Final Real Estate Barnes

A property has a net income of $50,000, interest payments of $35,000, principal payments of $3000, and an annual cost recovery of $7000. The property tax rate is 28%. What is the properties annual tax of income?

$2,240 Explain: $50,000 -$35,000 -$7000 x .28 = 2,240

An apartment building has an effect of income of $150,000. It's bills total $64,000, and depreciation is an additional $12,000. Interest payments on the loan total $40,000, and principal payments are $5000. What is the property pretax cash flow?

$29000 $34,000 $41,000**** $46,000 Explain; 1 and $50,000 -$64,000 -$40,000 -$5000 equals $41,000 cash flow concerns cash items only, therefore excludes depreciation, which is not a cash expense see chapter real estate investment reference category real estate calculations

What is the value of a commercial building that generates a monthly net operating income of $4000 on a 15 year loan at 8% interest? The capitalization rate is 6%

$50,000 $64,655.67 $600,000 $800,000**** $4000 x 12 = $48,000 $48,000 / .06 = $800,000

The $250,000 house is taxed at 80% assessed value. If the house is taxed at $27 per thousand dollars, what is the monthly property tax?

$5400 $450**** $771.61 562.50 step 1 $250,000 *. 8 = $200,000. Step 2 to $27 * 200 = $5400. Step 3 $5400 divided by 12

This law prohibited racial discrimination in the buying, selling, holding, or conveying of real estate and personal property?

***Civil rights act of 1866 *** civil rights act of 1964 not - federal housing act of 1968 the housing and community development act of 1974

Which of the following is not one of the "bundle of rights"?

***The right to unrestricted use*** the right to use and possess the right to lease or dispose NOT- the right to build upon or destroy within limits of the law

In general, the borrower no longer pay his mortgage insurance with the loan to value equals

.80

You list a lot which is 170' x 300'. How many acres are there in the lot?

1 acre 1.1 acres 1.17 acres*** 1.2 acres 170x300 = 51,000 / 43560 = 1.17 43,560 sq ft per acre

The landlord needs to perform a semi annual inspection. How much notice of entry must the landlord provide to tenant?

1 day

How many square feet are there in the SE 1/4 of the SW 1/4 of section 22 T11N, R2W?

1,742,400 Reference real estate calculations 43,560 sq ft per acre x 40 acres (1/4) linear mile is 5,280 feet

At what date is the residential property condition disclosure statement no longer valid?

180 days after completion

Members of the Oklahoma real estate commission or appointed for

4 years

When does a security deposit revert to the landlord in consideration if the former tenant has not made a written demand?

6 months after tenancy termination

Which of the following is true of a Homestead?

A homestead interest is a form of legal life estate

Which one of the following best describes a contract for deed?

A method of selling real estate whereby the purchaser pays for the property in regular installments, while the seller retains title to the property until full purchase price has been made.

A sales contract contains a one-month financing contingency to allow the buyer to procure a loan. 32 days later, the buyer still has no loan commitment. At this point the seller may

A. put the property back on the market.

The sales associate list of property. Three weeks later, the sales associates tragedly killed in a car accident on the way to show the property. What is the status of the listing contract?

Agency remains unaltered

Truth in lending statutes required disclosure of

All of the above (The finance charge as an annual percentage/the number, amount, and due date of all payments., /The method of computing an aren't finances charges.)

Which of the following situations would not require holding a real estate license?

All of the above (to act as an attorney-in-fact for the owner of real estate, to renovate buildings, to appraise real estate)

Which of the following secondary mortgage market entities can purchase FHA and VA loans?

All of them (Fannie Mae, Ginnie Mae, Freddie Mac).

Any agreement between two or more brokers in competition with one another to fix, control, regularly, increased, decrease or stabilize fees, rate, and commissions or other prices

All the above (Is called price fixing, is illegal, cannot be defended on any grounds)

A release clause in a mortgage

Allows portions of the property, given as security, to be released from the mortgage lien upon performance of a specified act

If the seller discovers another defect the property a month after completing the property disclosure statement, what was the seller do?

