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RE STATE
| Question | Answer |
|---|---|
| What does the local planning agency have the authority to approve? | A subdivision plat map |
| What is it called when a DEVELOPER gives land to a government body? | Dedication |
| Which power authorizes the FREC to pass or revise rules? | Quasi-legislative |
| A characteristic of a group license is that | It may be held by a sales associate or a brokers associate |
| General partners in a brokerage partnership that are not qualified to perform the services of real estate must be? | Registered for identification purposes |
| What must be given to a seller who is about to enter into a fiduciary relationship with a brokerage firm? | Single agency notice |
| Multiple licenses only apply to | Brokers |
| Group licenses only apply to | Sales associates and brokers associates |
| License that can be obtained if the sales associate or broker associate works for one owner-developer with affiliated organizations which provide real estate services in different geographic areas | Group license |
| A broker can be issued additional licenses in two or more capacities by requesting a | Multiple license |
| What should a sales associate do if their employing broker instructs them not to show properties to people of a certain race? | Find a new employer |
| In which instance must the agency disclose forms developed by the state be used? | Residential sales |
| Which duty does a broker owe to a customer? | Disclose known facts affecting the value of residential property |
| A broker may NOT hold escrow deposits in | A mutual fund |
| A broker may hold escrow deposits in | A savings association, a commercial bank, a credit union |
| When there is a dispute over escrow funds, the procedures include four choices. Which choice involves a third person recommending a solution? | Mediation |
| Which step follows the investigation in the complaint process? | Probable cause determination |
| If a licensee does not dispute a citation, it has the same effect as a | Final order |
| What is the maximum criminal penalty that a court could impose for a second-degree misdemeanor? | $500 fine and/or 60 days of jail time |
| What punishment would FREC likely impose for a first offense against a broker found guilty of a minor violation? | Notice of noncompliance |
| For multiple claims against a licensee, what is the maximum reimbursement from the Florida real estate recovery fund? | $150,000 |
| How is the real estate recovery fund funded? | From licensing fees |
| Where must the appeals of FREC final orders be filed? | District of court appeals |
| What charge may be filed against a broker who fails to pay their sales associate? | Failure to account |
| The fair housing act of 1968 prohibits discrimination based upon: | Races, color, religion, sex, national origin, family status, or handicap |
| What law requires that buyers be given a good faith estimate of closing costs prior to closing? | RESPA |
| Telling homeowners that minority families are moving into their neighborhood in an attempt to get them to sell their home and move is referred to as | Blockbusting |
| According to the Florida residential landlord and tenant act, the landlord must | Inform tenant within 30 days of how the deposit is being held |
| What is the main purpose of regulation Z? | Requires lenders to disclose the true cost of credit to consumers |
| An owner of a piece of real estate has purchased the backyard materials to fence the backyard. What type of property is the fencing material? | Personal property |
| The four tests used by courts to determine real or personal property are? | (IRMA) intent of the parties, relationship of the parties, method of annexation, and adaptation of article |
| The purpose of homestead exemption is to protect the surviving spouse and children to exempt property from foreclosure for: | Debts other than direct debt and federal liens |
| What would the best bundle of rights with a timeshare include? | Interval ownership |
| The initial tax exemption for homestead is available only to owners that: | Claimed the property as their principal residence as of January 1 and filed by March 1 |
| How is the right to occupy a cooperative evidenced? | Proprietary lease |
| Which clause in a deed states that the grantor was in possession and has the right to sell the property? | Seisin |
| What is possession of the property that can be seen and heard | Actual notice |
| A deed must be: | Signed by the grantor and witnessed by two persons |
| What is the purpose of a title search? | To run a chain of title |
| The ownership of a property actually transfers from the grantor to the grantee when the deed is: | Delivered and accepted |
| What is title? | A bundle of ownership rights |
| Private restrictions are enforced by private citizens. What is the strongest control they have over property? | Deed restrictions |
| Which deed contains no warrants or promises? | Quitclaim deed |
| What are the ways in which a contract can be terminated? | (BRRLAP) Breach, renunciation, revocation, lapse of time, abandonment, and performance |
| An offer is terminated by the following: | (WILD CARD) Withdrawal, Insanity, Lapse of time, Death of either party, Counteroffer, Acceptance, Rejection, Destruction of the property |
| What does the statute of frauds require? | To be enforceable, a contract transferring an interest in real estate must be in writing |
