RE Course Exam
Ed is a licensee who's always eager to help his clients in any way he can. One of his current clients has received an offer that will give her a tidy profit on her home. She tells Ed she's worried about her tax liability when the home sells. What can Ed tell her that will be most helpful? "I believe you'll be allowed to exclude some of that profit from your taxable income, but you should definitely consult with a tax professional to find out the best way to handle it." "I wish I could help you with that, but as a real estate licensee, I'm not allowed to offer tax advice." "The Taxpayer Relief Act of 1997 will help you avoid paying any taxes on the profit you make from selling your home as long as you've been living there for the last couple of years." "You'll be allowed to exclude as much as $250,000 of capital gains from the sale of your home if you're filing as a single taxpayer. It would be as much as $500,000 if you were married and filing jointly."
"I believe you'll be allowed to exclude some of that profit from your taxable income, but you should definitely consult with a tax professional to find out the best way to handle it."
Gunther's gross monthly income is $3,800, and he has no monthly debt payments. The lender's qualifying ratios are 28% for the housing ratio and 36% for the total DTI ratio. What's the maximum housing payment Gunther can afford? $1,064 $1,297 $1,368 $1,492
$1,064 3,800 X .28= 1,064 3,800 X .36= 1,368 **The maximum house payment is the lesser of the amounts calculated using both ratios.
Phoebe's gross monthly income is $4,200, and she has $360 in monthly non-housing debt payments. The lender's qualifying ratios are 28% for the housing ratio and 36% for the total DTI ratio. What's the maximum housing payment she can afford? $1,075 $1,152 $1,176 $1,512
$1,152 (The maximum house payment is the lesser of the amounts calculated using both ratios. DTI: $4,200 x .36 = $1,512. $1,512 - $360 = $1,152. Housing ratio: $4,200 x .28 = $1,176. Phoebe's maximum payment is $1,152.)
Using the income approach, determine the value of a property that has a net operating income of $15,000 and a cap rate of 15%. $100,000 $15,000 40% 5%
$100,000 cap rate = net operating income / property value
Your seller wants to net $100,000 after the 5% commission is paid. Assuming no closing costs, at what price does the home need to sell for the seller to net this amount? $105,163.16 $105,263.16 $105,363.16 $105,463.16
$105,263.16 100% - 5% commission = .95 $100,000 / .95= $105,263.16
The current value of a property is $105,000. What was the original cost of the property if there has been a 30% loss in value? $105,000 $150,000 $31,500 $350,000
$150,000 Take the current value of the property divided by the total depreciation: 100% ‒ 30% = 70% $105,000 ÷ 0.70
Alec just received his Florida broker license. Assuming the Real Estate Recovery Fund balance is at $400,000, how much of his license fee went into the fund? $1.00 $1.50 $3.50 None of it
$3.50 *License fees are imposed when the Real Estate Recovery Fund drops below $500,000. The amount taken from each broker's new (and renewal) license fee is $3.50.
After operating the firm for 17 years, Trethlon Manufacturing just sold its entire operation for $5.7 million. The adjusted purchase price was $3.9 million. While the corporation ran the business, it spent $970,000 on capital improvements. Real estate commissions and other costs of the sale were $358,000. What is Trethlon's capital gain? $1.328 million $1.8 million $472,000 $5.7 million
$472,000 $3,900,000 + $970,000 + $ 358,000 = $5,228,000 $5,700,000 - $5,228,000 = $472,000.
