Rhode Island Real Estate Sales License Study Guide Questions with Complete Solution

Rhode Island Real Estate Sales License Study Guide with Complete Solution Deed of Trust Loan ✔✔Deed wherein legal title in real property is transferred to a trustee, which holds it as security for a loan Factors influencing real estate supply ✔✔- Labor force availability - Construction and mate rial costs - Government controls - Govt. financial policies Factors influencing real estate demand ✔✔- Population - Demographics - Employment and wage levels Realtor ✔✔Member of the National Association of Realtors Schools are part of what real estate classification ✔✔Special purpose Uses of Real Property ✔✔- Residential - Commercial - Mixed -Use - Industrial - Special Purpose What is not a factor in how quickly the forces of supply and demand work ✔✔Pricing Improvements do not include: ✔✔- Shrubbery - Trees - Lawns Real property includes: ✔✔- Interests - Benefits - Rights that are automatically included in the ownership of land and real estate Bundle of Legal Rights, as part of Real Property, include: ✔✔Right of: - Possession - Control - Enjoyment - Exclusion - Disposition Title is: ✔✔- Right to ownership - Bundle of legal rights - Evidence of ownership provided by a de ed Appurtenance ✔✔Right or privilege associated with real property, e.g. - parking space - easement - water rights Emblements (personal property) ✔✔Annual plantings (not perennials) or crops or grains Severance (personal property) ✔✔Can be separated from the land, e.g. apple being picked from the tree Attachment or Annexation (personal property in to real property) ✔✔e.g. cement, stone, and sand mixed in to concrete to make a sidewalk Fixture ✔✔Part of real property. Attached to the land or building Legal tests for a fixture ✔✔- not easily removable (means of annexation) - considered a permanent addition (adaptation to real estate) - agreement of the parties (in the offer to purchase) Trade fixtu res ✔✔property attached to the structure but used in the course of business. Personal property or Real Property. Accession ✔✔Trade fixtures that are not removed and become part of the real property being purchased Economic characteristics of real estat e ✔✔- Scarcity - Improvements - Permanence of investment - Location Physical characteristics of real estate ✔✔- Immobility - Indestructibility - Nonhomogeneity or uniqueness Chattels ✔✔Personal property Personalty ✔✔any tangible asset that can be mo ved (not fixed to land) Types of Housing ✔✔- Single -family homes - Apartment complexes - Condominiums - Cooperatives - Planned Unit Developments (PUDs) - Mixed -Use Developments (MUDs) - Modular homes - Mobile homes - Time shares PITI ✔✔- Principal - Interest - Taxes - Insurance Loan programs with more flexible terms for those with lower credit ratings ✔✔- FHA (Federal Housing Administration) - VA (Dept. of Veterans Affairs) Investment considerations ✔✔- Appreciation - Equity increa se with an amortized loan - Tax deductions - Capital gains taxation exclusion (principal residence) - Tax-free withdrawals from an IRA for downpayment Co-insurance clause ✔✔Homeowner to maintain insurance equal to 80% of replacement costs Comprehensive Loss Underwriting Exchange (CLUE) ✔✔Database of insurance claim history