| In states which operate under title theory, the borrower: | Transfers ownership to the mortgagee or third party until paid |
| What is the name for the legal document that pledges a property as security for a loan? | Mortgage |
| What is it called when a buyer buys a property and takes over responsibility on an existing loan? | Assumption of the mortgage |
| What type of loan uses both real and personal property as security? | Package mortgage |
| What remedies or available when a seller breaches a contract? | Either a suit for specific performance or the buyer gets deposit returned but not both |
| What type of mortgage is known as seller financing? | Purchase money mortgage |
| A characteristic of an amortized or level paying mortgage is: | That the early payments are mostly interest |
| What process is used by the government to take private land for public use? | Condemnation (eminent domain) |
| What term refers to the interest that is charged when banks borrow from the federal reserve? | Discount rate |
| The primary purpose of the federal home loan bank system is to provide support for: | Savings associations |
| What would the federal reserve do when it wants to increase the supply of loanable funds? | Decrease the reserve requirements |
| When is intermediation in financial institutions most likely to occur? | When supply of funds is increasing and the demand is decreasing |
| How would an escrow deposit typically be allocated between the parties at closing? | Credit to buyer |
| What may the lender request the court to grant when there is a foreclosure and the auction sale does not provide enough proceeds to pay the entire mortgage debt? | Deficiency judgement |
| What are the three categories of depreciation? | Physical deterioration, functional obsolescence, and external obsolescence |
| The present value of future cash flow is the basis for which appraisal technique? | Direct capitalization |
| How would a purchase money mortgage be allocated between the parties at closing? | Credit the buyer and debit the seller |
| What method can be used to depreciate residential real estate purchased after 1986? | 27.5 years straight line |
| What is the name for the annual income that an investment property could make with no vacancies or collection losses? | Potential gross income |
| What is a contract for deed or land contract? | A form of owner financing |
| What is required for a person who represents themselves as a business broker? | A real estate license |
| What term refers to the tangible and intangible resources of a business? | Assets |
| Which asset is the most difficult to set a dollar vale on for a business? | Goodwill |
| What are ad valorem taxes? | Real estate property taxes |
| When do property taxes in Florida become delinquent? | April 1 of the following year |
| Which law requires farmland near an urban area to be valued the same as more distant farmland for tax purposes? | Green belt law |
| Failure to pay property taxes will lead to the sale of tax certificates. In order to force the sale of the property, how many years must the investor wait? | 2 |
| What results from zoning laws? | Communities are divided into districts based on use |
| What is the membership composition of the value adjustment board? | 2 county commissioners, 1 school board member and 2 private citizens |
| Local planning agencies have the final authority for: | Subdivision plat approval, sign control, and site plan approval |
| What must a person do in order to qualify for the homestead tax exemption? | File for the exemption each year |
| If an owner felt that a zoning rule was causing an economic hardship, not of their own making, they may seek relief by requesting a: | Variance |
| What financial statement shows the status of a business as of a specific date? | Balance sheet |
| What action would cause an applicants request for licensure be denied without prejudice? | Omitting one or more answers to questions on the application |
| Which entity signs the certificates of the FREC meetings that reflect the actions of the Commission? | FREC chairperson or vice chairperson |
| An illegal advertisement that does not contain the registered or trade name of the broker | Blind ads |
| What are the essentials of a valid contract? | Lawful subject, offer and acceptance/meeting of the minds, consideration, and competent parties |
| If a broker is aware of a construction lien on a piece of property, what should they do? | Tell the buyer before going to contract |
| In a real estate transaction, what type of relationship can a buyer and seller expect to have? | An arms length relationship |
| What is a licensee with full representation to both parties in the same transaction referred to as? | Dual agent |
| What term refers to the misstatement, omission, or concealment of a factual matter? | Misrepresentation |
| When moving from one branch office to another, what must a broker do? | Apply for and obtain a new registration for the new branch and pay the proper fee |
| Unless exempt, performing a service of real estate for someone else for compensation in Florida without an active license is considered to be what criminal violation? | Felony of the third degree |
| Unless the is a reasonable benefit for the borrower, the Florida fair lending act prohibits a lender from refinancing the same borrow within how many months? | 18 |
