General Exam 8
12. A buyer purchased an $800,000 house with an 80% loan to value ratio. The lender charged 3 discount points to the buyer. Including the down payment, how much must the buyer pay at closing? 1 $160,000 2 $179,200 3 $19,200 4 $659,200
Answer $179,200 - At 20%, the buyer's down payment was $160,000. Since each point is 1% of the $640,000 loan value ($800,000-$160,000), 3 points would be 3 x $6,400 or $19,200. Therefore the buyer's total downpayment costs are $179,200.
17. A seller closed on his house on November 15. The annual tax bill for the current year is $1,475, which will be paid in arrears by the buyer. What is the seller's portion of the tax bill if the seller owns the day of closing, the taxes are based on a calendar year, and one uses the 360-day method? 1 Nothing. The taxes were already paid. 2 $185.00 3 $1,414 4 $1,291
Answer $1,291 - Daily proration: $1475 / 360 = $4.0972. Seller's days: January through October = 10 months x 30 days = 300 days; November 1-15 = 15 days; total seller days = 315. Seller's portion: ($4.0972 x 315 days) = $1,291
26. If a property is valued at $487,500 and assessed for 50% of its value, what are the annual taxes if the tax rate is 4.80 per $100 of assessed valuation? 1 $23,400.00 2 $11,700.00 3 $10,000.00 4 $8,800.00
Answer $11,700.00. First divide $487,500 by 2 to find its assessed value and divide again by 100 to find the number of "per $100 of valuation" tax units. In this case, that's 2437.5 units. To calculate the tax, multiply the number of units (2437.5) times the $4.80 rate for a total tax of $11,700.
11. Total interest paid on a 30-year straight note was $230,000 during the term of the loan. The annual interest rate was 6.6%. What was the loan amount? 1 $143,825 2 $127,750 3 $116,167 4 $100,000
Answer $116,167 - Total interest paid divided by the 30-year term yields an annual interest payment of $7,667. Dividing by the 6.6% rate shows the loan amount was $116,167. (230,000 /30 year mortgage = 7,667, then divide 7666/6.6% = 1161.616)
13. A house sold for $950,000 with a sales commission rate of 7.5%. The listing broker received 50% of the total commission and the selling broker received 50%. How much would the selling salesperson receive if the selling broker kept 60% and gave 40% to the salesperson? 1 $14,250 2 $35,620 3 $71,250 4 $21,370
Answer $14,250 - With total commissions of $71,250, the selling and listing broker each receive $35,625. At 40% of the selling broker's share, the selling salesperson would receive $14,250. (71,250*50% = 36,635) (36635*40% - 14250)
16. How much will the seller net after paying an 8% commission and paying expenses of $1,425 on a property that sold for $180,000? 1 169,425 2 $180,000 3 $164,175 4 $165,600
Answer $164,175 - At 8%, commissions come to $14,400, plus the $1,425 in additional expenses. Subtracting those two figures from the $180,000 sale price gives the seller a total net of $164,175.
14. A broker was paid a commission of 6% of the first $120,000 of a sale price and 4% of all over $120,000. What would the sale price be if the total commission was $9,000? 1 $197,500 2 $175,000 3 $165,000 4 $120,000
Answer $165,000 - The broker's 6% commission came to $7,200 (.06 x $120,000). Subtracted from the total commission of $9,000, it leaves an additional balance of $1,800. Since that portion was paid at the rate of 4%, dividing $1,800 by .04 yields the home's second cost component of $45,000. Add that to $120,000 and the home's total selling price was $165,000.
19. The gross income from an office building is $73,500 and the annual expense total is $52,300. If the owner expects to receive an 11% return on his investment, what is the value of the building? 1 $125,800.00 2 $192,727.27 3 $668,181.81 4 $475,454.54
Answer $192,727.27 - Net income is $73,500 minus $52,300 or $21,200. The value of the building is calculated by dividing net income ($21,200) by the rate of return (11%) which, in this case, is $192,727.27.
10. A buyer received an 80% loan. If the annual interest rate was 4.5% and the monthly interest paid was $790, what was the total sale price? 1 $279,667 2 $263,333 3 $210,667 4 $191,533
Answer $263,333 - At $790 per month, annual interest works out to $9,480 (790 x 12). Since the rate is 4.5%, $9,480 is divided by .045 (9489/0.45) to yield the mortgage amount of $210,667. Since the loan represents 80% of the value, it's divided by .8 for a total home price of (210,667/.8) $263,333.
