VA REAL ESTATE CLASS EXAM

Taxes of $1,200 were pre-paid for the year on January 1st. If the property was sold with a closing date of March 1st and the buyer was credited with the day of closing, what would be the tax proration?

$1,000

Salesperson broke law and broker didn't tell

Guilty knowledge

Which is usually closet to market value?

Purchase Price

A child owns a life estate and sells the property to a friend. which of the following statement is true regarding the friend's estate?

It ends when the child dies.

which of the following items would NOT be an appurtenance?

Reversion

listing ad

Name of Firm

which approach to value is best to use in estimating the value of a vacant lot

Sales comparison approach 0o

A broker has a property listed for $110,000. a buyer tells the listing broker the she would like to make an offer of $90,000. what should the listing broker do?

Tell the buyer that the broker will present the offer to the seller

a loan for which of the following transactions would be covered under Regulation Z?

a residential home purchased with a loan of $185,000

What is the best approach to use in figuring the value of a 15 year old residential property?

comparable sales of nearby properties that have sold recently

a salesperson has been accused of steering. which of the following would HUD LEAST consider?

considering that the salesperson thought he was doing what was in the buyer's best interest.

A buyer made an offer on a property a broker had listed. The broker presented the offer to the seller. while the seller was still considering the offer, the buyer contacted and informed the broker that the buyer wanted to withdraw the offer. the broker should:

continue to market the property for the seller

Time share

date gift was purchased

what is always true about a real estate commission?

it is always negotiable

Transfers brokers

must return license to board

an agency agreement can always be terminated by:

mutual agreements by all parties to the contract

a mortgage contingency usually includes all of the following items EXCEPT:

name of the lending institution

out of state firm has a branch if va

show residency

4 years inactive

take state licensing exam

Lead based paint disclosed

target housing

what is the purpose of a master plan?

to guide in the future development of cities

what is the purpose of a borrower paying private mortgage insurance (PMI)

to insure lender in case of default

a property had a list price of $164,000 an actual sale price of $158,000 and a $124,000 loan. if the transfer fee was $3 per $1000, what was the fee?

$474

A property with a value of $73,500 had a loan of $72,500. If the mill rate was 1 1/2, what were the monthly taxes?

$9.19

legal description that uses direction, distances, and monuments is called:

A metes and bounds description

Which of the following deeds would give the seller the LEAST amount of liability?

Quitclaim

A seller of a property could NOT transfer marketable unencumbered title. What should the broker do with any earnest money involved in the transaction?

Give it to the buyer

a property manager is compensated at 10% of the gross income. the total rents collected were $12,000 with expenses of $600 for utilities, $350 for insurance, $219 for repairs and maintenance, and $60 for advertising. what was the property manager's compensation?

$1,200

A buyer purchased a $100,000 home with an loan. there was a real estate commission of % and a loan origination fee of $100. the buyer's attorney charged $75 and the credit report was $35. If the loan discount points were 2% of the loan, what was the total of the buyer's closing costs?

$1,810

A commercial property with a net operating income of $18,500 was capitalized at 12%. What is the value?

$154,167

a property sold for $129,00 with the buyer putting 20% down. the lender changed 2 points and $750 closing costs. what was the total due from the buyer at closing?

$28,614

Purchaser of condominium rescind without penalty

10 days

Security deposit return

45 days after vacate the property

Escrow Account

5th business day receipt

Which of the following transactions should be governed by securities laws?

A broker selling shares in a Real Estate Investment Trust (REIT)

Condominium ownership would NOT be used on which of the following?

A cooperative apartment

Which of the following terms BEST describes the practice of encouraging owners to move from an area due to minorities moving in?

Blockbusting

Who does a salesperson owe loyalty to?

Broker

Fair Housing Complaint

Burden of proof is complaint

which of the following is NOT a leasehold estate?

Life Estate

An escrow or impound account for the lender is for holding

Pre-paid taxes and insurance

S owns a property and list the property for sale with a broker. the broker finds a buyer who makes an offer on the property. s is considered to be the:

offeree

a blanket mortgage usually contains which of the following clauses?

partial release

Transaction Recovery Fund

payment will never be made to daughter, filed complaint

a buyer purchases three properties. after the buyer combines all three properties, the entire parcel is now more valuable than before. this is called:

plottage

the right of the government to keep things in order and provide for the health, safety and welfare of the general public is called:

police power

A established family grocery store is in a area that has recently been zoned residential. if the grocery store was to be sold, what document would be needed to allow continued use of the grocery store?

pre-existing non-conforming use.

a written document that is used to promise repayment of a loan is called

promissory note

a person builds a building without a building permit. what is the worst thing that could happen in this situation?

the city would make the person tear the building down.

in a life estate situation. what happens to the ownership of the property when the life tenant dies?

the current title holder or heirs would get the property

the right of a person to regain title to property after paying all debts is known as:

redemption

why should a listing agent be aware of all ownership documents that will be used in a real estate transaction?

so the agent can know which documents the seller and buyer will have to sign to complete the transaction

Seller disclosure

prior to acceptance of sales contract

A contractor failed to pay sub-contractor for work performed on a property. what could the sub-contractor do?

