Real estate test review

A lot has dimensions of 80 by 100 feet. You wish to totally enclose the back half of the lot with a fence. How many feet of fencing do you need to buy?

100/2 = 50 50 + 50 + 80 + 80 = 260

Using the gross rent multiplier of 120, what is the value of a property that produces 12,000 annual income

120,000 (12,000/12 = 1000 times 120)

A broker may hold earned commissions in his or her escrow account and not be guilty of commingling, provided that such money is removed from the escrow account at regular intervals not to exceed

180 days

Current tenants of a property being converted to a time-share project must be provided with: Select one: a. 30 days' notice of intent to convert, 30 days to contract to purchase unit. b. 30 days' notice of intent to convert, 60 days to contract to purchase unit. c. 90 days' notice of intent to convert, 60 days to contract to purchase unit. d. 90 days' notice of intent to convert, 30 days to contract to purchase unit.

90 days notice of intent to convert, 60 days to contact to purchase a unit.

The best interest of the seller and continue to presents offer

An agent of the seller must act in

Which of the following best describes the difference between exclusive right to sell listing versus an open or an exclusive agency listing?

An exclusive right to sell guarantees The broker a commission if sold.

A lender requires 3 months in reserve interest if a loan is made for 860,000 at 8 1/2% how much interest will the lender required for reserve?

Annual interest (860000 x 8.5%) monthly interest - annual interest (73100 divided by 12) reserve - monthly interest (6,091.67 x months (3) = 18,275

A licensee is obligated to do all of the following for a customer except

Assist with negotiation of a contract.

Records of transactions and closings which a broker maintains in accordance with the real estate board regulations must:

Be made available for inspection by the representatives of the real estate board. Only needs to be there for 3 years.

A homeowner sells his principal residence for a profit. Under which of the following circumstances may the homeowner avoid paying taxes on the profit realized from the sale?

By using the tax exempt 250,000 exclusion for a principal residence. No taxes due if Owner avoids paying taxes on the first 500,000 of profit if married or 250,000 if single

A promissory note must contain all but...

Description of the collateral.

Fraud is intentional

Difference between fraud and misrepresentation

What is the margin of an ARM (adjustable rate mortgage)?

Difference between the index and the note rage.

2 years

Discrimination claims must be field with federal district court within

Advise the Baird in writing about a move within 30 calendar days of the change

Ed a licensed salesperson, moved to a new home. What is he required to do?

The Virginia time share act defines a time share as a right to occupy a unit or any of several units during:

Five or more separated time periods over a period of at least five years coupled with either a freehold estate or an estate for years in a time share project.

Which of the following is usually contained in an appraisal report?

Highest and best use.

Special Agent (Real Estate Agent)

Hired on a one time basis.

Send copies of charges go home address of the salesperson.

If you violate the license law, the real estate board will...

Regulation Z

Implements the Truth in Lending Act requiring credit institutions to inform borrowers of the true cost of obtaining credit. It requires the disclosure of the APR.

Virginia Residential property disclosure act

Imposes property disclosure obligations on sellers and licensees (to inform sellers of these regulations), which are in addition to the agency duty to disclose material facts. Commercial buildings do not fall under this.

A licensee real estate salesperson may be which of the following?

Independent contractor, employee of the broker, and paid either on a salary or on commission.

A buyer is considering the purchase of some vacant land. The buyer notices a well worn path near the edge of the property line. What type of notice would this buyer have regarding an easement across the property?

Inquiry notice

What is prohibited by respa?

Kickbacks

If a person who has the right to make a claim against another, but does not do so within a reasonable period of time, a court could determine that the person has lost their right to any claim. The denial of the claim is an application of the theory of:

Laches

Depreciation can be claimed on all of the following priority expect:

Land (never depreciates)

Federal regulations

Lending institutions are controlled by...

Marketing plans and pricing schedules.

