national practice exam – Flashcards
Unlock all answers in this set
Unlock answersquestion
n the appraisal process, looking at the number of recreational facilities, the distances to schools and adequacy of public transportation is called
answer
neighborhood analysis
question
If a comparable has one less bathroom than the subject, an adjustment is made by
answer
adding value to the comparable
question
Ownership of a property reverted to the grantor of the estate when its usage failed to conform to a stated condition in the grant. What type of estate existed?
answer
fee simple defeasible
question
A cooperative is which? 1.residential prop 2. commerical prop 3.hybrid of residential and recreational 4.type of institutional prop
answer
3. hybrid
question
160 County Drive has 4 acres of open pasture and a 1,900 square foot home. The home has 2 bedrooms and 4 bathrooms. Call 555-555-5555 now for information! What is missing from this advertisement that makes it a blind ad?
answer
the brokers identification
question
A tenant who stays beyond his lease without consent of the landlord is known as
answer
tenancy at suffererance
question
If a cooperative corporation cannot pay its bills, what would happen?
answer
the corp owning the coop would dissolve and all residents could lose their interest
question
A town is replacing a sidewalk that serves eight homes. The length of the sidewalk is 900 feet. Laura's property has 60 feet of the sidewalk. If the cost of the project to be paid by a special assessment is $18,000, what will Laura's assessment be?
answer
($1,200)
question
What is a forecast of income and expenses that can be projected over five years?
answer
(capital budget?)
question
Carla has been walking across a path on John's property for the past 22 years. John knows about this but has never given Carla permission. What might a court grant to Carla?
answer
easement by prescription
question
Which of the following is a valuable skill for a property manager to have? knowledge of building systems knowledge of mortgage disclosure knowledge of appraisal knowledge of how to steer tenants to certain buildings
answer
(appraisal?)
question
Seller Monica is selling her property to Harriet. What is Monica's primary responsibility at closing?
answer
(to deliver marketable title)
question
Broker Jack has an agreement with seller Mauve that says Jack will receive compensation if anyone except Mauve sells Mauve's home. This is an example of..? 1. exclusive agency 2.exclusive right to sell agency 3. enclave agency 4. net agency
answer
exclusive agency
question
What is another common name for the lot and block system of legal descriptions?
answer
recorded plat method
question
Unlike buyer/seller agency agreements that create _________, the management agreement creates ________.
answer
special agency general agency
question
Owner Tom decided to lease out his basement to a college student. By leasing the basement, Tom has...? 1.transferred a portion of his bundle of rights 2. permanently transferred his subsurface rights 3. encroached his bundle of rights
answer
transferred a portion of his bundle of rights
question
The cost to replace an improvement with original materials is known as
answer
reproduction cost
question
Why is the condition of bearing walls more important than non-bearing walls?
answer
(bearing walls support the ceiling and the roof)
question
What is the balance on an amortized loan of $780,000 after the first payment if the interest rate is 5% with a monthly P payment of $3,780?
answer
(779,470) ?
question
The Quarry Mountain Subdivision requires all properties to have fences that are at least 8 feet tall surrounding each property. This is an example of
answer
zoning restriction
question
Which parties typically purchase title insurance once the transaction is complete? 1.lender and buyer 2. HUD and seller 3.licensee and buyer 4. broker and lender
answer
(lender and buyer)
question
Which form does RESPA require lenders to use to detail the costs that the buyer and seller will pay at closing?
answer
closing disclosure
question
A home maintains its highest value by being in a neighborhood with similar type housing describes the principle of _____?
answer
conformity
question
A(n) ________ is one that conflicts with the ordinances that were enacted after the use commenced.
answer
legal nonconforming use
question
A broker induces an owner to sell by telling him that Muslims are moving into the neighborhood. This broker is guilty of
answer
blockbusting
question
The size of jurisdiction's tax base is derived by 1.subtracting exemptions form assessed values 2. adding exemptions to market values
answer
subtracting exemptions form assessed values
question
Earl orally agreed to a 18-month lease with landlord Blake. Is this contract enforceable?
answer
No, all leases longer than one year must be in writing to be enforcable (an oral lease for more than 12 months is not enforceable if the statute of frauds in the jurisdiction includes leases of more than 12 months.)
question
Which of the following would be found in a management proposal? 1.tenant credit history 2.desired demographic of the property 3. schedule of maintenance req. 4.list of all pets residing in property
answer
(schedule of maintenance req.?)
question
What type of agency cannot be revoked by the principal, nor is terminated if the principal dies?
answer
gency coupled with interest
question
A seller decided to back out of a sales contract for no good reason. What recourse does the buyer have?