What is the largest amount you can be fined by the Department of Business and Professional Regulation for a serious violation? $10,000 $100,000 $5,000 $50,000
$5,000
What is the calculation used to determine the estimated monthly interest amount a borrower will pay on a loan? (Appraised value x interest rate) ÷ 12 (Interest rate x months in loan term) ÷ 12 (Loan balance x interest rate) ÷ 12 (Sales price x interest rate) ÷ 12
(Loan balance x interest rate) ÷ 12
What's the longest sentence someone can serve in prison for an antitrust violation? 10 years 30 days Antitrust violations do not lead to prison sentences, merely fines. One year
10 years
Tess has $385 in monthly non-housing debt obligations, and her anticipated mortgage payment is $1,103. Her gross income is $7,598, and her net income is $5,815. What's her total DTI (debt-to-income ratio)? 14.51% 18.96% 19.58% 25.58%
19.58% 385+1,103=1,488 1,488/7,598=.1958 **Total DTI includes housing and other monthly debt obligations and is calculated using gross income. The DTI formula is: monthly debt ÷ monthly gross income.
How much post-licensing education must sales associates complete before their first license renewal? 14-hours of education 45-hour course 60-hour course 63-hour course
45-hour course
What's the interest rate on a $14,000 loan that requires a semi-annual interest payment of $550? Round to the nearest percent. 4% 6% 7% 8%
8%
Which of these statements best represents what happens after a federal fair housing complaint is made? A fair housing specialist will review the complaint. An official housing discrimination complaint will be filed, and a fair housing specialist will be assigned to the case. FHEO will contact the alleged perpetrator to gather information. HUD will review the complaint to determine if it's valid.
A fair housing specialist will review the complaint.
What is another name for an installment sale contract? A land contract An equitable lien A pro-rated sales plan A traditional mortgage
A land contract
Which of the following defines the term 'lis pendens'? A legal notice that a lawsuit is pending that affects the title of a property A legal term that means "it depends" and requires a certain minimum sales price of the property. A notice that notifies potential buyers of a pending lease A public listing and notice of foreclosure of a property.
A legal notice that a lawsuit is pending that affects the title of a property "LP, lawsuit pending"
Which of these choices best defines the legal doctrine of procuring cause? A licensee brings a buyer and seller together and remains involved in the continuous negotiations that lead to the closing of the sales transaction. A licensee enters into a representation agreement with a buyer or seller. A licensee facilitates the closing of the sale. A licensee introduces a buyer to a seller.
A licensee brings a buyer and seller together and remains involved in the continuous negotiations that lead to the closing of the sales transaction.
What is a principal meridian? An east-west line used as a reference point in the rectangular survey system A north-south line used as a reference point in the rectangular survey system The center-most section identified in the rectangular survey system The center-most township identified in the rectangular survey system
A north-south line used as a reference point in the rectangular survey system
The assessed value of a property is ______. A percentage of market value and the value to which the tax rate is applied The same thing as list price The same thing as market value The value of property taxes assessed
A percentage of market value and the value to which the tax rate is applied
Which option describes stipulation? A permanent relinquishment of a license instead of facing administrative penalties A request for a formal hearing A request for an informal hearing A settlement agreement of facts and penalties, foregoing a hearing
A settlement agreement of facts and penalties, foregoing a hearing "Stipulation, Settlement"
Which phase of the investment cycle is best known for write-offs and, depending on the project, tax credits? Acquisition Ownership Reversion Sale
Acquisition
Lucky has just inherited a rental house from his grandmother, which is great timing because he needed a place to live. The house has a tenant, so he can move in ________________. 30 days after serving an eviction notice After the lease has ended and the tenant has moved out After the sheriff removes the tenant Immediately
After the lease has ended and the tenant has moved out
You've received a formal complaint against you. What else might you find in the complaint envelope? A bill for attorney fees for the complainant An Election of Rights form A Request for Remediation form The charge for court fees thus far
An Election of Rights form **The Election of Rights form is where the licensee can select a response to the complaint.
Which of the following best describes a general agent? An agent acting as facilitator to a party An agent unrelated to the real estate transaction An agent with limited authority to act on behalf of a client An agent with the broad responsibility to handle all details related to a specific piece of property
An agent with the broad responsibility to handle all details related to a specific piece of property **A general agent has responsibility to handle all details concerning a specific property. Property managers often serve as general agents.
