Stimulated Real Estate Exam
Let's work the numbers
• $180,000 × .8= 144,000 actual loan amount • $144,000 /1000=144 • 6.5% intersects with 30 years at a factor of 6.32 • 144 × 6.32= $910.08
What you need to know
• $650/31 (days in January)= $20.9677 per day rent proration • $20.9677 × 18 days remaining (in January)= $377.42 credit to the buyer • $377.42 + $500 security deposit (non-prorated)= $877.42 credit to the buyer • Round answer to get $877 - Round down
What you need to know
• 640 acres in a section -640 acres divided by 4= 160 -160 divided by 4= 40 - 40 divided by 2= 20 acre 20 acres × $20,000 per acre=$400,000
What you need to know
• Act of 1865 covers race, color, ancestry -All properties, personal and real • Fair Housing does not apply to commercial property - Ancestry is not covered • ECOA -Equal Credit Opportunity Act
What you need to know
• Annual taxes are $4,950 • Let's get a daily amount 4950/365days= $13.5616 a day • Now let's count days from Jan 1st to April 10th= 100days = 265 days of credit • 265 days × $13.5616 a day = $3593.83
What you need to know
• By statute, all agents representing a party owe the same fiduciary duties • When the second agent took over, they too are presume to know all defects etc., that the first agent new and will be held just as liable
What you need to know
• Characteristics - Demand - Utility - Scarcity - Transferability
What you need to know
• Easement - The rights to use the land for a particular purpose • License - The revocable permission to use the land of another • Lien - A financial charge against the land •Appurtenant - Runs with the land While all liens are encumbrances, all encumbrances are not always liens.
What you need to know
• Economic/external (generally incurable) - Caused by factors not on subject property • Physical (curable) -Rountine maintenance • Physical (incurable) - Repairs to separate components which deteriorate at different rate •For example: roof, electric system - Cost more to repair than its pay back
What you need to know
• Eminent domain - The right of the government to take private property for public use • Condemnation - The act of the government taking private property for public use Right vs Act
What you need to know
• Expressed vs Implied ▪︎Implied- by your actions or conduct ▪︎Expressed- by written document OR verbal (expressed orally) • Remember, listing agreements longer than a year need to be in writing • This would actually be an open listing
what you need to know
• Freehold - Fee: I own it - Simple: Forever - Absolute: To use however I want - Conditional/determinable: "so long as" - Life Estate: Only so long as someone is alive - Freehold are estates of indefinite length NOTE: A buyer should expect a fee simple absolute when they get a general warranty deed
What you need to know
• Functional (curable) -Features of the structure are no longer desirable, but are replaceable •For example, outdated plumbing fixtures • Functional (incurable) -Undesirable features which cannot be easily replaced •Tandem bedrooms- may appear on exam
What you need to know
• Generally, the fewest number of adjustments are considered most comparable - Whether the adjustments are positive or negative is irrelevant
What you need to know
• Know the 4 types of listings - Exclusive right to sell - Exclusive agency - Open - Net
What you need to know
• Market value versus market price - Market value is an estimate of probable price on the date of the appraisal - Market price is what the property actually sells for
What you need to know
• Purchase price-down payment =loan amount • Loan amount / 1000= multiplier • Using an amortization chart, find the rate of interest and intersect it with life of loan • Multiplier × factor= P&I
What you need to know
• Remember there are 43,560 square feet in an acre • Multiply 400' × 800'= 320,000 square feet • Divide 320,000 by 43,560= 7.346 • Round up to 7.35
What you need to know
• Remember, the income in this case is the commission • Commission, divided by the sales price will = commission percentage • $9,093 /$129,900= .07
What you need to know
• Sales price divided by gross rent income= gross rent multiplier - 12,000 × 12= $144,000 • $1,200,000 divided by $144,000=8.33 • Other formulas - Gross rent income × multiplier= sales price OR - Sales price divided by multiplier =gross rents • Expenses are used in capitalization, not gross rent multiplier
What you need to know
• Since the first step in this appraisal of stating/identifying the problem was already given in the question- determining the market value of a single family home- the next step would be determine the scope of work • Reconcile data and report conclusions are the two final steps
A purchaser requests a general warranty deed as a condition of purchasing a property. The title the purchaser would most like are likely receive is: a. Conditional fee b. Fee simple absolute c. Life estates d. Quiet title
b. Fee simple absolute
A property owner gives a family member the right to reside in a property for the duration of the family member's life. When the family member dies, the property will go back to the property owner. This describes: a. Fee simple determinable b. Life estate with remainder interest c. Life estate with reversionary interest d. Life estate per autre vie
