Real Estate Principles and Practices

A home sold on the following terms: down payment 20% of the purchase price; first mortgage 75% of the purchase price; and second mortgage 5% of the purchase price. The first mortgage was in the amount of $138,900. What is the purchase price of the property?

$178,900

After deducting $5000 in closing cost and a 5% brokerage fee, the seller netted $170,750. What was the selling price?

$185,000

The maximum fine that the real estate commission can charge is:

$2000

The maximum compensation that will be paid from Connecticut real estate guaranty Fund for a single transaction is:

$25,000

In Connecticut the statute of frauds requires that all contracts that are in excess of how much be in writing?

$500

A property is assessed at 53% of market value. What is the assessed value of that property if it has a market value of $125,000?

$66,250

And owner in a condominium project:

-Called a fee simple title on his or her unit -Have an Undivided proportionate interest in the common elements -Have a real property interest

Discrimination on the basis of any of the following could be construed as violations of fair housing laws:

-Ethnic considerations -sexual considerations -religious considerations

All of the following are prohibited under the antitrust laws:

-Real estate companies agreeing not to advertise in a particular newspaper because of the rate it charges. -competing property management companies agreed to standardize management fees -competing real estate brokers allocating markets based on the value of homes

An agency agreement to sell a specific piece of real property will be terminated by all of the following:

-The death of the broker -revocation of the listing sales person's license -bankruptcy of the seller

The federal fair housing act makes discrimination in housing illegal based on the following:

-religion -physical handicap -sex

What are the forms of Co-Ownership

1. Tenancy in common 2. Joint tenancy -joint tenancy with right of survivorship 3. Tenancy by the entirety 4. Community property

The prescriptive period In the state of Connecticut to acquire title to real property through adverse possession is:

15 years

A sales person receives $2250 as his 50% of the commission on a $75,000 sale. The full commission was computed at a rate of:

6%

Termination of co-ownership by partition suit

A legal way to dissolve the relationship between co-owners of real estate when the parties do not voluntarily agree to its termination the proceeds of the sale will then be divided among the co-owners according to their fractional interests

An appraiser who is using the sales comparison approach to value would most likely use what type of property?

A property sold within the last six months or less in the same style

Mechanics lien

A statutory lien on the real property of another, created to ensure payment for work performed and materials furnished in the repair or improvement of real property, such as a building.

For land to be taken by the government under Its right of eminent domain, which of the following must apply?

A) The taking must be for a public purpose.

The clause in a mortgage that permits the mortgage to the clear the entire unpaid some upon a default by the mortgage is called:

Acceleration clause

Three of the test of a fixture are:

Adaptability, intent, attachment

When a property is advertised " principal only," Which group is excluded?

Agents

Define a contract

An agreement between competent parties and based upon legal consideration that creates legally enforceable duties and obligations.

Functional obsolescence can be created by:

An over improvement

Loan-to-value ratio refers to the ratio of the loan to:

Appraised value

Listing based upon a net price:

Are illegal in Connecticut

In Connecticut, when the broker intends to proceed as a buyer's agent when must the buyer agency contract be signed:

At the beginning of the first personal meeting with the purchaser

Which of the following types of deeds is the least desirable to a buyer?

Bargain and sale deed

Hey real estate sales person might lawfully accept an extra commission in a difficult sail from a(n):

Broker-employer

In Connecticut fees for title insurance are usually paid by the:

Buyer

Once a newly constructed property has been declared habitable by meeting certain health and safety standards, what is a builder issued by the municipality?

Certificate of occupancy

Lead poisoning can occur when:

Children injest lead paint dust, and/or lead in pipes leaks into water supply.

Tenancy in common

Co-ownership of property in which each party owns an undivided interest that passes to his or her heirs at death.

