REESA Sections 6-10
Rhonda is a unrepresented buyer who's purchasing Tony's townhome. Gary represents Tony in the sale of his property. What's Rhonda's relationship to Gary?
A customer
Lisa is holding an open house for her client, Tim. Several couples stop by. Aarthi and Ram don't interact with Lisa at all. Gina and Reggie talk with Lisa about the property; they're not working with another licensee. Marcus and Marvin stop by and talk with Lisa about the property; they're already working with another licensee. Which parties are considered consumers at this point?
Aarthi and Ram
Which of the following is true regarding the definition of agency?
Agency describes the relationship between the real estate professional and the person or persons being represented
Buyer April is interested in Wayne's condo. Steve represents April, and Wanda represents Wayne. Who are the principal(s) in this sales transaction?
April and Wayne
The four phases of an environmental assessment include investigation, testing, and management. Which phase is missing?
Cleanup
Which of the following actions is a licensee require to take to fulfill duty?
Disclosure personal interest and licensed status when buying property for personal use
Which of the following situations is an example of a non-agency relationship?
Dutton was previously a licensee. He's selling his home, and he wants Wanda, who's currently licensed, to assist him with the paperwork.
In general what is the term for a person who's been placed in a position of loyalty and trust?
Fiduciary
Which of the following are included in the transfer of real property unless specifically excluded in writing?
Fixtures
Which of the following would be considered personal property?
Free standing tv
Angel's credit card company sued him in civil court for nonpayment. There was a judgment against him, and so now Angel has to sell his classic car and his primary residence to pay the credit card company. What type of lien did the company have?
General
One of Jackie's creditors sued her in civil court. As a result of the judgment against her, her house, car, and art collection were all subject to sale in order to pay the creditor. What type of lien is this?
General
What do laws use as their guiding principles?
Generally accepted ethics
Mark has been openly using a property without the owner's permission for the last 30 years. What else must he do to meet the adverse possession requirements?
Have a reasonable belief in his right to possess the property.
Christy found a property that was For Sale by Owner and made an offer. The seller accepted Christy's offer, but neither of them knew how to proceed. Licensee Zelda helped Christy complete the necessary purchase documents and walked her through the process. What kind of agency exists?
Implied agency
Max has a written agency agreement with Rufus in which Max will receive all of the listings in the subdivision that Rufus purchased (with Max's representation) and is developing. One day when Rufus is visiting the site of the subdivision, a work truck accidentally runs him over and he's seriously injured. Rufus can no longer run the development of the subdivision. What happens to Max's agency coupled with interest?
It's still in place because it doesn't terminate on the death or incompetence of the principal.
Sam and Bridget are cousins who jointly own property. They are both named on the deed, they received title at the same time, they have the right of survivorship, and they each have equal interest and undivided rights of possession. What type of ownership do they have?
Joint tenancy
Which form of real property ownership (for owners other than married couples) means there's equal ownership shares with undivided possession rights?
Joint tenancy
The doctrine of "use it or loose it" is known as the doctrine of
Laches
Which of these statements about the Superfund Amendments and Reauthorization Act (SARA) is true?
Landowners who perform due diligence when purchasing a property, including a Phase I site assessment, may be immune from liability if the property is found to be contaminated.
Layla, a licensee, has had a few casual meetings with a potential client, Marcus. Marcus has told Layla the type of home and locations he's interested in. Layla has mentioned a few homes that she thinks Marcus might be interested in. Although Layla hasn't said that she will continue to look for homes for Marcus, Marcus believes she'll do just that. Which of these statements about this situation is correct?
Layla's actions may have created an implied agency agreement with Marcus.
Stan and Emile are arguing over their shared lot line, since Stan thinks that Emile planted a privet hedge on Stan's property. Stan filed a civil legal action against Emile. What will the court use to determine the actual lot line?
Legal descriptions of both properties
Morty, a land surveyor, was called out to survey a property. After doing some research, he located the legal description for the property in question. Now, if he could just find the point of beginning located at the iron pin on the southerly line of state route 117, 30 feet east of the oak tree next to Bear Creek. What type of legal description is Morty working with?
Metes and bounds
Which types of REITs don't buy properties, but instead invest in real estate debt?
Mortgage REITs
In which of these situations has the licensee compromised the duties of loyalty and disclosure?
Nate didn't tell his client about a conflict of interest related to the sale of the client's property.