The seller net sheet is _______ of closing costs. A bank-prepared estimate A final accounting A legally binding estimate An estimate
An estimate **The seller net sheet is an estimate, prepared by the licensee, of the sellers' expenses and credits on the day of closing. It's not legally binding, final, or prepared by a bank.
What makes an income tax lien different from a property tax lien? An income tax lien has priority over a property tax lien and will be paid first upon foreclosure. An income tax lien is a general lien and a property tax lien is a specific lien. An income tax lien is placed by the federal government and a property tax lien is placed by the state. An income tax lien is voluntary and a property tax lien is involuntary.
An income tax lien is a general lien and a property tax lien is a specific lien.
Noah owns an LLC that buys and sells stocks on the NASDAQ 100. He needs some additional financing. To which type of lending institution might he prefer to go? A commercial bank A credit union An investment group A savings and loan
An investment group **Many investment groups lend specifically to other investors who want to avoid conventional financing.
Which of the following is a true statement about how adjustments are made in the sales comparison approach? Adjustments are made to the subject property, not the comparables. Appraisers adjust downward when a comparable is missing a feature found in the subject property. Appraisers adjust upward when a comparable is missing a feature found in the subject property. Only three adjustments per comparable property are allowed; otherwise it's not considered sufficiently similar.
Appraisers adjust upward when a comparable is missing a feature found in the subject property.
The difference between what an investor plans to make and spend and what actually happens is known as ______ risk. Business Financial Liquidity Safety
Business
What penalties may be assessed for violations of FDUTPA? Cease-and-desist orders Community service Jail time License revocation
Cease-and-desist orders
According to RESPA, what must the lender give to the borrower in the days immediately prior to settlement? Closing Disclosure Freddie Mac borrower disclosure Loan Estimate TIL Statement
Closing Disclosure
The developer of a new subdivision is placing residential properties closer together, allowing him to include large open spaces throughout the development to build bike and walking trails, as well as a community pool and recreation center. What type of zoning is this? Cluster Conforming Non-conforming Spot
Cluster *Closer, Cluster*
Property with ownership by more than one person is known as ______. Co-ownership Dual ownership Estate by severalty Property partnership
Co-ownership
What type of notice results from publicly recording a title transfer? Actual notice Attorney notice Constructive notice Proper notice
Constructive notice
Nate is selling his house, which has a leaky roof. Which of the following must he provide to the buyer? A copy of all correspondence between him and the house's builder Copies of any pleadings, notices, and other documents that the seller received The contact information for the county's building inspector The name and phone numbers of at least three roof repair specialists
Copies of any pleadings, notices, and other documents that the seller received
A ______ is a point, surface, or line used as a reference for measuring elevation. Base line Datum Monument Principal meridian
Datum
What's the term for a charge that either party has to pay at closing? Balance Credit Debit Mortgage
Debit
Which mortgage clause requires the lender to discharge the mortgage lien once the borrower has paid in full? Acceleration Alienation Defeasance Due-on-sale
Defeasance The defeasance clause means that the lender is prevented from trying to pursue additional payment because the loan has been paid in full.
Price levels are an indicator of _______. Demand Inventory rates New building permits Supply
Demand
Which factor influences property value and addresses questions such as, "What's the market like?" and "Are there more buyers than sellers, or vice versa?" Demand Scarcity Transferability Utility
Demand
What do you do to determine debt coverage ratio? Divide debt service by gross income Divide net income by debt service Subtract expenses from income Subtract income from expenses
Divide net income by debt service
Which of the following could an investor who sells an apartment house buy using a 1031 exchange? Duplex, office building, or warehouse Duplex only Office building only Warehouse or office building only
Duplex, office building, or warehouse
Gene and Alex bought a property that backed up to a neighborhood park. The previous owner mentioned that ever since the park was built eight years ago, the next door neighbor who works at the park has cut through the yard to get to the park rather than going around via the streets, which saves about half a mile. What kind of easement is this? Easement by prescription Easement in gross Express easement Visible easement
Easement by prescription **Easements by prescription are created through continuous, exclusive, and long-term use of another's property without actual permission.
