Fair Housing Act Flashcards, test questions and answers
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Fair Housing Act
People With Disabilities
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Search And Rescue
UNCW RTH 286 Dog FINAL – Flashcards 118 terms

Pedro Huang
118 terms
Preview
UNCW RTH 286 Dog FINAL – Flashcards
question
when was paws4people founded
answer
1999
question
who founded p4p
answer
Kyria Henry
question
what does paws4people specialize in
answer
placement of assistance dogs with children, vets, active-duty military, and military dependents
question
where did paws4people originate/relocate to
answer
originated in northern VA and re-headquartered to wilmington in 2011
question
what is paws4people's mission statement
answer
to educate and empower people to utilize assistance dogs to transform their lives
question
what does paws4people do
answer
raises, trains, and places assistance dogs with children, vets, military dependents, and civilians living with disabilities. they provide certification, insurance and support
question
how many people work for paws4people
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12 paid and 230+ unpaid staff
question
how many dogs have been placed through p4p
answer
498 working dog teams in 25 states and 1 province
question
how many dogs does p4p train at a time
answer
160+ dogs are in training at any time
question
what percentage of p4p dogs graduate successfully
answer
90+%
question
what are p4p placement programs (2)
answer
paws4 people and paws4vets
question
what are p4p training programs (2)
answer
paws4prisons and UNCW ADTP
question
what are p4p operational programs (3)
answer
paws4seniors, paws4education, and paws4reading
question
paws4people placement
answer
for children, adolescents, adults, and professionals
question
paws4vets placement
answer
~22 vet a day commit suicide -349 active-duty military suicides in 2012 -255 active-duty military suicides in 2013 -medical assistive technology facilitates inclusion in appropriate activities and environment -assistance dog is to person as a false leg is to amputee
question
paws4prison training
answer
-in 5 WV state prisons -basic training for all inmates -saved 115 dogs from euthanasia -placed/adopted 86 dogs -6 dogs moved over to service dog training -1 dog placed as service dog
question
UNCW ADTP training
answer
-began in 2011 as first and only program of its kind in the country -4 class, 12 hour program -548 students have completed intro course -107 students have completed entire certificate program -8 graduates have been offered work
question
p4p training steps
answer
-puppy whelping center -puppy development centers -paws4prisons programs > "bump" (dog picks client) *inmates are teachers of commands -UNCW p4p assistance dog program -paws4people/paws4vets client transfer training -assistance dogs go home with client
question
how much/how long does training and placement take/cost
answer
up to 2 years and $36,000 to train and place a dog
question
monty's home
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-non-profit -~10 years old -big event= pet expo -monty the dog died in 2006 from a malignant tumor -1st program= rainbow bridge journey -dogs are adopted, trained in prisons, and then adopted out of monty's home -inmates learn special skills to help them after prison (vet tech, pet care and grooming) -100% adoption rate for graduates -#1 mission is education -pawsitive partners prison program
question
monty's home pet ed 101
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-started rescue/ need for education -rescue is only a bandaid on a bigger issue -helps avoid irresponsible owners -pre k to 4th grade= children learn to care for dogs -middle school= if shelter dogs could talk -high school/ early college= how dogs learn -senior training= pet safety
question
working dogs
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not merely a pet, but trained to perform tasks which assist humans in some capacity -military working k9 -narcotics detection -explosive detection -herding -search and rescue -police -assistance
question
assistance dogs
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provides services to persons with disabilities, injury, or illness. the tasks they perform mitigate the effects of their limitation and/or assist in treatment and recovery guide hearing service -mobility assistance -psychiatric service -seizure response -allergen detection -many more
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military working dogs first role
answer
combat roles in ww1
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who created first GUIDE dog
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dorothy eustis- after seeing military working dogs helping blind german vets in switz after the war
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when did dorothy found the seeing eye dog organization
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1929
question
who established the idea of a mobility service dog in 1970s after watching donkeys assist people
answer
bonita (bonnie) bergin
question
who founded canine companions and ADI
answer
bonnie bergin
question
sporting dogs
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-need lots of exercise -work in force/hunting -search and rescue -seeing eye dogs -retriever, pointer, labs, spaniels
question
non-sporting dogs
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-bull dogs, chow chow, some spaniels -some detached, many playful -mainly bred for companionship -allergy resistance -miscellaneous/ designer dogs
question
toy dogs
answer
-pug, shitzu, terrier, chihuahua, Pomeranian -attached to owner -very small, long life span -allergy response, retrieval, seizure response -not good with mobility -easily overseen in crowded places
question
herding dogs
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-farm animals -Australian shelter dog, german shepherd, corgi -30-70lb average -originally hunters -guarding, blocking, endurance high
question
terriers
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-not good with other dogs -hunting -good vision, bad smell and hearing
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hound dogs
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-beagles, daschund, whippet -pack animals -hunting -independent/hard to train -search and rescue -PTSD assistance and low BP alert
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working dog breeds
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-akita, boxer -active and patient -good agility -police, military, search and rescue comfort -guide therapy -not good for novice owners
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ideal assistance dog
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-sound temperament and physical structure -relatively low arousal -desire to please -low initiative/look for direction -tolerant of invasion
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temperament is highly heritble
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true
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most assistance dog organizations choose what kind of breeds, meaning breeds that retain youthful characteristics
answer
neotinized
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characteristics of neotinized breeds
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floppy ears, droopy jowls, low set tail, soft face
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assistance dogs (AD)
answer
-dogs that are trained to perform a min of 3 tasks to mitigate the effects of an individual's physical, neurological, psychological, or other medical related disability -provides everyday life skills that enable the private placement client (PPC) to perform more independently than they would w/o the AD -min of 1110 hours of specialized training over a min of 6 consecutive months -must re-certify annually until retirement
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3 categories of AD
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-guide dog -hearing dog -service dog
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types of service dog
answer
-PND -MED
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physical/ neurological disorder (PND)
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-mobility assistance (MAD) -sensory development/ tactile pressure (STP)
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MAD
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-client is generally a wheelchair user or has a mobility limitation -needs help with balance or stability task ex: retrieval, lights on/off, doors, brace ADA public access= full
question
STP
answer
-client has been diagnosed with a sensory, developmental, or mood disorder- primarily autism task ex: behavior interruption, deep pressure stimulation ADA public access= full
question
medical alert assistance dog (MED)
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-psychiatric (PSY) -allergen detection (ALG) -incidence responce (IRG) -diabetic alert (DAD) -hearing (HRG)
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PSY
answer
-client has been diagnosed with a psychological or mood disorder, primarily PTSD and/or traumatic brain injury task ex: behavior interruption, "pay attention" command- when someone is coming in behind them, ADA public access= full
question
ALG
answer
-client is an individual with a particular allergy (peanuts, bees, etc.) task ex: dog will alert to the presence of the allergen within the environment ADA public access= full
question
IRG
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-client is an individual with disease disorder with necessary emergency response (seizure, etc.) task ex: dog is trained to respond to an emergency situation and then perform a pre-defined set of commands to provide notification of the individual's condition ADA public access= full -NOT alert dogs
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DAD
answer
-client is someone with diabetes task ex: alert of low blood sugar ADA public access= full
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HRG
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-someone with bad hearing/ complete hearing loss task ex: alert to sounds and other things the individual can not hear (door bell, people, etc.) ADA public access= full
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facility dogs (FD)
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-trained, certified, and placed with specific individual who will use the dog within his/her profession/volunteer activities to provide an educational instruction to students with special needs -min of 6 consecutive months of specialized training -facility dogs must re-certify every year or every other year until retirement -annually=RFD (rehab facility dog), PFD (psychiatric facility dog) -bi annually= SCT (scent detection), CRD (crisis response), CAE (canine assisted education), and TFD (therapeutic facility dog
question
types of facility dogs
answer
-rehab (RFD) -psychiatric (PFD) -scent detection (SCT) -canine assisted education (CAE) -therapeutic (TFD) -crisis response (CRD)
question
RFD
answer
-works in therapeutic and rehabilitative environments -handler is a clinical therapist or medical professional such as a PT, OT, etc. ADA public access= conditional
question
PFD
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-provides therapeutic interventions by working with psychologists/ psychiatrists/ counselors within psychiatric treatment facilities -handler is generally a medical health practitioner ADA public access= conditional
question
SCT
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-dog is specifically trained to provide medical and/or environmental aid by being trained to detect specific smells within their surrounding area task ex: beg bug, arson detection, search & rescue ADA public access= conditional
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CAE
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-dog is trained to perform inside the special and/or regular educational classrooms or learning settings- assist teachers -handler is an educational provider -must work at school, not volunteer ADA public access= conditional
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types of CAE
answer
-general ed -special ed -READ
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TFD
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-used in visiting nursing homes, hospitals, hospice, and/or schools -sole mission= provide joy -handler is a certified volunteer ADA public access= conditional
question
types of TFD
answer
-medical -general ed -special ed -READ
question
CRD
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-dog works with first responders -provides comfort in emergencies at hospitals and in scene of emergency -trained to ride in emergency vehicles -handler is generally a first responder ADA public access= conditional
question
emotional support dog (ESD)
answer
-trained to provide comfort to their handler within own home or other dog friendly locations -private placement client (PPC) is generally affected by some sort of disability, but does not need or could not utilize an assistance dog -min of 140 hours of training plus min of 2 months consecutive facility training task ex: emotional support for vets ADA public access= fair housing only
question
ADA- Americans w/ disabilities act
answer
-certified service dogs working w/ a client fall under federal law -public access rights are governed by the ADA of 1990, sect. 36
question
ADA defines a service dog as
answer
any dog that is individually trained to do work or perform tasks for the benefit of an individual with a disability- including a physical, sensory, psychiatric, intellectual, or other mental disability. Other species of animals, whether wild or domestic, trained or untrained, are not service animals for the purposes of this definition. *changed in 2011
question
ADA states a service dog must perform tasks according to
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"the work or tasks performed by a service animal must be directly related to the handler's needs"
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ADA states that the crime deterrent effects of an animal's presence and provision of emotional support, well-being, comfort, or companionship do not constitute a service dog
answer
true
question
what can a person NOT be asked about their service dog
answer
-what their disability is -why they need the dog -for "paperwork"
question
what CAN a person be asked about their service dog
answer
-for the dog's ID -what tasks does the dog perform
question
if a dog qualifies as a service dog under ADA, they are entitled to access of...
answer
any public place to accompany their user
question
other patrons/business owners do not have the right to refuse access on the claim of...
answer
allergies, sanitation, private property, etc.
question
are service dogs subject to service fees
answer
no
question
service dogs may be denied access or asked to leave only if...
answer
they bark excessively (not job related) or show substantiated aggression
question
fair housing
answer
-dogs who qualify as service dogs under ADA qualify to reside in fair housing -this means landlords must allow the assistance dogs to reside regardless of a "no pet" policy
question
FAA (federal aviation admin)
answer
regulations for dogs accompanying passengers: -carriers shall accept as evidence that an animal is a service dog, ID cards, other written docs, presence of harness or markings on harness, tags, or the credible verbal assurances of the qualified individual with disabilities using the animal -animal shall accompany a qualified individual with disabilities in any seat in which the person sits, unless the animal obstructs an aisle or other area that must remain unobstructed in order to facilitate an emergency evacuation
question
FAA trainer's rights
answer
-rights of a trainer working with an AD in training are governed by individual state's regulations -trainers are afforded the same rights as a person with a disability while engaging in training sessions
question
ADI- assistance dog's international
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-coalition of non profit assistance dog organizations -assistance dog orgs that pass ADI's comprehensive accreditation become ADI member programs and are regularly assessed to ensure that they meet the high standards expected
question
ADI purposes
answer
improve training and improve staff education
question
ADI ethics
answer
-temperamentally screened and emotionally sound for service work -physically screened to be sound and in good health -trained using humane training methods providing for the physical and emotional health of the dog -placed with client able to provide stable environment
question
ADI assistance dogs in public
answer
-clean and well groomed -potty trained -does not solicit attention/food -does not disrupt normal course of business/activity -does not vocalize outside of task -shows no aggression
question
ADI training
answer
-specifically trained to perform 3+ tasks to mitigate client's disability -works calmly in harness/leash -will lay quietly beside handler without obstructing pathway -bathroom on command -stays within 24 inches of trainer on leash
question
ADI client standards
answer
-have right to be treated with respect and dignity by all associates of the organization -have right to receive sound education/training on how to be a responsible user of an AD -have right to ask for additional training, behavioral management, vet problems, legal problems -personal files are secure and private -will not be required to participate in fundraisers or public relations without their expressed and voluntary consent
question
ADI standards for trainers
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-trainers must understand and adhere to all ADI standards and ethics -trainers must be able to produce effective working teams that meet ADI standards as reviewed at 1 year anniversary of team -trainers must have up to date knowledge of best practices in many areas like learning theory, canine behavior, and canine care and safety
question
AAII- animal assisted intervention international
answer
-ADI members felt ADI lacked an international focus for creating standards, developing professionalism, and offering networking opportunities -began as an ADI working group in 2009 -currently about 20 US members (including p4p) -animal assisted intervention must be goal directed and directed by a practitioner with specialized expertise and within the scope of their profession -process is documented and evaluated
question
AAII membership fields
answer
-animal assisted therapy (AAT) -animal assisted activity (AAA) -animal assisted education (AAE) -animal support (AS)
question
animal assisted therapy (AAT)
answer
-promotes improvement in physical/ social/ emotional/ cognitive functioning -health/ human services professionals
question
animal assisted activity (AAA)
answer
-less goal oriented -AAA practitioners and/or handlers are specially trained -teams may also participate in AAT
question
animal assisted education (AAE)
answer
-formally goal directed -directed by education professional -FD-CAE
question
animal support (AS)
answer
-not an intervention -support given by professional organization -ex: p4p
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NC state laws governing trainer's rights
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trainers have public access rights similar to someone with a disability
question
first assistance dog developed
answer
guide dog
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first service dog developed
answer
mobility
question
all service dogs
answer
full public access
question
all facility dogs
answer
conditional public access
question
type of dog with no public access
answer
emotional support
question
am i crying
answer
not yet
question
"through a dog's eyes" film
answer
-canine assistants organization -outside of ATL -live in kennels before training -founder: Jennifer Arnold/ chief exec: Gary Arnold -every other month a new group starts training camp -Dr. Adam Miloski studies bond between dogs and humans -training begins at 7 weeks and lasts 18 months -emotional connection is important with tasks -Jennifer (founder) has MS -start training with posturing -minimal movement and cues -after 2 weeks almost all commands are taught -mainly labs and goldens -at facility for 18 months besides a few fieldtrips -Aiden Young: 6 years old, cerebral palsy -Bryson Casey: car accident -Chase and Connor: CP -Destiny: diagnosed w/ epilepsy at 6 yrs old
question
"glory hounds" film
answer
Kent & Zora -german shepherd 3.5 years old -dogs are trained for high risk missions -dogs detect IEDs (bombs from Taliban) -can smell, detect, and disarm -Zora dies with grenade hit -Kent goes home with box of ashes -NC arrival Drew & Emily -Helmond Afghanistan -hat cam records first outing -trained to smell people -wife home pregnant -team stops for water and is hit with IED -dog has PTSD -deployment gets cut short- team goes home -Drew goes home to newborn -NC arrival Len & Azza -patrol explosive dog -did combat training in Alaska (much colder) -birthplace of Taliban -encounter locals on path -caught in bomb hit -Len loses 6 fingers -meets up with Azza at airport Durward & Falko -attack & explosion detection -base camp attacked -detected first IED of 4 hidden -21st birthday celebrated -lost wedding ring -goes home to wife -NC arrival
question
Mark & Palmer
answer
-5th grade teacher at Pine Valley -dog carries things -quick bump -dog shows high levels of self control > avoids tracking down smells, chills in bed rather than wandering -almost 3 years old -dog motivates kids to do homework and get good test grades -teaches math and science -helps one student with sexual trauma -working with social worker= intervention -reading with students= education -bringing tests to students= activity -teachers use dogs to lower blood pressure, etc. -dog chooses job
question
guest panel
answer
Don & Ruff -staff volunteer -private practice -facility dog Kaitlyn & Fisher -district attorney -works with victims -facility dog Mike & Rosey -business analyst -former marine -helps with PTSD -helps with hearing Adam & Rushmore -retired marine -retired fireman -helps with anxiety
question
Cece & inmates video chat
answer
-day starts between 5 and 6am -mandatory training at 4pm -9pm =end of night > decompress with dog -dog training in prison is used to help build connections with dogs outside -Matt, Hallie, and Mitchell on vid chat -56 people in unit, about 37 are trainers -about 40 dogs currently -gymnasium setup -secondary trainers may also be primary trainers to different dogs -physical fitness hour every morning -laser training, fridge retrieval, etc.
question
canines for service (paper #1)
answer
-founded dec. 1, 1997 by Rick Harrison -st. louis -canines for service, canines for vets, canines for therapy and literacy -mission= dedicated to empowering people w/ disabilities to achieve greater independence -full ADI member -all rescue dogs/shelter dogs -trains mobility dogs -literacy program -common with vets -10 hour drive radius except vets which are provided to worldwide -no financial obligation besides food, etc. -80 dogs placed in 20 years
question
paws with a cause (paper #1)
answer
-founded in 1981 and was originally called ears for the deaf -mission= enhances independence nationwide -headquartered in Michigan -full ADI member -dogs are trained to perform 40+ tasks -puppy raiser model -4 phase training -re-certify every 2 years -can not have other dogs in home -no cost - trained for service, hearing, seizures, autism for children -prison training program and puppy program
question
NEADS (paper #1)
answer
-founded in mass. in 1976 -mission= provide assistance to deaf, etc. -full ADI -buy dogs or dogs are donated -no breeding at site -prison training -client pays $8,000 out of $40,000 -hearing dogs are all shelter dogs
question
canine assistants (paper #1)
answer
-Jennifer Arnold founded the organization in 1991 -mission= train dogs to improve the lives of children and adults who have physical disabilities, seizure conditions, or other special needs -service, seizure response, and companionship dogs -a new group of fifteen clients begins training camp every other month -no cost -not ADI
question
america's vet dogs (paper #1)
answer
-founded in long island in 2003 -vets only -labs, goldens, crosses, poodles -ADI accredited -prison training program -hearing, guide, PTSD, seizure, military facility -guide dogs go to US citizens at least 16 yrs old -training takes place in NY -no cost
question
4 paws for ability (paper #1)
answer
-founded in Ohio -variety of dog breeds -diabetes, seizure, hearing, mobility, autism -90% success rate -14 day training camp -client pays $17,000 of $35,000 total -mission pawsible prison training
question
canine companions independence (paper #1)
answer
-founded by bonnie bergin -service, hearing, companion, facility -graduate puppy training a 2 years old -clients must be 18+ years old and go to 2 week training camp -puppy raisers -does not provide for PTSD -not high graduation rate
question
sharon/karen (???) video chat
answer
-physical therapist -got dog in 2008 (nicky) -works in cabarrus county schools -dog is used for rehabilitation: restores sick/disabled person, ADA vs. AAT, kids feel happier and less lonely, positive attention, positive interaction with teacher -dog contributes: distraction, motivation, improved joint range of motion, improved strength, improved function tasks include -carrying -wheeling up ramp -stooping -walking -walking backwards -head control -scooting -reaching -stretching -jumping -kneeling -pulling to stand -ball handling, etc.
question
alex video chat
answer
-cerebral palsy -graduating undergrad in may & going to grad school -dog= Kingsley, had for 4 years -wants to be online math teacher -born 5 weeks premature -mom had preeclampsia & pancreatitis -oxygen was cut off to brain during birth causing premature damage -wasn't reaching normal milestones at normal rate -went through early therapy interventions -therapist suspected CP at 9 months old -muscles don't always work as wanted -like living with someone else inside -uses wheelchair -affects speech -mom & sister were volunteering at a pet expo and saw a service dog- assumed it was a guide dog -handler explained dog was for mobility and gave mom contact info -org. was not placing dogs at the time, but passed on p4p info -got app which took 2 months to fill out -moved on to home visit, passed, and joined bump -met 8 puppies, new Kingsley was the one -started training with Kingsley and inmates a couple months after bump, for about a year -trainer was released from prison and couldn't train -dog went home with Alex -not fully certified, limited access -big fear of thunderstorms led dog to continue training in NC -first service dog in Marion county schools -began at school for an hour a day and then became an all day thing -walked at graduation together -Kingsley won service dog of the year last year
question
autism video
answer
-son= Jarod -lacked ability to make basic sounds and speak -didn't perform simple tasks -seemed delayed compared to similar aged cousin -brought it up to doctor at 2 year checkup -thought to be mildly affected -seemed severely impacted during meeting and ABA treatment -mom intervened by breaking weird habits and stopping strange behaviors -helped limit the behaviors as time passed -was criticized in support group after sharing success story
question
paper #2 disabilities
answer
-intellectual disability -autism -physical disability -spinal chord injury -PTSD and TBI -child/adolescent behavioral diagnoses
question
intellectual disability (paper #2)
answer
-affects 3 areas of daily living: conceptual, social, practical -diagnoses requires deficits in functioning before 18 years old -IQ below 70 is common -mild, moderate, severe, or profound -types of risk factors: biological, social, behavioral, educational -more common in males -lifelong but severity can change -ex: downs syndrome, ADHD -dogs used for mobility, sensory tactile pressure, rehab facility
question
autism (paper #2)
answer
-dani's awk af presentation -more common in males -hard to diagnose before age 2 -communication difficulties -over focussed interests -can bring high intelligence and good memory -strong correlation with other disorders -dogs used for sensory tactile pressure -search and rescue, tethering
question
physical disability (paper #2)
answer
-an acquired or congenital physical and/or motor impairment that may interfere with the development or function of the bones, muscles, joints, and central nervous system -spinal chord injury, spina bifida, muscular dystrophy, multiple sclerosis, brain injury, tourettes -dogs do various tasks: mobility, sensory tactile pressure, retrieval
question
spinal chord injury (paper #2)
answer
idk sorry Lola send me ur prezi bish
question
PTSD and TBI (paper #2)
answer
-often coexist -PTSD occurs after the expectance or occurrence of life threatening events -common in vets, child abuse victims -women are twice as likely to be diagnosed -4 symptoms: reliving the event, avoiding situations that remind you of event, negative changes in beliefs, always alert -treatment: psychotherapy, meds, mindfulness techniques, neurofeedback techniques -TBI is a sudden blow or jolt to brain -common in vets, car accidents, after falls -mild: concussion -severe: loss of consciousness -psychiatric assistance dog (med) -search and rescue, interrupt nightmares -2 common commands: pay attention & anchor
question
child/adolescent behavioral diagnoses (paper #2)
answer
i again do not know bc i stopped taking notes :/
question
WOOP
answer
DAS IT
Civil Law
Fair Housing Act
Fair Market Value
Long Term Contract
Real Estate Finance Fundamentals
Terms And Conditions
Real Estate: Property Management Exam Questions/Answers – Flashcards 19 terms

Deloris Connelly
19 terms
Preview
Real Estate: Property Management Exam Questions/Answers – Flashcards
question
When a broker or property manager signs a contract to manage an owner's property he becomes a
answer
Fiduciary
question
In establishing a client's trust account, a property manager must do all of the following
answer
-control the receipts and disbursements on the account -use pre-numbered checks for the account -be an authorized signer on the account
question
An owner of real estate who engages a property manager to manage his property must receive a copy of the signed property management agreement.... when?