Connecticut real estate guaranty fund was established to:

Compensate a buyer whose broker embezzled deposit money

The national do not call registry provides that:

Consumers who have made an inquiry to a licensee may be contacted up tothree months later

Hey woman lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan securing the entire property. Like the other residents, she owns stock in the corporation and has a lease to her apartment. This is a:

Cooperative

The three approaches to value are:

Cost, sales comparison, depreciation

When a zoning regulation permits a specific use of a property but a private restriction contained in the deed limits that use of the property, the one that would prevail is the:

Deed restriction

In Connecticut, the real estate commission has the power to revoke a sales person's license, if the sales person:

Deposits a buyer's down payment in their personal bank account

Terminating a Joint Tenancy

Destroyed when any one of the four unities of joint tenancy is terminated

A real estate broker's responsibility to keep the principal informed of all the facts that could affect a transaction is the duty of:

Disclosure

A broker's real estate license may be revoked if she:

Engages in blockbusting

A real estate appraiser primarily:

Estimates value

Recording a deed:

Gives constructive notice of a guarantee's claim of ownership of real estate

In Connecticut, to renew a license in even-numbered years, a sales person or broker must:

Have completed 12 hours of continuing education in the past two years and pay appropriate license fee

The rescission provisions of the truth in lending act apply to what type of loans?

Home-equity

A black homebuyer inquires about a home in a predominately white residential neighborhood. What should the broker say to this buyer?

I'll show you that house and any other house in which you're interested

Richard Carlisle owned 2 acres of land. He sold 1 acre to Andrew Frick and reserved an easement appurtenant of Ingress over Frick's acre to reach the public road. Frick's land:

Is called the servient tenement.

In Connecticut when does a Real estate broker's license expire?

It expires annually on March 31st

Broker Janie listed in widow Katie's property for an 8% commission. After the sale, Katie discovered that Janie had been listing a similar property at a 6% commission. Based on these facts:

Janie has done nothing wrong

A property manager is in trouble because of compensation she received. she received:

Kickbacks From suppliers

The real estate settlement procedures ACT (RESPA) Applies to the activities of:

Lender's financing the purchase of a borrower's residence

When a lien against a parcel of real estate may result from a lawsuit currently before the courts, one examining the public records would look for:

Lis pendens

After showing a property a number of times and not securing an Acceptable offer, the broker decides to buy the property himself. He must:

Make his true position known to the seller

Under Connecticut law, a landlord Most likely would be guilty of discrimination if the lease agreement included a clause that renters:

May not have children living in the apartment

In Connecticut, the basic unit of real property tax rate is called a(n):

Mill rate

If no period is set for a residential tenancy but rent is to be paid monthly, the lease is a:

Month-to-month tenancy

You have entered into a lease that requires you to pay all or part of the landlords operating expenses. You have signed a(n):

Net lease

A salesperson responds to an ad in the paper of a "for sale by owner" (FSBO). The Owner gives the salesperson a key to inspect the property being sold. What type of agency is most likely created?

No agency

A homeowner has an exclusive agency listing with a broker but finds a buyer for the property without the broker. The listing broker is entitled to:

No commission

In Connecticut, the existence of a non-material fact Concerning real property obliges The real estate agent to:

No obligation. Only material facts must be disclosed in a real estate transaction

If an area is it re-zoned industrial and a commercial Establishment is given permission to continue its operation in that area, this is an example of:

Nonconforming use

When a mortgage loan has been paid in full, it is most important for the borrower to remember to:

Obtain and record the satisfaction or release of mortgage lien

describe Fiduciary

One in whom trust and confidence is placed; a reference to a real estate professional employed under the terms of a listing contract or buyer representation agreement.

A listing contract in which payment of the commission is contingent on the broker's being able to produce a buyer before the property is sold by the owner or another broker is called a(n):

Open listing

Creating a Joint Tenancy

PITT: the four unities are possession, interest, time, and title

If a broker as agent under an exclusive right to sell listing received two offers for the same house at the same time, one from his sales person, and one from the sales person of a cooperating broker, the broker should:

Present both offers

In order to avoid a fine at closing, This CT property condition disclosure report must be delivered to the buyer:

Prior to the buyers making a written offer

Connecticut Public accommodation laws:

Prohibits discrimination in any place of public accommodation

Under Connecticut law, upon accepting a deposit check, the agent should:

Promptly turn it over to the broker, who deposit into escrow account within three banking days after acceptance.

