REAL ESTATE 45 HOUR
to correct many of the problems discovered during the collapse of lending institutions in the us, congress created what
FIRREA
chris inherited property and found out if he left the existing structures untouched the property would be worth 500000. an appraisal est the property to be worth 800000 if he spends about 150000 improving the real estate. he elects to make the recommended real estate improvements. which appraisal applies to this situation
Highest and best use
whenever a licensee negotiates a contract for the resale of a timeshare resale unit, the contract must contain specific language ?
-common area expenses -ad valorem taxes -other ownership charges
F.S 455 defines current mailing address as the current residential address, which is used by a licensee to receive mail through US Postal Service. a licensee is required to notofy the department in writing of their current mailing address and any change in the current mailing address within how many days after the change?
10 days
a licensee must notify the DBPR w/in how many days after changing their employer?
10 days
Which property would NOT make the best choice as a comparable property when performing a CMA on a subject property?
A property next-door that sold over two years ago
you are performing a cma on a subject property by using comparable properties a b and c. comparable property c has one less bathroom than the subject property. what adjustments should be made
A property next-door that sold over two years ago
You are listing a property for sale tonight and have done your CMA. The subject property you are listing has 4 bedrooms but one of the comparables you used only has 3 bedrooms. What should your adjustment be?
Add the value of a bedroom to the comparable
the comparable sales approach is based on the appraisal principle of substitution. which statement best demonstrates this principle
Among 3 comparable properties, the one with the lowest list price attracts the most demand due to buyers not wanting to pay more than necessary.
a licensee advertises false, inaccurate, misleading, or exaggerated information. in addition to being issued a citation, how much would they likely be fined?
$500
which type of plumbing supply line piping material, still in use today for hot and cold water distribution, has been reported to leak around the joints
PB Pipe
When licensees prepare a Comparative Market Analysis (CMA), they should base their estimate of value on similar properties according to what criteria?
Properties that have sold within the last 6 months in the same neighborhood
The subject property in a CMA has four bedrooms and two bathrooms. A good comparable property has four bedrooms and three bathrooms. A bathroom is valued at $5000. Which adjustment should be made?
Subtract $5000 from the price of the comparable.
while preparing a comparative market analysis (cma) a licensee comes across two identical homes in the same neighborhood with the exception that one is lake front and the other is not. the home on the lake is sold for 375000 and the other sold for 355000. based on this scenario, what assumption can the licensee make
The approximate added value of a lake lot is $20,000
Which of the following statements best describes the principle of substitution?
The buyer purchases the lowest priced property that meets his/her needs in the neighborhood.
Why is the information on pending sales not as reliable as information on recently sold homes?
The price shown is the listing price, not the sales price.
title xi of firrea was directed toward the appraisal profession and required that appraisals utilized by federally regulated lenders in federally related transactions be developed and reported in conformity with what entity
USPAP Unif stand of proff appraisail practice
the commission has heard cases where the sales associates employing broker does not handle property management, so the sales associate set up their own company to handle property management. example of
a licensee acting beyond the scope of their license
the r-value is a measurment of what aspect of a building
ability of insultating material to resist heat flow
the type of brokerage relationship between a customer and a licensee determines the duties of the licensee to that customer. however all licensees in any brokerage relationship are required to perform the following duties except for which one answer: full confidentiality
all licensees in any relationship must: -deal honestly and fairly -account for all funds, -disclose all known facts that affect the value of residential property. full confidentially, obedience, loyalty, ad full disclosure are due only in a single agency relationship.
which property would most likely be appraised using the income approach
an apartment building
When licensees prepare a CMA for a seller, they must be careful not to refer to the CMA as which term?
an appraisal
in the state of FL, all of these may prepare a bpo except which one
anyone going to class to be a sales associate in the state of Florida
in the early 1980s banks as well as savings and loan associations in the us went through a period of instability. part of the responsibility was placed on whom?
appraisers
what other term refers to the ad valorem value assigned by the country property appraiser to a property
assessed value
which type of value is the value assigned by the property appraiser for ad valorem tax purposes
assessed value
Typically appraisers employ all of the following appraisal methods, EXCEPT:
automated valuation model
a bpo is sometimes referred to as what
automated valuation model
an appraiser conducts an independent, impartial, and objective analysis based on research and data pertaining to the value of what
based on research and data pertaining to the value of the specified real property
institutional and noninstituional lenders are different in the following significant way except
based on their regulation, not their tax status
which statement describes a characteristic of fully-amortized fixed-rate loan when the borrowers monthly payments are the same each month and each payment includes both an interest and principal payment amount
borrower has the same payment every month
a lender has come into ownership of a property due to a foreclosure. This type of property is commonly called a Real Estate Owned (REO) property. In order to determine the value of the property, what would the lender request?