8. An $284,000 loan at 5.5% annual interest had principal and interest payments of $1612.52 per month. How much of the second month's payment would be applied to the principal? 1 $1,300.24 2 $1,301.67 3 $312.28 4 $310.85
Answer $312.28 - You must reduce this loan twice in order to discover the answer to the problem. Step 1 - $284,000.00 X 5.5% = $15,620 a year divided by 12 months = $1301.67 a month interest. Step 2 - $1612.52 principal and interest payment minus $1301.67 =$310.85 principal paid the first month. Step 3 - $284,000.00 minus $310.85 = $283,689.15 principal balance at the end of the first month. Step 4 - Repeat the same process using the new loan amount. $283,689.15 X 5.5% = $15602.90 interest a year divided by 12 is $1300.24 interest a month. Step 5 - $1612.52 principal and interest minus $1300.24 = $312.28 principal paid the second month. Be very careful when completing a question like this that you don't make the mistake of using the interest amount monthly for the answer. Look at answers C & D. - Answer B Step 1 Loan Interest Months Interest payments $284,000.00 5.50% $15,620.00 12 $1,301.67 Step 2 Principal Interest payments Principal Paid first month $1,612.52 $1,301.67 $310.85 Step 3 Principal Paid first month $284,000.00 $310.85 $283,689.15 Step 4 New Loan Amouth Interest Interest for the year Months Intrerst $283,689.15 5.50% $15,602.90 12 $1,300.24 Step 5 Principal Interest Answer $1,612.52 $1,300.24 $312.28
15. An owner of a six-family apartment complex pays the property manager an annual salary equal to 6% of the property's annual gross income. If the annual gross income is $700,000, the annual expenses are $325,000 and the capitalization rate is 10%, what is the property manager's annual salary? 1 $70,000 2 $42,000 3 $32,500 4 $19,500
Answer $42,000 - This question is full of red herrings. The only figures that count are the gross annual income of $700,000 and the property manager's salary of 6% of GAI, which yields annual compensation of $42,000.
18. A tenant rented a store to use as a real estate school at a base rent of $1,500 a month. Additionally, the tenant agreed to pay 3% of gross annual sales over $200,000. What were the gross sales if the total rent paid for the year was $30,000? 1 $750,000 2 $600,000 3 $150,000 4 $400,000
Answer $600,000 - Base rent amounts to $18,000 per year. Subtracted from the $30,000 total rent, it yields a further $12,000 that came from the 3% of sales portion of the agreement. $12,000 divided by 3% is $400,000, plus the first $200,000 that was exempt from the surcharge, means the company had total sales of $600,000.
9. A house sold for $350,000. The buyer made a 20% down payment. Monthly interest on the loan was $1,400. What was the interest rate on the loan? 1 8% 2 7% 3 6% 4 5%
Answer 6% - 20% down means the buyer would be carrying a $280,000 mortgage. With a monthly payment of $1,400, the annual amount of interest paid is $16,800... which is 6% of the principal and a 6% rate $350,000.00 x 20% = $70,000.00 350,000 - $70,000.00 = $280,000 Loan Months $1,400.00 x 12 = $16,800.00 $16,800.00 / $280,000.00 = 6%
47. Which of the following guidelines apply to the establishment of an earnest money account by a broker? 1 All bank records for the account must be kept for 3 years. 2 The account must be labeled as "Earnest Money Account". 3 The account cannot be in the same bank as the broker's personal account. 4 An individual sub-account is required for each transaction.
Answer All bank records for the account must be kept for 3 years. A copy of each check deposited into and withdrawn from the account must be kept for a period of 3 years.
28. Which of the following statements BEST shows the difference between an exclusive right to sell and either an open or an exclusive agency? 1 An exclusive right-to-sell guarantees the listing broker a commission if he/she procures a ready, willing and able buyer; exclusive agency and open listing do not provide the same protection. 2 An exclusive right-to-sell appoints only one agent; the others do not. 3 An exclusive right-to-sell agreement permits the seller to sell his house without paying a fee; the others do not. 4 An exclusive right-to-sell agreement enables the seller to negotiate a commission; the others do not.
