Compucram Exam National PA

What is the acreage of a lot measuring 200ft x 300ft?

1.38 Acres

A, B and C own property as a joint tenant. If C dies, what happens?

A and B now automatically own the property as joint tenants, each with 50% interest

A property management agreement is signed between which two parties?

A broker and a landlord

1. A licensed appraiser is most likely to be used in which scenario?

A buyer applying for a loan to purchase a house

A borrower is looking at various loan options. He sees that fixed rate loans have a higher interest rate than the ARM loans; however, interest rates are expected to go up in the near future. If the borrower plans on selling the house within three years, which loan option is best?

A fixed ARM for 3 year would be a good option

Which of these items would you most likely see as an exclusion in a title insurance policy?

A known easement

Which clause in a mortgage or deed of trust allows the lender to start foreclosure against a borrower in default?

Acceleration clause

1. When does the buyer obtain a mortgage commitment?

After the appraisal of the property

What individual is a fiduciary?

An Agent

The income approach used by an appraiser is based on which value principle?

Anticipation

In a partially amortized loan, what is the last amount due?

Balloon payment

At the sale of the property, the deed simply states that the grantor has the right to convey ownership but does not include any warranties. This type of deed is called a/an...?

Bargain and sale deed

When a landlord fails to meet their obligation to maintain the property in a habitable condition, the tenant has what kind of recourse?

Constructive eviction

1. What are the three methods used by appraisers to value a property?

Cost, Sales, Income

1. The acronym DUST refers to...?

Demand, Utility, Scarcity and Transferability

What is usually considered liquidated damages?

Earnest Money

When looking at a property on the market, you note that the only access to the property is by using the neighbor's driveway. To do this legally, the neighbor's property has...?

Easement in appurtenant This is an example of an easement appurtenant involving adjoining property owners. The dominant estate is the property benefiting from the easement. The neighbor is the servient estate.

A seller and buyer just signed the sales contract. The sales contract is considered...?

Executory

Sally owns a life estate. What estate does she fall under?

Freeold Estate

Buyers will generally prefer to receive which type of deed?

General Warranty Deed

Which type of coverage will a homeowner need if the home is damaged by water from burst pipes after a hard freeze?

Homeowner's insurance A homeowner's insurance policy, also called hazard insurance, typically covers this type of issue. Home warranties cover home systems and appliances, and builder's warranties cover structural issues from construction defects.

Which type of agency relationship represents the greatest liability for the broker?

Implied

When appraising a commercial building, of the three valuation methods used by an appraiser, which one would have the most weight?

Income Approach

What is the purpose of the alienation clause or due on sale clause in a mortgage?

It requires the borrower to pay off the loan balance at the time of sale.

1. The deed includes a description of the property using the words "starting at the point located at ". Which of the following is incorrect?

It will then mention the lot and block

Luis is a salesperson who is acting as a listing agent for a friend. Is this considered a conflict of interest for Luis?

It's not a conflict of interest since it's not a family member or close business associate.

A prospective buyer can expect the fiduciary duties from a listing agent, except...?

Loyalty

1. When borrowing money for the purchase of real estate, the borrower is referred to as the?

Mortgagor

What is required for a valid contract?

Offer and acceptance, consideration, competent parties, legal purpose

Which group of financial reports would all typically be prepared by a property manager for the owner?

Operating budget, profit and loss statement, and cash flow report

Phil owns a vacation home with a beautiful view, but if his neighbors add any height to their current home, his view will be blocked. What would give Phil the most control over his view?

Purchase air rights from his neighbor

A bank owned property is also know as a/an...?

REO

Which federal law regulates the closing statement...?

RESPA

What materials found in a home may present potential respiratory health issues?

Radon, mold, asbestos

When working on a CMA, the real estate licensee will choose comparable properties based on?

Recently sold and active listings

What describes an amortized loan?

The borrower makes regular fixed payments that includes principal and interest until the loan is paid off

If a buyer's agent treats a prospective buyer as a client by advising the buyer during the purchase of a property, and the buyer accepts the agent's advice, which of the following has most likely occurred?

The buyer has an implied contract with the agent

If the client dies, what happens to the contract between the client and agent?

The contract is automatically terminated

An agent listed a property for sale; however, two weeks later the town condemned the property. Which of the following is true?

The listing agreement is terminated and the broker cannot collect a commission

A licensee and seller sign a listing agreement but the seller is intoxicated at the time. What's true?

The listing agreement is voidable by the seller, who wasn't legally competent.

When referring to a loan to value ratio, what information does the lender use?

The loan amount divided by the lowest of the sale price or the appraisal amount.

At the closing, the buyer pays a title insurance fee. The title insurance policy covers which of the following?

The ownership rights of the buyer

1. A subject property is an older home with four bedrooms and one bathroom. However, the surrounding neighborhood primarily consists of new construction with four bedrooms and three bathrooms. What can be said of the subject property?

The subject property is worth less because of functional obsolescence

A signed purchase contract has not been returned yet to the offeror. What does this mean?

There is no contract yet since delivery and acceptance is not complete.

When a buyer is financing the property purchase, the buyer must receive the Closing Disclosure for review within what time period?

Three days prior to closing

How long does a listing agent need to let the seller know about any additional offers he/she receives from other prospective buyers?

Until the closing

Environmental regulations are most likely to affect construction in which of these areas?

Wetlands

A subject property has a 2-car garage and the comp has no garage. In this market, a 2-car garage has a value of $20K. How will this affect your CMA?

You'll adjust the price of the comparable by adding $20,000.

What documents will an architect reference to know where a house can be situated on a property?

Zoning ordinances

What is true regarding dual agency?

loyalty is compromised, but confidentiality will remain.