Marketing plans and pricing schedules for becoming a condominium does not need

Principle of Substitution

No person is justified in paying more for a property when a similar property can be purchased for less - sets an upper limit on price

Pete purchased a home from Tony. He did not record his deed, but took immediate possession. Tony died a few months later and according to the terms of his will, the property was to go to his nephew, Bob. Bob knew his friend Angela was interested in buying a house. They inspected the property and Angela agreed to buy it from Bob. Angela recorded her deed. Who owns the property?

Pete, because he purchased it from Tony

If the loan-to-value ratio is 80% and the buyer puts 20% down and pays 1,000 in cash for 2 points, what is the sales price?

Point is 1% of the loan. 1,000 paid for points divided by 2% is 50,000 loan amount. Divide 50,000 by 80% is 62,500

Sophie and William build a home at a cost of 250000 in a neighborhood where the other properties are bleed in the 125000 price range. Their home will tend to decrease in value and the others tend to increase in value. This is an example of the appraisal principle of:

Progression and regression

Quincy sold Ralph a piece of property and transferred title to Ralph by quitclaim deed. Some time later it was determined by a court that Quincy did not own the property. Which of the following is true in this situation? a. Ralph owns the property because the court action was after he bought the property. b. Ralph has no interest in the property. c. Ralph can sue Quincy for misrepresentation. d. The court will order Quincy to return the money to Ralph.

Ralph has no interest in the property.

If the Board receives a written complaint regarding the actions of a regulant, what is the first thing the Board will do?

Review the complaint for possible violation

A buyer and seller have entered into a valid contract. Which of the following would have no legal effect on the contract?

Seller dies prior to closing

Yes he did not follow instructions.

Seller gives a broker instructions and the broker did not follow them. Did the broker do something wrong?

Novation

Substituting a new obligation for an old one or substituting new parties to an existing obligation.

Which of the following is not essential to a valid sales contract?

Termination date.

Virginia Residential Landlord and Tenant Act (VRLTA)

The VRLTA establishes the rights and obligations of landlords and tenants in Virginia. The VRLTA supersedes all local, county, and municipal landlord and tenant ordinances. It also prohibits certain lease clauses. The VRLTA covers most residential rental agreements. Security deposits are to be refunded in whole or in part within 45 days following termination of a lease.

If a motel clerk furnishes a broker with leads to prospective buyers in exchange for a percentage of the commission collected, which of the following would be true?

The clerk must be licensed as a broker.

seller of the listed property

The client in a listing agreement would be the

The listing contract signed by the parties

The commission paid to the broker is determined by

Seller. Nothing happens to the buyer

The grantors tax is paid by the...

20.00

The maximum that one licensee may be assessed during a two-year period according to the transaction recovery fund.

A broker is given a listing agreement to sell property in Virginia. The seller is considered, by the broker, to be:

The principal to the transaction

Seven licensed brokers or salespersons and two citizens

The real estate board consists of

A tenant and landlord enter into a six month lease on July 1 20xx to expire on dec. 31 20xx. Which of the following statements is correct?

The tenant may vacate the property on December 31st without notice. Lease automatically ends with a termination date

An estimate of the value

The value of property established by an appraiser is only ever...

Marital status

This is not protected under the Virginia fair housing act

sexual orientation

This is not protected under the fair housing laws in Virginia

A attorney not a broker.

Title validity required a legal judgment and should be fine by

When a consumer signs a note that places a lien on his or her property, the owner, in certain instances, has the right to rescind the agreement within 3 days, without penalty. The right is provided to the consumer by virtue of which of the following laws?

Truth in lending act

buyer receives equitable interest to the property and possession at settlement.

Under contract for a fee, the buyer

Investor must hire a broker to manage the business

Unlicensed investor plans to open a real estate brokerage business. It will be operated as a sole proprietorship. What needs to be done?

55 or older

Virginia defined elderliness at...

More than one firm. Under no circumstances is it allowed.

Virginia law prohibits being licensed with

Interest on the mortgage notice

What can a homeowner legally deduct on his or her personal income taxes?

The most restrictive will take precedence. Deed restriction takes precedent.

