Colorado psi real estate practice test accurate 100%(RATED A+)Colorado psi real estate practice test accurate 100%(RATED A+)

Legal descriptions using the government survey system are NOT generally used in - ANSWER the original 13 states. Real property can be converted to personal property by - ANSWER severance A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want to make the permission permanent in case he dislikes others who might move next door in the future. What should he give his neighbor? - ANSWER A license. A broker hires a salesperson as an independent contractor. In order for the salesperson to be considered an independent contractor for federal income tax purposes, the broker's written contract with the salesperson MUST specify - ANSWER that the salesperson will not be treated as an employee for federal income tax purposes. The main difference between tenancy in common and joint tenancy is that with tenancy in common, when a co-owner dies, - ANSWER his undivided interest passes to his heirs. A property is encumbered by a first mortgage of $60,000 and a second mortgage of $23,500. The property has just been sold at a foreclosure auction to a speculating investor for $88,000. Assume that all costs of the foreclosure sale are included in these balances. Which of the following statements is FALSE regarding the distribution of funds? - ANSWER : The second mortgagee receives nothing unless he forced the foreclosure auction. A broker is showing a buyer one of his residential listings. The buyer says he wants to establish a day care center for seniors in the property. The property has been used as a day care center for no more than five children. How should the broker advise this buyer? - ANSWER Provide the buyer with contact information for the local planning and zoning office to confirm the zoning and determine whether it permits his use. A landowner wishes to build a neighborhood grocery store on a busy street in an area zoned for residential use. Which of the following would MOST likely be used to obtain permission for this store? - ANSWER Conditional use permit or zoning variance If conditions for property use are included in a deed and these conditions are violated, what is the most severe potential penalty? - ANSWER A court may order the return of the property to the original owner. New sidewalks installed only on one particular street will probably be paid for by - ANSWER a special assessment. An appraiser MUST be licensed or certified to handle Federally related work on residential property valued at more than - ANSWER $250,000. According to the principle of progression, a three-bedroom, one-story home is MOST likely to bring the highest sales price if located in a neighborhood in which - ANSWER most homes are larger than the sale home. A formal appraisal will ALWAYS be REQUIRED when the - ANSWER lender wants to sell the mortgage to the secondary market. When compiling a competitive market analysis, a broker would look for comparable properties that - ANSWER were located near the property being listed. For a buyer, a DISADVANTAGE of a partially amortized or balloon payment loan is that - ANSWER at the end of the term, all remaining principal must be paid in a single large payment A broker and the buyers he represents are anxiously awaiting the closing on their new home. The closing is scheduled in 4 days. The buyers inform the broker that they just received revised Loan Estimate and Closing Disclosure forms from the lender, indicating the Annual Percentage Rate on their loan has increased by 0.3%. Based on the TILA-RESPA Integrated Disclosure rule, what action should the broker take in this situation? - ANSWER Confirm with the seller's broker, the lender and the closing entity that the closing must be delayed to allow for a new seven-day waiting period because of the interest rate revision. According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the following disclosures MUST appear in the ad EXCEPT the - ANSWER prepayment penalties and rebates. When a home is purchased using an ARM, the monthly loan payment on the mortgage will - ANSWER vary over the life of the loan depending on fluctuations in the interest rate to which the loan is referenced. A borrower has defaulted on the mortgage. The mortgage contains an acceleration clau