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Real Estate Exam
First Practice Test
| Question | Answer |
|---|---|
| The main difference between a variance and a conditional use permit is that with a conditional use permit: | The change in use is restricted to a specific purpose |
| The maximum damages in a fair housing complaint brought in federal court are: | Explanation: Damages in a fair housing complaint heard in federal court (as opposed to in a HUD administrative hearing) are unlimited. |
| Bill owns a home that he purchased for $1 million. The town that Bill lives in assesses the properties in their town at 65% of their value. The millage rate for the town is $15 per 1000. How much does Bill owe annually for real estate taxes? | ($650,000 / 1,000 = 650 x $15 = $9,750). The annual tax bill is $9,750. |
| Which of the following types of real estate agency contracts allow for cancellation at any time by either party? | Explanation: In real estate, at-will contracts provide the most flexibility as they can be cancelled anytime by either party. |
| Under the ECOA, a lender could choose to lend based on: | Explanation: Under the ECOA, it is legal to use source of income (e.g. salary vs commission) as a factor when making a loan. All of the other answer choices would be illegal. |
| What potential challenges may a buyer face when purchasing a foreclosure property? | including the inability to evaluate the interior conditions visually, possible eviction process if still occupied, and difficulty with financing due to potentially low appraisal value or inhabitable conditions. |
| Superman finally passes away from old age in the year 3278. He has outlived all of his partners and heirs and did not leave a will. What will happen to Superman's property? | If a property owner dies without a will or heirs, their property transfers, or escheats, to the government. Since Superman died without an heir or a will, his property will go to the state in which he lives. |
| A bank selling a foreclosed property at auction is likely to use what sort of deed? | makes no promises about the quality of title (ownership) being conveyed. Banks typically use a quitclaim deed when selling a foreclosed property so that they do not have liability for title defects affecting the property. |
| Rory is leasing an apartment from Ben. With Ben's permission, Rory novates her lease, and re-lets the apartment to Martha. Martha later fails to pay the rent. Which statement is most correct about this situation? | Novation is the cancellation of a contract, and the replacement of that contract with a new one.Martha is therefore solely responsible for the unpaid rent, since Rory's original lease was cancelled. |
| A sale-leaseback typically provides what for the seller? | A sale-leaseback occurs when an owner sells their property to an investor, and simultaneously rents it back (often for a long term). It provides all of the benefits listed as answers. tax treatment, capital and relief from debt services |
| Which of the following liens would be a specific, involuntary, and statutory lien? | A municipal property tax lien would be a specific (associated with one property), involuntary (not willingly taken on), and statutory (put in place by law, rather than a court) lien. |
| Bob owns a house in a town with a booming population. In order to meet the demands of the residents, the town decides to build a new public school. Is the town legally able to force the sale of Bob's house? | This is legal, so long as Bob is paid fair market value for his home. The right of governments to force the sale of privately owned property if it is in the public interest is called eminent domain. |
| Bill owns a home with a jacuzzi tub installed in his back porch. Jones offers to purchase Bill's home, his offer is accepted, and they sign a purchase and sale contract. This P&S does not mention the jacuzzi. What may Bill do with it? | All real estate (property directly or indirectly attached to the land) is included in a real estate sale by default. Since Bill's jacuzzi is attached to his porch, it is indirectly attached to the land, and therefore is included in the sale. |
| Justine is buying a 2 family property and on Monday, The closing is scheduled for Friday. Based on TILA-RESPA Integrated Disclosure Forms, will Justine be able to close on Friday? | No, because the changes to the loan estimate form require a new 7 day waiting period |
| Leonard rents an apartment to Thomas. Thomas comes back to his apartment one day and finds Leonard using the laundry machine. Can Leonard enter Thomas' apartment and use the laundry machine? | When a landlord rents an apartment to a tenant and that landlord enters the apartment without good cause, it is considered to be trespassing, and is not allowed even if he owns the property. |
| is looking for a place to buy and finds a unit in a building that is perfect for him He puts in an offer for the asking price but is rejected because he is not able to prove that he is an artist. What kind of a property is this most likely to be? | Cooperatives are typically created to limit unit ownership in some legally permissible way, as the sale of coop shares must be approved by the coop board. Larry Bird is not an artist, and this coop appears to only be available to those who can prove |
| When asking a client pre qualifying questions before showing a home, it is best to refrain from asking: | Asking someone if they have children would be in violation of fair housing law under the protected class of familial status. |
| All actively licensed brokers must be bonded in the amount of: | Active New Hampshire brokers must be bonded for $25,000. |
| An option must be signed by the: | An option is a type of contract between an owner and a potential buyer or lessee to buy or lease in the future at specified terms. The owner granting the option is the grantor or optionor; the person receiving the option is the optionee. |
| Fannie Mae was founded by the U.S. government to: | secondary market loan buyer. one of three major entities on the secondary mortgage market, established by the government to encourage lenders to make borrower friendly loans to inject liquidity into the market, which makes loans more readily available. |
| The Supreme Court case Jones v. Alfred H. Mayer Co. established that: | Jones v. Alfred H. Mayer Co. established that racial discrimination is never permissible in the private or public sale or rental of real estate, regardless of any exemptions that might otherwise apply. |
| A seller wishes to net $450,000 from a sale. She has closing costs of $1,200, and is paying a broker's commission of 6%. What price should she sell for? | $450,000 + $1,200 = $451,200. Next, divide the seller's costs by the difference between 1 and the commission to find her sale price: $451,200 / 0.94 = $480,000 |
| . After saving for a couple of years, he decides to purchase a home. The house he is interested in is being listed for $250,000. If Joe decides to get an FHA loan, what is the lowest down payment Joe can make? | With an FHA loan, the lowest down payment a borrower can make is 3.5%. In this case, the lowest down payment Joe can make is $8750, which is 3.5% of $250,000. |
| Value is most determined by: | Ultimately, it is the buyer who determines value. Value is how much a willing and able buyer will pay and a willing and able seller will accept. Without a buyer's demand, the value that a seller desires could not be achieved. |
| If a town is calculating property taxes for a property, which value will they use? | Assessed value is also known as tax value. This is the value that towns and cities use to calculate property taxes for each home. |
| Barry purchases a property from Dany. As part of the purchase price, Barry assumes a $240,000 mortgage from Dany. At closing, which of the following adjustments would be made? | At closing the buyer would be credited $240,000 towards the purchase price, and the seller would be debited $240,000 towards the purchase price (since the buyer is "paying" $240,000 by assuming the loan). |
| Dustin and Rickie are neighbors. Rickie grants Dustin an easement recorded at the registry. Rickie sells his property who gets upset because he has been crossing over his property to get to the highway. Is Dustin able to continue to use the easement? | Explanation: An easement is a right of way across a neighboring property. An easement, once granted, runs with the land and will transfer over to the next owner of the property. |
| Tenancy by the entirety is distinct in that it provides for: | Tenancy by the entirety is a form of co-ownership permitted for married couples only. It is similar to a joint tenancy but also includes creditor protections, including a limitation on the forced sale of the property and an automatic homestead protection. |
| Sally makes an offer on a stunning beachfront property on Nantucket. Two days after signing the offer, the home is dragged into the ocean during a terrible storm. The next likely step is: | An offer can be terminated for a variety of reasons, one of them being that the object of the sale is destroyed. In this case, there isn't a house to buy, and therefore the offer would be terminated by both parties. |
| A plot of land located in Boston, Suffolk County, MA beginning at the intersection of L Street and E. Broadway, running north along E. Broadway 450 feet, east to E. 5th Street more or less, is an example of which type of land survey system? | Metes and bounds is a land survey that contains metes (distances) and bounds (directions) with monuments (markers) and benchmarks (permanent markers), and is the survey system that is described here. |
| Abigail lost her home in a fire. While rebuilding, she placed a manufactured home on the lot. She is allowed to live there: | The period of occupancy expires within 12 months or upon the issuance of a certificate of occupancy. A manufactured home placed on a lot for this purpose cannot attain the status of a vested nonconforming use. |
| If a seller is listing their home, but doesn't want to include the weeping willow tree in their front yard because it has sentimental value to them, what should they do? | Remove the tree and replace it with something else before listing the property |
| An appraiser would use the sales comparison approach for all of the following properties, except: | The historic schoolhouse is a unique property and does not likely have any comparable properties sold recently that would allow an appraiser to use the sales comparison approach. |
| What is the effect on the borrower's monthly loan payment if they opt to pay discount points up front? | When a borrower pays discount points up front, they are in essence "buying down" their loan's interest rate. This means they owe less in interest each month, hence reducing their overall monthly payment. |
| "The first person to call in with the answer to this question wins a free trip to Disney WorldJoe calls in immediately and says "Australia!" The DJ says "You win!" What kind of a contract is this? | A unilateral contract is a contract in which one party makes a promise to do something, while the other party completes the contract by performing. |
| The Doctrine of the Laches states that: | The Doctrine of Laches provides that an unreasonable delay is asserting one's rights (such as in filing a lawsuit) causes the loss of such rights; the person is estopped from asserting/enforcing their rights. |
| Wyatt built a car port on the front of his manufactured home ]. park owner is threatening to remove his unit from the park because the car port per the park rules.told to remove the structure or he will be forced to leave the park | The owner of a park has the right to remove any units from the park. But the housing cannot be removed if it is safe, sanitary, and in compliance with the aesthetic standards of the park. |
| A condo sale is set to close on October 25th. The seller has already paid their $350 per month condo fee and a $50 electric bill. What does the buyer owe the seller at closing, assuming a 365 day year and that the buyer owns the date of closing? | We add the $350 condo fee per month and the $50 electric bill = $400/monthly expenses, of which we need to refund 7 days' worth back to the seller. $400/31 days in the month = $12.90/day x 7 days = $90.32 |
| Why is it necessary for brokers to establish office policies and procedures for their agents? | Brokers are liable for their agents' actions. their responsibility to ensure that agents are well informed about the laws and regulations and always follow the rules. This is achieved by implementing office policies and procedures |
| In an option to purchase real estate, the optionee: | The optionee may choose to exercise the option or not; there is no obligation to exercise the option. |
| Sarah owns her historic 4 bedroom Victorian home and is looking for 2 new roommates to help her pay the rent. She prefers to rent only to single females, like herself. hires Rad Rentals to help her find a roommateCan Sarah select her tenant in this way? | Because Sarah hired a real estate brokerage to locate a tenant she may not select the tenant on the basis of sex. The property may not have any discriminatory language in it's advertisement so advertising "female only" would also not be permitted. |
| Rick planted corn on his property. He is now selling the land on which the corn was planted. What sort of property is the corn? | Chattel is an article of personal property; it is defined as being moveable, except in the cases of trade fixtures and emblements. and is therefore treated as chattel, despite being attached to the land. |
| How many feet are in a mile? | 1 mile = 5,280 feet. |
| Darnel is selling his house which has a septic tank. The septic tank passed inspection one year ago. What needs to be done at this point when transferring the house to the buyer? | To be in compliance with Title V, the septic system will need to pass inspection within two years of the sale of the property, or pass inspection within 6 months of the sale. |
| The grantee of a deed with restrictions receives what sort of estate? | A fee simple defeasible estate is ownership of real estate that can be lost. The violation of a deed restriction (which is a limitation on your property rights written into your deed) is one way that a property owner can lose ownership |
| What information can landlords gather during tenant screening? | The laws of tenant screening allows landlords to gather information such as credit report, tenant screening reports, criminal record information, court information, and rental history. |
| PITI payment stands for: | PITI payment, often associated with fully amortized loans, stands for principal (the debt), interest, property taxes and insurance. |
| Who would be exempt from the Fair Housing Act of 1968 and amendments? | Small landlords who own fewer than 3 single family homes are exempt from the Fair Housing Act and amendments. |
| Municipal master plans would likely be implemented using any of the following except for: | Escheat is the reversionary interest the government maintains in abandoned properties. It would not be used to implement a town master plan (the planned vision for a town or city). |
| When Patty moved into the manufactured housing park, the rules specifically stated no dogs. After keeping the puppy for several months, the park owner confirmed Patty had a dog. Since Patty is in violation of the pet rule, the park owner must: | If any pet rules are broken by a tenant, the park owner must provide 30 days’ notice of the violation and can charge a maximum fine of $10 per month for each violation. |
| Lou is a med school student who is currently doing his residency. He is interested in buying a million dollar house but he does not have the money to pay for such a loan. What kind of a loan could Lou get? | A graduated payment mortgage is a mortgage that is aimed at those who have predictably rising incomes. Initially the payments are low, but increase over time as their salary increases. |
| In New Hampshire, which of the following are considered limited common areas in a condominium? | In New Hampshire, shutters, awnings, window boxes, doorsteps and any other apparatus designed to serve a single unit, but which are located outside the boundaries of the unit, are considered a limited common area belonging to that unit exclusively. |
| Why may zoning ordinances be enacted? | The right of governments to enact zoning ordinances stems from the government's police power. Police power is the right of governments to regulate private activity if it is in the public interest for them to do so. |
| Two of the buyers do not, but one of the buyers tells the agent that they are purchasing with cash, witout providing proof of funds. refuses to show homes to the one buyer who is using a loan but not produced a preapproval letteragent risked their license | A real estate agent may use a pre-approval letter or proof of funds as qualifying criteria for a buyer, however, they must hold all buyers to the same standard. If they do not, their actions could be considered discriminatory. |
| A residential tenant may only be required to vacate upon receipt from the sheriff of a: | A residential tenant may only be required to vacate upon receipt from the sheriff of a Writ of Possession. |
| A listing contract containing a provision that gives a broker the right to advertise a property's availability to other brokers is a(n): | A multiple listing clause permits the listing broker to advertise the property to other brokers on the MLS. |
| A property line is listed as 12 rods and 2 links in the deed. How long is the property line? | A rod is 16 feet 6 inches, and a link is 7.92 inches. 12 rods and 2 links converted to feet is therefore 199 feet 3.83 inches, rounded up to 200 feet in answer choice A. |
| In New Hampshire, all USTs larger than how many gallons must be registered with the Department of Environmental Protection? | In New Hampshire, all USTs larger than 110 gallons must be registered with the Department of Environmental Protection. |
| Consent to designated agency or dual agency must be obtained within the: | Consent to designated agency or dual agency must also be obtained within the listing agreement [REA404.04]. |
| You are the listing agent and you are showing a property to a buyer. You know that a murder took place on the property. Which is true? | is a stigmatized property. The seller's agent (you, in this example) is not obligated to disclose the property stigma to a prospective buyer, and furthermore, should not volunteer the information because it may hurt the seller's ability to find a buyer. |
| The provisions of the Federal Fair Housing Act apply: | The Federal Fair Housing Act applies in all states. |
| How would a real estate agent determine a property's listing price? | A real estate agent is only permitted to create CMAs or BPOs. Only licensed appraisers can create appraisals or appraised value. The assessed value would be for town's to create tax value. |
| What is the term for restrictions, liens, or easements that might grant others a right to a property? | An encumbrance can be anything that interferes with the owner's rights; for example, a lien, like a mortgage, or an easement, like a shared driveway. |
| A broker is required to provide a 1099 independent contractor with | A broker is required to give a 1099 independent contractor with advertising because the agent has to put the brokerages/brand’s logo on all of their advertising, per MA Licensing Law there is no blind advertising. |
| Fred decides to buy a foreclosed property in a town with a highly rated school system. He finds out that the roof is leaking, the septic tank isn't working properly, and the water pipes have burst. These are examples of what? | aging, physical wear and tear, or deferred maintenance are examples of physical deterioration. This is a type of curable depreciation because the property owner could correct any issues from physical deterioration to improve the property's value. |
| In the context of a Comparative Market Analysis (CMA), what is meant by 'subject property'? | In a CMA, the 'subject property' refers to the property that the real estate agent is trying to approximate the market value for. |
| The N1/2 of the SW1/4 section would be how many acres? | One quarter in a rectangular survey is 160 acres, so 1/2 of a quarter is 80 acres. |
| a fully amortized loan in the amount of $230,000. She can choose a loan for 15 years at 7% or for 30 years at 5%. To the nearest dollar, what is the difference between the monthly payments for these two loans? (BE SURE TO USE THE AMORTIZATION TABLE.) | (8.99 * 230,000 /1,000) – (5.37 * 230,000 /1,000) = 2067.70 – 1235.10 = $832.60 |
| The overstatement of the quality of a good offered for sale is known as: | Puffing is an overstatement of the quality of a good offered for sale. It can occur when a real estate agent gets too creative with their description of a listing, and is prohibited in most states. |
| GRM, Cap Rate and Cash on Cash Return all have what in common? | all approaches to determine investment value. GRM does not include operating expenses and is an outdated way of determining investment value. Cash on Cash return looks at the cash investment into a property and not simply at the property's total value. |
| Who would have a reverse annuity mortgage? | Reverse annuity mortgages are mortgages for homeowners aged 62 or over. They permit these homeowners to receive payments against the value of their home. These payments are most often used to fund a portion of the homeowner's retirement. |
