PSI National real estate (often missed)

a township is divided into _______ sections of one square mile (640 acres) and run from the right to left, then left to right starting at section 1 at the northeast corner of the township and ending at section____ at the south east corner

36

1 mile is ______ feet

5,280 feet

Which of the following is NOT used by an appraiser applying the income approach to value? Annual Gross Income Capitalization Rate Annual Net Opportunity Income Accrued Depreciation

Accrued Depreciation Depreciation is one of the calculations used in the replacement (cost) approach and not in the income approach.

_____method measures distances, starting from the point of beginning, and following compass directions or angle to arrive back at the point of beginning. Monuments identify the POB and corners or places where the boundary line changes direction.

Metes and Bounds method

What listings allow a real estate agent to keep the difference between what the homeowner wants to sell the home for and the actual sales price. Unlike the exclusive right to sell listing where your commission rate is set, this listings can be a gamble for the agent. For example: Let's say you go into a listing with an agent, and both of you agree that you want to sell the house for at least $332,000. That would be the base price. Anything above that sales price the real estate agent gets to keep. If they sell the house for $372,000, then their commission would be $40,000. On the opposite end, if they sell the home for $334,000, their commission would only be $2,000.

Net Listing

A landlord may reject you for poor credit history, income that a reasonable businessperson would deem insufficient to pay the rent, negative references from a previous landlord or employer, a criminal conviction, or a prior eviction lawsuit (even one that you won).a landlord can refuse to rent to smokers or disallow pets because smokers (and pet owners) as a group are not protected by antidiscrimination laws.

what can a landlord ask from renters?

If you suspect mortgage lending discrimination, you can also file a complaint with the CFPB alleging violations of the federal Equal Credit Opportunity Act.

what evidence do you need to bring to court for a civil rights issue?

With a ______ loan the interest payment stays constant over the life of the loan.

fully amortized loan

an _____ may be required to create a reserve fund to ensure that future tax, property insurance, and other payments are made

impound (escrow) account

range lines run _______ parallel to and counted from the principal meridian, six miles apart.

north to south

a seller must disclose any latent defects they are aware of

seller

Within a real estate contract, a "time is of the essence" clause creates a __________ timeframe for the party to meet its obligations

specified timeframe

rows of townships are called_____ and columns of townships are called ______

tiers;ranges

All encumbrances and liens shown on the report of title, other than those waived or agreed to by the purchaser and listed in the contract, must be removed so that the title can be delivered free and clear. The removal of such encumbrances is typically the duty of?

-Removal of encumbrance is the (financial) responsibility of the seller.

Which of the following statements in an advertisement would be an example of a non-discriminatory language under HUD's Fair Housing Advertising Guidelines? 1. "female seeking female roommate" 2. "nice home ideal for any family with children 3. "apartment available, No pets of children allowed" 4. "located within walking distance to a great Catholic school"

1. "female seeking female roommate"

What is mutual assent. It is the time at which all parties acknowledge that they fully understand and agree to all of the terms of a contract 1. Meeting of the Minds 2. Agreement 3. Contingency 4. Sales disclosure

1. Meeting of the Minds

Market price is: 1. What the property sells for 2. The most probable price 3. The same as market value 4. The same as cost when used

1. What the property sells for

A motel is the subject of an appraisal and it is determined that a rerouting of a country highway has limited customer access to the motel. This is an example of: 1. economic obsolescence 2. regression 3. functional obsolescence 4. landlocked property

1. economic obsolescence

what method of describing real estate uses monuments? 1. Metes and Bounds 2. Rectangular survey 3. lot and block 4. township

1. metes and bounds

Quality Supermarkets has taken occupancy of a retail building and has a long term lease. As part of the their fit-up, they bolt to the floor their meat and dairy coolers, and shelves. When Quality Supermarket vacates the property at the end of the lease, will Quality Supermarkets be legally entitled to remove these fixtures? 1. no, because they are trade fixtures 2. yes, because they are appurtenances 3. no, because they are bolted to the floor 4. yes, if removed prior to the end of the lease

1. no, because they are trade fixtures

An owner signed a contract to sell an apartment building. Just before closing, the owner informed the buyers that she had changed her mind and would NOT sell the property. A lawsuit filed by the buyers would be for: 1. specific performance 2. lis pendens 3. quiet title action 4. a deficiency judgement

1. specific performance

A building was purchased for $350,000 with a 20% down payment, If the lender charged the buyer three discount points, how much will the buyer need to cover these two: 1. $61,600 2. $78,400 3. $80,500 4.$360,500

