CE Exam 1 part 2

Foreclosures

Bankruptcy can halt the foreclosure process Due to complexity, transfers take more time and work, raising closing costs

Waste disposal sites

Biggest concern is the emission of landfill gases into the air

Acknowledgment

Oath of a subscribing witness, such as a notary public

Contract

An agreement between competent legal parties to do or refrain from doing a legal act in exchange for consideration.

What's the Real Estate Education, Research and Recovery Fund fee for a Minnesota license renewal applicant?

$30

Minnesota recording fee

$46

Statute of limitations

A law that says that if legal remedy is sought against a person, the pursuer must bring a court action within a specified period of time.

Radon

A colorless, odorless, radioactive gas that exists in soil and enters a house through cracks in the floor joints, concrete, floor drains, wall joints, and porous walls

Unilatera

A contract in which consideration (such as a promise) is only given by one party to the other.

Voidable

A contract that is missing an essential element, and thus may be cancelled by one or more of the parties.

Enforceable

A contract that will stand up in court.

Void

A contract with no legal force or effect

Contract for deed

A contractual agreement in which the buyer pays the seller the purchase price over time in a series of installments until the contract has been paid in full.

Asbestos

A long, thin, fibrous silicate mineral with insulating properties, which can cause cancer when inhaled.

Bilateral

A mutual contract that involves an exchange of promises or other consideration between two parties.

Novation

A new agreement can be written between the original parties.

Assignment

A new party can take the place of one of the original parties to a contract.

Cynthia loves her apartment and would like to have the option to buy it once her lease is up. Who's the best person to help Cynthia prepare a lease option?

A real estate attorney

Abstract of title

A summary of all recorded documents affecting title to a given parcel of land

Septic systems

About 70% of Minnesotans rely on groundwater-sourced drinking water, making it especially important to properly design, install, and maintain septic systems

Which document is used to provide a summary of the title history?

Abstract title

Option agreemen

An offer to purchase a specific piece of real estate, but without the obligation to buy it.

Which of the following describes a modular home?

Built using precise pieces and very energy efficient

Wetlands

Certain activities on wetlands are regulated and require a permit because wetlands are protected

Buyer and lender

Close on the mortgage commitment

Agentʼs brokers

Close on their compensation agreement

Buyer and title representative

Close on their contract

Seller and buyer agents

Close on their cooperative brokerage agreement

Seller

Closes on the contract with the listing agent

Quiet title suit

Court-ordered hearings held to determine land ownership.

Clean Air Act

Curtailed CFC usage

Groundwater contamination

Decontamination is a difficult process; public water is regularly tested for contaminants

Minnesota Environmental Policy Act of 1973

Passed in an effort to contribute to the National Environmental Policy Act

Clean Water Act

Established quality standards for surface waters

Non-lawful possession after the expiration of a lease is called ______.

Estate at sufferance

Which of the following describes an estate for an unknown period of time, with either party permitted to terminate the lease by giving notice to the other?

Estate at will

Which of the following is true regarding express agreements?

Express agreements may be written or verbal.

What type of real estate agency relationship usually exists when a licensee has the broad responsibility of handling all of the details of a specific property?

General

Seller and buyer

Grantor and grantee

What problems can a VA loan pose in the approval process?

Prohibition against buyer-paid repairs

Lead

Homes built before 1978 may have lead in the paint

Which of the following is a possible title issue with a real estate owned transaction?

Internal audit delays

What effect does a pre-approval letter have on an offer?

It assures the seller that the buyer's financial information has been verified.

Underground storage tanks

Leaking tanks may contaminate the soil

To whom does the subprime market cater?

Less creditworthy borrowers

REOs

Liens or claims unknown to the lender may exist

Chain of title

Linkage of property ownership that connects the present owner to the original source of title

What must a licensee do when preparing a CMA (or opinion of price) for a consumer?

Make a statement that the opinion isn't an appraisal.

CERCLA

Makes landowners responsible for clean-up of environmental contamination

The MARIA acronym helps to identify the five tests of a fixture. Which of the following tests refers to how and whether the item is attached to the property?

Method of annexation

What is the key difference between assignment and novation of a contract?

Novation releases the original party from all obligations, while assignment does not.

Several actions take place on the secondary mortgage market. Which of these is a common activity?

Packaging loans into mortgage-backed securities

A loan that's offered based on a homeowner's equity in which funds are drawn over time and the bank gains corresponding property ownership is called a ______.

Reverse annuity mortgage

Marsha leases a ranch house in a bedroom community. When the owner decided to sell the house, Marsha was given the opportunity to purchase it but declined. What does Marsha have?

Right of first refusal

Which of these statements about the homeowner's right of redemption is true?

Rights of redemption window with REOs may have expired.

The ISTS Act of 1994

Set minimum standards for all new or replacement septic systems to help curb potential contamination

Ned represents Sofia in the sale of her townhome. Luciana represents Sofia's buyer, Arturo. What is Sofia's relationship to Luciana?

Sofia is Luciana's customer.

Mortgage registry tax (MRT)

Tax on amount borrowed

Deed tax

Tax on property's value (sales price)

Appurtenance

The inherent or automatic ownership rights that are the natural consequences of property ownership

Short Sales

Unrecorded liens, junior lenders who may not approve the short sale, lengthy approval process (of the lender), and a lender's change of heart in the amount of money it needs to receive from the sale

Performance of a contract

The parties honor their agreements, meeting all terms and conditions.

Quad City National Bank has several REO properties on its books. Why does the bank own these properties?

The properties went through the foreclosure process and didn't sell at auction.

What does the parol evidence rule say about contracts?

The terms agreed to in a written contract are the only terms relating to that contract.

What happens when your client asks you to do something that's against the law?

You must break your duty of obedience.

The Brownfields Law

rovides funds to clean up brownfields