| Under an installment sales contract, the buyer is said to hold: | Equitable title is a future right to acquire legal title (ownership) of real estatebuyer hasright to acquire legal title if make all of their payments Hence, the buyer has equitable title to the property (the right to own the property in the future). |
| REMICs are financial entities that invest in: | Real Estate Mortgage Investment Conduits, or REMICs, invest in portfolios of mortgages. |
| What potential risk can arise out of using electronic signatures for real estate transactions? | These risks can include fraud, forgery, or tampering, and challenge the validity of the signatures especially in cross-border transactions or where acceptance of e-signatures is limited. |
| An easement granted in writing to someone who does not own an adjacent property, and that automatically expires upon that individual's passing, is a(n): | An easement for an individual is an easement in gross. It can't be passed on, and unlike some easements, the right does not pass with ownership of the land. It is instead granted to the individual. |
| Brody grants his Martha's Vineyard mansion to his friend, Quint. Quint passes away in a boating accident involving the local wildlife, and Brody becomes the owner of the Martha's Vineyard mansion again. This is an example of which type of life estate? | When the life estate passed back to the original grantor upon the life tenant or grantee's death, this is an example of life estate in reversion. |
| During month 9 of a 12 month lease that contains an option to purchase, the lease is: | A lease is bilateral (both parties make a promise) and executory (not yet completed). Options may be unilateral, but the lease is still bilateral even if it contains an option. |
| Tom, a real estate developer, owns 5 acres of land. He wishes to build as many homes as possible on the land. The local zoning law requires a minimum lot size of 75' by 75'. How many homes can Tom build, given the minimum lot size? | An acre is 43,560 square feet, so Tom has 5 x 43,560 = 217,800 buildable square feet. Each lot he builds will be 75 x 75 = 5,625 square feet. He can therefore build 217,800 / 5,625 = 38 lots (rounded down). |
| On the day of the closing, the buyer decides not to go through with the transaction. Steve decides to keep the deposit as liquidated damages. Lisa's commission, as stated in the listing agreement, is $6,000. How much does Steve owe Lisa? | 1) is ready, willing and able to purchase the property on the seller's terms; 2) executes a contract to purchase the property; and 3) closes on the transaction. no closing no comision |
| What is the capitalization rate for a property with a net operating income of $20,000 and a current market value of $500,000? | Cap rate is determined by dividing net operating income (NOI) by market value. In this case, $20,000 NOI / $500,000 value = 4% cap rate. |
| Regina's client believes that the property he is selling is haunted by a specter. Regina must: | Paranormal activity is an example of a property stigma. Sellers' agents should not affirmatively disclose this information, but they must truthfully respond to any buyers' questions about it. |
| The Clean Water Act regulates: | The Clean Water Act, or CWA, regulates the pollution of navigable waterways. |
| Jon is behind on his property tax payments, mortgage payments, credit card payments, and has yet to pay his contractor for the work that was done for his kitchen renovation. Which of these will have first priority to collect | Property taxes are a priority lien, and therefore would have the first right to foreclose and collect on what is owed for the property taxes. |
| Tom purchases an investment property, puts work into it, and receives a profit of 44% over his total investment. He did $27,000 in renovations on the property, and sold for $303,000. What was the purchase price? | We can therefore calculate his total investment as $303,000 / 1.44 = $210,416.67. This investment, less the costs of renovations, is his purchase price: $210,416.67 - $27,000 = $183,416.67 (rounded to $183,417 in the answer). |
| A property owner wishes to build a six story office building in an area that limits building heights to four stories. What must they file for in order to build the six story building? | A variance is special permission to do something that zoning prohibits. In this example, the property owner would need a variance to build their six story building. |
| The main difference between appraisers and assessors is: | Appraisers give an estimate of value typically for a bank, while assessors create a tax value for a town |
| If you are meeting a home buyer to discuss their search for a new home, all of the following are acceptable questions except: | The question "where are you from?" would be in violation of fair housing because you could be making someone feel uncomfortable about their national origin by asking that type of question. |
| Residential properties are depreciated on a ____ year schedule. | Residential properties are depreciated on a 27.5 year schedule. |
| A real estate agent broke an expensive Tiffany lamp at an open house for one of the brokerage's listings. Which type of insurance would cover this incident? | General liability insurance covers personal property or property damage that might occur on showings or open houses. |
| Abe owns a large piece of land in a rural area. His neighbor, Bill, has been crossing over a small portion of Abe's property to access a nearby road on a regular basis for over 25 years. What kind of an easement has Bill established? | An easement by prescription is an easement acquired by the Open, Notorious, Continuous, Hostile and Adverse (ONCHA) use of a right of way for more than 20 years. |
| Any structure directly attached to land is known as a(n): | Any structure directly (or indirectly) attached to the land is called an improvement. |
| Trade fixtures qualify as: | Trade fixtures (property used for a business) are an exception to the rules about personal and real property. They are treated as personal property. even though they are permanently attached to real estate. |
| The alienation clause in a mortgage prevents: | The sale of the property subject to a mortgage |
| How many acres is the NW & SW 1/4's of the SW 1/4 of section 19 in a township? | Section 19 is a total of 640 acres, now we need to find the acreage for SW 1/4 (640 / 4 = 160), now we need to find the acreage of the NW & SW 1/4's of that portion (160 / 4 = 40), the Now we need to add NW & SW 1/4's acreage together 40 + 40 = 80 acres |
| Cooperative owners own: | The people living in the building own shares in the corporation, which gives them a proprietary lease to their unit. They do not own their unit, only their shares in the corporation. |
| What advertisement would not violate federal fair housing laws: | Modern bachelor pad with city views, close to restaurants |
| 7 protected classes | The protected classes include the 7 federally protected classes, race, color, religion, national origin, sex (including gender identity, sexual orientation, and sexual harassment in housing), disability (mental or physical), and familial status. |
| Ginny and Jamie want to add a third level to their current home. Which of the following limitations that apply to their home would ultimately decide whether or not they could move forward with this addition? | When it comes to public restrictions, such as zoning vs private restrictions, such as covenants, the more restrictive rule wins. In this case, the HOA rule would be the most restrictive and |
| How many acres are in Section 16 of Township 7, north of the 3rd parallel, range line 7 west of the 3rd principal meridian? | Every section in a township is 1 mile by 1 mile or 640 acres. |
| The fair housing familial status exemptions for 62 and over communities comes from the: | The Housing for Older Persons Act of 1995 allows exemptions for 62 and over and retirement communities. |
| All of the following details of a real estate sale must be reported to the IRS except for: | The financial details of the transaction must be reported to the IRS on a form 1099-S (the seller's name, their social security number, the sales price, etc.). The appraised value of the property |
| Which of the following would you use to prove ownership of your home to someone? | A deed is a receipt for real estate and therefore the best one to use to show proof of ownership. Title is the concept of ownership, but not a tangible thing. |
| Plottage is: | Plottage is the increase in property value achieved by combining many small parcels of land (assemblage) into one large parcel. |
| The right of government to enact zoning ordinances stems from its: | Police power is the right of government to enact laws regulating private activities for the public good. The right to enact zoning ordinances stems from the government's police power. |
| Which notice discloses the relationship of the agent with the prospective purchaser or seller and is provided at the first business meeting? | Real estate agents must provide real estate consumers with the mandatory Brokerage Relationship Disclosure Form adopted by the Commission. |
| Which court case changed the rules governing air rights? | The court case United States vs. Causby changed the rules governing air rights from the property owner owning all the way "to the heavens" to just the space 80ft to 500ft above the tallest improvement on their property. |
| When it comes to property rights on Jamie's single family home, can the right to control and exclude be transferred to Layla, while Jamie retains the other bundles or rights, such as disposition? | A property owner can transfer one or more of their bundle of rights, while still retaining some. There is no rule as to how many or few they can transfer. Giving up one or more does not mean giving up full ownership of the property necessarily. |
| All of the following are examples of material facts EXCEPT: | A material fact (or material defect) is something that would objectively impact a buyer's or seller's decision. The design of the property is subjective, and therefore is not a material fact that must be disclosed |
| a number of lots sized 125’ x 125 The site she is considering is 3 acres in size. Zoning will also require that she set aside 50,000 square feet for access ways. If she sells each lot for $100,000, how much will she make? | Tammy has to set aside 50,000 square feet for roads, so 130,680 - 50,000 = 80,680 buildable square feet of land. Each lot Tammy will build is 125 by 125 feet, so each lot is 125 x 125 = 15,625sft. 80,680 / 15,625 = 5 lots x $100,000 = $500,000. |
| Jason presented an offer to Amanda to purchase her condo through a Purchase and Sales Contract. The contract is considered in what until it is signed by all parties? | All offers in New Hampshire are typically presented on a Purchase and Sales Contract until accepted and/or executed by all parties and are considered in “offer status” until accepted (signed) by all parties. |
| Unit deeds transfer: | Unit deeds are used to transfer the ownership of condominium units. |
| Mortgagee protection under a title insurance policy would cover which of the following? | Mortgagee protection means lender protection. The lender's title insurance policy covers an outstanding loan balance in the event of any title issues. |
| June runs Mansion Realty and hires licensees to help buyers and sellers. James is Jeanie's assistant who is unlicensed and answers phones and manages her schedule. What is Jeanie's agent relationship to June? | At Mansion Realty, June is the special agent and Jeanie is her agent, so Jeanie is the subagent. |
| The most common appraisal method used for a church is the: | The cost approach uses construction costs to determine property value. It is used for buildings and improvements that lack adequate sales comparison data because they are either unique (such as a church) or brand new. |
| Which of the following financing options allows borrowers to include renovation costs in the purchase or refinance of a property? | Rehab loans are a type of financing that allows borrowers to include renovation costs in their loan for the purchase or refinance of a property. |
| Sarah discovers that there are rules that state she can never change the color of the front door and that her driveway must always be covered in light colored pebbles. This is an example of what type of restriction? | A covenant is a property right restriction that is written by the developer of a subdivision to keep a certain aesthetic or style to the community. Covenants are private restrictions that run with the land and are enforced by a home owner's association |
| What percentage of a natural woodland buffer must be maintained in an unaltered state? | At least 25% of the area must be maintained in an unaltered state (vegetation is allowed to grow without cutting, limbing, trimming, pruning, mowing except when needed for plant health and renewal) |
| When a lake dries up, it is an example of: | Reliction is the addition of land by the sudden retreat of water. When a lake dries up, the water retreats, which adds much more land to the beach. |
| Peter Pauper passed away intestate, but unbeknownst to his relatives, he had more than a million dollars in his savings account and a waterfront condo on Martha's Vineyard. What will happen to the property of Peter Pauper? | If someone dies intestate, they pass away without a will. A court-appointed will administer estate by following the laws of descent and distribution. If the deceased dies intestate and has no heirs, then the property real or personal escheat to the state. |
| Which of the following acts as an insurer? | The Federal Housing Administration (FHA) is a government program that insures lenders that make loans with more than 80% loan-to-value ratio (LTV) for homebuyers. These loans are meant to make homeownership more easily achievable for American homebuyers. |
| A spouse wants to sue for their dower rights. The deceased did not leave heirs. What are their dower rights? | Dower rights entitle a surviving spouse up to a 1/3 interest in their deceased spouse's real estate, in lieu of what was left to them in the will. |
| When you sign a contract, it is: | When you sign, the contract is accepted. |
| During the term of the contract, | it is executory. |
| When the contract is completed, | it is executed. |
| Antonio is a newly licensed agent and begins making phone calls to fsbo owners that he finds on www.forsalebyowner.com. Before calling any owners, Antonio should be sure that he does which of the following? | Look up the FTC Do Not Call Registry |
| Fines for calling a number on this list are | $50,120 per call |
| You can only call FSBO if | you have a buyer that wants to see a specific property. |
| A facebook advertisement for a members-only studio residence at a private men's club lists, "only suitable for a single gentleman." Is this discriminatory advertising? | Yes, because the club is advertising discrimination against women, and sex is a protected class under fair housing law |
| A private club may discriminate against women under the fair housing law exemption for private clubs, but | it may not advertise that discrimination |
| Private clubs are exempt from fair housing law (except race) when they offer housing only to their members for non commercial use. However, | in this case, the club made a public facebook advertisement and therefore, they lose their ability to be exempt from fair housing law, and the advertisement is discriminatory. |
| A homeowner's insurance underwriter would use which of the following when underwriting a property? | The Comprehensive Loss Underwriting Exchange records past consumer claims, and is used in homeowner's insurance underwriting. |
| Tracy is a seller's agent. If asked, can he recommend a home inspector? | Agents representing the seller may recommend specific home inspectors. It is best practice to offer more than one! |
| Who has the discretion to cancel a buyer's contract in a real estate transaction? | In a real estate transaction, the agreement is technically between the client and the broker, not the salesperson. Therefore, it's up to the broker's discretion to cancel the contract. |
| This emphasizes that a real estate salesperson works on behalf of their broker, and the broker is legally | and the broker is legally the agent to the principal. |
| Your ownership in a navigable waterway adjoining your property extends to: | Property adjoining a navigable river has rights to the edge (the "accretion line") of the water. |
| The northeasternmost section in a township is what number section? | The northeastern section in a township is always section 1. |
| A seller is selling a property built prior to 1978 to a couple with a 4 year old child. Which is true? | The seller must give the buyers the Property Transfer Lead Paint Notification |
| What is the shortest distance between section 1 and section 36 in the same township? | Section 36 is on the southeastern most section of a township map, directly below section 1, in a government rectangular survey. Since each section is 1 mile, and a township is 6 miles by 6 miles, section 36 begins 4 miles below the end of section 1. |
| Tom's house is foreclosed on by First Bank, the holder of the first mortgage for $100,000. Tom also has a second mortgage with Second Bank for $5,000. His home sells at auction for $67,000. How much does Second Bank receive from the sale? | Mortgages are paid in order of the seniority. By default, the first mortgage is the most senior, and is paid first in the event of a foreclosure (hence "first" mortgage). Because the first mortgagee was not completely paid in the foreclosure auction, ther |
| A lender has a variety of loan products with low interest rates, yet encourages a borrower to use a financing option with an interest rate of 35%. This is an example of: | Usury is when someone charges an illegally high rate of interest on a loan. |
| If two people are married, they can choose to co own a property as all of the following, except: | Tenancy at will is a type of lease term and not co-ownership. |
| An example of an involuntary lien is a(n): | A mechanic's lien is a monetary claim against a property for work done on real property that has not paid for. It is a protection for contractors who are owed money, and is involuntary (not willingly taken on by the property owner). |
| all own competing real estate offices in Las Vegas. The four of them come to an agreement to set the commission percent at an exorbitant 10% and to split up the area into sections, where they would each only work in their own section. Can they do this? | The Sherman Anti-Trust Act is a federal law which prohibits anticompetitive activities, such as price fixing and divisions of a market. making agreements to set a standard commission rate and to divide market illegal under the Sherman Anti-Trust Act. |
| All of the following must always be in writing except: | While it is best practice for a will to be in writing, the other options must be in writing. If a will is nuncapative or verbal, it is valid, though likely unenforceable depending on state law. |
| Which of the following verbal contracts would be enforceable in a court of law? | A listing contract, such as an open listing agreement, may be oral; however, it is best to put a listing contract in writing. Most real estate contracts must be in writing pursuant to the Statute of Frauds. An offer is not an agreement. |
| As a real estate agent, how should you handle a situation where you are representing multiple buyers interested in the same property? | Transparency, effective communication, and ethical conduct are essential when dealing with multiple offers. Informing the interested buyers about the situation and guiding them on how to handle it ensures transparency and builds trust. |
| Real estate contracts must be made in writing per | the Statute of Frauds (the law that requires real estate contracts to be in writing) |
| Which may be verbal? | One exception to this rule is a tenancy at will - any time someone makes a verbal agreement to lease a property it is a tenancy at will, and verbal tenancies at will are legal and enforceable. |
| Which best describes the relationship between broker and client? | fiduciary ; Real estate agents (both brokers and salespersons) owe fiduciary obligations (obligations of trust) to their clients. Remember the acronym OLD CAR for the specific obligations. |
| A property that was once an office building is now a public school. This was likely possible because of: | Eminent domain is the right of government to take property when it is in the public interest (such as taking an office building to be used as a public school). |
| If an investor uses an economic life of 27.5 years when writing off depreciation on their yearly tax return, which method is being used to calculate this? | The straight line method calculates depreciation by using an economic life given by the IRS to calculate an annual loss in the property's value. |
| What is the process by which the government uses its police power of eminent domain? | The government condemns land in an eminent domain taking, pays its owner fair market value, and takes ownership of it. Condemnation is therefore the legal process by which the government takes the land. |
| Unities of time, title, interest, and possession would be necessary for: | The four unities of time, interest, title, and possession are features of joint tenancy. |
