National Exam
Matt is a developer who's obtained a permit that he must post on the job site. Which entity inspects the various phases of his work and signs off on the permit?
Building department inspectors
Select the statement that accurately depicts property ownership income tax implications.
During the ownership stage, both investors and homeowners may be able to deduct mortgage interest paid.
Which of these is NOT an example of agency coupled with interest?
Gene, a real estate professional, is purchasing a home for his personal use. He negotiates a reduction in the sales price in return for taking no commission from the seller.
Which of the following is an acceptable ad based on Regulation Z?
Get a low interest rate of 4.75% (4.925% APR) with as little as 10% down payment and a 30-year fixed rate with no points.
Celia was obtaining a conventional loan, and she put $50,000 down as a down payment. Why might her lender also require her to obtain private mortgage insurance?
Her down payment of $50,000 isn't at least 20% of the purchase price.
Which of these situations addresses the fiduciary duty of confidentiality?
Jeanette, a seller's agent, tells the buyer's agent that her client must sell his home because of an illness.
Luci's client Kaden wants to purchase a new construction property, and he wants to get as much house as he can afford. Which of the following does Luci need to advise Kaden about regarding interest rates when purchasing a newly built home?
Kaden needs to allow for the possibility of an interest rate increase between now and closing because lenders aren't likely to lock in an interest rate for more than 90 days before closing.
Clint is interested in making an offer on a house with hardwood floors that will need to be replaced. The hallway is 18 feet by 6 feet. The kitchen is 20 feet by 30 feet. The living room is 25 feet by 45 feet. There are two bedrooms, which measure 12 feet by 16 feet each, plus a master bedroom that is 14 feet by 20 feet. If the cost of the flooring is $5.48 per square foot, and the cost of installation is $1.49 per square foot, how much can Clint plan to spend to replace the floors?
$17,404.09
What's the rate of capitalization of a property generating net property income of $25,000 per year that's valued at $312,500?
8% (The capitalization formula is value = income ÷ rate of capitalization. To determine rate of capitalization, divide Income by value ($25,000 ÷ $312,500 = 8%).
When using the MARIA acronym to test whether an item is a fixture, what do the two As stand for?
Adaptability of item to land's use and agreement of the parties
To estimate value by cost approach what do you do
Add site value plus improvements and minus depreciations
Which approach to value measures the cost to produce a property, including land acquisition and construction costs?
Cost approach
Don and Becky realized too late that the contract they signed for the sale of their home didn't include any language about a rent-back if the home they're building isn't ready in time. What can their listing agent do?
Create a contract amendment with the required language.
The Nettles have accepted the Briars' purchase offer, and both parties have signed the sales contract. The funds, and the title, should transfer in a matter of days, but otherwise all elements and terms of the contract have been met. What type of contract do the Nettles and the Briars have?
Executory
Leon and Beth own 1/13 of a timeshare estate. They own weeks 20 and 21, and also weeks 40 and 41. These weeks are inheritable. What type of ownership is this?
Fee simple
The Crows gave their son, Gibson, the family property, so long as he doesn't join his friend's rock band. If he joins the band, the property goes back to them. What type of estate is this?
Fee simple determinable
Your clients, the Harpers, live in Area B that's adjacent to Area C; Area C was recently downzoned. If the Harpers believe the rezoning has harmed their property values, what can they do?
File a claim of inverse condemnation.
To get income approach questions right use
I= income ÷ R= Cap Rate = Value
What's the relationship between the Loan Estimate and the Closing Disclosure?
Lenders issue the Loan Estimate within three days of receiving an application, and Closing Disclosure figures should be similar to the Loan Estimate.
Corinne is 68 years old and employed full time. She's of Spanish descent, is raising her 12-year-old grandson, and lives with her partner, Katherine. She requires an accessible apartment because she uses a wheelchair. Under which of the following federally protected classes might Corinne be protected if she faces housing discrimination?
National origin, sex, disability, and familial status
All terms and conditions the client authorizes must be specified and included in an offer to sell or buy. When is it acceptable to offer the property under other terms?
Never
An antitrust complaint has been received by the U.S. Department of Justice. After review, it's decided that a formal investigation will be conducted. When must the complainant be notified of the investigation?
Never
A "homes for sale" magazine contains the following ad: "One-bedroom condo. Corner unit with beautiful ocean views. Financing available, 5.25% APR." Which of these statements is true?
The ad is in compliance with TILA because providing the APR doesn't trigger the required disclosure of all credit terms.
Walt and Ginger were informed by their landlord that their option to purchase the bungalow they're renting has just been terminated. Which of the following things that can occur is likely to terminate an option to purchase?
They sublet the bungalow for a month without permission.
Which of these might bring a charge of illegal steering against a licensee?