2. $78,400

Janet is the property for a 20 unit building. What steps would she take when asked to prorate the rent if a new tenant wants to move in on the 8th day of the month in June? 1. subtract 8 days from 365 to come up with the prorated rent per day 2. Divide the monthly rent by 30 days and multiply that number by 22 3. calculate the 22 day rental amount and add a prorated utility fee 4. advise the tenant that the first available move-in date is July 1

2. Divide the monthly rent by 30 days and multiply that number by 22

Martha was able to go to the closing and sign the paperwork to sell her mother's property while her mother was in the hospital. How could this be possible? 1. Martha may have been named an executor of her mother's will. 2. Her mother may have had a power of attorney drawn up making Martha her attorney in fact. 3. Martha and her mother may own the property as joint tenants, so that Martha may sign as owner 4. Martha's mother's surgeon recommended that this be permitted to alleviate her mother's stress and regarding this pending transaction

2. Her mother may have had a power of attorney drawn up making Martha her attorney in fact.

if a client signs an exclusive right to sell agreement and the agent brings a customer offering below the asking price. what is the client obligated to do? 1. Agree to the offer 2. Nothing. they are not obligated to do anything. They can Refuse the offer, but they have to pay the agent no matter who finds the buyer 3. Make a counter offer 4. Contingent agreement

2. Nothing. they are not obligated to do anything. They can Refuse the offer, but they have to pay the agent no matter who finds the buyer

Under what agreement, the broker does not receive a commission if the seller is the one to find a buyer for their property. 1. exclusive right to sell 2. exclusive agency agreement 3. exclusive buyer representation agreement 4. exclusive seller representation agreement

2. exclusive agency agreement

Why was asbestos often used as a construction material? 1. waterproof 2. fireproof 3. indestructible 4. cheap

2. fireproof

If an older building cannot be air conditioned, it is an example of 1. economic obsolescence 2. functional obsolescence 3. physical deterioration 4. external deterioration

2. functional obsolescence

if a buyer is interested in purchasing a one to four unit residential rental property based on monthly rental income what rent multiplier do they use? 1. cost approach 2. gross rent multiplier 3. gross income multiplier 4. comparative market analysis

2. gross rent multiplier

In a jurisdiction where the common law of agency governs real estate activities, a broker has entered a single agency relationship with the buyer. The broker has put together a list of properties but it was based off how much commission he can make on this sale. What fiduciary duty did the broker violate? 1. confidentiality 2. loyalty 3. disclosure 4. caution

2. loyalty

A small broker committee in the local county has set up a new marketing idea. They will give every seller the same commission rate and it will not be negotiable. This will allow the customers to know exactly what it will cost to list a property. This marketing plan is: 1. apostille 2. price-fixing 3. market allocation 4. consumer protection

2. price-fixing

The lead paint addendum that must be presented with the purchase and sales contract for certain older homes will: 1. require the removal of all lead paint prior to the closing. 2. provide the buyer with the opportunity to wave the right to a lead paint inspection. 3. mandate the sellers remove any lead paint only on interior walls. 4. make the sellers liable of the buyer's lead related medical problems

2. provide the buyer with the opportunity to wave the right to a lead paint inspection.

The broker has noticed that a great number of people who are buying in the neighborhood where his listing is located speak Russian. He also noticed a Russian grocery store right by the neighborhood that was attractive. He decides to stop the advertising the property and started adverting the property on two different Russian internet sites. This is: 1. Acceptable because it is not print media 2. Unacceptable due to its discriminatory nature 3. Acceptable if the advertisement includes no preferential language 4. The only appropriate way to market property in this neighborhood

3. Acceptable if the advertisement includes no preferential language

Title insurance has allowed for more accessible loans for buyers. This is because: 1. Lender policies can add exemption to the owner's policy. 2. It reduces the risk of loss due to buyer default. 3. It reduces the risk of loss due to title defects. 4. Lender policies are paid for by buyers

3. It reduces the risk of loss due to title defects.

Which of the following statements is true regarding an option agreement? 1. The buyer must purchase the property at some future time. 2. The buyer is given the privilege of occupying the property. 3. The seller agrees to sell at a fixed price within a stipulated time. 4. Any payments are refunded should the buyer fail to perform on the agreement.