| In the complaint process, if there is no dispute over material facts, how may the case be resolved? | An informal proceeding |
| A broker has shown by their actions that they are an immediate danger to the public. What can be done? | The secretary of the DBPR can issue a summary suspension |
| A broker has been found guilty of mail fraud by a court and sent to jail. The brokers license will: | Probably be revoked because of the conviction |
| Which court is the final court in the appeal process? | Florida supreme court |
| A violation of FS475 CAN NOT result in | A fine of $10,000 |
| If FREC imposed a fine and issued final order, how much longer does the licensee have to pay the fine? | 30 days |
| A broker who has been charged with a minor violation where no threat to the safety of the public exists, will probably have what action taken? | License suspension |
| What are the four escrow dispute settlement procedures ? | (MEAL) Mediation, escrow disbursement order, arbitration, and litigation |
| Postdated checks are considered to be: | Promissory notes and can be accepted as earnest money with the sellers approval |
| A licensee becomes a convicted felon serving a prison term. The Commission: | Could revoke the license |
| A broker is sued for misrepresentation. The court awards the buyer $100,000 in damages. What kind of penalty is this? | Civil |
| What is the maximum time the license can be suspended on the first offense? | 10 years |
| A licensee files a false affidavit to make a claim against a property. How is this criminal action classified? | Second degree misdemeanor |
| A seller refuses to accept an offer submitted by a broker on behalf of a buyer. The offer meets the terms of the listing contract. To what is the listing broker entitled? | 100% of the full commission |
| Mrs. Murphy is a struggling small investor who owns a boarding house and rents rooms to tenants. Which statement is correct? | She may refuse to rent to any tenant that she feels would be incompatible with existing boarders |
| A private club has a lodge in the mountains. The club refuses to rent rooms in the lodge to certain minority groups. Which statement applies? | Under the Fair Housing Act, it may restrict rentals to members of its own club |
| Which entity published regulation Z? | Board of governors of the federal reserve system |
| What would a developer do to help a development hold its value? | File subdivision restrictive covenants |
| What type of estate refers to the lessor’s interest in leased property? | An estate in reversion |
| What do homestead rights provide? | Protection from the negligence of a spouse |
| What type of interest in real property is created by a type of contractual agreement having all essential elements of a contract, plus a property description and a definite term of tenancy? | Leasehold |
| Which estate would not convey legal title? | Estate for years |
| What does an owners title insurance policy guarantee? | It guarantees against all defects and encumbrances to which no exception has been taken |
| What type of deed warrants title only against claims made by the grantor, their heirs, assignees, executors, administrators, or others who represent them? | Special warranty deed |
| What type of easement must be obtained when a utility company wants to put power lines poles through property? | In gross |
| A deed must be acknowledged (notarized) to: | To make it recordable |
| If an unrecorded deed is accidentally destroyed, who owns the property? | Grantee |
| Under the laws of eminent domain, for what does an individual have the right for reimbursement? | Fair market value |
| An easement is the legal right of use: | Or another’s property for a specific purpose |
| What clause in a deed names the parties, describes the property, shows legal consideration and provides words of conveyance? | The granting clause |
| Where do special assessment liens on property rank in priority of payment? | Ahead of private liens |
| The only legally necessary clause required in a deed | Premises/granting clause |
| Also known as the to-have-and-to-hold clause, specifies legal rights being conveyed. | Habendum clause |
| The clause used to reserve a right in the title, not the land, such as a remainder estate | Reddendum clause |
| The reversion of a property to the state if someone dies intestate and has no known heirs | Escheat |
| A legal principle under which an owner may lose title to another person who has taken control of the property | Adverse possession |
| A statutory system created by law that provides for the transfer of title to legal descendants upon the death of an individual who dread intestate | Descent and distribution |
| A document that provides for the transfer of title upon the death of an individual who died testate | Will |
| Estate where the owner has a complete bundle of rights, and is the simplest and most comprehensive estate in land | Fee simple estate |
| The 5 sticks in the bundle of rights are? | (DEEP C) Disposition, Enjoyment, Exclusion, Possession, Control |
| Anyone who owns real property has a: | Freehold estate |
| Estate with sole ownership of the entire bundle of rights where the owner may leave their interest in a will | Estate in severalty |
| The four ways the fee simple estate may be held: | Estate in severalty, tenancy in common, joint tenancy and tenancy by the entireties |