When working with single female clients, Cassandra is careful to promote properties in neighborhoods she considers safe.
What is an addenum
When you add stuff on to a contract without changing the original terms of it
To get annual property tax amount
multiply assesed value x tax rate Then divide that by 12
Related to real estate financing, how much is a point?
1% of loan value
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?
1,042.29
What's the estimated value by cost approach for a property if the site value is $25,000, the new cost of improvements is $100,000, and the total depreciation estimate is $15,000?
110,000
Michael paid $385,000 for his home, which now has an assessed value of $392,000. His tax rate is 0.51%. How much will his monthly taxes be?
166.60
A property generates $30,000 in net operating income and has a 15% cap rate. Using the income approach, what is its value?
200,000
A buyer has a 30-year, $750,000 loan with a 5.75% interest rate. How much of the first monthly payment is interest?
3,593.75
Yasmin listed a house at a 6% commission rate, and it just sold for $463,500. Her brokerage and the buyer's agent's brokerage split the commission equally between them. Then Yasmin, who has a 60/40 commission split with her broker (Yasmin gets the higher split), took her check to the bank. How much did Yasmin earn from this transaction?
8,343
Jerrica is set to close on the property she's buying on Friday. Because of other delays in the closing date, Jerrica's interest rate as of the day of closing will increase by 1/4 of a percent. What impact does this have on the closing?
A new Closing Disclosure must be issued at least three days before the closing date.
Buyer Daphne and seller Kurt signed a sales contract with a definite closing date of May 15. Daphne then learned that she needed to move the closing date to June 15. What document should she use to make this change?
Amendment
Even though the Federal Trade Commission is concerned with all ad claims, what sort of ads would most likely concern the commission?
Any ad that makes a health or safety claim or any claim that's difficult for the consumer to evaluate
What's the biggest security issue with using social networking sites to market your listings?
Criminals may use social networking sites to identify properties that are vacant or have high-end possessions.
A buyer, hoping to beat out all other offers, included a clause in the offer that reads, "Buyer to beat all competing offers by $1,000 up to a price of $700,000. Seller to provide copies of competing offer to buyer on acceptance." What type of offer is this?
Escalator
Janice wanted to sell her townhome, and her neighbor was considering buying it. She wanted to put it on the market while she waited to find out if her neighbor was going to buy. In order to receive the best possible representation but avoid paying a commission if her neighbor buys the property, which type of listing agreement would best suit Janice's needs?
Exclusive
When you're using the sales comparison approach to value a property, which of the following is considered a category of adjustment?
Financing terms and cash equivalency
Stu is buying Freddie's property. What must occur for the transfer of title to take place?
Freddie must intend to convey the property to Stu.
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).
diffrence between independent contractors and firms contactors
Independent contractors aren't given the same benefits as individuals who are actual employees of a firm. Luis isn't required to pay unemployment insurance or withhold taxes. In fact, if he does this, he might be putting Kiley Ann's independent contractor status at risk.
What type of value may consumers be interested in if they are looking for the potential rate of return?
Investment value
Dean's new business venture is a software services firm where IT professionals handle programming and customer service tasks for a number of business clients. His employees all work at tables in an open office space. Dean most likely has a _______ lease for the office space.
Loft
What's one of the most fundamental of all fiduciary duties, and is the one that underlies all other duties?
Loyalty
Stan decides to not sell his property to Crandall, even after they've signed a legal sales contract. Crandall found a property he likes better, so they mutually agree to ______ the contract.
Rescind( back out of contract)
Kiley Ann is thrilled to have her real estate license and to be hired on at New Beginnings Brokerage. She's not positive about Luis, her employing broker, though. He seems a little sketchy. For example, when she looks at her independent contractor agreement, it says that she's not entitled to unemployment insurance and has to pay her own income taxes. What should she do?
Review the requirements for independent contractors and be prepared to pay her own income tax and unemployment insurance.
Tom and Martha live in a neighborhood where lawn ornaments are prohibited. They want to put up a nativity scene at Christmas and argue that the covenant doesn't apply to temporary decorations but only to permanent ones. Their homeowners association disagrees. Which entity enforces subdivision covenants?
The civil court system
Select the statement that correctly exemplifies the covenant term.
The covenant of quiet enjoyment promises that the grantee won't be disturbed by a title defect the grantor passes on.
Gary's new seller client is concerned about privacy and doesn't want her listing posted on the MLS. Gary explains to her the potential impact this will have on marketing her property, but the client remains adamant. Gary doesn't list the property on the MLS. What fiduciary duty is at play?
The duty of obedience
to get square foot problems right
multiply foot by foot then gather the cost for installation and multiply that by all foot
how to find first monthly pay in interest
multiply principal balance by interest rate. then find monthly rate by dividing first number by 12
