ACEABLE FINAL EXAM STUDY TERMS QUESTIONS WITH 100 % CORRECT ANSWERS | VERIFIED

A certificate of occupancy is issued by a governmental authority to indicate that: - a building is ready and fit for inhabitants A client request or instruction that is either illegal or unethical does not fall under the duty of: - obedience (The duty of obedience does not apply when the principal's requests or instructions are illegal or unethical in any way.) A non-amortizing loan of $95,000 has an interest rate of 4.5%. How much will be paid in interest over the year? - $4,275 (0.045 x $95,000 = $4,275) A property cost $500,000 to build. It was built 20 years ago, and has 30 years of useful life remaining. The land on which it was built is valued at $100,000. What is the value of this property using the cost approach? - $400,000 (Calculate depreciation percentage: 20 divided by (20+30) which is 0.4. Calculate the property value: from the property cost ($500,000) subtract the depreciation amount (500,000 x 0.4) and add land value ($100,000). The math looks like 500,000 - 200,000 + 100,000. The property value is $400,000.) A property manager can deny a tenant's rental application based on: - tenants history of bankruptcy A real estate agent publishes the following ad: "New three-bed, two-bath home can be yours for just $20,000 down!" Does this trigger a TILA disclosure? Why or why not? - yes, mentioning a down payment amount triggers a disclosure (A down payment amount triggers a disclosure because the amount you put down would depend on things like your interest rate, loan terms, etc.) A tenant in an apartment building was concerned when they found out that the property was being foreclosed on. There are still 6 months left on the lease. Which of the following lease clauses would protect the tenant and ensure they can stay until the end of their lease, even if there is a new landlord? - non disturbance clause (ensures the tenant will remain in place) After Marvin signed a purchase contract to take possession of one of Ralph's Jack Russell Terrier puppies once it was weaned from the mother, Marvin learned that this breed can be destructive if left alone allday in an apartment. Marvin might: - have to complete transaction (If Marvin cannot show that he was deceived or otherwise tricked by Ralph into entering into the contract, Marvin is obligated to complete the transaction. A contract is a legally binding agreement that cannot be abandoned without cause.) Agent Laura completed a CMA on a property her client was interested in making an offer on. What kind of value was Laura attempting to determine? - Market Value (CMA = comparative market analysis) All of the following are exempt from the Fair Housing Act EXCEPT: - bill, a real estate agent who is renting 2 units in a fourplex that he also lives in An ad reads, "Beautiful house with gorgeous hardwood floors and an unbelievable view." The language used is: - puffing (exaggerated claims) Chuck signs Linda to a salary-based employment contract to sell used cars on his lot. He also points out to her that he has a contest for all his salespeople that she can win if she meets the sales goal. What can be said of the contracts that Chuck has entered into with Linda? - employment contract is bilateral, contest is unilateral (Linda's employment contract with Chuck is a bilateral contract wherein both parties are making promises. The contest is a unilateral contract between Chuck and Linda wherein he makes a promise, but she doesn't. If she chooses to perform and meets the sales goal, Chuck is bound to the contract.) Corbin took out a non-amortized loan of $550,000. He ended up paying $42,250 in interest over the year. What was Corbin's interest rate? - 7.6 % (To find the interest rate, you just need to divide the part (42,250) by the whole (550,000). 42,250 ÷ 550,000 = 7.6%) how is debt service ratio calculated? - by dividing net operating income by total debt service How would an appraiser be able to adjust for the size of the property using the sales comparison approach? - they would need to find the price per square foot of the comparable property If a lender wishes to understand the gap between the value of a property and the cost of the loan being used to purchase that property, what risk assessment tool would they use? - loan to value ratioIf a loan is partially amortized, then: - the monthly payments will not be enough to pay off the principal within the loans terms (If a loan is partially amortized, then its monthly payments will not be enough to pay off the principal within the loan's terms.) In order to protect the public interest, Georgia requires real estate professionals to get licenses. What kinds of licenses are offered? - broker, associate broker, salesperson, community association manager