| Avulsion is the: | Avulsion is the sudden removal of land from one property, and the addition of that land to another property, by the action of water. It sometimes happens to beachfront properties during storms. |
| Properties that are exempt from paying property taxes in New Hampshire include all of the following except: | Private tutoring centers |
| What is not available to the Federal Reserve System in controlling the money supply? | Its powers and authorities have expanded over time, but the three most relevant relate to the discount rate, reserve requirement, and FOMC. Depreciation is a tax concern controlled by the IRS, not the Federal Reserve. |
| The Federal Reserve was established with the goals of | of maximizing employment, stabilizing prices, and moderating interest rates |
| Franklin is looking to buy an investment property. He is seeking a GRM of 153. If a property is priced at $453,000, how much should he charge for rent in order to hit his target? | The Gross Rent Multiplier (GRM) is how many months of rent it takes for a property to pay for itself. To calculate the rent using the GRM, divide the property value by the GRM: $453,000 / 153 = $2,960.78 monthly rent |
| Real property can become personal property by which process? | The act of severance makes real property become personal property; an example is digging up a tree. |
| What would NOT be included when calculating gross living area (GLA)? | Areas below grade (below the ground) are not included as gross living area, even if they are finished, so the basement would not be counted. Gross living area is living space that is above-grade, finished, and heated. |
| An amortization schedule longer than the payment schedule is indicative of what sort of financing arrangement? | A balloon loan where the amortization schedule (the schedule by regular payments would fully pay off the loan) is longer than the payment schedule a "balloon payment," which is a large payment at the end of the loan that discharges any unamortized debt. |
| Which of the following is always covered under federal fair housing law no matter what exemptions someone might have? | Race is always covered under federal fair housing law, without exemption. No one can use any type of exemptions when it comes to the protected class of race. |
| Are life estates inheritable? | Life estates are NOT inheritable by definition; they last only for the term of the grantee's life, and no longer, and thus cannot be left in a will. |
| The NH Real Estate Commission is made up of all of the following, EXCEPT: | three laay people. The governor appoints and the Executive Council approves two licensed real estate brokers, one licensed real estate salesperson, one lawyer, and one member of the public to the Commission. |
| Plottage is: | Plottage is the increase in property value achieved by combining many small parcels of land (assemblage) into one large parcel. |
| What is NOT a feature of the USDA Rural Development Section 504 Repair Program? | The USDA Rural Development Section 504 Repair Program does not finance the purchase of new properties. It focuses on assisting low-income homeowners with home repairs and improvements. |
| Tom owns a property subject to a life estate. When he passes away, ownership will transfer to Tim, who was named in the original deed by Tina, the grantor. Tim is the: | A remainderman is a person who inherits or is entitled to inherit property held as a life estate when the person whose life determines the duration of the life estate passes away. |
| If the capitalization rate increases, the value: | The capitalization rate is equal to net operating income (NOI) divided by market value. |
| Blockbusting causes: | Blockbusting causes panic peddling (also known as panic selling), homeowners quickly sell their homes for fear of a drop in home values due to the entry of a protected class into their neighborhood. It is unlawful under the Fair Housing Act amendments. |
| Principal Meridians are most similar to: | Principal meridians run north to south, similar to the way lines of longitude run. Lines of longitude run from the north to the south pole. |
| Nick’s property is surrounded on all sides by other properties. He might be granted what by a court of law? | A court may grant an easement by necessity if a property owner cannot legally access their property ("landlocked land") so that the owner can access their land. |
| A completed Site Assessment Study form is transferred from the seller to the buyer and becomes part of the: | The completed Site Assessment Study form is transferred from the seller to the buyer and becomes part of the purchase and sales agreement. |
| Who would have a reverse annuity mortgage? | Reverse annuity mortgages are mortgages for homeowners aged 62 or over. They permit these homeowners to receive payments against the value of their home. These payments are most often used to fund a portion of the homeowner's retirement. |
| Landlords cannot terminate a tenancy for nonpayment if | (1) the tenant was forced to take over the landlord’s utility payments in order to prevent disruption, (2) the amount of rent is less than the amount the tenant hadto maintain utility services, tenant has receipts from the utility companyproof of payment. |
| Ron wants to net $200,000 after paying Donna, his Realtor a 6% commission. What price should they sell for? | (Net sales price + costs)/ (1-commission% = Net sales price) $200,000/ .94 = $212,765.95 |
| Bernard has no intention of developing the land he owns with his brother. The twelve acres. Are Bernard and his brother required to submit plans and specifications for a sewage disposal systems to the state? | If there is no intention to develop the land, plans and specifications for sewage disposal systems are not required for subdivisions of tracts of land 5 or more acres in area. |
| A signed P&S contract contains a home sale contigency clause and a severability clause. The buyers agree to void the home sale contingency clause after the contract because it is not legal in the state the property is located in. The P&S contract is now: | Under the severability clause, one portion of a contract may be voided, while leaving the rest of the contract intact. The contract is therefore still valid (even though the individual clause was voided). |
| Which of the following would have the greatest impact on a home's value? | Transferability is the most important element of value because without it, the home typically may not be able to be sold or financed. Transferability is the ability to legally transfer. A mechanic's lien could prevent a sale or financing |
| Lisa brings Fetch to the local hospitals to provide support and comfort to patients there. If Lisa applies to an apartment complex that has a no pet policy, will she be able to bypass the building rules and be permitted to rent the apartment with a dog? | Only service or support animals would be permitted regardless of whether building rules or condo docs had a no pet policy. A therapy dog is technically not a support or service animal |
| Which of the following is chattel? | Chattel is personal property; it is moveable, and not attached to real estate. A desk is therefore an example of chattel. |
| The Garn-St. Germain Act makes it unlawful to: | The Garn-St. Germain Act makes it unlawful to trigger a due on sale clause on death, devising of the property, leasing, marriage, divorce, or transfer to a family trust. |
| Sally is a real estate licensee. She advertises her client's home, but does not put her brokerage's name in the ad. Has she risked her license? | Real estate licensees (both brokers and salespersons) may not advertise under their own name only; this is known as blind advertising and is prohibited. Salespersons must include their broker affiliation, and brokers must note that they are a broker. |
| Who is covered by mortgagor title insurance? | Title insurance insures against losses resulting from undiscoverable title defects. There are two types of title insurance: mortgagor (owner) protection or mortgagee (lender) protection. |
| Betty will be charged 2 points for the origination of her home loan. She is buying her home for $150,000 with 20% down. How much will her two points be? | Points are calculated on the loan amount; each point represents one percentage point of the loan. $150,000 x 20% = $30,000 down payment, subtracted from the $150,000 sales price = $120,000 loan amount. $120,000 x 0.02 = $2,400 in points. |
| An associate broker working at Homes Realty receives an exclusive right to sell a property located at 101 Main Road. The listing belongs to: | Associate brokers are brokers working for another broker. Since listings belong to the brokerage or the employing broker, the listing in this example belongs to Homes Realty. |
| What does Suzanne need to do to become a REALTOR®? | In order to become a REALTOR®, one must be a license real estate agent or broker and join a REALTOR® affiliated brokerage. The employing broker and all of the agents in that brokerage must become REALTOR®s to avoid fines. |
| Hal and Adele have been married for 27 years. When Adele passed away, the automatic homestead protection in New Hampshire covered their primary residency for how much? | In New Hampshire, the automatic homestead protection is $120,000 (double for married couples if a primary residency). So the answer is $120,000 * 2 = $240,000 |
| The government uses a lot next to Morty Smith's home as a landfill. This causes Morty's property value to fall. What can he claim in order to receive compensation? | Inverse condemnation is something that property owners can claim in order to receive compensation when an adjacent public land use lowers their property value. |
| Tom, a real estate developer, owns 5 acres of land. He wishes to build as many homes as possible on the land. The local zoning law requires a minimum lot size of 75' by 75'. How many homes can Tom build, given the minimum lot size? | An acre is 43,560 square feet, so Tom has 5 x 43,560 = 217,800 buildable square feet. Each lot he builds will be 75 x 75 = 5,625 square feet. He can therefore build 217,800 / 5,625 = 38 lots (rounded down). |
| What does not have to be affirmatively disclosed in New Hampshire? | UFFI does not need to be affirmatively disclosed in New Hampshire. |
| Gina grants Tim a life estate in remainder. Tim then rents that property to Helen. What happens if Tim dies while Helen's lease is still in effect? | Lease is terminated |
| Life estates automatically transfer upon | the death of the life tenant |
| Township 3 South of Range 6 West would be how many acres? | Under the government rectangular survey system, townships are always 23,040 acres. |
| What course of action must a landlord take if they decide to deny a tenant housing based on their consumer report? | landlord denies a tenant housing based consumer report,give a written noticeAdverse Action letter, stating the reason for their action, the name and address of the agency used, and how to contact themtenant to request a copy of the report within 60 days. |
| John makes a list of all of the vacant properties and stops by each real estate to drop off the list of vacant apartments available. the agents begin working to market the properties on their website. Has an agency relationship been created | Yes, because John dropped off the list and the agents started to advertise the properties in order to find tenants |
| An implied agency is created from the principal and agent's actions, even though it is not directly stated. | John dropped off a list of vacant properties and the agents started to advertise them.not expressly created through the signing of an agreement or even a verbal agreement, implied that an agency relationship had beeeated by John and the agents' actions. |
| What is the role of an agent during the due diligence period? | To answer questions, disclose any information regarding material defects, and help buyers gather information |
| If the cost of construction for a small, neighborhood post office is $535,000 and the land value is $375,000, with depreciation of $100,000 what would be it's value using the cost approach? | With the cost approach, value is given with the following formula: cost of construction - depreciation + land value. $535,000 - $100,000 +$375,000 = $810,000 |
| A final court judgment being publicly recorded provides: | Recordation provides constructive notice (making something public), not specific notice (actually being told about something). |
| The Doctrine of the Laches states that: | Failure to assert a right within a reasonable time results in the loss of the right |
| Security deposits on residential rental properties are limited to: | limited to no more than one month's rent. If a security deposit is taken, a landlord's statement of condition is required within 10 days of the beginning of the rental so that tenants may inoculate their security deposit against claims for damage |
| Lucas's home is on the waterfront and has direct private access to the beach from the back of his home.Lucas gives Mike permission to access his portion of the private beach during the summer months. What type of rights did Lucas give Mike? | Licenses are personal, revocable, and non-assignable permission to enter someone else's property for a particular purpose. |
| A listing contract is best described as a(n): | A listing contract is essentially a service contract. The agent is offering services to the seller. It does not have to be exclusive. |
| Apparent or ostensible agency is when | authority does not exist, but appears to. In this scenario, the agent appears to be the listing agent, even though there has been no authority given (verbal or written) by the seller to this agent. |
| Alluvium is defined as: | Alluvium is sand, soil, or other detrital material deposited by water. |
| Brokers must maintain escrow and trust account records for how many years? | Brokers must maintain escrow and trust account records for at least 3 years. |
| An agent shows a rental property to a prospective tenant on behalf of their client, the landlord. During the showing, the tenant states that they are HIV positive. What should the agent do about this? | HIV/AIDS is a disability, and is therefore protected by the Fair Housing Act. The agent should do nothing, since acting on the information is unlawful (just like it would be with race, religion, sex, etc). |
| The mortgagor in a title theory state holds ______ title. | The mortgagor (borrower) in a title theory state holds equitable title, which is a future right to acquire legal title (ownership). |
| Howard wants to sell his mother's home after she has passed away. Because she died intestate, what will likely happen with the house? | Because Howard's mother died intestate, this means she died without a will and therefore, her property will have to go through probate. The judge will then assign an administrator to handle the estate. |
| Which of the following are not taxable as real estate in New Hampshire? | Buildings, mills, wharves, ferries, toll bridges, locks and canals, and aqueducts owned by private parties, as well as any portion of the water which is sold or rented for pay, are taxable as real estate. |
| You rent an apartment for two years. The landlord sells the building during the first year of the lease term. What effect does the sale have on the lease? | none |
| A listing contract containing a provision that gives a broker the right to advertise a property's availability to other brokers is a(n): | A multiple listing clause permits the listing broker to advertise the property to other brokers on the MLS. |
| Dan passes away intestate and without any heirs. What will happen to his property? | If a person dies intestate (without a will) and without any heirs, their property escheats to the state. |
| Personal, revocable, and non-assignable permission to enter someone else's property for a particular purpose is a(n): | A license is personal, revocable permission to enter someone else's property (e.g. a ticket to a sports game). |
| It has been a busy year for Tom, and he totally forgot to renew his license. It has been over 6 months so now his license is considered: | If the licensee does not renew their license within the 6-month period, their license will be considered lapsed. |
| Contingent sales (also known as "tying arrangements") are prohibited by: | The Sherman Anti-Trust Act prohibits contingent sales or "tying agreements," where the purchase of one item also requires the buyer to purchase another product or service from the seller. |
| What factor might require adjustment when setting rent rates using the comparative market analysis approach? | If there are differences between the number of bedrooms in the comparable properties and the subject property, adjustments might be needed to reflect those differences when setting the rent. |
| How many days does the buyer have to cancel a contract for a condominium once the Public Offering Statement has been received? | Once the statement has been received, the buyer then has 5 days in which they can cancel the contract. |
| Which of the following is NOT a step in determining fair market rent for a property using a comparative market analysis? | The mortgage interest rates are not typically considered when analyzing rent rates. The process includes gathering information about the property, defining the market area, and collecting and analyzing comparable listings. |
| Abe owns a large piece of land in a rural area. His neighbor, Bill, has been crossing over a small portion of Abe's property to access a nearby road on a regular basis for over 25 years. What kind of an easement has Bill established? | (ONCHA) use of a right of way for more than 20 years. In this case, Bill cut across Abe's property to get to a nearby road for more than 20 years, and as a result, has established an easement by prescription. |
| (ONCHA) | An easement by prescription is an easement acquired by the Open, Notorious, Continuous, Hostile and Adverse |
| All of the following are included in the four unities of joint tenancy, except: | The four unities of joint tenancy are time, interest, possession, and title. |
| adding lemons outside from a house plant | When the lemon plant was in a pot in Mark's kitchen, it was considered personal property. However, when Mark planted it in the ground, it was attached to the land and became real estate. The term for this is annexation. |
| Who may accept a full price offer on behalf of another party? | An attorney-in-fact is someone holding a written "power of attorney" to act for another (allowing them to act as a proxy). |
| A lot, sized 1250’ x 1500’, sold for $9 per square foot. How much did it sell for? | Use the formula lot length x lot width = lot square feet to determine the total square footage, then multiply the result by the price per square foot to find the sale price. So, 1250 feet x 1500 feet = 1,875,000 sqft x $9 per square foot = $16,875,000 |
| All of the following are true about fully amortized loans, except: | In a fully amortized loan, the debt is paid in equal installments each month. The total amount stays the same but the amount going toward principal vs interest changes each month. |
| Moe, who is 17, signed a contract to rent a property that, at the time according to building codes, was suitable for occupancy. This contract is: | Since Moe is under the age of 18, he cannot legally consent to this agreement. The agreement itself is valid, though, so the agreement is voidable at Moe's discretion. |
| Which notice discloses the relationship of the agent with the prospective purchaser or seller and is provided at the first business meeting? | Real estate agents must provide real estate consumers with the mandatory Brokerage Relationship Disclosure Form adopted by the Commission. |
| Sarah discovers that there are rules that state she can never change the color of the front door and that her driveway must always be covered in light colored pebbles. This is an example of what type of restriction? | A covenant is a property right restriction that is typically written by the developer of a subdivision in order to keep a certain aesthetic or style to the community. Covenants are private restrictions that run with the land and are enforced by (HOA). |
| If a buyer signs a purchase and sale when they are 17 years old, is this a valid contract? | This would be an example of a voidable contract. While still a valid contract, a voidable contract gives the party who was harmed in it's creation, in this case, the minor, the ability to void the contract or move forward with it. |
| Municipal master plans would likely be implemented using any of the following except for: | Escheat is the reversionary interest the government maintains in abandoned properties. It would not be used to implement a town master plan (the planned vision for a town or city). |
| Who is responsible for verifying the details, signatures and any potentially necessary redactions on the documents before they are officially recorded? | The administrative staff at the Registry of Deeds are responsible for verifying and reviewing all documents before they are recorded, including details, signatures and necessary redactions of personal information such as social security numbers. |
| Harry Homeowner can't pay his mortgage loan payments, and goes into foreclosure. He owes $346,000 to the bank. His home sells for $298,000 at foreclosure auction. He is at risk of the bank getting what against him? | Harry Homeowner would be worried about the bank getting a deficiency judgment against him. A deficiency judgment would let the bank pursue Harry for the outstanding loan balance of $48,000 that was not recouped at auction. |
