Net Real Practice Exam 2
A woman dies intestate and she has no heirs. By what process with her property revert to the state
Escheat
A seller signed the contract with a broker indicating that she will pay the broker a 6% commission even if the homeowner sells the house to a coworker without any help from the broker. What type of listing agreement did the seller sign?
Exclusive right to sell
Which protected class was recognized with the passage of the 1988 fair housing amendments act?
Handicap
An offeror may withdraw his offer until
He is notified that the offer has been excepted
What is the purpose of borrower paid discount points
Lower the interest rate on the loan
What duty does a buyers agent breach when she appears to be advocating for the seller customer?
Loyalty
According to the fair housing act, which owner, if any, could refuse to rent to someone on the basis of race?
No one is exempt.
A valid lease requires all except
Security deposit- this is up to the landlord
A borrower has a stable monthly income of $4,100 and recurring monthly debts of $580. What is the maximum mortgage amount (PITI) he could get for a conventional loan?
$4,100 x 28%=$1,148
What is the primary purpose of a deed?
transfer of title
A buyer pays $38,500 for a property that measures 120' x 300'. What was the price per square footage
120x300=36,000/38,500=1.069 answer $1.07
A warehouse is valued at $120,000. The operating expense for the property are 45,000 and the net operating income is 15,000 what is the capitalization rate
15,000/120,000=12.50%
And income producing property generates 50,000 in gross annual income and has monthly expenses of 1500. Depreciation is 3.64% per year and annual debt services is 18,000. Using a capitalization rate of 9% calculate the value of the property
1500x12=18,000 50,000-18,000=32,000 32,000-18,000=14,000 14,000/.09=155,556
A woman who speaks with a strong accent called the number on the for rent sign on a large apartment building. The property manager tells her that the unit is rented but he has not had time to remove the sign. A week later, the woman sees at the sign is still up. Her coworker with no accent calls and is told the unit is available. If she chooses to file a civil lawsuit in federal court, claiming the property manager violated title eight of the civil rights act of 1968 she must do so within_______of the incident.
2 years
A licensee has the seller client and buyer in a transaction. The property sells for $236,400. The licensee involved in the transaction receives 40% of her broker's 7% commission? How much money does the licensee receive?
236,000x7%=16,548x40%=$6619.20
Of these, which is LEAST LIKELY to be considered an example of puffing?
3 car garage with room for a workshop!
Under terms of the equal credit opportunity act, how long after a borrower completes a loan application must the lender render a written explanation of their credit decision?
30 days
The sale of a property closing on May 10th. Taxes are 3600 per year and paid in arrears what is the sellers share of taxes based on a calendar year assuming it's not A Leap year
365/3600=9.863/130daysX9.863=$1282.19
On January 1, the homeowner spent $660 on three cords of firewood it was a mild winter so when he sold the house may 31st he had only used one cord. How might this be handled on a settlement statement
387 credit seller/ 387 debit buyer
A property owner donate a rectangular parcel of land to the Humane Society for a new animal shelter. The parcel has 420 front feet and is 500 feet deep. Approximately how many acres are there in the parcel?
420x500=210,000/43,560=4.82
How many acres are in a parcel described as the S 1/2 of SW 1/4 of NW 1/4 of section 21?
640/2/4/4=20 acres
A buyers offer of 452,000 to buy a house is excepted. She will be putting down 90,400 what is the loan to value of her mortgage loan?
90,400/452,000=20% 100%-20%=80% LTV
Which is least likely to be in example of a kickback under RESPA?
ABC Brokerage allows XYZ title to use it's downtown office to conduct closings as a convenience to downtown clients
What is the term that describes how title to land is gained by the open and notorious, hostile and adverse, exclusive and continuous use of another another's land for a designated period of time, as defined by laws of the state
Adverse possession
A property is listed for $200,000. The broker gets an offer from A for $150,000 cash with a closing in 90 days: one from B at $155,000, subject to the buyer getting a 1st mortgage for $130,000: an offer from C at $190,000 subject to the owner taking back a purchase money mortgage with closing in 30 days. The broker should disclose which offers?
