WI Real Estate EXAM QUESTIONS AND COMPLETE SOLUTIONS 100% VERIFIED

WI Real Estate EXAM QUESTIONS AND COMPLETE SOLUTIONS 100% VERIFIED Progression - Answer -The appraisal principle that a dilapidated property will gain value when the surrounding properties are well kept. Competition - Answer -The appraisal principle that states that two similar businesses attract more customers when within close proximity than they would separately During the appraisal process the appraiser will never adjust the price of the subject property - Answer - Highest and Best Use - Answer -The transition of the residential property to an income producing business Comparative Market Analysis (CMA) - Answer -The report agents reconcile to obtain a reasonable list price for a property based on current listings, recent sales, and expireds. Appraised Value - Answer -Given by comparable sales as well as an opinion of the properties fair market value Eminent Domain - Answer -The government's power to take private land for public use. Property owner receives compensation Severable Rights - Answer -Surface rights, air rights, subsurface rights can be sold separately. Fully Executed - Answer -When the terms of a contract have been fulfilled and the transaction has been closed. This means that both parties have performed their obligations under the contract and there are no further actions required. Home Owners Insurance - Answer -Combines personal liability and hazard coverage for the dwelling and it's contents, ensuring comprehensive protection for homeowners Tenancy in Common - Answer -Grants owners to have an equal, undivided interest in a property but also allows for owners to have varying percentages of unequal ownership as well Tenancy in severalty - Answer -Severing all other owners. When one single person is the sole owner of a property. Fee Simple Defeasible - Answer -The property holder owns the property subject to a condition; if the condition is breached, then the property will go back to the original owner. 4 Land Use Controls - Answer -Police power, Escheat, Eminent Domain and Taxation Public Land Use Controls - Answer -An implementation of government authority primarily enacted through police power. Encroachment - Answer -An unauthorized affixed intrusion onto another person's property. How is real estate defined? - Answer -Land, water, air and improvements attached to the land. Arm's length transaction - Answer -A property exposed to an open and free market and sold after a reasonable amount of time, to unrelated parties which both acted in their own self interest. When a seller owes commission - Answer -When an agent brings a ready, willing, and able buyer and a seller accepts the buyer's offer, the agent has essentially earned their commission. The seller is to pay the agent if the contract is terminated due to the seller's default. Seeking legal counsel - Answer -An agent can never give legal advice without a license to do so, nor deter customers or clients from seeking legal counsel. Purpose of Building Permits - Answer -To ensure a minimum level of construction standards which maintains the safety and well being of the public Prime Rate - Answer -The rate the banks charge their preferred customers for loans. Self dealing - Answer -An intentional misrepresentation of an agent's relationship and interest in a transaction Obedience - Answer -This duty requires that the agent obey the wishes of the principal as long as they are not unethical or illegal