NATIONAL PORTION
a tract of land is 1/32nd of a section. How many acres does this tract consist of?
20 acres
what is a lien-theory state
A state in which a mortgage is considered to be a lien against a secured property
what is a buffer zone?
A transitional zone between a residential zone and a commercial zone.
How is a lien terminated?
Payment of the debt that is the subject of the lien and recording of the satisfaction.
a condominium owner can
Sell or mortgage the condominium unit without hindrance from individual owners of neighboring units.
what is the loan-to-value ratio
The fraction of the appraised value of the property offered as collateral which the lender is willing to lend
what is absorption
The number of available units that become occupied over a period of time
one difference between a condition and a covenant is that
a condition can can be created only when there is a transfer of ownership
which of the following situations is most likely to represent an illegal nonconforming use?
a homeowner in a residential zone converts her residence to rental offices
in a strict foreclosure,
a lender takes title to the liened property directly.
For a loan that is not backed by the Federal Housing Administration or Veterans Administration, and for which the borrower is making a down payment of less than 20%, the lender is likely require the borrower to obtain
a private mortgage insurance
foreclosure is
a proceeding to enforce a lien by forcing sale or transfer of a secured property
an appraisal is
a professional appraisers opinion of value supported by data and following approved methods
the principle underlying depreciation from physical deterioration is that
a property loses the same increment of value each year over the economic life of the property
what is the difference between a variance and a nonconforming use?
a variance is granted by the zoning board if the owner has a justifiable reason
which of the following statements properly describes the methodology of the cost approach to appraisal?
add the estimated land value and cost of improvements and subtract the accord depreciation of the improvements
In making dollar adjustments in the sales comparison approach, the appraiser
adds value to a comparable that is inferior to the subject property
the federal reserves regulation z applies which loans
all loans secured by a residence
To obtain a change of the zoning for a particular property, for example, from residential to commercial, a property owner would ask the zoning board for a(n)
amendment
if a real estate licensee provides any party to a real estate transaction with third-party information concerning the size or area, in square footage or otherwise, of the subject property involved in the transaction, the licensee shall identify the source of the information. third-party information means
an appraisal or any measurements information prepared by a licensed appraiser a surveyor developers plan prepared by a license surveyor a tax assessors public record
In what kind of easement is there a dominant tenement and a servient tenement?
an easement appurtenant
If a new company that sells its products worldwide moves into a town and hires 100 employees, it would be reasonable to expect
an increase in demand for all types of real estate
A court might grant an easement by prescription if
an intruder has been using an owner's property for a certain period with the owner's knowledge but without permission.
an encroachment is
an unauthorized physical intrusion of one property into another
an encumbrance is most broadly defined as
anothers interest in a real property that limits the interests of the freehold property owner
the agent and principal may terminate the agency relationship by the mutual consent
at any time
the sudden removal of soil by an act of nature is
avulsion
which of the following is personal property?
bench in the yard
real property is conveyed by deed. personal property is conveyed by
bill of sale
?which of the following is real property?
building materials delivered to a house and used to add a screened in porch on the back of the house
the difference between what a borrower has to pay to purchase a property and the amount a lender will lend on the property is the
buyers down payment
As evidence that building inspectors have found that a structure complies with building codes and is ready for use, the municipality or county issues a(n)
certificate of occupancy
One of the agent's fiduciary duties that continues even after a listing agreement expires is
confidentiality
a lien is a
creditors claim against property as security as security for a debt of the property owner
if the price of an item is increasing, one can usually assume that
demand for the item is increasing in relation to the supply of the item
the property transferred by a will is called the
devise
another name for loan fees is
discount points
which of the following statements properly describes how to apply the income capitalization approach to appraisal
divide the income a property generates by a desired rate of return
if the owner of a property A has court-ordered easement to drive across property B because it is the only way for A to have access to a public road, the easement is a
easement by necessity
a municipality wants to build a water treatment facility and requires some privately-owned land to do so. what right enables the municipality to buy the property, even against the owners wishes
eminent domain
what is a metes and bounds survey most likely to disclose?
encroachments
what method currently used to describe real estate provides land descriptions by dividing the land into rectangles in which the land is located and is based on two intersecting lines, principal meridians and base lines?
government survey system
which of the following is not characteristic of the FHA loans
guaranteed
a property owner acquired a property by means of a deed that included a deed restriction against building any kind of unattached structures on the property. the owner now wants to build a small office/art studio in a separate structure. what can the owner do to overcome the restriction
have the necessary parties execute a quitclaim deed
deed restrictions generally concern
how a property may be used and what structures may be built on it.
a VA certificate of eligibility determines
how much of a loan the VA will guarantee
a legal description in the rectangular survey system will also include a metes and bounds or lot and block description if the property
is irregular in shape
one of the strengths of the coast approach is that it
is very accurate for a property with new improvements that represent the highest and best use
how much is a discount point?
it depends on the interest rate and the loan amount
which of the following is true of a successful eminent domain proceeding
it extinguishes leases, liens, and other encumbrances on the property taken
what is the function of a note mortgage or trust deed financing arrangement
it is evidence of the borrowers debt to the lender
when a tenant in common dies, what happens to the tenants interest in the estate?