Amend the disclosure statement

This loan type is characterized by equal monthly payments credited first to interest due. Then, the remainder of the payments is applied to the loan balance.

Amortized Loan

Which of the following is the best explanation of an option?

An agreement granting exclusive right to buy, sell, or lease property at a given price within a stated period of time.

The revolving fund shall be audited by the State Auditor and Inspector

Annually

The landlord needs to serve the tenant with a notice to terminate the Tennessee. To whom shall noticed be served?

Any family member over the age of 12

OREC order becomes binding on all parties unless the commission's ruling is?

Appealed to the district court.

What must an associate included all advertising

Associate brokers name

A new realtor received the provisional sales associate license on June 25, 2020. When does the license expire?

At midnight on 6/25/2021 At midnight on 6/25/2023 - NOT At midnight on 6/30/2021 at midnight on 5/31/2021 Weather the license he received the license on June 1 or June 30, June counts as one month. The license is valid for 12 months. section 858-307.1 reference state specific - laws and rules affecting your home real estate practice

Zoro purchased his home in 2001 and was required to join the neighborhood association. Why was Zoro required to join the neighborhood Association?

Because of the deed restriction

By when most the residential property condition disclosure statement be delivered to the purchaser?

Before the seller excepts an offer to purchase

If a fine imposed by OREC is not paid within 30 days, what are the consequences

Both 2 and 3 are correct (2. The fine is doubled, 3. if not paid another 30 days, the license is automatically revoked)

A licensee imbibed to liberally at the Brokerage Christmas Party; on the way home, she drove into another car killing the driver; got charged with vehicle homicide; and entered a Nolo Contendré plea. What's next?

Both one and two are correct (1. Notify OREC within 30 days of the plea. To notify OREC within 30 days of the sentencing.)

Legislation that is intended to resurrect toxic industrial size is

Brownfields legislation

A toxic waste dump is located at the edge of town what federal legislation would force clean up in this area?

CERCLA

Albert is a home-builder and seeks financing from his local bank to fund his houses so he can sell them to a customer in the near future. What type of financing did Albert receive?

Construction Loan

Amy asked you to appraise their property. This property had no monthly income and no comparables in the market. You would most likely use the

Cost approach

All of the following are illegal activities involving fair housing except

Declaring an apartment complex only for 62 year old and older

Albert bought a piece of property for Brian . The title to the property was transferred when the deed was

Delivered and excepted

A mortgagee May include in a mortgage items which, when they occur, are considered a default by the morgator and grounds for foreclosure action. Such items include all the following except

Detrimental zoning by a city or county

A broker is liquidating the brokerage to retire in Florida. To dispose of his personal house, what must a broker do?

Disclose the Broker is a Licensed Realtor

Which of the following best describes regulation Z?

Disclosure of credit charges.

Alan who is a lender wishes to make the yield on the lower and lower than the current market value what would Alan charge to make the loan more competitive?

Discount Points

Which of the following is NOT a type of possible Agency Relationship in a transaction unless all parties acknowledge his relationship?

Dual agency

Earl who is a real estate broker, the size the closest office and sees real estate business,

Earl is required to notify the commissioner of the effective date and where records will be stored.

Of the following, which is not necessary To have a valid contract for the sale of real estate?

Earnest money

Overtime, a partial of land lost access to the County Road. The land order had to obtain access to the road by court action. This is an example of:

Easement by necessity

Any interest in, or ride to, land by third person's, adversely affecting the value of the property is in

Encumbrance

At the direction of a seller-client, an agent tells a pregnant working woman that the property is not a good neighborhood for single women, particular if regularly works late hours. The neighborhood has an increasing crime rate, and people are moving out. What has the agent done wrong

Engaged in steering

During the executory. Of a service contract, the buyer enjoys which of the following interest?

Equitable title

Once an agreement of sale signed, the purchaser has

Equitable title

It may because for suspension or revocation of license to

Except a gift from an unlicensed neighbor for selling their house

Which agency investigates mortgage fraud?

FBI

The most common kind of landlord fault is

Failure to maintain the property and provide services

What agency promulgates regulation Z?

