REAL ESTATE QUIZ - TERMS
When are licensed Renewed?
Licenses are renewed every two years on even numbered years. License periods begin on 10/1 of even numbered years through 9/30 of even numbered years When renewing an active salesperson or broker license, a licensee must submit proof of completion of 15 hours of continuing education (CE) Renewal form must be submitted by August 31 but licensees have until September 30 to complete continuing education. If the renewal form is not received by the AREC by the August 31 deadline, the licensee is charged a $150 penalty fee. ALL licenses have to be renewed.....Active Licenses AND Inactive Licenses Licensees with active licenses must take continuing education in order to renew his/her license. Licensees with inactive licenses do not have to take continuing education when renewing his/her license A temporary license cannot be renewed, because a temporary license is only valid for one year
Qualifications for a license
Must be trustworthy and competent so as to safeguard the interests of the public Cannot have had a real estate license rejected or revoked in any state during the previous 2 years for any reason except failure to pass the state exam 19 years old or older Must be a United States citizen OR a person legally present with appropriate documentation OR an alien with permanent resident status Must be a high school graduate or equivalent by providing a photocopy of one of the following documents Must complete a 60 hour salesperson prelicense course within 1 year from the date of enrollment which includes passing the course final examination with a 70% or better Must pass Alabama salesperson's exam with a 70% or better.
Qualifications for a license - Reciprocal
Must complete a 6 hour reciprocal salesperson course or 6 hour reciprocal broker course depending on which license is currently held in another state. There is NO COURSE FINAL EXAM requirement. Must pass the Alabama reciprocal salesperson state exam or Alabama reciprocal broker state exam with a 70% or better. These applicants will only be required to take the 40 multiple choice questions on Alabama license law
REAL ESTATE SETTLEMENT AND PROCEDURE ACT (RESPA)
Prohibition against kickbacks and unearned fees Requires the lender to give the borrower a good faith estimate of the borrower's closing costs. Requires the lender to give the borrower a pamphlet called Homebuyer's Guide to Settlement Costs. Requires all lenders to use a uniform settlement statement at closing called the HUD 1 form HUD form 1 must be made available for borrower's inspection 24 hours before closing if requested
Criteria for AL broker to enter into a co-brokerage agreement with broker from another state
Written agreement between Alabama broker and nonresident broker specifying each parcel of property State in which nonresident broker is licensed must offer same privileges to AL licensees Alabama broker must file within 10 days with the commission a copy of written agreement Nonresident broker agrees to be abide by Alabama license laws Civil actions may be taken against him/her in Alabama court if a claim arises Alabama broker must require a listing or joint listing of property involved, and the agreement must include all terms of the agreement including the financial terms Alabama broker must supervise all showings and all negotiations related to the property Alabama broker's name must appear in all advertising for the property Alabama broker is liable for his/her own actions as well as the actions of the out-of-state broker Alabama broker must verify that the cooperating broker is licensed as a broker in another state All earnest money, pertaining to a co-brokerage agreement must be held in escrow by the AL brokerage unless all parties agree in writing to have the earnest money held elsewhere
The market value of a property is $65,000 and is assessed for 45% of its value. If the owner's semiannual tax bill was $511.88, what was the tax rate per $100?
$1,023.76
A space was leased for $1,200 per month. The owner pays a property manager 8% of the gross income as commission. How much does the owner pay the property manager annually?
$1,152
Ms. Seller agreed to pay a 6% commission to a brokerage company. At the closing table, she received a check for $94,500. What was the selling price of the property?
$100,531.91
A lender negotiated a $82,250 loan, which was 80% of the appraised value. What was the appraised value of the property?
$102,812.50
A property manager negotiated a 15-year graduated lease with the following terms. The lessee will pay $550 per month for the first five years, with a $50 a month increase every five years thereafter. If the property manager is paid a 6.75% commission, what will be the total commission paid at the end of the term?
$108,000 x 6.75% = $7,290
Mr. and Mrs. Seller want to net a 12% profit after paying the brokerage firm a 6.5% commission. If the original purchase price was $104,500, what is the minimum offer they can accept?
$125,176.47
A borrower obtains a $150,000 mortgage loan for 30 years at 5% interest. If the monthly payment is $700, what will the principal balance be after the borrower makes the first payment?
$150,00 - 75 = $149,925
If a lender agrees to make a loan based on an 80% LVT, what is the amount of the loan if the property appraises for $150,000 and the sales price is $155,000?
$150,000 x 80% = $120,000
What would be the value of a property producing an income of $15,250 per year and a rate of return of 9%?
$169,444
The sales price of a property was $200,000. The property appraised for $195,500. The buyer obtained a 90% loan for 30 years at 5.5% interest. If the monthly payment is $920, what would the principal balance after the first payment is made?
$175,950.00 - 113.56 = $175,836.44
If the market value of a property is $169,000, it is assessed at 35%, and the tax rate is $4.25 per $100, what are the monthly property taxes?
$209.49
A property is being appraised. It has experienced about 30% depreciation. The original value of the improvements was $350,000 and the land is valued at $70,000. What is the current value of the property?
$315,000
Five apartments rent for $550 per month and five others for $600 per month. There is an 8% vacancy rate and monthly expenses of $250. If a buyer wants to yield an 8% return, what should he pay for the property?
$46,950
The appraised value of a property is $52,350. It is assessed at 38% of the appraised value and the tax rate is 95 mills. What are the quarterly property taxes?
$472.46
A tenant rented a 20' X 25' office space for $10.25 per square foot annually. If a property manager is paid 7.5% of the rent collected, what is her quarterly income?
$5,125 x 7.5% = $384.38 $384.38 / 4 = $96.09
A broker and a sales associate split commissions on a 60/40 basis. If the broker's share of the commission was $3,570 and the sale price was $85,000, what was the commission rate?
$5,950
The XYZ store leased a space in the mall with the following agreement: $575 fixed monthly rent, plus a 5.25% commission on all sales over $225,000. The gross sales were $389,250 for the year. What was the total rent paid by XYZ store?
$6,900 + 8,623 = $15,523
Mr. Seller wants to net a profit of $20,000 and agrees to pay a 7% commission. He also has selling expenses of $550 and a mortgage of $35,250. What is the minimum offer he could accept on the property?
$60,000
If the gross rent multiplier of a property is 112 and the rent is $600 monthly, what is the value of the property?
$67,200
The buyers secured an $82,000 loan at 9.25% for 30 years. Their monthly payment is $674.59. How much of their first payment will be applied to the principal balance?