c. Life estate with reversionary interest
An appraiser is making adjustments of value for the differences between the subject property and the comparables. The appraiser would always: a. Make adjustments to the subject property b. Average the difference c. Make adjustments to the comparables d. Use current "for sale" properties for balance
c. Make adjustments to the comparables
Which of the following would constitute both a lien and encumbrance against a property? a. A restrictive covenants b. A lease providing the mineral rights to another c. Property taxes d. An easement
c. Property taxes
What you need to know
• Tenancy in common is co-ownership without the right of survivorship • Tenancy in common is the only form that can be held unequally. Thus, joint tenants must be equal in every respect • Tenancy in common is the form of co-ownership the law presumes • Joint tenancy is defined as co-owmership of real estate with the right of survivorship
What you need to know
• Tenants by the entireties -Husband and wife with right of survivorship • Tenants in common - The only form that can be held unequally • Joint Tenants - Must be equal with right of survivorship • Severalty -Ownership by one person or entity
What you need to know
• The broker is entitled to. the commission no matter who finds the buyer under an exclusive right to sell listing
What you need to know
• The lead-based paint disclosure is required for any residential property built before 1978, whether or not a problem exist • Only need to disclose radon, asbestos or buried storage tanks if you know or suspect their presence
What you need to know
• The listing salesperson is presumed to be representing the seller • Need to disclose to the buyer that you are the seller's agent • There is no dual agency, unless the buyer were to become a client Client versus Customer
What you need to know
• The property disclosure form requires that any repairs made within the past five years be disclosed, per Ohio Law • The seller fills out the property disclosure form, not the agent • Latent vs Patent - Must disclose known or suspected latent defects!
What you need to know
• The protected classes under the Fair Housing Act include race, religion, color, sex, national origin, handicap/disability, and familial status; not age - Exemptions to the Act •Private Club •Religious Organizations •FSBO •Rental of a room or unit in a dwelling/ less than 4 units NOTE: No transactions involving an agent is exempt!
What you need to know
• While a listing is void if either the seller or the broker dies, a sales contract survives the death of the parties • The executor of the seller's estate and the seller's heirs are bound by the contract • An ancillary trustee finishes up the business of a deceased broker, not a buyer or seller
What you need to know
• While all liens are encumbrances, all encumbrances are not always liens • Real property taxes are the highest, best lien -Always paid first • A lease is not a lien - It's an estate
What you need to know
•Amortized Loans -Repayment of debt in "equal" payments of principal and interest, rather than interest only payments • Straight Line Loan - Same amount paid each month toward the principal • Ballon - A loan with a final payment due that is considerably larger than the required periodic payment because the loan amount was not fully amortized • Adjustable rate - A loan that has a fluctuating interest rate
What you need to know
•By operation of law, if either the seller or the broker dies, the listing (employment agreement) contract is void
What you need to know
•FYI usually but not always, the first measurement of a lot is frontage • To calculate linear footage simply add the dimensions of the 3 sides to be fenced, or all 4 if question asks for all 4 sides • 180+200+180=560
What you need to know
•Formulas - Value × rate=income - Income divided by value= rate OR - Income divided by rate= value
What you need to know
•ORC 4735.18- All licensees must keep records on file for a minimum of three years •All pertinent forms need to be in transaction file
What you need to know
•Principal/client is who you work for •Customer is who you work with, but not for • Broker is the legal agent: salesperson is subagent • All listings belong to the broker
What you need to know
•Regulation Z of Truth in Lending Act deals with lending practices •RESPA- The Real Estate Settlement Procedures Act deals with the disclosure of the cost of buying and selling a home •The Sherman Antitrust Act deals with illegal price fixing, market fixing and group boycotting
What you need to know
•Reproduction - Using same material to remake the renovations • Replacement - Using different material from those existing in the house to replace an improvement
What you need to know
•Reversion -Goes back • Remainder - Goes on • Ordinary life estate - To you for your life • Pur autre vie - To you for the life of another NOTE: Remember, in a life estate, the measuring life is never changes!