| Tom passes away and leaves no heirs or will. What happens to his property? | Escheat is the power of the state to take property when the owner dies without a will or any heirs to inherit the property. |
| Which of the following is true regarding appraised and assessed value? | The appraised value is what banks will use to determine if the property is a safe investment |
| Appraised value is created by appraisers, | is created by appraisers, who are often hired by banks in order to verify that the buyer is paying a fair value for the home and not over paying, which would mean a bad investment for the banks. |
| Assessed | value is the tax value. This is the value that towns give to property in order to come up with what they will charge for property taxes, and it often does not reflect market value for the property. |
| Members of the commission who are licensees MUST | Refuse any gifts from parties involved in an action |
| Manufactured housing is transferred using a(n): | Manufactured housing is transferred using a manufactured housing deed under RSA 447:44(II)(a). |
| A property management agreement establishes: | Property management agreements establish agency between the property manager (either a person or company) and the property owner, so that the manager has the authority to work on behalf of the owner. |
| Before any of the buyers can move into their new condos, Eagleton Towers must receive which of the following from the city? | A certificate of occupancy is required for any gut renovation or new construction building before any residents can move in. This certificate shows that the building or home has been inspected by the city and found to be up to building codes. |
| Sally, the listing agent, tells the buyer that the lowest her client will sell for is probably around $200,000. Is this acceptable? | Personal information about the seller or buyer which does not impact the property or the ability of the party to proceed with the transaction must not be disclosed by the respective agent, even though the other party would want to know it |
| A piece of property that is initially personal property, but by attachment becomes real property, is a(n): | A fixture is a piece of property that has been attached to real estate. It is treated as part of the real estate. |
| If a property has a cash on cash return of 15%, what is the cash flow if there was $100,000 invested? | Cash on cash return is based on the percentage of cash invested, received in an annual cash-flow, not a percentage of the underlying asset. So $100,000 investment x 0.15 (15% cash on cash return) = $15,000 cash flow. |
| Ben wants to buy a home that costs $250,000. He has a 5% down payment and the lender charges 1 point to originate the loan. How much money will Ben need up front? | Points are 1% of the loan amount, not the purchase price. we need to what loan amount will be. 5% of $250,000 is $12,500 and our down pmt amnt. $250,000-12,500 = $237,500 is our loan amnt. 1% of 237,500 is $2,375 upfront $12,500 + $2,375 = $14,875. |
| James was sent a notification by the DES that he was in violation of a law that damages the public waterway. James disagreed with the DES and refused to make any changes to restore the land. What penalties can be assessed for his violation? | Civil penalty up to $10,000 and an administrative fine up to $5,000 for all offenses |
| Josie is currently in a rent-to-own contract with a seller. Josie's interest is a (an): | Rent-to-own means that Josie is presently renting. When the rental term performs, and Josie purchases the property, she will then have a freehold interest; in the meantime, she has a non-freehold interest (rental). |
| Steve rents a space in a strip mall where he plans to open a sandwich shop. The lease that Steve signed states that he is obligated to pay the property taxes for his portion of the strip mall. What kind of a lease does Steve have? | A lease where the tenant pays some or all of the leased property's operating expenses (taxes, maintenance costs, management fees, etc.) on top of their normal rent is called a net lease. |
| A log cabin that borders a small stream in Maine would likely have what property rights to the water? | Riparian rights in the original 13 colonies, including Maine, states that if the waterway is non navigable, then the property bordering it, owns up to the midpoint. |
| A buyer is assuming a mortgage on the property, which has a monthly interest charge of $350. The seller made their payment due on April 1st. What is the adjustment made at closing if the date of closing is April 15th? | Debit seller $175, credit buyer $175 Since mortgage interest is paid in arrears for the previous month, rather than in advance for the upcoming month, the payment the seller made on April 1st was for March's interest, |
| What is the first 50 ft of the woodland buffer called? | The first 50 ft of the woodland buffer is called the waterfront buffer. |
| If I were to separate a township into sections and number them, I would find that section #1 was closest to which section: | Sections are numbered starting at the northeastern corner (#1) and moving west and then south and then east. Section #12 would end up directly under section #1 which is why this would be the closest section. |
| A seller wants to net a profit of $305,000 after paying a 4% commission. What should the property sell for? | $305,000 / .96 = $317,708 |
| Three years later, Leslie begins allowing the public to use the property as a park. Who would be permitted to demand forfeiture of title from Leslie? | Deed restrictions are enforceable by the person who wrote the restriction, or their heirs. Therefore Jerry (or his heirs) may enforce the restriction in Leslie's deed. |
| All of the following statements are correct except: | This answer choice is false. It is the optionee, not the optionor, that would lose their deposit if they failed to exercise their option by the agreed upon deadline. The optionor would keep the deposit in this instance. |
| Which requires that the lender provide a good faith estimate of settlement costs? | (RESPA) federal law requires lenders to provide info on closing costs for financing 1-4 family res homes and sets forth prohibs. Banks must provide a bona fide ("good faith") est of the amnt range of charges for settlement within 3 days of the loan applic |
| A property line is listed as 12 rods and 2 links in the deed. How long is the property line? | A rod is 16 feet 6 inches, and a link is 7.92 inches. 12 rods and 2 links converted to feet is therefore 199 feet 3.83 inches, rounded up to 200 feet in answer choice A. |
| A property is worth $100,000, and assessed for tax purposes at 40% of its value. The annual tax rate is 7%. What is the annual tax expressed in dollars? | Property taxes are calculated on the assessed value of the property, so that's the first place to start: $100,000 x 0.40 = $40,000 assessed value. The tax rate is 7%, so the property taxes are: $40,000 x 0.07 = $2,800 |
| Hotels on the planet of Hoth have a capitalization rate of 8%. Leia finds a hotel on Hoth that is selling for $1.2 million and has a net operating income of $24,000. Should Leia buy this hotel? | No, as it has a cap rate that is below cap rates in the area. In order to figure out the capitalization rate, we will need to divide net operating income by the selling price (24,000 / 1,200,000 = .02 = 2 percent). |
| Which party typically pays the broker fee? | Typically the seller pays the broker's fee, and the buyer's agent is paid with a split of the listing agent's commission. |
| If Ben wants to sell his property without any warranties or liability for any title issues, he should sell with what type of deed? | With a Quitclaim Deed, the grantor does not offer any warranties to the grantee nor does the grantor have any liability if title issues arise after the sale. |
| Avulsion is the: | Avulsion is the sudden removal of land from one property, and the addition of that land to another property, by the action of water. It sometimes happens to beachfront properties during storms. |
| How many acres are in Section 16 of Township 7, north of the 3rd parallel, range line 7 west of the 3rd principal meridian? | Every section in a township is 1 mile by 1 mile or 640 acres. |
| What is the gross living area of this house? | Gross living area (GLA) is calculated as the space in a home that is above grade, heated, enclosed, and habitable year round. In this example, the finished basement, although finished, is not above grade NOT be considered a part of the gross living area. |
| Moe rents out an apartment to Larry for 12 months. 3 months into the lease, Larry finds out that he will need to for 6 months. He decides to rent his apartment for the 6 monthsLarry returns, he intends to finish out the rest of the lease | A sandwich lease, or a sublease, is any lease between a sub-letter and original tenant. In this case, Larry is renting from Moe, will in turn rent out his apartment to Curly for 6 months. |
| Howard wants to sell his mother's home after she has passed away. Because she died intestate, what will likely happen with the house? | Because Howard's mother died intestate, this means she died without a will and therefore, her property will have to go through probate. The judge will then assign an administrator to handle the estate. |
| Tom owns a property subject to a life estate. When he passes away, ownership will transfer to Tim, who was named in the original deed by Tina, the grantor. Tim is the: | A remainderman is a person who inherits or is entitled to inherit property held as a life estate when the person whose life determines the duration of the life estate passes away. |
| On May 15 Tera signs a lease with her landlord for a beachside condo. She is excited to move in on June 1st. When is the latest date the landlord can provide her a copy of the lease? | A copy of the lease must be provided to the lessee within 30 days of the execution. In this case, 30 days from May 15 is June 14. |
| In New Hampshire, the property tax year runs from: | In New Hampshire, the property tax year runs from April 1st to March 31st |
| If the eviction is due to non-payment, damages to the property, or endangering the health and safety of others, the tenant must be given a 7 days' notice to quit in writing, that is | The landlord can give Louise a 7 days' notice to quit in writing. |
| One link is equal to: | One link is equal to approximately 7.9 inches. |
| Which of the following qualify as chattel? | Emblements are annual or semi-annual crops that, despite their attachment to the land, are treated as personal property (or chattel) under the rules about property. Corn and wheat are examples of such crops. |
| An oil delivery company came out to Harold's property but they refused to fill the tank because of the tag color. What color was the tag? | No oil delivery can occur with a red tagged tank as the red tag indicates it is unsafe to fill [RSA146-C:14]. |
| What is not available to the Federal Reserve System in controlling the money supply? | The Federal Reserve was goals of maximizing employment, stabilizing prices, and moderating interest rates. Its powers and authorities have expanded over time, but the three most relevant relate to the discount rate, reserve requirement, and FOMC. |
| A brokerage pays an agent 1.5% commission on the first $500,000 of any sale, plus 2% of any selling price over that. What was the sale price if the total commission was $10,000? | e would then divide by the commission rate over $500,000, which is 2% ($2,500 / .02) which equals $125,000. We would then add that back to $500,000. The total sale price was $625,000. |
| Why does the U.S. Treasury raise funds? | The US Department of the Treasury was established in 1789 to manage government revenue and pay the costs of running the federal government. It's three main activities are raising revenue through taxes, borrowing, and printing money. |
| An owner is liable for any direct or indirect costs resulting from a violation relating to containment, cleanup, and removal of hazardous waste if: | They had knowledge of the hazardous substance prior to purchasing the land |
| It is lawful to discriminate based on: | Student is an occupation, and is not covered by fair housing law. |
| Both General Warranty and Limited Warranty Deeds offer the grantee which of the following protections: | With both General Warranty Deeds and Limited or Special Warranty Deeds, the grantor states that they did not cause any issues with title when they owned the property. This is the only guarantee that both deeds have in common. |
| A homeowner in a subdivision paints his house yellow, which is prohibited by the subdivision. What may the other homeowners do? | Homeowners association covenants (the rules in a subdivision) must be enforced by court order. |
| An ARM typically adjusts based on the: | An adjustable rate mortgage or ARM has a rate that fluctuates over a certain term. The increase or decrease of that rate is based on the prime rate plus some margin. Loans you encounter as an agent may also use SOFR (or LIBOR for older loans) |
| Howard wants to sell his mother's home after she has passed away. Because she died intestate, what will likely happen with the house? | The house will have to pass through probate and an administrator will need to be assigned |
| Fannie Mae: | (Fannie Mae) was founded in 1938 and is one of three major entities on the secondary mortgage market. It exists primarily to encourage lenders to make more borrower-friendly loans and to inject liquidity into the market by purchasing loans from banks. |
| Which of the following is a non-freehold interest? | Non-freehold interests are possessory interests that don't include ownership. A leasehold is a common example of a situation where someone holds the right to possess a piece of property, but does not own it. |
| Margaret is going into foreclosure. Before her home is sold by the lender, she can pay off her loan and keep her home. This is called her: | A borrower's equity right of redemption is the right to pay their debt and prevent a foreclosure sale. |
| A town is zoned exclusively residential. The town's citizens wish to bring a supermarket to the area. If approved, the business will likely be issued: | A conditional use permit allows a use that zoning laws otherwise would not allow, with the caveat that it is restricted to a specific use case deemed in the public interest. In this instance, the supermarket would likely receive a conditional use permit. |
| An example of an arms length transaction would be: | An arms length transaction is an open and willing sale between parties. If the sale involves family relations or is a private party transaction, it is not arm's length. |
| Under CERCLA, who has liability for hazardous materials dumped on a property prior to its sale? | purchasers of contaminated propertybe absolved from liability for contamination did not cause. The seller wouldbe held liable forcontamination prior to the salethey were the ones who contaminated the property if it was not discovered until after the sale. |
| Rory is leasing an apartment from Ben. With Ben's permission, Rory novates her lease, and re-lets the apartment to Martha. Martha later fails to pay the rent. Which statement is most correct about this situation? | Novation is the cancellation of a contract, and the replacement of that contract with a new one. It relieves the original party of their obligations under the contract. Martha is therefore solely responsible for the unpaid rent, |
| Apparent or ostensible agency is when | authority does not exist, but appears to. In this scenario, the agent appears to be the listing agent, even though there has been no authority given (verbal or written) by the seller to this agent. |
| Phyllis and Stanley were talking about what they charge their sellers for listing commissions. They both charge 3.5%. Another agent, Jim walks by during their conversation and overhears them talking. The best thing for Jim to do is: | Under the Sherman Anti-Trust Act, commissions are always negotiable, and in order to avoid anti-competitive business practices, real estate agents are never allowed to discuss with one another the commissions they charge or earn. |
| The Civil Rights Act of 1866 prohibits discrimination in housing based on: | The Civil Rights Act of 1866 prohibits discrimination based on race in the purchase, sale, lease, or conveyance of property, without exception. |
| When a lake dries up, it is an example of: | Reliction is the addition of land by the sudden retreat of water. When a lake dries up, the water retreats, which adds much more land to the beach. |
| During month 9 of a 12 month lease that contains an option to purchase, the lease is: | A lease is bilateral (both parties make a promise) and executory (not yet completed). Options may be unilateral, but the lease is still bilateral even if it contains an option. |
| Manufactured park owners must provide tenants with any rule changes within | Park owners must provide tenants with 90 days’ notice of any rule changes within the park. |
| Which of the following constitutes an involuntary alienation? | An involuntary alienation is an involuntary (done without the property owner's consent) loss of ownership. The correct answer is therefore the foreclosure, since it is an involuntary loss of property ownership. |
| property rights are not | unlimited |
| police power | right of government to regulate private property (in the publics best interest) |
| encumbrances | restrictions that limit property rights |
| bundle of rights | rights we have with real property |
| deep c | deposition, enjoyment, exclusion, possession, and control |
| encumbrances can inpact the owners ability | all the way to how they sell |
| government rights - PETE | police power, eiminent domain, taxes and escheat |
| eminent domain | right or the government to take property, under 5th amendment, right of governemnt to force sale of privately owned property for public good. a portion of the lot is known as severences damages. |
| condemnation | the process of the government taking the property |
| taxes | right of government to tax the public in order to generate revenue for the town/cities |
| escheat | right of governemnt to take someones property if they die without a will and without heirs |
| testate | with a will |
| intestate | without a will |
| municipal zoning powers come from police power | local land use board |
| subsidizes municipalities into zones | creates a master plan |
| zoning rules | use, heights, setbacks, lot size, buffer zones |
| use | the purpose for which the property can be used |
| heights | maximum building heights |
| setbacks | distance from lot lines before building is permitted |
| lot size | minimum permissible lot size for building |
| buffer zones | used to ease transitions in between zoning areas |
| types of zones | agricultural, commercial, school, residential, historical, industrial, conservation, waterfront |
| exceptions to zoning: three ways to do something zoning doesn't currently allow | non conforming use, wariance, conditional use permit, special use permit, limited variance |
| non conforming use | legal use that existed prior to the creation of todays zoning codes; propoerty is legacied or grandfathered in |
| variance | special permission to do something outside zoning codes |
| condition use permit, special use permit, or variance | allow for property owner to do something outside zoning codes. restricted to a specific use that is deemed in the publics best interest |
| limited to the owner | non transferrable ; operating a business out of the home in a real zone |
| building codes govern | property construction |
| examples of things building codes might govern | fire safety, sanitation, structural |
| building permits and certificates of occupancy (COs) | shows building has been inspected and up to code |
| occupational safety and health administration (osha) governs | construction site safety |
| modular, stick built and factory built homes | required to meet local building codes |
| mobile/manufactured homes | held to different building codes. tie downs for hurricanes, snow load requirements, heating systems etc. |
| mixed use building on residential lot that has been grandfathers in for the last 25 years | non conforming use ; grandfathered in |
| residential lot that someone wants to turn into a commercial lot to turn into a grocery store for the public | condition use permit, special use permit, or variance |
| how properties are taxed | assessed value = inlcudes land + improvements |
| property taxes paid in | mills |
| mills | milage rate = $ per 1000 |
| tax rate | set by town as amount needed to fund the budget for municipality (contributions by the # and value of the propoerties in town/influence on the use) |
| when are taxes paid | specific to NH fiscal year - april 1st - march 31st , bills issued twice a year due in july and december |
| exemptions to taxes accessed value | credits or abatement |
| tax credits | credit towards tax billed owed. could offer veteren credit example |
| tax abatement | tax payer can file abatement if they feel property has been unfairly assessed |
| special tax assessments | similar concept to HOA: improvements/betterments paid for by additional funds. amount due is based on proximity to betterment. for example sewer hook up or addition of park |