Sarah owns her own home. As part of her basic property rights, she has the right to decide who may or may not access the property. Which right is this? Disposition Enjoyment Exclusion Possession
Exclusion **She can EXCLUDE people**
Lydia put the minimum 3.5% down on her $210,000 home. She'll have to pay an MIP. What type of loan does Lydia have? Conventional FHA Standard VA
FHA
Kurt promised his grandmother he'd pay her $200 a month to live in the room above her garage, and she never asked him to put that agreement in writing. He lived there a few months without paying a dime and then disappeared one night after trashing the place. How long does Grandma have to sue Kurt? Five years Four years One year Two years
Four years
Which term refers to the person receiving title, often called the "party of the second part," in a deed? Grantee Grantor Notary public Witness
Grantee "RecEEEEivEEEEE"
An investor is analyzing a three-unit property by looking at its ability to produce future income. Which of the following would most likely be used to determine this value? Effective gross income Gross income multiplier Gross rent multiplier Potential gross income
Gross rent multiplier **GRM is used for income-producing properties of four or fewer units. Properties with five or more units use GIM. **Rent is smaller, income is big bucks
John just sold the home where he's lived for eight years and made a nice profit. Which of these statements about the profit he made is FALSE? He can include depreciation costs in the adjusted basis he uses to calculate the amount of his capital gains. He'll be allowed to exclude some or all of the amount of his capital gains from his income tax liability. If he made any improvements to the property, the cost of those improvements is included in his adjusted basis. In order to determine the amount of his capital gains for tax purposes, he needs to first know his adjusted basis.
He can include depreciation costs in the adjusted basis he uses to calculate the amount of his capital gains.
Which option is defined as the type of hearing that is held in front of the FREC, as long as none of the facts of the complaint are disputed? Arbitration Formal Informal Stipulation
Informal
Maddy is looking over some documents while preparing for the closing of her first home purchase. She sees that her lender requires six months prepayment of this in her escrow account. Insurance and taxes Insurance only Late fees Taxes only
Insurance and taxes
Amanda wants to know how long, on average, homes are staying on the market before they sell. What market indicator can give her this information? Inventory rates Price levels Sales volume Vacancy rates
Inventory rates
What is the total dollar amount that a borrower can borrow with an FHA-insured loan? It depends on where the property is located There is no limit Up to 80% of the sales price Up to the purchase price of the property
It depends on where the property is located
What is particular about the duty of confidentiality as it's owed by transaction brokers? Confidentiality only applies when representing a buyer or seller, not both. It is limited. It is unlimited. There is no confidentiality owed.
It is limited.
Susan Duffield died testate at age 49. What can be said about Susan's estate? Because of Susan's age, any will is invalid. Because of the will, it will avoid probate. Because she died without a will, the estate becomes property of the state. It will be put through probate.
It will be put through probate. **Testate means with a will
To whom/which entity should a licensee who's been threatened with violence after refusing to violate fair housing law report the threat? HUD Law enforcement officials The governor The National Fair Housing Alliance
Law enforcement officials
Poor Sarah! John has died and she no longer wishes to continue with their custom cabinet business, SJ Cabinets. John made the cabinets, after all! She wants to sell off all of their assets and inventory instead of selling the business itself. What method would most likely be used to estimate the value of SJ Cabinets? Comparable sales analysis Income analysis Liquidation analysis The cost approach
Liquidation analysis **Liquidation analysis is sometimes used when business will be discontinued.
