Real Estate Law Examination

Angelique, a foreign investor, is getting ready to sell her urban condo. What percentage of withholding of the sales price will FIRPTA require?

15%

Charging fees for unnecessary or non-existent loan products or services is a common predatory lending practice. Another is to charge interest rates greater than __ over the current market rate.

5%

Mr. Müller's primary residence is in Sussex County. He's owned the home since 1974. What percent of the home's assessed value will he be taxed on?

50%

Another name for a contract for a deed is ______.

A land contract

What is an annual percentage rate?

A standardized measure for interest rates and other costs of the loan

What's FIRPTA?

An act that applies to the sale of U.S. properties by non-U.S. citizens

Which of the following options describes a subordination agreement? An agreement between a contractor and any subcontractors An agreement between a landowner and a contractor An agreement between the court and landowner to decrease property taxes An agreement between two lien holders to modify the order of lien priority

An agreement between two lien holders to modify the order of lien priority

Who usually acts as a closing attorney?

An attorney who may or may not be the lender's attorney

Lorenzo just received a prestigious fellowship to study abroad for a year! However, he'd just signed a one-year lease on his apartment. With the landlord's permission, he substituted his sister's name on the lease, and Lorenzo's sister will pay rent directly to the landlord. Lorenzo may still be liable for the rent if she misses any payments. This is an example of ______.

Assignment

The __ enforces federal consumer financial protection laws.

CFPB

Delaware licensees must follow ____ stipulations when placing their advertising signage outdoors.

Clear zone

A trustee is holding title to Cassandra's house until the loan is paid in full. Which type of security instrument was used?

Deed of trust

What information does the Loan Estimate NOT provide to buyers under required disclosures law?

Final closing costs

Financial coaching is just one of the many programs offered for free by the __ to support and educate Delawareans about financial aspects regrading credit, housing, and taxes.

Financial coaching is just one of the many programs offered for free by the Delaware Community Reinvestment Action Council (DCRAC) to support and educate Delawareans about financial aspects regrading credit, housing, and taxes.

What is one of the many programs offered for free by the Delaware Community Reinvestment Action Council (DCRAC) to support and educate Delawareans about financial aspects regrading credit, housing, and taxes?

Foreclosure prevention

The __ applies to sale of U.S. properties by non-U.S. citizens. It requires a 15% withholding of the sales price at time of sale until applicable taxes are paid.

Foreign Investment in Real Property Tax Act (FIRPTA)

The __ applies to the sale of properties by non-U.S. citizens. It requires a 15% withholding of the sales price at the time of sale until applicable taxes are paid.

Foreign Investment in Real Property Tax Act (FIRPTA)

Which of these is an example of good consideration?

Gifting a house to a family member

In a North Dakota real estate contract, "time is of the essence" means that the parties agree to proceed ______ and not unduly delay the process.

In good faith

What's the purpose of the nondisturbance clause in a lease?

It assures the tenant they won't be evicted if they adhere to lease terms.

Which ownership type is defined by four unities: time, title, interest, and possession?

Joint tenancy

One common predatory lending practice is to charge fees for unnecessary or ______ loan products or services.

Non-existent

This commercial lease is a special lease agreement in which the landowner receives a cash payment for executing the lease, with more to come if drilling is successful.

Oil or gas lease

When a developer considers what to do with leftover pieces of land that remain after the subdivision is built, she is considering what to do with ______.

Outlots

__ are used most often with retail tenants. Tenants pays a percentage of their income realized from retail activities to offset lower rent.

Percentage leases

Because there were no deadlines specified in the contract, Myron didn't think there was a problem with his waiting to apply for a loan to help purchase the property. He was therefore a little surprised and not very happy when the seller sued him for breach of contract, stating that the delay was impacting the seller's ability to purchase a new home. What did Myron fail to do?

Perform his contractual obligations within a reasonable time.

What type of IRS deduction can be taken for a vacation home?

Property tax

Reina is a real estate salesperson in Delaware. The commission revoked her license after an investigation and hearing into her conduct. Which of the following is true?

Reina must stop practicing real estate for at least two years. After that, she can apply for a new license.

Liz is assisting a client who's looking for a commercial space to lease. Which of the following duties will Liz be expected to perform on her client's behalf?

Represent her client's interest in all negotiations and transactions regarding the lease of the property.

Which of these types of tenants most often uses a percentage lease? Manufacturing Residential Which of these types of tenants most often uses a percentage lease? Manufacturing Residential Retail Triple net Triple net

Retail

The right to access rivers, streams, and other flowing bodies of water adjacent to a property is called ______.

Riparian

Which of these terms is used to describe when a new occupant lives in a rental unit and pays rent to the previous tenant, who is still under contract with the landlord?

Sublease

__ taxes at 50% of a property's assessed value.

Sussex County

Which of the following is the sunshine law based on?

The Freedom of Information Act

If a party to a contract lacks legal capacity but enters into a contract anyway, which party may void the contract?

The party lacking legal capacity

In what way is a townhome similar to a condominium?

They both typically have HOA dues.

__ parties are involved when a deed of trust is used: the lender (beneficiary), the borrower (trustor), and a neutral third party (trustee). The trustee holds the title on loans when a deed of trust is used.

Three

What's the purpose of an assessor's parcel number?

To identify a property for tax purposes

What's the relationship between townships and sections in the rectangular government survey system?

Townships are divided into sections.

Blake is allowed to use his property in a way that's prohibited under current zoning ordinances, because those ordinances would cause undue hardship for him. What gives him this permission?

Use variance

A closing __ role is to coordinate all of the paperwork and funds to complete the transaction.

attorney's

Valuable consideration differs from "__" consideration, which may merely be consideration of affection, such as when a person gives a family house to her child, receiving love and goodwill in return.

good

If the party doesn't have __ and enters into a contract anyway, the contract is voidable by the party lacking legal capacity. So an adult can't hold a minor to a contract; however, the minor can hold the adult to the contract.

legal capacity

A __ doesn't have contractual ability due to not being of legal age.

minor

An oil or gas lease is a special lease agreement in which the landowner receives a cash payment for executing the lease. If drilling is successful, royalties are paid to the __ out of the profits.

owner

The __ is a detailed map of the given land, including streets, access roads, and measurements between features.

plat map

This is joint tenancy. Tenancy by the entirety requires a fifth unity (person). If one joint tenant dies, that tenant's interests go to the remaining joint tenants. If only one tenant is left, that tenant owns the property in __.

severalty

A __ agreement is an agreement between two lien holders to modify the order of lien priority.

subordination

The __, also known as the open meeting law, is based on the Freedom of Information Act. The sunshine law requires all meetings of zoning boards, planning boards, and local zoning authorities to be open to the public.

sunshine law

In an assignment, the new tenant becomes directly responsible to the landlord, but the previous __ may remain responsible to the landlord for unpaid rent or property damage unless the assignment specifically releases the previous tenant from responsibility.

tenant