| special districts | used to collect additional taxes. proximity to amenities seen as added benefit to home owner (pond of lake community) winni |
| priority liens | paid first in the event of foreclosure : equity right of redemption (up to three years from date of collectors deed) |
| equity right of redemption | unknown |
| equalization ratio | process used by nh department of reenune to make adjustments to each municipalitys local assessed value |
| reassessments of property values occur at least once every | 5 years |
| equalization ratio | expressed as a percentage example 2020= 500k 2023= 95% of your assessed value until the next reassessment cycle |
| property tax math annual propoerty tax on 100k assesssed at 40% of its value with a milage rate od 20.25 per 1000 | 100,000 x 40% = 40000 /1000 x 20.25 = 810 annually |
| manufactured housing | real property |
| manufactored housing is taxable as real estate in the town where it is located | as soon as it is placed on site and tied into utilites |
| manufactured housing relocation from april 1st to the following january 1st for more than 10 weeks is taxable unless | taxes have been assessed on it somewhere else in the state and tax is prorated if no taxes have been accessed |
| manufactored housing exemption | housing registered in the state for touring or pleasure that doesnt remain in any one place longer than 45 days |
| contiguous | continuous and connected |
| current use | encourages preservation of open space/ conservation of land, water, forest, wildlife : heavily discounted taxes, must have 10+ contiguous acres of land in its natural state, and remains in perpruity and does not terminate upon transfer of ownership |
| current use taxes | taxed on present use not highest and best potential or real estate value. buildings and other improvements are excluded |
| luct | must pay land use change tax for changes in the use of land for current use land |
| escheat | property transfers to the governemt if someone dies without will or heirs / reversionary interest the government maintains in all private property |
| private limitations | covenants and deed restrictions |
| cc&rs | covenants, conditions, and restrictions |
| covenants | run with the land/ promise : restrictions created by the developer of a subdivision or planned unit development. |
| covenant are | recorded at county registry of deeds, must be reasonable and within public interest, must be enforced consistently and uniformly in order to remain legal and enforceable |
| deed restrictions | limitations written into deed. create fee simple defeasible estate and runs with the land |
| conflicts between public and private restrictions | the more restrictive restriction prevails |
| federally protected classes under fair housing act and amednemtns | race, color, national origin, religion, sex (includes sexual orientation and gender identity per bostock c clayton county 2020, familial status (families with children under 18), disability (physical,mental,addiction) |
| disability protections | reasonable modifications of residential rentals must be permitted by landlord, reasonable accomadations must be made by landlord upon tenant request, can be made at anytime in tenancy of the disables person |
| reasonable modifications for disability protections | can be at tenants expense, can be required to be returned to original condition upon move out (grab bars in showers, ramp into building, removing base cabinets) |
| reasonable accommodations for disability projections | adjusting rent pay periods to coincide with income assitant payments, and providing a parking space closer to the front door |
| disability protections can request | verification that the change is necessary to be made to cater to disability |
| under fair housing act and amendments | as of march 1991, all new or renovated residential 4+ unit homes must have must have elevator and ramps for wheelchairs |
| under ada title III | americans with disabilites act: places of public accomadation must follow all accessability guidelines (widening doors, accessible parking spaces, removing furniture that may obstruct restrooms |
| businesses open to serving the public | public accommodations: brokerage offices, restaurants, hotels and testing centers |
| both landlord and tenant are responsible under the law for disability protections | lease may outline specific responsibilities |
| service and support animals | tenants and owners with disabilites must be allowed to have assitance aniamls : pet policies, condo rules and breed restrictions do not apply |
| service aniamls | a dog or mini horse to perform a specific task (seeing eye dog) |
| what can you ask with a service animal? | is it a service animal, what task does it perform (if it is not obvious) |
| support aniamls | any animal healthcare professional designates for emotional support |
| what can i ask with support aniamls | for a note from doctor confirmation and can never ever ask for the reason or the mention of disability |
| NH fair housing law : protected classes | race, color, national origin, religion, sex (origntation and gender identity, familial status, disability, martial status, age, gender identity, sexual orientation |
| exemptions to fair housing law | exemptions are never allowed based on race ; both federal and NH (Jones v alfred H mayer Co) |
| advertising is never exempt from fair housing law | except roomates seeking the same sex roomate due to shared living spaces |
| licensed real estate agents must always follow fair housing laws | no exemptions ever. people that hire an agent may not use any exemptions |
| Federal exemptions to fair housing law : private individuals who | own 3 or fewer single family house and cant have sold more than 1 in the last 24 months |
| federal exemptions to fair housing laws: private clubs that offer | housing to their members (non commercial purposed and can never be open to the public) |
| federal exemptions to fair housing laws: roomates | cant use an agent or management company to find a roomate |
| state exemptions to fair housing law : per rsa 354-A:15 | private sales of single family homes as long as owner does not own more than 3 single family homes at time of sale, the owner or members of their family were the last residents, no agent, all fir housing advertising laws are followed |
| state exemptions to fair housing law | reasonable state or federal restrictions that limit occupancy |
| state exemptions to fair house : rooms for rent in an owner occupied home | or where the owner or family member isn't absent for more than 12 month |
| fair housing federal and state exemptions | rentals in owner occupied 1-4 family homes |
| fair housing federal and state exemptions : fed or state approved housing developments for seniors or retirees | exempt from familial status under housing for older persons act of 1995 : 100% occupancy of 62+ or 80% occupancy of 55+ |
| fair housing federal and state exemptions : religious organizations that offer housing to their members | must be for non commercial purposes and religion itself cannot be discriminatory |
| what are contracts | legally binding agreement between two or more parties to do o rnot do something |
| in a contract, parties can be | natural persons or legal persons (mary or company) |
| performance | doing what you promised under a contract |
| 4 essentials under a contract (not valid contract without all four) | offer & acceptance, consideration, legal object, reality of consent and competence |
| offer & acceptance | actions or signature : esign and uniform electronc transactiong act (UETA) ; appropriate uses, benefits and risks |
| consideration | money - valueable = anything of value exceeding $100 (money goods or services) good = anything out of morality, love, affection (hug or kind words) |
| legal object | purpose of contract is to do something legal |
| reliaty of consent and competence | consent = freedom from misrepresentation, fraud, undue influence or duress competence = parties are sound mind including sober, legal age or emancipated minor |
| if 17 year old enters into a contract it is considered | voidable = valid until voided |
| valid | legally binding, has 4 essantials on contract |
| void | not legally binding, missing one of the first three essantials of a contract |
| voidable | missing either consent or competence and is able to be voided : if party wants to proceed it is valid and enforcable. if they do not want to proceed, they can petition a judge to void the contract |
| voidable contract is | valid until voided |
| unenforcable contract | impossible or unfair. it has to be impossible to perform or verbal offer to purchase real eastate |
| statutes of frauds | real estate contracts must be in writing to be enforceable |
| doctrine of laches | lose your rights if you fail to assert them within a reasonable time frame. can be used to render a contract unenforceable |
| statutes of limitations | hard legal limit as to when you can assert you can bring a claim to court and can be used to render a contract unenforceable after time limit passed |
| unilateral contract | one party making promises to another : open listing for agents or a radio announcer giving prize away |
| bilateral contract | two parties making promises to each other : giving an egent an exclusive right to sell your property or a lease offer (lessee and lessor or buyer and seller) |
| executory contract | agreed to but not yet completed. (in the middle or a 12 month lease) |
| executed contract | compelted and finished (day after lease ended and youre moved out) |
| assignment | transfer or a partys right and obligations to another party: contracts can be assigned |
| assignor of contract | person assigning contract |
| assignee of contract | person recieving the rights or obligations of contract |
| addendum to contract | provides supplementary information without changing original turns and attached to the contract (seller includes certain pieces of furniture for a sum) |
| amendment to contract | alters the core contractual terms and conditions , can be one time or recurring (extending the closing date or striking out a kick-out clause) |
| for a contract to be enforceable, all parties must sign ff on any | addendums or amendments |
| common clauses in contracts: ironclad merger clause | integration clause, merger clause, entire agreement clause : any other agreement outside of the written contract wont have any affect |
| common clauses in contracts : severability clause | any part of the contract that is illegal or unenforceable will be voided, but the rest will remains in effect |
| common clauses in contracts : contingency clause | makes the contract contingent on something happening : the buyer recieving financing. if it doesnt happen, the contract is voided |
| breach of contract | one party under the contract didnt do as promised |
| doctrine of privity | right to sue for a breach of contract |
| when a contract is breached, here is what could happen | Rescission, specific performance, damages, liquidated damages |
| contract breach: rescission | cancellation of contract |
| contract breach: specific performance | court order forcing party in violation to comply with term on contract (injunctive relief = court ordered act) |
| contract breach: damages | monetary compensation for harm suffered as a result of the breach |
| contract breach: liquidated damages | pre agreed upon monetary compensation for a breach (could be forfeiture /loss of deposit) |
| listing contract | broker employment contracts: used to hire a real estate agent to sell a property |
| listing contract is | always negotiable |
| listing contract includes | propoerty broker is selling, commision they will be paid, brokers authority, deadline for sale |
| listing contracts in nh must include | date of signing, address or location, description, listing price, professional fee for service, date of expiration, legal names and addresses of all parties |
| when writing up a listing contract | when ding listing contract, always make sure to look up property deed on nhdeed.org to be sure to list everyone on the deed |
| DADLPDL - daddapiddl | what needs to be included in a listing contract date of signing, address or location, description, listing price, professional fee for service, date of expiration, legal names and addresses of all parties |
| listing contract type- entry only listing | seller pays flat fee for put the propoerty on MLS / broker offers limited services to seller and typically the seller shows their own home and negotiates their own sale. buyer works direct with seller |
| listing contract type - open listing | seller hires multiple brokers / no commission earned if the seller finds a buyer without the brokers help |
| listing contract type- exclusive agency (EA) | seller hires one broker / must be in writing with an expiration date and no commisions earned if the seller finds a buyer without the brokers help |
| lsiting contract type- exclusive right to sell (different that EA) | seller hires one broker/ must be in writing with an expriation date/ broker earns a commision and may cobroker/ seller pays a commision even if they find their own buyer |
| buyers agency contracts | cover exclusivity but no always a set commision or payment |
| on the real estate exam, commisions are treated as a cost for the | seller. but in practice, commissions are actually paid for by the seller and the buyer |
| buyer agency contracts NH specific requirements | date of signing, general description and location of the type of property, desired price range, any fees dollar amount or percent, expiration date and names and addresses of all parties involves |
| termination of broker employment contracts | termination rules are typically outlines in written listing and buyer agency contratcs. terms vary and negotiable before contract is signed. different variation templates. can be at will contracts |
| at will contracts | either party can cancel at anytime |
| termination of broker employment contracts | some contracts dont allow client to back out before specific date unless client can prove the agent breached the contract (needed to offer two open houses a month and didnt) |
| termination of broker employment contracts | both parties can come to mutual agreement if relationship doesnt work. should always consult with broker before agent terminates contract |
| statute of frauds | all purchase and sales agreements must be in writing |
| listing offerings | listings are not necessarily in writing |
| a verbal listing is | valid contract because it does not fall under the statute of frauds |
| listing is a | soliciation for offers |
| a signed offer creates | a contract to purchase : pruposed is to reach agreement between two parties with intent to move forward |
| an offer leads to the signing of a | purchase and sales contract (time is of the essence) |
| offeror | person making an offer (typically a buyer) |
| offeree | person receiving an offer (typically seller) |
| verbal offers or acceptance are non binding per | statute of frauds. encourages client to get everything in writing and watch out for unauthorized practice of law |
| offers | no laws that dictaet how real eastate agents handle multiple offers or counter offers |
| Offers - Members of National Association of Realtors follow code of ethics (overall best practice) | understand listing contract regarding disclosing other offers, set clear expectations for deadlines, maintain open communication, consider price, terms contingincies and prioritize sellers interests ultimately sellers ultimately decides which offer |
| offers - encourage buyers to submit their best since the sellers may not always counter all offers | be transparent if you have more than one buyer interested in the same property |
| before an offer is accepted in writing, it may be terminated if: | end of time limit stated in the offer, death/incapacity, or disability of either party to the offer, destruction of sale object, withdrawal of offer, counter offer |
| agency relationships have no effect on | the offer |
| binder or letter of intent in some transactions can serve as an | offer (often seen in commercial real estate) |
| purchase and sales contracts | agreement about how a sale will take palce |
| whats in a purchase and sales | contingencies, obligations and date of performance/closing |
| basic essentials of a valid P&S | name of buyer and sellers, legal description of realty, offer and acceptance, consideration, terms and condictions, contingencies, date of perforamcen |
| purchase and sale contracts in nh | direct to contract state (direct to purchase and sales). does not do pre offer or intent to offer |
| purchase and sale contracts in nh | inital offer presented on a P&S contract : considered to be an offer status until accepted by all parties |
| once p&S accepted | valid and enforceable |
| lease purchase agreements | type of written rent to own agreements |
| lease purchase agreements : | owner of real estate agrees to sell their propoerty to their tenant during or at then end of lease term |
| lease purchase agreements are | bilateral |
| for lease purchase agreements | two contracts are signed simultaneously : lease and purchase contract with consideration exchanged with a certain time frame and pre agreed terms and may include cross default provisions |
| cross default provisions with lease purchase agreements | if an original lease is breached, it will result in a breach of the purchase contract and the tenant may be required to pay for the utilites and maintenance during tenancy |
| type of written contract | owner of real esatate grants another party the right to purchase or lease : optionor and optionee. unilateral. consideration exchanged with certain time frame and pre agreed terms. |
| optionor | person offering the option |
| optionee | person receiving the right to the option |
| agent who brings an optionee will only earn a commision if | the right to purchase the property by the optionee is exercised |
| other real estate contracts : right of first refusal | prospective buyer is offered first right to match best offer on property. right doesnt give buyer control over the price terms. allows sellers to better track the marekt and ensure fair market value |
| other real estate contracts: right of first offer | prospective buyer is offered the first right to offer to purchase the propoerty |
| other real estate contracts: power of attorney | written document giving the right to act as a proxy for another and creates attorney in fact |
| principle is the | client and the person hiring you |
| legal bundle or Real estate rights | DEEPC: Disposition, enjoyment, exlcude, posession, control |
| Estate interests in RE | Freehold estate, non freehold, life estate |
| leases are | a non freehold interest in real estate (limitation in DEEPC typically impacting possession and use) |
| synonyms for leases | non freehold, rental, leasehold, tenancy for years, estate for years, interest in years, demise |
| what are leases? | a type on contract, written conveyance of posession and use of real estate for some specific period of time and privity of estate |
| privity of estate | legal relationship between two people with interest in the same property (lessor/lessee) |
| Contracts requirements | offer and acceptance, consideration, legal object, reality of consent and competence |
| requirements for a valid lease | essentials of a contract, sufficient description of premesis (parking space and amentities), rental amount, term of lease, intention to rent, names and addresses of both parties, date of execution, all rights of extension or renewal |
| any lease language that waives tenants rights per title LV sec 540 is | void |
| leases cant last longer than | 99 years in agricultultural, commercial, cemetaries, plot leases |
| leases longer than what need to be recorded in NH | 7 years |
| parties to a lease | lessor : landlord lesseee: tenant |
| lessor retains a | revisionary interest under the lease: fufillment or defaulting |
| leases run with | the land (the tenants lease prevails even under transfer of ownership) |
| certificate of no defense/estoppel certificate | used to confirm the lease when property is sold (doctrine of estoppel) |
| in a lease: lessor is liable for and insures | common areas |
| in a lease: lessee is liable for and insured | the leased premises |
| transfer of a lease: there are three ways to transfer interest in a lease | sublet, assign, novate |
| subletting a lease | transfer a portion of the lease term (sandwhich lease) briana, alexis, back to briana |
| assigning a lease | transfer the remainder of the lease term |
| novating a lease | cancellation of the lease and creation of a new lease for the remainder of the lease term |
| NH has two classifications of rental properties | non restricted and restricted. state laws may differ for non restircted vs restricted rentals |
| non restricted rental properties in NH | all non residential rentals (commercial) and single family homes are long as owner doesnt own more than three at once, owner occ 2-4 family homes, RE owner property (foreclosed market) |
| restricted rental properties in NH | all remaining categories or residential rentals |
| lease termination options | novation, performance, surrender, action of law, destruction foreclosure |
| termination of lease: performance | auto term upon lease expiration |
| termiantion of lease surrender | cancellation of lease prior to expiration |