All of the offers
A landlord received a request from a prospective tenant to install grab bars in the showers and a handrail by the toilet to assist her with her disability. What is the landlord required to do?
Allow the tenant to make the modification at her expense
A licensee is launching a new brokerage. He purchases a list of prospective clients and prepared to do his first mass email in an attempt to get some business in the door. To comply within the law, what must the licensee in his email solicitation?
An option to opt out of receiving future emails
Funding for FHA insured mortgage loans is provided by
Any qualified lending institution
A man buys a long vacant lot in a town planning to build a home. The zoning for the town indicates that every lot must be at least 80 feet wide. When the man apples for a building permit, he is surprised to learn that his lot is only 76 feet wide. the land is worthless to him if he cannot build a home so he applies to the local zoning board for a?
Area variance
A tenant has a one-year lease on an apartment. Three months in to the lease, she is deployed overseas in her job with the government. Since Liz does not forget it, he transferred her entire way to possess into a coworker for the reminder of the lease term. What does this Situation described?
Assignment
A broker tells a homeowner that an immigrant family will be moving into the neighborhood, and that the homeowner should list his house for sale before values start to drop. This is an example of?
Blockbusting
What is the tool that allows a seller to subsidize a buyers interest rate in the early years of a loan?
Buy down
During a listing interview, a seller demands that the listing agent reduce the proposed permission by one percent. What is the best course of action for the licensee?
Call the sponsoring broker and discuss the matter
An appraiser is tasked with deriving the value of a large custom home that was constructed nine months ago on a secluded 10 acre lot. Which approach could be considered the most reliable for valuation?
Cost approach
On a settlement statement, a new mortgage loan generally appears as a?
Credit to the buyer
What clause in a mortgage would permit the lender to call the outstanding balance due and payable should the property be sold by the borrower?
Defeasance clause
An important part of the relationship between a broker and an independent contractor license he is at the licensee?
Earns commission based on the results of his work or efforts
A Watermain burst in front of a house. City maintenance workers dig up part of the homeowners front yard without the homeowners permission to replace the pipe this is an example of
Easement in gross
The buyer wants to purchase a house for 221,000. The buyer includes a contingency clause in the office stating that she must sell her current house first. The seller agrees, as long as the buyer's house sells within 45 days. They sign the purchase agreement. During that 45 day period, the contract is?
Executors- signing a contract
Which form of real property ownership is the highest form of ownership?
FEE simple estate
A licensee manager six different properties the property management company. She is most likely what kind of agent?
General
What is the best way for a licensee to minimize the possibility of disagreement over fixtures that are part of a property transaction?
Include them in the listing agreement
Friable particles from Asbestos are most likely to be a danger to one's health when they are?
Inhaled
Siblings ABC co own a family farm. When A dies, A's son his named heir does not get any share of the farm. ABC most likely took ownership as?
Joint tenants- Passes to surviving owners
Which is not an example of the government police powers?
Levying property taxes
Of these, which would be considered VOLUNTARY, specific lien?
Mortgage lien - always voluntary
The lender in a mortgage arrangement is the?
Mortgagee
ABC industries wants to lease a warehouse in an industrial park. The property manager offers a rent of 2000 per month rent if ABC will pay for the maintenance and property insurance on the building, in addition to utilities. What type of lease is this?
Net lease
A homeowner meet with a licensee to discuss selling the home where she has lived for 30 years. She wants to purchase a condo in a new community and have enough to buy some new furniture without going into debt. She tells the agent she needs to make 215,000 on the sale. Anything he can go over and above the amount will be his to keep. This is an example of?
Net listing
In arrival to a listing appt with an elderly homeowner, the licensee realizes that the seller is not aware of the strong sellers market in that neighborhood. When the seller suggest a listing price way below the homes current value, the licensee makes a cash offer for the property on the spot, then sells the property for market value a week after closing. Which duty has the licensee breached?
No breach has occurred. This could fall under FRAUD OR MISREPRESENTATION
An appraisal is an _________________________
Opinion of value
In a real estate transaction, the principal would be best described as the?