answer
(sue for specific performance)
question
How might a voidable contract become valid?
answer
if the party who has reason to disaffirm it decides to perform it
question
Broker Ron wants to open a separate escrow account for each transaction he is involved in. Is this legal?
answer
(yes , there is no limit??)
question
A written pledge by a lender to lend a certain amount of money to a qualified borrower on a particular piece of real estate for a specified time under specific terms is a(n)
answer
conditional approval
question
Home Hoarding Realty is advertising to the public that their managing broker has been in the business 37 years and has sold over 1,250 homes. This is an example of
answer
Institutional advertising (Institutional marketing advertises the company or individual, not specific property)
question
Under what type of contract is a seller obligated to sell, but the buyer is not obligated to buy?
answer
option to buy (unilateral)
question
When the agency relationship has been terminated, the licensee is no longer considered the principal's agent and does not owe any further duties to the principal except for
answer
(confidentiality and accounting)
question
The first step in the appraisal process is to
answer
state the problem (purpose)
question
Mary abandoned her property by failing to pay its property taxes, and the property reverted to the state. This is an example of
answer
escheat
question
How does the Federal Reserve control lenders?
answer
they tell lenders what % of assets they must keep in reserves
question
What is the most common lease term for space in an office building?
answer
(3-5 years)
question
The essential criteria for an acceptable legal description is that it
answer
accurately locates acceptable by courts of law
question
Francis just signed the papers on a conventional 30-year, $210,000 loan. He was wondering what type of interest will he be paying on the loan. What is the correct answer?
answer
simple interest
question
Why would a property with a rectangular system description also have a metes and bounds legal description?
answer
because property irregular in shape
question
Which of the following types of property sales typically requires a property condition disclosure?
answer
a 3 unit mutli familty dwelling ("State legislation requires owners of previously occupied single family homes and buildings containing 1-4 dwelling units to provide the disclosure to prospective buyers)
question
The assessed value of Sidney's home is $350,000 but the home was recently appraised at $225,000. As a result, Sidney believes her tax bill is way too high. What option does Sidney have?
answer
appeal the appraisal amount
question
What type of clause allows a broker to collect a commission for some period of time after the listing expires?
answer
carryover clause
question
Which clause protects a lender if he does not want the loan to be assumed by another party?
answer
Alienation (due on sale)
question
Bobbie decided to redeem her property after a tax sale. Bobbie exercised her
answer
STATUTORY RIGHT OF REDEMPTION
question
A property owner generally qualifies for a homestead exemption by meeting two criteria: <
answer
-is head of a family < resides on the property for a required length of time
question
Gerald is 55, single, and resides on his 3 acre property. Why will Gerald qualify for a homestead exemption?
answer
he lives on the property
question
Which of the following legal description methods has been used the longest in the US?
answer
metes and bounds
question
"This property has the best view in the entire county." This statement is an example of
answer
puffing
question
What is the definition of "valuable consideration" in regard to contract validity
answer
cash/monetary
question
Under the _______ of recording, title passes when the conveyance is registered on the title certificate
answer
(torrens system)
question
Vicky was posing as a customer of Establishment Realty. However, she was really there to see if Establishment Realty was following fair housing laws. Vicky was a
answer
tester
question
Of the following liens: a $100,000 mortgage, a $2,500 property tax bill, and a $8,000 mechanic's lien, and a $25,000 judgment lien, which will be paid off first after a foreclosure sale
answer
100,000 mortgage
question
Broker Jon is attaching a rider strip to a For Sale sign. What information is most likely on this rider strip
answer
cell phone number
question
A(n) ________ contract is one that unduly favors the party with superior bargaining power
answer
Unconscionable
question
Morgan owned a large condominium on the ocean. She died and no legal heirs were found. Who will receive title to the property?
answer
the state or county
question
Non-judicial foreclosure is required to foreclose on a
answer
deed of trust (mortgage)
question
Given the net income of a property, the appraiser can determine an opinion of the value for that property by
answer
dividing by rate of capitalization Net operating income (I) ÷capitalization rate (R) = value (V)
question
Justin defaulted on his home mortgage payments. The lender obtained a court order to foreclose on the property. At the foreclosure sale, Justin's house sold for $339,000 and the unpaid balance of his loan is $400,000. What must the lender do to recover the $61,000 Justin still owes?
answer
seek deficiency judgments
question
A type of mortgage which allows the lender to increase the outstanding balance of a loan up to the original amount of the loan in order to advance additional funds is called an
answer
open-end mortgage.
question
Homeowner Louise has been lax in protecting her property rights. According to the ___________, Louise may lose those property rights
answer
Doctrine of Laches