Answer An exclusive right-to-sell guarantees the listing broker a commission if he/she procures a ready, willing and able buyer; exclusive agency and open listing do not provide the same protection. Exclusive agency, in fact, means that the seller will owe no commission if he finds his own buyer. Open listings are even riskier for brokers because they will lose the commission if the buyer or any other broker or salesperson provides a buyer.
38. Which of the following is NOT true about an option? 1 An unexecuted option creates certain rights to the use of the land by the optionee. 2 The option rights are assignable unless otherwise noted. 3 The optionor retains the money paid for the option even if unexercised. 4 The optionee has no interest or estate in the property until the option is exercised.
Answer An unexecuted option creates certain rights to the use of the land by the optionee. Whether for property, gold, soybeans or frozen orange juice, an expired or unexercised option carries with it no rights whatsoever.
29. Which of the following events does NOT usually terminate a listing? 1 Death of either the selling broker or buyer 2 Foreclosure on the listed property 3 Expiration of the agreed upon time period 4 Bankruptcy of the seller
Answer Death of either the selling broker or buyer. The old joke, "death is no excuse," has some validity in real estate transactions. In this particular case, however, the matter is straightforward. Listing agreements are with firms and so survive the death of an individual, and the death of one buyer has no direct bearing on the listing agreement at all.
30. An owner listed a farm with a broker. Although the owner did not mention it, the broker knew the owner was in poor health. What should the broker tell potential buyers? 1 Don't tell them anything because it would reduce the seller's bargaining leverage. 2 Tell them of the illness but NOT the need to sell 3 Tell them the owner is not interested in selling unless it is a full-price offer 4 Tell them of the need to sell quickly
Answer Don't tell them anything because it would reduce the seller's bargaining leverage. Disclosing the owner's health not only violates the broker's responsibility to help the owner get the best price possible for his property, it also violates his rights of confidentiality.
7. Which of the following would be in violation of the federal Truth-in-Lending laws? 1 For sale, seller will carry 2 For sale, assume large FHA loan 3 For sale, VA financing available 4 For sale, $500 down, payments $483.20 per month
Answer For sale, $500 down, payments $483.20 per month - Regulation Z stipulates that once one financing aspect is advertised, all other aspects must also be disclosed. In this case, that would include the total cost of the property, the interest associated with the monthly payment and any other costs, such as association fees or common charges.
49. A broker or licensed salesperson is obligated to do which of the following upon obtaining a listing in Massachusetts? 1 Set up a listing file and issue a number in compliance with legal requirements. 2 Cooperate with every real estate office wishing to participate in marketing the property. 3 Give a copy of the listing to the seller. 4 Place advertisements in the local newspapers.
Answer Give a copy of the listing to the seller. The broker or salesperson must give the seller who signs the listing a legible, signed, true, and correct copy of the listing.
35. During a listing presentation a seller asked a salesperson to: give an opinion of the list price, not disclose the seller's pending divorce, contact the seller at least weekly and give an opinion of the validity of the title. Which of the following should the salesperson NOT do? 1 Give an opinion of the validity of the title. 2 Contact them at least weekly. 3 Suggest improvements to increase value. 4 Give an opinion of the list price.
Answer Give an opinion of the validity of the title. Opinions on title require the specialized knowledge of attorneys and title experts and should never be offered by salespeople.
45. When received by a broker on behalf of a principal, when must funds be deposited in an escrow or trust account? 1 Within 3 days of obtaining all signatures for the contract 2 Immediately 3 Within 5 business days of receiving the offer 4 Within 3 business days of receiving the offer
Answer Immediately. Earnest money and security deposits held during a pending transaction, are considered other people's money and must be deposited immediately.
37. The ______________ was created as a subsidiary group of the National Association of REALTORS® in 1933. _________ offers both educational and professional programs in property management. 1 United Property Managers (UPM) 2 The International Council of Shopping Centers (ICSC) 3 Institute for Real Estate Management (IREM) 4 The National Association of Builders and Managers (NABM)
Answer Institute for Real Estate Management (IREM) The Institute of Real Estate Management (IREM) is an international community of real estate managers dedicated to ethical business practices, maximizing the value of investment real estate, and promoting superior management through education and information sharing.
46. When a broker receives earnest money from a buyer, how does Massachusetts law dictate this be handled? 1 It should be deposited in a salesperson's personal account. 2 A special, separate escrow account should be established for this transaction. 3 It should be deposited in an existing escrow account established for earnest money. 4 It should be held in a secure place in the broker's real estate office until the offer is accepted.