answer
PROMPTLY
question
If a tenant's termination of tenancy occurs at the same time as the property manager's termination of the applicable property management agreement...
answer
the property manager must complete a final accounting procedure involving the tenant's security deposit unless the owner directs otherwise.
question
A licensed real estate property manager may authorize...? I. another licensed property manager to supervise his property activity in his absence II. an unlicensed bookkeeper to supervise in his absence
answer
I only
question
Oregon law requires that checks used to disburse funds deposited into a clients's trust account be
answer
pre-numbered
question
When evaluating the data in a neighborhood market survey, a residential property manager will be most concerned with
answer
trends in population composition
question
Property managers are responsible for...
answer
I. protecting the condition of real estate II. maximizing income from real property
question
A person licensed as a real estate property manager may accept a finder's fee from a principal real estate broker for activity involving
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the rental of real property
question
A property manager should be aware of the break-even point to any buildings he manages. The BREAK-EVEN Point is:
answer
The occupancy level at which gross income for a property equals total fixed and variable operating costs
question
Which of the following statements concerning property management accounting are TRUE? a. Posting to the owner's ledger account must be done at least once every three months b. Reports to the owner must be given only upon request by the owner c. Property managers may transfer funds between owners' accounts of two or more different owners with written authorization by the owners. d. The available credit balance in an owner's account includes tenants' security deposits.
answer
c. Property managers may transfer funds between owners' accounts of two or more different owners with written authorization by the owners.
question
In property management, an operating budget
answer
is a projection of anticipated costs for the annual operation of a building.
question
Which of the following would NOT be a consideration in selecting a tenant? a. Racial and ethnic backgrounds of the tenants b. The size of space versus the tenant's requirements c. Compatibility of the business to the other tenants d. The tenant's ability to pay
answer
a. Racial and ethnic backgrounds of the tenants
question
A percentage lease is a lease
answer
"which covers the lending of money and interest charged thereon."
question
The manager of an apartment complex that falls within the requirements of federal fair housing laws may legally do which of the following? I. Segregate the families with children in specific portions of the complex II. Charge families with children higher rents than for tenants without children
answer
Neither
question
Under the Oregon Landlord and Tenant Act, landlords are responsible to provide
answer
-adequate trash and garbage receptacles. -weatherproof and waterproof roofs and exteriors
question
The client's trust account for a property manager must
answer
Bear the words "Clients' Trust account" on the face of the checks used for the account.
question
According to the Oregon Landlord and Tenant Act, a tenant must receive a notice of which of the following when a rental agreement is signed:
answer
I. Utilities paid by the tenant which benefit other tenants. II. Any pending legal proceeding against the landlord which involves the rented property if the rented property includes no more than 4 dwelling units. III. Name and address of the property owner or the person authorized by the owner to manage the property.
question
Which of the following is NOT a common characteristic of property management agreements? A. Provision for monthly report B. Long-Term contract period C. Specification of management fees D. Names of parties to the agreement
answer
B. Long-Term contract period
Fair Housing Act
Highest And Best Use
Marketing-Real Estate
Real Estate Finance Fundamentals
Single Family Homes
Missed or Unknown – Flashcards 208 terms

Daniel Thompson
208 terms
Preview
Missed or Unknown – Flashcards
question
How many days after notice of discrimination does someone have to file a complaint under Colorado Fair Housing Laws with the Colorado Civil Rights Commission?
answer
1 Year
question
What is the monthly payment for an amortized loan with a principal of $10,000, interest rate at 5%, and a 5 Year Loan Term.
answer
$188.88 Look at the amortization table and find the intersection of 5 Years and 5%. There, you will find $18.88 per every $1000 borrowed. Since the amount borrowed is 10 thousands, you multiply 10x18.88.
question
$32.50 Loan price/100 x.01
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Documentation fee on a $325,000 loan from out-of-state?
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You cannot force them. Just indicate that they refused and move on.
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What do you do if the seller refuses to sign the seller property disclosure?
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If it was only verbally communicated, the buyer doesn't have much recourse. She could terminate but may lose escrow money if it was past inspection objection. If they can mutually agree to move date back then great, otherwise there isn't much proof.
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If someone said over the phone that they would fix the roof per the inspection report, but then never did, does buyer terminate or can they mutually agree to move the date back, or if she verbally committed does she need to fix it or lower the price?
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B. Pay the renewal fee, and pay half the renewal fee for it being over 30 days I) If proper application is made within thirty-one days after the date of expiration, by payment of the regular three-year renewal fee; (II) If proper application is made more than thirty-one days but within one year after the date of expiration, by payment of the regular three-year renewal fee and payment of a reinstatement fee equal to one-half the regular three-year renewal fee; (III) If proper application is made more than one year but within three years after the date of expiration, by payment of the regular three-year renewal fee and payment of a reinstatement fee equal to the regular three-year renewal fee.
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A broker allowed her license to expire and renewed it 32 days after the expiration date. What does she need to do to reinstate her license? A. Pay the renewal fee B. Pay the renewal fee, and pay half the renewal fee for it being over 30 days C. Pay the renewal fee and retake the state examination D. Pay the renewal fee and take 8 credit hours of continuing education
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C. Death of the sales associate Contract is with broker/employing broker and not the sales associate. As a side, please note that on a purchase contract the rules change. Although the significant damage to the house would likely result in the buyer having the ability to bail on the contract, the death of either party does not automatically terminate the agreement. The agreement is still binding on the estate of the deceased. The reason for this is a contract like a buyer agency or listing contract is considered to be a personal services agreement and as such the death of either party terminates it. However a purchase contract is not a personal services agreement and as such the death of the parties does not automatically terminate the agreement.
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There was a question on there that stated, "a buyer employed a broker through a sales associate. Which of the following would not terminate the buyer agency." A. The house was significantly damaged by a fire B. Death of the broker C. Death of the sales associate D. I don't remember but it was not correct
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- the house has the most beautiful view of the lake Puffing Law & Legal Definition. The term "puffing" refers to "extravagant claims made by sellers in order to attract buyers." It is the exaggeration of the good points of a product, a business, real property, and the prospects for future rise in value, profits and growth.
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Which statement is "mere" puffing? - something about the value of the house increasing by 25% - the house has the most beautiful view of the lake - kids in the neighborhood have the highest SAT scores - this house has the lowest utility bill in the neighborhood
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Yes, as long as they've disclosed.
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Can an agent have their spouse purchase a property they are listing with disclosure to the seller and still receive a commission?
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June is a listing broker in Colorado. When and how must she disclose to a potential buyer that she has a working relationship with the seller? A. in writing, before any conversation or discussion B. in writing, at the time the contract to buy and sell is signed C. in writing, before providing specific real estate services D. orally, before writing the contract and in writing before closing
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sign a security agreement and file a financing statement The Uniform Commercial Code (UCC or the Code), first published in 1952, is one of a number of uniform acts that have been promulgated in conjunction with efforts to harmonize the law of sales and other commercial transactions in all 50 states. The goal of harmonizing state law is important because of the prevalence of commercial transactions that extend beyond one state. For example, goods may be manufactured in State A, warehoused in State B, sold from State C and delivered in State D. The UCC therefore achieved the goal of substantial uniformity in commercial laws and, at the same time, allowed the states the flexibility to meet local circumstances by modifying the UCC's text as enacted in each state. The UCC deals primarily with transactions involving personal property (movable property), not real property (immovable property). The UCC-1 "security agreement" establishes a lien against personal property. Rather than filing the "security agreement" the UCC allows a short form called the "financing statement" to be recorded. This occurs in real estate transactions when personal property is sold with real estate; such as the sale of a furnished home or a fully equipped restaurant.
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When borrowing for the purchase of personal property; such as when acquiring a furnished home, The Uniform Commercial Code requires the borrower: pledge real property as chattles sign a security agreement and file a financing statement record the deed obtain an abstract of title
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offeror and offeree To have a valid contract, it must be signed and accepted and that acceptance must be communicated to the person making the offer before the contract deadline.
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Acceptance of a written offer to purchase real estate requires the signature of the: offeree offeror and offeree offeree and agent offeree, offeror, and agent
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a remainder interest holder purchased the life tenant's interest
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A life estate is lost by the process of merger which occurred when: the leasehold estate became a freehold estate a remainder interest holder purchased the life tenant's interest title was taken as tenants in entirety the public trustee obtains an interest in the property called naked title.
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implement a local master plan Zoning ordinances control the type, location and density of building. This is why you often do not see commercial enterprises in residential areas, or apartment complexes in single family home areas. These restriction are detailed in local master plans and enforced by zoning ordinances.
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The PRIMARY purpose of zoning ordinances is to regulate business districts establish appropriate boards for appeal implement a local master plan control the quality of building materials
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a homeowner Inverse condemnation is a lawsuit brought by a property owner seeking compensation for land taken for a public use by a government entity with eminent domain powers. Eminent domain is the taking of private land for public use with payment of compensation by a government entity. Inverse condemnation actions are usually brought when the government has limited use of private land to an extent that the value of that land is greatly reduced, or where the government has allowed the public to make use of private land. Inverse condemnation may be a direct, physical taking of or interference with real or personal property by a public entity. For example, inverse condemnation liability has been found due to flooding, escaping sewage, interference with land stability, impairment of access, or noise from overflying aircraft.
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A lawsuit for inverse condemnation may be brought by a homeowner the city the police the zoning board
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1 transaction every 24 months If your client(s) sold their main home and made a profit, they may be able to exclude that profit from taxable income. Here's how: Individuals can exclude up to $250,000 in profit from the sale of a principal residence (or $500,000 for a married couple) as long as s/he has owned and lived in the home for a minimum of two years. Those two years do not need to be consecutive. In the 5 years prior to the sale of the house, s/he needs to have lived in the house for at least 24 months in that 5-year period. This 2-out-of-5 year rule to can be used to exclude profits each time a principal residence is sold or exchanged. Generally, the exclusion can be claimed only once every two years. Some exceptions do apply.
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How many times can the exclusion on capital gains taxes be claimed? 3 transactions over the past 12 months 5 transaction over the past 15 months 1 transaction every 24 months 2 transactions every 18 months
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Buyer's responsibility because she had missed the inspection deadline. The buyer has no recourse. After the inspection deadline passes, the buyer has no recourse to object to a pre-existing defect. Should a defect occur after the inspection deadline, the seller would have responsibility for the repair as per the terms of the purchase agreement.
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Just before the close, the buyer noticed a brokern window and a mandoor hanging by one hinge in the detached garage, her inspector had missed these as he considered outbuildings as outside the scope of the inspection. What is the buyer's recourse? Seller must fix window Buyer's responsibility because she had missed the inspection deadline. The Inspector is at fault Buyer may terminate the agreement or negotiate a settlement with the Seller
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RESPA applies to nearly all first loans on residential up to four family properties including construction loans Respa Applies to all loans except: - Business, commercial, or agricultural - temporary loans, such as construction (unless lender issues commitment for permanent financing - loans for vacant property in which the financing won't be used to build improvements. (if there will be improvements built in 2 years, repsa applies) - Assumptions - Conversions - Transfer of loan in secondary market
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All of the following are true when a lender must comply with RESPA, except: a lender is required to provide a borrower a good faith estimate of loan settlement costs at time of loan application or within three days of loan application a broker is required to provide a uniform settlement sheet prescribed by HUD for every closing under RESPA a lender or seller may not require the use of a particular title insurance which is to be purchased by the buyer RESPA applies to nearly all first loans on residential up to four family properties including construction loans
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B. seller is responsible for the acts of this agent and is liable to the buyer The seller and the broker are responsible for these acts. After satisfying the buyer, the seller could sue the broker.
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A broker who has the authority to receive deposits on behalf of his principal (the seller) misappropriates a deposit receipt. In such a case, if the buyer sues the seller, the: A. broker alone is responsible B. seller is responsible for the acts of this agent and is liable to the buyer C. the buyer is responsible because he has the choice of making his deposit check payable to the seller or to the seller and broker jointly D. the buyer and the seller share responsibility
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Indemnification Here is a definition of indemnification from The Free Dictionary: "To compensate for loss or damage; to provide security for financial reimbursement to an individual in case of a specified loss incurred by the person." Agent duties: Loyalty Confidentiality Disclosure Obedience Reasonable Care and Diligence Accounting Honesty is required in all client/customer transactiosn
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Agency means the broker owes to their clients certain duties. Which of the following is NOT TRUE: Loyalty Honesty Accounting Indemnification
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limited common element Anything that is part of the unit; stairs, balcony, etc; are limited common elements.
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The outside stairs leading to a particular condominium is an example of a: common element limited common element emblement trade fixture
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General warranty Because the grantor GUARANTEES that they have the right to pass title.
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The grantor receives the greatest amount of liability by transferring title to the grantee using which kind of deed? Special warranty General warranty Quit claim Trust deed
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Request if a CERCLA assessment report has been issued in the prior 2 years making the property owner innocent of past environmental liabilities as per the Brownfield Revitalization Act Some would say the "choose the longest answer" strategy would lead you to the correct answer on this question and they would be right. A better technical explanation is CERCLA is more commonly known as the Superfund law. CERCLA generally says that all current and past owners of a property may be held responsible for environmental cleanup regardless of whether any particular owner was responsible for the contamination. Recognizing that this could a chill on anyone wanting to purchase industrial parcels, the government among other laws passed the Brownfields Revitalization Act. Brownfields is a term for contaminated properties. This act is an amendment to the federal Superfund law, which provide for BFPP (bona fide prospective purchaser) status for new buyers. This status provides assurance to lenders that the borrower will not be liable and will not affect their ability to repay the lender. Attaining BFPP status requires the client to jump through a number of hoops such as conducting a Phase 1 environmental assessment, but a lender would likely first ask if BFPP status has already been granted.
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A client is buying an old gas station with the intention of building a flower shop. The lender will likely ask for: A Phase 1 environmental assessment with a visual inspection and neighbor interviews An Environmental Impact Study (EIS) A Phase 2 environmental statement with soil testing Request if a CERCLA assessment report has been issued in the prior 2 years making the property owner innocent of past environmental liabilities as per the Brownfield Revitalization Act
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None of the above With a VA loan the seller can pay all closing costs, the funding fee and pay off the veteran's debts. The maximum amount that the VA will guarantee varies by region of the country, but there is no maximum loan amount.
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Which statements are true about VA guaranteed loans? The seller cannot pay all the closings costs, the funding fee or pay off any of the veteran's debts The borrower cannot pay discount points There is a maximum loan amount VA will lend None of the above
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The changes must be allowed as long as the tenant pays for it Owners are not required to allow the tenant to make modifications to a unit that the law deems "unreasonable." An unreasonable modification would be one that is not related to the person's disability — the installation of a dishwasher, for example. Whether a modification is reasonable must be evaluated on a case-by-case basis guided by previous HUD decisions and decisions made in federal court. However, federal fair housing laws make it illegal for owners to refuse to permit tenants to make reasonable modifications to their unit if the tenant is willing to pay for the changes. The reasonable modification process is a mutual search for a solution. More info: A housing owner must allow a person with a disability to make reasonable physical modifications to a unit if needed in order for that individual to fully use and enjoy the housing unit. Examples of modifications might be the installation of grab bars in the bath by someone with a physical disability or visual (flashing light) fire safety devices for an individual with a hearing loss. Private rental housing Owners may require that the modifications be completed in a professional manner and be in compliance with all applicable building codes. In addition, owners may require that the tenant restore the unit to its original condition before vacating. Publicly-assisted rental housing In publicly-assisted housing which is covered by Section 504 - including public housing owned and operated by Public Housing Authorities and other HUD assisted housing- the landlord is often required to make, and pay for the modifications if the cost is not prohibitive. Housing Choice Voucher rental assistance A private landlord participating in the Housing Choice Voucher program is generally not required to pay for modifications but must permit them. However, the tenant can request that the PHA administering the Housing Choice Voucher program provide a "reasonable accommodation," and pay a higher rent for the unit, in order to allow the landlord to pay for some modifications to the unit if the landlord agrees to do so.
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A tenant with disability would like to make reversible changes to the property that effect the structure. In this scenario: The changes must be allowed, but only in an apartment building that has more than 4 units The changes must be allowed as long as the tenant pays for it The tenant must get approval from the owner for any change The landlord must pay for the changes to meet ADA regulations
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reversionary interest Bob retained a reversionary interest. It reverts to Bob or his heirs when Sally dies. A reversion occurs when a property owner makes an effective transfer of property to another but retains some future right to the property. A reversion differs from a remainder because a reversion arises through the operation of law rather than by act of the parties. A remainder is a future interest that is created in some person other than the grantor or transferor, whereas a reversion creates a future interest in the grantor or his or her heirs. If Sara's transfer had been "to Shane for life, then to Lily," Lily's interest would be a remainder.
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Bob granted Sally a life estate but retained a future interest. Bob retained a reversionary interest remainder interest periodic estate option interest
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Tenancy in common Joint tenancy has the rights of survivorship and the other two are leasehold estates and have no right of ownership. Tenancy-in-common means they can give, will,or sell their percentage of ownership to whomever they please without disturbing the other owners interest.
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Two people own property with no rights of survivorship. This type of estate is called: Tenancy in common Joint tenancy A periodic estate An estate for years
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voidable A voidable contract, unlike a void contract, is a valid contract. At most, one party to the contract is bound. The unbound party may repudiate the contract, at which time the contract is void. An option to purchase is a voidable contract as the holder (buyer) of the option can choose to execute or not execute the agreement whereas the seller of the option is bound to its terms. Another way to look at it is: an agreement which is enforceable by law at the option of one or more parties but not at the option of the other or others is a Voidable Contract. A contract can become voidable when the consent of one or more of the parties to a contract is obtained by coercion, undue influence, misrepresentation or fraud an agreement which is enforceable by law at the option of one or more parties but not at the option of the other or others is a voidable contract. This is the reason a contract with a minor is a voidable contract by the minor or a minor's legal representatives (the minor by him/herself does not have legal capacity to enter a contract) and not a void contract.
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If a 17 year old signs a contract is the contract: void voidable unenforceable invalid
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license A license gives a temporary use that is different from the zoning of a property or properties. It is a personal, revocable, nonassignable right, and is not considered an interest in the land, and it terminates upon the death of either party, or the sale of the land.
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A permissive use that gives no future rights to the user would be a(n): license easement nonconforming use encroachment
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the contract remains valid and enforceable The seller's heirs are responsible for seller's actions.
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Assuming a real estate sales contract does not address the issue of death "except as written", which of the following actions apply if the seller dies prior to settlement: the contract becomes null and void the contract remains valid and enforceable the seller's estate has the right to cancel the contract the buyers may cancel the contract
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writ of execution Writ of execution: a judicial order that a judgment be enforced. Writ of attachment: A writ of attachment is a court order to "attach" or seize an asset. It is issued by a court to a law enforcement officer or sheriff. The writ of attachment is issued in order to satisfy a judgment issued by the court. Lis Pendens: In United States law, a lis pendens is a written notice that a lawsuit has been filed concerning real estate, involving either the title to the property or a claimed ownership interest in it. The notice is usually filed in the county land records office. ... Lis pendens is Latin for "suit pending".
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A court orders real property sold, to satisfy an unpaid lien, in an action known as a(n): easement encumbrance attachment writ of execution
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It is an enforceable contract and Rockwell Realty is entitled to a commission. The postmark establishes that the contract has been accepted.
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A commercial property is listed with Rockwell Realty at $ 70,000. Rockwell Realty negotiates with Woods who is familiar with the property and who agrees to buy the property at that price. Rockwell Realty prepares an agreement of sale which is signed by Woods, the buyer. Copies are then mailed to Downes, the owner for signature on May 31, 2007. The copies are received by Downes on June 3, 2007. He signs and mails the signed copies to Woods the same day. The copies are received by Woods on June 5, 2007. On June 4, 2007, Woods wired Downes, "Offer withdrawn, property not for sale". Under these circumstances: It is not an enforceable contract. Rockwell Realty is not entitled to a commission. It is an enforceable contract and Rockwell Realty is entitled to a commission. It is not an enforceable contract but Rockwell Realty is entitled to a commission.
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3 The law is very clear on this point. RESPA (Real Estate Setlement Procedure Act) prevents lenders from holding too much money in an escrow bank account. This means they can only charge the minimum amount, and then the regular monthly charges for the escrowed items. However, they are permitted to charge the full amount if the taxes are due immediately or within 60 days of the closing. The basic rule of thumb is the mortgage holder can hold no more than three months of payments at any one time. Just how do you determine how much you need to fund the escrow account with at closing? Take all the yearly reserves required by the lender to be escrowed. This can include taxes, property insurance and sometimes other recurring costs. Divide the resulting number by 12 months. Then, multiply the monthly payment amount by the number of months required by the mortgage holder to go into escrow. The amount of fund required upfront into escrow at closing depends upon how near tax time is to the closing date. If it's within 60 days of tax time, the entire year of payments may be required at closing. If taxes are paid at closing, no more than 3 months will be required to be escrowed for next year's tax payments.