| term of lease : action of law | eminent domain, tax sale, bankrupcy |
| term of lease: foreclosure | banks have the right to terminate leases |
| protecting tenant at forclosure act of 2009 | residential RE tenants allowed to stay until the end of lease. if they are a Tenant at will or buyer occupied as primary residence, then they get 90 days notice |
| actual eviction | landlords remedy for a lease violation by the tenant (non payment, breach of lease) |
| eviction process for restricted rentals | 7 day notice to quit in writing for non payment of rent, property damage, negative impact to health safety, refusal to leave for lead , 30 days for any other lease violation, stated in letter that tenant can cure or fix issue |
| eviction process for restricted rentals | after notice to quit, an unlawful detainer complaint filed after 14 day period (summary process in NH), housing court hearing with two outcomes |
| actual eviction : housing court hearing two outcomes | eviction performed by constable or landlord loses and tenant may stay |
| actual eviction for restricted rentals | tenant rents property, tenant fails to pay rent, landlord sends written demand for rent letter, landlord send 7 days notice to quit, tenant pays rent + 15 in liquid damages before last day or paperwork filed with court and ruling made |
| if tenant being evicted | sheriff issues writ of posession |
| actual eviction for non restricted rentals eviction process | 7 days notice to quit for any reason, non residental rentals with extended pay periods = notice equal to payment period or 3 months notice, same hearing process as restricted rentals |
| covenant of quiet enjoyment | the landlord obligation to provide undisturbed enjoyment use of the propperty (sanitary and building codes) lessor must not lease to others, not threaten expulsion, not trespass (except for good cause with reasonable notice) |
| constructive eviction | tenants remedy for a lease violation by landlord. services promised in lease must be provided, permits lessee to vacate premesis, ends obligation to pay rent, always consult an attorney |
| landlord screening can include | credit report/fico score, tenant screening reports, criminal record, court information, rental history or reference checks (landlord doesnt need permission to run reports mentioned but cant charge for BRC or Criminal) |
| if a landlord denies tenant based on a report, they must provide | adverse action letter, written notice that specifies the agency report used |
| landlord/property managers must follow fair housing law | ensure that their qualification process is standardized |
| NH landlord regulations of restricted propoerties must file | a statement with the municipality where the propoerty is located. must happen within 30 days of becoming owner of rental propoerty, including name, address, phone number of person in state who handles anything and can be owner if reside in nh |
| NH landlord regulations of restricted properties can face non compliance fines of | 100 or less |
| exemptions to nh landlord regulations | REO property, owner occupied 2-4 family home, single family homes as long as owner doesnt own more than 3 single family homes at once. also does not apply to manufactured homes |
| nh landlord regulations | lessor must provide housing that is fit and suitable for occupancy per sanitary codes (working plumbing and safe elecric wiring, safe prches stairs and rails, no pests, working septic and sewer, no trash in common areas, running and hot water, gas/heat |
| security deposits under rsa 540 a | lessor may only collect one month + security deposit maximum of one months rent or 100 whichever greater (security, last month, cleaning deposit) |
| security deposits under rsa 540 a exemption | landlords of 6+ units can only collect 1 months rent |
| if a secuirty deposit is collected, lease must include | statement of condition form, security deposit reciept, and notice where the security deposit is being held |
| security deposit: lessor must pay | lessee interest on security deposit and the additional months rent each year |
| security deposit must be held | at a regular bank savings account with interest rates and interest must be paid to lessee within 30 days of annual tenancy each year |
| nh landlord exemptions | if person rents single family home and owns no other propoerty, rent to people under age 60 in a building with 5 units or less where owner resides, rent business, vacation or recreational propoerty (some mobil homes) |
| nh landlord exemptions : if a propeorty owner is exempt, then the lessor - lessee relationship | including funds collected, will be governed by negotiated lease terms |
| property managers are either | special agents or general agents depends on scope of respnosibilites but usually on the test defaults as general agency |
| granted authority in a | propoerty management agreement |
| propoerty managers should act in | best interest of the propoerty owner |
| compensation for property owners typically based on | percentage of gross effective rental income |
| all property management companies must have | a brokers license in nh |
| date and factors to consider when setting rent rate | other rentals in the area, demand and timing (how long stay on market and popular move in dates), amentities and utilites, vacancy tolerance, cost for landlord with propoerty expenses |
| commercial leases - commercial rental rate considerations | take into consideration : usable square footage, rentable squarefootage, common area load, any build outs |
| usable square footage | space that the lessee can occupy and is responsible for |
| rentable square footage | both the leased premises and a percentage of the common areas used by the lessee but maintained by the lessor |
| common area load | percentage increase of sqft due to the common areas |
| commercial rents - any build outs | negotiated between landlord and tenant |
| gross lease | lessee pays fixed rent, lessorr pays operating expenses of the building ; lessor recieves gross income |
| sublease/sandwhich lease | lease between original tenant and subletter |
| modified gross lease | tenant pays fixed rent year one. if lessor expenses increase, lessee will pay a percentage of this increase |
| net lease | lessee pays rent and some or all of the propoerty operating expenses. lessor recives net income, (single net, double net, triple net) |
| percentage lease | most rent is paid as a percentage of the lessess gross recipts most rent paid as a percentage of the lessess gross sales or profits. helps align landlord and tenants interests. most often seen with dept stores (anchor tenant) |
| anchor tenants | large tenant that acts as a draw to a shopping center |
| ground lease | lessee rents the land and may build whatever they want on it. when lease expires any improvements are then owned by the lessor, often 99 year leases, commonly used by fast food chains |
| graduated lease | rent increases on some pre agreed upon schedule. best for entreprenurs of those who need lower expenses at the beginning of their lease term (esculator clause) |
| esculator clause | increases or decreased rent |
| index lease | lease whose rent is tied to some index usually consumer price index. when index increases rent will too and vise versa |
| reappraisal lease | rent is based on appraisers opinion of rent, rather than negotiated rent. common in elase renewal options or when there is considerable doubt about future maintenance or values |
| sale leaseback | when a property owner sells the property and rents it back. helps to free up equity without giving up enjoyment and use of the property. rent is tax deduvtible for the business |
| real estate agents and brokers can complete a | cma or bpo (actives, pendings, solds) |
| value | what a ready willing and able buyer is willing to pay and a willing informed seller will accept |
| buyer determines | value |
| cma - comparative market analysis | structured data driven analysis based on comparable properties |
| bpo - broker price option | solds - informal ipinion of value based on professional experience ; commonly used in foreclosures and short sales |
| real estate agents and brokers can never perform | an appraisal |
| difference between appraisal and CMA/BPO | appraisers can create appraisals to estimate value. licensed required. REAgents can create CMA BPO to create listing proce or project a sale price for a property |
| CMA | RE Agents use to create listing and purchase price ranges. compares similar properties in size, features amentities, condition, upgrades |
| comps for a cma usually contain | properties sold in last 3-6 months and are close in distance (varies depending on geographic region). price per sqft considered |
| Sample cma process | gather property info (size, amenities, condition, deed restrictions), define comparable market area radius to other comps, amalyze comparable listings, supply and demand, recommend listing price or range |
| AVM : Automated valuation model | software based tool used in residential and commercial RE. used math formuals, prop information, property databases to provide reports on a propertys estimated value, used to support underwriting for loans, loss mitigation, credit risk |
| pros to a avm | faster and easier way to estimate value, eliminates human error or bias |
| cons to an avm | only as good as data used, needs large amount of high quality date to operate successfully, doesnt take into considerationcontiion of property, not as accurate as cma |
| agent/broker bpo | forecast value |
| appraiser/ licensed /appraisal | estimates value |
| agent/broker/cma | listing price range |
| elements of value : Dust | demand, utility how useful, supply how many are their, transferability good and clear title |
| mechanics lien or tax liens on title | cloud on title |
| pruple text | state exam |
| freeholds | ownership interests |
| non freeholds | possession and use, but not ownership |
| estates and tenancies | synonyms for interests |
| defeasible / defeated means | defeated by restrictions |
| freeholds - fee simple (indefeasible) | default, indifinite, inheritable. entitles to entire bundle or rights. only limit by private/public restrictions (fee simple absolute, fee simple indefeasible) |
| freeholds - fee simple defeasible | limited estate, ownership may be lost if limitation violated or condition triggered, multiple types, also known as qualified fee estate |
| fee simple determinable | ownership automatically lost / ownership reverts back to grantor/whomever wrote the restriction. (no legal action). if stops growing strawbeeries, farm reverts abck |
| grantor | person granting |
| grantee | is the person receiving the fee simple estate |
| fee simple subject to a condition subsequent | legal action needed to lose ownership, ownership reverts back to grantor who wrote the restriction |
| fee simple subject to an executory limitation | legal action needed to lose ownership, ownership goes to a 3rd party names by grantor by the restriction |
| types of freeholds - life estate | life estate in reversion, life estate in remainder, pur autre vie |
| freehold - life etssate- life estate in reversion | when grnatee dies; ownership transfers back to grantor |
| freehold - life estate - life estate in remainder | when grantee dies; ownership transfers to a third party (remainderperson) |
| freehold - life estate - pur autre vie | when third party dies; ownership transfers either in reversion or remainder (for another's life) |
| habendum clause | defines the estate being granted ; used to grant limited estate (life estate) |
| remainder person | third party who receives interest when grantee dies (future interest) |
| types of freeholds - legal life state - homestead | protection against creditors, cant force sale of family home to pay off homeowners debt, for primary owner occupied residences only ( can only have one at a time) |
| freeholds - legal life estate - dower rights | allows spouse to take 1/2 equity in real property in exchange for what was left to them in the will (doesn't exist in NH) |
| dower rights | do not exist in NH |
| example of life estate based on third parties life and not based on current tenant | pur autre vie example |
| reverts back to the grantor - life estate example | reversion example |
| goes to third party if life tenant passes away - life estate example | remainder example |
| types of ownership - severaly | ownership by one owner |
| types of ownership - co ownership | ownership by two of more persons (both legal and natural persons) |
| natural person | kayla barriere |
| legal person | Barriere LLC or estate/trust |
| how many types of ownership | two. severalty and co ownership |
| co -ownerhisp - tenancy in common | default, only type of co ownership that is inheritable, ownership interest can be unequal (60/40). unequal parts. if you die, your split can go to family. (time share or fee simple) |
| types of co ownership | - tenancy in common, joint tenancy, tenancy by the entirety |
| types or co ownership - joint tenancy | creates equal ownership interest (50/50). four unities (unity of tutle, time, possession, interest)/ surviorship. may be disolved by voluntary partition and partitiion action. NOT INHERITBLE. RIGHTS OF SURVIVIRSHIP |
| types of co ownerhsip - tenancy by the entirety | only for marries couples. simislar to join tenancy. automatic homestead/ cant force sale to satisfy spouses debt |
| time shares or fee simple estates are | inheritable |
| tenancy by entirety - seperate property states | tenants by entirety may sell or devise propoerty seperately. property aquired before or during the marriage is treated as individual propoerty |
| tenancy by entirety- equitable distribution states | NH is this. similar to seperate propoerty states during the marriage.. but in divorce, court aims to split the assets faily although not neccessarily |
| tenanty by entirety- community propoerty states | property aquired during marriage can only be sold or devised |
| condos - | conveys via unit deeds - individual onwership |
| condo association and docs | master deed, declaration of trust, master insurance, by laws, budget/servers, meeting minutes |
| condo fees | special assessments and super priority pien over non municipal liens |
| super priority lien | someone doesny pay condo fees - put above mechanics liens |
| public offering statement | applies to new condo propoerty offered for sale. cannot be used for promo purposes uuntil apprvoed. Includes : # and type of units in building, associations right and duties to owners, any easements or liens affecting titles. provided to potential buyers. |
| Public offerings statement continued | provided to potentnion buyers prior to making an offer. after reading rules, if you find something you dont like, you have 5 days to cancel the contract. in cancelled, the developer had 10 days to return the buyers deposit |
| cooperatives | shares - proprietary lease (no deeds, no master deed). ownership is conveyed threw lease |
| LLC owns | cooperatives. control of the llc is greater than a condo. LLC can come together to say you cannot lease or airbnb your unit ever. condo does not have that super controls that the llc has. |
| coperation owns | building |
| leases back to shareholders | proprietary lease |
| co-op board | approves rentals/sales. must always follow fair housing |
| coop fees | building mortgage/building tax bill |
| timeshares | condo- ing out of the year. you own for time rather than space. is fee simple. no condo fees but you do have maintenance fees. this is INHERITABLE |
| ANY PROPOERTY OWED FEE SIMPLE WHICH INCLUDES TIME SHARES OR TENANTS IN COMMON ARE | INHERITABLE |
| trusts | trusts allow someone to set asisde property for the benefit of another. |
| grandmother puts her house in a trust for young grandchild when they turn 21 | trust. created to avoid lengthy and expense probate process / drafted by attornies |
| declaration of trust | legal document that creates trust. propoerty deed will state name of trust and date it was created |
| trustor | created trust / grandmother |
| trustee | recieving trust |
| when a buyer recieves financing for a home, the money doesnt necessarily come from the same bank where | they applied for the loan |
| portfolio loans | loans that a bank keeps & services in house |
| secondary mortgage market | where banks sell loans to investors / typically package loans so they conform to standards of two major govt sponsored entities who buy loans |
| secondary mortgage market | fannie mae and freddie mac |
| certificate of no defense/estoppel cert | used to conifrm debt |
| mortgagor forwards future mortgage payments to new owner | mortgagor doesnt need to consent to the sale of their loan |
| helping families save their homes act | part of truth in lending act |
| fannie mae | fed national mortgage assoc |
| freddie mac | fed home loan mortgage corporation |
| portfolio loans | non conforming (off grid propoerties) |
| secondary mortgage market | conforming loans |
| fully amortized loans | copletely paid off at the last payment |
| amortization | payment of debt in equal payments |
| debt service | payments of the loan |
| principle | debt |
| fully amortized loans | also known as direct reduction loans / debt service pays both principle and interest |
| PITI | principle interest taxes insurance |
| how do fully amortized loans work | paid in equal installments, paid in full by last payment, amount of payment is going towards prinicple and interest / recalculated monthly / first day of each month ( 12 times in calandar year) |
| principle payments are always residual (fully amortized loan) | difference between total payment and interest due |
| fully amortized loan - with each payment made, the amount of the money going towards the principle increases and interest decreases | seesaw effect |
| discharge | final payoff |
| direct reduction loan | fully amortized loan (directly reducing the principle) |
| fully amortized loan math : with table | using table below, what would the monthly payment be on a 200k loan at 5% interest amortized over 30 years loan/1000 * PI = monthly payment |
| fully amortized loan math | 200k purchase price / 1000 * 5.37 = $1074 |
| fully amortized loan math | loan 450k, 5% interest for 30 years has PI factor of 5.37. 450000/1000*5.37 |
| fully amortized loan math : 375k for 30 years with 4% interest. monthly PI is 1791. what is outstanding Principle after one month payment? | 375,000 * .04 = 15,000 = 15000/12=1250= 1791- 1250 = 541 principle = 375,000-541= $374,459 |
| fully amortized loan math | price * interest rate then devide by 12 then subtract taxes per month from the monthly payment amount |
| a loan can be | fixed or adjustable |
| fixed rate | interest rate doesnt chage over time |
| adjustable rate ARM | interest rate is usually lower in beginning |
| teaser rate or discounted rate | adjustable rate |
| adjustable rate | based on prime + points/ payment does cap bank will carry it over to next rate increase |
| balloon loan | amortized period is longer than pay period / considered partially amortized |
| balloon | unpaid princinple due at the end of the term |
| straight and simple interest loans | interest only loans/ non compounding debt calculated daily/ principle paid in one lump sum at the end of the term |
| mortage has amoritization scheudel 4 years and repayment period of 2 years | balloon loan |
| an arm typically adjusts based on the | prime rate |
| second mortgages | junior liens |
| second mortgages | heloc, equity line, line of credit, open end. borrower given line of credit against line of equity. bank lends % of equity |
| equity | value - mortgage debt |
| graduated payment loans | monthly payment is lower in beginning, homeowner makes more money, payments increase. payments create negative amortization of interest. used for homebuyers with predictably rising incomes (doctors attorneys) |
| growing equity mortgage | extra payments made towards the princinple / pay off loans faster |
| reverse annuity mortgage (RAM) | bank makes payments to the borrower/homeowner against the equity home (must be 62+ years old to use). loan plus interest must be repaid when home is sold of homeowner passes |
| ram mortgage | 62+ years old to use |
| mortgage | collateral in order for you to pay the note |
| seller financing = purchse money mortgage | seller financing |
| mortgagee (ee receiver) | seller |
| mortgagor (giver) | buyer/borrower |
| wraparound mortgage | seller wraps their existing debt around the borrowers new loan. helps seller pay off their existing debt while making extra money |
| construction loans | to build properties ; borrower recives funds in draws / loan typically gets replaced once construction is compelte |
| rehab/reno loans | includes reno costs in the purchase of refi of a property, used to repaid, renovate and modernize, can be govt backed conventional, or in house financing from bank. varying terms and arrangements |
| package mortgage | covers real and personal properoty (trade fixtures)kop ; ex mecnahic buyer garage with equipment inside |
| chattel mortgage | secured by personal proerty only ; buyer farm equipment |
| blanket mortgage | used for developmental of subdivions where there are mutiple lots / includes partial release clause / typically used by developers |
| non recourse loans | borrower not personally liable for on loan deficiancy after foreclosure only the propoerty is the secuirty for the loan, typically used by developers |
| bridge loans or swing loans | short term loans that bridge the gap in cash flow |
