Real Estate

The selling price of a property is $96,000. This can be financed if the buyer can put 10% down and pay a loan origination feet of one. 5%. How much cash must the buyer produce to complete this transaction

$10,896

The selling price of the property is $96,000. This can be financed if the buyer can put 10% down and pay a loan origination fee of 1.5%. How much cash must a buyer produce to complete this transaction

$10,896

Federal income tax law excludes gain realized on the sale of a primary residence for individuals filing separately and for couples filing jointly. The amount of this exclusion is (separately/jointly)

$250,000/$500,000

Peter wants to buy his first home but doesn't know how much he can afford to pay he has a gross monthly income of $3000. According to the traditional lenders rule of thumb formula, what is the total housing expense Peter can bear

$840

Sam is listing his property for $100,000. If his cost to refurbish/flip the property is 80% of the listing price, what will his percentage of profit be when his real estate is sold for the listing price

25%

_____________ is the process of using similar properties that have recently sold or least to estimate the value of a property and it is more informal

CMA

Broker Joan shows properties listed for sale with her company to prospect Karl. Karl has refused buyer representation. Karl is Joan's

Customer

The National Flood Insurance Act of 1968 is administered by

FEMA

Which of the following would not be under PITI?

Income

The largest real estate trade association is

NAR

The concept of a "bundle of legal rights" comes from

Old English law

A community that merges housing, recreation, and commercial units in one self-contained development is called

PUD

When Joe inherited rolling fields, he removed all the soil, gravel and lime soe and sold it. When he dies, he left it to his daughter, Rose. What did Rose inherit?

Rose inherits what's left, to the center of the earth

First-time home buyers can deduct monies from an IRA without penalty

True

Stan rented a restaurant to Marty. Stan and Marty have a dispute about whether a baker's oven should be considered a trade fixture or whether it can be removed by Marty now that his lease has ended. The key issue is

Whether it was removed before the end of the lease

Most homeowner's insurance policies contain which of the following clauses?

a coinsurance clause

An individual who buys a cooperative receives which of the following

a proprietary lease

____________ is the process where the landlord acquires a trade fixture when it is not removed before the end of the lease

accession

A manufactured home can be turned into real estate by what process

affixation

Who acts as the primary point between a principal broker and buyers or sellers

agents

Air rights may be sold separately from surface rights, with a limitation for

air travel

The owner of a house wants to fence the yard for her dog. When the fence is erected, the fencing materials are converted to real estate by

annexation

Real property includes all of the following except

annual planting

Sally buys 100 Main St. from Fred. Fred removes the basketball goal that was said instrument. Sally claims this was a fixture and should have remained with the property. Silicon say all the following legal arguments except

appurtenance

This is any right or privilege associated with the property (parking, eater rights, etc.)

appurtenance

Rights or privileges which are connected with real property, are

appurtenances

Water rights are classified as

appurtenances

Theft, smoke damage, and damage from fire are covered under which type of homeowners' insurance policy

basic form

A buyer's agency disclosure form should be signed at what point

before presenting an offer to purchase

The person who is ultimately responsible for the sales agent's actions is

broker

Niche marketing applies to

certain groups

Which of the following individuals or entities are involved in financing

commercial banks credit unions savings associations

Pools, clubhouses and hallways are used by condominium owners as

common elements

A multiunit residential building in which individual units are owned and fee simple, plus an undivided joint interest in the common elements is called a

condominium

Special purpose real estate includes all of the following except

condos

___________ is the right to determine interest of property

control

A building that is remodeled into residential units and is no longer used for the purpose for which it was originally built is an example of a(n)

converted-use property

Borrowers can deduct all of the following expenses EXCEPT

credit card interest

Which of the following BEST expresses the concept of equity

current market value - property debt

A basic form policy would cover all the following except

damage from falling objects

All of the following affect how quickly the forces of supply and demand work except

degree of standardization of the product's price

Governmental controls on real estate include all of the following except

development

All of the following are categories of the uses of real property except

developmental

The Federal Reserve Bank establishes the

discount rate

Jim takes out a loan on his house form the local lender. Jim has the right to encumber his property under the right of

disposition

All of the following laws affect real estate licensees except

domestic laws

Fructus industrials are also known as

emblements

__________ is the ability to use a property for a loan

encumbrance

___________ is possession without harassment or interference

enjoyment

When a person buys a house using a mortgage loan, the difference between the amount owed on the property and its market value represents the homeowner's