Federal Reserve System

John Smith willed five (5) acres of land to the city "so long as" the city maintains the property as a public park with unrestricted use. Which of the following best describes this type of estate?

Fee defeasible

The kind of estate most freely inheritable and transferable is a

Fee simple estate

The largest state one can hold in land is a

Fee simple estate

Bill has a lawsuit filed against him by Sandy. Bill currently has a piece of property that is lien free worth $500,000 he is trying to sell. In order for Sandy to preserve her interest, Sandy should

File a lis pendens

Which of the following must sign the deed?

Grantor

An agent fails to discover crumbling tiles on the basement ceiling beneath the bathroom. The agent sells the property, and the buyer later sues the agent for not discovery and disclosing a clearly visible an obvious problem. In this case, the agent

Has an exposure to negligent misrepresentation

While the property is under contract for deed, the buyer, or vendee, takes possession of the property and makes timely payments of principal and interest. At the end of the term, the vendee obtains a loan and use the funds to pay off the vendor. Given the circumstances what option does the seller have?

He may offer to repurchase the property after conveying title

Which of the following was NOT a requirement to obtain a professional sales associate license?

High school diploma call or GED

What new session has been added to the law section on broker conversation?

In the event a broker receives a fee or compensation from any party to the transaction based on a selling price or lease cost of transaction, such receipt does not constitute a breach of duty or obligation to any party to the transaction

A major employer relocate, leaving mini homes in the area bacon and unmaintained. This is the example of

Incurable economic obsolescence

Both the abstract an opinion method of assuring title and title insurance

Inform or protect the buyer against effects of record

Which of the following may the Oklahoma real estate commission do opponents on motion?

Investigate the business transactions of any real estate licensee.

A broker and sales person agreed to a 40-60commission split. This commission rate

Is probably a reflection of competitive market conditions

Jim has an active real estate license adversely put an offer on a piece of real property

Jim needs to disclose in writing that he is licensed

Jim has an INACTIVE real estate license and personally puts an offer on a piece of real property,

Jim needs to disclose in writing that he is licensed.

How does the equal opportunity act (ECOA) affect property managers?

Managers must be consistent and non-discriminatory in evaluating the creditworthiness of tenant applicants

You owned property with your joins a non-navigable stream your property line looks into the

Middle of the stream

A sales associate has a license due to expire this month. By what day and time is the renewals be filed?

Midnight the last day of the month

If a house your repraising has one bathroom valued at $2500, and a house and the same neighborhood is very similar but has two bathrooms, you should make an adjustment to the comparable of

Minus $2,500

Of the following sources of loan money, which does not service their loans?

Mortgage Broker

Mary wanted to sell her house which had a serious leak in the roof. The broker told Mary that she must replace the roof in order for the house sell. The leaky roof is considered what kind of depreciation

NOT - physical deterioration Functional obsolescence*** Incurable economic obsolescence Curable Extertal obsolescence See appraising and estimating market value. Also see screen five of eight reference valuation and market analysis

A property owner wants to put $240,000 in the bank after selling a property in a county for all the expenses. A broker finds a buyer and sells the property for $280,000. Closing cost come to $10,000, not including the broker's commission. According to the agreement, the remainder of the amount over $240,000 goes to the broker as commission the listing agreement is probably a(n)

Net listing

The ad reads, "your new home has just the most stunning view in the county."Is there a problem?

No. This is considered "puffing"

A buyer representative locate the suitable property through an older broker. The buyer buys the property; the seller pays a commission, and the two agents but the commission. In this instance, the owner broker is acting as

Not: a dual agent (find answer) see screen 5 of 7, Laws of agency. Answer options: A single agent for the owner.*** A sub agent of the buyer representative. A co-operating agent.

The revolving fund is under the management of

Oklahoma Real Estate Commission

Which statement is true regarding failed "PSI" exam?