$674.29 - 632.08 = $42.51
The KLM store leased a space in the mall with a percentage lease and agreed to pay $425 monthly fixed rent and 6% on all sales over $175,000. This year, the total rent paid was $9,321. What were the gross sales?
$70,350 + 175,000 = $245,350
Mr. and Mrs. Buyer applied for a VA loan to purchase a property for $79,000. They agreed to pay a 1% loan origination fee. How much did they pay in origination fees?
$790
This month's interest payment is $585.70. If the buyer secured a 90% loan at an 8.75% annual rate of interest, what was the sale price?
$80,324.57 / 90% = $89,249.52
The listing price of a property was $135,000. The buyer made an offer of 90% of the listing price, which was accepted by the sellers. The property appraised for $135,000 and the buyers secured an 85% loan at 9% interest for 30 years. How much interest will be paid in the first payment?
$9,294.75 / 12 = $774.56
Property managers are usually considered
(A) special agents. (B) general agents. (C) universal agents. (D) contractual agents.
Continuing Education
* 15 hours of continuing education *3 hours must be a level one course titled Risk Management - Avoiding Violations *3 hours must be a level two course. o Qualifying brokers and associate brokers must take Risk Management for Brokers and o Salespersons must take either Risk Management for Brokers or Risk Management for Salespersons. * 9 hours of electives. **Post license course counts as CE for a licensee's first renewal
Qualifications of Consumer Comissioner?
1) At least 21 years old. 2) Registered voter in Alabama. 3) No felonies. 4) Owner of Real Property. 5) NOT have been a sales person / broker in previous 10 years. 6) Not be related or employed by a real estate licensee. 7) Alabama Resident at least 10 years.
Activities that require a real estate license?
1) Sell, exchange, purchase, rent or lease real estate belonging to someone other than the owner, him/herself, his/her spouse, child or parent, 2) Negotiate for any of the above functions. 3)List or offer to list real property for any of the above functions. 4) Auction real property(Auctioneer must be licensed) 5) Buy, sell or deal in options on real estate. 6) Aid in locating or obtaining real estate for above functions. 7) Procure prospects for effecting the sale, exchange, lease or rental of real estate. 8) Procure properties for effecting the sale, exchange, lease or rental of real estate. 9) Present oneself as being able to perform ac act for which a license is required.
It takes 8 points to change an interest rate by 1% So 1 point =
1/8% or .125%
How long can commissioners serve?
2 consecutive terms of 5 years each. If successor has not been appointed and confirmed prior to outgoing commissioner's 2nd term, they can continue to serve until new commissioner is appointed and confirmed
A two-story house measures 25' x 50'. A one story family room was added that measures 20' x 20'. What is the square footage of this house?
2500 + 400 = 2,900 sq ft
To secure a $100,000 loan, the buyer paid $3,000 in discount points and the seller paid $2,000 in discount points. How many points were charged?
5% = 5 points
A buyer purchased a property that is one mile square and another that measures 511.23' x 511.23'. At a cost of $2,000 an acre, how much did she pay for the property? 1 square mile = 640 acres 511.23 X 511.23 = 261,356.11 sq ft 43,560 sq ft = 1 acre 261,356.11 sq ft ÷ 43,560 sq ft = 5.999 acres
645.999 acres X $2,000 per acre = $1,291,999
What is the rate of interest if the mortgagor makes quarterly interest payments of $1,340.63 on a $65,000 loan?
8.25%
What is the makeup of the AREC - Alabama Real Estate C ommission?
9 Commissioners - 7 commissioners from each of the 7 congressional districts, 1 black commissioner, and 1 Consumer Commissioner
After passing state exam, how long does applicant have to mail application for temporary salesperson's license? and, decide whether they want the Temporary License to be issued on an "Active" or "Inactive" Status.
90 Days
A broker sold a property for $250,000. She was paid 6% on the first $100,000, 5% on the next $100,000 and 4% on the balance. How much was the broker paid?
A. $6,000 B. $5,000 C. $13,000 D. $24,000
An agent was paid $2,625, which was half of the 7% that the broker collected. What was the sale price of the property?
A. $71,248 B. $35,714 C. $35,417 D. $71,428
One discount point costs the borrower 1% of the loan amount, and increases the lender's yield by 1/8th of one percent, so it takes _______ discount points to lower the interest rate by 1%.
A. 1 B. 8 C. 10 D. 5
Amanda borrowed $80,000 to purchase a home. The sales price was $100,000 and the appraised value was $110,000. In this case, the loan to value ratio is ________.
A. 100% B. 90% C. 80% D. 70%
Bart is buying a 1955 home and has been presented with the EPA pamphlet on lead. He now has __________ to conduct a paint inspection or risk assessment for lead-based paint or hazards.
A. 30 days B. 2 weeks C. 10 days D. 24 hours
Andy's client is selling a ranch that is one square mile in size. This means the client's ranch is __________ acres.
A. 320 B. 1,040 C. 500 D. 640
Sam is selling his one hundred year old family home. Before ratification of the contract, Sam must present the buyer with ________.
A. A HUD-1 form B. An EPA approved information pamphlet C. Warning statement of Radon D. The keys to all doors in the house
Maddie is a seller client who would like to have her home appraised before she puts it on the market, just so that she will have an idea of the amount lenders will finance for potential buyers. This value must be determined by _________.
A. A bank officer B. A real estate broker C. A home inspector D. A licensed appraiser
Mandy has applied for a loan. The lender uses automated underwriting to review her information. This means the lending decision is based on ____________ recommendation.
A. A computer program's B. A financial analyst's C. Her personal banker's D. An underwriter's
Betty made a full price offer on a home that included a strong home sale contingency. The seller made a counter offer, lowering the price, but without the home sale contingency. Betty accepted by signing the contract and initialing the changes. In this case we have _________.
A. A counter offer to a counter offer B. A binding contract C. A counter offer rejected D. No recourse for any additional changes
David is the buyer and Holly is the seller. They have agreed to and signed a binding contract. David has a home inspection and wants Holly to pay for the necessary repairs noted in the inspection report. In this case, David's agent will have to write __________.
A. A new contract B. An addendum C. A counteroffer D. A new offer
Sarah has made a full price offer on a home. The seller has accepted. They both sign the purchase contract and the transaction closes smoothly. This is an example of ___________.
A. A valid contract B. A void contract C. A voidable contract D. A licensee's dream
If there is a cloud on a chain of title, this means there is some kind of irregularity in the chain of title on real estate that should be of concern to any reasonable person before _________.
A. Accepting a conveyance of title B. Making an offer on the property C. Hiring a title company D. Scheduling an appraisal
Lindee's seller client has asked her to screen potential buyers so that the buyer will "fit" in the neighborhood. Translation: the neighborhood is Hispanic and the seller wants a Hispanic buyer. Lindee must __________.
