Idaho Real Estate Review Questions With Correct Answers

easements in Gross are - Answer Agreements are personal in nature, does not attach to a dominant estate, rather a person or entity what type of easement attaches to the owner's land and transfers to the new owner? - Answer appurtenant easement the parcel that provides the land for the easement is the - Answer servient estate the party that uses an appurtenant easement is called - Answer dominant estate this refers to the number of lots a parcel of ground can be subdivided into - Answer gross density this is used as a transition area between two incompatible zones - Answer buffer zone if you cut down a tree in your yard and stack it up into cords of wood what has happened? - Answer severance the bundle of legal rights is part of the definition of - Answer real property how does a corporation own real estate? - Answer Severalty May the tenant restaurant owner remove a trade fixture when the lease is up? - Answer yes but any damage needs to be repaired an ice cream making machine bolted to the wall in a restaurant is an example of what? - Answer trade fixture condo ownership includes what? - Answer an undivided interest in common areas a corn crop growing out in a field is an example of a what? - Answer emblement bookshelf screwed into the wall of the family room is an example of a - Answer fixture when a grantor attests they are signing the deed of their own free will it is called - Answer acknowledgement an easement through your neighbor's land for you to use to get to the lake is - Answer an appurtenance a wife buys a home with an an inheritance. How does she own it? - Answer in severalty the term used to denote not only the land and improvements to real estate but also the intangible rights included is - Answer real property what is the area between businesses and federal wetlands? - Answer buffer zone how do you transfer personal property in a sale? - Answer Bill of sale which police power allows a city to forcibly purchase a vacant lot to build a parking lot? - Answer eminent domain what are the owners rights if they're firm zoning is changed by the county to single-family residential? - Answer their old use continues through nonconforming use Define equity - Answer the market value less the debt owed if a comparable is inferior we ________ to its value - Answer add if comparable is superior to the subject we ________ from its value - Answer subtract what is regression? - Answer when a lesser Quality Property brings down the value of a higher property what is depreciation? - Answer Loss of value for any reason. What is RESPA? - Answer Federal law regulating mortgage lending which prohibits kickbacks and undisclosed fees what is the purpose of TRID - Answer clear picture of fees amounts of prior to closing what is the difference between a freehold estate and a leasehold estate? - Answer Freehold includes rights to ownership. Leasehold involves leasing, not true ownership. what is an estate for years? - Answer leasing for a definite period of time what is a periodic tenancy? - Answer no specific expiration date, but rent is due at a definite intervals and Lease automatically renews what is a tenancy at will? - Answer no specific initial term, created by agreement, can be determined by either party what is a tenancy at sufferance? - Answer created when a tenant stays without landlord's consent after termination. No rent, landlord can treat as trespasser, begins eviction process what is a gross lease? - Answer tenant pays rent, landlord pays expensive ownership. Taxes Insurance Etc what is a net lease? - Answer -tenant pays fixes rent PLUS property costs what is a percentage lease? - Answer tenant pays rent plus a percentage of gross sales and may pay property expenses what is a variable lease? - Answer allows an increase in rent during the lease. what is a ground lease? - Answer separate ownership of land and buildings what is the reinstatement right? - Answer up to the 115th day the lender must let the borrower catch up on all back payments fees penalties and interest what is a deed of reconveyance? - Answer I recorded document that gives notice that the loan secured by the identified deed of trust has been paid in full every loan for Real Estate is made up of what two elements? - Answer a note and security instrument what does the title theory state? - Answer lender is owner until it is paid off. if you don't pay get out what does the lien theory state? - Answer mortgagor retains both legal and Equitable Title. Mortgagee has lien on property as security for the debt. what does noi stand for? And how do you get it? - Answer net operating income. Deduct the annual operating expenses from the effective gross income how do you establish value? - Answer noi / cap rate = value estimate the return per year investors are requiring in the market for those types of properties to establish a... - Answer capitalization rate what are the three approaches to value? - Answer cost, market, income what is a capital gain? - Answer a profit from the sale of property or of an investment. what is the purpose of the Idaho real estate commission? - Answer to protect the public and a regulated real estate transaction who has jurisdiction of annual dues? - Answer Board of Realtors who has jurisdiction of access to contracts? - Answer Board of Realtors what has to be presented at the first substantial business contact? - Answer agency disclosure brochure what creates an agency relationship? - Answer representation agreement who has jurisdiction of compliance with continuing education requirements? - Answer Idaho real estate commission. who has jurisdiction of mishandling of money? - Answer Idaho real estate commission what is the real estate Recovery Fund? When can it be used? What happens to licensee? - Answer 1. pay court order reparations to Consumer when agent is found guilty of fraud or misrepresentation. 2. payout of $10,000 per licensee per year 3. license suspended until debt is paid back what is a double contract? - Answer two or more Unwritten contracts of sale, purchase and sale agreements, or a loan agreements. Enables buyer to a larger loan. Enables buyer to qualify buyer for a loan that cannot obtain. do you need a license in Idaho to manage rental properties for an owner? - Answer no who has jurisdiction of enforcement of the code of ethics? - Answer Board of Realtors who has jurisdiction of enforcement of license laws? - Answer Idaho real estate commission do you need a license in Idaho to fill out a contract? - Answer depends. Are you transcribing or making decisions about the fields? Likely a license is needed do you need a license in Idaho if it is your job to buy or sell property for a company? - Answer no do you need a license in Idaho to sell your own property? - Answer no do you need a license in Idaho to practice and another state? Even if you were licensed in another state? - Answer yes. We have zero license reciprocity do you need a license in Idaho to call through contracts and make appointments for someone else? - Answer yes do you need a license in Idaho to