Answer It should be deposited in an existing escrow account established for earnest money. The money must be deposited in an existing escrow account in which all earnest money received from buyers may be held at the same time.
27. A deed would be presumed to have been delivered when which of the following happened? 1 It was signed. 2 It was recorded. 3 It was notarized. 4 It was subrogated.
Answer It was recorded. Since a deed transfers ownership to a new party, the fact that it is newly recorded carries with it the presumption it was properly delivered, which means title was properly transferred.
41. What information must be included on a real estate broker's website in Massachusetts? 1 There are no specific guidelines for internet advertising. 2 Name and address of the broker's office and the states in which the brokerage holds licenses. 3 Names of active licensees and their addresses and phone numbers. 4 License number of the brokerage and a list of current active licensees.
Answer Name and address of the broker's office and the states in which the brokerage holds licenses. The name of the brokerage, the office address, and the states where the brokerage holds licenses must be included on each screen of a broker's web site.
36. An owner listed a property with Broker Kevin on May 1. On July 1, the owner was declared legally insane. The broker brought a full price offer on July 3 to the seller, which he accepted. How much commission is Broker Kevin due? 1 No commission, since the listing was terminated when the owner was declared legally insane 2 Partial commission, since the property was sold within the protected period 3 The full commission, as the seller accepted the offer 4 The full commission, as he brought in a ready, willing and able buyer
Answer No commission, since the listing was terminated when the owner was declared legally insane. Since the seller was declared legally insane, he was no longer qualified to be party to any kind of contract and it was automatically rendered void.
39. Spence Construction Company built a hangar for an helicopter, which was kept on the owner's property. The owner did not pay for the hangar, so Spence filed a mechanic's lien on the helicopter. Was Spence Construction Company justified in doing this? 1 No, because a mechanic's lien can NOT be placed on real property. 2 No, because a mechanic's lien can only be placed on the improvement. 3 Yes, because a mechanic's lien covers all of the homeowner's property. 4 Yes, because the building of the hangar improved the value of the helicopter, so the helicopter was attachable.
Answer No, because a mechanic's lien can only be placed on the improvement. Mechanic's liens may only be placed on the property worked on, not any other assets the owner may have.
32. A broker produces a supposedly ready, willing and able buyer. At closing, the seller is unable to provide marketable title to the property and the buyer cannot come up with the financing to purchase the home. Is the broker due a commission? 1 No, because he did not finish closing the transaction. 2 No, because he did not produce a ready, willing and able buyer. 3 Yes, because he produced a ready, willing and able buyer. 4 Yes, because the seller is the one who cannot produce marketable title.
Answer No, because he did not produce a ready, willing and able buyer. By definition, "ready, willing and able" means having the funds in place to complete the transaction. Since that wasn't the case, no commission is due.
40. A seller sold a property to a buyer knowing that a third party had a claim in the property. Would the buyer get marketable title? 1 No. Property cannot be sold if a third party has a claim in the property. 2 No, because there was a cloud on the title. 3 Yes, because he paid the appraised value. 4 Yes, because at the time of transfer no claim was made.
Answer No, because there was a cloud on the title. A "marketable title" means a property is free and clear of any other claims. However, the property can still be sold--and, indeed, might be if a willing buyer can be found, the terms are attractive enough and the cloud on the title appeared as though it could be resolved.
33. Which of the following duties is NOT applicable to both residential apartment managers and condominium managers? 1 Occupancy levels 2 Holding operating expenses down 3 Purchasing supplies 4 Groundskeeping and maintenance
Answer Occupancy levels. Condominiums are generally owner-occupied and so vacancy rates are not relevant. Additionally, the owner of an apartment building would not want to hold a property manager responsible for occupancy rates since that provides an incentive to rent to people whose credit or references indicate they may pose more problems than filling a vacant unit would be worth.
6. A subdivision developer obtained a loan to purchase twenty lots. What type of clause might she/he be required to agree to in the security instrument (mortgage or deed of trust)? 1 Safety 2 Exculpatory 3 Partial release 4 Subordination
Answer Partial release - A partial release clause provides that as payments are made on an accelerated or greater than pro rata rate, specific lots in the subdivision will be partially released from the mortgage.