3. The seller agrees to sell at a fixed price within a stipulated time.

A developer intends to subdivide a large parcel of land and is in the process of land planning. He has determined the geographic boundaries of the individual lots and how the streets as the development will be signed to give access to each lot, when can he begin to list this property? 1. after he records prescriptive easements for lots that have no street frontage 2. When local authorities grant him a conditional use permit allowing residential construction 3. When he has submitted his plat map to local authorities, received approval, and recorded it 4. Immediately, as long as the current zoning ordinance permits the residential use he is planning

3. When he has submitted his plat map to local authorities, received approval, and recorded it

Which of the following property valuation estimates or reports would have to be prepared by a licensed or certified appraiser? 1. a broker's price opinion 2. a competitive market analysis 3. a reconciliation report for an FHA loan 4. a value analyze for a non-residential property valued below $250,000

3. a reconciliation report for an FHA loan

What does the mortgage lender most often rely on when deciding how much is safe to lend on a parcel of real estate? 1. market analysis 2. sales contract 3. appraisal report 4. assessor's determination

3. appraisal report

A homeowner has negotiated with a neighbor to obtain the permanent right to pass over the northern part of the neighbor's land to gain access to the river. He pays the neighbor $9,000 for the right of access and receives a deed. This is an easement 1. in gross 2. by necessity 3. appurtenant 4. by prescription

3. appurtenant

The sellers have listed their property for sale because they are its a difficult financial situation and would like to get the house sold quickly. If one of the other sellers in the area ask why that client is selling, the listing agent should respond by explaining what: 1. are motivated 2. need a quick sale 3. are looking to sell their house 4. are in a difficult financial situation

3. are looking to sell their house

The most listing contracts, a broker who has brought a ready, willing, and able buyer to a seller who agrees to the terms of a sales contract: 1. earns a commission at that point 2. earns a commission even if the contingencies in the contract have not been met. 3. does not earn commission unless the sale closes 4. does not earn commission if the buyer and seller agree to rescind the contract

3. does not earn commission unless the sale closes

The buyer asks if there are any sex offenders in the neighborhood. The agent's MOST appropriate response would be to: 1. go the state's website and obtain the information and give it to the buyer. 2. ask the seller and then pass the seller's information along to the buyer. 3. give the buyer the website address so the buyer can look up that information 4. contact the local police department to obtain the information

3. give the buyer the website address so the buyer can look up that information

if a buyer is interested in purchasing a five or more unit commercial rental property (apartment and condominium) based on annual income what rent multiplier do they use? 1. cost approach 2. gross rent multiplier 3. gross income multiplier 4. comparative market analysis

3. gross income multiplier

A seller has listed a home with a broker for $112,000. The seller is leaving for a 45 day cruise midway through the listing period, and authorizes the broker through a power of attorney to accept any offer of all cash at a price 100,00 or more. Broker receives a cash offer for $110,000, what does the broker do? 1. may not accept the offer until the seller returns 2. must forward the offer to the seller's attorney for consideration 3. may accept the offer 4. may sign a deed of conveyance if the seller does not return on time

3. may accept the offer

Which of the following is among the typical responsibilities of a residential property manager? 1. requesting the tenant's employer withhold the past due rent from wages 2. making decisions about structural changes that wilt enhance the property value 3. selecting tenants to provide a diverse environment 4. negotiating leases between the property owner and potential tenants

3. selecting tenants to provide a diverse environment

Zoning ordinances are typically established by: 1. the federal government 2. state governments 3. town and city governments 4. the courts

3. town and city governments

What is a right or privilege associated with real property in some way, such as a parking space in a multi unit building, an easement, or water rights, and is normally conveyed to the new owner when the property is sold

Appurtenance

Sellers list their homes for sale as-is when they don't want to do any repairs before closing. It means there are no guarantees from the seller that everything's in working condition. If you buy an "as-is" home and later find major problems, you're responsible for the repairs. "As-is" sellers still need to meet federal and state minimum disclosure standards, which include telling you about things like lead paint.

As Is. If you buy an "as-is" home and later find major problems, you're responsible for the repairs.

Which type of deed merely implies but does NOT specifically warrant that the grantor holds good title to the property? Trust deed Quitclaim Special warranty Bargain and sale

Bargain and sale By giving a bargain and sale deed, the grantor implies ownership and possession the property, but there are no express warranties against encumbrances.

The provisions of Regulation Z require all of the following to be disclosed to a residential buyer EXCEPT Loan interest rate Loan origination fee Discount points Brokerage commission.

Brokerage commission. Regulation Z has to do with disclosing details of the proposed loan. It does not deal with brokerage commissions.