A. Act in accordance with the clients instructions B. Not screen buyers based on race C. Just make sure Hispanic buyers have an edge D. Require her client to read The Fair Housing Act in detail
Lonnie has a tenant who will not pay his rent. This is a breach of their rental agreement contract and as the landlord, Lonnie can sue for possession which would result in _________.
A. Actual eviction B. Lonnie owning all the tenant's stuff C. Lonnie living with the tenant D. The tenant paying past due rent
Mandy's home is ready to go on the market. She has decided to sell "as is". This means that while there is physical deterioration, Mandy will ________.
A. Add money to the price B. Cure it C. Not cure it D. Consider it incurable
Amanda made payment on her property regularly for five years. Then she lost her job and stopped making payments for three months. The owner just evicted her and she lost everything. Amanda was party to a _______.
A. Adjustable mortgage B. Purchase money mortgage C. Land contract D. Mortgage fraud
Corporations are legal entities viewed by the law as an artificial person. They are managed and operated by a board of directors. If a corporation pays its taxes on profits separate from its owners, the corporation is _______.
A. An "S" corporation B. A "C" corporation C. Acting illegally D. Operating in a grey area of the law
Don has been given unlimited power of attorney to act for his principal in all of the principal's affairs. This means that Don has the same authority as __________.
A. An attorney B. The courts C. The broker D. The principal
Fred is the owner (lessor) of an apartment building. He provides the tenants (lessees) with a covenant of quiet enjoyment. This means no one will disturb the tenants __________.
A. And the landlord will never enter the premises B. And the neighbors must keep their dogs quiet C. And the neighbors cannot have noisy parties D. In their use and enjoyment of the property
Regulation Z of the Truth in Lending Act (TILA) applies to the real estate industry. Regulation Z requires lenders to make a full disclosure of the interest rate for a borrower's loan by using the __________.
A. Annual Percentage Rate (APR) B. Monthly percentage rate (MPR) C. Adjustable Rate for balloon payment estimate D. Non-uniform approach
Recording fees or Transfer Tax Stamps are fees paid for recording the new owner's _________ when there is a mortgage.
A. Appraisal results B. Home inspection results C. Deed only D. Deed and mortgage
While the property owner, Sally (offeree), was considering a purchase offer, the buyer (offeror) decided to rescind/cancel the offer. What recourse does Sally have?
A. Ask her agent to keep the earnest money B. Sue for damages C. Sue for broken promise D. None
David leased his apartment for one year with a specific beginning and ending date. When the lease ended, David did not move out. The landlord has not forced the issue, so their relationship has changed from that of Estate for Years to an Estate ______.
A. At sufferance B. From period to period C. At will D. That has become freehold
Laura has been asked to measure the square footage of a rectangular home for her buyer client. To find the livable area square footage, Laura will take exterior measurements of all heated space and then multiply the __________.
A. Base times height B. Length times width C. Base times height divided by 2 D. Garage times the house
Sheri lives on a property as a life tenant. As long as Sheri is alive, she owns the property. When she dies, the property will _________.
A. Be sold at auction B. Go to Sheri's heirs C. Revert to the grantor or their heirs D. Become the property of the state
Jim has a right of first refusal to buy a piece of property if it comes up for sale. This is an example of a(n) _______ contract
A. Bilateral B. Implied C. Executed D. Unilateral
Nora is working with a buyer from China. She decides the buyer will be happier if they find a home in Chinatown. Nora is ___________ her client.
A. Block busting B. Spamming C. Steering D. Group boycotting
Sharon is a licensee who has noticed that the residents in one community are almost all Japanese. She decides to market her services to the owners by using the phrase "change is coming" with a photo of a black family. This could be interpreted as a scare tactic and as implying racial minorities are moving in— a tactic called panic peddling or __________.
A. Blockbusting B. Steering C. Price fixing D. Group boycotting
Borrowers pay back both principal and interest. The principal on the loan is the amount of money ___________.
A. Borrowed plus the interest B. Borrowed minus the interest C. Borrowed to purchase a property D. The borrower puts down as down payment
The legal rights that attach to the ownership of real property are referred to as ________ and they include the right to sell, lease, encumber, use, enjoy, exclude and devise by will.
A. Bundle sticks B. Reserved rights C. Bundle of rights D. Limited rights
Mandy is signing a__________ as an employment contract to hire an agent to provide personal services to help her find the best property for her new home.
A. Buyer agreement B. Listing agreement C. Sales agreement D. Purchase contract
Annie is a property manager for an owner who has three large apartment buildings. Annie and the owner have a ________ that spells out the nature of their agency relationship.
A. Buyer representation agreement B. Property management agreement C. Seller listing agreement D. Contract to purchase
Valerie is working with her seller client to arrive at a listing price for the property. Valerie will most likely prepare a(n) ________ for the seller to help them arrive at a reasonable listing price.
A. CMA B. MLS Listing description C. Appraisal D. Best offer scenario
Amy wants to make sure that her interest rate has a(n) _______ on it so that her mortgage payments will not become unaffordable for her.
A. Cap B. Index C. Margin D. Interval
When an owner finances the buyer of their property, this is called owner financing, and the mortgage held by the seller is called a ________.
A. Clear title mortgage B. Second mortgage C. Purchase-Money mortgage (PMM) D. Automated underwriting mortgage
Sally is the property owner and has found a buyer, Harry, who she really likes. Because Sally is quite wealthy, she decides to personally take payment for the property over time. This means the property will be owner-financed and also means Sally, the seller, must have__________.
A. Clear title with no loans B. Enough cash to buy it back C. Enough cash to fund the buyer for one year D. Only a small mortgage left
Nancy is a professional appraiser. In this role, she could be hired by a lender to provide an estimate of __________ on a property being purchased. Her opinion is used by the lender to determine the amount they will loan with the property as collateral.
A. Closing costs B. Market price C. Sale price D. Value
As a real estate professional, you must always operate in accordance with the federal fair housing law. This law makes discrimination based on race, color, sex, familial status, handicap, religion or national origin illegal in the sale or rental of most dwellings and any vacant land offered for __________. Remember that states, counties and cities can have additional protected classes.
A. Commercial use B. Commercial construction C. Residential construction or use D. Sale by owner with no agent
The __________ is a useful rule of thumb, for estimating market value of income producing residential properties. This is a rough estimate, not an appraisal method.
