REALESTATEU NC COURSE FINAL
EXAM STUDY GUIDE Questions And
Answers
Mrs Murphys Law - answers:Exempts owners of four or less units from complying with
terms of FHA
Executory Contract - answers:one that's been signed but the parties are still in process
of performing their obligations
Executed Contract - answers:one that's been performed according to its term
Express Agency - answers:An agency relationship based on a formal agreement
between the parties.
Implied Agency - answers:When agency relationship is created by implication by the
behavior or actions of the parties
Types of Agencies/agents - answers:Agent represents the principal & becomes fiduciary
Fiduciary= holds position of trust
Client= party represented by the agent
Customer= non represented consumer
consumer= any person capable of purchasing goods & services
Special Agent= gives agent limited authority to represent client in one transaction. REAL
ESTATE AGENTS ARE CONSIDERED SPECIAL AGENTS
General agent= authorizes agent to make legal decisions & act for principal
universal agent= complete authority to act on behalf of principal often created with
power of attorney
Equal Credit Opportunity Act (ECOA) - answers:The federal law that prohibits
discrimination in the extension of credit because of race, color, religion, national origin,
sex, age, or marital status.
Types of loans - answers:Conventional loan- typically have 80% LTV & sold to Fannie
Mae & Freddie Mac
FHA loan- made by a mortgage lender & insured by fair housing administration
VA loan- offered to qualified military members & allows to receive a loan on qualified
property for 0% down
USDA loan- admin through US department of agriculture & target rural & low income
borrowers purchasing homes in rural areas & farmers needing to purchase or operate
family farms
, Encroachment - answers:an improvement such as building or fence which crosses the
property boundary & intrudes upon a neighboring property
Ways in Which Easements can be Created - answers:Easement by grant- occurs when
owner of a property grants to another party or entity official right to use portion of
property
Easement by necessity- created by court order when property owner doesn't have direct
access to property from road & needs to cross adjacent property
Easement by prescription- when someone uses another persons property without
owners permission for legally prescribed length of time
Easement by implication- created from conduct of parties
Types of Easements - answers:easement appurtenant- a specific type of easement
where two properties are linked together as servient tenement and dominant tenement
estates.
easement in gross- right to use land of another without the requirement that the holder
of the right own adjoining land.
Types of liens - answers:mortgage lien- most common lien & it is when homebuyer
obtains mortgage
tax lien- attaches to a property when owners property taxes aren't paid
mechanics lien- applies to individuals or companies who supplied labor or materials that
improve a property
judgement lien- field by creditor who won monetary judgement in court against property
owner
and can be voluntary or involuntary and are either specific or general
units of measurements to remember - answers:1 acre= 43,560 sq ft
1 mile= 5,280 linear ft
1 sq mi= 640 acres (also called section)
The 6 Step Appraisal Process - answers:1. Defining the Problem
2. Conducting the Preliminary Survey
3. Gathering data
4. Comparing, analyzing, and classifying data
a. Sales Comparison Approach
b. Cost Approach
c. Income Approach
5. Reconciliation
6. Issuing the Appraisal Report
a. certificate or letter of appraisal
b. checksheet
c. narrative report
3 items that must be included on a deed: - answers:Type of ownership
info about consideration
EXAM STUDY GUIDE Questions And
Answers
Mrs Murphys Law - answers:Exempts owners of four or less units from complying with
terms of FHA
Executory Contract - answers:one that's been signed but the parties are still in process
of performing their obligations
Executed Contract - answers:one that's been performed according to its term
Express Agency - answers:An agency relationship based on a formal agreement
between the parties.
Implied Agency - answers:When agency relationship is created by implication by the
behavior or actions of the parties
Types of Agencies/agents - answers:Agent represents the principal & becomes fiduciary
Fiduciary= holds position of trust
Client= party represented by the agent
Customer= non represented consumer
consumer= any person capable of purchasing goods & services
Special Agent= gives agent limited authority to represent client in one transaction. REAL
ESTATE AGENTS ARE CONSIDERED SPECIAL AGENTS
General agent= authorizes agent to make legal decisions & act for principal
universal agent= complete authority to act on behalf of principal often created with
power of attorney
Equal Credit Opportunity Act (ECOA) - answers:The federal law that prohibits
discrimination in the extension of credit because of race, color, religion, national origin,
sex, age, or marital status.
Types of loans - answers:Conventional loan- typically have 80% LTV & sold to Fannie
Mae & Freddie Mac
FHA loan- made by a mortgage lender & insured by fair housing administration
VA loan- offered to qualified military members & allows to receive a loan on qualified
property for 0% down
USDA loan- admin through US department of agriculture & target rural & low income
borrowers purchasing homes in rural areas & farmers needing to purchase or operate
family farms
, Encroachment - answers:an improvement such as building or fence which crosses the
property boundary & intrudes upon a neighboring property
Ways in Which Easements can be Created - answers:Easement by grant- occurs when
owner of a property grants to another party or entity official right to use portion of
property
Easement by necessity- created by court order when property owner doesn't have direct
access to property from road & needs to cross adjacent property
Easement by prescription- when someone uses another persons property without
owners permission for legally prescribed length of time
Easement by implication- created from conduct of parties
Types of Easements - answers:easement appurtenant- a specific type of easement
where two properties are linked together as servient tenement and dominant tenement
estates.
easement in gross- right to use land of another without the requirement that the holder
of the right own adjoining land.
Types of liens - answers:mortgage lien- most common lien & it is when homebuyer
obtains mortgage
tax lien- attaches to a property when owners property taxes aren't paid
mechanics lien- applies to individuals or companies who supplied labor or materials that
improve a property
judgement lien- field by creditor who won monetary judgement in court against property
owner
and can be voluntary or involuntary and are either specific or general
units of measurements to remember - answers:1 acre= 43,560 sq ft
1 mile= 5,280 linear ft
1 sq mi= 640 acres (also called section)
The 6 Step Appraisal Process - answers:1. Defining the Problem
2. Conducting the Preliminary Survey
3. Gathering data
4. Comparing, analyzing, and classifying data
a. Sales Comparison Approach
b. Cost Approach
c. Income Approach
5. Reconciliation
6. Issuing the Appraisal Report
a. certificate or letter of appraisal
b. checksheet
c. narrative report
3 items that must be included on a deed: - answers:Type of ownership
info about consideration