| The two freehold (has ownership) estates are? | Fee simple estate & life estate |
| The non-freehold (no ownership) estates are? | Tenancy at will, tenancy for years, and tenancy at sufferance |
| A fee estate held by two or more persons where each person has undivided interest in the whole property | Tenancy in common |
| A fee estate shared by two or more persons who must have equal and undivided interests | Joint tenancy |
| An estate for spouses only | Tenancy by the entireties |
| The four unities required to create a joint tenancy are: | (PITT) possession, interest, time, and title |
| A freehold estate created when an owner of a fee simple estate conveys ownership to another, but owner for the balance of the lifetime of the party to whom the property is conveyed. | Life estate |
| The non freehold estate with the tenant in lawful possession for a specified period of time | Tenancy for years |
| The non freehold estate that arises when a tenant occupies a landlords real estate in absence of any agreement | Tenancy at sufferance |
| Which businesses are allowed to register with the department to perform brokerage services? | Corporation for profit, general partnership, limited partnership, sole proprietorship, non for profit corporation |
| Which businesses are NOT allowed to register to broker real estate? | Business trust, cooperative association, corporation sole, joint venture |
| An artificial person created by law where the owners are issued shares of stock in the corporation and are known as stockholders | Corporation for profit |
| A corporation that is formed under florida statutes to engage in limited commercial business. Formed by a group of businesses that wish to market or promote a specific product | Cooperative association |
| Employees of this corporation may perform services of real estate for the corporation without processing a license, provided that they are pained only on a salary basis | Non-for-profit corporation |
| Formed under common law principles for religious purposes. Not required to file documents with the state. Can buy and sell real estate for its own use. | Corporation sole |
| Also known as a common law trust or Massachusetts trust, created by filing a declaration of trust with the Secretary of State. | Business trust |
| Not a true partnership, created when two or more parties, such as brokers, act or operate in a manner that deceives or misleads someone into believing that a partnership exists | Ostensible partnership |
| An item that was once personal property but has been installed or attached to the land or building in a permanent way that has caused it to become part of the real estate | Fixture |
| Articles of personal property that have been attached to real estate that is rented or leases by a tenant and used in the conduct or business. | Trade fixture |
| An unauthorized physical intrusion onto property owner by another such as a fence built over the property line is known as? | Encroachment |
| Money or anything of value that can be converted to money | Consideration |
| The elements of a valid and enforceable real estate sales contract are? | (COLIC) competent parties, offer and acceptance, lawful subject, in writing, consideration |
| Provides time limits during which parties are allowed to bring legal action to enforce their rights under a contract. | Statute of limitations |
| A contract where any terms or condition remains to be performed | Executory contract |
| A contract that is written, contains all the elements of a valid contract, and may be recorded in the public record. Enforceable under statute of frauds | Formal contract |
| An oral agreement or a partially written contract between the parties that may or may not contain all the elements of a valid contract and is not recorded in public records. Can be valid and legal but not enforceable under statue of frauds | Informal/patrol contract |
| The 3 basis remedies for a breach of contract are? | Suit for cancellation, suit for specific performance, and suit for damages |
| Federal law prohibits the use of lead-based paint subsequent to: | January 1, 1978 |
| The federal residential lead-based paint hazard reduction act of 1992, also known as title X, requires that? | A pamphlet prepared by the EPA be given to any party interested in buying or leasing properties built before January 1,1978 |
| A bilateral contract in which the property owner promises to pay a commission regardless of who sells the listed property | Exclusive right of sale listing |
| Bilateral contract in which the property owner promises to list the property with only one broker | Exclusive agency listing |
| Unilateral contract where the property owner promises to pay a commission if the broker finds a buyer willing to purchase the property at a price and at terms that are acceptable to the property owner | Open listing |
| Listings are terminated as a result of what? | Breach, renunciation. Revocation, lapse of time, abandonment, performance, destruction of property, death or insanity, bankruptcy |
| A right to buy a property during a specified period of time at a specified price | Option contract |
| Requirements for option contracts: | In writing, price and terms, length of time, legal description, consideration |
| Term used to describe the consideration given by a buyer to indicate serious intent to buy property? | Earnest money deposit |