A. Comparable sales B. Replacement cost C. Gross rent multiplier D. Reproduction cost
It is a landlord's duty to maintain the property in compliance with state and federal law. The law requires the property to be habitable, so if the landlord refuses to fix the heating system in the winter, the tenant can sue for __________ and abandon the premises.
A. Construction eviction B. Actual eviction C. Damages D. Psychological damage
Amelia is working with a buyer client who is looking for ________ financing. This is a mortgage loan that is not insured or guaranteed by any government program.
A. Conventional B. FHA C. VA D. Unconventional
The value of a property producing an income of $15,250 per year and a rate of return of 9% would be $169,444. Which approach would the appraiser use to determine this value?
A. Cost B. Income C. Market data D. Summation
Sarah is an appraiser who has been asked to prepare an appraisal for a shopping center. She will most likely use the _______ approach
A. Cost B. Sales comparison C. BPO D. Income analysis
When screening tenants, property managers must pay close attention to the tenant's _________ to make sure the tenant can meet the lease requirements
A. Credit report B. Marital status C. Race D. Religion
Phoebe wants her buyer client to be well informed of the property's defects and of the current market conditions so the client can make an offer that is truly based on the property's ________.
A. Curb appeal B. Listing price C. Correct value D. Market value
Helen is borrowing money to buy her first home. She will need to sign a security or collateral instrument with the property as security for the debt in the event of default. In this case that would be either a mortgage or a(n) ________.
A. Deed of trust B. IOU C. Informal agreement D. Hold harmless clause
An agent's relationship with their broker is structured so that they perform as a __________.
A. Designated agent B. Universal agent C. Special agent D. General agent
William is a consumer selling his own home. He is not using any broker services. When William advertises in the local paper that his home is "for sale to a white, male buyer of the Jewish faith", the sale becomes ________.
A. Difficult to make B. A matter of personal choice C. William's business D. Subject to Fair Housing laws
Andy's seller client asks him not to disclose that the property has flooded five times during the past five years because the nearby creek overflows. The client has worked hard to repair all the damage and the flood damage does not show. In this case, Andy must __________.
A. Disclose the flooding B. Not disclose the flooding because Andy has a fiduciary duty to his client the seller C. Disclose to the lender only D. Disclose to the insurance agent only
Lila received a call from a buyer with a thick Indian accent asking about her new listing in an all-white community. Lila told the buyer the property was no longer available, although it is. This is blatant _________.
A. Discrimination B. Compliance C. Breach of phone etiquette D. Breach of confidentiality
Steve's seller client has asked Steve to keep confidential the fact that the property was inspected for lead paint and was found to be contaminated. While Steve owes the duty of confidentiality to his client, he _________.
A. Does not owe the buyer anything B. Cannot not disclose this fact C. Must disclose this fact D. Must keep this confidential
You are looking at a property with your seller client who is trying to decide on a listing price. While the seller loves the property and thinks it is worth large sums of money, you notice _________. This means something about the property is out of date.
A. Economic obsolescence B. Functional obsolescence C. The lawn needs mowing D. The fireplace has used brick
Ted owned a large property near the mouth of the river. He always meant to build on it, but never got around to it and the property turned into a noxious weed garden. When the government legally condemned the property and turned it into a park, they were operating under the right of __________.
A. Escheat B. Eminent domain C. Weed control D. Beautification
Carl is helping a client who is looking for a property to lease. The client would prefer to lease on a month to month basis. If the lease automatically renews, this is referred to as a(n)__________.
A. Estate at sufferance B. Estate for years C. Estate at will D. Periodic estate
Dan's buyer client is working with multiple brokers and Dan will only get paid if he locates the property the buyer ultimately buys. They have a(n) __________Buyer Agency Agreement
A. Exclusive B. Open C. Exclusive-Agency D. Non-existent
When a customer gushes, " I want you to do everything for me, and I will sign an agreement with you if you will, you are so smart!", this could create a(n) __________contract
A. Executed B. Bilateral C. Expressed D. Enforceable
Dick and Jane have just closed on their new home. At this point, the sales contract becomes __________.
A. Executed B. Unilateral C. Bilateral D. Expressed
Sharon was just honorably discharged from the Navy after serving in the Gulf War for six months. This makes her eligible for a _________ loan.
A. FHA B. Conventional C. Government backed loan D. VA
Metes and bounds is a common method of land description by measurement of the physical boundaries of a parcel of land. Descriptions start and end at a well-marked place called the __________.
A. Finish line B. Metes C. Point of beginning D. Starting line
Radon in the soil can enter a home through cracks and openings in the foundation or be drawn in by exhaust systems and fans, a sump pump or come in through a basement drain. If it accumulates in large quantities in a house, radon can cause ______.
A. Fires B. Decay C. Cancer D. High interior winds
Carmen's brokerage charges a 7% brokerage fee to their clients. The brokerage fee will be __________ in all the brokerages in the area
A. Fixed B. The same C. Charged D. Negotiable
According to supply and demand, when there are a lot of ranch style homes on the market, the price of ranch style homes will _________.
A. Fluctuate B. Increase C. Be stable D. Decrease
Gloria (tenant) put down a large security deposit on her leased condominium. The landlord must hold the money during the lease, but can use the deposit when Gloria moves out___________.
A. For personal expenses B. If Gloria causes serious damage to the condo C. To update the condo D. For general maintenance
Kathy has just received a notice that she has been accepted by the Peace Corps. She would like to assign her condo to her friend Sally so that she can leave immediately. In this case, the new tenant would be _________.
A. Fully responsible for promises in the original lease B. Required to obtain the Kathy's permission for any changes C. Only responsible for some of the promises in the original lease D. Co-share the responsibility for the original lease with Kathy
Rachel's is working with a seller client whose home is in the flight path of the new airport. While in a quieter neighborhood the home would be worth more money, because of the noise levels the property is experiencing __________.
A. Functional obsolescence B. Economic obsolescence C. Physical deterioration D. Audio difficulties
With a Land Contract or Contract for Deed, the buyer gives the seller a down payment and makes monthly payments of principal and interest. The buyer also pays for the real estate taxes, insurance and repairs and upkeep of the property. The seller ___________.
A. Gets to keep the title until final payment B. Is called the vendee C. Cannot evict the buyer D. Must sign a mortgage document
Judy and Jim must sell their current home before they can purchase the new one they want. This is a common _________ in real estate transactions
A. Glitch B. Contingency C. Occurrence D. Request
Mike is your seller client and has a full price offer on his home. The buyer wants a home sale contingency because they must sell their current home to have the money for Mike's home. Mike wants to take their offer. Your best advice to Mike would be ________.
A. Go for it B. Increase the price C. Include a break clause D. Never take a home sale contingency
When a property value goes through depreciation, the value _________.
