National Exam - Practice of Real Estate

a "time is of the essence" contract - answer-must be performed in the time specified. any party who does not perform on time is guilty of breach of contract a benefit of a deed of trust is - answer-foreclosure is usually simpler and faster a broker requires that all budgeted costs for the planning period be justified each time a new budget is developed. This requirement reflects - answer-the concept of zero base budgeting a bungalow represents? - answer-a single gable A charge of violation of Federal Fair Housing laws can be heard by an administrative law judge within the Department of Housing and Urban Development (HUD) or by a Federal district court judge in Federal court. The advantage of a Federal court hearing to the complaining party is that - answer-there is no dollar limit on damages paid a contract that lacks legal object is considered to be.. - answer-void a distinguishing characteristic of owning property by land trust is that - answer-the identity of the legal owner is kept confidential A homeowner has negotiated with a neighbor to obtain the permanent right to pass over the northern part of the neighbor's land to gain access to the river. He pays the neighbor $9,000 for the right of access and receives a deed. This is an easement - answer-appurtenant A judgment has been properly recorded. Any subsequent purchasers, whether they have actually examined the record or not, have been given - answer-constructive notice a land contract.. - answer-is a way for a vendor to help a vendee finance the property a licensee has entered into a written buyer-broker agreement with a client whereby the licensee will be paid if the client buys a property of the type described in the agreement within the agreement period regardless of whether or not the licensee located the property for the buyer. This type of agreement is known as - answer-exclusive-buyer agency a loan which requires the borrower to pay interest only until the maturity date and then pay the entire princiapl is called.. - answer-term loan a promissory note is NOT what? - answer-it is not an evidence of title A prospective seller asks a salesperson to recommend a listing price for a property. The salesperson should suggest - answer-a CMA to determine the property's value A realty firm has just entered into an agreement to represent a home builder in the sale of a new subdivision. The firm has located several potential buyers and five homes have been sold to purchasers that the firm's agents have contacted. The realty firm has an agency relationship with - answer-the builder a salesperson for a broker listed an owner's home under an exclusive right to sell listing contract. which of the following statements is correct? - answer-the listing belongs to the broker a salesperson lists a property with a contract that allows for subagency and dual agency. The salesperson is... - answer-an agent to the broker and a subagent to the principal A veteran buys a home with a DVA guaranteed loan. 2 years later, the veteran sells the home to a buyer who, with the lender's approval, assumes the veteran's loan. In this situation, the veteran is... - answer-no longer financially responsible if the buyer defaults six months later A will has been drawn up leaving the family homestead to the owners' granddaughter. Once that has been done, the owners may - answer-make any changes they wish through a codicil or a later will according to the imputed interest law with installment sales amounts what is NOT covered ? - answer-anything less than $3000 is not covered According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the following disclosures MUST appear in the ad EXCEPT the - answer-prepayment penalties and rebates all liens are.. - answer-encumbrances an appraise mustbe licensed to handle federally related work on property valued at more than - answer-250K an easement can be terminated by - answer-merger of titles an example of a contract terminated due to inability to perform would be one in which the - answer-seller had contracted for sale of the entire property without the knowledge or consent of the joint tenant Antitrust laws prohibit competing brokers from all of the following EXCEPT - answer-receiving compensation from both the buyer and the seller At the closing on June 15, the buyer is assuming a mortgage presently on the property, on which the monthly interest charge is currently $600. The seller has made the payment due on June 1. Assuming a VA mortgage, what is the adjustment made at closing? - answer-debit seller 300 credit buyer 300 between FHA and VA loans which is gov't insured vs guaranteed? - answer-FHA = gov't insured VA = gov't guaranteed bilateral contract - answer-both parties promise to do something, one promise is given in exchange for another building codes would dictate - answer--materials and/or performance standards for structural components as well as heights, safety features, sanitation and health requirements, setback and sideline restrictions -also rules by local govs to regulate construction standards buyer recourse if seller defaults - answer--rescind or terminate the contract and recover earnest money -sue for specific performance -sue the seller for damanges condos are owned by what type of mutual ownership - answer-tenants in common depending on geographic location, FHA will insure mortgages on 1-unit dwellings for up to - answer-$729,750 depreciation is calculated based on the - answer-cost of the building only difference between planning and zoning is that zoning... - answer-is a legal implementation while planning is a process do FHA loans have a prepayment penalty? - answer-no, FHA loans do not have a penalty -neither does VA loans economic characteristics of land are - answer-scarcity, location and durability essential elements for a deed to include? - answer-words of conveyance For Federal income tax purposes, which of the following are costs of homeownership that may be deducted from gross income? - answer-1) mort. loan int. 2) mort. loan origination fees 3) local prop. taxes granting a conventional loan requires that the borrower provide the lender with which of the following? - answer-mortgage and promissory note how does a creditor who has obtained a judgment get satisfaction against a debtor who will not pay? - answer-writ of execution if conditions for purchase are included in a deed and these conditions are violated, what is the penalty? - answer-return of the property to the original owner In every real estate transaction, a legal description of the real estate MUST appear in the transaction documents. What kind of legal description should be used in MOST transactions? - answer-the same one used in prior transfers of the parcel verified by a surveyor In helping a buyer to select a lender, if the buyer believes he has good credit and his income is documentable as a salary and by tax returns, the licensee might recommend a mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT - answer-more variety of loan programs available in most states, foreclosed property is sold through - answer-public auction Joint tenancy - answer--ownership by 2 or more people WITH rights of survivorship -four unities required for this ownerhsip: time, title, interest and possession land description T3N, R4W refers to waht method? - answer-rectangular survey Lien vs title theory - answer-lien: mortgage is viewed as a lien on real property title: lender is viewed as conditional owner of mortgaged land MOST closed real estate transactions should be reported to the IRS. REQUIRED information includes seller name(s) and social security number(s) and - answer-the sale price Once a seller accepts a ready, willing, and able buyer, the agent is entitled to a commission because of the principle of - answer-procuring cause One of the main purposes of zoning laws is to - answer-maintain property values pledging property as security for a loan without losing possession of it is... - answer-hypothecation Practice of Real Estate Civil Rights act of 1866 - answer-prohibit racial discrimination in all conveying of real and personal property Practice of Real Estate