Zack represents a seller and receives an offer through another agent. The offer is higher than the listing price. The property is already listed at a very high price, and no other offers have been received. Is Zack obligated by his duties to the other party to disclose that the offer is too high?
No, his fiduciary duty is to his own client. The buyer's agent must be responsible for advising on a fair price for the property.
Tabitha listed her property for sale, but it's been on the market for several months with no offers. She decides to terminate her listing agreement and rent the property out instead of selling it. Assuming that her listing agent has fulfilled all of his responsibilities under the contract, can Tabitha terminate the contract before its expiration date?
Only if she and the listing agent mutually agree to terminate the agreement.
Jamie owns a lakeside home. Over a period of years, the water has receded quite a bit, doubling the size of the sand beach on his property. What's the name of this process?
Reliction
Which federal regulation specifically protects our nation's rivers and harbors??
Rivers and Harbors Act
Madeline works for a single-agency firm. If she wants to represent both the buyer and seller in a transaction, what must she do?
She can't do this at her firm.
Which of these tasks that Jenna performs does NOT represent the fiduciary duty of accounting?
She discloses the terms of the listing agent's compensation to her client.
Marcus listed his property with Home Sweet Home Realty and one of its listing agents, Ron Savage. About a month later, Ron filed for bankruptcy. Which of the following statements about this situation is true?
The agency agreement only terminates if the broker or the principal declares bankruptcy.
In which of the following listing agreement terminations is least likely to be a penalty for terminating the agreement?
The client and agent mutually agree to terminate the listing
If property is held by two or more owners as joint tenants, the interest of a deceased co-owner will be passed to
The heirs of deceased
Which of the following is true about adverse possession?
The possessor must take legal action to obtain title
A living trust differs from a testamentary trust in that a living trust is established to convey property as well as to ______.
Transfer ownership before death and avoid probate
Darren set up a land trust so that his children could benefit from his real estate investments after he dies. He asked his financial advisor Tom to manage the trust. Darren is the ______.
Trustor
What the definition of a group home?
A facility where unrelated adults live
Which of the following statements about material facts is true?
A material fact may have more or less effect on a buyer based on the buyer's needs and values.
Sondrine's beach cottage has a right of way that allows nearby residents to get to the beach. What is the primary difference between a right of way and an easement?
A right of way provides a pass-through, but not a right to use the property.
What's and environmental impact statement?
A written statement used to consider ways to minimize a project's negative impact on the environment
Which of these is the best example of an estate from period?
After Morgan's one-year lease expired, he continued to lease the property with no defined end date?
To whom must a licensee, representing a buyer, disclose agency status?
All parties in the transaction
Sherman, who owns property in a life estate, neglects the property, significantly diminishing its value. This is called ______.
An act of waste
Amber is a new licensee in Alabama. She's having trouble getting her sales off the ground, so she's considering offering commission rebates or holding a lottery. Which of the following is a true statement?
Any type of rebate or lottery related to a real estate transaction is always illegal.
Allen and Lewis are friends who each recently purchased real estate. Allen purchased a patio home in a small town an hour from the city, while Lewis purchased a condo in a really hot area near the city center. Although they paid similar amounts for their properties, Lewis' condo is worth much more two years later. Which economic characteristic does this demonstrate?
Area preference
Ken, Barbie, and Skipper owned a property as a joint tenancy. When Skipper moved out of state, she sold her interest to Midge. Two years later, Ken died. How is the interest in the property divided?
Barbie owns two-thirds, and Midge owns one-third.
Jackson Elementary School is undergoing some major renovations during the summer while school is out of session. The renovation crew has a detailed list of requirements for the disposal and drainage of wastewater and sewage. These requirements are likely part of the ________ with which the renovators must comply.
Building code
One area of town has maximum building height requirements and setbacks for the front, side, and rear yards. These requirements are all indicative of ______.
Bulk zoning
Witch one of the following says that real eat acquired by either spouse during a marriage (in most cases) is considered community property?
Community property rights?
What does the metes and bounds system use to develop a property's legal description?
Compass headings and directions
Which of the following is considered a universal agent?
Conservator
When referring to private land use restrictions, fence height, additional structures, and architectural design are generally categorized under
Covenants
What are emblements in real estate?
Cultivated crops
John and Tara have lived in their home for 23 years and are excited to move to Florida for retirement. As homeowners, which right allows them to sell their home?
Disposition
Which of the following risk prevention measures may help to eliminate misunderstandings between licensees and clients?