A. Goes down B. Goes up C. Stabilizes D. Fluctuates
Sheri is checking the county records for a legal description of the property her buyer client wants to purchase. She finds the lot and block number, the number of the subdivision plat, and the name of the county and state. Sheri is using the ________ system for identifying the property.
A. Government survey B. Metes and bounds C. Monument D. Recorded plat
Contracts that are often used in real estate to allow a tenant/buyer to pay the landlord/seller monthly rent with a portion applied to the purchase price or down payment on the property are referred to as _________ contracts
A. Ground lease B. Sale and leaseback C. Variable lease D. Lease purchase
Three brokers have lunch together. They agree that one will concentrate on the east side of town, another on the west and the third will concentrate on sales in the north. They also agree that they will not split commissions or cooperate with a fourth firm whose broker is not present. These are examples of monopolistic business practices called the allocation of markets and __________.
A. Group boycotting B. Price fixing C. Tie-in agreement D. Allocation of customers
One major difference between FHA and VA loans is that FHA loans are ________ by the federal government and VA loans are _______ by the federal government.
A. Guaranteed/insured B. Insured/guaranteed C. Encouraged/discouraged D. For homes built/for farms insured
Monica is a county tax collector and is threatening to put a lien on Harry's home because he has not paid his property taxes on time. If the lien is placed on the property, this means __________.
A. Harry must pay the taxes immediately B. The debt will be erased C. The county will have an interest in the property D. The debt will increase or decrease in accordance with the property value
Licensees dealing with counter offers must __________.
A. Have them notarized B. Tear up the original offer C. Remember to treat them as new offers D. Mark through the counter offer
Laura's seller client is so pleased with her work that he wants to increase her commission and pay her immediately, before closing. This is OK as long as Laura is paid through _________.
A. Her broker B. An escrow account C. She cannot accept commission prior to closing D. The buyer's broker
Carole has just gotten her home inspection report. The report says the property is unsafe because some of the support beams are weakened due to termite infestation. In this case Carole can void/rescind the contract because she had a ___________.
A. Home sale contingency B. Good home inspector C. Home inspection contingency D. Financing contingency
While the property manager is acting as the fiduciary of the owner to manage the property as the owner would, she also has a duty of ________ to the tenants.
A. Honesty and fair dealing B. Agency C. Loyalty D. Putting their interests first
Betty has promised to sell her home to her neighbor. The neighbor has agreed to buy it for the price Betty wants. This is an example of a(n) __________ contract
A. Implied B. Unilateral C. Executed D. Bilateral
Betty and her customer have looked at so many properties that they know exactly how long it takes for each one. Betty also has begun to make suggestions for properties based on her customer's likes and dislikes. When Betty starts negotiating with a seller on her buyer customer's behalf and the customer goes along with her, the relationship becomes one of ________.
A. Implied agency B.Contractual agency C. Universal agency D. General agency
Pat has given her landlord a substantial security deposit—one month's rent. This money will be held _________ to remedy tenant defaults for damage, for failure to pay rent or return keys at the end of tenancy, and/or to clean the dwelling if left in poor condition. Some states require the security deposit monies to be placed in an interest-bearing account in trust for the tenant
A. In the landlord's personal account B. In the office in a safe C. In the property manager's desk D. In trust for the tenant by the landlord
Anne's home is the largest and most expensive home in her area of modest homes. According to the theory of regression, the value of Anne's superior home will most likely _______ because it is located in a modest neighborhood.
A. Increase B. Decrease C. Be unaffected D. Remain stable
Making improvements to a home can add to the value, depending on the type of improvement. There is a point at which the property value cannot increase any more. At that point the law of ________ applies.
A. Increasing returns B. Diminishing returns C. Depreciation D. Appreciation
Your buyer client does not want to conduct a lead-based paint inspection or a risk assessment for lead even though the home he is purchasing was built in 1949. In this case the buyer may __________.
A. Inspect the property himself B. Waive the inspection opportunity C. Ask you, the agent, to inspect the property D. Ask the seller for a guarantee there is no lead
George has been asked to pay an attorney fee at closing. He has not hired a lawyer and does not understand the charge. His licensee explains that an attorney fee ___________.
A. Is a settlement cost B. Goes into a general attorney fund C. Pays for a lawyer to stand by in case needed D. Keeps the principals out of court
Libby has paid off her mortgage. Libby's home equity is now more than the amount she originally financed. How can this happen? Equity goes up over time as the property owner pays down the principal and/or the property __________.
A. Is sold B. Decreases in market value C. Is subject to a second mortgage D. Increases in market value
With ______ foreclosure there is no foreclosure sale. The lender requests the court to order the delinquent borrower to pay the debt within a specified period of time. When the borrower fails to do so, the lender takes possession of the property and cancels the debt.
A. Judicial B. Strict C. Non-judicial D. Deed in lieu
Darlene's real estate agent referred her to his brother-in-law's title company for services without disclosing that the title company belonged to his relative or that the brother-in-law paid the agent a fee for sending Darlene to the title company. The money from the brother-in-law to the agent is called a(n) __________.
A. Kickback B. Earned fee C. Referral fee D. Legal fee
________ is a naturally occurring colorless, odorless and radioactive gas present (in varying amounts) in soils and groundwater.
A. Lead B. Natural gas C. Methane D. Radon
Robert is working with his seller client, Darla, to help her get the best offer for her home. The property was built in 1960, so Darla must disclose to prospective buyers that the house might contain __________.
A. Lead-based paint B. Termite damage C. Major defects D. Rotting wood
Charlie is an investor. He likes to eat at Sandy's diner. When Sandy decides she does not have the money to continue running the diner, Charlie buys it and leases it back to Sandy. Charlie now owns the diner as the landlord, but Sandy has gone from owner to tenant. This arrangement is called _________.
A. Lease purchase B. Sale and leaseback C. Ground lease D. Variable lease
If you are looking at a property description and see the words "lis pendens", this means that _________.
A. Litigation is pending on the property B. The property owner is Latin C. There is no lien D. There was a lien but it no longer exists
Your seller client Cassie is selling her home after living in it for 20 years. She owes $100,000 and the market value is $300,000. In this case, Cassie has $200,000 in ________.
A. Loan balance without interest B. Equity C. Mortgage payments with interest D. Actual seller credits
Andy is a buyer client who wants his monthly loan payments to be as small as possible. To help with this, he should look at a __________ loan term
A. Long B. Short C. Medium D. Distressed
Carrie's interest rate on her mortgage loan starts out low and then changes based on an index. This means Carrie has a(n) ______ tied to an index such as the Prime rate.