When a deed restriction disagrees with zoning laws...

Wilma lists her house with Broker Fred under an exclusive right-to-sell agreement. Fred later abandons the listing. Which of the following statements is true about this situation?

Wilma may terminate the listing

Parol evidence rule

Written agreement overrides previous oral agreement

Application or lease, whichever happens first

Written discolored of a brokerage relationship is required at the time of

The tenant of an apartment entered into a 1 year lease on July 1 2002 and gave the owner a security deposit. On October 31 2003 the tenant vacated the apartment. is the tenant entitled to interest on the security deposit and if so, how much?

Yes, 16 months interest.

A property sells

You don't earn commission until

Covenant of Quiet Enjoyment

a promise that the grantee that no one has any other interest in the property that will disturb their posssession of the property

A buyer's agent was showing a buyer a property that was listed for sale. No dual agency existed on this transaction. The seller would be considered a:

customer of the buyer's agent. If no dual agency exists, then the buyer`s agent must be an agent of the buyer only, making the buyer the client and the seller the customer.

When will a deed restriction take precedence over a zoning ordinance?

if the deed restriction is more restrictive

In order to claim depreciation on a property, the property:

must be improved. Only improvements depreciate.

An out of state owner calls a broker wanting to sell his property for $50,000. The broker knows that zoning has recently been changed and the property is now worth $75,000. The broker does not inform the seller. Is this legal?

no, the broker must inform the owner of the zoning and increased value

Three people own a piece of property as tenants in common. Two of the owners want to sell the property, but the third party does not. The two owners that want to sell could file a suit, against the third, for:

partition - used in tenants in common to partition the property.

Value

present worth of future benefits

One of the functions of the fha is

provide insurance protection to lenders

It may be assumed that a deed has been delivered and accepted if it has been:

recorded

Difference between void and voidable

void is null and done through legally, voidable - the ability to be able to void if needed such as being drunk at the time of signing

Cost Appraisal Approach

-what's the cost to replace the property? Used for special purposes like library school or fire station

Latent defect

A defect that is not obvious or cannot readily be ascertained.

Open-End Mortgage

A loan containing a clause which allows the mortgagor to borrow additional money without rewriting the mortgage.

Market Data Approach

A means of estimating value by comparing similar properties. Used when there is an active market and where comparables can be identified. Also called comparable sales approach. Substitution is the core of this

The property owner

A property management contract is between the property manager and

Three years after the lien is field. Property may not be sold until this time has passed.

A property may be sold to satisfy a real estate tax lien

A new residential development requires that all single family houses have a 20 x 22 attached garage. This requirement is an example of:

A restrict covenant

Different lien position.

A second mortgage must have this

Fee simple estate because only those holders can place deed restrictions.

Agnes has an interest in property and by virtue of her interest she may place deed restriction on the property that will apply to any future owner. Her interest is...

Begin and end at the same point

All metes and bounds descriptions must...

A broker has received an earnest money deposit to support a valid contract. If the contract is breached and does not close, the broker is required to hold the escrow funds until...

All principals to the contract agree to the intended distribution. All parties must agree.

When more than one piece of property is pledged as collateral to secure a loan what type of mortgage is this

Blanket

Broker does something without the owners permission like put a sign on property

Board regulations are violated when a

Are subject to audit by Board investigators

Board regulations require the complete records of real estate transactions.

Which type of agency relationship is specifically designed to address the issues involved in in house sales?

Designated agency (in house sale is for both buyer and seller)

An owner listed a farm with a broker. Although the owner did not mention it, the broker knew the owner was in poor health. What should the broker tell potential buyers?

Don't tell them anything because it would reduce the seller's bargaining leverage.

The intent behind the statue of frauds is to:

Put real estate transactions in writing.

Endorse check and give it to broker.

Receiving a commission of valuable consideration from anyone other than his employing broker is a violation of the real estate board regulations so

Civil rights act of 1886

act giving African Americans the same legal rights as whites. Have to sell to anyone regardless of race.

A salesperson represents the:

broker