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A lender may hold how many months of tax reserve in an escrow account? None 1 2 3
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identify the broker's "escrow or trust" account including licensed name, broker's name, type of account
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In order for each beneficiary to be covered in case of bank failure, the broker must: open a new account for each earnest money check deposit each check into a working account identify the broker's "escrow or trust" account including licensed name, broker's name, type of account the trust account must be with a title company
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No, this is outside the scope of permitted activities for a holder of a real estate license This violates the Conway-Bogue court decision which in Colorado binds the conduct of agents. Agents are recognized authorities at conducting real estate transactions. We are not experts at tax and title matters. Those are within the recognized legal expertise of accountants, title examiners and lawyers. A real estate broker is expected to recommend to clients they seek expert advice when the matter is outside their area of expertise.
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A Seller asks an agent/friend to accept compensation to advise on Tax and Title matters for a property the seller is considering buying. Can the agent do this? Yes, brokers provide this advice commonly Yes, as long as the agent is engaged as a buyer's agent No, the agent is not a buyer's agent and therefore cannot provide this advice No, this is outside the scope of permitted activities for a holder of a real estate license
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impossibility of performance Impossibility-of-Performance Doctrine is a principle whereby a party may be released from a contract on the ground that uncontrollable circumstances have rendered performance impossible.
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The real estate contract for a specific property for use as an unlicensed petroleum sales operation was forced to terminate. The termination was the result of: impossibility of performance novation breach of contract operation of law
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Truth in Lending Act What is the right of rescission? The right of rescission is a consumer protection law found within the Truth in Lending Act Truth In Lending Act -- Regulation Z The Truth in Lending Act (TILA), Title I of the Consumer Credit Protection Act, is aimed at promoting the informed use of consumer credit by requiring disclosures about its terms and costs. In general, this regulation applies to each individual or business that offers or extends credit when the credit is offered or extended to consumers; the credit is subject to a finance charge or is payable by a written agreement in more than four installments; the credit is primarily for personal, family or household purposes; and the loan balance equals or exceeds $25,000.00 or is secured by an interest in real property or a dwelling.
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Right of rescission is part of: Real Estate Settlement Procedures Act (RESPA) Truth in Lending Act Consumer Protection Act Fair Housing Act
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2 bedrooms, large lot, nothing down Since nothing is a specific amount and the down payment is one of the trigger items.
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The following are samples of advertisements placed by a broker on some of his listings. Which would be subject to the provisions of the Truth In Lending Law? 2 bedrooms, large lot, nothing down 3 bedrooms, den, $80,000, E-Z terms 3 bedrooms, 1 bath, $75,000 excellent VA/FHA financing 4 bedrooms, family room, owner will carry financing
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Valuable consideration Explanation Athough consideration is an essential element of a valid deed, the law makes no distinction as to the nature of consideration. A property may be deeded for $1 or "for love and affection" or for whatever consideration the grantor considers acceptable.. Although it is recommended that a deed be recorded, in Colorado it is not required. The grantee protects his interest in the property by recording it - making the ownership transfer a matter of public record. Acknowledgement is also recommended, and usually required for it to be recorded. Required is: the signature of the grantor, words of conveyance (granting clause), that it be in writing, that the grantee is named, consideration (payment), a description of the ownership interests being conveyed, a legal desciption, delivery of the deed and acceptance by the grantee. In Colorado real estate, there are several types of deeds, depending on the type/amount of protection given and received from the seller and buyer. From the Colorado Real Estate Manual: Types Of Deeds There are four major classifications of deeds: (1) General warranty deed, (2) Special warranty deed, (3) Bargain and sale deed, (4) Quitclaim deed. The types of deeds differ solely in the degree of protection that the grantor (seller) promises or warrants to the grantee (buyer). No type of deed transfers any greater or lesser interest than another. For example, if a grantor conveys title in fee simple by a general warranty deed, the same fee simple ownership is conveyed as if he or she had used a quitclaim deed. However, the general warranty deed grantor promises to defend against any loss incurred due to any title defect, whereas transfer by quitclaim deed contains no such warrant. 1. General Warranty Deed. A deed in which the grantor warrants or guarantees title against defects that existed before the grantor acquired title or that arose during the grantor's ownership. It does not warrant against encumbrances or defects arising from the grantee's own acts. The usual covenants or warranties contained in a general warranty deed are: a. Covenant of seizin. Guarantees the grantor's ownership and that he or she has the right to convey it. The fact that the property is mortgaged or is subject to some restriction does not breach this covenant. b. Covenant against encumbrances. Guarantees that there are no encumbrances or claims against the property except those specifically excluded in the deed. c. Covenant of quiet enjoyment. Guarantees that the grantee will not be evicted or disturbed in possession of the property. Threats or claims by a third party do not breach this covenant. The grantee would have to actually be dispossessed before being entitled to seek recovery under this covenant against the grantor. d. Covenant of further assurance. Guarantees that the grantor will procure and deliver any other instruments that are subsequently necessary to make the title good. e. Covenant of warrant forever. Guarantees that the grantee shall have title and possession to the property. Sometimes considered part of "quiet enjoyment". The first two covenants relate to the past, and generally do not generally "run with the land" - meaning that only the current grantee may sue the grantor for a breach. The last three covenants protect against future defect and are said to run with the land - allowing any subsequent grantee to seek remedy for breach against any previous grantor. According to Colorado statute, "Covenants of seizin, peaceable possession, freedom from encumbrances, and warranty contained in any conveyance of real estate, or of any interest therein, shall run with the premises, and inure to the benefit of all subsequent purchasers and encumbrancers." (38-30-121 C.R.S.) 2. Special Warranty Deed. The grantor of a special warranty deed warrants the title only against defects arising after the grantor acquired the property and not against defects arising before that time. 3. Bargain and Sale Deed. Technically, any deed that recites a consideration and purports to convey the real estate is a bargain and sale deed. Thus, many quitclaim and warranty deeds are also deeds of bargain and sale. Bargain and sale deeds often contain a covenant against the grantor's acts, whereby the grantor warrants only that the grantor has done nothing to harm the title. This covenant would not run with the land. Examples of bargain and sale deeds with a covenant against the grantor's acts are an executor's deed, an administrator's deed, and a guardian's deed. 4. Quitclaim Deed. The grantor of a quitclaim deed warrants absolutely nothing. A quitclaim deed conveys the grantor's present interest in the land, if any. A quitclaim deed is frequently used to clear up a technical defect in the chain of title or to release lien claims against the property. Examples of such deeds are correction deeds, and deeds of release.
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To be valid, a deed must have all but: A granting clause A description of the property The signature of the grantor Valuable consideration
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Make demand for a deed of reconveyance and sue to enforce it, if it is not forthcoming
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A lender holds a trust deed and note, which has been paid in full. The lender does not record a release deed, and the lien remains of record against the property. The trustor should take which of the following steps? Record a notice of non-responsibility Record a notice of completion of payments Make demand for a deed of reconveyance and sue to enforce it, if it is not forthcoming Record an affidavit of payment
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The property may be returned to the original owner A deed restriction is a type of private agreement restricting the use of real estate. Such restrictions are usually listed within the written deed document relating to the property, and should be noted if the property is to be sold or transferred. A deed restriction can also place limitations on the title to the property, such as when a seller wishes to sell their property according specific conditions.
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If conditions for purchase are included in a deed and these conditions are violated, what is the penalty? Penalty charges are to be assessed An injunction against further use of the property A court order enforcing compliance can be issued The property may be returned to the original owner
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Refinancing of your primary residence No 3-day right on any of the approved contracts. Only on refinances.
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A three-day right of rescission can be invoked for which contract? Residential contract to buy/sell real estate Commercial contract to buy/sell real estate Exclusive right-to-buy contract (buyer's agency) Refinancing of your primary residence
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the listing agent should fully disclose all information to the seller
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A buyer submits an offer contingent upon the successful closing of their present home. the selling agent should request a copy of the contract on the contingent property the selling agent should verify the financial ability of the buyer on the contingent property the selling agent should fully disclose all information to the seller the listing agent should fully disclose all information to the seller
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The owner withdraws the counteroffer before it is accepted
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A buyer made an offer to purchase a property. The owner responded with a counteroffer. While the buyer was reviewing the counteroffer, the owner received a better offer. The owner can accept the second offer if: The owner withdraws the counteroffer before it is accepted The owner gives the first buyer notice that another offer was received and an opportunity to revise the bid The first buyer is informed, in writing, of the owner's intent to accept another offer It satisfies or exceeds all terms included in the counteroffer
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realty Real property (Realty) includes that which is affixed to the land, here, the pipeline. Real property and realty are synonymous. Personal property are items not fixed to the land. A riparian right is a form of water right. Emblements are crops. .
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An underground pipeline for irrigation of a farm is: personality realty a riparian right an emblement
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personalty Any mineral that has been removed from below the surface is personality.
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John Johnson owned a parcel of land around his copper mine. He sold the mine and property for $230,000 with the verbal understanding that copper already mined before the date of sale would not be included in the sale. The mined copper is considered by law as: realty a fixture personalty sub rosa
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higher splits typically include higher monthly office fees
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Starting out you might prefer a lower split versus keeping 100% of your commission for: typically there is more training and support given to licensees on higher splits lower splits typically include higher monthly office fees higher splits typically include higher monthly office fees typically there is less training and support given to licensees on lower splits
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results in Moe and Joe being joint tenants with each other and tenants in common with Charles When Curly sold his interest that terminated the joint tenancy with Moe and Joe, and Charles has tenancy in common with Moe and Joe, and Moe and Joe continue to be joint tenants.
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Moe, Joe and Curly are joint tenants. Curly sells his interest to Charles Chaplin. This conveyance: is invalid as Curly did not have the permission of Moe and Joe, and to convey an interest of this nature all joint tenants must sign results in Moe, Joe and Charles being joint tenants results in Moe, Joe and Charles being tenants in common results in Moe and Joe being joint tenants with each other and tenants in common with Charles
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Add an escape clause to the purchase contract An Escape Clause is a seller contingency in purchase contract which allows the seller to accept a buyer's contingent offer to purchase the property, while allowing the seller to continue to market the property.
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If a seller is selling a property, but needs to wait on the buyer to sell their other house before they can buy, what should they do, so they do not have to wait around forever. Add an escape clause to the purchase contract Add a buyer financing contigency clause to the purchase contract Add a rejection clause to the purchase contract Reject the buyers offer
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a property manager The specific duties of a residential broker will normally make them a special agent. Whereas the wider duties of a property manager generally requires them to be a general agent.
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A general agent might be considered: a buyer's broker a seller's agent a property manager an attorney
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Tom had a life estate in the home.
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Tom dies and leaves his home to his brother Bill. However Bill is quickly evicted. Why? Tom had a life estate in the home. Bill incorrectly filed his claim in probate court. The sale of the home terminated Bill's lease. IRS inheritance tax code would prohibit Bill from occupying the property.
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They are tenants in common Explanation Once the joint tenancy has been broken by the sale of the property then it is tenancy in common.
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Smith and Jones are joint tenants. Smith sells her interest to Brown. What is the relationship between Jones and Brown? They are tenants in common They are joint tenants They each have ownership in severalty The are tenants in entirety Explanation Once the joint tenancy has been broken by the sale of the property then it is tenancy in common.
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receives nothing The contract was never executory; no commission earned.
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If an offer to buy is withdrawn, the listing broker: splits the earnest money with the seller charges a commission receives his/her expenses receives nothing
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When the buyer's broker is notified, that the offer has been accepted by the seller Standard contract law states that a contract must be signed and accepted to be binding. A signature alone is not sufficient to constitute valid acceptance: the accepting party must also communicate acceptance to the party who made the last offer or counteroffer. This communication is key. If the listing party signs the contract, sends an email communicating acceptance to the buyer broker and mails the signed contracts. The contract would have been accepted before the signed contract was delivered to the buyer's party. Although receipt of a signed contract is a method of communicating acceptance, it is not the only one. When it is used, acceptance would have typically occured when the buyer's representative, their broker, received the contract, not when the broker returned copies to his/her client.
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When is an offer to purchase, considered accepted? The minute the seller signs the offer When the buyer's broker is notified, that the offer has been accepted by the seller The law is clear - a purchase contract is accepted only when the buyer's agent receives a signed copy of the offer from the seller, or the seller's agent. When the buyer receives copies of the contract from his/her broker
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A mortgage's priority is determined by the date on which it was executed The key word making A the correct answer was the word "executed". A mortgage is "executed" on the date it is signed by both parties. Yet its priority, should the loan go into default, is determined by the date it was "recorded" at the County Clerk's office. Since nobody does closings at the Clerks office, the recording date is almost always after the date upon which it was signed. Therefore A was the correct answer as the only statement that was wrong.
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Which of the following statements is not correct? A mortgage's priority is determined by the date on which it was executed A mortgage instrument pledges the real estate as security for the loan A deed of trust, is usually conveyed by the trustor to the trustee In Colorado a deed of trust and a promissory note are executed at the same time
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Contact the listing broker and inform her of the problem.
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A broker is working with a buyer. The buyer believes there to be a water leak in the home. What should the broker do? Get an inspection done Immediately order a repair of the plumbing Contact the listing broker and inform her of the problem. Terminate the contract
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no action taken Loan fraud can also result in disbarment by HUD from all Federal programs, large fines and federal prosecution. Virtually all loan programs are affiliated with the Federal government in either the primary or secondary mortgage market, disbarment can mean the end of a career in real estate, lending or related fields. (REM 15-18)
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Loan fraud can have the following results to a real estate licensee except: criminal action filed in criminal court disbarred by HUD from all federal programs end of a career in real estate no action taken
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Regulation Z
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Federal Truth-in-Lending laws are also known as Equal Credit Opportunity Act. Freedom of Information Act. Regulation Z Title VIII
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A certificate of licensing history from the other state's real estate licensing authority A certificate of licensing history that indicates the licensee's current status. Any complaints and disciplinary actions taken against the individual must accompany an application for a real estate license in a new state.
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An applicant for a Colorado real estate license who has been licensed in any other state must file which of the following proofs of that licensure? Photocopy of her license from that state Letter from the last employing broker A certificate of licensing history from the other state's real estate licensing authority A copy from the testing center that they have passed the Colorado exam
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215-230 Days
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How many months of advertising or notice must the owner of agricultural land be given for foreclosure?
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A real estate option is a specially designed contract between two parties (a buyer and a seller). The seller offers the buyer the option to buy a property, for a specified period of time at a fixed price. The buyer purchases the option to buy or not buy the property during the specified time period. For the right of this option, the buyer pays the seller an option premium. If the buyer decides to buy the property (in other words, exercise the real estate option), the seller must sell the property to the buyer according to the terms of the preexisting contract.
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What is a real estate option?
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When the duties performed by that person would not normally require a real estate license The Colorado Real Estate Commission states that a referral fee payment is permissible provided that an unlicensed person not perform duties requiring a license, and that the fee be a reasonable amount according to the circumstances.
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Under what conditions is it permissible for a broker to pay a referral fee to a person who does not possess a Colorado real estate license? Under no conditions When the duties performed by that person would not normally require a real estate license Only if the unlicensed person is in the employ of and under the direct control of the broker The unlicensed person may perform any duty deemed acceptable by the broker and receive a referral fee, if permission is granted by all interested parties, and so stipulated in writing
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Deeds, notes, trust deeds, mortgages Deeds, notes, trust deeds and mortgages need not be retained. Listings, settlement sheets and documents that require the signatures of the parties, must be retained for four years. Things that are recorded need not be retained.
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Colorado Real Estate Commission Rule E-4 and E-5 give direction about retaining the needed contracts after closing a transaction. Which copies are exceptions to the rules? Deeds, notes, trust deeds, mortgages Listing contract by the listing broker only Settlement sheets Any document that requires the signatures of the parties
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Seller Agency b. Broker Cleary advised Seller Samuel as to the counter offer. Only a broker fiduciary relationship such as Buyer or Seller Agency can act as an advocate and coach a client on a transaction. Transaction Brokers have a non-fiduciary working relationship and as such cannot advocate on behalf of a client.
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Broker Bill Butter is working with Buyer Brian Bread and has found a property on which the Buyer wants to place an offer. The property that he likes is owned by Seller Sammy Samuel and listed by Broker Cherry Cleary. The property is located at 2443 E Westgate Ave in Durango, CO. The asking price is $315,000. Buyer Bread offers $299,000 on April 10th and wants all appliances including the washer and dryer included in the sale price, the appliances were excluded in the listing as was the Hot Tub on the patio. The offer is countered by Seller Samuel through and on the recommendation of his agent Broker Cherry Cleary on April 11th at $309,000 and will include all appliances except the washer and dryer. Buyer Bread accepts this counter offer on April 12th and the closing is scheduled for May 25. An inspection is held on April 16th and Buyer Bread wants some roof shingles repaired and the carpet in the master bedroom to be replaced. Seller Samuel agrees to the shingles being repaired, but will only give a $750 credit at closing to the Buyer Bread to replace the carpet; Buyer Bread accepts. Prior to closing, Buyer Bread requests that the seller allow them to start a kitchen remodel prior to closing. Seller Samuel will not allow this and Buyer Bread gets angry and wants out of the contract. What is the brokerage relationship between Seller Samuel and Broker Cleary? Transaction Broker Seller Agency Buyer Agency Cannot determine from scenario
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valid unless voided A voidable contract, unlike a void contract, is a valid contract. At most, one party to the contract is bound. The unbound party may repudiate the contract, at which time the contract is void. An option to purchase is a voidable contract as the holder (buyer) of the option can choose to execute or not execute the agreement whereas the seller of the option is bound to its terms. Another way to look at it is: an agreement which is enforceable by law at the option of one or more parties but not at the option of the other or others is a Voidable Contract.
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A voidable contract could be described as void unless validated illegal unenforceable by either party valid unless voided
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Buywell Realty The minimum is the employing broker's name (the firm, not the person) Chapter 2 - CREC Manual Rule E-8. Advertising "A real estate licensee who performs any act requiring a license, including advertising services or advertising property belonging to another, shall do so in the name of the employing broker;...."
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John Bargas of Buywell Realty wants to place a listing in the phone book. At a minimum he must list: John Bargas, Buywell Realty John Bargas Buywell Realty John Bargas, Buywell Realty, Each Branch Independently Owned and Operated
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only the broker under whom he or she is licensed An agent may represent the broker who employees him; the broker represents the seller.
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A real estate licensee may represent: any owner who employs him or her not more than one owner at one time only the broker under whom he or she is licensed any broker who is dully licensed
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collect deposits from the purchasers Explanation The listing broker on behalf of the brokerage firm is authorized by the seller to collect and hold earnest money as a neutral escrow agent.
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The Exclusive Right-to-Sell listing contract gives the listing broker the right to: sign the purchase agreement for the seller collect deposits from the purchasers assign the listing agreement to another broker all of the above
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An unlicensed assistant may be paid a commission by a licensee, based on the success of the transaction This question asks for FALSE not TRUE
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Which statement is false about unlicensed assistants? An unlicensed assistant may be paid a commission by a licensee, based on the success of the transaction The broker may allow the assistant to chauffeur and show a listed property An assistant does not need a license Unlicensed assistants may prepare a market analysis on behalf of the broker
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125 days For residential properties, the public trustee schedules the sale 110-125 days ( 215-230 days for agricultural) after the initial foreclosure action was recorded. The notice of sale is published in a local newspaper for 5 weeks. The public trustee also mails a copy of the notice to the borrower. The public trustee typically conducts the sale at the courthouse. At the sale, the public trustee reads the written bid submitted by the lender, and any party may bid. If anyone other than the lender is the winning bidder, that person must deliver the bid amount in cash or cashier's check to the public trustee. The winning bidder is given a certificate of purchase.
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The maximum time allowed for the sale of a residential property, through the Public Trustee's office after filing of the notice of election and demand (NED) to foreclose is: 45 days 90 days 125 days 230 days
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False * CP-42 Commission Position on Apartment Building or Complex Management The Commission recognizes that owners of apartment buildings or complexes will engage the services of real estate brokerages or unlicensed, on-site managers, or both. An "owner" includes either a person or an entity recognized under Colorado law. The owner must have a controlling interest in the entity formed by the owner to manage the apartment building or complex. In the instance of an entity, the "owner" may form a separate entity to manage the apartment building or complex. The ownership entity and the entity formed by the owner to manage the apartment building or complex must be under the control of the same person or persons. Pursuant to §12-61-101(2)(b)(XII), C.R.S., a regularly salaried employee of the owner of an apartment building or complex is permitted to perform customary duties for his or her employer without a real estate broker's license. The unlicensed, on-site manager must either report directly to the owner or to the real estate broker, if a real estate broker is engaged to manage the property. The Commission views the following to be customary duties of an unlicensed, on-site manager: 1. Performance of clerical duties, including gathering information about competing projects. 2. Obtain information necessary to qualify perspective tenants for a lease. This includes obtaining and verifying information regarding employment history, credit information, references and personal information as necessary. 3. Provide access to a property available for lease and distribute preprinted, objective information prepared by a broker as long as no negotiating, offering or contracting is involved. 4. Distribute preprinted, objective information at an on-site leasing office that is prepared by an owner or broker, as long as no negotiating, offering or contracting is involved. 5. Quote the rental price established by the owner or the owner's licensed broker. 6. Act as a scrivener to the owner or the broker for purposes of completing predetermined lease terms on preprinted forms as negotiated by the owner or broker. 7. Deliver paperwork to other brokers. 8. Deliver paperwork to landlords and tenants, if such paperwork has already been reviewed by the owner, or a broker or has been prepared in accordance with the supervising broker's instructions. 9. Collect and deposit rents and security deposits in accordance with the owner's lease agreement or the brokerage firm's written office policy. 10. Schedule property maintenance in accordance with the brokerage firm's management agreement or the owner's lease agreement. If the owner has executed a Power of Attorney form or a written delegation of authority that authorizes the unlicensed, on-site manager to sign and execute leases on behalf of the owner, the unlicensed, on-site manager may execute those without possessing a real estate broker's license. Brokers supervising unlicensed, on-site managers with this authority are expected to review the executed documents to ensure compliance with lease terms, management agreements, local, state and federal laws, including the real estate brokerage practice act and Commission rules. Employing brokers need to be especially aware of their supervisory duties under the license law. Supervisory duties apply whether the on-site manager is an employee or independent contractor of the broker or brokerage firm, or if the on-site manager is a regularly salaried employee of the apartment building or complex owner. The employing broker should have a written office policy explaining the duties, responsibilities and limitation on the use of on-site managers. This policy should be periodically reviewed with all employees.
