Oklahoma Real Estate Final Questions and Answers Rated A+

Oklahoma Real Estate Final Questions and Answers Rated A+ Cost Approach is most often used for recently built properties where the actual costs of development and construction are known. It is also used for special purpose buildings which cannot be valued by the other methods because of lack of comparable sales or income data. Income Capitalization Approach Used when valuing income producing property, value is determined by Net Operating Income Approach to valuation or appraisal as determined by the amount of net income the property will produce over its remaining economic life. Sales Comparison Approach (Market/Data Approach) The process of estimating the value of a property by examining and comparing actual sales of comparable properties. Used in residential property broker's opinion of value An estimate of a property's value rendered by a party who is not necessarily licensed, objective, or qualified. The estimate may not be a complete appraisal. A broker's opinion of value may resemble an appraisal, but it differs from an appraisal in that it is not necessarily performed by a disinterested third party or licensed professional and it generally uses only a limited form of one of the three appraisal approaches. In addition, the opinion is not subject to regulation, nor does it follow any particular professional standards. A broker is liquidating the brokerage to retire in Florida. to dispose of his personal house, what must the broker do? disclose he is a licensed realtor Types of sale the asset sale and the stock sale asset sale (Business brokerage ) the purchaser takes possession of some or all of the assets of the business, as well as the real estate, in exchange for the sale price. The purchase usually does not include acquiring the existing business entity or its liabilities. An asset sale is preferred by buyers who want to buy only portions of a business, or to avoid liabilities inherent in a stock purchase. stock sale (Business brokerage) a purchaser acquires complete ownership of a business, including the legal corporate entity, all assets, all financial liabilities, and any current or future legal liabilities arising from incidents that have occurred prior to the sale. A purchaser may prefer a stock sale to avoid creating a new business entity or to benefit from a possible tax advantage. In addition, a stock sale keeps a business identity intact, which can be very valuable. What is the total interest your friend will pay over the life of the $185,000 loan at 6.0% interest for 30 years? The monthly P&I is $1,109.17. The monthly taxes are $321 $214,301.20 [CORRECT] Explain: ($1,109.17 x 360) - $185,000 Terminating an agency relationship Full performance of all obligations by the parties terminates an agency relationship. In addition, the parties may terminate the relationship at any time by mutual agreement. Thirdly, the agency relationship automatically terminates on the expiration date, whether the obligations were performed or not. Involuntary termination. An agency relationship may terminate contrary to the wishes of the parties by reason of: < death or incapacity of either party < abandonment by the agent < condemnation or destruction of the property < renunciation < breach < bankruptcy < revocation of the agent's license Involuntary termination of the relationship may create legal and financial liability for a party who defaults or cancels. For example, a client may renounce an agreement but then be held liable for the agent's expenses or commission. The A person shall not be permitted to file an application for re-issuance of a license after revocation of the license withing 3 years of the effective