Real Estate License Exam Review 18

In what year was the Americans with Disabilities Act made law?

1990

What do you get when you add the purchase price to closing expenses and the cost of any improvements during the time of ownership, then subtract any depreciation taken?

Adjusted basis

According to RESPA, what must the lender give to the borrower in the days immediately prior to settlement?

Closing Disclosure

What institution was established in 1938 to purchase FHA-insured loans from individual lenders, group the loans together, and sell them as mortgage-backed securities to investors?

Fannie Mae (FNMA)

The Johnsons have owned a small restaurant for more than 20 years. It's open for lunch and dinner six days a week, and 80% of its weekday revenue comes from the happy hour drink and appetizer specials. The town in which their restaurant is located recently constructed a new middle school and stripped the liquor license from the Johnsons' restaurant, because it no longer complies with the ordinance to be 500 feet from a school property. The Johnsons have accused the town of _____.

Inverse condemnation

________________ occurs when a property's value is negatively affected by government regulation, but the owner is not offered just compensation according to the requirements of the Takings Clause.

Inverse condemnation

When the property is financed, who is named as an additional insured entity on the homeowner's insurance policy?

Lender

Mick focuses on originating mortgage loans at a company that has in-house loan processors and underwriters. The options he offers consumers are limited to the products his company offers. What's Mick's position?

Mortgage banker

What is the length of the statute of limitations to file a fair housing complaint with HUD?

One year

Over the life span of owning a home, homeowners will be able to take advantage of what tax benefits?

Property tax deduction

Teena has fee simple ownership of her timeshare unit. Which of these is NOT an example of the type of ownership she may have?

Right-to-use

Which of the following requires that contracts transferring ownership of real property be in writing to be enforceable?

Statute of frauds

In a residential real estate sale involving a federally related loan, what entity is required to provide Real Estate Settlement Procedures Act disclosures to the consumer?

The consumer's lender

What legal document must be delivered to the sheriff before a tenant may be forcibly removed from a rental?

Writ of possession