hand out flyers about a property? - Answer no do you need a license in Idaho to let a prospective buyer into a property? - Answer no do you need a license in Idaho to discuss price and what the seller will accept? - Answer yes what are the five classes of real estate and what is an example of each? - Answer - residential- house - commercial- store - Industrial- Warehouse - agricultural- Farm - special purpose- School Church Etc when is the contract binding executed? - Answer when all parties have signed what is the key difference between a customer vs. a client? - Answer client has confidentiality and advocate do you have to run personal transactions through your brokerage? - Answer yes what education is required to renew your license? - Answer 2 core classes and 12 elective classes Idaho's right to water is determined by what? - Answer doctrine of Prior appropriation what does doctrine of Prior appropriation mean? - Answer first in time, first in right what do real estate contracts have to be under the statute of frauds in Idaho? - Answer in writing what are the three types of co-ownership and Define them? - Answer 1. tenant-in-common- separable, divisible, right of inheritance 2. joint tenancy-PITT, Unity of possession, interest, time and title. No right to inheritance. The last man gets it. 3. tenancy by entirety- co-ownership of husband and wife. Right to survivorship how would you dissolve co-ownership if parties cannot agree to terms? - Answer partition suit dying without a will is known as... Property to heirs after estate has gone through what? - Answer intestate, probate dying with a will is known as... Property distributed two heirs after a state has gone through what? - Answer testate, probate if one dies without a will and without any heirs, the property, real and personal, wood what to the state? - Answer escheat The Taking of private land for the good and benefit of the public is a police power known as what? - Answer eminent domain to qualify for the Homeowner's exemption in Idaho, it must be a _____ residence and you must live there more than ______ months in a year. - Answer primary, 6 how often do you need to renew your real estate license? - Answer every two years how is your first license period determined? - Answer based off of your birth month and when you get licensed Idaho property taxes will be paid when? - Answer first half, December 20th second half, June 20th to have a valid contract in Idaho you must have the following elements: - Answer 1. legally competent parties 2. of legal age in mental capacity 3. meeting of the minds 4. Legal Objective 5. enforceable legal description 6. legal consideration 7. written document signed by all parties 8. reality of consent (no duress or coercion) how are continuing education classes different in your first license period? - Answer first cycle electives equals post license education if you live by a flowing river, you have ______ rights. - Answer riparian if you live along a lake, you have _______ rights. - Answer littoral to terminate a contract in Idaho... - Answer - assigned to another all or part of your interest. Terminates original agreement - by agreement what would trigger a breach-of-contract? - Answer buyer finds a better property and walks 2 weeks before closing in Idaho when husband and wife hold property, it is what type of co-ownership? - Answer community property what are possible outcomes because of a breach? - Answer 1. rescission, sets parties back to original position. 2. suit for specific performance, lawsuit to compel party to comply with contract 3. liquidated damages, Financial consideration for harm due to breach of contract 4. actual damages, Financial Awards granted for the true amount of Damages inflicted upon a party what does time is of the essence mean? - Answer pay attention to deadlines is Idaho a lien theory state or a title theory state? - Answer lien theory state true or false? Adverse material facts must only be disclosed to clients, and there's no duty of disclosure to customers. - Answer false what is commingling, and is it legal? - Answer mixing of money's coming into your possession. Other people's money and personal accounts. not legal in Idaho, when is a mortgage required vs. a deed of trust? - Answer must use a mortgage on properties 40 acres or more any housing built before 1978 is known as Target housing for what? Must be disclosed. - Answer lead-based paint an agreement to loan $50,000 or more must be in ____ to be enforceable under the _____ in Idaho. - Answer writing, statute of frauds when the length of the life estate is determined by someone other than the life tenant. - Answer Pur autre vie when is the National flood insurance program required? - Answer 100-year floodplain, using federally related mortgage can a seller fire a broker? - Answer yes. But may be liable for damages. which legal description has a point of beginning and monuments? - Answer metes and Bounds what are amortized loans? - Answer pays off debt by making periodic and regular installment payments of principal and interest how many sections are in a Township? - Answer 36 what are the four trigger words? - Answer 1. APR 2. down payment 3. payment amount 4. terms a buyers loan will show as a what to the buyer on a closing statement? - Answer credit how many acres are in a section? - Answer 640 in short sales, how long do lenders have to seek a deficiency judgment? - Answer 5 years what is the Redemption period For a property 20 acres or less? - Answer six months after sale what is the Redemption period For a property 20 acres or more? - Answer 12 months after sale how many linear feet are in a mile? - Answer 5,280 how many square feet are in an acre? - Answer 43,560 on a deed, how can you identify the habendum clause? - Answer to have and to hold what is the defeasance clause? - Answer requires lender to release their interest when paid in full does a quitclaim offer protection? - Answer no what is the seller required to deliver to the buyer under a typical sales contract? - Answer clear and marketable title what is hypothecation? - Answer Pledging property as collateral what does CMA stand for? - Answer comparative market analysis what is a discount point? - Answer prepaid interest equaling 1% of the loan amount what are loan origination fees computed off of? - Answer loan amounts, not sales prices what are Usery laws? - Answer legal limits on interest rates. Idaho is 12% the income approach is based on the current value of rights to the _____ income. - Answer future cost approach would be most applicable in a new structure built appraisal or a custom structures such as what? - Answer museums, factories, Etc. Used also when comparables do not exist. this is used as a transition area between two incompatible zones - Answer buffer zone the parcel that provides the land for an easement is the - Answer servient estate these Agreements are personal in nature, does not attach to a dominant estate, rather a person or entity - Answer easements in Gross access created by the courts to Grant a landlocked owner access is - Answer easements by necessity