One hour to review the exam

A landlord agrees to pay a broker for pecuring a tenant unless someone else finds the tenant first. This is an example of a(n)

Open Listing

A person who has secured the right to purchase a property at a fixed price for a designated period of time and has paid a consideration for the prívele would own a(n)

Option

Under the Oklahoma relationships act, a person who has a seller, Buyer, landlord, or tenant or person who has a golden option or exchange is called a

Party

Al wants to receive his real estate brokers license. Which of the following qualifications must Al me to obtain is Oklahoma real estate brokers license?

Pass a 90 hour advanced course in real estate, background check, active sales associate license for the past two years, and pass the state exam.

The Oklahoma real estate license law requires which of the following to have a real estate license?

Persons who manage or sell property for others including immediate family members.

In the event a transaction is not consummate, a broker shall

Promptly disperse the earnest money or items to the proper party in accordance with the terms of the contract.

Bill has a 2 year lease on a piece of property from Kathy with an option to purchase. Bill paid $1500 for the option to purchase. If Bill wishes to purchase the property at the end of the lease he must inform Cathy in writing within 60 days of the lease expiration. Bill sells his option to purchase to Zepeda for $10,000. Cathy does not like Zepeda and would like to not sell the property to Zepeda. Zepeda decides to enact his option, Cathy can

Refuse to sell intake Zepeda to court Zepeda will most likely prevail

Allan just made the final payment on his mortgage loan to the bank. Regardless of this fact, the bank will still hold a lien on Al's property until which of the following is recorded?

Satisfaction of the mortgage Instrument.

How does the brokerage relationships ask define affirm?

Soul proprietor, corporation, association or partnership

When a realtor and a seller sign a listing contract, the broker becomes

Special agent

Real estate brokers authorized to conduct a single transaction for the principles are usually classed as

Special agents

The illegal practice of sending potential homebuyers or renters to equivalent properties in particular areas in order to maintain the homogeneity of the area is called

Steering

Typically before a mortgage company will finance a home they want to make sure there are no encroachments on the property they are financing. To check for any encroachments the mortgage company should order a

Survey

Which of the following items are paid in arrears?

Taxes

Which of the following items could serve as a lien by the landlord against the tenant who has refused to pay rate?

Television

The decision as to what the highest and best used to which a particular property could be put is determined by which of the following?

That youth which would produce the greatest amount of amenities or net income in future years

Albert has a mortgage on his home. The closet Alberts mortgage which calls the entire balance of his mortgage immediately do if his home is sold is called

The Alienation Clause

Which choice must possess a valid Oklahoma Real Estate License?

The Cooperating Sales Associate in a land deal exceeding $1 million

You have your license under a broker. Your broker is required to put your real estate license on display in the office. Which of the following is your broker also required to display?

The Equal Housing Opportunity Poster (EHO)

The revolving fund consist of all monies received by the Oklahoma real estate commission except

The Oklahoma real estate education and recovery fund

A principle and stress and Asian to inform any minority buyer that the property was just put under contract an hour ago and it no longer available. The agent refuses to comply. In this case,

The agent has not violated fiduciary duty

An agent had enough business to warrant hiring an unlicensed assistant. At a peak busy time, the assistant showed a listing to the prospective buyer. Who will face discipline from OREC?

The broker, the associate, and the assistant

Exceeding the limits of the authority granted is a major risk in

The fulfilling of listing agreements

When hearing a complaint before the commission, upon whom does the burden approve fall?

The moving party

Under what condition confidential information be released?

The party gives consent to the disclosure in writing

To whom or white will OREC issue a new provisional sales associate license?

The provisional sales associate The office of assignment The pre-licensing school The broker*** See OREC code and rules also C605: 10- 11 - 2 reference state specific-laws and rules effective, real estate practice

When is an offer to purchase property "accepted"?

The seller excepts, and the signed contract is delivered to the buyer

A buyer had a contingency in a purchase contract to sell the buyers home in 120 days. On day 121, the seller and for the buyer the seller would keep the earnest money but sell the house to another buyer. What did the original buyer violate?

Time is of the Essence

What transfer is real property?

Title Torrens *** Deed Bill of Sale A Torrens Certificate is a document assigning full, indisputable real property rights to a registered titleholder.

What is the primary aim of a marketing program for a manage property?