What you need to know
•Under the Federal Fair Housing Act, there is no exempt status for a transaction involving an agent (whether they are selling their own property or someone else's. Only non-agents FSBOs are exempt) • Licensing laws require an agent to notify the Division within 15 days of a felony or fair housing conviction - Charge vs Conviction • Failure to notify is grounds for suspension in itself
What you need to know
•While you could disclose the seller's tax lien (as this is public record), you cannot disclose the seller's delinquent mortgage (as this is confidential) • Your fiduciary duty to the seller, not the buyer • You must obey all legal instructions of your principal
What you need to know
•You must present all bona fide offers, no exceptions - Verbal offers are bona fide offers •You may only inform a buyer of another outstanding offer if the seller allows it • Present all bona fide offers, regardless of when received and regardless of what order they were received in
What you need to know
•Your duty is to disclose is to your client •Since the buyer is only a customer, whatever they tell to you is not confidential and must be disclosed to the seller
Linda's taxes have been paid for a full year as of Jan 1st. She contracted to sell her home on Feb 5th. The closing is on April 10th. How much will be credited to Linda on the day of closing since she has already paid in full for the year, and her annual property taxes are $4,950? a. $3593.83 b. $2,515.34 c. $1,345.00 d. $1,412.60
a. $3593.83
Lender Larry is giving borrower Bill a 30 year fixed loan at 6.5%. Using the amortization chart, what will the P&I payment be if Bill purchases the property for $180,000 and paying 20% down? a. $910.08 b. $1,116 c. $1,000 d. $750
a. $910.08
A buyer purchases an investment property with a tenant living in it. The seller has a security deposit of $500 from the tenant and one month's rent in advance of $650. The transaction closed on January 13th (assume a 365 day calendar). What is the credit to the buyer or seller on the closing statement? a. A credit to the buyer of $877 b. A credit to the buyer of $377 c. A credit to the seller of $377 d. A credit to the seller of $877
a. A credit to the buyer of $877
What you need to know
Remember: Use net income •$125,000 × 5%= $6,250 (vacancy loss) • $125,000 - $6,250 - $8,750 = $110,000 (net income) • $110,000 divided by 11%= $1,000,000
A land owner owns fifty acres with a five acre lake centrally located on the land. When the owner sells off twenty acres which border the lake, it is stated that the owner retains a permanent right to access the lake for recreational purposes. This would best be accomplished through: a. An easement appurtenant b. A five-year lease, renewable at the seller's option c. A license d. A lien against the property
a. An easement appurtenant
A salesperson agrees to represent a prospective buyer in the search for a home. The buyer subsequently decides to rent a home instead of buying. If the salesperson is also representing another buyer/client who wants to see some of the homes that were shown to the previous buyer/client, the salesperson: a. Can show them the homes without regard to the previous buyer/client b. Cannot show them the homes without the permission of the previous buyer/client c. Can show them the homes, buy only as a disclosed dual agent d. Cannot show them the homes unless the sellers are informed of the conflict of interest
a. Can show them the homes without regard to the previous buyer/client
An appraiser has been hired to determine the market value of a single family home. What is the next step in the appraisal process? a. Determine the scope of work b. Reconcile data c. Identify the problem d. Determine highest and best use
a. Determine the scope of work
A salesperson is the subject of a complaint from the real estate regulatory agency. It is discovered that some forms consumers signed are not included in the office transaction file. The salesperson: a. Has violated the licensing law b. Has a reasonable time to produce the forms c. Is subject to local Board of Realtors sanctions d. Has not violated anything if the consumers kept their copies
a. Has violated the licensing law
What world or clause pledges property as security for a loan without giving up possession of it? a. Hypothecate b. Habendum Clause c. Defeasance Clause d. Collateral
a. Hypothecate
A property owner lists a property with a salesperson under a 90 day exclusive right to sell listing agreement. The next day, the owner discovers a family member wants to buy the property and sells it to the family member without the assistance of the broker. The broker: a. Is entitled to a commission b. Is not entitled to a commission c. May be entitled to a commission based on the carryover clause d. May bring an action with the local Board of Realtors to collect a commission
a. Is entitled to a commission
Which of the following is true about a purchase money mortgage? a. It is signed by the purchaser and given to the seller b. It includes the sale of personal property c. The seller retains legal title d. It must include a walenda line
a. It is signed by the purchaser and given to the seller
Federal regulations require many prospective purchasers and tenants to receive disclosure information about which environmental issue? a. Lead-based paint b. Radon c. Asbestos d. Buried storage tanks
