STATE PRACTICE EXAM (17)
What's the penalty for violating federal do not call rules?
A fine of $40,000 for each violation $
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?
A mete $ Metes (measures) are the direction and distance of a line forming the boundary of the property.
Which of the following best describes annual percentage rate (APR)?
A standardized measure for interest rates and other loan costs $ Regulation Z requires lenders to use a standardized measure for interest rates, which is the APR.
Alluvion describes new deposits of land that are the result of what natural process?
Accretion $
A trust involves a special relationship called a fiduciary relationship. Which of the following statements is true regarding trusts?
Any asset may be held in a trust. $ Trusts are very flexible and accommodating. Any asset may be held in a trust.
Stu is buying Freddie's property. What must occur for the transfer of title to take place?
Freddie must intend to convey the property to Stu. $ The seller (grantor) must deliver a marketable title. The grantee isn't required to sign.
Fred is an agricultural lender who helps the ranchers and farmers in his community by providing credit for purchasing land, making repairs to their buildings, and improving their agricultural property. He's able to do this in part because of the ______ offered by the USDA Farm Service Agency.
Guaranteed loans $ The USDA Farm Service Agency offers guaranteed loans to agricultural lenders.
Hannah wasn't able to get the financing to open her boutique, so her mother came on as a silent partner and provided additional cash. Hannah and her mother have an agreement that states Hannah's mother can't be held financially or legally liable if there are any problems with the store. What type of contract clause is this?
Indemnification $ Indemnifying one of the contract parties releases that party from all liability or loss.
Which of these situations addresses the fiduciary duty of confidentiality?
Jeanette, a seller's agent, tells the buyer's agent that her client must sell his home because of an illness. $
John is considering purchasing an office building and is trying to determine whether or not it's a good investment. The methods of income approach he may use when estimating the value are all of the following EXCEPT for which?
Market or sales comparison $ The capitalization method The gross income multiplier The gross rent multiplier Properties that rely heavily on rental income often use the income approach to estimate their value. Three ways to estimate value are the capitalization method, the gross income multiplier, and the gross rent multiplier.
Ovid and Rollie have entered into an installment sales contract on Rollie's property. What's likely true of this situation?
Ovid holds equitable title and Rollie holds legal title. $
Greta is working with agent Brandon to sell some property. Nelson represents the buyer, Rigby. Of these four parties, who will pay the earnest money?
Rigby $
Two essential elements of a deed are the ______.
Signature of the grantor and the habendum clause
Which statement best describes a straight loan?
The payments change over the term of the loan, generally with higher payments at the beginning of the loan term. $ With an amortized loan, the monthly payment remains the same over the life of the loan. With a straight loan, the payment fluctuates.
Sylvia, who's 15 years old, and her neighbor Marge, who's 24, agree that Sylvia will babysit Marge's toddler for the summer for $10 an hour. What type of contract is this?
Voidable $ A voidable contract appears to be valid, but one or both parties have the right to rescind the contract. In this case Sylvia can enforce the contract against Marge but Marge cannot enforce against Sylvia.
Gus has applied for a home equity line of credit from his federally insured bank so that he can make some renovations to his kitchen. The same bank is his lender for his home mortgage. Will this loan be subject to Real Estate Settlement Procedures Act requirements?
Yes, because RESPA applies to any residential loan transaction from a federally insured financial institution, including equity lines of credit. $
