National Exam

Over how many years is a residential income-producing property depreciated?

27.5 years

one acre equals

43,560 square feet

What is the difference between a lease option and a lease purchase agreement?

A lease purchase agreement is a stand alone contract. Lease purchase agreements are stand alone contracts while lease options are a clause in a lease contract.

The town planning and zoning board is considering some new zoning regulations to ensure that one of the neighborhoods maintains its designation on the National Register of Historic places. What type of zoning are they likely to enact?

Aesthetic Zoning

What is a special flood hazard area?

An area where flood insurance is mandatory

In the sales comparison approach, using comparables that are five and 15 years old when appraising a subject that is 10 years old is an example of what?

Bracketing

Tenancy in Common

Co-ownership where each person is entitled to possession of the whole. An owner's ownership is inheritable and doesn't necessarily pass to the other owners

Joint Tenancy

Co-ownership where there is equal interest that requires unit of time, title, interest and possession. Includes the right of survivorship. Survivorship takes precedence over someone named in a will.

Living trusts

Created when property owner is still alive, often for the benefit of minor children. Living trusts avoid probate.

Mario lives in a state that requires an abstract of title for property conveyance. The chain of title is broken approximately 50 years prior to the current date. Which of these properly identifies the status of Mario's title?

Depending on his state's laws, Mario may have marketable title. If a link in the chain of title is broken, the attorney performing the search will branch out from public records to try and mend the link.

Gina is buying a home. Her home inspector performed a radon test and discovered a radon level of six picocuries. Which of these statements is true?

Gina and the seller can negotiate installation of a mitigation system

Several brokerages in a certain area agree to stop running advertisements in a local publication. What type of anti trust violation is this?

Group Boycotting

John and Jean are thinking of purchasing a site on which they'll build a new storage facility. What should they do to determine if the site contains any environmental hazards or contamination?

Have an environmental site assessment performed.

Tenants in Common

If the deed doesn't specify the tendency of co-owners. A debt of any owner can attach to the ownership interest of that owner.

illegal market allocation

Illegal market allocation involves an implied, oral, or written agreement between competing firms to allocate markets or customers.

Plottage

Increase in property value caused by the joining the f two neighboring parcels of land

Which of the following would NOT be reviewed in a drive-by BPO but is included in an interior BPO?

Interior property condition *BPO: Broker Price Opinions*

Steven owns 114 acres of wooded, rural land. The abundance of wildlife on his property means that his friends are always asking for permission to hunt on it during various game seasons. If Steven gives a friend permission to hunt on his land, it can be said that he has given his friend a ______.

License A license is permission to do something on another's land without actually possessing any interest or ownership in the land.

While hosting an open house, Liza speaks with prospective buyers. They're interested in the house, but think the listing price is a little high. They ask her what other incentives they could include in their offer to get the seller to come down on their price. If Liza helps them, what duty may she be breaching?

Loyalty

5 tests of a fixture

Method of annexation, Adaptability of an item, Relationship of the parties, Intention of item placement, Agreement of the parties

Tim and Tina Wells bought a home with absolutely beautiful perennial gardens in the back. The plantings were designed to bring birds, bees, and butterflies and to provide color for most of the year. When they did the final walkthrough, they were dismayed to see that many of the shrubs and flowering plants had been removed. They expected these plantings to be considered part of the real property because of the ________.

Method of annexation. The method of annexation—planting in the ground—implies that the plantings were expected to stay with the land.

What is the key differences between assignment and notation of a contract?

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

Estate In Severalty (Sole Ownership)

One person owns the property & all other interests are severed

Trustor

Person who creates a trust

Trustee

Person who manages the trust and makes sure the terms of the trust are carried out

Hal and Sara own a 212 acre farm. Their property is landlocked but they have permitted water rights to use the stream located six miles away for irrigation purposes. What kind of water rights do they have?

Prior Appropriation The doctrine of prior appropriation grants water rights based on need, not adjacency.

What can buyers do to protect themselves from title issues when purchasing property?

Purchase title insurance

The Telephone Consumer Protection Act is overseen by _______.

The Federal Communications Commission

Under which of the following circumstances would the client and agent most likely mutually agree to terminate a listing?

The agent and client don't agree on the best way to price, maintain and market the property

Liquidated Damages in real estate contracts is often limited to what?

The amount of earnest money paid. Most residential real estate contracts limit the amount of liquidated damages to the amount of the earnest money deposit.

Your clients closed on their property yesterday, but you still have some paperwork that you need to deliver to them as soon as possible. Under which fiduciary duty are you acting?

The duty of accounting. The duty of accounting may continue even after the transaction closes. The agent must account for any documents or money belonging to the client until it is delivered to the appropriate party.

Bonnie has a mortgage on her investment property, but allows the homeowners insurance to lapse. Which of these is a possible consequence of this action?

The lender can place Bonnie's loan in default

Which statement best describes a straight loan?

The payments change over the term of the loan, generally with higher payments at the beginning of the loan term.

Air Rights

They allow the owner to use the open space above buildings

statue of limitations

Time frame in which a party can file a lawsuit relative to the contract

In a real estate transaction in which you represent the seller, your duty to other parties is to ______.

Treat them honestly and fairly

As part of the sales contract, Garth, the seller, was supposed to provide a copy of the seller's disclosure to the buyer, Melanie, but he failed to do so. What type of contract is this?

Voidable A voidable contract can be cancelled by one or more parties because it's missing an essential element. In this situation, Melanie, the buyer, has the right to cancel the contract and have her earnest money refunded.

Testamentary Trust

created within a will and activated upon death of the grantor after will is probated.

Tenancy by the Entirety

form of joint tenancy ownership for husband and wife Includes survivorship rights.

Inverse Condemnation

occurs when a property's value is negatively affected by government regulation, but the owner is not offered just compensation according to the requirements of the Takings Clause.

beneficiary

the recipient of funds or other benefits