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True/False - According to Commission Position 42 on Apartment Building or Complex Management, an on-site manager performing customary duties is required to have a real estate license. True False
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$291.42 debit to the seller, credit to the buyer $127,538 X .085 = $10,840.73 / 12 = $903.394 / 31 = $29.14 X 10 = $291.42 debit seller, credit buyer. Please note that on assumed loans interest is calculated in a unique way - Loan balance x annual interest rate = total annual interest / 12 x the number of days the seller owned the property in the month of closing.
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If the buyer is assuming an 8.5% loan with a balance of $127,538.00 at a closing on July 11, what is the interest proration? $291.42 debit to the seller, credit to the buyer $297.01 debit to the seller, credit to the buyer $611.98 debit to the seller, credit to the buyer $623.71 debit to the seller, credit to the buyer
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A District Attorney Since the Real Estate Commission only has jurisdiction over people with licenses, someone performing a licensed activity without a license would be a criminal matter prosecuted by the district attorneys. The Real Esatte Commission can work with District Attorneys in the preparation of cases. What the Real Estate Commission can do is: The Real Estate Commission has the power upon its own motion to investigate any licensee's real estate activities. If a written complaint is filed, the office is compelled to investigate. If the complaint against the licensee is of such a serious nature that it may result in disciplinary action against a licensee, a hearing will be held before an administrative law judge. The judge is appointed by the Department of Personnel and Administration. The administrative law judge will make an initial decision of revocation, suspension, censure, or dismissal. Education courses, probation, and fines can also be mandated. If written objections are not filed with the Commission within 30 days, the initial decision becomes final. If written objections are filed, the Commission may adopt the findings and initial decision of the administrative law judge, modify the disciplinary action, or refer the matter back for rehearing. The Commission can also issue letters of admonishment in instances where conduct does not warrant formal disciplinary proceedings.
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Who has the responsibility for prosecuting the practice of real estate without a license? A District Attorney The Colorado Real Estate Commission A Police Detective IRS
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Explanation The amount due from the buyer appears on a closing statement as a credit to the buyer. This is a receipt for the money that the buyer has already paid. Remember that the closing is over!
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The amount due from the buyer appears on a closing statement as a: Credit to the broker Credit to the seller Credit to the buyer Debit to the buyer Explanation The amount due from the buyer appears on a closing statement as a credit to the buyer. This is a receipt for the money that the buyer has already paid. Remember that the closing is over!
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Doctrine of prior appropriation Water rights in Colorado are based upon the doctrine of prior appropriation, unless sold the individual who had the first rights to that water retains those rights.
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Colorado water rights are based on the: Doctrine of adjudication Principle of beneficial use Common law Doctrine of prior appropriation
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Condemnation Condemnation can convert water from agricultural to domestic use.
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Water rights may be converted from agricultural to domestic use by the process of: Severance Condemnation Suit for partition City Council Resolution
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a kitchen sink Explanation Everything but the kitchen sink which is considered real property. Personal property, roughly speaking, is private property that is moveable as opposed to real property or real estate. Personal property may also be called chattels or personalty.
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You answered this question correctly All of the following would be considered chattels except: velvet drapes a portable dishwasher a kitchen sink patio furniture
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the aggrieved person Explanation An aggrieved person may file a discrimination suit in federal court. If a complaint was first filed with HUD, the federal court generally waits to hear the results of the hearing held by the HUD Office of Equal Opportunity
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A discrimination suit may be filed in federal court by: the aggrieved person HUD Department of Registration and Education both the aggrieved person and HUD
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you do not discriminate in advertising Explanation A seller should not discriminate for any reason but may, so long as the seller does not use a real estate broker, doesn't discriminate in advertising and no more than one dwelling in which the owner was not the most recent resident is sold during any two year period.
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Discrimination when selling your principal residence is legal when: you are a real estate broker you are a member of a protected group you are the owner of no more than four such houses at any one time you do not discriminate in advertising
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The fee simple absolute is the greatest estate that can exist in land, the highest and most complete form of ownership. It is of potentially infinite duration and represents the whole "bundle of rights."
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Fee Simple Absolute
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A fee simple estate may be qualified when it is transferred from one owner to another. For example, in a deed, the grantor may specify that the grantee's estate will continue only as long as a certain condition is met, or until a certain event occurs.
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Fee Simple Defeasible
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An estate for life is a freehold estate whose duration is limited to the lifetime of a specified person or persons.
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Life Estates
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leasehold estates. owner is a tenant
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Less-than-freehold estates
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During the term of the lease, the landlord's interest may be referred to as a leased fee
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leased fee
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is the property a spouse owned before the marriage, together with any property he or she acquires during the marriage by inheritance, will, gift, or purchase with separate funds
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separate property
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All other property the husband or wife acquires during the marriage
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community property
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In most states that do not have a community property system, married couples may hold title to property as tenants by the entirety. A tenancy by the entirety (sometimes called tenancy by the entireties) involves the right of survivorship and is quite similar to a joint tenancy, but there are some differences. For one thing, a tenancy by the entirety can only be created by a married couple. Also, a tenant by the entirety cannot convey his interest without the consent of the other tenant (the spouse).
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Tenancy by the Entirety
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Shares in a corporation. A security is an ownership interest that represents only an investment in an enterprise, without managerial control over it. Securities are regulated by the federal government through the Securities and Exchange Commission (SEC), and also by some state governments
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securities
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A real estate investment trust (REIT) is an entity created by investors to finance large real estate projects. The Internal Revenue Code offers tax benefits to real estate investors who organize their business as an REIT. An REIT must have at least 100 investors and at least 75% of its investment assets must be in real estate. Shares in an REIT are securities, subject to federal regulation.
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Real Estate Investment Trusts
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are aspects of the condominium property that all of the unit owners have the right to use, such as the driveway, lobby, courtyard, or elevator. The land itself, the roof, and any recreational facilities such as a swimming pool are also considered common elements.
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Common elements
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are reserved for the owners of certain units. For example, an assigned parking space would be a limited common element. A feature such as a balcony, which is designed for use with a particular unit but is outside of the unit itself, would also be a limited common element.
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limited common elements
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A townhouse development consists of multi-story, single-family homes built on small parcels of land. Townhouses may or may not share walls with neighboring units, and the developments sometimes have owners associations similar to those in condominium developments.
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Townhouses
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The process of transferring ownership of (title to) real property from one party to another is called alienation
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alienation
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This type of deed gives the greatest protection to the grantee.
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General Warranty Deed
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are guarantees against title defects. If the covenants are breached, the grantee has a right to sue the grantor for financial compensation.
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covenants
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means possession of property under a claim of ownership. The covenant of seisin is a promise that the grantor actually owns the property interest that's being transferred to the grantee.
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covenant of seisincov
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is a promise that the grantor has the power (the legal capacity) to make the conveyance. Note that this covenant is fulfilled if the person executing the deed is an agent of the owner and has the authority to transfer the interest in question. (The right to convey is sometimes considered part of the covenant of seisin, rather than a separate covenant.)
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covenant of right to convey
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Warrants that the property is not burdened by any undisclosed easements, mortgages, liens, or other rights of third parties. If there are encumbrances, they must be disclosed in the deed.
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covenant against encumbrances
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guarantee that the grantee will be able to possess the property in peace, undisturbed by any lawful claim made by a third party.
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covenant of quiet enjoyment
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warrants that the grantor will provide the grantee with any additional instruments (legal documents) that are needed, or take any other steps required, to make the grantee's title good.
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covenant of further assurance
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This is a promise that the grantor will defend the grantee's title against any claims superior to the grantee's that existed when the conveyance was made.
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covenant of warranty forever
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A special (or limited) warranty deed contains the same covenants found in a general warranty deed, but the scope of the covenants is limited to defects that arose during the grantor's tenure
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Special Warranty Deed.
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In a few states, grant deeds are used instead of warranty deeds. A grant deed generally includes the term "grant" in its words of conveyance and carries two warranties: 1. the grantor has not previously conveyed title to anyone else, and 2. the grantor has not caused any encumbrances to attach to the property other than those already disclosed.
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Grant Deed.
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Unlike the types of deeds we've discussed so far, a bargain and sale deed offers the grantee no warranties or covenants.
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Bargain and Sale Deed.
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A quitclaim deed contains no warranties of any sort, and it will not convey after-acquired title. In fact, unlike a bargain and sale deed, a quitclaim deed does not even imply that the grantor owns the property
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Quitclaim Deed
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be in writing, identify the parties, have a legally competent grantor, have a living grantee, be signed by the grantor, include an adequate description of the property, recite the consideration exchanged, contain words of conveyance (the granting clause), define the interest conveyed (the habendum clause), and state any exclusions or reservations.
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Requirements for a Valid Deed
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person who makes will/person who dies with a will.
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testator/testate
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When a private owner donates real property to the public, it is called dedication. While dedication may be voluntary (for example, a philanthropist might deed land to the city for a park, as a gift), most often it is required in exchange for a benefit from a public entity.
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Dedication
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If a person dies intestate and the probate court is unable to locate any heirs, then the intestate person's property escheats. That means title to the property passes to the state or county government
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Escheat
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If a property owner feels that her property has been taken or damaged by a public entity, she may file a lawsuit called an inverse condemnation action to force the government to pay the fair market value of the property.
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Inverse Condemnation
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A quiet title action is used to remove a cloud on the title when the title cannot be cleared by the more peaceful means of an agreement and a quitclaim deed. In a quiet title action, the court decides questions of property ownership
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Quiet Title.
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A suit for partition is a means of dividing property held by more than one person when the co-owners cannot agree on how to divide it. For example, joint tenants may wish to end their joint tenancy but be unable to decide among themselves who gets what portion of the property. The court divides the property for them, and the owners are then bound by the court's decision
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Suit for Partition
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another form of involuntary alienation, is the process by which the possession and use of property can mature into title. The law of adverse possession encourages the fullest and most productive use of land. Also called title by prescription, it provides that someone who actually uses property may eventually attain a greater interest in that property than the owner who does not use it.
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Adverse possession
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1. actual, 2. open and notorious, 3. hostile to the owner's interest, 4. exclusive, and 5. continuous and uninterrupted for a specific period of time. (18 years in co)
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adverse possession requirements
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when the adverse possessor has a good faith but mistaken belief that he's the true owner of the property, based on an invalid deed (or some other defective instrument).
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color of title
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Since the adverse possessor's interest is not recorded, he must take additional steps to acquire marketable title. Unless the true owner is willing to provide a quitclaim deed, the adverse possessor must file a quiet title action.
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Perfecting Title
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An easement appurtenant burdens one parcel of land for the benefit of another parcel of land. The parcel with the benefit is called the dominant tenement; the one with the burden is called the servient tenement.
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Easements Appurtenant
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An easement in gross benefits a person (a dominant tenant) rather than a parcel of land.
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Easements in Gross.
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Most subdivision developers impose a list of restrictions on all lots within the subdivision before they begin selling individual lots. This is called a declaration of restrictions or CC&Rs (covenants, conditions, and restrictions). The CC&Rs might include rules limiting all of the lots to single- family residential use, requiring property maintenance, and preventing activities that would bother the neighbors
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declaration of restrictions or CC&Rs (covenants, conditions, and restrictions)
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can arise when an area is zoned for the first time, or when a zoning ordinance is amended. Certain established uses that were previously lawful may not conform to the rules laid down in the new ordinance. These nonconforming uses will be permitted to continue. Example: Smith has been lawfully operating a bakery for seven months when his property is rezoned for single-family residential use. Smith's bakery will be allowed to continue as a nonconforming use. He is not required to apply for a permit.
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nonconforming use
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if a zoning law were strictly enforced, the property owner's injury would far outweigh the benefit of enforcing the zoning requirement. Under these circumstances, a variance may be available. A variance is authorization to build or maintain a structure or use that is prohibited by the zoning ordinance.
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Variances
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Various special uses, such as schools, hospitals, and churches, don't fit into the ordinary zoning categories. These uses are necessary to the community, yet they may have adverse effects on neighboring properties. In most communities, the zoning authority can issue conditional use permits (also called special exception permits), allowing a limited number of these uses to operate in compliance with specified conditions.
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Conditional Uses.
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(commonly referred to as ILSA) is a federal consumer protection law concerning subdivisions offered for sale or lease in interstate commerce. For example, when a subdivision in a particular state is advertised in a national magazine, the developer may have to comply with ILSA. The interstate commerce element also generally exists when a loan is involved, since loan funds typically come from sources crossing state lines. ILSA generally applies to subdivisions containing 25 or more vacant lots, although numerous exemptions apply. Under ILSA, developers of subdivisions with 25 or more vacant lots must disclose information to buyers in the form of a property report. The required disclosures include information regarding title to the property, payment and conveyance terms, proximity to schools and recreational areas, availability of utilities, soil conditions, easements or restrictive covenants, and so on. The property report must be given to a prospective buyer before a purchase agreement is signed. Once the report is received, the buyer has a seven-day right of rescission. During this "cooling-off period," the buyer is entitled to cancel the sales contract for any reason and have any deposit returned to her.
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ILSA. The Interstate Land Sales Full Disclosure Act
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NEPA is a federal law that requires federal agencies to prepare an environmental impact statement (EIS) for governmental actions that would have a significant impact. NEPA also applies to private uses or developments that require the approval of a federal agency.
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National Environmental Policy Act (NEPA)
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An EIS summarizes a proposed project's background information and its probable environmental effects (both positive and negative), along with a list of alternatives to the proposed project. The EIS is typically used by a planning or zoning commission to help assess the potential environmental effects of a project.
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environmental impact statement
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a federal law, concerns liability for environmental cleanup costs. In some cases, the current owners of contaminated property may be required to pay for cleanup, even if they did not cause the contamination.
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CERCLA. The Comprehensive Environmental Response, Compensation, and Liability Act,
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Liens Explanation Liens are not laws or regulations of a government or quasi government agency. liens are related to debts. Some liens can be related to government regulations, such as a tax lien.
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Which one of the following is not a police power? Building codes Zoning Liens Subdivision regulations
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By deed or will Explanation Either of these can create a joint tenancy as long as the ownership is equal and that there is a right of survivorship
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oint tenancy is created by: Marriage By deed only By deed or will By presumption if the method of ownership is not stipulated
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no interest in the property Explanation The widow would have no interest in the property since the two brothers were joint tenants, the surviving brother would now own the property in severalty.
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Two brothers, John and Bill, owned valuable property left to them by their father, as joint tenants. Both married later, and then Bill died intestate. His widow would acquire: no interest in the property half interest as joint tenant with John half interest as tenant in common one-quarter interest in the property
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Mr. Bones' interest was terminated upon Mr. Ackerman's demise Explanation This question illustrates the rare situation where a lease may be terminated by death. The lessor can only lease the property for the term of his life. Upon the lessor's death, he no longer has an interest in the property and the lessee's interest also ceases.
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Mr. Ackerman leased a property for five years to Mr. Bones. During this term, Mr. Ackerman died and then Mr. Bones discovered that Mr. Ackerman's interest was a life estate. The owner of the property was correct in advocating which of the following? Mr. Bones' leasehold estate is valid for the length of the lease Mr. Bones' interest was terminated upon Mr. Ackerman's demise Mr. Ackerman's heir would receive the fee title The owner has an estate in remainder
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easement in gross. A utility company has an easement in gross to service its equipment. A government authority or private service provider may acquire a gross easement over private land by virtue of the public service it performs. For example, a local authority may have the responsibility of installing and maintaining the sewerage system in an urban area. Merely by the fact that it has that responsibility, usually enshrined in some statute or local laws, gives the authority the right, by virtue of a gross easement, to enter private property to carry out installation and maintenance. The location of the easement will not usually be described precisely, but its general position will be defined by the service route (i.e. the sewer pipes in this example). Power and water lines may also have gross easements linked to them, but drainage and stormwater systems are commonly precisely defined in location and recorded in the title documents for private land.
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A utility company has an easement to service its equipment. This is an example of easement in gross. encroachment. police power. easement by prescription.
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The selling price is 115% of what the seller paid for it. To find out what the seller paid for it divide $197,800 by 115% = $172,000
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You have listed a house for $197,800. If the house sells for the listed price, the seller will make a profit of 15%. What price did the seller pay for the house?
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Real estate taxes Real estate property tax liens automatically attach to the property as of January 1 of the current year. All other liens do not attach to the property automatically.
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Which of the following is a lien that does not need to be recorded? Money judgments A tax deed Real estate taxes Voluntary lien
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Personal property becomes a fixture through annexation, which is the act of adding something on to real property. There are two types of annexation: physical and constructive. An item is physically annexed to real property when it has been affixed to, embedded in, or otherwise permanently attached to the land or improvements. An item is constructively annexed to real property if it is a necessary or working part of the realty.
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Annexation
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one mill equals one-tenth of one cent, that is, $0.001. Ten mills equals one cent, 50 mills equals 5 cents, and 100 mills equals 10 cents. Formula Mill Rate*.001*assessed value Tax rates are also expressed in dollars per hundred or dollars per thousand. For example, a tax rate of 50 mills is the same as a rate of $5 per $100 of assessed value, or $50 per $1,000 of assessed value. Tax rates are applied to each property based on its assessed value. So if the tax rate is 50 mills and the property is assessed at $100,000, the property tax will be $5,000 (.05 × $100,000 = $5,000)
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Mill Rate
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In a majority of states, a tax is levied on every sale of real property, unless the property is exempt. This may be called a conveyance tax, transfer tax, deed tax, or excise tax.
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Conveyance Taxes
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24mix24mi - 576 sq mi - 16 townships
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1 Tract
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6mix6mi - 36 sq mi - 36 sections
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1 Township
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1 sq mi - 640 acres
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1 Section
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43560 sq ft
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1 Acre
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is the original north/south line established in the government survey descriptions grid. 35 principal meridians
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Principal Meridian
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is the original east/west line. 32 baselines
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Base Line
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east/west lines within principal meridian and baseline grid. divide into township tiers.
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township lines
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north/south lines within principal meridian and baseline grid divine into range rows
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range lines
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The area of land that is located at the intersection of a range and a township tier is called a township, and it is identified by its position relative to the principal meridian and base line. For example, the township that is located in the fourth tier north of the base line and the third range east of the principal meridian is called "Township 4 North, Range 3 East." (See Figure 2.7.) This may be abbreviated "T4N, R3E.
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township
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Partial sections that have an irregular shape or aren't the standard size are called government lots. Each government lot is assigned a lot number and referred to by that number.
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Government Lots.
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A position above or below ground is described by reference to a datum, which is an established plane of elevation. Mean sea level is commonly used as a datum, although most large cities have an official datum of their own.
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datum
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extend north and south Explanation Range strips run north and south, township tiers run east and west.
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Ranges of land are strips of land six miles wide that: run east and west are protected in the Range Land Act extend north and south run around the perimeter of the property
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Two miles squared Explanation Remember always to compare apples to apples. Connect everything to square miles: 10% of a township is 3.6 square miles, 3 sections is three square miles, two miles squared is four square miles, 5280 ft by 5280 is one square mile. By converting everything to square miles let's look at each answer: 10% 0f a township a township is 6 miles by 6 miles or 36 square miles and 10% of that would be 3.6 square miles Each section is 1 Square mile therefore 3 sections would be 3 square miles. Two mile squared is 2 times or 4 square miles. And 5280 feet times 5280 feet is 1 square mile Therefore the largest area would be C or 2 miles squared.
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Which of the following is the largest area? 10% of a township Three sections Two miles squared 5,280 feet by 5,280 feet
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Having a document recorded has two extremely important legal consequences. It provides notice of the interest conveyed in the document, and it establishes the priority of that interest.
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The Legal Effects of Recording
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Actual notice is straightforward. A person has actual notice of a fact if he actually knows about it. He personally observed it, read about it, or was told about it. By contrast, a person has constructive notice of a fact if, in the eyes of the law, she should have known about it, whether or not she actually did.
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Actual vs Constructive Notice
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"first to record, first in right."
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Priority
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Because of the complexity of most closings, it may be difficult to reschedule the meeting if one of the necessary documents is unavailable. Instead, the parties may agree to a dry closing. In a dry closing, the parties sign the documents and turn them over to the person conducting the closing. However, the money and the deed to the property are not delivered to their intended recipients until after the missing document arrives safely.
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Dry Closings
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The Internal Revenue Service generally requires a closing agent to report real property sales on Form 1099-S. The form is used to report the seller's name and social security number and the gross proceeds from the sale. However, the form doesn't have to be filed for the sale of a principal residence if: 1) the seller certifies in writing that none of the gain is taxable; and 2) the sale is for $250,000 or less ($500,000 or less if the seller is married). Certain other types of transactions are also exempt from the requirement.
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Form 1099-S Reporting
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The IRS requires an escrow agent who receives more than $10,000 in cash to report the cash payment on Form 8300. This rule applies whether the cash was received in a single transaction or in a series of related transactions. Example: ABC Escrow is handling the closing for buyer Sam. As part of the process, Sam will bring $12,000 cash to closing. He gives ABC Escrow $8,000 on Thursday, and the remaining $4,000 on Friday. Although the individual amounts are less than $10,000, ABC Escrow will need to submit Form 8300 to IRS because the transactions are related. The escrow agent must file Form 8300 within 15 days of receiving the cash. A copy of the form should be kept on file for five years.
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Form 8300 Reporting
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Foreign Investment in Real Property Tax Act (FIRPTA) was passed in 1980 to help prevent foreign investors from evading their tax liability on income generated from the sale of real estate. FIRPTA requires a property buyer to determine whether the seller is a "foreign person," defined as someone who is not a U.S. citizen or resident alien. If the seller is a foreign person, then the buyer must withhold 10% of the amount realized from the sale and forward those funds to the IRS. (In most cases, the amount realized is simply the sales price.) Payment must be made within 20 days after the date the property was transferred
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FIRPTA
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RESPA has two main goals: to provide borrowers with information about their closing costs in order to help them become better shoppers for settlement services; and to eliminate kickbacks and referral fees that unnecessarily increase the costs of settlement.