| Who has the right to inspect a brokers escrow account records? | DBPR the department of business and professional regulation or its authorized representatives |
| What covenant in a deed assures the grantee that there are no claims or liens on the property other than those specifically listed on the deed? | Encumbrance clause |
| Which item creates a formal contract? | In written form |
| What do zoning laws regulate? | Type of use |
| What statement applies to a planned unit development (PUD) ? | It provides a higher number of dwellings and maximum utilization of open areas |
| What statement is correct regarding a lease agreement for 12 months or less? | It should be in writing to avoid misunderstanding |
| What title does a buyer have when they sign a sales contract or have purchased under contract for a deed? | Equitable title |
| What does the term “follow-up” refer to in the real estate industry? | Staying in touch with a customer after the sale |
| What item would be an intangible asset of a business? | Goodwill |
| What part of an amortized mortgage payment reduces the principal balance? | Amortization |
| The maximum loan permissible for a VA loan is determined by? | Individual lenders |
| What clause in a mortgage requires the lender to look to the mortgaged property only for satisfaction? | Exculpatory clause |
| A buyer takes over the sellers mortgage payments but does not assume liability. Which statement best describes this situation? | The buyer is purchasing subject to mortgage |
| The buyer relieves the deed, opinion of title and closing statement at closing but not the? | Mortgage |
| Who are the three parties in a trust deed? | Beneficiary, trust or, and trustee |
| Which loan can NOT be a first lien? | A second mortgage |
| What is the effect of positive leverage? | Increases the borrowers yield |
| What mortgage provides an interest-only mortgage? | Term mortgage |
| Which mortgage clause calls for the entire balance to be paid? | Acceleration clause |
| Which clause in a mortgage allows the borrower to borrow back up to the original loan amount? | Open end clause |
| Can mortgage loan originators make loans? | No |
| Which mortgage clause permits the mortgagee to have a third party appointed to collect income and manage the property until foreclosure proceeding have been accomplished? | Receivership clause |
| Which type of mortgage allows a homeowner, age 62 or older, to receive a lump sum or monthly advance based on the equity in their home? | Reverse mortgage |
| What happens when the federal reserve orders financial institutions to increase their reserves? | The supply of loanable funds is reduced |
| Which entity controls the U.S. monetary policy? | Federal reserve system |
| What are Freddie Mac and Fannie Mae responsible for? | Standardizing lending practices and forms |
| What type of lending institution is formed by private investment groups to purchase real estate for investment and to make short them construction and long term construction mortgage loans? | REIT |
| Does an estoppel certificate form a lien against the property? | No |
| What is the term used to refer to the process of arriving at a final estimate of value in appraising? | Reconciliation |
| What is “price?” | Amount actually paid in a real estate transaction |
| Which appraisal approach would usually be requested by insurance companies? | Cost-depreciation approach |
| What would be an investors motivation for deducting depreciation? | Maximizing cash flow |
| What is the best description of a township? | 6 miles square |
| How many townships are in a check? | 16 |
| After what period of time may a tax certificate holder request a tax deed? | 2 years, but not after 7 |
| What entity establishes the rates for the documentary stamps? | State of Florida |
| When a property owner does not agree with their tax assessment, what is the proper order for a review? | County tax assessor, value adjustment board, circuit court |
| Long term capital gains can exist when the property has been held for more than how many months? | 12 |
| You purchased two tax certificates at auctions. Three years later, what may you do? | Apply for a tax deed |
| When the county assesses property and collects taxes, what are they doing? | Levying taxes |
| What is the maximum interest rate on a tax certificate? | 18% |
| What is not a characteristic or real estate? | Homogeneous |
| Through what mechanism does the free enterprise system dispute goods and services in the marketplace? | The price system (market mechanism) |
| Building activity is related to the business cycle. When in the expansion phase of business cycle, what is the next phase? | Peak |
| What is not a factor of demand in residential real estate? | Cost |
| Which characteristic of an adjustable-rate mortgage limits any single adjustment amount, possible resulting in negative amortization? | Payment cap |
| How is an existing mortgage that is being retired at closing shown on a closing statement? | Debit to seller |
| The binder deposit shows on the sellers closing statement only under which condition | It is paid directly to the seller by the buyer |
| How are property taxes accounted for on a closing statement | Prorated between the buyer and seller |
| What would you expect to see on a broker reconciliation section of a closing statement? | Disbursements equal receipts |