Documentation
Howard passed away last year. His estate included investments and two apartment buildings. What type of estate does his wife Julia hold relative to the apartment buildings?
Dower
Which written statement will be used to consider ways to minimize a project's negative impact on the environment?
Environmental Impact Statement
Which type of REITs specialize in owning certain building types, such as apartments or office buildings?
Equity REITs
Jonathan has come up with a plan. He's going to offer to buy property belonging to his neighbor, who's struggling financially, collect rent from his neighbor, and not make the mortgage payments. He'll rake in the rent until the bank forecloses. Which type of mortgage fraud scheme is this an example of?
Equity skimming
What did the Resource Conservation and Recovery Act authorize the EPA to do?
Establish control of all aspects of hazardous waste
Which act creates an agency to investigate antitrust practices?
Federal trade commission act
Your clients, the Harpers, live in Area B that's adjacent to Area C; Area C was recently downzoned. If the Harpers believe the rezoning has harmed their property values, what can they do?
File a claim of inverse condemnation.
Which of the following would describe an item that is both a fixture and a real property?
In-ground
Which term best describes the transfer of land through eminent domain or condemnation?
Involuntary alienation
Which of the following is true about the Clean Water Act?
It establishes quality standards for surface waters
What role does the Brownfields law play in the assessment and clean up of unsend commercial/industrial sites that may contain hazardous waste?
It provides funds
Avery, who holds a life estate with remainder interests, dies without heirs. When this happens, what happens to the property?
It reverts automatically to the person holding the remainder interest.
In most cases, what type of agent is a real estate licensee when working with a client on a real estate sale?
Limited or special
Harmony is looking at the legal description on her purchase contract. It mentions that the plat of her property is recorded in Map Book 12, page 14, at the county courthouse. What type of legal description is this?
Lot and block
What type of legal description do courts prefer?
Lot and block
What must a license do when preparing a CMA for a consumer
Make a statement that the opinion isn't an appraisal.
The Morris family home went into foreclosure December 15, 2016, and sold January 1, 2017. Their contractor had begun work on May 15, 2015, and was not paid, and finally filed a mechanic's lien on October 1, 2016. What date will be used for lien priority for the mechanic's lien?
May 15, 2015
When Shauna looked at the legal description of the property she was interested in purchasing, she read the following: "Beginning at the corner of State Route 61 and Hallowell Road, north for 314 feet, then southwest for 193 feet." In this description, what does "north for 314 feet" represent?
Mete
If the land is described as "Beginning at the great oak 60 yards from the center of the Rock River that runs north to south through the county," what type of legal description is being used?
Metes and bounds
Which one of the following statements about community property rights is true?
Nine states have community property rights.
Five competing brokerage firs in the same area agreed to cooperate in setting a standard commission rate for the area. This makes them guilty of a per se antitrust violation. What is a per se antitrust?
No intent needs to be proven
Which of these is considered an offer-related violation in Alabama?
Not providing all written offers to the seller for consideration.
In what way is a townhouse similar to a single family-detached home?
Ownership includes both the structure and the land.
Ken, Dale, and James are brothers who own more than 100 acres as tenants in common. The relationship between Ken and James disintegrated, and so James initiated a lawsuit. The end result is that the court gave each brother a designated set of acres to own. What was granted by the court?
Partition
Licensee Dionne pointed out to her buyer client the items in the house she was showing that would be considered real property. What is one of the key characteristics of an item that is real property (also known as a fixture)?
Permanently affixed to the property
Beneficiary interest in land that's part of a land trust is considered ______.
Personal property
Peter wants to set up a land trust so that his children can benefit from his real estate investments after he dies. He asked his financial advisor Tom to manage the trust, and Tom agreed. How is the trust created?
Peter conveys the real estate to Tom.
Government agencies usually become involved during which phase of environmental assessment?
Phase III: Clean-up
When Emma turned 70 she sold her ranch home and moved to a senior living community. Her one-bedroom apartment is on the third floor of a building that houses a fitness center, convenience shop, music room, and café on the first floor. What type of facility is this?
Planned Unit Development
A drawing prepared by a surveyor showing the layout and location of a tract of land, including boundaries, designations of lots and blocks, and names of streets, is called a ______.
Plat
What does the lot and block system use to develop a property's legal description?
Plat references
Which of these actions violates the NAR code of ethics?