a. Lead-based paint
An estimate of the probable price of property on the date of the appraisal is best termed: a. Market value b. Market price c. Highest and best use d. Current value
a. Market value
A salesperson is found guilty of a illegal discrimination in the rental of property the salesperson owns personally and markets separately from the brokerage company. The conviction: a. Must be reported to the real estate licensing agency b. Has no impact on the licensee's license since it did not involve the brokerage c. Has no impact on the licensee's license because it was personally owned real estate d. Is moot because of Mrs. Murphy regulations
a. Must be reported to the real estate licensing agency
A buyer is looking at homes with a salesperson. The buyer is being treated as a customer, a relationship that was disclosed to the buyer by the salesperson in the initial consultation. When making an offer on a property, the buyers disclose to the salesperson that they have been pre approved for a figure significantly higher than the offer they are making. The salesperson: a. Must disclose this information to the seller/client b. Must keep this information confidential c. Must ask the buyer for written permission to disclose the financial information d. Must simply comply with the guidelines for a disclosed dual agent
a. Must disclose this information to the seller/client
An unmarried couple elects to purchase a home together. If they provide no instructions as to how they wish to take title to the property, they will take title as: a. Tenants in common b. Joint Tenants c. Tenants by the entireties d. Joint tenants with the right if survivorship
a. Tenants in common
Which of the following would be an appropriate item to negotiate in a purchase agreement? a. The possession date b. The amount of the brokerage commission c. The extension of the lease of the tenant in possession d. The commission spit between broker and salesperson
a. The possession date
Which of the following is true regarding an open listing and an exclusive agency listing? a. Under both, the seller avoids paying the broker commission if the seller sells it himself b. Both deny a commission to any broker who procures a buyer for the seller's property c. Under both, the broker earns a commission regardless of who sells a property, as long as it is sold within the listing period d. Both grant the exclusive right to sell to whichever broker procures a buyer for the seller's property
a. Under both, the seller avoids paying the broker commission if the seller sells it himself
A salesperson has an exclusive right to sell listing on a residential property. One offer has already been received, but not yet presented, when another offer is submitted by a different purchaser. The salesperson's duty regarding the multiple offers is: a. With the seller's permission, disclose the existence of the multiple offers to the buyer b. Present the first offer first, then the second if the first was not accepted c. Present the offers together, but only in the order received d. Tell the second buyer of the first offer, regardless of the wishes of the seller
a. With the seller's permission, disclose the existence of the multiple offers to the buyer
A buyer agrees to purchase a home from a seller via land contract. The seller asks the listing agent if the listing agent could prepare the land contract document. To do so and the listing agent: a. Would be acting outside the scope of authority usually allowed a real estate licensee b. Would be okay, as long as legal representation was recommended to both parties c. Should start with a pre-prepared legal form and then make the appropriate adjustments d. May prepare the land contract
a. Would be acting outside the scope of authority usually allowed a real estate licensee
Chinese woman born in England wants to purchase an office building. The owner of fuses to sell to her. This violates: a. Fair Housing Act of 1968 b. Civil Rights Act of 1866 c. State Civil Rights Act d. ECOA
b. Civil Rights Act of 1866
A salesperson has a listing on a property. The seller has several mortgages on the property, all of which are delinquent, as well as an IRS tax lien. When a prospective purchaser makes an offer a, this seller insists on the earnest money deposit check being paid to the seller rather than deposited in the broker's trust account. The sales person has a duty to: a. Write a counter offer per the seller's instructions b. Inform the buyer of the seller's mortgage default c. Cancel the listing d. Observe the fiduciary responsibility of confidentiality to the buyer
a. Write a counter offer per the seller's instructions
The Smiths want to erect a fence around their property. Their neighbor next door opposed their fence at the zoning meeting and won. As a result they can all the fence 3 sides of their property. If their lot is 180' of frontage by 200' deep how many linear feet will they need a fencing? a. 720 b. 560 c. 400 d. 800
b. 560
A purchaser goes to a lender to apply for a mortgage loan. At the time of the application, Regulation Z of the Federal Truth in Lending Act would require the lender to give the purchaser: a. A loan commitment b. A Disclosure of the APR c. Closing Statement d. A copy of the home appraisal