| What is an entry on a brokers cash reconciliation statement? | Expenses of the buyer are shown as a disbursement |
| What items would typically appear as debits to the seller on the closing statement? | Assumed mortgage interest, taxes, and expenses |
| A broker held up a bank and escaped with a large amount of cash. What is the consequence if the broker is apprehended? | The broker is subject to discipline by the FREC |
| What statement is true with respect to limited partners in a limited partnership formed to broker real estate? | Limited partners are not allowed to perform management services |
| What statement is correct regarding a broker acting as a transaction broker? | The broker must treat broth parties with honesty and fairness |
| The DBPR may investigate matters it considers a violation of the license law if: | Any person has knowledge of the facts of the case |
| What is the expected result when the banks stock up their reserves? | Tight money market |
| The defendant must file an answer to an administrative complaint with in how many days? | 21 |
| Under what condition does the DBPR have the power to investigate complaints against unlicensed individuals? | Even if it is only indicated that the real estate license law is probably being violated |
| What is the maximum allowable payment from the real estate recovery fund as a result of one transaction? | $50,000 |
| For violating FS 475 the commission may discipline with all of the following penalties except | Impose a prison sentence |
| What action will occur when the FREC imposes a fine against a licensee and the individual is unable to pay the fine? | A civil action will be brought to recover and a judgement awarded |
| What is the FREC authorized to do? | Seek an injunction |
| Recommendations regarding changes in educational curriculum come under the powers of which entity? | FREC |
| What would be considered an arms-length transaction? | Mr. Black to Mrs. Jones (not related) |
| What statement is correct regarding a corporation sole? | It allows title to go to the successor to the clergy in place |
| Without specific authorization it is a violation for a sales associate to accept ___________ as a deposit. | Postdated check |
| How long may commissioners sit on the real estate commission? | Two consecutive four year terms |
| Under what condition may the FREC revoke a license without prejudice? | A license was issued by mistake |
| What type of contract is formed when a buyer calls an agent on the phone wanting to buy a certain property? | An unenforceable contract |
| To which entity must the FREC report criminal violations of FS475? | State attorney general |
| What is a closing statement? | Statement of settlement costs between the buyer and seller |
| Which covenant in a deed is a warrant by the grantor that they will sign any documents in the future that would be necessary to maintain quiet title? | Warrant of further assurance |
| What business structure holds title to land in its own name? | Partnership |
| The annual percentage rate (APR) doesn’t include: | Real estate taxes |
| What is a tax shelter? | A legal method of decreasing tax liability |
| How does the Sherman antitrust act relate to real estate brokerage? | The fixing of commission rates |
| A licensee who has been voluntarily inactive for 5 years wishes to become active. What must the licensee do? | Find an employer to file a change of status form |
| Real estate brokers usually represent customers as what type of agent? | Special agent |
| What method might the county use to enforce building codes? | Issuing certificates of occupancy |
| What provides “quiet enjoyment” on a deed? | A covenant |
| Which type of business relationships must be in writing? | Corporations and limited partnerships |
| What is not a factor of production in a free enterprise system? | Growth |
| A sales associate represents a buyer in a transaction and is asked to give an opinion about the title. What may the sales associate do? | Quote an opinion from a competent attorney |
| How’s does the Marketable Record Title to Real Property Act (MARTA) relate to curing defects in title? | Limits the period of search required to establish valid and marketable “root of title” to at least 30 years |
| Which is considered to be an interest in real property? | Easement |
| What term is used to refer to a lien imposed on a property for nonpayment of materials or labor to improve a property? | Constructions lien |
| What keeps a landowner in a key locational position from preventing the progress of the entire community? | Eminent domain |
| What is NOT a valid real estate sales contract requirement? | A substantial earnest money deposit |
| If the grantor is insolvent, which of the following deeds would be the best from they buyers point of view? | Any deed |
| Which type of lien may be retroactive to an earlier date, thus taking priority over other liens? | Construction lien |
| Florida law requires that brokers place escrow deposits into an escrow account. What else is required by the law regarding that account? | The broker be a signer on the account |
| What term is used to refer to damages that are specified in a contract? | Liquidated damages |
| How can defeats or clouds on a title be cleared? | A quitclaim deed |
| How would an owner show marketable title? | Title insurance |