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Real Estate Settlement Procedures Act
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a loan used to purchase 25 acres or more; a loan primarily for a business, commercial, or agricultural purpose; a loan used to purchase vacant land, unless there will be a one- to four-unit dwelling built on it or a mobile home placed on it; temporary financing, such as a construction loan; or an assumption for which the lender's approval is neither required nor obtained. Note that RESPA also does not apply to seller-financed transactions, since they are not federally regulated.
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RESPA Exclusions
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1. Within 3 days after loan app, lender must give borrower a good faith estimate of closing costs, booklet about settlement procedures, mortgage service settlement disclosure 2. If lender requires use of specific appraisal company, title company, or service provider, lender must disclose when app signed. 3. If a settlement service provider points a borrower towards an affiliated business, they must disclose relationship. 4. Closing statement must itemize costs on a uniform settlement statement 5. No more than 3 month reserve funds in escrow. 6. No kickbacks, referral fees amongst settlement service providers or unearned fee's received. No charging for production of uniform settlement statement. 7. Seller may not require buyer to use a specific title company.
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RESPA Requirements
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Eastern
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The Torrens System is most commonly used in which part of Colorado? Northern Southern Eastern Western
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it is the responsibility of the title company to provide the buyer and seller with copies of the closing statement Explanation The broker is always responsible for the accuracy of the figures that the title company prepares.
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When a broker turns over funds to a title company and has the closing statement prepared by the title company: the broker is not responsible for the accuracy of the figures on the statement it is the responsibility of the title company to provide the buyer and seller with copies of the closing statement the title company may charge no more than $75.00 to prepare the uniform settlement statement the responsibility for the accuracy of the figures is the title company
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33 feet This is a hard one. A section is 1 mile by 1 mile. This means one edge of a section is 5280 feet (1 mile) long. Four acres (43,560 sq ft x 4 acres) contains a total of 174,240 sq. ft. 174,240 divided by 5280 equals 33. The dimension of this 4 acre easement is 5280 feet long by 33 feet wide.
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A section is 1 mile by 1 mile. How wide is a four-acre (a hint: one acre contains 43,560 sq ft) easement that runs along the western edge of a section? 33 feet 38 feet 45 feet 28 feet Explanation This is a hard one. A section is 1 mile by 1 mile. This means one edge of a section is 5280 feet (1 mile) long. Four acres (43,560 sq ft x 4 acres) contains a total of 174,240 sq. ft. 174,240 divided by 5280 equals 33. The dimension of this 4 acre easement is 5280 feet long by 33 feet wide.
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Change
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"No physical or economic condition remains constant" refers to which of the following basic principles of value? Competition Anticipation Change Contribution
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Its relative scarcity and the demand for it
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What would you say is the real basis for value of the average property; i.e. the economic characteristic of value? Opportunity for a profit if purchased Its relative scarcity and the demand for it How it is zoned Replacement cost
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estimating value
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An appraiser's work entails: finding value determining value computing value estimating value
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produces the greatest property value
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The highest and best use is the use that: contributes to the best interest of the community complies with zoning and deed restrictions produces the highest gross income produces the greatest property value
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original cost
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When determining the value of a property using the Sales Comparison Approach (also known as the Market Data Approach) the appraiser looks for similar properties that have been sold to use in comparison. Which of the following factors is NOT important to an appraiser in selecting and analyzing comparable properties using this approach: dates of sale financing terms appearance and condition original cost
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Principal of Progression
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When a house that is in poor condition is located within a neighborhood where all the other properties are well kept up, on this property this is an example of: Principal of Regression Principal of Progression Principal of Conformity Principal of Succession
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are considered material facts and must be disclosed
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Adverse financial conditions of the buyer: need not be disclosed are considered material facts and must be disclosed are a concern only to the lender are difficult to prove and considered "hearsay"
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All of the above Explanation Remember this is an offer not a contract until accepted by the seller
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Termination of an offer can occur by: A counteroffer by the seller The death of the offeror Withdrawal by the purchaser All of the above
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all of the above Explanation All are examples of a fiduciary; someone put in trust of others affairs. A fiduciary relationship is created when a principal signs a listing or buyer's agency agreement with a Listing Agent or Buyers Agent. Note: a Transaction Broker as a neutral party is not a fiduciary relationship (the T broker owes no loyalty, only Care, Obedience, Accounting and Disclosure of non-confidential items and material facts). In real estate transactions, only the Sellers or Buyer's agency relationships are fiduciary relationships. This relationship implies a position of trust or confidence, wherein one person is usually entrusted to hold or manage property or money for another. In a fiduciary relationship, one person, in a position of vulnerability, justifiably vests confidence, good faith, reliance and trust in another whose aid, advice or protection is sought in some matter. In such a relation good conscience requires the fiduciary to act at all times for the sole benefit and interest of the one who trusts.
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A fiduciary is: a trustee named in a will a real estate broker who acts as an agent for another a person who holds a general power of attorney for another all of the above Explanation All are examples of a fiduciary; someone put in trust of others affairs. A fiduciary relationship is created when a principal signs a listing or buyer's agency agreement with a Listing Agent or Buyers Agent. Note: a Transaction Broker as a neutral party is not a fiduciary relationship (the T broker owes no loyalty, only Care, Obedience, Accounting and Disclosure of non-confidential items and material facts). In real estate transactions, only the Sellers or Buyer's agency relationships are fiduciary relationships. This relationship implies a position of trust or confidence, wherein one person is usually entrusted to hold or manage property or money for another. In a fiduciary relationship, one person, in a position of vulnerability, justifiably vests confidence, good faith, reliance and trust in another whose aid, advice or protection is sought in some matter. In such a relation good conscience requires the fiduciary to act at all times for the sole benefit and interest of the one who trusts.
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No, because this is prohibited under the 1866 Civil Rights Act.
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A non-licensed owner wishes to sell his home without the use of a real estate broker. He has not sold any other real property in the last ten years. He wishes to limit certain races from buying in his neighborhood. May he discriminate under these circumstances? No, because this is prohibited under the 1866 Civil Rights Act. No, because this is prohibited under local municipal law Yes, because discrimination under the fair housing laws applies only to real estate brokers. Yes, because this is an exception under the 1968 Civil Rights Act.
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It varies according to the veteran's eligibility Explanation VA home loans require an upfront, one-time payment called the VA funding fee. The fee is a percentage based on the loan amount. VA-eligible borrowers can wrap this cost into the loan, reducing out-of-pocket expenses onVA home loans to buy or refinance a home. VA fees vary according to the Veterans eligibilty ( 1.5% to 3 %) and amount of the down payment.
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Which of the following statements are true regarding a VA funding fee? It varies according to the veteran's eligibility The seller must pay it It is the same thing as the FHA origination fee It is a percentage of the purchase price Explanation VA home loans require an upfront, one-time payment called the VA funding fee. The fee is a percentage based on the loan amount. VA-eligible borrowers can wrap this cost into the loan, reducing out-of-pocket expenses onVA home loans to buy or refinance a home. VA fees vary according to the Veterans eligibilty ( 1.5% to 3 %) and amount of the down payment.
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insure housing loans. Explanation The FHA insures loans the VA guarantees loans.
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FHA has developed several loan programs designed to insure housing loans. provide funding for housing loans. guarantee housing loans. buy and sell housing loans.
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does not limit the interest that can be charged, only requires total disclosure Definition of 'Regulation Z' from Investopia A specific Federal Reserve Board regulation that requires debt lenders to disclose all the specifics of a given loan. This was done to promote a level of credit protection for the underlying consumer. Most of the requirements imposed by the 1968 Truth in Lending Act are contained within Regulation Z, and the two terms are often used interchangeably. Investopedia explains 'Regulation Z' One of the end results of this regulation is how a lender has to disclose how much interest will be charged on the loan. For example, for both credit card and mortgage loans, the respective lender (credit card issuer or the mortgage issuing bank) must clearly say just how much interest will be incurred by the loan in terms of an annual percentage rate. So, a lender would not be allowed to quote a low interest rate and then state in the fine print that the interest rate is expressed in per week terms, instead of the common expression of per annum.
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Regulation Z also known as the Truth in Lending Act: limits the amount of interest that can be charged on a promissory note requires sellers under an installment land contract to make appropriate disclosures prohibits the sales price of a property from being advertised does not limit the interest that can be charged, only requires total disclosure
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replenishing funds of mortgage originators by purchasing their existing mortgage loans
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Freddie Mac, Fannie Mae, and Ginnie Mae have in common the purpose of: replenishing funds of mortgage originators by purchasing their existing mortgage loans originating residential mortgage loans Freddie Mac and Fannie Mae replenish funds while Ginnie Mae originates loans they are all government agencies
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9975 Explanation $48,500 X .65 (amount of loan) = $31,525.00. $48,500 - $31,525.00 (amount of loan) = $16,975 - $7,000.00 (earnest money) = $9,975.00
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A buyer paid $7,000 in earnest money and acquired a mortgage of 65% of the $48,500 sales price. How much cash did the buyer have to bring to closing? 9975 16975 24525 41500
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291.66 Explanation $250,000 X .35 = $87,500 X .04 = $3500 / 12 = $291.66
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The assessed value is 35% of a property valued at $250,000. The mill rate is 40. What are the monthly taxes on the property? 3500 933.32 4721.28 291.66
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a trust deed may be foreclosed without court intervention Explanation By not having to go through the courts to foreclose, a trust deed provides a faster and less expensive foreclosure process. In Colorado, to avoid having to use the courts, the Public Trustee must be named trustee in the Deed of Trust.
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Regarding trust deeds and mortgages: a trust deed must be foreclosed without court intervention a mortgage is never foreclosed through court intervention a trust deed may be foreclosed without court intervention a mortgage may be foreclosed without court intervention
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Deed of Trust The power of sale clause, found in a trust deed, authorizes a trustee to sell the secured property at public auction in the event of default by the borrower (trustor).
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A power of sale clause is found in which of the following financing instruments? Promissory note Notice of default Mortgage note Deed of trust
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trustee With a Deed of Trust, an impartial 3rd party, the Public Trustee, holds "naked title" (title without possession) to the property. The owner of the property who morgaged the property (a voluntary lein) to secure the loan is called the "Trustor" . The lender to whose benefit the lein was placed on the property to secure the loan is called the "Beneficiary".
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When using a deed of trust in a real estate loan, title to the property is held by the seller. lender. trustor. trustee.
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Trustee Explanation The party holding the trust deed, (the trustee), signs the deed of reconveyance.
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Who would sign a deed of reconveyance? Trustor Trustee Beneficiary Lender
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Any foreclosure will be handled in the appropriate court. Explanation A deed of trust set up with a private trustee must be foreclosed through the court like a mortgage, whereas a deed of trust using the public trustee would be foreclosed through the public trustee's administrative process.
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A deed of trust may be used to provide security for a real estate loan in Colorado. Which of the following is correct if the deed of trust is set up with a private trustee? Any foreclosure will be handled by the public trustee. Any foreclosure will be handled in the appropriate court. The private trustee will hold legal title to the property and be shown on the deed. Any foreclosure will be handled by the private trustee.
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signs the note and gives the mortgage Explanation The borrower is the mortgagor; the lender is the mortgagee.
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Under a mortgage, the mortgagor is the party who: lends the money receives the payments on the note holds the mortgage signs the note and gives the mortgage
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Judicial Explanation Since it is a private trustee it must be done through a judicial process, were it held by the public trustee than it could be conducted by the county trustee
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A trust deed is held by a private trustee in Colorado, the foreclosure must be: Strict foreclosure Judicial Conducted by the state public trustee Conducted by the county public trustee
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signs the note Explanation The trustor is the borrower under a deed of trust.
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The trustor in connection with a trust deed is the party who: lends the money receives the payments signs the note holds the deed of trust
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The note provides evidence of the debt Explanation A promissory note provides evidence of a debt. A mortgage or deed of trust pledges property as collateral in conjunction with a promissory note.
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Which of the following statements regarding a promissory note is (are) true? The note pledges specific property as a security for a debt The note provides evidence of the debt The note is a promise from the vendor to the vendee The note is s a promise from the trustee to the trustor
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a writ of execution A writ of execution is a court order authorizing the sale of a property whose proceeds will be used to satisfy a creditor who has won a court judgement. Don't confuse this with writ of attachment, which is an action taken by a creditor in which the court simply retains custody of the property while a lawsuit is being decided.
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A court order that authorizes and directs the proper officer of the court to sell the property of a defendant as required by the judgment or decree of the court is known as: a writ of attachment a writ of execution constructive eviction actual eviction
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Real estate broker's license
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What license is required to deal in real estate options? Option license None needed Dealer's license Real estate broker's license
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Yes
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Does the Real Estate Commission provide office address and contact information for licensees to the public? Yes No
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not cooperating with a broker in the MLS
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The Colorado Real Estate Commission can investigate a licensee in all cases except: improper supervision by a managing broker not cooperating with a broker in the MLS when a valid complaint is received
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scarcity, location, and durability.
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The economic characteristics of land are
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A license.
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A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want to make the permission permanent in case he dislikes others who might move next door in the future. What should he give his neighbor?
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250,000
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An appraiser MUST be licensed or certified to handle Federally related work on residential property valued at more than
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the seller accepts the offer.
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A broker has brought a ready, willing, and able buyer to a seller. In MOST listing contracts, the broker has earned his commission when
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a subagent of the seller.
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A broker lists a property, with a listing contract allowing subagency and dual agency. One of the broker's salespersons shows the property. The salesperson would be classified as
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an agent to the broker and a subagent to the principal.
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A salesperson lists a property with a contract that allows for subagency and dual agency. The salesperson is
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the number of square feet in the building.
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The real estate broker who is listing a house for sale should personally verify
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Credit buyer $110,000; debit seller $110,000
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The buyer is assuming a mortgage presently on the property in the amount of $110,000. What is the adjustment made at closing?
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Mortgage loan interest, local property taxes, mortgage loan origination fees.
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For Federal income tax purposes, which of the following are costs of homeownership that may be deducted from gross income?
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statute of descent
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When someone has living heirs but dies without leaving a will, the estate is distributed according to the
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there is no dollar limit on damages paid
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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
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prepayment penalties and rebates.
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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
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264.
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The sellers have agreed to give the buyers an allowance of $16.95 per square yard to retile the kitchen. If the kitchen is 10 feet x 14 feet, how much will it cost the sellers (to the nearest dollar)?
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Condo tends to be more affordable
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A major reason for buying and owning a condominium rather than a detached single-family home is that
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The Department of Housing and Urban Development.
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A property management plan may serve different purposes for different owners, and generally has to strike a balance between preservation of the property's value and generation of income. Which of the following owners would MOST likely prefer a property manager who emphasizes maintenance of value over profitability?
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an interest that is classified as personal property.
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Ownership of common stock in a corporation gives
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The principal is liable only for acts of the agents that the principal has approved, directed or ratified. vicarious liability. a principal's liability for an agent's acts performed within the scope of the agency; specifically excluded by Colorado statute from a principal's liability unless the act or omission was approved, directed or ratified.
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Under "vicarious liability" in Colorado: The principal is liable only for acts of the agents that the principal has approved, directed or ratified. The principal is liable for any acts performed by their agent as long as the acts are within the scope of the agency. The licensee is solely responsible for his/her own actions. The licensee is liable for the acts of the seller that the licensee has approved, directed or ratified.
Civil Law
Employer Employee Relationship
Fair Housing Act
Fair Market Value
Hire And Fire
Marketing-Real Estate
Real Estate Finance Fundamentals
Terms And Conditions
Oregon Real Estate License Study – Flashcards 269 terms

Ken Ericksen
269 terms
Preview
Oregon Real Estate License Study – Flashcards
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Owner Reports
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A property manager is obligated to give an accounting of an owner's property. The reports are usually given per month and an annual report.
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Reconciliation
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A balance and reconciliation of the company's receipt and disbursement journal, company bank statement and each owner's ledger.
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A late rent payment fee can be charged if ?
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if the rental agreement includes the specifics of a late fee. (sect 6/ch3)
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Essential services include ?
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Heat, water, locking doors, electricity. (sect 6/ch3)
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A tenant is obligated to do the following:
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Use the premises as designed and intended. (sect 6/ch3)
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A landlord may retaliate against a tenant by ?
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A landlord may not retaliate against a tenant (sect 6/ch3)
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Under occupancy guidelines, a bedroom should contain at least how many square feet?
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70 (sect 6/ch3)
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If the tenant, in violation of the rental agreement, keeps on the premises a pet capable of causing damage to persons or property, the landlord may deliver a written notice specifying the violation and stating that the tenancy will terminate upon a date not less than how many days after the delivery of the notice unless the tenant removes the pet from the premises prior to the termination date specified in the notice?
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10 days (sect 6/ch3)
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In most kinds of housing, a property manager with a tenant having a month-to-month tenancy may also attempt to evict a tenant with a 72-hour notice for not paying their rent. This may happen if a tenant has not paid rent within 7 days of its due date. If rent is due on the first of the month, a property manager may give a 72-hour notice on the what day of the month?
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8th day . (sect 6/ch3)
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Notices may be served by either personal delivery or by mail. Unless a lease or other agreement specifies otherwise, mail delivery shall be done by ?
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first class mail. (sect 6/ch3)
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Which of the following is CORRECT? I. The most common notices include 30-day notices for "no cause." II. If tenancy began more than one year ago, the tenant must receive a 60-day "no cause" notice.
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Both I and II (sect 6/ch3)
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Which of the following is CORRECT? I. The most difficult eviction proceedings for tenants to win are those based on 30-day notices for no cause II. When it comes to eviction, a residential property manager usually can terminate a rental agreement with a tenant without the tenant's agreement.
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Correct answer: I only (sect 6/ch3)
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Which of the following is INCORRECT? I. Residential property managers cannot take or keep any of a tenant's belongings until the rental agreement has ended. II. After a rental agreement has ended, however, a property manager has the right to dispose of a tenant's abandoned personal belongings in any convenient manner.
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Correct answer: II only (sect 6/ch3)
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A property manager may NOT remove a motor vehicle that is not abandoned from the rental premises without notice to the owner or operator if the vehicle: ________
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Correct answer: has a flat tire. (sect 6/ch3)
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In Oregon, a security deposit is ?
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Correct answer: a refundable payment or deposit. (sect 6/ch3)
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According to the Oregon Residential Landlord Tenant Act, a fee is ?
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Correct answer: a nonrefundable payment of money by a tenant. (sect 6/ch3)
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If a property manager is going to close a mobile home park, he must give all residents how many days' notice?
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365 days (sect 6/ch3)
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Delivery of notice must include ?
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Correct answer: a verbal or written notice by either party. (sect 6/ch3)
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Premises means which of the following? I. A dwelling unit and the structure of which it is a part and facilities and appurtenances. II. Grounds, areas and facilities held out for the use of tenants.
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Correct answer: Both I and II (sect 6/ch3)
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Property Maintenance
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Correct answer: Dwelling units must be in habitable condition. (sect 6/ch3)
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Transient Occupancy
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Correct answer: Hotels, motels, bed and breakfast, or any type of short-term lodging is not under the jurisdiction of the landlord tenant act. (sect 6/ch3)
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Retaliatory Conduct
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Correct answer: A landlord may not unjustly retaliate against a tenant by increasing rent or decreasing services. (sect 6/ch3)
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Property Manager
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Correct answer: A property manager has fiduciary obligations to the property owner and must comply with both federal and state landlord tenant rules. (sect 6/ch3)
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A property manager must keep a __________, _______________ copy of each tenant's rental agreement.
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Correct answer: true legible (sect 6/ch4)
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A property manager must give the property owner a copy of the property management agreement _______.
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Correct answer: promptly. (sect 6/ch4)
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After the execution of a valid property management agreement, the property manager must do all of the following EXCEPT:
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Correct answer: establish a clients' trust account only for the funds of the property owner who signed the agreement. (sect 6/ch4)
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A legible copy of the tenant's rental agreement I. must be given to the tenant by the property manager upon execution of the agreement. II. must be retained by the property manager in the site office.
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Correct answer: I only (sect 6/ch4)
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The original, executed property management agreement must be filed and maintained by the property manager for how long?
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Correct answer: for six years. (sect 6/ch4)
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All funds received by a manager must be deposited within __________banking days.
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Correct answer: 5 (sect 6/ch4)
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A property manager must deposit all funds received on behalf of a client into a Clients' Trust Account by the close of business on ?
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Correct answer: the fifth banking day following receipt. (sect 6/ch4)
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A ______________ ledger must be kept for each property managed.
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Correct answer: separate (sect 6/ch4)
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Owner's account ledgers must be: I. identified with the same client ID number as is stated on the property management agreement II. annually audited by an independent auditor.
