Maine Real Estate Questions well answered rated A+ 2023/2024

Maine Real Estate Questions Marth lives on one side of a two-family house. She wants to advertise the other side as non-smoking. Can she legally do so? - correct answer Yes, because the right to smoke is not protected by law. Under the Equal Credit Opportunity Act (ECOA) a lender does not have to offer a loan to: a.) a recipient of food stamps b.) recipient of social security c.) a 90-year-old man looking for a 30-year mortgage d.) a recipient of public assistance with poor credit history. - correct answer d.) a recipient of public assistance with poor credit history The ECOA prevents lenders from prohibiting against loans based on age. FHA protects: - correct answer ECOA protects: - correct answer The Civil Rights Act of 1866 prohibits discrimination against: a.) gender and religion b.) race and gender c.) handicap and country of origin d.) race - correct answer d.) race The law that followed the close of the Civil War extended equal rights in real property to members of all races. Requirements of a valid Agency Relationship - correct answer Requirements of a Valid Contract - correct answer Which of the following is a requirement for a valid agency relationship? a.) compensation b.) mutual consent c.) written agreement d.) brokerage license - correct answer b.) mutual consent Of the listed suggestions only mutal consent is required. Agency is sometimes formed by the behavior of the parties; compensation is generally a result of the completion of the task assigned in agreement; licensure is immaterial in agency. How is agency formed? - correct answer A woman refinanced her house to pay off her old loan and generate $100,000 cash, which she used to purchase two rental properties. This method of increasing her holdings is called: a.) depreciating b.) pyramiding c.) exchanging d.) syndicating - correct answer b.) pyramiding Pyramiding through refinancing uses the value of the original property to drive the acquisition of additional properties while retaining all properties acquired. Which of the following phrases is NOT discriminatory in an advertisement to lease a non-exempt one hundred unit apartment complex under the current Federal Fair Housing Act? a.) females only b.) no smoking on premises c.) no handicapped alteration will be made d.) adults only, no children - correct answer Smoking rights are not protecting under the Fair Housing Laws. Landlords may enforce non-smoking as a lease provision. Using real property as collateral to secure a loan while retaining the property is called: a.) hypothecation b.) promissory intent c.) mortgage d.) encumbrance - correct answer a.) hypothecation When a borrower uses property to secure a loan while retaining the property's use and benefit, is known as hypothecation. mortgage - correct answer a specific type of loan that is used to buy real estate note - correct answer Deed in trust - correct answer This instrument is set up as a type of management agreement. The three parties in a deed of trust are the trustor, the party establishing the trust; a trustee, the party managing the trust and the beneficiary; the party benefiting form the trust. This type of trust is usually used to provide anonymity and to control an estate even after the death of the trustor. Deed of Reconveyance - correct answer A deed that is used to convey the property from the trustee to the trustor in a deed of trust. This deed is used when the lender has been paid in full. Conditional use permit - correct answer The permit allows a party to use the property in a manner that it is not permitted by zoning. It usually involves a property for a public purpose such as a hospital, school, house of worship, etc. It is also called a special use permit.