Person represented by an agent
A man is preparing to build a pool and deck in his backyard. The contractor just delivered a load of lumber and concrete to his house, stacking it in the back yard in preparation for construction beginning next week. That lumber and concrete would be considered?
Personal property
A man buys 2 adjacent parcels of land for $30,000 each. An appraisal shows that his combined parcel is now worth $70,000. The increase in value is an example of?
Plottage- results in extra value
A and B are brokers from two different brokerage firms. They run into each other at a local coffee shop and start chatting about work. A tells B she's thinking about dropping her commission rate for 6% and suggest B do the same to be competitive. What type of violation Might the situation be considered if any?
Price fixing
The value of a rundown house in a good neighborhood benefits from the principle of
Progression
Of these, which would be an unenforceable deed restriction?
Property cannot be sold to a woman
A woman buys a house in March. Her mortgage is recorded April 1. In May, she hired a contractor to install the pool. The contractor does not pay it's subcontractor, who files a lien against the homeowner. She doesn't pay her property tax bill when it's due the next January and the county forecloses. In what order will the lien be paid from the proceeds of the sheriffs sale?
Property tax lien, mortgage lien, mechanics lien
ABC TOWERS is a cooperative with residential shareholders. A resident's interest in the property is evidenced by what document?
Proprietary lease
As a licensee walkswalk-through a home with a prospective seller client, he notices what appears to be termite damage. What should the licensee do to address this red flag?
Question the seller to learn what if anything the seller has done about the problem
What is a dual agent not allowed to share with his clients in a real estate transaction?
Recommend offer price- they need to remain neutral
The company builds a new warehouse on a 20 acre parcel of land it owns. It then sells the building to an investor, signing a lease to remain in the building as a tenant. What type of arrangement does this describe?
Sale and leaseback
In an attempt to avoid foreclosure, a homeowner asks his lender to accept a purchase price that is less than the amount owed on the property. This type of arrangement is a?
Short sale
Comp #3 has 5 bedrooms: the subject property has 4 bedrooms. Through matched pair analysis, the appraiser has determined that a bedroom in the neighborhood is worth $7500. What is the appropriate way to apply this info when performing the sales comparison approach to valuation?
Subtract $7500 from comp #3 value since it has more bedrooms
Before a listing agent brings an interested couple through the listed property, The seller tells the agent to keep the couple out of the master bedroom closet because there is a leak in the roof and they will surely see the water damage. The agent should?
Tell the buyers about the leak
After the tenant's one year lease expires, he remains in his apartment without new lease. He continues to pay the same rent every month. What does this situation represent?
Tenancy at will- they are willing to let the tenant stay
A licensee at ABC Realty brings in a listing agreement with a seller. What circumstance with NOT legally terminate the agency relationship between ABC in the seller?
The affiliated licensee who obtained the listing dies.
Which would least likely be considered a material fact that, if known, a real estate licensee must disclose to a prospective buyer?
The neighbors in the house across the street have a reputation for throwing loud parties.
Which statement describes the concept of hypothecation?
The pledge of property as collateral for a loan while continuing to possess it
A seller has a signed listing agreement with the Brokerage through the efforts of an associated sales person. Which event would NOT terminate the listing agreement?
The sales person transfers her license to a different brokerage
A real estate licensee is helping his clients sell a 1954 bungalow. Which is not required task in order to comply with EPA lead based paint regulation?
The seller must conduct lead tests and disclose the results to the buyer.
A typical monthly mortgage payment does not include payment for
Title insurance - this is paid at the closing
In arm's-length transaction means that the transaction occurred
Under typical conditions were each of the parties were acting in their own best interest
T is granted power of attorney to care for all aspects of her incapacitated brothers life. She maintains all of his finances, signs any legal papers, hires caregivers, and if he doesn't look well she takes him to the doctor., whether he wants to go or not. Which type of agency does this represent?
Universal agency=power of attorney
Which situation is least likely to be confidential?
Your buyers client's lease is up in one month and she is desperate to buy.