b. A Disclosure of the APR
A salespersons calls friends whom the salespersons knows may be interested in selling their home. The homeowners agree on the telephone to allow the salesperson to show the home to out-of-town buyers who will visit the the city over the weekend. If the home is sold, the sellers agree to pay a four percent commission to the salesperson's brokerage company. The agreement is best described as: a. An implied agency relationship b. An expressed agency relationship c. A net listing d. An exclusive right of sale listing coupled compensation
b. An expressed agency relationship
A salesperson receives an offer on a listing. The sellers elect to issue a counter offer. Before the prospective purchaser responds to the counter offer, another offer is received from a different prospective purchaser. The second offer: a. Must wait for disposal of the counter offer b. Has equal status with the counter offer c. Must be handled before a decision is made on the counter d. Must stand in time sequence note: superlative words ("Must") are often wrong answers
b. Has equal status with the counter offer
A buyer makes a written offer on a home that is accepted by the seller, creating a contract. Later, the parties agree to change the closing date from the original agreement. To accomplish this, the licensee should: a. Prepare a new contract b. Have the parties modify the original agreement and have the parties sign the changes c. Initial the change for the buyer/seller d. Prepare an assignment or novation of contract
b. Have the parties modify the original agreement and have the parties sign the changes
A salesperson takes an exclusive right to sell listing on a residential property. After the property is under contract, but before closing, the owner of the property dies. The purchase contract: a. Is terminated by the seller's death b. Is binding on the seller's heirs c. Will be reviewed and its status determined by an ancillary trustee d. Remains in effect only against the buyer
b. Is binding on the seller's heirs
A property owner lists a property with a salesperson under an exclusive agency listing. The next day, the owner discovers a family member want to buy the property and the owner sells it to the family member without the assistance of the broker. The broker: a. Is entitled to a commission b. Is not entitled to a commission c. Is entitled to a fee based on the carryover clause d. Can file a commission compliant with the local board
b. Is not entitled to a commission
A prospective purchaser makes an offer on a property. The owners do not accept the offer but instead issue a written counter offer. What is the status of the original offer? a. Still binding on the buyer at the seller's option b. No longer exists due to the seller's counter offer c. Subject to the three day right of rescission d. May be reinstated by the salesperson
b. No longer exists due to the seller's counter offer
A salesperson have a listing on a property. The salesperson is going to show that property to a buyer/customer. The sales person must disclose: a. The dual agency to both parties b. To the buyer that the agent represents the seller c. To the soulard that the agent represents the buyer d. That the agent will act as a facilitator
b. To the buyer that the agent represents the seller
What was the percentage rate of commission in this sale if a property sold for $129,900 and the broker's portion of the sale was $9,093? a. 4.5% b. 6% c. 7% d. 10%
c. 7%
A building sells for $1,200,000 and produces a gross annual income of $12,000 monthly. Annual building expenses are $8,400. Calculate the gross annual rent multiplier. a. 100 b. 8.86 c. 8.33 d. 1.20
c. 8.33
Which of the following scenarios demonstrates an exception to the provisions of the Federal Fair Housing Law? a. A brokerage licensed as a property management firm investigates the familial status of prospective tenants b. An owner occupant of a duplex instructs the listing agent not to show the property to women c. A church lodge restricts lodge stays to members of the only church only d. The owner of a six-unit apartment building restricts occupancy to Caucasians only
c. A church lodge restricts lodge stays to members of the only church only
An note calls for level monthly payments for five years with a lump sum payment due at the end of five years. What type of loan is it? a. Straight Line b. Amortized c. Ballon d. Adjustable Rate
c. Ballon
A three bedroom home has one very large bedroom. The owner converts the large bedroom into two smaller bedrooms by building a wall down the middle. It is necessary to pass through one of the new bedrooms to get to the other. An appraiser appraising this home would make an adjustment of value based on what principle? a. Economic obsolescence b. Physical obsolescence c. Functional obsolescence d. Reconciliation
c. Functional obsolescence
An appraisal subject property has 2 comparables. House A has 2 positive differences totaling a $1,500 positive difference to the subject property. House B has one positive difference of $1,000 and no negative differences. Which is the best comparable? a. Neither, because you don't adjust comps, you adjust the subject b. House B because it has a $1,000 positive adjustment c. House B because it has only one adjustments d. House A because there are no negative differences