| participation mortgage | lender participated as an equity partner in a development |
| shared appreciation mortgage | investor makes a downpayment for a buyer in exchange for share in property equity |
| buy down or pledged account mortgage | often seen in markets where interst rates are very high, subsidy for certain number of years to make monthly payments affordable : |
| if seller subsidizes | buy down |
| if buyer subsidizes | pledge account |
| take over mortgages | subletting of mortgage / buyer takes over sellers debt and original loan stays in place / buyer would pay seller their equity and recieve a deed along with right to redeem title after paying off the loan |
| subject to (best for buyer) | only original mortgagor is liable |
| assignment (joint responsibility) | both original mortgagor and new owner are resonsible |
| novation (best for seller) | both original mortgagor and new owner are respsonible/liable |
| purchase money mortgage | owner financing |
| nick get sloan only pays 5% interest during the duration of the loan and must pay off the principle in its entirety on his last payment. | straight loan |
| rachel sells her house to thomas, subject to an exsisting loan thomas later defauls on the loan. which is correct? | only rachels credit will be impacted |
| licenses protect the | public - for the public good |
| police power | govt right to enact laws |
| licenses required | anytime you represent someone else in a re transaction and get paid or expect to get paid |
| laws made by | the nh state legistlature |
| nh real estate practice act | outlines licensing requirement, eithical standards and good moral character, procedures and transactions, establishes re commision |
| NH RE commision | under office of professional licensure and certification OPLC, in concord |
| NH RE commision make up | 5 members, two brokers, 1 RE salesperson, 1 lawyer and 1 member of public to protect the public |
| i licenses test | 3 months from registering for exam, 6 months to apply for license after passing exam |
| salesperson license | may not handle escrow accounts |
| realtors | membersihp in trade organization nation association of realtors, pledge to code of ethics, pay membership dues and join local chapter |
| RE transactions | two RE agents ; the buyers agent and the listing sellers agent |
| buyers agent | represents buyer |
| sellers agent | represent seller |
| RE brokerage relationships | client/principle-> brokerage/ special agent principle-> salesperson/subagent (agents agent) |
| compensation for salesperson | most agents are 1099, only paid when sale occurs, tax implications and tax dedcutions |
| written independent contractor agreement | covers commision splits, when agent is entitled to pay, who owns listing, relationship termination rules etc |
| commissions and broker splits | always negotiable |
| general liability insurance | covers personal and propoerty famage at office or on showings |
| professional liability insurance | E&O, covers mistakes made by agents during transaction |
| commisions are earned when you | are the procurring cause of sale, produce a ready, willing, and able buyer who fufills their end of the agreement |
| commsision math : seller wants to net 100k after they pay 5% commision. what should they sell for | net sales price + costs / 1- commision % = sales price |
| commsision math example : seller wants to net 100k after they pay 5% commision. what should they sell for | 100,000 /.95 = 105,263.16 100,000 * 5% = 5000 100,000 + 5000 = 105,000 |
| commsision math with expenses : seller wants to net 210,000. they will pay 6% and estimated expenses of 1212. what should they sell for? | net sales price + cost / 1- commision : 210,500 + 1212 = 211712 /.94 = 225225.53 listing price |
| FTC Do not call | created in the do not call implemantion act of 2003. unsolicted business calls to residental numbers on the registry. includes calls and text messages to mobile numbers and landlines |
| robo calls | banned |
| FTC Do not call | fines up to 50,120 per call |
| FTC do not call list exceptions | exsisting relationships under 18 months and For sale by owner |
| telephone consumer protect act (TCPA) and junk fax prevention act | both prohibit unsolicited fax advertisements : must have exsisting relationship |
| advertising regulations : controlling the assult of non solicited porn and marketing act of 2003 (can spam) | requires electronic messages (email) to include business address and unsubscribe or opt out option |
| childrens online provacy prevention act (coppa) | requires business to provde detailed provacy policy if data is collected. strictly limits collection of data from those under 13 years old. |
| interstate land sales disclosure act | intent to sell must be filed with the consumer financial protection bureau. applies to any interstate sales of subdivisions that contain 100+ lots or condos, 25 lots or condos simultanously, or lot size 20+ acres |
| social media advertising; social media posts are a form of advertising | fall under the same rules as an ad in the paper or tv. all posts written, photo or video are subject to fed and state laws. includes public, private, personal and business accounts paid or free |
| federal fair housing laws, truth in ledning, truth in advertising, nh fair housing law and nh licensing law | social media advertising ensure posts are compliant with |
| federal fair housing laws, truth in ledning, truth in advertising, nh fair housing law and nh licensing law | no puffing or misrepresentation, no discriminating laguage or visuals, posts may never involve bait and switch tactics, brokerage info must be displayed, all conflicts of interest and material defects need to be disclosed, never disclose personal info |
| sherman antitrust act | passed in 1890 to prohibit anti competitive business practices |
| sherman antitrust act prohibited practices | price fixing, geographic visions of markets (market allocation), group boycotting, contingent sales (tying or tie in) |
| price fixing | establish uniform pricing amoung competitiors |
| market allocation / geo divisions of market | agreements to split up territory |
| group boycotting | refusal to do business with a competitor or non competitor |
| contingent sales (tying) | sales or service is reliant on the purchase of something else |
| sherman anti trust act | violation occurs when 2+ people agree to act (implicityly or explicitly) and the agreed upon act restricts trade (limits compeition) |
| sherman anti trust act - penalities | corporations: criminal penalty of 100 million per offense individuals: one million per offense + up to ten years federal imprisonment |
| sherman anti trust act : commisions and commision splits are completely negotiable | there is no standard, realtors may no longer represent the buyers commision as free to consumers or that the seller pays the full fee |
| start on govt financing programs page 3 | 5/4 |
| monetary policy | management of the money supply (impacts the pricing and availability of credit) |
| two major entities impact monetary policy and interest rates | the fed reserve (central banking system of US) the us treasury : pays for cost of running govt and does this by borrowing money, raising taxes and printing money |
| prior to 2015, a bank needed to provide a | bona fide good faith estimate for the charges of a RE closing (used the uniform settlement statement form HUD 1 |
| in october of 2015, dodd frank act and consumer financial protection bureau changed some RESPA requirements and processes | Now required TILA RESPA Integrated Disclosure forms |
| TILA RESPA Integrated Disclosure forms | Loan Estimate Form : Details of closing costs, must be given to consumer no later than 3 business days after loan app and atleast 7 days before closing date Closing Disclosure : must be given at least 3 day sprior to date of closing |
| TILA RESPA Integrated Disclosure forms | closing disclosure form : must be given 3 days priort to date of closing and if loan chnages or interest rate adjusts by 1/8% or more a new 3 day waiting period applies |
| RESPA : RE Settlement Procedures Act | lenders must provide info about closing costs for financing 1-4 fam residential homes. no unearned fees (kickbacks) in connection with def mortgage loans and ldner must report to IRS transaction |
| Affiliated Business Arrangements (ABAs) | Any real estate service providers who pakcage services together are permitted |
| ABAs | all firms must share atleast 1% common ownershp Consumer must be fully informed consumer must be given options if desired can be paid for services and recieve a return on their investment not to exceed 1% + investment no additional fees |
| truth in lending act (regulation Z) | enforced by consumer financial protection bureau provides consumers with full disclosure of the costs of credit |
| advertising of specific loan terms requires lenders to calculate their costs of credit | must express them as APR APR inlcudes interst rates, points, loan fees, disclosure of penaliteies APR doesnt inlcude municiple taxes, attonrye fees and credit reports |
| APR includes | interst rates, points, loan fees and disclosure of penalties |
| APR does not include | municiple taxes, attorney fees and credit reports |
| when is regulation Z triggered | anytime specific loan terms advertised or discussed |
| real estate agents fall under | TILA (truth in lending Act) |
| proration | expense that is prepaid or unpaid at closing will be prorated / reflected on closing disclosure |
| credits/debits | prepaid is credit to the seller/debit to the buyer Unpaid is a debit to the seller/credit to the buyer |
| who does the closing below to? | the seller |
| 360 days in calandar year unless otherwise stated | dot |
| taxes run on | fiscal year july 1st- june 30th unless otherwise stated |
| example of proration | jan 1, seller pays 3500 for 6 months of propoerty taxes : prop sold may 1st. what does buyer credit seller? 3500/6 = $583.33 2 months 583.33 * 2 = 1166.66 |
| Cash to close math: Buying condo for 400,000 and already put deposit of 1000 and P&S deposit of 19,000. Zayne putting down 10%. closing costs total 7k what does he bring to closing? | 400,000 * 10 = 40k 47,000-20,000= 27k |
| equal credit opportunity act : ECOA | prohibits discrimination in lending |
| redlining | any type of discrimination in lending |
| predatory lending (to decive) | any unfair, deceptive, or abusive lending (unfair high interest rates or loan flipping) |
| usury | charging an illegally high rate of interest (CAP) |
| RE sales must be reported to the | IRS by lender and includes sales price, names of parties, tax ID and SSN (VIA form 1099S) |
| foreign investment in Real property tax act of 1980 | 15% of proceeds from the sale of property by non citizens must be withhled: buyer must forward to the IRS |
| investment taxes | income properties typically generate income and are subject to income tax. to reduce tax liability owners may write off decpriation known as book or cost recovery |
| depreciation | loss given to you by irs : only improvements can be depreciated |
| what happens when a investment propoerty is sold | capital gains taxs / depreciation recapture tax |
| 1031 like kind exchanges | way to defer payment of capital gain tax must reinvest the proceeds from the sale into another piece of real estate within 6 months unreplaced property value or reduced mortgage debt "boot" is taxable |
| defer | transfer to later date not eliminate |
| residential homeowners may write off | mortgage interest and property taxes |
| residential homeowners may write off | up to 750k of mortgage debt |
| residential homeowners may write off | up to 10k in propoerty taxes including any state tax write offs |
| taxpayer relief act of 1997 | portion of profit on primary residence is sheltered from capital gain tax (single 250k and married 500k) but must be primary residence for at lesat two of last 5 years |
| consumer protection | 5/5 |
| consumer protection laws | safeguard purchasers against deceptive products and fraudulent/unfair practices |
| caveat emptor | buyer beware |
| consumer protection laws | fed govt oversees through the fed trade commision : uses agencies and statutes to enforce laws (NH Consumer protection and antitrust bureau/office of the AG) |
| puffing | overselling a product in a misleading way |
| home inspections | objective visual exam of physical structure and systems of property gives buyer ability to have a general picture of condition of property (not required) |
| NH is a | caveat emptor state |
| both buyers and sellers agents in nh can | provide recommendations for home imspectors services to prospective buyers. it is not required to recommend multiple but it is suggested |
| if sellers knows | they must disclose |
| hazardous materials do not | prohibit the sale of RE Do not have to be removed prior to sale of home |
| brownfields | lands that have previously been used for commercial purposes |
| Greenfields | lands that have not been contaminated |
| nh dept of environmental protection DEP | provides liability relief & financial incentives to clean up contaminated sites |
| lead was banned in | 1978, prior to 1978, lead was used in homes |
| lead paint | if ingested can cause damage to brain kidney nerves and blood (esp children under 6). also linked to behavioural issues and learning disabilities |
| presences of lead paint must | always be disclosed |
| lead paint prevention and control act of 1993 | allows inspection of rental units and licensed childcare facilities when a child under 6 tests positive for lead |
| protect your fam from lead in your home pamphlet (EPA) | required for prospective purchasers for RE built prior to 1978, must sign prior to P&S : buyer given 10 day lead paint inspection provision by fed law but thye can waive it and is not a lead paint contingency form : RE agents are responsible for providin |
| seller responsible for providing leads forms to buyer in | FSBO |
| it is the agents job to attempt to gain and gather lead forms from sellers of | FSBO |
| if lead if found after renting to a family with a kid a landlord can | remove the unit from the rental market or relocate family during the lead reduction. They can offer replacement dwelling with no lead exposure. once lead is remedied, landlord can rerent unit |
| no deleading required for | short term housing. IN NH, there is no exemption. the federal law is any housing less than 100 days but does not apply in NH |
| asbestos | used as insulation material and fire retardant |
| prolonged use of asbestos leads to | esbestosis, mesotheliomoa and lung cancer |
| asbestos banned in | 1989 and overturned ban in 1991 : used in constuction materials for homes and banned in 1978 : installers could use up their stock until 1986 : mostly used in ceitlings and heating pipes |
| asbestos dangerous when | in poor repair or friable state : must be removed or encapsulated if possible. removal must be done by licenses contractor : DEP and DLS must be notified 10 days prior to removal |
| Radon | colorless and oderless gas : natural breakdown of radioactive elements in soil. causes cancer. |
| radon | homes in high risk zones shoudl be tested esp first floros and basements. EPA recommends mitigation levels of 4+cCI/L. notice must be given to homebuyers prior to signing P&S |
| radon contingencies often | build into home inspection contingency. can always add additional radon contingency for buyers. |
| mold | occurs due to damp envornment with poor ventilation ; common in vinyl wallpaper, exterior insulation finish systems and hvac ducts |
| stachybotrys | genus of mold that contains 50 different specifies |
| S chartarum and S chlorohalonata | black mold : most toxic and linked to air quality indoors that can cause health issues |
| homeowners insurance often excludes | mold |
| mold disclosure is required in | rentals. failure to remove mold by landlord is a violation of state sanitary code. could become grounds for constructive eviction |
| UFFI : Urea-formaldehyde | insulation material when borken down causes formaldehyde vapor. banned in 1979. doesnt have to be disclosed. material so old not considered very toxic anymore. |
| chlordane | used to treat pest infestations in 1940s-1980s. acted as chemical barrier between insects and home. toxic impacts wel water and air quality |
| PCBs | polychlorinated biphenyls : more than 20o chemical compounds that arent found naturally. flame resistence in electrical equipment. causes cancer. mostly found in commercial properties |
| cfcs | chlorofluprpcarbons : non toxic no flammable chemicals. used in refrigerants in AC fridges freezers aerosol sprays and paints. casues ozone layer depletation |
| USts | underground storange tanks : storage for chemicals or gas. more then 10% buried underground. disposal required presense of fire dept and DEP |
| arsenic | common groundwater containment : must be disclosed in NH |
| water should be tested in private wells for | arsenic. if found in groundwater, recommend water filtration company to mitigate contaimination. notice must be given to buyer and signed prior to P&S contract |
| safe water drinking act of 1974 | premits EPA to set standard for drinking water. issues must be disclosed. NHsafe drinking water act |
| if buyer is purchasing property with well water or non municipal water system | recommend water test for contaimination |
| NH smoke detector regulations | statewide building codes govern smoke detctor regulations municipalities can make their own more strict codes but cannot require any 1 or 2 family homes to install fire supression sprinkles |
| residental home inspectors will generally check to ensure houses have | smoke and carbon detoectors even if they are not required |
| construction warranties | promises about materials and quality of work. all prodcuts used in contruction were new anad of good qaulity free from defects and work has been prodcued to agreed upon contract. builders sometimes give 1 year warranty but not required |
| purpose of fair housing is the ensure | fair and equal access to housing by making types of discrimination illegal |
| fair housing laws work by preventing discrimination based on | protected classes ; something you cant change about yourself |
| who must follow fair housing | everyone in RE tranactions (sellers, buyers, brokers, agents, landlords, lenders and appraisers) with limited exceptions |
| why is fair housing important | shelter is basic necessity : health is major to wealth and education. fair and equal housing is critial to social and economic mobility |
| primary residence | single largest contributor to most household net worth |
| school funding | primarily determined by local property taxes |
| discrimination was historically | prevalent and premitted |
| US fed loan programs (FHA and VA) offically denied and limited lending in non white communities until | 1968 (redlining) |
| housing developments lawfully used racially restrictive convenants until | 1948 but continued to use unenforceable racially restrictive covenatns until 1968 |
| RE agents and lenders could legally discriminate until | 1968 |
| 1936 federal housing admin underwriting manual | offical guide used by underwriters approved federally backed loans created as part of the New Deal (redlining) |
| 1936 federal housing admin underwriting manual | outlaws in 1968 but have lasting effects on household wealth and education access |
| many types of discrimination are now | illegal but still prevelant |
| 2019 undercover investigation on long island found that | discriminatied against asian hispanic and black clients. directed white and non white clients to diffeent neighborhoods 24% of time (steering) provided whites with 50% more listings on average than black clients |
| 2017 suffolk law study found | transgender and gener non conforming renters discriminated against 61% of time |
| fair housing center of greater boston found | familes with children discriminated 33% of time and families using housing assitance discriminated against 67% of time |
| 2020 boston foundation, suffolk law and analysis group in greater boston area | 71% of black renters were discriminated against in search and 86% of renters using saection 8 vouchers were discriminated regardless of race |
| impacts of historical and presnet day discrimination | are significant |
| fed fair housing law timeline | civil rights act of 1866 no discriminations based on race: 1865-1877 reconstrction era : 1870-1964 JIM CROW LAWS : |
| federally protected classes | race, color, national origin, religion, sex, familial status and disability |
| NH protected classes | race, color, national origin, religion, sex, familial status and disability + marital status, age, gender identity and sexual orientation |
| what is not a proetcted class? | students, occupations and veterans |
| Fair housing prohibited activities | refuse to work with someone wrongfully terminate a contract or relaionship differentiate terms and conditions for different people advertising engage in blockbusting or panic selling/peddling steering use covenants or restrictionrs to limit occupan |
| Fair housing prohibited activities | prohibit someone from joining professional RE organizations discriminated either intentionally or unintentionally can never ask where are you from or do you have children |
| Fair housing prohibited activities : refusing to work with someone | cant refuse someone services based on protected class. eX: refusing to show a listing to tenant wiht 2 year old because of lead paint. ex: cannot terminate lease when someone becomes pregnant Ex: cannot select buyer in multiple offer situatin |