A cabin has 120 feet of lake frontage. The cabin owner's ability to access the lake is based on ______. An aquifer An easement Littoral rights Riparian rights
Littoral rights *Lake, Littoral* *Riparian, River*
A discount point equals 1% of the _______. Appraised value List price Loan amount Sales price
Loan amount
Mariel is buying a home and is looking forward to the tax deductions. She may deduct which of the following costs? Closing costs Furnishings purchased on credit Loan origination fee Utility costs
Loan origination fee
Which type of federally related lending transaction is covered under RESPA? Foreclosure Industrial property loans Mortgages and home equity credit lines Retail property loans
Mortgages and home equity credit lines
Camila, a broker, has approval to work at another brokerage while maintaining her own broker firm. What is this called? Dual agency Licensure by reciprocity Multi-licensure Multiple licensure
Multiple licensure
Which activity can you perform without a license? Negotiate rent for another tenant in the office building where you work. Negotiate rent of an office building for the nonprofit where you work. Negotiate the sale price of a friend's office building for a fee. Sell your neighbor's house for a fee.
Negotiate rent of an office building for the nonprofit where you work.
Robert did not complete his post-licensing education before his first license expiration date. May he continue to work as a sales associate? No, his license will be null and void if he does not complete the education requirement and renew on time. No, Robert's license will automatically revert to involuntary inactive if he does not renew on time. Yes, as long as he renews within two years. Yes, provided he pays the late fee.
No, his license will be null and void if he does not complete the education requirement and renew on time.
Which of the following is true about Florida homesteads? Non-governmental creditors cannot pursue liens against these properties. Non-governmental creditors can pursue liens against these properties for debts over $10,000. They are not protected from creditors. They are protected from all creditors.
Non-governmental creditors cannot pursue liens against these properties.
Louellen is about to take out a mortgage loan from her credit union. The contract includes the following information: Louellen is offering her house as consideration, and the credit union is offering $350,000; and Louellen will pay the loan back over a certain number of months at a certain rate. Both Louellen's signature and the credit union representative signed it. What, if anything, is this contract missing in order for it to be legally binding, according to the statute of frauds? Louellen's credit history needs to be included. Nothing is missing. The condition and size of the house needs to be included. The credit union's physical address needs to be included.
Nothing is missing.
A taxpayer can claim a capital gains exclusion _______. Every year, provided a transfer of real property has occurred Once every five years Once every two years On every type of real estate sale
Once every two years
How many members on a probable cause panel must be consumer members of the FREC? Half of the total number of panel members One Three Two
One
Sales associates may register with how many employing brokers at a time? One There's no limit to the number of employing brokers a sales associate may have at a time. Two, if they have a group license Two, if they have multiple licenses
One *Sales associates may only have one license and may only register with one employing broker at a time. They can also have a group license and work under more than one business entity owned by one owner/developer employer.
To make valid computations of adjustments for the sales comparison approach to value, elements of comparison must be applied in a specific order. Which one of these elements is applied last? Conditions of sale Location Market conditions Physical characteristics
Physical characteristics *The elements considered in the sales comparison approach are applied in a specific order: financing terms and cash equivalency, conditions of sale, market conditions at the time of contract and closing, location, and physical characteristics.
Which of the following is illegal commingling? Failing to keep appropriate records Having more in an escrow account than could be accounted for by escrow funds Placing client funds in the firm's general business account Stealing a client's trust funds
Placing client funds in the firm's general business account **Commingling is mixing business or personal funds with trust funds.
What types of misrepresentation exist? Blatant and hidden Blatant and unintentional Intentional and accidental Positive and unintentional
Positive and unintentional
In a neutral market, what pricing strategy may generate interest in the property, possibly prompting multiple offers? Pricing above market value Pricing at market value Pricing below market value Pricing in line with comparable properties
Pricing below market value
When a tax certificate is issued, it means what? A public auction is held. Property taxes are delinquent. The property has been sold at auction. The state files a tax deed application.
Property taxes are delinquent. **The tax certificate is issued when property taxes are delinquent, and can be sold if the taxes are not paid by the auction date.