c. House B because it has only one adjustments
Two top salespersons have been competing a listing in the same farm area, frequently cutting commissions. They get together and agreed to charge the same fees so that neither one of them is hurt economically. This agreement: a. Is okay as long as both brokers agree b. Is a violation of Regulation Z of the Truth in Lending Act c. Is a violation of the Sherman Antitrust Act d. Is a violation of RESPA
c. Is a violation of the Sherman Antitrust Act
A salesperson list the property for sale. The sellers have had water in the basement previously within the past 2 years, but tell the salesperson they have recently corrected the problem and the basement no longer leaks. The seller did the work themselves and have no contractor's receipts or certification. The salesperson: a. Should not mention the previous condition to the buyers since it has been corrected b. Should recommend to the seller that they disclose, but that it's not mandatory they do so c. Should see that the previous condition is disclosed to prospective purchasers d. Ignore the issue- caveat emptor applies
c. Should see that the previous condition is disclosed to prospective purchasers
A salesperson receives an offer on a listing. The sellers accept the offer and the buyer proceeds to arrange financing. The day before a scheduled closing, the sellers indicated they have had a change of heart and will not close. a. The brokerage can bring can an action against the buyer for a commission b. The sellers are within their rights under the three day cooling off period dictated by Regulation Z c. The buyer could bring a legal action against the seller d. The brokerage can bring action for specific performance
c. The buyer could bring a legal action against the seller
A contract to purchase real estate calls for a closing date of August 1 and notes "time is of the essence." The buyer cannot close until August 5. Which of the following best describes the situation? a. The seller must give the buyer reasonable time to perform b. The buyer is entitled to a three day carry over by statute c. The contract is void after August 1 d. The contract is valid unless the seller objects in writing
c. The contract is void after August 1
When a salesperson takes a listing on a property on behalf of the broker, the seller is typically termed: a. The customer b. The subagent c. The principal d. The agent
c. The principal
Consideration in a purchase offer would best be defined as: a. The amount of earnest money b. The good faith deposit c. The purchase price d. The cash down payment
c. The purchase price
An offer which includes no earnest money is typically: a. Void b. Unenforceable c. Valid if accepted by the seller d. Void because it lacks consideration
c. Valid if accepted by the seller
A rental property could generate $125,000 in gross annual income. A vacancy factor of 5% is normal for the area and annual expenses for the building total $8,750. Calculate the value of the property using a capitalization rate of 11% a. $100,000 b. $1,056,800 c. $12,100 d. $1,000,000
d. $1,000,000
A property described as the N 1/2, NE 1/4, NE 1/4, of section 32 is listed for sale for $20,000 per acre. What is listing price? a. $640,000 b. $136,125 c. $1,600,000 d. $400,000
d. $400,000
Jan has been looking for land to build a new building for her veterinarian practice She needs between 5 and 10 acres. Jan located a property that is rectangular with measurements 400'x800'. How many acres are in this parcel? a. 10.4 acres b. 5 acres c. 8.5 acres d. 7.35 acres
d. 7.35 acres
A listing agent knows of a defect in the listed property. When the listing agent becomes ill another agent and the same company takes over the listing. The second agent: a. Is not responsible for disclosing the defect unless the agent had actual knowledge b. Must disclose disclose the defect only if asked c. Is relieved of any liability base on the fiduciary responsibility to the seller d. By law has the same responsibility regarding the defect as the listing agent whether or not the listing agent disclosed it to the second agent
d. By law has the same responsibility regarding the defect as the listing agent whether or not the listing agent disclosed it to the second agent
You own a property along a major street. The city has announced that it is widening the street and will take ten feet of your front yard for that purpose. The taking of your land by the city, with appropriate compensation is called: a. Eminent domain b. Foreclosure c. Involuntary seizure d. Condemnation
d. Condemnation
A salesperson takes a listing on a property. During the course of the listing, but before any offers are received, the seller dies. The listing: a. Is binding on the seller's heirs and assigns b. Continues until the contractual expiration date c. Continues with the approval of probate court d. Is terminated by the seller's death
d. Is terminated by the seller's death
An older property with plaster wall sustains significant damage in a fire. When renovations take place, plaster walls are replaced with drywall. This would be an example of: a. Duplication b. Reconstruction c. Reproduction d. Replacement
d. Replacement
Which of the following would be a characteristic of value? a. Obsolescence b. Depreciation c. Appreciation d. Utility
d. Utility