Combo

A large difference existed in the amount of land being conveyed between the listing agreement, sales contract, mortgage contract and deed. Which document would take priority?

Deed

A seller and a buyer entered into a contract for deed. Which of the following would be true regarding this type of financing?

The installment payor (buyer) would pay the taxes, insurance and assessments on the property

an undischarged mortgage

What would be an example of a cloud on the title?

to obtain a quitclaim deeds from other claiming prior ownership

Why would a buyer file a quiet title suit

Two neighbors both used a driveway loated on the boundary line between their two properties. Upon the death of one of the neighbors, would the heirs of the deceased have the rights to use the driveway?

Yes, this is an appurtenant easement and is inheritable.

Regarding personal income taxes, less income taxes are due when a person:

itemizes expenses such as mortage interest on a primary residence

A seller listed a property with a broker whereby the broker was to receive as commission any money realized over 94% of the list price. This would be a(n):

net listing

When a building inspector certifies that a building has met all required building codes they would issue a(n):

occupany permit

A real estate sales contract becomes binding when:

the buyer receives notification of the seller's acceptance.

Owner A owned one-half of a duplex with Owner B owning the other half. The party wall between the two properties was damaged by a crack that started on Owner A's side of the wall and then extended onto Owner B's side of the wall. Who would be responsible for repairs to the party wall?

Both Owner A and Owner B

Which of the following best expresses the difference between building codes and zoning regulations?

Building codes apply to improvements on real property; zoning regulations apply to the use of real property.

A 3000 square foot building was leased out at $10 per square foot plus 8% of gross sales. The total rent for the year was $60,000. How do you find the gross sales

Divide

A wife's entitlement in a property solely owned by her dead husband falls under which law?

Dower

What rights of ingress and egress are granted through the court system?

Easements by necessity

A new licensee is working with a buyer who does not understand financing. What should the new licensee do?

Explain to the buyer a number of financing alternatives that are available

Which of the following would be a federally charted corporation in the secondary mortgage market?

GNMA-Government National Mortgage Association

Jane planted a pot farm on the corner of Mr. Dick's property. Mr. Dick was home-bound and never left his house, which must have really sucked. Mr. Dick never knew that bitch had planted a pot farm on his property. The statutory period had elapsed and Jane claimed the pot farm. Would Jane have a good chance of getting rights to an easement by prescription as pot farms are now legal?

Yes, because she had made open use of the property.

A buyer and seller entered into a contract for the sale of a house. The buyer applied for and was approved for a loan. At the last minute the seller backed out of the sale. Is the broker due a commission?

Yes, because the buyer was able to perform all of the requirements in the contract

A broker had a listing with a seller that expired on July 5th. The broker brought a buyer to the property on July 8th. If a deal was consummated, how much commission would the broker be legally entitled to?

Zero, as the buyer was procured after the listing expired.

A buyer purchased a property for $70,000 adding improvements of $30,000. If the buyer then sold the property for $150,000, the $50,000 would be considered:

a capital gain

A cooperative was having problems meeting its obligations because a few of the individual members were in arrears with their lease payments. The lender who holds the mortgage has threatened foreclosure. What could happen as a result of this foreclosure action?

If the lender forecloses, the cooperative would be dissolved and each stockholder would lose their interest.

When a valid deed is recorded, what does it actually do?

It gives constructive notice

by filing for a quiet title suit

Joe died and left real estate to his granddaughter, who then tried to sell the land. The title was unmarketable because Joe had owned the real estate under a fictitious name. How can his granddaughter clear title?

A listing agreement is BEST thought of as a legal:

agency agreement

A freehold interest in land would BEST be described as an"

an interest for at least a life estate

The primary purpose of the Federal National Mortgage Association (FNMA) is to"

buy pooled mortgages from the primary mortgage market

A construction company has built a hangar for an airplane which was kept on an owner 's property. The owner did not pay for the hangar, so the company filed a mechanic's lien on the airplane. Was the construction company justified in doing this?