| Under what authority are cities and counties allowed to enact zoning ordinances? | Police power |
| What is a title plant? | A system of records, collected and filed by legal descriptions |
| An oral lease, in excess of one year, may also be referred to as: | A tenancy at will |
| What happens with negative amortization? | The loan balance increases |
| Which entity may insure home loans made by approved lenders? | Federal housing administration |
| Once an offer is accepted and the escrow deposit is in the brokers account, the broker hold the deposit on behalf of which party or parties? | Both the buyer and the seller |
| Which form of escrow settlement procedure requires the parties to abide by an objective third party’s decision after a hearing? | Arbitration |
| What would never appear in a real estate sales contract? | Exculpatory clause |
| Why can’t a sales associate work for more than one broker or one owner developer at the same time? | A sales associate or broker associate is an agent of the broker or owner that they are working for |
| What business structure incorporates limited as well as unlimited liability? | Limited partnership |
| Which type of lease is typically used in commercial real estate where the tenant pays both rent and expenses? | Net lease |
| Two brokers sharing space in a manner whereby the public presumes the brokers are partners ay be engaged in what is referred to as a : | Quasi-partnership |
| To whom does a deed of trust convey title? | A third party |
| What must a sales associate do when they change employers? | Notify the department using a change of status form |
| What statement best describes a quitclaim deed? | It does not warrant the title |
| What business structure makes all principals personally responsible for any debts incurred in the names of the entity? | Partnership |
| What is a characteristic of a general partnership? | The partners agree to share in the profits and debts of the partnership |
| A letter that verifies the principal balance owed on the loan | Estoppel certificate |
| What are the criminal penalties of a first degree misdemeanor? | $1000 fine and/or 1 year in jail (rental list rules) |
| What are the criminal penalties of a third degree felony? | $5000 fine and/or 5 years in jail (operating without proper license) |
| What are the criminal penalties for a second degree misdemeanor? | $500 fine and/or 60 days in jail (least serious) |
| When written, a listing contract must contain: | Definite termination date, legal description, price and terms, no automatic renewal, and the seller gets a copy within 24 hours |
| After the protection period has expired, the broker is entitled to: | Nothing |
| A convenience store located in an area that has now been zoned for residential use only would be: | Nonconforming use |
| What could cause a fixture to be converted into personal property? | Severance (cutting if off/removing) |
| Which homeowners right can keep someone off of his/her property? | Exclusion |
| Any claim, lien, mortgage, lease, encroachment, easement or right of way, unpaid taxes, and so on, attached to and binding real property, which may title to be clouded and thus affect the property’s value | Encumbrance |
| What statement accurately describes an owners title insurance policy? | It guarantees against all defect and encumbrances not listed on the exception page |
| What are the four characteristics of value? | (DUST) Demand, Utility, Scarcity, and Transferability |
| What are the 2 voluntary alienation methods of acquiring title? | Will and deed |
| What are the 4 involuntary alienation methods of acquiring title? | Decent and distribution, eminent domain, escheat, and adverse possession |
| How would a property be transferred if the owner is declared mentally incompetent? | Committees deed |
| Which entity enforces deed restrictions? | Private owners |
| What is not classified as a private restriction on the ownership of real property? | Escheat |
| What are classified as superior liens? | Property tax, special assessment, and federal estate tax |
| What are classified as junior liens? | Mortgage, vendors, judgement, and federal income tax |
| What does an encumbrance affect? | Title |
| What are the 3 methods of legal description? | Metes and bounds (surveys method), government survey method, & plat method (lot and block) |
| The oldest and most accurate method of legal description, uses a compass, and has a POB point of beginning | Surveys method/metes and bounds |
| Which survey method should be used when there are recorded subdivisions? | The plat method |
| What is required for a valid mortgage? | Legal description, signed by the mortgagor (owner/buyer), and in writing. Does NOT need to be signed by the mortgagee (lender) |
| What does the buyer receive at closing? | A deed, an opinion of title, and a closing statement. NOT a mortgage |
| What is the function of a secondary lender as opposed to a primary lender? | Buys existing mortgages |
| What are the physical characteristics of real estate? | Immobility, heterogenous, indestructibility, and government controls |
| Factors of demand in residential real estate include: | Price, income, credit, population, and consumers But NOT cost |
| What would be an example of external obsolescence? | A zoning change in the area (outside of the property boundaries) |
| What best describes positive leverage? | Increases the borrowers yield |
Created by:
bhingle