File a mechanic's lien on the improved property

Consumate

This is permitted

A mortgage where the interest rate is subject to adjustments periodically is

Adjustable Rate

Institutional Franchise ad

Does not identify

Escrow Funds Withdrawn

Don't exceed 6 months

in order to estimate the value of the sellers home, which of the following would be BEST choice?

make adjustments to the comparable and then compare the sellers property

when a tenant pays taxes and insurance in addition to normal rent, this would be called a

net lease

under the federal fair housing law, which of the following would be illegal in advertising?

Adult building

A licensee discovers that a number of improvements on a property were built too close to the property line. The property is currently under contract to be sold. Which statement BEST describes what the agent should do?

Disclose to the buyer immediately

An owner listed a property with only a broker. After the sale, the broker was NOT due a commission. Which type of listing was MOST likely in effect?

Exclusive agency

listing contract with no termination

Improper Dealing

which valuation approach would be used on a 20 unit apartment building?

Income

An agent is working with a married couple in the purchase of a home. The couple ask the agent how they should take title to the property. The agent would say:

See an attorney

An agreement to waive priority is

Subordination

a commercial tenant leased a commercial space from a landlord. the tenant operated a grocery store on the premises. which of the following statments would be true if the landlord died?

The heirs have to honor the lease as it runs with the land

The main difference between a cooperative and condominium is that:

a condominium owner owns and finances their own unit

which of the following items refers to an expense deduction taken by real estate investors

depreciation

A property was assessed at 25% of the value with a tax rate of 8.42%. If the taxes totaled $800, what was the total value?

$38,004

under the Federal Fair Housing Law, which of the following items qualifies as a handicap?

A person with a mental or physical impairment that limits life activities

A buyer writes a contract with a contingency that says a certain thing does NOT happen, the buyer does NOT have to purchase the property contingency. Normally, any earnest money should be given the.

Buyer

If an owner tells a licensee not to show the property to minorities, which of the following statements BEST describes the obligations of the agent?

Inform the owner that the licensee cannot legally accept the listing.

the landlord gave written notice to the tenant to leave. the tenant, however remained in the property and continued to send rent payment to the landlord. The landlord refused to accept the rent checks. this situation would be described as a

Tenancy at sufferance

What is the main difference between a freehold estate and a non-freehold estate?

a freehold estate always involves ownership

a mortgage clause that states that the mortgage is due and payable upon certain conditions, such as non-payment is

acceleration

the payment on a graduated payment mortgage usually has gradual increases

and then levels out for the remainder of the term

a seller and buyer are awaiting closing on a real estate transaction. the listing agent learns that a zoning change has just taken place on the property. what should the listing agent do?

disclose this to all parties in the transaction

A property that has added value making it a better buy due to the benefit of an easement is called

dominant estate

a property was in an area with a lot of soot from nearby factories. it suffers from:

economic (external) obsolescence

an improvement which crosses over the property line without permission is

encroachment

what does an appraisal actually do?

estimate value

a salesperson who wants to obtain a listing with the best protection for the broker should ask for?

exclusive right to sell agreement

bought a house in an area that restricted fences. then bought a dog and began constructing a fence. what remedies do the neighbors have?

file a private suit in court

VA Fair Housing Law

file complaint 2 years

a contract with a seller is about to expire. a buyer who is interested in the property is not quite ready to make an offer. if the broker wants to be protected as far as earning commission if this buyer wants to purchase the property at a later date, the broker would need to do all of the following except

give a notice in writing to the buyers that the buyers are on a protective period list

a land contract is also referred to as

installment contract

a contract for deed can be best thought of as

installment sales contract

a veteran used his eligibility to obtain a VA loan in a purchase of a home. The veteran sold the property, paid off the VA loan, and had his eligibility restored. which of the following statements is true?

the veteran can use the VA eligibility to purchase another home as the previous VA loan had been paid off.

in doing a survey, monuments are sometimes used:

to legally describes a piece of real estate

A lender charging an interest rate that is higher than allowed by law would be violating?

usury laws

which of the following statements BEST describes the usual legal effect of a contract signed between an adult and a minor?

voidable by the minor

the principle of progression in the selling of a property would be best illustrated when the other homes in the neighborhood:

were nicer than the sold property

A salesperson is an employee of a broker, then the broker must:

withhold FICA and federal tax