No, because a mechanic's lien can only be placed on the improvement itself.

A woman was in the process of buying a house and had not owned a house previously. She obtained a first mortgage for the house under the Truth-In-Lending laws. The next day, she decided she wanted to back out of the entire agreement, including the first mortgage. Can she do this?

No, she can't rescind as this was a residential first mortgage covered under the Regulation Z

A seller sold their house to a buyer and allowed the buyer to assume the seller's loan. Which of the following would give the seller the best protection regarding this situation?

Novation

What kind of study would best be used in trying to determine the feasibility of putting in a septic system on a property?

Percolation test

unmarketable

Prior to closing on the purchase of a home, the buyer notices that a structure on an adjoining parcel appears to be over the boundary line. This encroachment means that the title to the subject property may be:

Real estate sales contracts must be in writing to be enforceable under which body of law?

Statute of frauds

A tenant was able to negotiate with a landlord a two month lease for entertainment purposes. What type of leasehold estate would this be?

Tenancy for years

A seller signed a listing agreement with a real estate brokerage company. Prior to the expiration of the listing agreement, the seller decided to cancel the listing. Which of the following statements would be true?

The seller might be liable for damages to the broker

A man and wife rented a condominium for one year. The lease agreement signed by the landlord and tenant made no mention of a notice to terminate. At the end of the year, the man and wife moved out. The landlord notified the man and wife that they owed one extra month's rent as they had not given the lanlord a notice to terminate one month before the expiration of the lease. Which of the following statements is true regarding this situation?

The tenants do NOT owe one extra month's rent as no notice was required due to the lease being for a set one year time period.

Which of the following would apply to the filing of a mechanic's lien?

There is a limited time to record the lien.

Which of the following is true of a DVA loan?

There is an escrow for taxes and insurance

Bankruptcy would cancel a listing after:

discharge by the court

The type of deed that would provide the best protection for the buyer would be a(n):

generic warranty deed

The purpose of Regulation Z is to:

inform borrowers of total loan costs

A broker is trying to sell an owner's house under an exclusive agency listing. The entire block where the house is located is condemned under the right of eminent domain. What is now true of the broker's agency relationship with the owner?

it is terminated

If an improvement on a property was destroyed by a fire, what happens to the existing agency agreement?

it would be automatically terminated

In order to have a valid lease, there needs to be a:

lease expiration date

Which branch of government actually levies real estate taxes?

local

What would be deductible on an individual's personal tax return?

mortgage interest

A farmer leased a property on an annual basis whereby the farmer or the owner could terminate the lease by giving the other party a 90 day day notice. One half of the crop value would be the annual rent. This type of lease would be best described as a:

periodic estate

Mortgage payments being applied to debt service would cover:

principal and interest

A property manager, who is a licensee, received damage deposit funds in the leasing of an industrial property. The licensee would deposit the funds into a:

property management account

When a seller personally finances all or part of the sale for the buyer, this is referred to as a :

purchase money mortgage

A veteran chooses to make a down payment on the purchase of a home with the veteran obtaining a DVA loan. The down payment money would go to the:

seller

A listing broker brought an offer to the seller with a $1500 promissory note as earnest money which the seller accepted. Before closing, the buyer declared bankruptcy. Concerning the bankruptcy, the listing broker should:

tell the seller immediately

An exclusive agency agreement is best defined as where:

the seller can sell the property and not pay a commission

A listing broker sold a property where the sellers were going to carry a purchase money mortgage on the property. Which of the following information, if discovered by the broker, would be important to the seller?

The potential buyers had a history of credit abuse.

Which of the following statements is true regarding an FHA loan?

The loan amount is based on the acquisition costs

An owner decides to sell his property and signs several different listings with several different brokers, allowing each broker an opportunity to sell the property to sell the property and earn commission. Which of the following statements would be true in this situation?

The owner can procure a buyer and pay no one.