The new governor is seating a real estate commission in Florida. Which of the following is a qualification for commission membership? Commission employee for three years Florida citizen and resident for the past three years Real estate broker for the past five years Real estate salesperson for at least five years
Real estate broker for the past five years **The Florida Real Estate Commission consists of seven members, a minimum of four who have been brokers in Florida for at least five years prior to appointment.
Real estate, plus all of the interest, benefits, and rights included in ownership, is also known as ____________. Estate Land Personal property Real property
Real property
Conrad just closed on the house he's buying to fix up. Why should he follow up to be sure the deed has been recorded? He can't legally make any improvements to the property until the deed is recorded. He doesn't legally own the house until that occurs. Recording provides actual notice that he owns the property. Recording provides constructive notice that he owns the property.
Recording provides constructive notice that he owns the property.
Early in its history, the Federal Housing Administration officially supported keeping "incompatible" racial groups out of the newly developed white suburbs. What is this practice known as? Blockbusting Consolidating Redlining Steering
Redlining
In 1934, when the Federal Housing Administration was created, it adopted the practice of crossing off cities and neighborhoods it considered risky and withheld mortgage funds from those areas. What is this action called? Blockbusting Gerrymandering Redlining Steering
Redlining
A mortgage lender has landed in hot water for fair housing discrimination. Which of these actions might have gotten the lender in trouble? Denying a loan based on income-to-credit ratio Denying a loan that was pre-approved after the mother stops working to care for her baby Imposing different interest rates based on credit scores Refusing to provide literature about loans to consumers with poor English language skills
Refusing to provide literature about loans to consumers with poor English language skills **It is illegal to withhold information about a loan on the basis of a protected class. While the case of the mother staying home may look like a familial protection, the denial is actually made on the basis of a lower income, which is a completely legal.
Ari owned acreage in a rural area. He sold a small portion of it to a neighbor in an informal transaction but made no record of the sale or change of ownership. A developer offered Ari several million dollars for the entire acreage, and Ari eagerly accepted the offer. What covenant is Ari in danger of violating? Against encumbrances Quiet enjoyment Seisin Warranty
Seisin
Cleo is selling her house because she's sick of fighting with the county over the new addition that violates several building codes. What's her responsibility, if any, to the future buyer? None. The buyers should do their due diligence to uncover the violation. She must pay off any fines or fees resulting from the building violation before she can sell the property. She must provide a disclosure that defines building code violations. She must provide a disclosure that details the building code violation or violations.
She must provide a disclosure that details the building code violation or violations.
Which option describes a real property tax lien? General and involuntary General and voluntary Specific and involuntary Specific and voluntary
Specific and involuntary
What signifies that a survey is certified and represents a guarantee of accuracy? Spot survey Survey legend Surveyor's stamp Title insurance policy
Surveyor's stamp
Which of the following describes property taxes? Federal taxes that are raised locally to finance federal government programs Taxes that are raised and spent locally to finance public services Taxes used to finance state government Taxes used to offset federal aid to public programs within the state
Taxes that are raised and spent locally to finance public services
What type of ownership has the right of survivorship and requires that the co-owners be married when they take title? Joint tenancy Tenancy at will Tenancy by entirety Tenancy in common
Tenancy by entirety
Rhonda hasn't paid her HOA dues in two years. Her attorney recently informed her that her state grants HOA-related liens a super lien status. What does this mean? The HOA can collect twice the amount of the money that she owes. The HOA lien takes priority over all other liens. The HOA must involve an administrative law judge in order to collect. The lien can be attached to both her real and personal property.
The HOA lien takes priority over all other liens. **Super lien status means that the lien is granted higher priority than all other liens, including mortgages, deeds of trust, or property taxes.
Dan lives in Florida and his primary residence has homestead status. Which of the following is true? His property tax liability will not increase. His property tax liability will not increase for three years. The assessed value of his home will not increase. The assessed value of his home will not increase more than 3% over last year.