The primary purpose for real estate licensing laws is to:

Protect the public

Before obtaining a listing on a property that shares a driveway with the adjacent house, the owner insists that the broker not mention the fact to any prospective purchaser. Regarding this problem, the broker should:

Refuse the listing if he can't persuade the owner to disclose

The value of an expensive home in an area of less expensive homes is likely to be affected by what principal?

Regression

The Truth-in-Lending Act is also known as

Regulation Z

Nancy Smith, Peter Murphy, and Alicia Rivera our joint tenants owning a parcel of land. Rivera conveys her interest to her friend, Bill Phillips. After the convenience, Smith and Murphy:

Remain joint tenants owning an undivided 2/3 interest in the land

Under Connecticut law, which of the following is a mandated disclosure for residential properties:

Residential property condition disclosure report

The water rights of an owner of property located along the banks of a non-navigable river are called:

Riparian rights

In Connecticut the broker's commission is:

Set by mutual agreement between the principal and the agent

A broker Acting as an agent of the seller in the sale of a real property may, without further authority from a principal:

Solicit the signature of the buyer on a sales contract, which will be binding on the parties should the seller accept.

Under a standard listing contract, a Connecticut broker is considered to be a:

Special agent

A seller refused to pay a commission to the broker even though there was a valid listing agreement and the broker had produced a buyer for the property. The property has since closed. What can the broker do?

Sue the seller for the commission

The Americans with disabilities act requires:

That reasonable accommodations be provided for people with disabilities

The most commonly used title search in Connecticut is:

The attorney's certificate of title

The broker tells a prospective buyer that the house he is showing them has the best backyard in town when, in reality, part of it drops off deeply.

The broker is puffing

Seller lists A home for $240,000 and the seller's broker tells the prospective buyer to submit a low offer because the seller is desperate. Buyer offer is $228,000 and seller accepts. In this instance:

The broker violated the agency relationship

Mr. Jones passed the Connecticut real estate license examination, but is not yet licensed. As an employee for brokers Smith, he helps in selling a house to a client. How is the sales commission distributed?

The commission is paid to the real estate firm, but Mr. Jones receives no portion of it.

Under what conditions can a homeowner refuse to sell a house to a person of another race?

The homeowner can never discriminate on the basis of race

Joint tenancy

The joint ownership of property by two or more co-owners in which each co-owner owns an undivided portion of the property. On the death of one of the joint tenants, his or her interest automatically passes to the surviving joint tenants.

Tenancy by the entirety

The joint ownership, recognized in some states, of property acquired by husband and wife during marriage. Upon the death of one spouse, the survivor becomes the owner of the property.

Under which of the following events can there be an exception to the Connecticut fair housing laws:

The rental of units in a home intended to be occupied by no more than two families if the owner actually lives in one of the two units

Fred Thompson rents in apartment under a two year written lease. He has occupied the apartment for one full year and now the landlord is selling the apartment building to a new owner. As far as Thompson's lease is concerned:

The sale has no effect on Thompson's tenancy.

Deed restrictions are a means by which:

The seller can limit or control the buyer's use

Under Connecticut fair housing law the landlord can deny to rent to a tenant because of the following:

The tenant has insufficient legal funds.

A buyer and seller enter into a real estate sales contract. A clause in the contract states that time is of the essence. This means:

Time periods for contract terms will be strictly enforced

Title to real estate that is inherited from a person who died intestate is:

Title by descent

Separate property

Under community property law, property owned solely by either spouse before the marriage, acquired by gift or inheritance after the marriage, or purchased with separate funds after the marriage.

Hey void contract is one that:

Was never legally enforceable

A metes-and-bounds legal description:

must commence and finish at the same identifiable point

Community property rights

property owned by a husband and wife in two ways: separate property and community property. Separate is property owned before marriage and can be transferred without spouse permission. Community property acquired by one spouse during the marriage needs signature of spouse for transfer of title. Surviving spouse auto gets undivided one half of property.