Real Estate Final Exam National & State Portion

The current market value of a property is $135,000. For tax purposes, it is assessed at 60% of market value. The tax rate is $2.45 per $100 of assessed value. What is the annual tax liability?

$1,984.50(Taxes are based on assessed value. $135,000x.6=$81,000(assessed value). $81,000x.0245=$1,984.50

After paying the brokers fee of 6%, a seller want to net $765,000 from the sale of his house. What must the property sell for to satisfy both the broker and the seller?

100%-6%=94% 765,000/.94= 813,829.787

After paying the brokers fee of 6%, a seller want to net $180,000 from the sale of his house. What must the property sell for to satisfy both the broker and the seller?

100%-6%=94%=.94 180,000 / .94 = 191489 The house must sell for $191,489

What is the amount of real estate tax due on a property with a market value of $140,000 if it is assessed at 30% of market value, has an equalizer of 1.5, and a tax rate of $5.00 per $100.00 of assessed value?

140,000 x .30 = 42,000 42,000 x 1.5 = 63,000 63,000 x .05 = 3150

How much time is given to pass the Illinois salesperson exam?

3.5 Hours

Lori has agreed transact real estate business on behalf of Alex with Alex's authority. Lori is:

B. An agent An agent is someone who transacts business or manages the tasks of another person, pursuant to the principals authority. A principal is the party that the agent represents and acts on behalf of, such as Alex.

A broker deliberately shows a buyer homes in only one subdivision where many people of the buyer's religious faith live. Has the broker violated any law? A. Yes, because a broker must show a prospective buyer homes in at least three different areas. B. Yes, because a broker cannot discriminate on the basis of religion when showing property to a buyer. C. No, because the broker's broker is responsible for any violations of law. D. No, because there was no intent to discriminate on the basis of race or national origin.

B. Yes, because a broker cannot discriminate on the basis of religion when showing property to a buyer.

A property has been condemned by the city so that the land can be used to build a better approach to the municipal hospital's emergency entrance. Which of the following powers is the city exercising? A. power of attorney B. police power C. eminent domain D. escheat

C. Eminent Domain

A subdivision has a rule that each home in the neighborhood be at least 2,500 square feet. This is an example of which concept? A. Cooperative ownership B. Fair House Laws violation C. Restrictive convenant D. Homestead Laws

C. Restrictive covenant Restrictive convenant are created by neighborhood developers

A licensee who works for ABC Realty obtains a listing. Two days later, the licensee begins working for XYZ Realty. Which of the following is true regarding this listing? A. The listing is transferred to XYZ Realty. B. The licensee is entitled to compensation when she begins working for XYZ Realty. C. The listing remains with ABC Realty. D. The listing is automatically terminated.

C. The listing remains with ABC Realty.

What information would be unethical for a listing agent to share with a potential buyer? A. "The neighbors next door are really great and have two young children about the age of your kids" B. "The community association fees are $800 this year, but they will be going up to $1200 next year" C. "The roof might need to be replaced in the next year or two" D. "The seller is very eager for an offer because he lost his job and found a new one in a different area"

D. "The seller is very eager for an offer because he lost his job and found a new one in a different area" It is inappropriate for a listing agent to tell a prospective buyer personal information about the seller, even if it may encourage a sale. The only exception would be in the case of a seller instructing the agent to do so. Doing so would be a confidentiality breach on the part of the listing agent. The broker should answer all questions related to the property honestly.

Ownership of real property for an undetermined length of time is called:

D. A freehold estate A freehold estate is ownership of real property for an undetermined length of time. A nonfreehold or leasehold estate has a determinable end. An estate is simply an interest in property that provides the right to posses the land.

A person has been using a property for a long time. That person's rights have been determined to supersede those of the fee simple owner. This is called which of the following? A. Escheat- Refers to the right of a government to take ownership of estate assets or unclaimed property. It most commonly occurs when an individual dies with no will and no heirs. ... These situations can also be referred to as bona vacant or simply just unclaimed property. B. Homestead- The homestead exemption is a legal provision that helps shield a home from some creditors following the death of a homeowner's spouse or the declaration of bankruptcy. The homestead tax exemption can also provide surviving spouses with ongoing property tax relief, which is done on a graduated scale so that homes with lower assessed values benefit the most. C. Eminent Domain- is the power to take any property for public use without the owner's consent in exchange for the payment of just compensation. The power of eminent domain is inherent in the State of Illinois and exists independent of the Illinois Constitution, or statutory law. D. Adverse Possession- is a doctrine under which a person in possession of land owned by someone else may acquire valid title to it, so long as certain common law requirements are met, and the adverse possessor is in possession for a sufficient period of time, as defined by a statute of limitations.

D. Adverse Possession

Homestead

The homestead exemption is a legal provision that helps shield a home from some creditors following the death of a homeowner's spouse or the declaration of bankruptcy. The homestead tax exemption can also provide surviving spouses with ongoing property tax relief, which is done on a graduated scale so that homes with lower assessed values benefit the most.

Escheat

The state takes property upon an owners death if there is no will & no heirs exist.

Baird bought two rectangular lots, each of which measures 244' x 250'. Approximately how many total acres will be in the two lots combined? A. 2.8 B. 3.2 C. 5.6 D. 7.0

To answer this question, you first have to know that 1 acre equals 43,560 square feet (FYI, you should memorize this fact). Next, you have to determine the square footage of each lot. Since the area of a rectangle equals width x depth, each lot will equal 244' x250' = 61,000 sq.ft. Since there are two lots, when combined the total square footage will equal 61,000 x 2 = 122,000 sq.ft. Finally, since 1 acre equals 43,560 sq.ft The total number of acres in the combined lot will equal 122,000 / 43,560 = 2.8 acres. A.2.8

Adverse Possession

is a doctrine under which a person in possession of land owned by someone else may acquire valid title to it, so long as certain common law requirements are met, and the adverse possessor is in possession for a sufficient period of time, as defined by a statute of limitations.

Eminent Domain

is the power to take any property for public use without the owner's consent in exchange for the payment of just compensation. The power of eminent domain is inherent in the State of Illinois and exists independent of the Illinois Constitution, or statutory law.