The assessed value of his home will not increase more than 3% over last year.
Which of these options best describes a sale subject to a mortgage? The buyer takes over the seller's mortgage payments and a lender isn't involved. The lender, buyer, and seller create a novation (an entirely new loan). The lender qualifies the buyer, who must apply to take over the mortgage payments. This is a cash-only transaction where the buyer pays off the seller and lender at once.
The buyer takes over the seller's mortgage payments and a lender isn't involved.
Real estate professionals handle many documents related to real estate transactions. Which one of the items listed below is one of the most important in detecting mortgage fraud? Agency disclosures Buyer representation agreement The original sales agreement and any addenda The title
The original sales agreement and any addenda
Which of the following describes the discount rate? The rate at which a bank can obtain a loan from another bank The rate at which a bank can obtain a loan from its Federal Reserve bank when using commercial paper as collateral The rate at which a bank or lender may loan money to its most creditworthy borrowers The rate at which borrowers can refinance their mortgages
The rate at which a bank can obtain a loan from its Federal Reserve bank when using commercial paper as collateral
With both joint tenancy and tenancy by entirety, when one tenant dies, that person's share automatically goes to the other surviving tenant(s). This is known as ______. Estate in severalty Termination of joint tenancy The right of inheritance The right of survivorship
The right of survivorship **This is the right of survivorship, which is a feature of joint tenancy and tenancy by entirety. Tenancy in common does not include the right of survivorship.
In a typical transaction, which of these title defects is unlikely to cause a problem for the buyer? A faulty survey An unrecorded lien A past error in recording title transfer The seller's existing mortgage
The seller's existing mortgage **Most property transactions include an existing mortgage that creates a title defect, but the defect will be cleared at closing when the seller's proceeds are used to pay off the loan.
Laura's property is subject to a special assessment. Which of the following is true? The amount of the special assessment does not become a lien against her property like ad valorem taxes. The special assessment is deductible for income tax purposes. The special assessment must benefit Laura's property. The special assessment will not accumulate interest.
The special assessment must benefit Laura's property.
Seller Jamison is closing on his property with buyer Conrad. Jamison paid the current year's property taxes already. Is this a prepaid or accrued expense, and how will it be represented on the settlement statement? The taxes are an accrued expense, and will appear as a buyer credit and a seller debit. The taxes are an accrued expense, and will appear as a buyer debit and a seller credit. The taxes are a prepaid expense, and will appear as a buyer credit and a seller debit. The taxes are a prepaid expense, and will appear as a buyer debit and a seller credit.
The taxes are a prepaid expense, and will appear as a buyer debit and a seller credit.
Which of the following statements is true regarding timeshare estates? Timeshare estates are illegal. Timeshare estates can be sold or passed down to heirs. Timeshare estates cannot be passed down to heirs. Timeshare estates cannot be sold.
Timeshare estates can be sold or passed down to heirs.
It's impossible to generalize the impact events in other areas have on local real estate values. Which characteristic of the real estate market does this refer to? Immobility Indestructibility Slow to respond Uniqueness
Uniqueness
The Richards family farm is located on a 10-acre parcel of land, which is very rare in their area. However, the house is rundown and in need of many repairs. Most buyers in the area are looking for a move-in-ready home, which means they would need to either look elsewhere or wait several months for the home to be renovated. Which factor is most negatively impacting the value of the Richards' property? Demand Scarcity Transferability Utility
Utility
Which of these statements about voluntary alienation is true? There is no such thing. By definition, all cases of alienation are involuntary. Voluntary alienation is unlawful. Voluntary alienation may only occur through documents signed by a notary. Voluntary alienation occurs when the property owner decides who will acquire the property.
Voluntary alienation occurs when the property owner decides who will acquire the property. **Voluntary alienation may occur through the sale or gift of property, or by naming a devisee in a will.