CE Shop Final Exam Questions with Solutions

CE Shop Final Exam Questions with Solutions which of the following is the price a lender believes the property will bring at a foreclosure sale? mortgage value Burt terminated his exclusive right-to-sell listing agreement with Scott, his listing broker. Burt may legally do this as long as he's ________ willing to pay Scott's commission anyway what must a homeowner in DC disclose about a property built before 1978 if they have never tested it for lead paint? that the home is presumed to have lead-based paint Fred is buying Gary's property, which is listed with Sara. Who are the parties to the listing agreement? Gary and Sara an appraiser used the cost approach to estimate a property's value at $220,000. The site value was $50,000 and the total depreciation estimate was $4,000. What was the estimated cost of improvements? $174,000 which term is defined as the addition of one possessor's years of use to another's continuous use of the same property in an adverse possession claim? tacking which one of the following statements describes informed consent as it relates to dual agency? both the buyer and the seller understand what dual agency is and agree in writing to allow the agent to represent both parties which of the following factors would play a role in an IRS determination as to whether a licensee should be classified as an employee or an independent contractor? whether the licensee receives benefits from the brokerage firm under the statute of _____, if legal remedy is sought against a person, the pursuer must bring a court action within a specified period of time limitations Chester is interested in becoming a real estate licensee in DC. After completing the requirements for obtaining the license for a real estate salesperson, which agency will administer Chester's license? DC Real Estate Commission A client terminates a listing agreement before its expiration date. What happens now? the client may owe a commission anyway what's involuntary lien? a lien created without a property owner's consent Jim is a listing agent. What offers must he present to his client and when? he must present all offers as soon as practicable Wallace is beside himself He spent the last five months raising enough money to purchase the property that he has an opinion on, and now, a month before the end of his option period, the seller refuses to sell him the property. The seller's actions are ____________. a breach of contract The mishandling of escrow funds can result in_______________. Disciplinary action and fines for the real estate licensee How many feet are in a mile? 5,280 Under which types of agency agreement may a buyer and agent operate? open, exclusive right to represent, and exclusive agency With an option contract, which of the following constitutes a breach of contract? the optionor sells the property without the option contract to someone other than the optionee What would be an altruistic reason for a municipality to accept a land dedication? to use the land for public benefit Rhonda and Jade both consider themselves African-American, although Rhonda has much darker skin and hair than Jade. When Rhonda went to the Valley Falls apartment manager's office to request a rental application, she was told there were no vacancies. Jade went in a day later and received an application. This may be discrimination based on__________ color Among other things, a listing in the MLS should always include ____________. at least one photo Joint tenancy requires unities of time, interest, and___________. possession Obviously, you can't lawfully convey something unless the parties agree on what's being conveyed. How is that determined? legal description Whose role is it to develop the comprehensive master plan? Planning board members 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 When is property partitioned? When two or more people hold ownership of a property and one wants to sell his/her portion If a community isn't growing in an orderly fashion, which local land use group would most likely be at fault? planning board Larry, an associate broker, received an earnest money check from his buyer client. Which of the following actions is appropriate and would be in compliance with real estate law? Larry turns the check over to his broker for deposit into the firm's escrow account When does performance of a contract occur? Both parties have fully met the terms of the contract Following all of the client's lawful instructions describes which fiduciary duty? obedience What's the purpose of the title search? to collect evidence that the title is a marketable title, meaning its clear and free of encumbrances What approach to value measures the cost to produce a property, including land acquisition and construction costs? Cost approach Interest rates determine buying power. Which of the following is a true statement? When interest rates are high, buyers are often priced out of the market Which of the following is true about asbestos? It is not safe at any level An assignment of a contract means to__________. Transfer rights, but not necessarily obligations to a new party A deed that releases any of the grantor's rights to the property to the grantee and clears any clouds on a title, but does not offer any warranties to the grantee, is known as a(n)______________. Quitclaim deed Which of the following is a role of an agent who's assisting the buyer, but representing the seller? Advise the buyer on an appropriate price What economic principle is related to a property's most profitable use that is both legal and economically feasible? Highest and