National Real Estate Exam Portion for Ohio
A charge of violation of Federal Fair Housing laws can be heard by an administrative law judge within HUD or by a
Federal district court judge in Federal court. The advantage of a Federal court hearing to the complaining party is that -
ANS -there is no dollar limit on damages paid
\A contract for the sale of a home has been signed by both parties. This contract will remain executory until - ANS -the
transaction has closed
\A couple listed their home with a broker. After 2 months, the seller found a buyer, and the sale closed. The seller was not
obligated to pay a commission to the broker. This listing was MOST likely - ANS -an exclusive agency listing
\A formal appraisal will ALWAYS be REQUIRED when the - ANS -lender wants to sell the mortgage to the secondary
market
\A salesperson lists a property with a contract that allows for subagency and dual agency. The salesperson is - ANS -an
agent to the broker and a subagent to the principal.
\Abatement - ANS -a tax break offered by a state or municipality on certain types of real estate or business opportunities
\Abstract of Title - ANS -a record of the title history of a property or other significant asset, including transfers, liens, and
legal actions that are connected to the property
\Accretion - ANS -Increase in land caused resulting from the deposit of soil
\Acres in a Section - ANS -640
\Acres to Square Feet - ANS -1 acre = 43,560
\Acres to Square Yards - ANS -1 acre = 4840
\Actual Eviction - ANS -physical expulsion of a person from land or rental property (relieves lessee from owing rent)
\Actual Notice - ANS -Express information or fact; that which is known; direct knowledge.
\Ad Valorem Tax - ANS -Taxes placed on homes based on their value
\Addendum - ANS -used to clarify and require agreement on items that were not a part of the original contract
\Adjusted Basis - ANS -Investor's initial cost + cost of physical improvements - depreciation claimed as a tax deduction
\Amendment - ANS -Changes something that was part of the original agreement
, \An appraiser MUST be licensed or certified to handle Federally related work on residential property valued at more than -
ANS -$250,000
\An exception to title insurance coverage is - ANS -defects that clearly appear in the title search.
\An exclusive right to sell listing obtained by a broker associate belongs to - ANS -the employing broker only
\Antitrust laws prohibit - ANS -price-fixing, group boycotting, the allocation of customers or markets, and tie-in agreements
(like refusing to sell property unless the buyer promises to list their property with your broker)
\Avulsion - ANS -sudden removal of soil by an act of nature
\Base Lines - ANS -Run east and west
\Bilateral Contract - ANS -both parties exchange promises to perform
\Blockbusting - ANS -Encouraging the sell of a house on the fact that someone of a certain race will be moving to the area
\Bridge Loan - ANS -a short-term loan used until a person or company secures permanent financing or removes an
existing obligation
\Bundle of Rights - ANS -right of possession
right to control the property (within the framework of the law)
right of enjoyment (use the property)
right of exclusion (keep others from entering)
right of disposition (transfer)
\Calculating Equity - ANS -Home value - amount left on mortgage = equity
\Calculating PITI - ANS -Principal (don't forget to subtract down payment and earnest money)
Interest - calculated in years so 4% of a 200,000 loan's first year would be $8,000 annually or $667 montly
Taxes - $1 for every $1,000 of home's value
Insurance = $3.50 for every $1,000 of home's value
\Capital Gain - ANS -Net selling price of a property - its adjusted basis
\Capitalization Rate - ANS -Indicates the rate of return that is expected to be generated on a real estate investment
property
Formula:
Net Operating Income / Current Market Value
A charge of violation of Federal Fair Housing laws can be heard by an administrative law judge within HUD or by a
Federal district court judge in Federal court. The advantage of a Federal court hearing to the complaining party is that -
ANS -there is no dollar limit on damages paid
\A contract for the sale of a home has been signed by both parties. This contract will remain executory until - ANS -the
transaction has closed
\A couple listed their home with a broker. After 2 months, the seller found a buyer, and the sale closed. The seller was not
obligated to pay a commission to the broker. This listing was MOST likely - ANS -an exclusive agency listing
\A formal appraisal will ALWAYS be REQUIRED when the - ANS -lender wants to sell the mortgage to the secondary
market
\A salesperson lists a property with a contract that allows for subagency and dual agency. The salesperson is - ANS -an
agent to the broker and a subagent to the principal.
\Abatement - ANS -a tax break offered by a state or municipality on certain types of real estate or business opportunities
\Abstract of Title - ANS -a record of the title history of a property or other significant asset, including transfers, liens, and
legal actions that are connected to the property
\Accretion - ANS -Increase in land caused resulting from the deposit of soil
\Acres in a Section - ANS -640
\Acres to Square Feet - ANS -1 acre = 43,560
\Acres to Square Yards - ANS -1 acre = 4840
\Actual Eviction - ANS -physical expulsion of a person from land or rental property (relieves lessee from owing rent)
\Actual Notice - ANS -Express information or fact; that which is known; direct knowledge.
\Ad Valorem Tax - ANS -Taxes placed on homes based on their value
\Addendum - ANS -used to clarify and require agreement on items that were not a part of the original contract
\Adjusted Basis - ANS -Investor's initial cost + cost of physical improvements - depreciation claimed as a tax deduction
\Amendment - ANS -Changes something that was part of the original agreement
, \An appraiser MUST be licensed or certified to handle Federally related work on residential property valued at more than -
ANS -$250,000
\An exception to title insurance coverage is - ANS -defects that clearly appear in the title search.
\An exclusive right to sell listing obtained by a broker associate belongs to - ANS -the employing broker only
\Antitrust laws prohibit - ANS -price-fixing, group boycotting, the allocation of customers or markets, and tie-in agreements
(like refusing to sell property unless the buyer promises to list their property with your broker)
\Avulsion - ANS -sudden removal of soil by an act of nature
\Base Lines - ANS -Run east and west
\Bilateral Contract - ANS -both parties exchange promises to perform
\Blockbusting - ANS -Encouraging the sell of a house on the fact that someone of a certain race will be moving to the area
\Bridge Loan - ANS -a short-term loan used until a person or company secures permanent financing or removes an
existing obligation
\Bundle of Rights - ANS -right of possession
right to control the property (within the framework of the law)
right of enjoyment (use the property)
right of exclusion (keep others from entering)
right of disposition (transfer)
\Calculating Equity - ANS -Home value - amount left on mortgage = equity
\Calculating PITI - ANS -Principal (don't forget to subtract down payment and earnest money)
Interest - calculated in years so 4% of a 200,000 loan's first year would be $8,000 annually or $667 montly
Taxes - $1 for every $1,000 of home's value
Insurance = $3.50 for every $1,000 of home's value
\Capital Gain - ANS -Net selling price of a property - its adjusted basis
\Capitalization Rate - ANS -Indicates the rate of return that is expected to be generated on a real estate investment
property
Formula:
Net Operating Income / Current Market Value