bpo
florida real estate law requires that all of the following changes be reported to the dbpr, except which one
change of specialty are from residential sales to property management
which statute regulates florida real estate licensees, schools, and appraisers
chapter 475
a licensee must never refer to a cma as what
coma is a value est based on recent sales of similar properties in the same neighborhood, utilized many of the appraiasal concept. *appraisail
which of these entities is not a secondary lender
commercial bank
Which valuation approach do licensees use when similar properties in the same neighborhood are compared to each other based on their "sold" prices?
comparable sales approach
the three approaches to value typically used by a certufied appraiser include all of the following, except which one
comparative market analysis
what are the unique duties of a licensee in a single agent relationship
confidentiality, obedience, loyalty, and full disclosure are fiduciary duties that are unique to a single agency relationship and are not required for transaction broker or no brokerage relationship.
Before listing their property the seller remodeled their kitchen at a cost of $75,000. Based on the selling prices in the neighborhood, the real estate licensee estimates that the improvements to the kitchen increased the home's value by $60,000. What is this appraisal principle called?
contribution
a seller remodels the kitchen, adding $30000, to the value of the property. what is this $30000 referred to in appraisal terms
contribution value
All of the following information about the subject property is obtained as part of the first step of preparing a CMA EXCEPT which one?
crime rates, ethnic make up of the community, and quality of local schools.
a sales associate may only receive compensation from who, and not from any other source in regards to the transaction of real estate?
employing broker
which is an example of a secondary mortgage market lender
fannie mae
which of these entities is the oldest and largest participant in the secondary mortgage market
fannie mae
what term refers to a real estate financial transaction that a federal financial institution regulatory agency has either contracted for or regulates, and requires the services of an appraiser
federally related transaction
which shows the penalties for violations of florida real estate license law in order of least to most severe
fine, suspension, revocation
florida statues require that a licensee report to the commission within 30 days after being convicted, found guilty, or entering no contest or guilty to a crime. the penalty resulting from a first violation of this law is likely to include all of the following disciplinary actions except which one?
first violation- 250-1000 and license suspension to revocation second violation- a fine ranging from 1000 to 5000 and license suspension to revocation -full disciplinary hearing and penalties ANSWER: PROBATION
which type of roof is particularly susceptible to wear from standing water
flat roof
which of the following is a benefit of owning a corner lot
flexibility in building design
what reporting process is preferred for most residential appraisals
form reports
which of these entities is a stockholder-owned for-profit corporation, which operates as a function of the hud
freddie mac
which of these entities assists in the financing of urban renewal and housing projects by offering below-market interest rates to low-income families by guaranteeing payment of securities backed by residential mortgages
ginnie mae
which type of door is prohibited for the use listed
hollow core doors, metal interior doors leading to the garage
a temperature and pressure relief valve is an important safety feature of which component of a residential building
hot water heater
usury laws that protect consumers by limiting the rate of interest that may be charged. what lenders are subject to usary laws
iNONISNTITUTIONAL nstiutional may charge any rate of interest. noninstitut make loans that are subject to usury laws, thereby limiting the rate of interest that may be charged
under what condition may a real estate licensee who is not a state certified appraiser perform an appraisal
if the valuation is not to be used in a federally related transaction
all of the following actions would be a violation of FAC 61J2 as it applies to adv except
including the brokerage name adjacent to, immediately above or below point of contact info
Which appraisal approach is used by investors when purchasing a property expected to bring a positive cash flow?
income approach
what appraisal approach do investors use to determine how much they will pay for an apartment building, office building, shopping mall, or some other like property
income approach
by definition, an institutional lender is what
institutions pool the funds of their depositors and invest the funds in real estate loans, making them financial intermediaries.
what style of window typically seen in older florida homes, has a series of small horizontal panes that open and close all at once by turning a crank
jalousie windows
a licensee who practices beyond their scope as a sales associate could be subject to a full disciplinary hearing and what other penalty for their first violation
license suspension to revocation or $250-$1000
when a seller of a home knows of facts that materially affect the value of the property, are not readily observable, and are not known to the buyer, the seller has a duty to disclose the. this obligation also passes to whom?