A. Low interest rate for the term B. Fixed rate mortgage C. Adjustable rate mortgage (ARM) D. High interest rate for the term
Teresa is a property manager and one of her owner clients is questioning her about the large number of unrented units in his property. Teresa is explaining that there are a lot of like-kind properties available in the area. This means the supply is ______ and the demand is ___________.
A. Low/high B. Overpriced/underpriced C. Underpriced/overpriced D. High/low
Your buyer client, Jack, is looking at a retirement village in Arizona. Two identical homes are on the market, yet one is priced higher than the other. According to the theory of substitution, Jack will buy the __________.
A. Lower priced home B. Higher priced home C. Home with the biggest lot D. Home with the smallest lot
Your client Tom is looking for a commercial building to lease and would like a gross lease. This means the landlord would pay for the building's _________.
A. Maintenance only B. Property taxes only C. Property taxes, insurance and maintenance D. Insurance only
Amanda's seller client is preparing a Seller Property Condition Disclosure detailing all __________ relating to the property so that potential buyers can make an informed decision.
A. Major assets B. Move-in costs C. Large remodels D. Known defects
Tom has just bought a property. The only encumbrances are that the property is subject to zoning ordinances and an easement of record. This means the title Tom received is most likely__________.
A. Marketable B. Unmarketable C. Clouded D. Illegal
Phoebe is having a new home built and has a construction loan on the property. She can withdraw money on an as needed basis and these payments are called __________.
A. Mini loans B. Installment payments C. Draws D. Mechanic's liens
Angela and Tony are just out of high school and thinking about getting married. Her parents are pressuring them to buy the house next door. The parents have already made an offer in their names and put down the earnest money deposit without Angela and Tony's consent. In this case, if Angela and Tony change their minds about signing the contract, it could be voidable due to ________.
A. Misrepresentation B. Fraud C. Undue influence D. Mutual mistake
The Federal Housing Authority (FHA) was created during the depression to provide insurance for mortgage loans. It operates under the U.S. Dept. of Housing and Urban Development and its primary goal is to make home ownership obtainable for __________.
A. Moderate income Americans B. U.S. Investors C. Upper income Americans D. Middle class Americans
Bradley is a real estate licensee who has been asked by a lender to prepare a ________. This report is not particularly detailed although the lender can request the level of detail. The lender may only need to know that the property exists which would call for a drive by.
A. Mortgage loan B. CMA C. Appraisal D. BPO
One main reason lead is such a concern in housing is that it may cause a range of health problems in ________, including behavioral problems, learning disabilities, seizures and in extreme cases, death.
A. Native Americans B. Mature adults C. Seniors D. Young children
Owners who sell or buy property on rivers or lakes have different ownership rights relating to the water. If the property is on a river, the water rights are called ______ rights because the body of water is flowing.
A. Navigable B. Riparian C. Non-navigable D. River rights
Harry is a broker and Sally works in the brokerage. Harry often tells Sally what her work hours will be and how many meetings she must attend. Sally is a(n) ________.
A. New salesperson B. Independent contractor C. Associate broker D. Employee
Dana knows that contingencies protect the buyer because they make the contract legally voidable when they are not met. They can also reopen negotiations. As a seller agent, she advises her clients to compare offers for more than price and consider offers with ________.
A. No contingencies B. The most contingencies C. Only home sale contingencies D. Fewer contingencies
Will is working with a seller client who asks Will to screen buyers based on race. The seller only wants another Hispanic family to buy his home because the neighborhood is mostly Hispanic. Will should _________.
A. Obey this request B. Not obey this request C. Ask for clarification D. Look for Hispanic buyers
To be a comparable, a property must have sold within the past six months or at least have been on the market during the past six months, have sold in an arm's-length transaction and be similar to the subject property. A comparable cannot be __________.
A. Older than the subject property B. A bankruptcy or foreclosure sale C. Bigger than the subject property D. Located in a different area than the subject property
David is a broker who was hired to sell Nora's ranch. David finds a ready, willing and able buyer who makes a full price offer, but Nora decides she does not like the buyer and will not sell to him. Does Nora owe David a commission?
A. Only if the buyer is from a protected class B. No. The transaction has to close first C. No. Nora is the owner and what she says goes D. Yes. David has a contract to sell the property and he did what he was hired to do
Gerald put all of his savings into remodeling his home. He now has by far the most expensive home in the area. When the time to sell comes, Gerald could find that he has _________ his home.
A. Over improved B. Under improved C. Too many buyers for D. The perfect combination of price and location
Sandra has bought a vacation home in the mountains. She researched the area and found that a big ski resort will be built in the area in the next two years. One of the influences affecting Sandra's choice is _______.
A. Over improvement B. Competition C. Anticipation D. Under improvement
Betty's buyer client, Mary, is looking for a condominium. When Mary buys a condominium, her individual unit will be __________.
A. Owned as tenants in common B. Owned jointly by all of the condo owners C. Individually owned D. Part of a high rise building
Sheila has just come to the end of the term for her mortgage and made her last payment. The principal balance is $0. This means Sheila's loan was ______________.
A. Partially amortized B. Fully amortized C. In negative amortization D. Short term
Rebecca is a broker who owns her brokerage as a sole proprietorship. This means Rebecca ___________.
A. Pays no income tax B. Hires no employees C. Owns the business and is personally responsible for its debts D. Has no independent contractors working with her
Lee has a clothing store in a shopping mall. She pays the owner a base rent plus a percentage of any revenue earned. This is a lease commonly used for retail establishments and is called a __________.
A. Percentage lease B. Triple net lease C. Variable lease D. Ground lease
Susan and Marcia own their guest house property as joint tenants with the right of survivorship. This means they are co-owners and ___________.
A. Possess different parts of the property B. Own a divided interest C. Must have the same percentage of ownership D. Their heirs can inherit their share
Licensees must be careful not to violate the CAN-SPAM Act when they use ________ for advertising. This act is enforced by the FTC.
A. Post cards B. Billboards C. Cold calling D. Email
Dean's buyer client wants to change a binding contract--one that has already been accepted. The home inspector found that the chimney has a lot of creosote build up, and the chimney needs to be cleaned immediately. While this is not a deal breaker, the buyer would like for the seller to handle this now. Dean can address this for his client by__________.