Preparing a written agreement that falsely states a purchase price
A consumer is moving to a new area and uses social media to try to line up a real estate professional to help him find a new home. He asks how much he'll need to pay his licensee. One firm he contacts tells him that all licensees in the area charge at least 2%. What antitrust violation does this imply?
Price fixing
Tammy and Reginald bought a house with a gas line easement on the property. An easement like this one placed by the utility company is an example of a ______.
Private land control
Which of the following is a legal term that can mean the right to take products out of the soil
Profit
A property has just been foreclosed on. Which of the following describes the rules regarding lien priority?
Property tax liens take priority, with all others following a "first in time" rule.
Which of the following may inverse condemnation?
Property values decrease because adjacent property was rzoned
Jess has permission to live on his father's property as long as Jess' grandmother is alive. This is an example of which type of life estate?
Pur autre vie
What's the best definition of real property?
Real estate, plus all of the interests, benefits, and rights included in ownership
Ron's company leased a building so that they could build an escape room experience. After operating for two years, their attendance (and thus their profits) started to drop significantly, so they decided it was time to close the location. When they started taking down the installation, they realized that some of the structures they built will damage the walls if they try to remove them. Which of these is true about these trade fixtures?
Ron may take the fixtures as long as he repairs any damage caused by removal.
Rhonda and Oliver bought an old schoolhouse with the hope of transforming it into a residence. They owned the property as joint tenants. After Oliver died, how did Rhonda own the building?
Severalty
What type of lien funds public property improvements?
Special assessment
What kind of tax could be levied on property owners for a public project that benefited the property owners only in that district?
Special assessment tax
Nellie and Victor own a suburban ranch home and fell behind on paying their property taxes when Victor lost his job last year. Victor is working again, but they still haven't saved enough to pay their back taxes. They're worried that the county may begin foreclosure proceedings. What type of lien is this?
Specific Property tax liens are specific, because they represent a lien against a specific piece of property.
The Simpsons are buying a five-acre tract that has always been part of a larger parcel. When the owners of the large acreage decided to subdivide it, they needed to have a legal description created for the five-acre lot. What was used as the starting point for creating that legal description?
Survey
Which type of ownership includes unity of time, title, interest, possession, and marriage?
Tenancy by the entirety
Eva, Stella, and Lynn own a vacation home two blocks from the beach. Sadly, Stella passed away this winter, and so when summer arrives Eva and Lynn will be sharing the home with Stella's nephew Drew, to whom Stella willed her share of the property. What type of ownership is this?
Tenancy in common
Which one of the following types of ownership termination allows each tenant to have specific, dividend portion (partition) of the property exclusively?
Termination of co-ownership by partition
What needs to happen for a code of ethics to be affective?
The code needs to be enforced through consequences.
In the consideration of real property and personal property, severance is
The process of removing a fixture before agreement or after negotiation, to designate it as personal, rather than real property.
Simon is a buyer represented by Peter. Peter shows Simon several homes currently on the market. What is Peter's relationship to the sellers, if he doesn't represent them?
The sellers are Peter's customers.
XYZ Trust would like to sell its property. Which of the following is the legal title holder?
The trustee
Which of the following is true about air rights?
They allow the owner to use the open space above buildings.
Eminent domain and condemnation occur when the ___ of the land is involuntary.
Transfer
If the responsible parties resides to clean up hazardous contaminations, the EPA can hire its own contractors and seek damages in court for
Up to three times the actual clean up cost
Regarding documentation, which of the following actions can help a licensee avoid being accused of unauthorized practice of law?
Using approved fill-in-the-blank forms
Hope's mortgage created a lien against the property she purchased with the mortgage. What kind of lien is this?
Voluntary A mortgage is a voluntary lien. With voluntary liens, people agree to have the lien placed against their real or personal property.
Jenna owes the commission some money. She doesn't have enough money in her account right now to cover the fee, but she'll get paid in a week. However, if she waits until then to pay, she'll have to pay a late fee, as well. Jenna has some options. Which one violates license law?
Write a check now. When it bounces and gets returned to her in a week, she'll have the money.
Ricky is working for Matt, a buyer client, who is interested in a property at which the listing agent offers compensation to cooperating agents. The listing agent has offered Ricky or any cooperating agent additional compensation if the transaction closes within 40 days. Is this ethical?
Yes, but only if all of the involved parties have full knowledge and provide consent.
Which of the following is an example of a fee simple freehold estate?
Your ownership can be passed down on to your children.
An underground storage tank has been in place for 15 years. What is its remaining useful life, on average?
Zero years