equity

A deed conditutes

evidence of ownership

________ is the ability to legally refuse others interest

exclusion

manufactured housing is also known as what

factory-built housing

A real estate agent may give legal advice about the affect of a contract provision, as long as he or she is representing one of the parties

false

All licensed agents must be realtors

false

The terms land, real estate and real property are synonymous

false

Appraisals are required for

federally related transactions

___________ is the process of securing funds for real estate transactions

financing

All of the following would affect demand except

fiscal policy

Any item that has been permanently attached to a building is referred to as a

fixture

For which of the following risk would a homeowner have to purchase a special policy in addition to a typical basic or broad form homeowners insurance policy

flood damage

All of the following are treated as personal property except

fructose naturales

A real estate professional who performs a visual survey of a property structure and systems in for prayers and analytical report for a purchaser or an owner is acting as a

home inspector

This is any artificial thing attached on or below ground (house, sewer, etc.)

improvement

When added to a piece of property, drainage, sewage and water access are known as

improvements

Land is considered to be

indestructible

Residential property can be all of the following except

industrial

Demographics include all of the following except

jobs

After agreeing to a purchase price, a buyer and seller become very contentious. The seller removes the lighting fixtures from the bathrooms before moving out. When the buyer moves in, she sues. Which of the following statement is true

lighting fixtures are generally considered fixtures

Generally, personal property can be distinguished from real property by its

mobility

Which of the following is a factor in supply

monetary policy

Homeowners may deduct all of the following expenses when preparing their income tax return EXCEPT A) real estate taxes. B) mortgage interest on a first home. C) mortgage interest on a second home. D) mortgage interest on a third home.

mortgage interest on a third home

Three years ago Dr. and Mrs. Henderson moved from the house they had owned for 20 years, but did not sell it. They decided to travel and bought a mobile home to live in. They now sell the house for $325,000. How much of their capital gain on the house will be taxable?

non of it, if it is less than $500,000

Carol and her husband bought their house in 1968 (when they were 21) for $25,000 and have lived in it ever since. Today, the neighborhood has become very fashionable, and they sell the house for $450,000. How much of the gain is taxable on the couple's joint return this year?

none of it

A broker showed a owner occupied property that had window screens, custom venetian blinds, and a wall bed to a fire whose offer was then excepted by the owner. The buyer contracted to retain all of these items. Before the close of escrow the seller may remove

none of the identified items

After the construction of a building in the air rights above a railroad fight-of-way, the trains can

operate as usual

What are some of a property managers' responsibilities

order maintenance protect investment collect rents

A bill of sale is used to transfer the ownership of

personal property

According to law, a trade fixture is usually treated as

personal property

According to law, a trade picture is usually treated as

personal property

If a mobile home is delivered to a lot and hooked up to utilities, it is considered

personalty

Realty includes all of the following EXCEPT

personalty

___________ is the right to occupy the premise

possession

When demand increases and supply remains stable

prices go up

Co-insurance requires a homeowner to maintain insurance that is at least 80% of

replacement cost

Property manager duties include all of the following except

selling the property

Real property can become personal property by

severance

When you divide a single property into smaller parcels and sell them as building parcels you are typically creating a

subdivision

Which of the following are NOT costs or expenses of owning a home

taxes on personal property in the home

Last month Wanda took a listing on a property. She now learns that her client has been declared incompetent by the court. Her listing now is

terminated

John rented space in an office complex. When he moved in, he erected shelving to showcase the books. When his lease ran out, John left without removing the shelving. John returned a week later to claim his shelves. The landlord refused to give John, the shelves. Who is correct?

the landlord because John did not remove the shelves on time

A rancher owns a parcel of land on which oil was discovered. If the rancher has not previously conveyed the oil rights, who owns the oil?

the rancher

All of the following are included in the right to control one's property except

the right to exclude the utilities' meter reader

A company buys a 100 acre parcel of land and build several storage shacks. The company then uses those shacks to store hazardous materials, such as turpentine and old paint. Which of the following statements is true

the shacks are improvements

Typically, __________ must be removed before the last day of lease

trade fixtures

Fixtures are

treated as real property

All of the following are economic characteristics of land except

uniqueness

The term non homogeneity refers to

uniqueness

Stan rented a restaurant to Marty. Stan and Marty have a dispute about whether a bakers oven should be considered a trade fixture or whether it can be removed by Marty now that his lease has ended. The key issue is

whether it was removed before the end of the lease