A. Presenting the seller with an addendum B. Presenting the seller with a list of qualified chimney sweeps C. Taking the chimney cleaning out of his commission D. Asking the seller to clean the chimney
William is managing a large condominium rental complex for his owner/client. William is an excellent manager and practices __________ maintenance so that the owner and tenants are always happy with the cost of upkeep for the common areas as well as the physical condition of the building
A. Preventive B. As-needed C. Corrective D. Breakdown
Elizabeth is a tenant in a property managed by Jerry. When she calls and asks to have the hot water heater repaired because it has stopped working, Jerry would be required to have it fixed. This is part of __________ maintenance
A. Preventive B. Corrective C. Routine D. Water company rules
Carl is a developer who conditions all of his sales by insisting that the buyer promise to list the property with him when they resell the property. This illegal arrangement is called _________.
A. Price fixing B. A tie-in agreement C. Group boycotting D. Allocation of customers/market
Zoe is getting a budget loan , and her payments will cover __________.
A. Principal, interest, taxes and insurance B. Interest only C. Principal and interest only D. All her monthly bills
Which property management report would you look in to find a summary of the revenues, costs and expenses incurred during a fiscal quarter?
A. Profit and loss statement B. Budget comparison statement C. Income D. Expenses
Charlie's buyer client is wondering why the deed to his property should be recorded in the county public records. As his agent, Charlie explains that recording a deed in the public records gives constructive notice to ______ of who owns the property.
A. Prospective buyers B. The seller C. The world D. The real estate community
When loan officers at local banks, credit unions, savings and loans, etc. work with consumers to originate real estate loans, these people are working in the __________.
A. Real estate industry B. Secondary mortgage market C. Primary mortgage market D. Financing industry
Bob's lender is charging him a fee for doing the loan. This fee is called a ___________.
A. Recording fee B. Loan origination fee C. Attorney fee D. Appraisal fee
Sara has $100,000 left in mortgage payments on her $500,000 home. This means her home equity is $400,000. If Sara uses this equity as collateral for a loan, the loan could be used for __________.
A. Repairs only B. Any purpose C. Medical bills only D. College education only
Dan has been asked to help his seller client decide on a listing price for the property. Dan will most likely prepare a ___________.
A. Report that includes advice for lender financing B. Appraisal C. Report that includes a definite listing price D. Comparative market analysis
Ellen has advised her seller client that the buyer may decide to _________ any time before the seller sends them notice of acceptance
A. Rescind/cancel the offer B. Lower the offer C. Raise the offer D. Reject the offer
To be an effective property manager, Cherie has spent time studying the legal requirements of the Uniform Residential Landlord and Tenant Act (URLTA). This is a uniform act intended to provide consistency in regulating the relationship of landlord and tenant in__________.
A. Residential leases B. Commercial leases C. Industrial leases D. Oil leases
Bradley's contract with his seller client expired two weeks ago. When Bradley hears that the seller actually just sold the property to another client of Bradley's who saw the property when it was listed with Bradley, he knows he will still earn a commission because he has a _________.
A. Safety clause B. Friend as the buyer C. Lot of influence over the buyer D. Kick out clause
When working with a client who wants an option to buy a property, the one thing that you must be certain to include is the ________ once the option is exercised
A. Sales price B. Mortgage C. Client's use of the property D. Client's source of funding
Barney is an agent who has a buyer representation agreement with Teri, the buyer. His commission will be paid by the seller, Sam. This means that Barney must be loyal to __________.
A. Sam B. Neither principal C. Teri D. Teri and Sam
If Sam leaves his estate to his daughter Jane as a life estate and then leaves the estate to his friend Amelia after Jane dies, Amelia has a future interest in the estate and would be referred to legally as the __________.
A. Second choice B. Friend of the court C. Heir apparent D. Remainderman
Sheri and Jan are co-owners of a Bed and Breakfast. They would like to dissolve their concurrent ownership. One way to do this would be for one co-owner to buy out the other. Another possibility would be for them to __________.
A. Sell the property B. Each sell the property to the other C. Each buy a different share of the property D. Bring in an investor
Rebecca is your buyer client and is determined to live in a specific neighborhood near her favorite park. As her agent you know her area preference or ________.
A. Situs B. Immobility C. Uniqueness D. Appurtenance
Your buyer client, Mort, is in a binding contract to purchase Sarah's home. He has sold his home and is living in a hotel until closing. Sarah changes her mind and refuses to sell. This is a breach of contract and could lead to a lawsuit for __________.
A. Specific performance B. Damages against your brokerage C. Damages against Sarah's brokerage D. Return of earnest money
If the foreclosure sale does not produce enough cash to pay all the lien holders in full, lien holders can sue for the unpaid balance in some states. They can get a ______ against the former owner
A. Start payment order B. Stop payment order C. Deficiency judgment D. Bankruptcy claim
Shirley's deed of trust has a power of sale clause which gives a trustee the right to sell the home if she fails to make payments. Shirley lives in a _________ state.
A. Strict B. Judicial foreclosure C. Non-judicial foreclosure D. Deed in lieu
Penny and her lender have come to an agreement. She will give the lender the deed to the property and the lender has agreed not to foreclose. This is an alternative to foreclosure known as __________.
A. Strict B. Non-judicial C. Unfriendly D. Deed in lieu
Carrie is working with a first-time buyer. The buyer has settled on a small home in an area of larger, more expensive homes. According to the theory of ____________ the property could be subject to an increase in value.
A. Substitution B. Increasing returns C. Progression D. Regression
John is an appraiser who has been asked to prepare a report for his investor client. The investor is considering an apartment building and would like the report based on the capitalization of net operating income from the property at an acceptable market rate. John will use the _______ approach
A. Summation B. Market data approach C. Cost D. Income
Carrie is leaving the firm she has worked for the past ten years and moving to a new firm. She has one contract she is still working on at this time. Carrie can _________.
A. Take the contract to her new broker B. Ask the client what they want C. Take the contract without asking the client D. Give the contract to her broker
Bill is paying points upfront on his mortgage payment to lower the ___________.
A. Taxes B. Principal C. Insurance D. Interest rate
Laura's seller client has agreed to all terms of the purchase contract except one, she will not include her grandmother's rug in the purchase as the buyer stipulated. Now Laura must _______.
A. Tear up the original contract and start over B. Have her seller sign anyway and tell the buyer about the rug C. Mark through the changes to make on the contract D. Ask an attorney to draft a new contract
Sarah is showing a cottage by the lake to a buyer client. The cottage just came on the market and is perfect, so perfect that Sarah decides she would like to buy it. Sarah knows this cottage will command full price. When Sarah's client asks her advice on what to offer, Sarah must ________.
A. Tell the client to lowball it so Sarah can come in higher B. Advise the client to go with their highest offer C. Think of a way to stall the offer D. Call the owner and tell them she will do better
Anna is a listing agent and has requested enough commission from her seller client to share with another licensee who brings a buyer to the table. Anna only shares the commission with the other licensee if _______.
