properties.
identifying
what does the subdivision land section of the MN purchase agreement state
if the property is being subdivided the seller will pay those costs
a real estate contract must be _______ to be an enforceable contract
in writing (no oral contracts)
depreciation is limited to
investment properties (owners can't depreciate a personal residence or vacation home)
the acquisition cost of an investment property plus any improvements or renovations
investments depreciable basis
why is it important for new licensees to carry E&O insurance
it will cover then if they're sued by consumers for inadvertent mistakes
In a case of abandonment, a landlord has to do what in order to require the current tenant to pay the unpaid rent
make an effort to find a new tenant to occupy the property
what's the price at which a willing buyer and a willing seller would strike a deal given normal market conditions
market value
most often what's the first course of action for disputed home warranty claims
mediation
prohibited in several states, no guarantee of commission. Conflict can occur if the listing agent doesn't present offers that left little for commission even though the offers met the sellers needs
net listings
a mortgage that has a clause that prohibits lender from suing for unpaid amounts of foreclosure occurs
non-recourse
what are liabilities when filling out a residential loan application
obligations or payments a borrower owes
Two buyers had brokers who were ready to make offers. seller accepted one of those offers. The corresponding broker would be the only one to earn a commission. What type of listing does this describe?
open listening
what type of listing allows only the broker who brings the buyer to earn commission
open listing
To make valid computations of adjustments for the sales comparison approach to value, elements of comparison must be applied in a specific order. Which element is applied last?
physical characteristics
which factors directly affect an adjustable rate mortgage
rate, index, and margin
when outstanding loan balance is reconfigured
recasting
alberto is adding an addendum to an offer he's putting together. What should he do?
reference the addendum in the purchase agreement
makes specific requirements for credit rejection and termination notification, and disclosure of borrowers rights under the ECOA
regulation b
set of regulations used to enforce the equal credit opportunity act
regulation b
(rent/sq ft + TIM expenses) x number of sqft leased
rent for net lease
how can you determine lot size, easements, and encroachments of a property? Most comprehensive search
research the deed and title history, check maps at the county recorders office, and review land surveys
example of a listing agent negotiating on a sellers behalf
reviewing offers and explaining any special requests or requirements
where in the broker information section of the minnesota purchase agreement would the buyers broker information go
selling agent and broker
an elementary school is typically classified as which type of property
specialty
economic principle that the lower priced option of 2 properties of equal quality will likely sell first
substitution
what is net worth
the difference between a borrowers items of value and obligations
if a default on a contract for deed arrangement hasn't been cured within 60 days what can happen
the seller will begin eviction proceedings
when a deed of trust is used as a security instrument who holds the deed and the note
the trustee holds the deed and the lender holds the nige
in what situation might a property management market strategy analysis be unnecessary
there's a low vacancy rate in the area
what's the purpose of the ECOA
to prevent discrimination in lending
the contract for deed is used as an alternative to what
traditional third party financing
when an investment property is sold, three taxes that apply are
transfer tax, capital gains, and recaptured depreciation
garages are considered ____ in terms of measuring square footage of a dwelling
unfinished square footage
when can a lender initiate foreclosure by advertisement (doesn't involve courts)
when a power of sale clause is included in the mortgage instrument
what should be included in an MLS policy for your firm
when and if listing data should be submitted to you for approval
are transgenders protected against discrimination in mn under the human rights act
yes
does MN have different purchase agreements based on the type of residence being sold
yes