Buying an "as-is" home doesn't mean you give up your right to disclosures.Each state has its own disclosure laws on what a seller has to tell the buyer about known problems. Some state disclosure regulations include water damage, mold infestations, termites and even whether someone died on the property. If a seller doesn't disclose a known problem that's within your state's list of required disclosures, you may be able to sue for damages or repair costs. The only current federal disclosure statute is for lead paint. If you're buying a home built before 1978, the seller needs to tell you if the home has ever had lead paint. You may be able to use disclosure laws to your advantage as a buyer. As soon as a seller knows about an issue in the home, they have to tell every future buyer about it. For example, let's say you live in a state that requires sellers to disclose mold damage. Your home inspection finds mold that the seller didn't know was there. Alerting the seller to the mold might make them more willing to negotiate with you; after all, they'll have to disclose the mold to other buyers if you back out of the sale.

Buying an "as-is" home doesn't mean you give up your right to disclosures. As soon as a seller knows about an issue in the home, they have to tell every future buyer about it.

The Fair Housing Act requires all "covered multifamily dwellings" designed and constructed for first occupancy after March 13, 1991 to be accessible to and usable by people with disabilities. Covered multifamily dwellings are all dwelling units in buildings containing four or more units with one or more elevators, and all ground floor units in buildings containing four or more units, without an elevator.

Covered multifamily dwellings are all dwelling units in buildings containing four or more units with one or more elevators, and all ground floor units in buildings containing four or more units, without an elevator.

Real Estate Elements of Value

DUST Demand: This means the desire to buy and an ability to pay. Utility: The item satisfies a human need or desire; such as shelter, income, or recreation. Scarcity: Limited in supply, as supply diminishes, value increases. Transferability: Able to transfer from one owner to another

what transfer title from the trustor (property owner) to a trustee, who holds it on behalf of a beneficiary (lender)

Deed of trust

Annual plantings or crops of grains, vegetables, and fruit

Emblements

Fair Housing Act says it would be reasonable to expect a landlord to permit a support animal (such as a guide dog) in a normally no-pets building. In newly constructed multifamily buildings with an elevator and for or more units, the public area must be accessible to someone with a disability.

Fair Housing act

Physical characteristics of land include

Immobility, indestructibility, and no homogeneity (uniqueness)

Which of the following describes a gross lease? In a gross lease, the tenant pays no part of the property's operating expenses other than utilities.

In a gross lease, the tenant pays no part of the property's operating expenses other than utilities.

What kind of listings give the most benefit to the home buyer. Unlike an exclusive right to sell listing, this listing allows the owner to place listings with multiple real estate brokers. On top of that, the homeowner still has the opportunity to sell the home themselves and avoid paying any commission to an agent. You also won't find this listing on the MLS (multiple listing service); however, they will rely on the real estate brokers to bring them a buyer. 1. Net listing 2. Open listings 3. exclusive agency agreement 4. exclusive buyer representation agreement

Open listings

Factory-built homes, including manufactured homes, that can be personal property unless

Permanently affixed to land

Economic characteristics of land include

Scarcity, improvements, permanence of the investment, and area preference

Which of the following describes the act by which real property can be converted into personal property? Severance Accession Annexation Conversion

Severance When we sever something, we cut it loose. Severing (felling) a tree from its roots converts it from realty—real(proper)ty—to personalty—personal(proper)ty. The process is called severance.

a mortgage with power of sale enables the sale without _____

court action

deed of trust with power of sale allows the beneficiary (lender) to ask the trustee to conduct the trustees sale without_____

court action

when the loan is paid in full, a defeasance clause requires the beneficiary to request the trustee to execute and deliver to the trustor a __________ to return legal title to the trustor

deed of reconveyance (release deed)

when a mortgage loan is paid in full, a _____ clause requires the lender to execute a satisfaction (release or discharge) that is recorded to clear title

defeasance

the earnest money cannot be released until both parties provide written permission. The only other acceptable reason to release earnest money funds is under instruction from a court order. This usually occurs if the deal becomes contentious, or there are unforeseen issues.

earnest money

Township lines within a section run __________ parallel to the base line, six miles apart;

east to west

______ method divides the subdivision into and block and lot (individual parcel) numbers and references all data in a subdivision plat map, noting lot sizes, street names, and other required information that is approved by the governing body, and filed in public records of the county where the land is located

lot and block (recorded plat)

_____system divides land into rectangles called townships, measured from the intersection of a principal meridian and base line, and referenced by degrees of longitude and latitude. range lines run north to south parallel to and counted from the principal meridian, six miles apart.

rectangular survey system