50. Scott listed his house for sale with Susan on February 1st. The listing agreement specified 5 months but in April, Scott changed his mind and decided the house was no longer for sale. Which of the following is TRUE? 1 Scott is required by law to leave his house on the market until July 1st. 2 Scott may not cancel a listing agreement that is scheduled to run for less than 6 months. 3 Scott has canceled the agreement and if the broker also agrees, there are no penalties. 4 The Massachusetts Board of Registration of Real Estate Brokers and Salespersons will decide if Scott's action is justifiable.
Answer Scott has canceled the agreement and if the broker also agrees, there are no penalties.
48. A broker wishes to sell her own home. What professional disclosure does is required in this case? 1 She is not allowed to list her property on her own and sell it through an additional broker. 2 Nothing; she is acting as private citizen and therefore not required to share information about her professional status. 3 That she disclose her status as a real estate broker in the listing. 4 That she disclose her broker's license number address and number of years working as a broker in the listing
Answer That she disclose her status as a real estate broker in the listing. No broker may advertise real property to purchase, sell, rent, mortgage or exchange unless he/she discloses that he/she is a real estate broker.
43. A licensee had 2 closings but her broker kept part of the commission to pay for expenses the licensee charged to the company. If the licensee files a complaint with the Board, which is TRUE? 1 The Board does not handle disputes over commissions. 2 The Board will immediately suspend the broker's license. 3 The licensee must wait 30 days before submitting the complaint to the Board in case the broker has a change of heart. 4 The licensee must submit the complaint in writing before the Board will resolve the issue.
Answer The Board does not handle disputes over commissions. The Board does not intervene in payment or commission disputes between brokers and salespersons.
44. Which of the following regarding displaying licenses is TRUE? 1 The license of each broker and each salesperson must be kept safely in the firm's strongbox or safe for safekeeping. 2 The license of each broker and each salesperson must be displayed on the firm's website. 3 The license of each broker and each salesperson must only be displayed if specifically asked for by the client. 4 The license of each broker and each salesperson must be prominently displayed in the place of business.
Answer The license of each broker and each salesperson must be prominently displayed in the place of business. Each broker and salesperson must display a copy of their license in a conspicuous location that is readily observable to the general public to ensure transparency and honesty.
42. Which of the following is TRUE with regard to listings based on a "net price?" 1 They are more profitable because there is no minimum commission. 2 They are legal in Massachusetts if the seller agrees. 3 They are illegal in Massachusetts at any time. 4 They are permissible with approval of the Board of Registration of Real Estate Brokers and Salespersons.
Answer They are illegal in Massachusetts at any time. Due to the potential conflict of interest for the broker, net listings are illegal in Massachusetts.
34. A property was listed for $100,000. A broker was showing the property to a buyer who wanted to offer $70,000. The broker told the buyer a shopping center would be built down the street within one year and, therefore, the property was worth $100,000. The buyer then purchased the property for $100,000. Five years later, the shopping center still was not built and the buyer was forced to sell the property for $65,000. Could the buyer recover any losses from anyone? 1 No, because five years had elapsed. 2 No. The broker only made an oral claim, not a written one. 3 Yes, from the broker because of the misrepresentation about the building of the shopping center. 4 Yes, from the people who did not build the shopping center.
Answer Yes, from the broker because of the misrepresentation about the building of the shopping center. Whether verbal or in writing, unfounded claims that could have a bearing on a property's perceived value and/or a prospective buyer's purchase decision constitute fraud.
3. The instrument that pledges real property as security is 1 a properly executed will. 2 a promissory note. 3 a recorded deed. 4 a mortgage or a deed of trust.
Answer a mortgage or a deed of trust. - An old English term derived from two French words ("dead pledge"), the terms mortgage and deed of trust are often used interchangeably.
5. Broker Noah was asked by a purchaser to explain a budget mortgage. His best answer would have been 1 a mortgage with payments including principal, interest, taxes, and insurance. 2 a mortgage with interest only payments. 3 a mortgage with graduated payments. 4 a mortgage that is less than $100,000.
Answer a mortgage with payments including principal, interest, taxes, and insurance. - Until creative financing came along, virtually all mortgages were "budget" in that each monthly payment covered all costs associated with the loan.