A. The buyer and their agent have a contract B. The buyer is the licensee's customer C. The licensee and buyer submit the accepted offer D. The buyer's agent is negotiating the offer
While the FHA insures lenders against loss from buyer default and the VA guarantees local lenders will be protected from buyer default, conventional financing requires __________ to compensate lenders or investors for losses due to borrower default.
A. The court system B. Cash basis sales C. Title insurance D. Mortgage insurance
The common grounds in a condominium complex are owned jointly by ___________.
A. The developer and property manager B. All of the condo owners C. The city and the county D. The owners with the largest units
Carrie just inherited a beautiful lake property from her uncle. In this case, Carrie is _________.
A. The devisor B. The devisee C. A devise D. A decedent
Mary is a licensee representing a buyer client. When the client asks Mary about a Land Contract, Mary advises against it because the seller finances the property and retains title until ______.
A. The final payment is made B. Closing C. The buyer moves in D. The first payment is made
Patrick is a limited partner in a firm. As a limited partner, his liability to the business or its creditors is limited to the amount of money _________.
A. The firm has in escrow B. He has invested in the firm C. The general partners are liable for D. Needed for day to day operations
Zoe is a licensee who has just signed a new million dollar listing. This listing belongs to _________.
A. The licensee that brings in a buyer B. Zoe C. The brokerage that brings in a buyer D. Zoe's broker
Barry is in a wheelchair. He would like to add a ramp to the front door entrance to the apartment he is renting so that he can enter and leave without help. He is within his rights according to the Fair Housing Act to make this reasonable modification if _________.
A. The modification is donated B. He pays for the modification C. The landlord pays for the modification D. The government pays for the modification
Sam is representing the seller in a real estate transaction. This information should be disclosed to _________ involved in the transaction
A. The other agent B. The seller C. Everyone D. The buyer
Equitable title/interest means that a person has an interest in real estate that would be protected by __________.
A. The other party B. The courts C. Any licensee D. Any licensee's broker
Eve made a full price offer on a home with a home inspection contingency. There are a number of large repairs noted in the inspection report and she would like for the seller to make them. The seller refuses to do so. At this time, the contract is over and the buyer's earnest money goes to __________.
A. The seller B. The buyer C. The buyer's agent D. The seller's agent
Gary is a new owner and needs _________ insurance to protect him against loss in the event of a property ownership dispute. It is most frequently used for mortgages and policies are issued to both owners and lenders
A. Title B. Property C. Health D. Life
Zoning laws and building codes are types of public land use controls used to create _________.
A. To keep like kinds of properties together B. Problems for buyers C. Problems for sellers D. Orderly growth
Don does not want to spend a penny on his home. His wife, Daisy, keeps telling him how lovely the home would be with just a bit of updating in the baths and new paint. When Don and Daisy sell their home, they receive lots of potential buyer requests for updating the baths, painting and long lists of small problems to be fixed. In this case, the home is __________.
A. Under improved B. Over improved C. Not salable at all D. Salable at a high price
Bob is a broker who has been authorized by a listing contract to sell Angela's home. Notice that the broker is authorized by the contract. Contracts belong to the brokerage, not to the individual licensee. In this instance Bob is acting as a ________.
A. Universal agent B. Special agent C. General agent D. Designated agent
Amanda's uncle left her the farm. The only condition was that the farm always be an active farm. This means Amanda's estate is a qualified fee simple estate called __________.
A. Unqualified fee B. Fee simple conditional C. Fee simple absolute D. Fee simple determinable
Sharon's owner client has given her permission in the property management agreement to make expenditures or authorize repairs up to $10,000. Any expenses over that amount must be approved by the owner in writing. This part of their agreement is __________.
A. Unusual B. A show of distrust C. Standard D. A show of dishonesty
Stan is a drug dealer with lots of cash. He often buys property for the purpose of putting his money into a legitimate enterprise. If money laundering is the purpose of Stan's real estate transactions, the contracts would be ________.
A. Valid B. Void C. Enforceable D. A great source of commissions
Bart has made an offer on a home and the seller has accepted with one change, he will not replace the roof. This means _________.
A. We have a counter offer B. We have a contract C. There is a meeting of the minds, not the pocketbooks D. There is mutual assent
Bryan is a listing agent who has requested enough commission from his seller client to share it with the licensee who brings a ready, willing and able buyer to the table. In order to pay the commission, the relationship between this licensee and the buyer must be _______.
A. Whatever they decide B. Agent/principal C. Nonagent/consumer D. Agent/customer
Loan to Value Ratios are created by dividing the loan amount by ________.
A. Whichever is less, the sales price or the appraised value B. The sales price C. The appraised value D. The owner equity
Margaret is selling the mineral rights under her property to an oil company. If Margaret later decides to sell her home, the buyer _________.
A. Will not own the mineral rights B. Will get the mineral rights back C. Will be required to pay the oil company for mineral rights D. Will receive royalty checks
Joanie is a tenant in a commercial building. She has a double net lease. This means she must pay the ________ on the property
A. maintenance B. property taxes and building insurance C. percentage of any revenue she receives D. owner a kickback fee under the table
How does one become a commissioner in Alabama?
Appointed by governor. Confirmed by Senate
A property has sold and is due to close on March 25. There is a garage apartment on the property that rents for $450 per month. Rent is due at the first of the month, so the rent has already been paid for March. The buyer and seller agreed that the seller would get the rent for the day of closing. How would the rent be prorated at closing
Debit Seller $87.12
A property has been sold and is due to close on August 22. The annual property tax for the property is $1,536. What will be property tax proration at closing? (Assume that all months have 30 days and that tax year is 1/1 to 12/30.)
Debit Seller $989.72
When is a new Alabama real estate commission's chairperson elected?
Every time a new commissioner is added
Payment TO a licensee FROM companies such as title, mortgage, survey, inspection, carpet installers, pool contractors, landscapers, etc, are acceptable..T or F
False
When are Temporary License's Renewed?
Never! They are issued ONCE. They are Temporary
If the property is on a river, the water rights are called ______ rights because the body of water is flowing?
Riparian
Payment FROM a licensee TO anyone for referring (steering) a buyer or seller to a licensee is NOT Acceptable?
TRUE
How many commissioner's must be present to conduct business?
a Quorum - meaning 5 commissioners must be present
Bundle of Rights
bundle of rights are rights inherent in ownership of property. The bundle of rights includes the right to use, to sell, to mortgage, to lease, to enter, and to give away, or the right to refuse to exercise any of these rights.
AREC Mission?
protect public through licensing and regulating of real estate licensees