licensee
which type of lender, organized as either a mutual or a stock company, is the largest source of funds for financing apartment complexes and commercial properties
life insurance companies
what is one similarity between a flag lot and a key lot
may not conform to current building codes, as codes frequently specify street or road frontage at min. widths and width at the building line
a licensee attempts to negotiate a rental for a fee paid by the tenant. if the tenant applicant does not like any of the rental properties available, what are they entitled to request within 30 days of the contract date?
may request 75% refund of fee paid
when performing the data collection and analysis is to step of an appraisal, all of the following are conditions for highest and best use analysis except which one
min. productive
appraisers follow a defined appraisal process when developing and reporting their opinions and conclusions. all of these are part of that process except which one
mls search for active listings
what is the term used for someone who arranges loans by taking mortgage applications and searching for lenders who offeror the lowest interest rate and easiest borrower qualifications, without actually making any loans
mortgage loan originators- do not make loans, but rather arrange loans by taking mortgage applications and searching for lenders who offer the lowest interest rates and easiest borrower qualifications. they also charge borrowers an application fee and often earn a finders fee or commission for arranging loans.
a licensee is required to provide written disclosure, which specifies the nature of the relationship they have with a member of the public. which relationship does not require such disclosure?
no broker relationship
sales associate, chris, receives a deposit check from a buyer during the business day on monday. what must chris do
no later than the next business day. failure can result in a full disciplinary hearing and additional penalties.
which basic feature of most mortgage loans is used by the lender to cover loan costs and increase profit on their investment
obtaining income in the form of interest and finance charges on the loan, thus making the loan an investment for the lender
a(n) ___ is an asset management company that handles the entire process from the time it is assigned to a broker to the sale
outsourcer
sales assoc must accomplish all of the following before their first renewal deadline except
pass a state post licensing exam with a 75%
the plumbing system consists of water supply lines, water disposal lines, hot water heaters, and what else
plumbing fixtures (sink and toilets)
which of the following terms best describes the amount which is actually paid in a real estate transaction
price
which term represents the total amount paid by the buyer
price
where do borrowers and mortgage originators come together to negotiate terms and effect mortgage transactions
primary mortgage
alicia has 30 yr full amortizing, fixed rate loan with fixed monthly payments, each containing a principal payment portion and an interest payment portion. which statement is true regarding her monthly payments
principal payment is small, take several years for borrower to increase their equity in the property. closer to end of repayment period, borrowers equity increases much more quickly
tim and sue have the smallest home in a sought after neighborhood. the value of their home is increased because of the higher value of the other homes in the neighborhood.
progression
a variety of situations may call for an appraisal. all of these are valid reasons except which one
property lien evaluations
what is the main advantage of masonry (concrete block) exterior walls as opposed to wood framed exterior walls
provides stronger structure
if a licensee acts as an investor, the licensee must ensure that all parties are aware that the licensee is not acting as a what
real estate licensee
a lender requests an opinion of value for a bank-owned property. which valuation method would most likely need to be performed
real estate professional to perform a bpo
what should a licensee do to avoid negligence in regard to full disclosure of property issues
recommend multiple home inspections
by definition, a noninstitutionalized lender is what
relatively free of regulations. private parties, syndications, private loan companies
which brokerage relationship situation is not permitted in the following instance under florida laws and rules
representing a buyer with limited confidentiality in a single agency relationship
after the 1st renewal has been completed, what is the license status if the licensee fails to complete their 14 hours of continuing education by the 2nd renewal date
reverts to involuntarily inactive, licensee has 12 months to complete the 14 hours of CE and pay a late fee
who may directly compensate a sales associate for performing a service of real estate
sales assoc employing broker
which statement correctly describes the role of the sale assoc
sales assoc is an agent of the employing broker and acts on behalf of the broker. the broker is employed by and represents the principal
which relationship is allowed under florida real estate laws and rule
sales assoc represents a buyer or seller. but not both in a single agency relationship
a real estate licensee performing a comparative market analysis coma should base their analysis on which type of property
similar properties that sold within the last six months in the same neighborhood
which principle of value is the comparable sales approach based on
substitution
which system, referred to as an "on-demand" system, provides heated water only when needed
tankless water heater
all of the following items are components of a typical central air conditioning system, except which one
temperature and pressure relief value
which component of a residential building is considered to be part of the substructure that supports the buildings weight
the foundation
there are three mathematical methods that appraisers can employ to estimate the value of a subject property. all of these are used to apply the value except which one
the substitution cost approach
how is the loan-to-value ratio typically used for
to determine the max amount of their loans
Title XI of FIRREA requires appraisals used in federally-related transactions to be developed in conformity with which standards?
uspap