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Correct answer: 1. I only (sect 6/ch4)
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When there are funds for more than one client in the same clients' trust account, each entry in the property manager's receipts and disbursements journal must, among other things, contain which of the following?
answer
...
question
A property manager must establish at least one owner's ledger for
answer
Correct answer: each property managed. (sect 6/ch4)
question
All cash received from a tenant by a property manager must I. be deposited into the property manager's clients' trust account. II. be recorded by an entry in the tenant's ledger.
answer
Correct answer: Both I and II (sect 6/ch4)
question
Which of the following statements concerning receipts for cash is FALSE?
answer
Correct answer: Property managers must retain only the originals of the receipts. (sect 6/ch4)
question
Clients' Trust Accounts
answer
Correct answer: A property manager must keep money separate from the business operation and their personal money. (sect 6/ch4)
question
Receipt and Disbursement Journal
answer
Correct answer: A log of all payments made into and out of the management's clients' trust account. (sect 6/ch4)
question
Owner's Ledger
answer
Correct answer: Similar to a receipts and disbursement journal, but only records funds received and disbursed for each individual owner. (sect 6/ch4)
question
Tenant Ledger
answer
Correct answer: Details all rent transactions with the tenant. (sect 6/ch4)
question
Reconciliation
answer
Correct answer: A balance and reconciliation of the company's receipt and disbursement journal, company bank statement and each owner's ledger. (sect 6/ch4)
question
Owner Reports
answer
Correct answer: A property manager is obligated to give an accounting of an owner�s property. The reports are usually given per month and an annual report. (sect 6/ch4)
question
Too much economic expansion causes inflation ? recession?
answer
Correct answer: inflation (sect 6/ch5)
question
The real estate market does not follow the business cycle. True or False
answer
False (sect 6/ch5)
question
Cycles of the real estate market differ from those of the general business economy in that ?
answer
Correct answer: trends in real estate lag behind trends in the general market. (sect 6/ch5)
question
When evaluating the data in a neighborhood survey a residential property manager will be most concerned with ?
answer
Correct answer: trends in population. (sect 6/ch5)
question
When completing a budget forecast, the property manager should I. study past budgets and income and expense reports. II. study past balance sheets.
answer
Correct answer: I only (sect 6/ch5)
question
In property management, an operating budget ?
answer
Correct answer: is a projection of anticipated costs for a building. (sect 6/ch5)
question
Information for estimating future operating expenses can be obtained I. from a review of operating expenses for comparable properties. II. from reviewing the owner's past operating expenses.
answer
Correct answer: Both I and II (sect 6/ch5)
question
Which of the following would be characterized as an operating expense in a property management budget? I. Hazard insurance II. Property management fees
answer
Correct answer: Both I and II (sect 6/ch5)
question
An example of a variable operating expense in the operation of a large office complex would be
answer
Correct answer: decorating costs. (sect 6/ch5)
question
The repair of fire damage to an office building is an example of a
answer
Correct answer: non-recurring variable cost. (sect 6/ch5)
question
The wages paid to the employees hired to maintain and clean a building are an example of ?
answer
Correct answer: regularly recurring cost. . (sect 6/ch5)
question
The break-even point is one of the primary ways to determine the profitability of a building. True or False?
answer
Correct answer: True (sect 6/ch5)
question
The property manager should be aware of the break-even point of any building he manages. The break-even point is ?
answer
Correct answer: the percent of occupancy required to break even at the particular rent charged. (sect 6/ch5)
question
Business Cycles (4 stages)
answer
Correct answer: The four stages to a business cycle; expansion, contraction, recession, and revival. (sect 6/ch5)
question
Market Rent Survey
answer
Correct answer: A report on comparable rents within a given area. (sect 6/ch5)
question
Variable Expenses
answer
Correct answer: Expenses that fluctuate with occupancy rates and collected income. (sect 6/ch5)
question
Projected net income
answer
Correct answer: Derived from potential rent collections minus vacancies and losses from credits. (sect 6/ch5)
question
Break Even Point
answer
Correct answer: Divide total expenses plus debt service by gross income. (sect 6/ch5)
question
The Federal Fair Housing Act covers ? I. discrimination in residential and commercial sales and leasing. II. discrimination in residential mortgage financing.
answer
Correct answer: II only (sect 6/ch6)
question
Persons who do not fall into certain protected categories cannot be discriminated against. True or False?
answer
Correct answer: False (sect 6/ch6)
question
Under Oregon law, it is lawful for a landlord of an apartment complex to I. require a prospective tenant to furnish credit references. II. reduce the rent for tenants who are married, but not for tenants who are single.
answer
Correct answer: I only (sect 6/ch6)
question
Which of the following types of discrimination is NOT covered by the Federal Fair Housing law?
answer
Correct answer: marital status. (sect 6/ch6)
question
The manager of an apartment complex that falls within the requirements of the federal fair housing laws may legally do which of the following? I. Segregate the families with children in specific portions of the complex. II. Charge the families with children higher rents than for tenants without children.
answer
Correct answer: Neither I nor II (sect 6/ch6)
question
A property manager routinely charges female tenants $200 for security deposits and male tenants $300 for security deposits. The property manager's policy I. is legal if he has documentation that male tenants overall are less financially responsible than female tenants. II. is legal if he refunds the difference after the tenant has established a good payment record.
answer
Correct answer: Neither I nor II (sect 6/ch6)
question
In Oregon, it is unlawful for a landlord to refuse to rent
answer
(sect 6/ch6)
question
The Fair Deal Agency manages two apartment complexes of comparable rents. The Essex is predominantly young professionals; the Fairfax Gardens is mostly occupied by lower income minorities. Smith, a member of a minority, inquires about a two-bedroom vacancy at the Essex, but is told—untruthfully—that the only two-bedroom available is at Fairfax Gardens. Smith declines because he knows that the Essex is better maintained and has more amenities. Seeking advice as to his rights under the Federal Fair Housing Act, Smith asks a broker friend whether the following practices violate the law: I. Discouraging rentals to minority prospects because management fears other tenants will flee. II. Providing an inferior level of services to the minority-occupied units than to other units of comparable rents. Which should the broker tell Smith violates the law?
answer
Correct answer: Both I and II (sect 6/ch6)
question
Under federal fair housing laws, a landlord may legally I. charge higher deposits for tenants with children than for those without children. II. limit the use of certain facilities, such as the swimming pool, to single tenants only.
answer
Correct answer: Neither I nor II (sect 6/ch6)
question
Blockbusting is an illegal lending practice. True or False?
answer
Correct answer: False (sect 6/ch6)
question
Oregon's discrimination statutes related to real property transactions apply to I. sellers of real property. II. lessors of real property. III. real estate licensees.
answer
Correct answer: I, II and III (sect 6/ch6)
question
Real estate licensees are bound by the laws covering discrimination. True or False?
answer
True (sect 6/ch6)
question
The Fair Credit Reporting Act was I. passed to address a growing credit reporting industry in the United States that compiled "consumer credit reports" and "investigative consumer reports" on individuals. II. was the first federal law to regulate the use of personal information by private businesses.
answer
Correct answer: Both I and II (sect 6/ch6)
question
The Fair Credit Reporting Act was I. passed to address a growing credit reporting industry in the United States that compiled "consumer credit reports" and "investigative consumer reports" on individuals. II. was the first federal law to regulate the use of personal information by private businesses.
answer
Correct answer: Both I and II (sect 6/ch6)
question
Fair Housing Act
answer
Correct answer: Prohibits discrimination by real estate professionals or private individuals against protected classes in all residential housing transactions. (sect 6/ch6)
question
Protected Categories
answer
Correct answer: Race, color, religion, sex, national origin, familial status, mental or physical handicapped and in Oregon marital status. (sect 6/ch6)
question
Blockbusting
answer
Correct answer: A broker induces panic selling for his own profit. (sect 6/ch6)
question
Redlining
answer
Correct answer: A lender refuses to make home loans in predominately minority areas. (sect 6/ch6)
question
HUD Complaint
answer
Correct answer: Upon investigation, HUD will turn a complaint over to the Oregon Bureau of Labor and Industries. (sect 6/ch6)
question
A licensed personal assistant to an Oregon broker associated with a principal real estate broker could legally perform which of the following activities? I. Install signs and lock boxes on listed properties. II. Prepare and submit advertising to a newspaper as long as the broker reviews it.
answer
I only (sect 1)
question
A principal real estate broker hired a number of part-time employees to show property, pass out brochures, quote prices, and state terms of the sale of real property in a development. A real estate broker was on site to fill out all of the earnest money agreements. The employees did not sign documents. Under these circumstances, the employees must be:
answer
employees must be real estate licensees. (sect 1)
question
Which of the following statements is false concerning an inactive real estate broker involved in a lease option of his personally owned real estate? 1. The transaction must be supervised by a principal real estate broker. 2. The real estate broker must deposit all funds received in the transaction into a neutral escrow depository. 3. The real estate broker must maintain a transaction file on the transaction as if the transaction were being handled by a principal real estate broker. 4. The real estate broker must disclose the broker's license status to the other party to the transaction.
answer
1. The transaction must be supervised by a principal real estate broker. (sect 1)
question
4. Which of the following individuals is not exempt from licensing law or requirements while engaging in property management activity? 1. A hotel representative in the business of arranging transient lodging in a hotel or inn. 2. A railroad company arranging transient lodging at a hotel or inn in the course of its business. 3. An innkeeper arranging transient lodging at his inn. 4. A limited partner in a limited partnership who, on a part-time basis, is acting under a separate, written property management agreement to rent the real property of the limited partnership.
answer
4. A limited partner in a limited partnership who, on a part-time basis, is acting under a separate, written property management agreement to rent the real property of the limited partnership. (sect 1)
question
. With his principal broker's permission and supervision, a real estate broker could do which of the following according to the Oregon real estate license law? I. Manage an office for 120 consecutive days. II. Close a transaction.
answer
II only (sect 1)
question
Oregon law provides that a person may renew an inactive real estate license 1. once, for a three-year term. 2. not more than twice, each time for two years. 3. only after taking an examination on current real estate matters. 4. every two years indefinitely.
answer
4. every two years indefinitely. (sect 1)
question
In Oregon, at the time of executing an earnest money agreement, the question of the disposition of forfeited earnest money is a matter for negotiation between 1. the principal or sole practitioner real estate broker and the seller. 2. the principal or sole practitioner real estate broker and the buyer. 3. the buyer and the seller. 4. all clients and principal or sole practitioner real estate brokers involved in the transaction.
answer
1. the principal or sole practitioner real estate broker and the seller. (sect 1)
question
Interest accrued on an interest-bearing client's trust account may not be directly paid to the 1. seller. 2. principal real estate broker. 3. purchaser. 4. associated broker.
answer
4. associated broker. (sect 1)
question
A real estate broker associated with a principal broker who hires an unlicensed person to work as a personal assistant could legally I. pay the assistant a salary. II. share a commission with the assistant.
answer
I. pay the assistant a salary. (sect 1)
question
A seller engages a broker to find a buyer ready, willing and able to purchase a seller's parcel of real property. The seller executes and delivers to the broker an exclusive right to sell employment contract. A few weeks prior to the expiration date of the employment contract, the seller decides to revoke the contract before any sale occurred and prior to the broker finding a buyer ready, willing and able to buy the property. 1. The owner can revoke his contract but could be liable for damages. 2. The owner can revoke his contract and will not be liable for damages to the broker. 3. The owner could not revoke his contract because it is irrevocable. 4. The owner would have to sell the real property at the listed price of the broker found a buyer ready, willing and able to buy at this price.
answer
1. The owner can revoke his contract but could be liable for damages. (sect 1)
question
In a usual listing agreement, the broker is authorized to 1. convey the real property listed. 2. promise the buyer that any offer on the listed terms will be accepted. 3. find a purchaser and bind his client to a contract. 4. find a purchaser and accept a deposit
answer
4. find a purchaser and accept a deposit (sect 1)
question
If principal broker Ed is aware that principal broker Dave has an exclusive listing which is about to expire, broker Ed may : 1. solicit an exclusive listing agreement from the owner after the expiration date. 2. persuade the owner to sign another exclusive listing immediately. 3. place his sign on the property anticipating the expiration of the listing. 4. secure a sales agreement from purchasers and with hold it until expiration of the listing.
answer
. solicit an exclusive listing agreement from the owner after the expiration date. (sect 1)
question
13. A seller refuses to provide either a property condition disclosure statement or disclaimer to the buyer. What may the listing licensee do in this situation? I. On behalf of the seller, he may issue the disclosure to the buyer. II. On behalf of the seller, he may issue a disclaimer to the buyer.
answer
Neither I or II (sect 1)
question
Broker Reed had an open listing on a house. To collect a commission he would have to prove which of the following? 1. He had a current real estate license. 2. He had a ready, willing, and able buyer. 3. He was the procuring cause of the sale. 4. All of the above.
answer
4. All of the above. (sect 1)
question
Mr. and Mrs. Thomas Martin want to sell their house. They want a broker to show the property, but they would like to be able to sell the house themselves without the obligation of paying a broker a commission. What form of listing would allow them to use several broker's services and not pay a commission should they sell the house themselves? 1. Open listing 2. Exclusive listing 3. Exclusive right to sell listing 4. Net listing
answer
1. Open listing (sect 1)
question
An exclusive agency listing guarantees the broker his commission 1. if any broker sells the property. 2. if the seller sells the property. 3. only if the sales price exceeds the listed price. 4. if the property changes ownership for any reason.
answer
1. if any broker sells the property. (sect 1)
question
A broker is entitled to a commission regardless of who sells the property during the listing period if he has which of the following listings? 1. Open 2. Exclusive right to sell 3. Net 4. All of the above
answer
2. Exclusive right to sell (sect 1)
question
Which of the following is NOT a strict legal term for a type of employment contract or listing? 1. Open listing 2. Exclusive agency listing 3. Multiple listing 4. Exclusive right to sell listing
answer
3. Multiple listing (sect 1)
question
An earnest money agreement is 1. a legally enforceable contract immediately upon the signature of the seller only. 2. a legally enforceable contract immediately upon the seller's acceptance and communication of acceptance to the buyer. 3. an opinion to buy which the purchaser may accept or reject. 4. none of the above.
answer
2. a legally enforceable contract immediately upon the seller's acceptance and communication of acceptance to the buyer. (sect 1)
question
A buyer gave a broker a written offer to purchase property which contained a 10 day acceptance clause along with a $2000 deposit. On the fifth day, prior to acceptance by the seller, the buyer notified the broker that he was withdrawing his offer and demanding return of the deposit. Which of the following statements is true? 1. The buyer cannot withdraw the offer until the end of the 10 day period. 2. The buyer may revoke his offer any time before the seller's acceptance is communicated to him and may obtain the return of his deposit. 3. The buyer may revoke his offer any time before he is notified of the seller's acceptance, but he will lose the deposit. 4. None of the above are true
answer
2. The buyer may revoke his offer any time before the seller's acceptance is communicated to him and may obtain the return of his deposit. (sect 1)
question
When a purchaser offers to buy real property, the: I. earnest money check should be made payable to the broker writing up the offer. II. purchaser may terminate the offer and have the earnest money refunded even though the seller has orally approved the offer.
answer
II only, (sect 1)
question
Equitable title is transferred to a buyer upon the execution of which of the following documents? I. Mortgage II. Land sales contract III. Trust deed
answer
II. Land sales contract (sect 1)
question
To avoid having a voidable contract, all "Time is of the essence" deadline set by the contract must be met I. within 24 hours of the stated deadline. II. within 48 hours of the stated deadline.
answer
4. Neither I nor II (sect 1)
question
Which of the following statements about counteroffers is true? I. A counteroffer is a rejection of the first offer and a new offer. II. A slight change made by the seller, such as moving the day of closing from one day to the next, would create a counteroffer.
answer
Both I and II (sect 1)
question
In a real estate sales transaction, the amount of the earnest money deposit is determined by 1. the real estate license law. 2. agreement of the parties. 3. a minimum of 5% of sales price. 4. the broker.
answer
2. agreement of the parties. (sect 1)
question
Which of the following statements concerning counteroffers is true? I. If the counteroffer is refused the original offer is open for acceptance. II. Material changes made to an original offer constitute a counteroffer.
answer
. II only (sect 1)
question
A second offer made on a property prior to the seller's decision on the first offer should be 1. rejected by the broker. 2. submitted to the seller immediately. 3. held pending a decision on the first offer. 4. returned to the offeror if it does not provide better terms than the first offer.
answer
2. submitted to the seller immediately. (sect 1)
question
A provision in an offer to purchase that requires the completion of a certain act before the contract is binding is known as a 1. covenant. 2. mandamus. 3. restriction. 4. contingency.
answer
4. contingency. (sect 1)
question
Jack Williams, a property manager, was $1000 short of the money he needed to pay his office rent. He wrote a check to himself from his client's trust account with the intention of replacing the monies from his next transaction. Williams action is known as I. conversion. II. commingling.
answer
I only (sect 1)
question
Commingling occurs when I. the client's funds are mixed with the agents personal account. II. a principal broker uses his own personal account to deposit client's funds.
answer
Both I and II (sect 1)
question
Using a clients funds for personal use is called I. commingling. II. conversion.
answer
II only (sect 1)
question
Miller, a licensed principal real estate broker, was sued for conversion. This means that Miller allegedly 1. misappropriated his client's funds. 2. failed to submit copies of the offer to purchase to the seller and buyer. 3. commingled the client's money with his own. 4. did all of the above.
answer
1. misappropriated his client's funds. (sect 1)
question
To the seller, a real estate broker representing the seller usually is 1. a general agent. 2. a factor agent. 3. an ostensible agent. 4. a special agent.
answer
4. a special agent (sect 1)
question
To create a valid listing for the purpose of selling real estate, a broker must have 1. two witnesses to the contract. 2. a written contract. 3. a general power of attorney. 4. a signed deed by the sellers
answer
2. a written contract. (sect 1)
question
Where no time period for acceptance by the offeree is stipulated in an offer, the offer 1. will lapse in 24 hours time. 2. will lapse in 48 hours time. 3. will lapse after a reasonable time. 4. will not lapse; it must be revoked by the offeror.
answer
3. will lapse after a reasonable time. (sect 1/)
question
Oregon administrative rules concerning listing agreements require I. definite expiration dates only if the listing is an exclusive right-to-sell. II. a licensee to give a copy of the listing to the seller at the time of securing the listing.
answer
II only (sect 1)
question
Oregon Real Estate Agency regulations require a licensee who is handling an offer to purchase to 1. give a legible copy of the document to all parties signing it. 2. show all written offers to purchase promptly to the seller. 3. keep a written record of the date and time each time the licensee shows a written offer to purchase to the seller. 4. do all of the above.
answer
4. do all of the above. (sect 1)
question
Part of the consideration offered to a seller when the buyer signs an agreement of sale is called 1. an option. 2. a recognizance. 3. earnest money. 4. a freehold estate.
answer
3. earnest money. (sect 1)
question
The form of listing agreement that provides the most benefit and protection to the broker is the 1. open listing. 2. exclusive right to sell listing. 3. exclusive agency listing. 4. multiple listing.
answer
2. exclusive right to sell listing. (sect 1)
question
The property condition disclosure or disclaimer law 1. requires a real estate licensee to complete the form for the seller if the seller refuses to comply. 2. applies to residential property. 3. requires compliance only if the buyer makes a specific request. 4. applies only to sellers represented by real estate licensees.
answer
2. applies to residential property. (sect 1)
question
Principal brokers must supervise which of the following activities of brokers? 1. Completion of a listing (employment) agreement. 2. Completion of a competitive market analysis. 3. Completion of an earnest money agreement. 4. Brokers must be supervised while performing all of the above.
answer
Correct answer: 4. Brokers must be supervised while performing all of the above. (sect 1)
question
A broker associated with a principal real estate broker was asked by a property owner to prepare a competitive market analysis for the owner's residence. Under Oregon law, which of the following statements about a competitive market analysis are true? I. A fee may be charged for providing a competitive market analysis. II. The analysis may not be contingent upon reporting a predetermined value.
answer
Correct answer: 3. Both I and II (sect 1)
question
A real estate broker associated with a principal real estate broker may do which of the following activities without supervision? 1. Set up his own property management business. 2. Rent or lease the licensee's own real estate. 3. Lease-option the licensee's own real estate. 4. Sell the licensee's own real estate.
answer
Correct answer: 2. Rent or lease the licensee's own real estate. (sect 1)
question
There are exemptions to licensing under the Oregon Real Estate Law, but which of the following is required to be licensed? 1. A Department of Veterans Affairs employee selling foreclosed homes. 2. A person who, for a fee, markets rental property and collects rent. 3. A person performing professional real estate activity under a court order. 4. A general partner who engages in a real estate transaction for a limited partnership.
answer
Correct answer: 2. A person who, for a fee, markets rental property and collects rent. (sect 1)
question
When a real estate broker asks a principal real estate broker to terminate their business relationship, the principal real estate broker must 1. send the real estate broker's license without delay to the real estate broker's new employing principal broker. 2. send a performance appraisal report to the Real Estate Agency Records Section. 3. return the real estate broker's license without delay to the Real Estate Commissioner. 4. do both of the first two above.
answer
Correct answer: 3. return the real estate broker's license without delay to the Real Estate Commissioner. (sect 1)
question
A person who holds an inactive real estate license I. may not engage in professional real estate activity. II. must disclose the fact that he has a license when buying or selling property on his own account or at least the first written document of agreement.
answer
Correct answer: 3. Both I and II (sect 1)
question
If a buyer makes an earnest money deposit and later forfeits the deposit, what is the disposition of the forfeited earnest money? 1. The real estate broker and the seller must negotiate the disposition of forfeited earnest money at the time they complete a listing agreement or earnest money agreement. 2. The real estate broker and the seller must always equally divide the forfeited earnest money between them. 3. The seller is always entitled to the full amount of the earnest money deposit. 4. The real estate broker is always entitled to the amount of the broker's expenses incurred, and the seller is entitled to the balance of the forfeited earnest money.
answer
Correct answer: 1. The real estate broker and the seller must negotiate the disposition of forfeited earnest money at the time they complete a listing agreement or earnest money agreement. (sect 1)
question
Which of the following must be deposited in a client's trust account or a neutral escrow? I. Earnest money deposits II. Collected rents to be prorated at closing III. Sales proceeds yet to be disbursed
answer
Correct answer: 4. I, II and III (sect 1)
question
Oregon real estate license law restricts brokers associated with principal brokers from I. bringing a lawsuit against a seller for payment of commission. II. directly accepting a finders fee from a principal broker with whom the broker is not licensed.
answer
Correct answer: 3. Both I and II (sect 1)
question
Were does a broker get the authority to accept an earnest money deposit? 1. The listing agreement 2. The offer to purchase 3. The land sales contract 4. Escrow instructions
answer
Correct answer: 1. The listing agreement (sect 1)
question
Broker Wilson, a sole practitioner, obtained an exclusive right to sell listing on a property. Five days later he died. 10 days after his death an offer was made on the property to a cooperating broker. Which of the following statements is true concerning this situation? 1. Wilson's wife could assume the listing contract and present the offer to the seller. 2. If the offer was accepted by the seller, Wilson's commission would be paid to his estate. 3. The listing agreement terminated at Wilson's death. 4. Any commission from the sale of the property would be paid to Wilson's heirs.
answer
Correct answer: 3. The listing agreement terminated at Wilson's death. (sect 1)
question
At the time of her death Mrs. Sampson, a licensed real estate broker, had 50 listings. The business, including all its assets, was left to her daughter, Jane Jones, who is also a licensed real estate broker. If the daughter wished to legally collect commissions on the sale of the listed properties, she would be required to 1. negotiate a new listing with each of the 50 property owners. 2. do nothing as provisions had already been made. 3. take court action to authorize collection. 4. tell each owner that the commission would be paid to her.
