National study
Katherine purchased a property for $255,000, borrowing $242,250. The assessed value of the property is $249,700. The property appraisal came in at $257,000. Which of these amounts is used in calculating the transfer tax?
$255,000
The element of a deed that signifies the grantor's intention to transfer title to the grantee is the ______.
Act of conveyance
What does the Federal Trade Commission regulate?
Advertising
Jeffersontown has a zoning ordinance that requires all properties in a designated historic district to have brick or wood plank facades. No aluminum, cement board, or vinyl siding is allowed. What type of zoning is this?
Aesthetic zoning
_______ is the principle that the more similar properties there are on the market, the lower the price will be driven.
Competition
Your buyer client, Percival, was pre-approved for the exact amount he needed to buy the home of his dreams, and he made an offer that was accepted by the seller. What's his next step?
Complete a loan application.
To make valid computations of adjustments for the market comparison approach to value, elements of comparison must be applied in a specific order. Which of these elements has the highest priority?
Conditions of sale
When a property owner wishes to convey her property to a new owner, she will generally use a ______.
Deed
Morgan has agreed to sell his home to Dierks, and they've signed a contract. Which of these actions changes the contract from executory to executed?
Dierks' lender funded the loan, and closing took place.
Joe gave land to a school, but still wanted to have some control over its use, so a deed was prepared that gave the school title as long as the land is used for educational purposes. What type of interest does the school have?
Fee simple determinable
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 first?
Financing terms and cash equivalency
Which of these would most likely be an implied contractual condition in a real estate sales contract?
Freedom from fraud and misrepresentation
Grant and Adela arrange a $150,000 loan at 4.5% annual interest with their lender. What's their monthly interest amount?
Grant and Adela's annual interest amount is $6,750 ($150,000 x 0.045). To get the monthly amount, divide $6,750 by 12. Their monthly interest amount is $562.50.
What does the income approach to value rely on when valuing properties that are five or more units?
Gross income multiplier
What hazard do mining activities, landfills, or agricultural pesticides contribute to?
Groundwater contamination
Fred is an agricultural lender who helps the ranchers and farmers in his community by providing credit for purchasing land, making repairs to their buildings, and improving their agricultural property. He's able to do this in part because of the ______ offered by the USDA Farm Service Agency.
Guaranteed loans
A buyer with a $350,000 loan has a monthly principal and interest payment of $2,102.36. If $1,801.23 is interest, what's the new principal balance after the first payment is applied?
If $1,801.23 of the $2,102.36 is interest, that leaves $301.13 for principal. Subtract $301.13 from $350,000 for a new principal balance of $349,698.87.
Hannah wasn't able to get the financing to open her boutique, so her mother came on as a silent partner and provided additional cash. Hannah and her mother have an agreement that states Hannah's mother can't be held financially or legally liable if there are any problems with the store. What type of contract clause is this?
Indemnification
Why might a licensee want a buyer to sign a buyer representation agreement?
It helps ensure buyer loyalty.
Which ownership type is defined by four unities: time, title, interest, and possession
Joint tenancy
It's 12,280 feet from Missy's house to the nearest coffee shop. Approximately how far is this?
Just over two miles
A new real estate professional is getting to know licensees at his new firm, Tremont Homes. One licensee tells him there's an unwritten agreement with a neighboring firm that Tremont serves the mid-town area, and everyone who has prospective clients in that area refer their leads to Tremont. What's this an example of?
Market allocation
The MARIA acronym helps to identify the five tests of a fixture. Which of the following tests refers to how and whether the item is attached to the property?
Method of annexation
Which of the following is the price a lender believes the property will bring at a foreclosure sale?
Mortgage value
Governments like property taxes as a revenue source because ______.
Property values, and therefore taxes, tend to remain stable
Property managers must recognize the federally protected classes under ADA and the federal Fair Housing Act. Which list most accurately lists these classes?
Race, color, religion, national origin, sex, familial status, or disability
Tristan refused to let Marla list his property on the MLS, even though Marla told him that more exposure to the property would generate more potential buyers. Which two fiduciary duties are at odds in this situation?
Reasonable skill and care and obedience
Which of these is a TRUE statement regarding truth in advertising violation penalties?
The Federal Trade Commission determines the severity of the penalty based on the severity of the violation.
Which of the following is a potential disadvantage for a buyer who enters into a lease with an option to buy contract?
The buyer/lessee could lose any funds credited to the purchase price if he breaches the lease's terms.
The Slathertons are looking at buying a $300,000 property with a 20-year loan at a 6% interest rate. How much would their monthly principal and interest amount be? Plug in the numbers using the amortization chart in your resources to see what the payment per month would be. (Use the amortization chart your lesson instructed you to print out.)
The estimated payment is $2,149.30. Remember to divide $300,000 by 1,000, then multiply the factor (7.16431) by 300
Which of the following statements about the number of contingencies in a sales contract is true?
The inclusion of numerous contingencies makes it less likely that the buyer's offer will be accepted.
Alexandra sells her house to Clark for $178,000. They negotiate to split the transfer tax, which has a rate of $0.33 per $100. What do they each pay to cover the transfer tax?
The total transfer tax is $587.40 ($178,000 x .0033), so they each pay $293.70 ($587.40 ÷ 2).
What's the purpose of a buyer representation agreement?
To establish an exclusive agent/buyer relationship
Which of the following is an example of price fixing?
Two brokerages determine a standard commission rate.
In contract law, undue influence differs from duress in that duress includes ______.
Use or threat of force
As part of the sales contract, Garth, the seller, was supposed to provide a copy of the seller's disclosure to the buyer, Melanie, but he failed to do so. What type of contract is this?
Voidable
Zach wants to purchase a property that's subject to an existing lease agreement, which includes the tenant's right to renew the lease. What is Zach's obligation, if any, to uphold the terms of the lease agreement?
Zach must honor that right and allow the tenant to renew at the end of the term.
