Rockwell Cram Exam #2 Questions and Correct Solutions Rated A+

Which of the following people might bring a suit for specific performance? - A buyer in a real estate transaction in which the seller backed out one day before closing Once a lender issues a veteran a VA-guaranteed loan, the veteran: - immediately becomes liable for the guaranteed amount A property manager decides to offer some additional services beyond what is specified in the property management agreement. She may do so after: - the management agreement is amended in a writing signed by the owner and designated broker An optionee's rights can be assigned under all of the following circumstances, except when the: - option money is in the form of a promissory note Five people buy an investment property. They take title so that they each have equal ownership shares, and so that if one of them dies, his share will pass to his heirs. How did they take title? - Tenancy in common For income tax purposes, a homeowner can deduct: - property taxes An Asian-American buyer asks to be shown homes that are located in neighborhoods that he knows are primarily Asian. If a real estate agent complies with his wishes, this is: - legal, as it is done at the buyer's request A seller finds that he cannot provide marketable title because of a cloud on the title. To clear the title, he should file a/an: - quiet title action A broker would need to have a securities license to participate in: - a transaction involving an investment contract A buyer who records a deed is giving: - constructive notice A veteran's guaranty benefits may be restored by a: - substitution of eligibility/entitlement by another veteran assuming the loan John leases a commercial property. In the lease, he agrees to pay part of the utilities and taxes, as well as a fixed monthly rent amount. This is a: - net lease A quitclaim deed conveys: - the grantor's interest in a given property, if any The entity that determines the maximum number of people who may legally live in a rental unit is the: - local health department and zoning authority On a settlement statement, the seller's net proceeds are calculated by: - subtracting the seller's debits from the seller's credits Which law prohibits discrimination in real estate transactions based on race, with no exceptions? - Civil Rights Act of 1866 If a buyer wants to protect herself against unrecorded encumbrances, she should: - request a title insurance policy that has the fewest exceptions A minor leases an apartment right before he turns 18. Immediately after he reaches the age of majority, he contacts the landlord and says he's terminating the lease. Which is true? - This is possible because he is doing so within a reasonable amount of time after having reached the age of majority An owner-occupied property qualifies for its state's homestead exemption from property taxes. Shortly after closing, the new assessed value of the property is issued, and the property tax amount increases significantly. The selling agent is obligated to: - do nothing The purpose of a building code is to: - provide minimum standards for construction Which of the following methods would be most appropriate for valuing a recently built, single-family home? - Market analysis and replacement cost For how long is a deed restriction valid? - Potentially forever A ten-year-old home cost $120,000 to build and the land it's on cost $20,000. If an appraiser finds that depreciation has averaged 1.5% per year, what is the total amount of depreciation on the property? - $18,000 A seller and a brokerage firm sign an exclusive listing agreement. The listing is set to expire in three months, but after a few weeks, the seller decides she doesn't want to sell at all. Which is true? - The seller can revoke the listing but may be liable to the brokerage for damages An appraiser is valuing a commercial property that contains a restaurant run by the property owner. Which method of valuation would be most appropriate? - Income Sonya buys a parcel of land and pays taxes on it for five years. After she builds a home on it, the taxes she'll pay are: - ad valorem taxes A buyer and seller sign a contract for deed. Two weeks later, the buyer is declared mentally incompetent. The buyer's guardian contacts the seller and says that he can continue to make the buyer's payments as agreed. Which of the following is true? - The buyer can finish out the contract as the buyer's guardian has proposed A real estate licensee is performing a competitive market analysis. He locates a comparable property that is slightly older than the subject property. The age of the comparable makes it worth $2,000 less. The comparable has a small porch worth $1,000 that the subject property lacks. If the comparable sold for $269,500 recently, what is the estimated value of the subject property? - $270,500 Which of the following situations would be exempt under the Fair Housing Act? - The owner of a fourplex lives in one unit and refuses to rent the other three units to students because of their national origin