answer
Correct answer: 1. negotiate a new listing with each of the 50 property owners. (sect 1)
question
A typical listing contract contains which of the following? I. Description of the property II. Seller's obligation to pay a commission III Terms on which the seller wishes to sell the property.
answer
Correct answer: 4. I, II and III (sect 1)
question
A listing agreement which gives only one broker the right to sell the property during the listing, but which also reserves to the owner the right to sell his own property during the listing period without liability for a commission, is called 1. an open listing. 2. an exclusive right to sell. 3. a universal agency. 4. an exclusive agency.
answer
Correct answer: 4. an exclusive agency. (sect 1)
question
An owner signed a listing with the broker where it was understood that if the property was sold through the efforts of any other broker, or the owner, the listing broker would not be entitled to a commission. This kind of contract is called 1. an open listing. 2. a net listing. 3. an exclusive agency listing. 4. an exclusive right to sell listing.
answer
Correct answer: 1. an open listing. (sect 1)
question
A licensed real estate broker took an exclusive agency listing from an owner for a 90 day term. After the broker had expended considerable time and expense in trying to locate a buyer, the owner sold the property himself during the listing period. Under these circumstances the broker was entitled to 1. a full commission. 2. no commission. 3. half of the agreed commission. 4. his advertising expenses.
answer
Correct answer: 2. no commission. (sect 1)
question
Frank Morrow listed his property with broker Ted Scott. The listing agreement authorized Scott to act as a sole agent of Morrow and entitled Scott to a commission regardless of who sold the property. This is an example of 1. an open listing. 2. an exclusive right to sell listing. 3. a multiple listing. 4. an exclusive agency listing.
answer
Correct answer: 2. an exclusive right to sell listing. (sect 1)
question
A broker in court to collect a commission on an exclusive right to sell listing must allege and prove which of the following? I. He had an agency relationship with the seller. II. He was licensed. III. He introduced the buyer and the seller.
answer
Correct answer: 3. I and II only (sect 1)
question
Judy Brown listed her property with broker David Rowell. The listing contract stipulated that Brown would receive $62,000, with all proceeds over that amount to be given to Rowell for his commission. This type of listing is referred to as 1. an open listing. 2. an exclusive agency listing. 3. a net listing. 4. an exclusive right to sell listing.
answer
Correct answer: 3. a net listing. (sect 1)
question
When an earnest money agreement has been signed by the purchaser and given to the seller's broker with an earnest money check 1. the transaction constitutes a valid contract by law. 2. the purchaser can sue for specific performance if the seller refuses to sign the agreement. 3. the transaction is considered an offer until the seller accepts the agreement and the acceptance is communicated to the buyer. 4. the earnest money must be returned to the purchaser if he withdrawals the offer after the seller signs the agreement.
answer
Correct answer: 3. the transaction is considered an offer until the seller accepts the agreement and the acceptance is communicated to the buyer. (sect 1)
question
Wells agreed to purchase Peterson's real property for $45,000, signed an earnest money agreement and deposited $5,000 earnest money with broker Logan. Peterson was unable to provide marketable title, so Wells demanded return of his earnest money from Logan. Logan should 1. return the earnest money to Wells after Logan deduction his commission. 2. divide the earnest money in half and return one half to Wells and one half to Peterson. 3. return the entire amount to Wells. 4. forward the entire amount to Peterson.
answer
Correct answer: 3. return the entire amount to Wells. (sect 1)
question
An accepted offer to purchase contains the signature of I. the buyer. II. the seller.
answer
Correct answer: 3. Both I and II (sect 1)
question
Once an offer to purchase real estate has been signed by both buyer and seller, the buyer acquires an interest in the property known as 1. legal title. 2. special title. 3. equitable title. 4. sole title.
answer
Correct answer: 3. equitable title. (sect 1)
question
Where do you find the "time is of the essence" clause? 1. Closing documents 2. Earnest money agreement 3. Employment contract 4. Listing contract
answer
Correct answer: 2. Earnest money agreement (sect 1)
question
A counteroffer I. results in a new contract if accepted. II. invalidates the original offer.
answer
Correct answer: 3. Both I and II (sect 1)
question
The Buyer made an offer at less than the asking price. The Seller made a counteroffer. The Buyer would not accept the counteroffer. The Seller then agreed to accept the first offer. The situation now is that the I. Buyer is legally bound to complete the deal. II. broker has earned his commission.
answer
Correct answer: 4. Neither I nor II (sect 1)
question
A contractual provision making the sale of a home subject to the buyer qualifying for a particular kind of loan is called a 1. covenant. 2. contingency. 3. courtesy. 4. novation.
answer
Correct answer: 2. contingency. (sect 1)
question
When a buyer, after all the parties have executed the purchase agreement, asks the broker for permission to move into the property before the closing, the broker's best course of action would probably be to 1. deny permission, but direct the buyer to the seller to discuss a temporary lease. 2. grant permission since the broker is the seller's agent and has the authority to act in the seller's behalf in such matters. 3. grant permission only if the seller has completely vacated the property. 4. do either one or two above.
answer
Correct answer: 1. deny permission, but direct the buyer to the seller to discuss a temporary lease. (sect 1)
question
The purchase agreement specifies that the agent and the seller may keep the earnest money if the buyer defaults. This stipulation is known as 1. mutual rescission. 2. unilateral rescission. 3. liquidated damages. 4. punitive damages.
answer
Correct answer: 3. liquidated damages. (sect 1)
question
As a concept of value, the highest and best use is the use that 1. contributes to the best interest of the community. 2. complies with zoning and deed restrictions. 3. produces the highest gross income. 4. produces the greatest net return on the investment.
answer
Correct answer: 4. produces the greatest net return on the investment. (sect 1)
question
Which of the following is NOT a characteristic of value? 1. Utility 2. Scarcity 3. Transferability 4. Cost
answer
Correct answer: 4. Cost (sect 1)
question
Market value is 1. the price a willing seller will accept and a willing purchaser will pay 2. cost of lot plus cost of building. 3. cost of lot and the capitalized value of the improvements. 4. determined by an appraiser.
answer
Correct answer: 1. the price a willing seller will accept and a willing purchaser will pay (sect 1)
question
Amenities are 1. changes or revision in a contract. 2. factors of convenience, location, beauty or utility. 3. payment received in satisfaction of injuries. 4. not considered by appraisers.
answer
Correct answer: 2. factors of convenience, location, beauty or utility. (sect 1)
question
When a lump-sum expenditure is required for overdue repairs, it is usually identified as 1. physical obsolescence. 2. functional obsolescence. 3. deferred maintenance. 4. building residual.
answer
Correct answer: 3. deferred maintenance. (sect 1)
question
Usually, the listing contract authorizes the broker to I. find a buyer. II. bind the seller to a sales contract when a qualified buyer has been found.
answer
Correct answer: 1. I only (sect 1)
question
A buyer and seller enter into an earnest money agreement through the efforts of a broker. The broker has liability to the buyer, and the buyer may have recourse against the broker if I. the broker gave the money to the seller and the seller backed out of the transaction. II. the broker acted outside the limits of the authority as granted. III. the broker misrepresented facts to the buyer.
answer
Correct answer: 4. I, II and III (sect 1)
question
Real estate license law prohibits real estate brokers from acting on their behalf without 1. the approval of the state regulatory agency. 2. the approval of the local real estate board. 3. full disclosure of their license status. 4. reservations.
answer
Correct answer: 3. full disclosure of their license status. (sect 1)
question
The seller tells the principal broker that termites have destroyed the floor and that the swimming pool is in violation of the city's setback requirements. Which of the following must the principal brokers broker disclose to a prospective buyer? I. The condition of the floor. II. The pool violation.
answer
Correct answer: 3. Both I and II (sect 1)
question
A broker has an exclusive listing on a house. The listing price was $73,250; the commission was 8% of the selling price. The broker received an offer from a buyer for $71,500 along with a $7,000 deposit. The offer included a termite and dry rot inspection as a contingency. The seller accepted the offer and instructed the broker to deposit the $7,000 into escrow. The broker should 1. deposit $1280 into escrow and retain $5,720 for his commission. 2. deposit the $7,000 into his personal account until the contingency has been met and then transfer the $7,000 into an escrow account. 3. deposit the $7,000 with an escrow company to which the parties have agreed. 4. deposit the $7,000 into a federally insured savings account under the broker's name until the transaction is ready to close.
answer
Correct answer: 3. deposit the $7,000 with an escrow company to which the parties have agreed. (sect 1)
question
Oregon's agency disclosure law applies to 1. residential property. 2. commercial property. 3. industrial property. 4. all of the above.
answer
Correct answer: 4. all of the above. (sect 1)
question
Oregon's agency disclosure law requires that a selling real estate licensee representing the seller give an Initial Agency Disclosure Pamphlet to a prospective buyer 1. only if the buyer signs an earnest money agreement. 2. at the first contact with the buyer who appears to be seeking representation. 3. within 10 days after the buyer contacts the licensee. 4. only if the licensee initiates the contact with the buyer.
answer
2. at the first contact with the buyer who appears to be seeking representation. (sect 2)
question
Under Oregon's agency disclosure law, a real estate broker associated with a principal broker may represent both the seller and buyer by a disclosed limited agency relationship. In this type of agency relationship I. the broker must agree to receive compensation from one party, not both. II. the buyer and seller arrange to have the principal broker keep some information confidential from the parties unless express permission otherwise is given.
answer
II only (sect 2)
question
Under Oregon's agency disclosure law, a buyer's single agent I. may accept a commission only from the buyer. II. is responsible for providing an Initial Agency Disclosure Pamphlet to the buyer at first contact.
answer
II only (sect 2)
question
An Oregon real estate licensee who agrees to act as the seller's agent is responsible to I. explain to the seller of the seller's obligations under the property condition disclosure and disclaimer law. II. provide a copy of the Initial Agency Disclosure Pamphlet to the seller prior to entering into a listing agreement.
answer
Both I and II (sect 2)
question
Which of the following statements about the Oregon property condition disclosure/disclaimer law and the agency disclosure law is true? I. The property disclosure/disclaimer law applies to all property within the State of Oregon. II. The agency disclosure law is limited to the sale of residential property.
answer
Neither I nor II (sect 2)
question
A prospective buyer must be given an Initial Agency Disclosure Pamphlet by the real estate licensee 1. at first contact. 2. as soon as the prospective buyer's specific real property needs or financial information is discussed. 3. at any time as long as it is given before closing. 4. only when the buyer signs and earnest money agreement.
answer
1. at first contact. (sect 2)
question
When an Oregon licensee represents the buyer as the buyer's agent I. only the buyer may pay the the licensee's commission.. II. the licensee has an obligation to the seller of honest dealing and disclosure of material facts.
answer
II only (sect 2)
question
A principal real estate broker 1. must only act for one party in a transaction. 2. may act for both parties if licensed for a minimum of one year. 3. is a fiduciary and has the duty to remain neutral. 4. may act for both parties with the knowledge and written consent of both.
answer
4. may act for both parties with the knowledge and written consent of both. (sect 2)
question
A valid contract employs someone to do specific legal tasks which involve representing the interests of the client to a third party. What kind of relationship is created by the contract? 1. Owelty 2. Lis pendens 3. Fee simple 4. Agency
answer
4. Agency (sect 2)
question
To the seller, a real estate broker representing the seller usually is 1. a general agent. 2. a factor agent. 3. and ostensible agent. 4. a special agent.
answer
4. a special agent. (sect 2)
question
An owner of property gave a listing to a principal broker. Shortly thereafter the owner died. In this case the 1. agency is immediately terminated. 2. principal broker is entitled to his full commission from the estate. 3. listing agreement is binding on the heirs of the deceased owner. 4. principal broker is entitled to a reasonable time thereafter to procure a buyer during which time the listing will remain in force
answer
1. agency is immediately terminated. (sect 2)
question
What law prescribes the rights and duties between a property manager and his clients? 1. The law of agency. 2. The statute of frauds. 3. The statute of limitations. 4. The fair housing act.
answer
1. The law of agency. (sect 2)
question
The duty of loyalty to a client's interest requires a broker to I. keep the client informed of changing market conditions. II submit to the client all written offers received on the property.
answer
Both I and II (sect 2)
question
The prime obligation of an agent to the client is 1. loyalty. 2. deference. 3. mutual trust. 4. respect.
answer
1. loyalty (sect 2).
question
Marie Gregg acted on behalf of Tom Hilton without his authority, or even appearance of authority. At a later date, Hilton approved of her actions. Hilton's later approval of Gregg's actions would be an example of 1. express agreement. 2. ratification. 3. estoppel. 4. assumption of authority.
answer
2. ratification. (sect 2).
question
Once an Oregon licensee has established a single agency relationship with the seller or the buyer I. the relationship may not be changed to disclosed limited agency representation. II. the broker's commission may only be paid by the party with whom the broker has the relationship.
answer
Correct answer: 4. Neither I nor II (sect 2).
question
Under Oregon's agency disclosure law I. prior to entering into a listing agreement a real estate licensee must give an Initial Agency Disclosure Pamphlet to the seller. II. a seller is prohibited from paying a buyer's single agent's commission.
answer
Correct answer: 1. I only (sect 2).
question
Which of the following types of transactions, among others, are included under Oregon's agency disclosure statutes? I. Exchanges of real property. II. Options to purchase real property.
answer
Correct answer: 3. Both I and II (sect 2).
question
The first contact between Louise, the listing licensee representing the seller, and Susan, the purchaser, took place in the office. Under Oregon law, which of the following statements is true regarding this situation? 1. Louise must provide Susan a copy of the Initial Agency Disclosure Pamphlet. 2. Louise may give Susan a copy of the Initial Agency Disclosure Pamphlet. 3. Louise does not need to provide a copy of the Initial Agency Disclosure Pamphlet to Susan if Susan waves her right to disclosure. 4. Louise is under no obligation to provide a copy of the Initial Agency Disclosure Pamphlet to Susan unless Louise agrees to become a buyers agent for Susan.
answer
Correct answer: 1. Louise must provide Susan a copy of the Initial Agency Disclosure Pamphlet. (sect 2).
question
A real estate licensee is representing both the seller and buyer under a disclosed limited agency agreement. Under Oregon's agency disclosure law, the licensee may I. reveal to the buyer, without the seller's permission, that the seller will accept a price lower than the listing price. II. reveal to the seller, without the buyer's permission, that the buyer will pay a price higher than the offering price.
answer
Correct answer: 4. Neither I nor II (sect 2).
question
A real estate licensee representing a buyer has an obligation to I. provide an Initial Agency Disclosure Pamphlet to the buyer at first contact. II. Inform the buyer of the buyer's rights under the property condition disclosure/disclaimer law.
answer
Correct answer: 3. Both I and II (sect 2).
question
A buyer properly revoked his offer after receiving the property condition disclosure and requests the return of his earnest money. The broker 1. must promptly return the earnest money. 2. must obtain the seller's approval before releasing the earnest money 3. should file an interpleader to determine the disposition of the earnest money. 4. may, with the seller's permission, deduct part of his commission from the earnest money.
answer
Correct answer: 1. must promptly return the earnest money. (sect 2).
question
Under Oregon's agency disclosure law, a seller's single agent 1. may accept a commission only from the seller. 2. is responsible for providing an Initial Agency Disclosure Pamphlet to the seller before entering into the listing agreement. 3. has no obligations to the buyers. 4. may not cooperate with a buyer's single agent.
answer
Correct answer: 2. is responsible for providing an Initial Agency Disclosure Pamphlet to the seller before entering into the listing agreement. (sect 2).
question
The relationship between a real estate broker and his client is which of the following? 1. A fiduciary 2. An agency 3. Both of the above 4. None of the above
answer
Correct answer: 3. Both of the above (sect 2).
question
The position of trust assumed by the broker as an agent for the client is described most accurately as a 1. trustee relationship. 2. trustor relationship. 3. confidential relationship. 4. fiduciary relationship.
answer
Correct answer: 4. fiduciary relationship (sect 2).
question
A real estate broker may lose the right to a commission in a real estate transaction if I. guilty of a misstatement of known material facts. II. not licensed when hired as an agent.
answer
Correct answer: 3. Both I and II (sect 2).
question
The relationship between a real estate broker and his client is which of the following? 1. A fiduciary 2. An agency 3. Both 1 and 2 4. Neither 1 nor 2
answer
Correct answer: 3. Both 1 and 2 (sect 2).
question
In a standard listing contract, the principal broker acquires I. a fiduciary obligation toward his client. II. a limited power of attorney to accept offers on behalf of the client.
answer
Correct answer: 1. I only (sect 2).
question
According to the law of agency, a real estate property manager owes his client the duty of I. offering legal advice. II. conforming with his clients instructions. III. exercising reasonable care.
answer
Correct answer: 3. II and III only (sect 2).
question
A seller of a parcel of real property told the broker that the roof leaked in the house on the property and a statement to that effect was included in the listing agreement. The seller told the broker to inform all prospective buyers of this fact, but the broker sold the property and failed to tell the buyer that the roof leaked. What recourse does the seller have against the broker if the buyer sues the seller for misrepresentation? The seller 1. can recover damages from the broker. 2. cannot recover his damages because the client is solely liable for the acts of the agent. 3. must seek redress only with the Real Estate Agency. 4. has no recourse because of caveat emptor.
answer
Correct answer: 1. can recover damages from the broker. (sect 2).
question
The best way to discover a flaw in the recorded title to a piece of real property is by 1. calling the county surveyor. 2. taking out property insurance. 3. a search of title. 4. hiring a lawyer.
answer
3. a search of title. (sect 3)
question
A licensed property manager may authorize I. another licensed property manager to supervise her property management activity in her absence. II. an unlicensed bookkeeper to supervise in her absence.
answer
. I only (sect 3)
question
Abstract of title is a 1. contract for a deed. 2. condensed history of the title. 3. guarantee of title. 4. survey of the property.
answer
2. condensed history of the title (sect 3)
question
When a government agency takes possession of private property for public use, it is exercising the right of 1. eminent domain. 2. adverse possession. 3. dedication. 4. reversion.
answer
1. eminent domain. (sect 3)
question
The removal of land when a stream suddenly changes its channel is 1. adverse possession. 2. accretion. 3. avulsion. 4. breach.
answer
3. avulsion. (sect 3)
question
The process under eminent domain by which property is taken for public use is 1. lis pendens. 2. judgment. 3. condemnation. 4. abstract of judgment.
answer
3. condemnation. (sect 3)
question
Trees and crops 1. are real property. 2. are personal property. 3. may be real or personal property, depending on the circumstances. 4. are neither personal property nor real property; they are a form of fructus naturales.
answer
3. may be real or personal property, depending on the circumstances. (sect 3)
question
The addition to one's land by the gradual deposit of soil through natural causes is 1. annulation. 2. avulsion. 3. accretion. 4. ademption.
answer
3. accretion. (sect 3)
question
The system of land ownership whereby the land is owned and controlled by individuals is known as the 1. feudal system. 2. commercial system. 3. allodial system. 4. torrens system.
answer
3. allodial system (sect 3).
question
The right of alienation is defined as 1. the right to execute and deliver a deed. 2. the right to transfer an interest in real property. 3. the right to make a will. 4. statutes of descent and distribution.
answer
2. the right to transfer an interest in real property. (sect 3).
question
If aluminum storm windows are custom-made and installed on a particular building, they become what may properly be described as a I. fixture. II. part of the real property.
answer
2.Both I and II (sect 3).
question
An appurtenant easement 1. has no dominant estate. 2. is personal to the holder and incapable of transfer. 3. is possessory interest in the land of another person. 4. is an interest in land capable of transfer.
answer
4. is an interest in land capable of transfer. (sect 3).
question
A deed to real property has the statement "subject to an easement." The term "subject to" would mean the burdened land is 1. appurtenant. 2. a liability. 3. encumbered. 4. restricted.
answer
3. encumbered. (sect 3).
question
Harry owns a house subject to a first mortgage. His property is said to be 1. restricted. 2. encumbered. 3. subordinated. 4. executed.
answer
2. encumbered. (sect 3).
question
What is the usual way to finance a new sewer line installed in a neighborhood? 1. Excise tax 2. Special assessment 3. Real property tax 4. Utility charge
answer
2. Special assessment (sect 3).
question
Which of the following would be classified as an estate? 1. Mortgage 2. Lease 3. Real estate taxes 4. All of the above
answer
2. Lease (sect 3).
question
The maximum estate that a person may hold in land is called 1. estate in severalty. 2. a fee simple estate. 3. an estate for years. 4. a life estate.
answer
2. a fee simple estate. (sect 3).
question
Which of the following is a freehold estate? 1. Estate at will 2. Life estate 3. Estate for years 4. Leasehold
answer
2. Life estate (sect 3).
question
Jones conveys property to Smith as long as Smith maintains a church on the land. Jones has a 1. remainder. 2. possibility of reverter. 3. fee simple. 4. leasehold.
answer
2. possibility of reverter. (sect 3).
question
Ownership in severalty occurs when 1. two or more persons have identical interests in the same property concurrently. 2. husband and wife share the ownership of the same property. 3. two or more persons own the property in any form of title. 4. property is owned by one person.
answer
4. property is owned by one person. (sect 3).
question
Which of the following statements concerning a life estate is false? 1. All conveyances for a life estate have to be in writing to be enforceable. 2. A life estate can never extend beyond the life of the life tenant. 3. A life estate can be a freehold estate. 4. A person holding a life estate does not have fee title.
answer
2. A life estate can never extend beyond the life of the life tenant. (sect 3).
question
Jones, a life tenant, sells his estate to Smith. Jones dies. Title is in 1. Smith's name. 2. the remainderman. 3. Jones' heirs. 4. Smith's heirs.
answer
2. the remainderman. (sect 3).
question
In a deed in which the grantor, Paul Jenkins, states "to Angelo for his life, and then to Paul Jenkins" the grantor has what type of interest? 1. A life estate 2. A remainder 3. A reversion 4. A right of reentry
answer
3. A reversion (sect 3).
question
Hampton signed a lease to rent a seashore cottage from June 1, 2005 to August 30, 2005. Hampton had 1. a tenancy at will. 2. a tenancy at sufferance. 3. a month-to-month tenancy. 4. an estate for years.