31. Broker Nancy agrees to finance a condominium development since the developer agrees to give her the exclusive right to sell the finished condo units. The developer is not able to revoke the listing agreement. This is 1 agency coupled with an interest. 2 dual agency. 3 unlimited agency. 4 transaction brokerage.
Answer agency coupled with an interest. An agency coupled with an interest is an agency relationship in which the agent has an interest in the property that is being sold. This type of agency cannot be revoked by the principal, nor is it terminated if the principal dies.
25. A claim or liability attached to a property is called 1 a buyer's claim. 2 an easement. 3 an encumbrance. 4 a requirement.
Answer an encumbrance. Remember that an encumbrance is any claim against a property. Restrictions, liens, and buyer's claims (also known as a vendee's lien) are all FORMS of encumbrances.
1. An acceleration clause gives the lender the right to 1 charge a pre-payment penalty if the loan is paid off before maturity. 2 increase the interest rate upon assumption. 3 adjust the amount of the payments if the interest rates increase. 4 demand the entire amount owed due and payable upon default.
Answer demand the entire amount owed due and payable upon default - This is a standard clause to protect the lender's interest in case of a sale (when the loan would no longer be secured by the property), default on payments (Declaring the total amount due is a first step in the foreclosure process.) and other defined circumstances.
20. The loss of value in any property, regardless of the specific cause, in an appraisal, is known as 1 depreciation. 2 taxation. 3 functional obsolescence. 4 descent.
Answer depreciation. - Depreciation refers to a GENERAL loss in value, as opposed to "functional obsolescence" or "physical deterioration," which refer to specific types of depreciation or losses in value. "Descent" is a term used in conjunction with inheritances, and is not related to the other terms at all.
21. A person who has complete control over a parcel of real estate is said to own a 1 life estate. 2 defeasible fee estate. 3 fee simple estate. 4 leasehold estate.
Answer fee simple estate. - Fee Simple, also known as fee simple absolute, is known as the highest degree of ownership. The other "estate" terms are all much more limited forms of ownership. A life estate expires over time, a leasehold estate has a definite term, and a defeasible estate is limited by a certain event happening.
2. A trust deed gives the lender a right to request that the trustee perform certain tasks in order to fulfill the terms of the trust. The trustee may take action in those circumstances because he holds 1 public title. 2 reversionary title. 3 equitable title. 4 naked title.
Answer naked title. - Since the trustee in this case is acting on behalf of the true owner of a property, he holds a "naked title," meaning a title without the usual rights of ownership.
23. The effort that brings about the desired result in a real estate sale is known as 1 advancement. 2 closure. 3 creative salesmanship. 4 procuring cause
Answer procuring cause. Procuring cause of sale is the effort that brings about the desired result--in this instance, a ready, willing, and able buyer.
24. A naturally occurring gas that is suspected of causing lung cancer is known as 1 polychlorinated biphenyls (PCBs). 2 radon. 3 asbestos. 4 lead based paint.
Answer radon. While each of these items is an environmental hazard, radon is the radioactive, odorless, tasteless gas produced by the natural decay of other radioactive substances. The rest of the items are not gas hazards, but solid ones: Asbestos is a mineral; lead-based paint is paint (as the name states); and PCBs involve electrical equipment.
22. The law that requires real estate contracts to be in writing to be enforceable is the 1 parole evidence rule. 2 Real Estate Act of 1960. 3 statute of limitations. 4 statute of frauds.
Answer statute of frauds. Under the Statute of Frauds, contracts for sale of real property must be in writing to be enforceable. This is to prevent FRAUD from occurring. Don't confuse this with the statute of limitations, which sets limits on the time in which actions may be brought against a person; constitutional law, which is the law arising from the federal and state constitutions; or descent, a term used in conjunction with inheritances.
4. Just before the sheriff begins the auction sale of foreclosed property, the delinquent borrower offers to pay the outstanding debt and all costs incurred because of his default. In such a case, 1 the lender may choose to either accept payment or proceed with the auction. 2 the borrower may pay the judgment and reclaim his property under the statutory rights of redemption. 3 the borrower may pay the judgment and reclaim his property under equitable rights of redemption. 4 the sale must proceed and the property sold to the highest bidder.
Answer the borrower may pay the judgment and reclaim his property under equitable rights of redemption - Legally, actions that include "equitable" as part of their description, such as "equitable rights of redemption," refer to the inherent fairness of the action.