Real Estate (National)

Related to title insurance, what is "subrogation"?

A covered party grants permission to the title company to pursue the party who caused a claim or loss.

What's a power of attorney?

A legal document that allows a person to act as attorney-in-fact for another in a financial, business, or health matter

Stacy has gone into default on her mortgage. Her lender is demanding that the entire loan balance be paid in full. Which mortgage clause permits her lender to do this?

Acceleration

After the closing, Donna ensures that her client has keys to the property and copies of all the transaction paperwork. Which fiduciary duty is Donna performing?

Accounting

What's the difference between an addendum and an amendment?

An amendment is typically used to change something that's part of an original contract. Think of amendments as modifications to the earliest agreement (for example, altering an agreed-upon deadline). An addendum is used to clarify and add things that were not initially part of the original contract or agreement.

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?

Based on the minimum down payment amount of 3.5% and the fact that she's paying MIP, Lydia has an FHA loan.

Jackson Elementary School is undergoing some major renovations during the summer while school is out of session. The renovation crew has a detailed list of requirements for the disposal and drainage of wastewater and sewage. These requirements are likely part of the ________ with which the renovators must comply.

Building Code

One area of town has maximum building height requirements and setbacks for the front, side, and rear yards. These requirements are all indicative of

Bulk zoning

If you see sawdust and can't explain its presence, it's probably a sawdust-like material called frass created by which pest?

Carpenter ants

Burt owns a development company that specializes in constructing new, energy-efficient houses. The best approach for an appraiser to use in the appraisal of Burt's newly built homes is the

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.

What factors does the underwriter consider in reviewing a mortgage loan application?

Credit, capacity, and collateral

In an amortized loan, the interest portion of the mortgage payment generally ______ over the life of the loan.

Decreases

When a property owner wishes to convey her property to a new owner, she will generally use a ______.

Deed

Shirley's lender discharged the mortgage lien on Shirley's property after processing her final payment. Which clause requires the lender to take this action?

Defeasance

Bethany has agreed to purchase Derrick's property using a land contract. Who holds legal title to the property during the term of the loan?

Derrick

The Graysons just closed on their new home. They move in tomorrow. What type of contract do the Graysons have?

Executed

The Nettles have accepted the Briars' purchase offer, and both parties have signed the sales contract. What type of contract do the Nettles and the Briars have?

Executory ; they haven't closed on the house yet. The Nettles and Briars have a valid contract that's in the process of being completed. Because one or more terms of the contract must still be completed, they have an executory contract.

True or False? The duty of confidentiality refers to accounting for funds, property, and paperwork related to the transaction.

False; that's Accounting

Brenda represents Tina in a real estate transaction. Brenda therefore owes Tina ______ duties, such as confidentiality, obedience, and reasonable skill and care.

Fiduciary

To meet the requirements of the statute of frauds, an agreement must clearly identify the contract's subject matter, present the contract's essential terms and conditions, and ______ to be enforceable.

Identify the contracting parties

Property ownership gives the title holder a bundle of rights. What's significant about the concept of a bundle of rights?

It describes the ability to separate one right from the others while leaving the rest of the bundle intact.

What is tax abatement?

Lowering taxes in specific areas to increase growth/business.

What is the largest concern to licensees and advertising when it comes to the Federal Trade Commission?

Misleading Ads

James, a seller, signed a listing agreement that allowed him to contract with multiple agents but only pay a commission to the agent who located a buyer. This type of listing agreement is called ______.

Open

A surveyor created a lot and block survey for a new residential development. The first thing she did when she surveyed the new neighborhood was to reference a metes and bounds land description. From there, she divided the land into numbered lots and blocks. This output is known as a _______.

Plat Map

What does the lot and block system use to develop a property's legal description?

Plat references

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

In terms of a contract, what does 'Reasonable Time' mean

Reasonable time is assumed if a specific performance date isn't mentioned.

The Housing and Community Development Act of 1974 added which protected class to federal fair housing law?

Sex

When the listing agreement's purpose has been fulfilled, what happens to the agency agreement?

The agency agreement terminates by completion.

The seller disclosure indicates that the central air conditioning unit is 26 years old. Why might this worry Margot's buyers?

The unit may need to be replaced.

What would happen if you bought a house and later found out that there were unpaid liens against the property?

The unpaid liens could trigger a foreclosure on your property.

Why would buyers want to know whether a property is currently experiencing a tax abatement?

Their taxes are likely to increase when the abatement period ends.

Vicky and Lee vacation in Cancun, Mexico every year. They purchased the right to stay in a beach condo for the first two weeks in May, and their agreement continues for the next 10 years. They don't actually own the unit. What did they purchase?

Timeshare Use

True or False? A promissory note is a negotiable instrument and can be transferred to a secondary holder who has the right to enforce the note's terms.

True

True or False? Building codes specify construction standards to ensure the health and safety of those using the buildings. Sanitary drainage and disposal are a common building code standard.

True

True or False? Commercial and business loans are exempt from RESPA requirements

True

True or False? Electrical safety standards are typically a component of building codes in almost any location.

True

True or False? Marketable title carries a higher standard of assurance than insurable title.

True

True or False? The doctrine of estoppel prevents individuals from making an assertion or claim, even by actions or behavior, and later denying it.

True

True or False? The first principle of evaluating multiple offers is this: The appeal of any offer comes down to the seller's needs and motivations.

True

True or False? When the title company is forced to pay a claim against the policy, the covered parties give the title company permission to pursue the party who caused the loss. The covered parties are said to "subrogate" their rights to the title company.

True

What is a plat map?

a detailed map of the given land, including streets, access roads, and measurements between features.

What does the phrase "time is of the essence" mean?

the parties will proceed according to the date(s) specified in the contract.