answer
4. an estate for years. (sect 3).
question
A man had a one year lease on a residence which expired July 31, 2005. He stayed on after that date without the consent of the landlord and did not pay any rent. He now holds 1. an estate in remainder. 2. a tenancy at sufferance. 3. a month-to-month tenancy 4. an easement.
answer
2. a tenancy at sufferance. (sect 3).
question
If four persons hold title to real property as tenants in common, they 1. must each own a one quarter interest. 2. would be unable to determine which portion of the land is theirs. 3. would have the right of survivorship. 4. could not transfer their interest without the consent of the others.
answer
2. would be unable to determine which portion of the land is theirs. (sect 3).
question
David and Janet Rierson buy a home in Oregon. Although both of their names are specified in the deed, no mention is made in the deed concerning any preference for holding a title. This married couple would automatically hold the property as 1. tenants in common. 2. tenants by the entirety. 3. tenants in partnership. 4. joint tenants.
answer
2. tenants by the entirety. (sect 3).
question
An easement is 1. and estate in land. 2. an encumbrance, but not a lien. 3. a lien. 4. both the lien and an encumbrance.
answer
2. an encumbrance, but not a lien. (sect 3).
question
An easement appurtenant 1. may be terminated by the dominant tenement. 2. may be terminated by the servient tenement. 3. will be terminated if abandoned by the servient tenement. 4. cannot be terminated.
answer
1. may be terminated by the dominant tenement. (sect 3).
question
Which of the following could not be real property? 1. An easement 2. Mineral rights 3. An existing mortgage 4. A fixture
answer
3. An existing mortgage (sect 3).
question
An easement appurtenant is an interest in land I. which may be terminated at any time by the order of the land encumbered by the easement. II. which gives the holder of the easement use or enjoyment of another's land.
answer
2. II only (sect 3).
question
A license to cross a private property would I. expire upon the death of either party to the license. II. be revoked by sale of the property.
answer
3. Both I and II (sect 3).
question
Title VIII of the civil rights act of 1968, also known as the Federal Fair Housing Act, attempts to prohibit discrimination in I. the sale of housing. II. residential mortgage lending.
answer
3. Both I and II (sect 3).
question
Blockbusting occurs when 1. the broker uses racial fears to prompt people in a changing neighborhood to sell their homes. 2. a broker shows houses to prospective buyers only in certain areas. 3. one lending institution buys all the houses on a block. 4. a lending institution does not make loans in a certain part of the city.
answer
1. the broker uses racial fears to prompt people in a changing neighborhood to sell their homes (sect 3).
question
According to Oregon statute, to create a subdivision 1. means to divide land into two or three lots with a new street to make sure all lots are accessible. 2. means to divide land into a two or three lots, as long as no new street is created. 3. means to divide land into four or more lots within a calendar year. 4. depends on whether a new street is created.
answer
3. means to divide land into four or more lots within a calendar year. (sect 3).
question
Under the Oregon Subdivision and Series Partition Control Law I. the buyer has a three day right of rescission if he buys the lot for which a public report has been issued. II. there is a provision for the buyer to waive his rights under the law, if the buyer signs a written statement to that effect.
answer
1. I only (sect 3).
question
Condominium ownership is I. a type of space ownership. II. a form of fee simple ownership of real property.
answer
3. Both I and II (sect 3).
question
An acre contains 1. 26,650 square feet. 2. 34,780 square feet. 3. 43,560 square feet. 4. 54,670 square feet.
answer
3. 43,560 square feet. (sect 3).
question
How many acres are contained in the following description? Beginning at the SW corner of the NE 1/4 of section 26; thence North 1 mile to the NW corner of the SE 1/4 of section 23; thence Southwesterly to the SE corner of the NW 1/4 of section 27; thence East 1 mile to the point of beginning. 1. 80 acres 2. 160 acres 3. 260 acres 4. 320 acres
answer
4. 320 acres (sect 3).
question
If the owner of a condominium defaults on his mortgage, the owners of the remaining units 1. become subject to foreclosure. 2. must immediately institute a suit to quiet title. 3. must file an injunction against the defaulting owner. 4. are not affected by the defaulting owner's actions.
answer
4. are not affected by the defaulting owner's actions. (sect 3).
question
1. The right of eminent domain refers to 1. the right of every American citizen to own property. 2. an organization's right to condemn property pending an improvement that is for the good of the community. 3. an institution or individual acquiring land by grant from the government. 4. the government's right to acquire or authorize others to acquire title to property for public use.
answer
Correct answer: 4. the government's right to acquire or authorize others to acquire title to property for public use. (sect 3).
question
2. Real property includes I. appurtenances. II. rights that belong to the land. 1. I only 2. II only 3. Both I and II 4. Neither I nor II
answer
Correct answer: 3. Both I and II (sect 3).
question
3. The sudden tearing away or removal of land by action of water is 1. accretion. 2. erosion. 3. aversion. 4. avulsion.
answer
Correct answer: 4. avulsion. (sect 3).
question
4. Which of the following statements concerning the addition or subtraction of land is correct? I. Accretion is the gradual deposit of soil through natural causes. II. The sudden tearing away of land by action of water is called avulsion. III. Erosion is the gradual loss of soil due to current, tides, or winds. 1. I only 2. II only 3. II and III only 4. I, II and III
answer
Correct answer: 4. I, II and III (sect 3).
question
5. What does the term "improvements" means in a real estate transaction? 1. Everything except the land 2. Additions to property since the last sale 3. Fixtures and personal property 4. Streets, curbs, sidewalks, and utilities
answer
Correct answer: 1. Everything except the land (sect 3).
question
6. The owners "bundle of rights" to real property includes I. the air rights above his property. II. the right to harvest emblements of a tenant farmer. 1. I only 2. II only 3. Both I and II 4. Neither I nor II
answer
Correct answer: 1. I only (sect 3).
question
7. The transferring of title to real property to another is defined as 1. proration. 2. alienation. 3. prescription. 4. consideration.
answer
Correct answer: 2. alienation. (sect 3).
question
8. All of the following may properly be considered items of personal property EXCEPT 1. a portable electric space heater. 2. an installed gas hot water heater. 3. a television set connected to a cable outlet. 4. an electric dryer.
answer
Correct answer: 2. an installed gas hot water heater. (sect 3).
question
9. Rights in personal property are known as 1. estates. 2. common estates. 3. fee simple estates. 4. chattel interests.
answer
Correct answer: 4. chattel interests. (sect 3).
question
10. Permission to use property by the giving of an easement creates 1. a license. 2. a lien. 3. an encumbrance. 4. a prescription.
answer
Correct answer: 3. an encumbrance. (sect 3).
question
11. Which of the following is an encumbrance, but not a lien? 1. Mortgage 2. Deed restriction 3. Trust deed 4. Property taxes
answer
Correct answer: 2. Deed restriction (sect 3).
question
12. When a claim against a parcel of real estate may result from a pending lawsuit, a person examining the public records would look for a 1. forcible entry. 2. constructive notice. 3. caveat emptor notice. 4. lis pendens (Notice of Pendency)
answer
Correct answer: 4. lis pendens (Notice of Pendency) (sect 3).
question
13. A possessory right or ownership interest in real estate is called an 1. abstract of title. 2. estate. 3. ad valorem. 4. affidavit.
answer
Correct answer: 2. estate. (sect 3).
question
14. Which of the following is a Freehold estate? 1. Estate for years 2. Estate for life 3. Estate at will 4. Estate at sufferance
answer
Correct answer: 2. Estate for life (sect 3).
question
15. Lorraine Cruser owns a parcel of real property. She can change her fee simple title to less than a freehold estate by I. selling the mineral rights. II. a sale/leaseback arrangement. 1. I only 2. II only 3. Both I and II 4. Neither I nor II
answer
Correct answer: 2. II only (sect 3).
question
16. Which of the following would be used to enforce the condition that was created at the time the real property was conveyed? 1. Cease and desist order 2. Zoning Board of appeals 3. Reverter clause 4. Violation citation
answer
Correct answer: 3. Reverter clause (sect 3).
question
17. An estate in severalty is held by I. three or more persons. II. two persons. 1. I only 2. II only 3. Both I and II 4. Neither I nor II
answer
Correct answer: 4. Neither I nor II (sect 3).
question
18. Unless there exists a deed restriction to the contrary, the holder of a life estate may do all of the following to his holding except 1. sell it. 2. rented. 3. mortgage it. 4. devise it.
answer
Correct answer: 4. devise it. (sect 3).
question
19. The owner of a fee simple estate who conveys his real estate and reserves to himself a life estate in the entire property, grants to the grantee an estate called 1. homestead. 2. dower. 3. an incorporeal interest. 4. a remainder interest.
answer
Correct answer: 4. a remainder interest. (sect 3).
question
20. The right to future possession by the person creating a life estate is known as 1. alienation. 2. hypothecation. 3. reversion. 4. contingent.
answer
Correct answer: 3. reversion. (sect 3).
question
21. A lease on real property is generally considered to be 1. a property lien. 2. an estate for years. 3. an estate at sufferance. 4. a life estate.
answer
Correct answer: 2. an estate for years. (sect 3).
question
22. Smith leased a residence for a six-month term and upon expiration of the lease retained possession of the property without the consent of the landlord. Smith now holds an 1. estate for years. 2. estate at will. 3. estate from period to period. 4. estate at suffererance.
answer
Correct answer: 4. estate at suffererance. (sect 3).
question
23. A tenancy in common requires 1. husband and wife. 2. undivided interest. 3. equal interest. 4. an arrangement for possession.
answer
Correct answer: 2. undivided interest. (sect 3).
question
24. Mr. and Mrs. Allen Hughes buy a farm in Oregon, and no mention is made in the deed concerning any preference for holding the title. The Hughes couple will automatically hold a 1. tenants in common. 2. tenants by the entirety. 3. tenants in severalty. 4. tenants in common, with right of survivorship.
answer
Correct answer: 2. tenants by the entirety. (sect 3).
question
25. An owner who has a permanent right to cross over an adjoining owner's land has 1. an easement. 2. a license. 3. a party wall. 4. a riparian right.
answer
Correct answer: 1. an easement. (sect 3).
question
26. If I have a permanent right to cross your land to get to my house, my property has 1. a dominant tenement. 2. a servient tenement. 3. an easement in gross. 4. a license.
answer
Correct answer: 1. a dominant tenement. (sect 3).
question
27. An easement appurtenant to real property can be terminated by all of the following, EXCEPT 1. merger of both the servient and dominant parcels. 2. revocation by the servient owner. 3. prescription by the servient owner. 4. released by the dominant tenement owner.
answer
Correct answer: 2. revocation by the servient owner. (sect 3).
question
28. Bob owns a lot. He also owns a sewer easement over the property of his neighbor, Tom. This easement is appurtenant to Bob's lot. Bob sells his lot to Joe without specific mention of the easement in the deed. The easement 1. passes to Joe. 2. remains owned by Bob as an encumbered interest. 3. terminates unless it is a covenant running with the land. 4. reverts to Tom.
answer
Correct answer: 1. passes to Joe. (sect 3).
question
29. When one has permission to use land for some limited, specific purpose, but has no other rights, one has a 1. tenancy in common. 2. leasehold estate. 3. tenancy at suffererance. 4. license.
answer
Correct answer: 4. license. (sect 3).
question
30. Title VIII of the Civil Rights Act of 1968, also known as the Federal Fair Housing Act, prohibits discrimination in I. the sale of housing. II. the leasing of residential property. III. the leasing of commercial property. IV. residential mortgage lending. 1. I only 2. I and II only 3. I, II and IV 4. II, III and IV
answer
Correct answer: 3. I, II and IV (sect 3).
question
31. A broker is guilty of steering if I. he avoids showing white buyers property he has listed in a particular neighborhood. II. he shows Asian buyers only properties in neighborhoods dominated by Asian families. 1. I only 2. II only 3. Both I and II 4. Neither I nor II
answer
Correct answer: 3. Both I and II (sect 3).
question
32. The Oregon Subdivision Control Act is administered by the 1. Attorney General. 2. State Land Board. 3. Real Estate Commissioner. 4. Governor.
answer
Correct answer: 3. Real Estate Commissioner. (sect 3).
question
33. Which of the following statements concerning subdivision public reports is true? I. A licensee must give a copy of a public report to a purchaser only after the execution of a binding sales contract. II. A licensee may use portions of a public report without using the entire report in advertising of the subdivision. 1. I only 2. II only 3. Both I and II 4. Neither I nor II
answer
Correct answer: 4. Neither I nor II (sect 3).
question
34. Mr. Abel purchased a two-bedroom condominium. He now holds I. a freehold interest in his unit. II. a proprietary lease. 1. I only 2. II only 3. Both I and II 4. Neither I nor II
answer
Correct answer: 1. I only (sect 3).
question
35. A condominium is an estate in real property consisting of an undivided interest in common in a portion of the property, together with a separate complete ownership of space. The estate may be 1. fee simple only. 2. an estate for life only. 3. an estate for years only. 4. any of the above.
answer
Correct answer: 4. any of the above. (sect 3).
question
36. In a description of land based on the rectangular survey system, the SE 1/4 of the SE 1/4 of the SE 1/4 of section 1 contains 1. 10 acres. 2. 20 acres. 3. 30 acres. 4. 40 acres.
answer
Correct answer: 1. 10 acres. (sect 3).
question
37. A normal size section in the Government Rectangular Survey System contains 1. 160 acres. 2. 1 square mile. 3. 6 square miles. 4. 36 square miles.
answer
Correct answer: 2. 1 square mile (sect 3).
question
38. Real property taxes that are not paid are 1. general, involuntary liens. 2. general, voluntary liens. 3. specific, voluntary liens. 4. specific, involuntary liens.
answer
Correct answer: 4. specific, involuntary liens. (sect 3).
question
39. Under Oregon law, if a principal real estate broker establishes an independent contractor relationship with an associated real estate broker 1. the real estate broker is not required to have his personal transactions supervised by the principal broker. 2. the listings obtained by the real estate broker may be transferred if the real estate broker moves to another principal broker's office. 3. the principal broker must supervise the real estate broker's real estate activities so as to conform to the Oregon Real Estate License Law and administrative rules. 4. the principal broker is not responsible for reviewing the real estate broker's advertising.
answer
Correct answer: 3. the principal broker must supervise the real estate broker's real estate activities so as to conform to the Oregon Real Estate License Law and administrative rules. (sect 3).
question
40. Under Oregon law a real estate broker associated with a principal real estate broker may 1. employ a principal real estate broker. 2. supervise real estate brokers in a branch office. 3. supervise their own files. 4. None of the above.
answer
Correct answer: 4. None of the above. (sect 3).
Business Law
Civil Law
Equal Pay Act
Fair Housing Act
Fraud And Abuse Act
Legal Management
Tangible Personal Property
Chapter 28 Essentials of business law 9th edition – Flashcards 35 terms

Lesly Lloyd
35 terms
Preview
Chapter 28 Essentials of business law 9th edition – Flashcards
question
Intellectual property
answer
Personal property that includes knowledge, ways of doing things, and expression of ideas
question
Trade secrets
answer
Specialized knowledge associated with a particular business, including information gained during employment about such matters as manufacturing processes, practices, devices, customer lists, and other confidential information
question
Economic espionage act of 1996
answer
A statute makes the misappropriation or outright theft of trade secrets a federal crime.
question
Restrictive covenant
answer
An agreement in which the employee agrees not to work in similar employment within a certain geographic area or within a specified period of time.
question
Agreement not to complete
answer
An agreement in which the seller of a business agrees not to begin or operate a similar business within a certain geographic area or within a specified period of time.
question
Trademark
answer
Any word, name, symbol, or device or combination thereof adopted and used by a manufacturer or merchant to identify his or her goods and distinguish them from goods manufactured or sold by others
question
Trade dress
answer
A distinctive, nonfunctional feature that distinguishes a merchant's or manufacturer's foods or services from those of another
question
Domain name
answer
A unique identifier that serves as an addess for a web page
question
Cybersquating
answer
Registering or using another person's or company's domain name in bad faith for the purpose of earning a profit
question
Copyright
answer
A valid, government-granted protection given to creators of literary, creative, or artistic works such as books, magazines, music, dramatic works, maps, works of art, motion pictures, computer programs, computer games, and videos.
question
In order to receive copyright protection work must be????
answer
Original
question
In order to receive copyright protection work must be????
answer
creative
question
In order to receive copyright protection work must be???
answer
expressed in a tangible form
question
Infringement
answer
Copying another's literary, creative, or artistic works without permission
question
Fair use
answer
Limited copying allowed when the copyrighted material is copied without authorization for use in connection with criticism, news reporting, research, education, or parody.
question
The computer software act of 1980
answer
Defines a computer program as a "set of statements or instructions to be used directly or indirectly in a computer in order to bring about a certain act."
question
What make cybersquatting illegal
answer
The anti-cybersquatting consumer protection act of 1999
question
Substantial similarity test
answer
A test that is used to determine whether an ordinary reasonable observer comparing two works would have to conclude that the work being questioned was copied from the other
question
Patent
answer
A valid, government-granted protection awarded to inventors that gives the patent holder the exclusive right to manufacture, use, and sell the invention
question
Requirement for a patent to be issued
answer
The invention must be a device
question
Requirement for a patent to be issued
answer
The invention must be useful
question
Requirement for a patent to be issued
answer
The invention must be novel (or new)
question
Requirement for a patent to be issued
answer
The invention must be nonobvious
question
Design patents
answer
A patent awarded to individuals or business firms to protect distinctive patterns, figures, and shapes and to prevent unauthorized copying
question
To protect its domain name from cybersquatter, they need to do what????
answer
There was bad faith on the part of the cybersquatter
question
To protect its domain name from cybersquatter, they need to do what????
answer
The firm owns the trademark
question
To protect its domain name from cybersquatter, they need to do what????
answer
The trademark is distinctive
question
To protect its domain name from cybersquatter, they need to do what????
answer
The domain name being used by the cybersquatter is identical to (or confusingly close to) the trademarked name owned by the complaining party
question
TRUE
answer
If a computer program is highly specialized and not intended for wide distribution, it would likely be considered a trade secret
question
TRUE
answer
A computer program distributed to a limited number of users is usually not sold; rather, the producer of the program generally remains ownership and licenses the used of it.
question
TRUE
answer
When its trade secrets are made public, a firm loses the advantages it had while the secrets were undisclosed.
question
TRUE
answer
To protect its trade secrets, an employer or seller of a business may, through a restrictive covenant or an agreement not to compete, impose restrictions of secrecy on an employee or buyer of the business or forbid them from working in the same line of business or for a competing firm.
question
TRUE
answer
It is difficult to patent computer-related inventions because many of these are not devices; are ere curiosities; adapt other, similar programs; or are designed to do certain tasks electronically that have previously been done mechanically
question
TRUE
answer
Courts determined whether a person or business has violated the copyright of another's computer software through the use of the substantial similarity test.
question
TRUE
answer
The test used to determine whether an ordinary reasonable observer comparing two programs would have to conclude that the software being questioned was copied from the other
Equal Credit Opportunity Act
Fair Housing Act
Principles Of Marketing
Racial Discrimination In Housing
Real Estate Unit 17- property managers – Flashcards 15 terms

Ben Stevenson
15 terms
Preview
Real Estate Unit 17- property managers – Flashcards
question
Property management begins with a A) time commitment of the manager. B) commission understanding. C) marketing plan. D) management plan.
answer
d
question
All of the following are important functions of a property manager EXCEPT A) supervising the maintenance of the property. B) preparing the owner's income tax returns. C) meeting the functional requirements of the tenants. D) protecting the physical integrity of the property.
answer
b
question
Which type of insurance coverage insures an employer against MOST claims for job-related injuries? A) Consequential loss B) Casualty C) Workers' compensation D) Surety bond
answer
c
question
Adaptations of property specifications to suit tenant requirements are A) tax-exempt improvements. B) generally not a good idea. C) tenant improvements. D) prohibited by most nonresidential leases.
answer
c
question
The property manager's chief concern should be that the property A) exhibits the proper amount of the owner's pride of ownership. B) is managed to achieve the highest overall rate of return possible on the owner's investment. C) is seldom vacant because it is consistently rented at the lowest possible rents. D) manager's time is maximized in the management of the property.
answer
b
question
Which of the following would be considered a variable expense when a manager develops an operating budget? A) Utilities B) Basic operating costs C) Employee wages D) Building repairs
answer
d
question
The scope of a property manager's work depends on the terms of the A) escrow contract. B) tenant rules. C) management agreement. D) rental agreement.
answer
c
question
All of the following should be included in a management agreement EXCEPT A) restrictions regarding ages of children. B) a description of the property. C) the extent of the manager's authority. D) compensation.
answer
a
question
The Equal Credit Opportunity Act prohibits A) discrimination based on the sexual orientation of the prospective tenant. B) discrimination in applying credit-qualifying standards. C) setting maximum debt-to-income limitations. D) requiring a credit report from prospective renters.
answer
b
question
A management agreement is to a property manager as a(n) A) deed is to a buyer. B) assignment is to an assignee. C) listing agreement is to a broker. D) lease is to a tenant.
answer
c
question
In determining rental amounts, a property manager considers the economic principle of A) conformity. B) supply and demand. C) marginal contribution. D) balance.
answer
b
question
Because subsidized housing is involved in managing properties for the elderly, these property managers need to be familiar with A) elder abuse laws. B) nutrition. C) state and federal rules pertaining to eligibility requirements and income verification. D) health care providers.
answer
c
question
In MOST market areas, rents are determined by A) HUD. B) a tenants' union. C) the local apartment owners' association. D) supply and demand factors
answer
d
question
The manager's primary goal is to operate and maintain the physical property in such a way as to A) attract only higher-income tenants. B) earn the greatest commission from management activities. C) preserve and enhance the owner's capital investment. D) facilitate optimum time management
answer
c
question
Managers who monitor a portfolio of properties similar to a securities portfolio by analyzing the performance of the properties and making recommendations to the owners of the properties are called A) property analysts. B) asset specialists. C) portfolio specialists. D) asset managers.
answer
d