it passes by probate to the deceased tenants heirs
If an owner of real property dies without leaving a will and with no legal heirs, what will generally happen to the property?
it will revert to the state or county by escheat
which of the following statements properly describes the central concept of the sales comparison approach?
make dollar adjustments to the sale prices of comparable properties to account for competitive differences with the subject
what is the difference between market value and market price, if any?
market value is an estimate, market price at which a property is offered market value is an estimate, market price is the price at which a property sold
a buyer who purchases property and obtains financing from a lending institution is called a
mortgagor
the borrower in a mortgage loan transaction is known as the
mortgagor
littoral rights concern which of the following bodies of water?
navigable lakes, seas, and oceans
a conventional mortgage loan is the one that is
not FHA-insured or VA guaranteed
water rights include the right to
own and use a body of water on the surface of the earth
which of the following is true of an amortizing loan
part of each periodic payment is applied to repayment of the loan balance in advance and part is applied to payment of the interest in arrears
Among other provisions, the Superfund Act (CERCLA) and Superfund Amendment and Reauthorization Act of 1986 provided that
parties responsible for improper disposal of hazardous waste could be charged for the clean up cost
a general lien is a lien
placed against any and all property owned by an individual.
Among the fiduciary duties imposed on a real estate agent is the requirement to
present all offers to the principal
if the demand is increasing, what would be the likely effect on real estate prices in an area where the municipality has declared a moratorium on new construction?
prices would rise
the court proceeding that generally settles a decedents estate is called
probate
the lot and block system of description is used for
properties in a subdivision
Comparative Market Analysis (CMA) is not an appraisal and focuses on properties similar for the purpose of deriving a likely listing price or offering price based on
properties that have recently sold properties that are currently on the market expired listings
a real estate tax lien, a federal income tax lien, a judgement lien, and a mortgage lien are recorded against a property. which lien will be paid first when the property is sold?
real estate tax lien
a retailer installs special display counters to exhibit her products. at the end of the lease term, the retailer moves to another state leaving the counters in the store. at this point, the counters are considered which of the following?
real property since the trade fixtures were abandoned
the equal credit opportunity act prohibits a lender from
refusing a loan because the property is located in a certain area
The best comparable property for use in the sales comparison approach is the one that
requires the fewest and smallest adjustments
During a time of declining vacancy in a real estate market, one would expect
rising prices
the owner of a cooperative owns
shares in a corporation or association and a proprietary lease in a physical unit
the defining feature of a special agency is that the agent has authority to preform
specific activities on behalf of the principal, as defined in the agency agreement
The basic intent of zoning ordinances is to
specify usage for every parcel within the zoning authority's jurisdiction
riparian rights concern which of the following bodies of water?
streams and rivers
a lien holder can change the priority of a junior lien by agreeing to
subordinate the lien
One of the strengths of the sales comparison approach is that it
takes into account the competitive value of specific amenities of the subject property
if a husband and wife own property together, the husband dies intestate, and the wife assumes sole ownership, how did they own the property?
tenants by the entirety
if three people bought a property and the type of ownership was not mentioned in the deed, what kind of ownership will it be?
tenants in common
If a particular loan falls under Regulation Z's right of rescission provision
the borrower has a limited right to cancel the transaction within a certain period
in cooperative, real property is owned only by
the corporate entity of the cooperative association
If an agency relationship terminates because one of the parties defaulted, which of the following is true?
the defaulting party may have a financial liability
If littoral rights attach to a property, the property extends to
the high-water mark of the body of water
which of the following is true of the connection between compensation and the agency relationship?
the relationship is independent of any compensation arrangement
which of the following describes a purchase money mortgage financing arrangement
the seller carries the note and the buyer gives the seller a mortgage and note as part of the purchase price of the property
who owns the land under a navigable river?
the state
which of the following is a joint tenancy
the tenants have an equal and indivisible ownership interest
one of the physical characteristics that distinguishes real estate is
the uniqueness of every parcel
two individuals can own a house as tenants by the entireties if
they are married
alvin, Theodore, and Simon own property as tenants in common. Alvin died and his heirs want to sell their interest in the property. what do the heirs need to do
they can sell their interest without the others consent
which of the following is true of littoral rights?
they transfer with the property when the property is sold
the document that provides evidence that a certain property is pledged as collateral for a loan is the
trust deed or mortgage
if a property has riparian rights, the owner has the right to
use the water in a way that does not infringe on another's riparian rights
A strength of the income capitalization approach is that it
uses a method that is also used by investors to determine how much they should pay for an investment property
which of the following statements best describes the relationship between price and value in the market system?
value is based on the interaction of underlying economic factors; price is a quantification of value in a transaction
a property owner wishes to make an improvement to the property that does not comply with zoning ordinances. the property owner should request a
variance
In the final step of an appraisal, the appraiser reconciles the value estimates derived by the various appraisal approaches by
weighing the applicability of the approaches and considering the quality of data supporting each approach
what is the relationship between master planning and zoning ordinances
zoning ordinances are a primary means of keeping land use in line with the master plan