best use What insurance coverage applies when a disaster occurs, and a governmental authority denies homeowners access to the dwelling, even if no damage has been incurred to the dwelling itself? Prohibited use coverage Aside from paint, where else might lead be found? Water pipes In DC, in order for adverse possession to be claimed, an individual must have what type of use of the property for at least 15 years? Continuous and uninterpreted In an addendum to the purchase and sale contract, the seller agrees to paint the house before conveying the house to the buyer. The weather changes and the seller is unable to finish painting the house before closing. This is an example of ___________. Partial performance Which of the following can be defined as what a property is worth? Value Non-lawful possession after the expiration of a lease is called_____________. Estate at sufferance How long must continuous and uninterrupted use of a property be before it can be claimed by adverse possession in DC? 15 years Which local land use group has the dual focus of livability and quality of life? Planning Board If a farm that's for sale measures one and three-quarter square miles, how many acres is it? 1,120 Which act states that communities and facilities that meet certain criteria for providing housing to older persons are legally exempt from the familial status discrimination? Housing for Older Persons Act of 1995 Lola and Rick's offer on a property is contingent upon financing. What happens if the financing falls through? They'll have to terminate the contract Which is a claim against a person and all of his property? General lien Although states make specific laws governing water rights and the rights in land that borders water, most states generally follow one of two basic doctrines regarding water rights. What are those two? 1. Common law doctrine of riparian 2. Littoral rights Common law doctrine of riparian and littoral rights dictates________________________ that water rights are automatically conveyed with property A legal easement can be created by any of the following EXCEPT: Merger of the titles A major difference between freehold and non-freehold estates is that all freehold estates:____________ Are of indeterminable duration A judgment has been properly recorded. Any subsequent purchasers, whether they have actually examined the record or not, have been given_________________ Constructive notice A lawsuit for inverse condemnation may be brought by: _______________ A homeowner The government's right to take private property is called_____________ Eminent Domain The process of the government obtaining the property is called______________ Condemnation Escheat is when______________ Title passes to the government because a person died without a will and without heirs The term dedication refers to__________ The transfer of real property by a private owner to a public agency Building codes_________________ Set the standards builders must abide by when building houses in a subdivision Which environmental hazard sends spores into the air that, when inhaled, can cause respiratory illness? Toxic mold As defined in local zoning ordinances, the distances between lot lines and improvements are known as________________ Set back Frontage is______________ The distance along a lot's boundary with the road; the first measurement given in a property description What must a developer get approved before building houses in a new subdivision? A plat What is a plat? A detailed survey map of the subdivision indicating where buildings, driveways, etc., will go Immobility of land does what? Increases the value of land in a good market When a street gets new storm drains, what will the land owner pay in addition to the property taxes? Special assessment What is abatement? Government reduces property tax to stimulate development; a decrease in assessed value What is an assessment? An actual charge against the property owner to cover the cost of an improvement made by a municipality What is a prime example of an ad valorem tax? Sales tax What is a lien? A financial claim A system used by state and local governments to monitor compliance with and enforce building codes and other regulations can be described as? The permit system Special restrictions to all properties within a subdivision would be found in the______________ Covenants, conditions and restrictions (CC&R's) A valid exercise of the government's police power to restrict an owner's use and enjoyment of property includes_____________ Building Codes What does the term ad valorem mean? Tax to be paid based on a value set by the government Under which doctrine of law can a person lose claim to title of the land for waiting too long to stake the claim? Doctrine of laches A couple owns an older home in a neighborhood that is becoming a commercial are. Because of the change in the use of land, the couple can expect the value of their parcel to increase at some future time. This is an example of the principle of: Anticipation An appraiser must be licensed or certified to handle federally related work on residential property valued at more than: ________ $250,000 Which rule of thumb formula for estimating property value is being offered to an investor who is told that a house renting for $900 a month should sell for about $90,000? GRM (gross rent mulitplier) What are the 4 characteristics of value? 1. Demand 2. Utility 3. Scarcity 4. Transferability According to the Truth in Lending Act (TILA) if any trigger terms are use in an ad, all of the following disclosures MUST appear in the ad EXCEPT the________________ Prepayment penalties and rebates