To find and attract the right kind of tenants.

When a license is sued by the federal trade commission, is usually for

Violating antitrust laws

Zelda signs a contract with Billy who is a minor. The contract Zelda sign with Billy is

Voidable by the minor

When must a leader use form H - 25 closing disclosure?

When the loan is insured or guaranteed by a federal agency

All the following establish independent contractor status except

Works a specific number of hours weekly in real estate

A realtor goes through the entire transaction with a buyer without signing a contract represent the buyer. Is this legal; and if so, what types of agency exist?

Yes. Implied Agency

A provisional sales associate is

allowed to enter into an agreement in the name of the real estate broker.

A house increases in value because of proximity to employment, schools, shopping, etc. These neighborhood sites are referred to as

amenities

John and Megan rented a home and they are behind on their rent, when may the landlord bring an action for recovery?

at any time

A person is not required to hold real estate license to

be a resident manager for the owner of a multi-family apartment building.

A zoning board of adjustment might give favorable consideration to a land use variance if

compliance would cause the owner undue and unjustified hardship.

The Oklahoma real estate commission shall

conduct an annual performance review of the Executive Director and submit it to the legislature.

In appraising a single purpose building, such as a church, the most reliable approach to an indication of its value would generally be the

cost approach

This is the most reliable approach to determine the value of special purpose building such as churches and schools.

cost approach

Title insurance with extended coverage generally covers

defects that are not in the public record

One investment advantage of owning a principal residence is that the owner may be able to

defer capital gain tax

A seller and a broker signed a contract to market a house. After 63 days on the market, the seller called the broker to say thanks, but the seller had found a buyer. What kind of listing is this

exclusive agency listing

The two (2) types of actual authority in the common law of agency are

expressed and implied

Albert and Brenda enter into a verbal contract, this is an

expressed contract

For a contract to be enforceable it should

have legal objective

The fact that no two parcels of land can occupy the same location is referred to as

heterogeneity

A real estate licensee should generally reveal license status

in any real estate transaction

Larry is a real estate broker and decides to open an office in his home residence. This

is acceptable according to OREC Code and Rules.

If a person dies with legal heirs and has not left no valid will, what happens to the real property owned by that person?

it is taken by the state according to the process called escheat. It's probated according to the terms agreed to by their heirs. ***It is probated and passes to the air's by laws of descent.*** It is conveyed to the highest bitter at a public auction. Reference category transfer of title

The sales associates website must

make reference to the sales associate's broker

Which class is protected under the equal credit opportunity act but not under the fair housing act?

marital status

Commingling is the practice of

mixing escrow funds with the broker's operating funds.

Confirmation of brokerage services agreement terms

must be provided in a separate provision or document that is either incorporated into or attached to the contract to purchase, lease, option, or exchange real estate.

Earl who is a real estate broker, decides to close his office and cease real estate business, Earl

must return the broker's license certificate and pocket identification card and all license certificates of those associated with the broker to the Commission and advise the Commission as to the circumstances involving any not returned.

The buyer pays the seller $5000 to purchase within 120 days an apartment building containing 18 units. This action is a/an

option

Tom is a real estate broker and has recently changed his business address, Tom has notified the commission in the proper time frame and now must

pay $40 for each license to be changed

To shift some of the risk inherent in recommending vendors to consumers, a licensee is advised to

present a broad range of choices and allow the consumer to make the selection.

The nature and import of the agency relationship should be disclosed to the client

prior to completing a listing agreement

Who is responsible for the accuracy of the residential property condition disclosure statement?

seller

Albert, who is a real estate broker, has been funneling buyers of certain race to a certain part of the city. This practice is known as

steering

A kind of insurance that provides coverage for losses resulting from the criminal acts of an employee is

surety bond

The primary jeopardy of overpricing a property is that

the client's expectations may not be achieved.

Which of the following is not a requirement for a valid conveyance of real property?

the signature of the grantee

If a broker intends to provide fewer brokerage services than those required to complete the transaction, the broker must provide a

written disclosure to the party for whom the broker is providing brokerage services.