| cant impose different or additional requirements based on | protected class ex: charging extra rent for chilren. |
| HUD = 2+1 occupancy rule | 2 adults + 1 infant per bedroom. local sanitary and fire codes still apply |
| disciminatory advertising | illegal to specify preference based on protected class ex: empty nesters, immigrant community, no drinkers details mentioned in ad |
| disciminatory advertising : only exemption | rommate seeling same sex roomate due to shared living per title 24 of fed regualtions |
| illegal to target or exclude protected classes | HUD lawsuit against FB for RE ad targeting |
| disciminatory advertising | covers all advertising not just print tv and radio : includes MLS posts, online listings, social media and websites |
| cannot advertise | no dogs, no exeptions perfect for young couple or single person family room his and her sinks (instead say double sinks) |
| falsifying availability | lying about property being unavailble to avoid working with member of protected class : saying already retned to avoid renting to a single parent |
| advertising best practices | onLY ABOUT PROPOERTY AND NOTHING ABOUT THE PEOPLE |
| advertising best practices | do not state prefernce for or excluse certain groups of people include fair housing logo or equal housing opportunity tagline any pictures with people in advertisment should be inlcusive always be truthful about price, features aim to broaden |
| blockbusting | solicitaion of property for sale or lease based on the alleged or percieved entry into a neghborhood of protected class |
| blockbusting | originiated in chicago whenRE agents convices white homeowners to sell their properties back to them for low costs because black familes were moving into neighborhood |
| blockbusting | agents get homes for cheap, then sell to black clients for higher costs and repeat the process |
| blockbusting creates | PANIC SELLING OR PANIC PEDDLING : CANNOT DISCSUSS DEMOGRAPHICS IN RELATIONS TO PROPERTY VALUES = POTENTIAL BLOCKBUSTING |
| as a RE agent, you do not | pick propoertues for your client or custumer |
| steering | directing someone towards or away from neighborhoods based on protected class Ex; only showing hispanic clients hipanic neighborhoods |
| steering | do not make assumptions about where clients want to live do not limit listing areas you share with ciletns if they meet clients eocifications do not provide clients with deomgraphic info avoid opining about beigborhood safety and about school distrci |
| do not dicuss | school demographics |
| restrictive covenants : sehlley v kraemer | supreme court case in 1948 that made racially restrictive CC&Rs illegal (covenants, conditions and restrictions) |
| levittown, NY | original deeds contained covenants restricting ownership to members of the cauccasion race |
| Professional organizations | Realtors, MLS, local professional groups cannot limit membership based on a protected class |
| implcit bias | automatic unconscious associaation of stereotypes or attitudes about a particular group of poeple |
| all people have | biases : preferences or aversions to certain things can develop over the course of ones life |
| implicit bias can lead to | discrimination without being consciously aware of it |
| examples of implicit bias | "RE agent saying this is their type of neighborhood or youll be happier in this part of town" RE agent responding to client of same race even if their schedule is harder to accomadate than client of different race |
| how to override implicit bias to ensure fair and equal treatment in RE? | develop strict to follow (listing presentations), create propcols to follow with every single client (transaction checklist) and manage mindset so interpersonal interactions are respectful and non discriminatory including script checklists |
| disparate impact | occurs when policies, practices, rules, or other systems that appear to be neutral result in discrimination against protected group |
| implicit discrimination is as destructive as | explicit discriminations |
| Example of disparate impact | landlord evicts tenat if emergency services called 2 times in 6 month period : negatively impacts victims or domestic abuse |
| Example of disparate impact | landlord required tenant to have full time job when considering application. discriminates agaisnt tenants with disabilities or single parents |
| in june of 2025, us supemer court recognized disparte impact claims under the | fed fair housing act in the case taxes dept of housing and community affrais v inclusive communities project |
| fair housing poster | a HUD equal housing opportunity poster must be posted in ever RE office : NH fair housing law poster must be posted in every RE office failure to post is prima facie and evidence of discrimination |
| fair housing penalties and violations | any person may file complaint with dep of housing and urban dev (HUD) within 300 days from alleged date of discriminate (2 years in privat elawsuit) |
| a HUD admin law judge (ALJ) can fine | 1st offense: up to 24,793 2nd offense within 5 year: up to 61,982 2nd offense within 7 year: up to 123,965 additional civil penalites between 50k-100k+ no limit on civil potential cominal if fed lawfuit filed within 2 years |
| fair housing NH penalities and violations | 1st offense ; 10k 2nd offense in 5 years 25k 3rd offense in 7 years 50k |
| fair housing best practices | treat everyone the same created cheklists add HUD logo to emai signautre talk about properties not people do not make assumptions always follow the law |
| NH licensing law | licensing law comes from NH state legistlature : created to protect the public |
| NH RE commission enforces | NH licensing Law |
| NH RE Commission | Part of office of OPLC Concord Enforces law issues and renews licenses |
| The NH RE commision consists of | 5 members 2 RE brokers, 1 RE salesperson, one lawyer, and one member of public one person elected as chairperson and 1 elected as clerk must be state resident for 6 years appted by governor paid 50 per day of active duty plus mileage meet 4 |
| who is required to have a RE license | anynone engaging in RE related activety on behalf of someone and expects to or does get paid |
| exceptions on who needs to have RE license | general public buying selling renting for themselves public officers performing offical duties owner/operator of manufactored housing parks lawyers and auctioneers matchmaking services (apt house locator) trustees anyone acting under court order |
| exceptions on who needs to have RE license | executor of an estate condo association renting units for less than 30 days |
| RE salesperson | must work under broker not permitted to handle client money or take listings, 40 hour co may become broker after: 60 hours course, 1 year ft work experience or 2000 hours active, part time experience, good moral character and passing state broker exam, |
| RE broker | allowed to work for themselves must be bonded for 25k can handle escrow funds and take lstings (only employing broker) and no longer hold salesperson license once broker license is obtained |
| broker bond | surety bond to benefit any person harmed by a loss or mishandleing of escrow funds by broker |
| every 2 years | core course plus continuing education |
| license status: active | has license and practices real estate must be affiliated with brokerage or be a broker of record remains up to date on al CE and fees may get paid for their services and collect commisions |
| license status: inactive | keep license but cannot pracitce real estate putting it on the shelf or freezing send written request to commision renew license biennially by competeing continuing ed maintaining a place of business no required cannot collect referral fee |
| inactive brokers | no surety bond required |
| renewal date of license | last day of month of your licensure |
| licenses status : late | renewing license after deadline submit app up to 6 months after expiration with renewal fee compelte 9 extra hours of CE in addition to credits claimed for renewal |
| License status : lapsed | renew after 6 months but before 12 months with 60 late fee must include proof of 40 hour pre license course must include written statement with renewal app cannot practive RE |
| License status : expired | failed to renew by renewal date become a new, original applicant going forward cannot practice RE |
| ex of license needed or not: sally helps mom buy house. after sale, deb gives daughter 100 check. | yes |
| ex of license needed or not: tim is an investor who buyers older homes. renovated and sells for profit | no |
| ex of license needed or not: georges uncle needs help negotiating a few offers that was listed for sale by owner. georges uncle tells him if he spends sunday helping his he will send him on a 5 star vaction | yes, good consideration, any form of payment, anticipation of payment |
| ex of license needed or not: jamie works for town and is responsible for selling properties at tax auctions | no |
| ex of license needed or not: riley an assitance to a broker is responsible for directing leads to agents, filling paperwork, and sending congrtulations to cilents who moved to new homes | no |
| license is renewed | every two years ; biennially |
| CE for license renewal | 3 hour core course and 12 hours CE : 1st renewal requires specific course topics per state law inactive licensesees must compete 3 hour core course |
| broker must inform commision when they | hire RE licensee |
| Re licensee may never | work for more than one broker at a time |
| brokers have | vicarious liability for their licensee activites |
| licenses must be displalyed | in the broker workplace |
| broker can never hire | unlicensed persons |
| escrow accounts | trust accounts. special bank accounts for holding client money must be seperate from brokers personal or business accts commingling strictly prohibited 90-60 day release rule brokers must maintain escrow records for at least 3 years |
| commision can | inspect brokers escrow files at anytime to be sure 3 year records being kept |
| escrow accts | deposit checks must be turned over to broker immediately broker RE salesperson return money to client as soon as possible covnersion of a deposit must be written permission from both parties |
| if there is a dispute about escrow money, broker needs | court order to release funds |
| RE LLCs | must have brokers license must designate one of their officers as a broker of record if broker of record dies, entity may operate up to one year |
| RE LLCs | if sole propriertor dies, commision issues temp license good up to one year can be anyone who was chosen by the estate of the deceast agents need written permission to list propoerty on mls for a sale sign |
| all money paid to agents must come from their | employing broker only |
| brokers must keep records of rental fees paid for up to | 3 years |
| nonresidents can become an | agent or broker by filing an irrevocable consent and power form |
| real estate commisions are | always negotiable; no standard |
| agents must be licensed at time of service to be entitles to a commsision | fine for practicing without a license is 10k |
| all offers written or verbal must be | presented to the client |
| brokers must maintain advertising records for | 3 years. bait and switch tactics are prohibited |
| no blind advertising | must include name and phone number of brokerage in any ads |
| agents must disclose any | conflicts of interest in writing when representing themselves as a client, family members, or business associates |
| written disclosure required if purchasing property that | agent represents |
| NH does not have | full reciprocity with any other state |
| NH has limited reciprocity agreements with | georgia, mass, maine, vt |
| License portability: physical location state | out of state licensees may not perform in person RE services and they must stay in their home state to recieve commision |
| license portability: cooperative state (this is what NH is) | out of state licensees may perform in person RE services but they must enter into written co broke agreements with the in state licenseee |
| license portability: turf state | out of state licensees may not perform in person or remote RE services and they must ferer out and can recieve referral compensation |
| mandatory agency disclosure form | brokerage relationship disclosure form is required for sales in NH disclosed potential relatipships between agent and client must be igven at first business meeting dicsussing property (if not in person meeting, must be given electronically or mail) |
| mandatory agency disclosure form cntned | client signs, dates and if they decline to sign, that must be noted must keep records for 3 years exception with open houses |
| exception with open houses :mandatory agency disclosure form | brokerage relationship disclosure forms are not required. must dicslose agents relationship to seller in sign and brochures |
| Types of agency on NH disclosure form | representation arrangement |
| types of agency : sellers agent | represents seller and owes seller OLD CAR |
| types of agency : buyers agent | represents buyer and owes buyer old car |
| types of agency : disclosed dual agent | represents both buyer and seller in same transaction and needs consent from bother parties in writing |
| types of agency : non designated agent | owes old car to all clients of the brokerage broker of record and all agents become dual agents |
| types of agency : designated agent | appointed agent designated another agent to represent client broker of record becomes dual agent |
| types of agency : facilitator (non agents, tranaction brokers or coordinators, contract brokers) | assist buyers or sellers in reaching agreements dont represent either party must act honestly and disclose any defects, but no confidentiality required |
| aingle agency represents | the boyer or seller but never both |
| subagency represents | working for one firm but engaged by principle broker of another firm to perform agency functions on behalf of the principle brokers client |
| NH License Law violations : | failure to present NH disclosure form or provide copy of RE contract to one of the parties |
| NH License Law violations : | encouraging party to break real estate contract for personal gain |
| NH License Law violations : | undisclosed dual agency |
| NH License Law violations : | failure to disclose a conflict of interest in writing |
| NH License Law violations : | licensess didnt diclose that they were principle in RE transaction |
| NH License Law violations : | accepting a new listing (commision is not specified) |
| NH License Law violations : | false or fraudulent representation when licenses was obtained |
| NH License Law violations : | undisclosed kickbacks (rebate or commision on expenditure by principle) |
| NH License Law violations : | commingling client money with business or personal funds |
| NH License Law violations : | failure to return client money in reasonable time |
| NH License Law violations : | referral fees or commisions paid to unlicensed person |
| NH License Law violations : | licenseee acted as RE agent while intoxicated |
| NH License Law violations : | licensess failed to notify the commision of a criminal conviction within 30 days |
| NH License Law violations : | any violation to NH fair housing law |
| suspension & revocation of license process | 14 days written notice of hearing legal rep permitted by not entitles commision has subpeana power and can call witnesses decsision can be appealed in superior court within 30 days |
| suspension & revocation of license penalties | suspend, revoke, deny license fine up to 2k for each offence require additional coursewokr relevant to violation |
| easements | right of way or use not ownership, but a right runs with the land ingress and egress ex: shared driveway or beach access |
| dominent tenement | one with the right of way/use |
| servient tenement | on encumbered by the right (owner of the land is serving the person with the dominent tenement) |
| easements appurtenant | rights of way concerning two adjacent lots of land : 4 ways by deed, by implication, by necessity, by persciption |
| easements appurtenant : by deed | easement created by deed when propoerty is sold easement grant: owner grants easement express reservation: owner retains an easement |
| easements appurtenant : by implication | easement is implied through sale of property seller intended for an easement but failed to do so |
| easements appurtenant : by necessity | court grants an easement (landlocked land) |
| easements appurtenant : by perscription | easement aquired through ONCHA |
| ONCHA | open, natorious, continuous, hostile, adverse |
| two ways to remove easement appurtenant | combine two lots into one reason for easement no longer exsists |
| easements in gross | personally held easements granted in deed not ajoining lots of land irrevocable EX: seller grants permission to an electrical company for an easement |
| easements liceenses | temporary, revocable rights to use someone elses propoerty Ex: town recieved license to setp on someones front lawn while installing a sidewalk, a fishing license, ticket to sporting event |
| encroachments | intrusion of an inprovement on anothers land ONCHA Misaligned shed or fence leaning into neighbors yard |
| enviornmental impact statements | national enviormental protection policy required to determine how a development will impact an area and how a developer will handle that |
| enviornmental laws | the comprehensive response compensation and liability act referred to as CERCLA or superfund act superfund amendments and reauthorization act (sara) |
| enviornmental laws | the leaking underground storage tank program (LUST) the clean water act (CWA) national flood insurance program (FEMA) Coastal zone mangement Act Endangered species act hazerdous materials transport act (HMTA) LEED cert |
| accretion | gradual additional by wind or water |
| alluvion | an increase of land by water |
| alluvium | the sand, gravel, silt, or clay deposited via alluvion |
| aeolian soil | loose sandy soil deposited by wind |
| avulsion | sudden removal or addition of land by wind or water |
| erosion | the gradual subtraction of land by wind or water |
| reliction | the sudden retreat of water |
| shoreline | the mean high water level |
| sand dune | a hill or ridge or sand piled up by the wind |
| great pond | any natural bodies of water 10+ acres |
| high water mark | the waters level at high tide, or if by a lake or river, its highest stance |
| reference line | the highest water mark that determines setbacks |
| liens | financial limits on propoerty |
| first in time | first in right |
| liens can be | voluntary - taken on willingly involuntary - imposed by third party |
| general liens | covers all propoerty of debtor |
| specific liens | only covers propoerty indentified by the lien |
| judicial liens | put in plance by the court |
| statutory liens | put in place by laws |
| mortgages | voluntary specific lien, security for a home loan |
| installment sales contract | voluntary, conditional sales contract, contract for deed or land contract specific vendor= seller Vendeee = buyer seller holds legal title buyer holds equitable title |
| propoerty tax leins | involuntary, specific, statutory prioerty lein that is paid first |
| condo / HOA lien | specific and statutory lien super prioertiy ; except liens recorded before master deed, any municple liens or first mortgage deed of trust if recorded prior to delinquancy |
| mechanics liens | specific and statutory lien sued by contractors who arent paid for work done and creates a cloud of the title |
| federal tax liens | general and statutory lien ; used by IRS ; etsate tax liens |
| judgements | general and judicial lien ; sheriffs sale |
| attachments | general or specific and judicial lien ; lis pendens |
| red flags that warrant investigation | agents required to look out for client best interest |
| best practices | check prperty deed and HOA, condo or coop docs for restrictions review assessir card, tax records and plat map check if building permits pulled and left open |
| for easements or exclusive rights (roof deck) | ask for supporting documentation if they are not in the deed |
| real estate is transferred with a | deed |
| deed | receipt for real estate (proof of ownership) legal document that transfers title to real estate physical document ; tangible |
| title | ownership concept of ownership conveyed (transferred via a deed) intangible |
| parties involved in a title transfer | grantor = gives ownership grantee = recieves ownership buyer recieves new deed |
| a property owner can lose title by | involuntary alienation - forces loss of ownership (foreclosure) voluntary alienation - willing loss of ownership (selling propoerty or willing it) |
| deed essentials | must be in writing grantor must be legally competent (signature required before notary or commissioner) name and address of grantee but signature not required exchange consideration legal descrip of land granting clause delivery and acceptance |
| habendum clause | to have and to hold seen in life estates and other fee simple defeasible estates outlines ownership limitations |
| a valid deed does not need | be recorded not signed by grantee and doesnt need a date |
| recordation | act of making title transfer public record at county registry of deeds provides constructive notice - public notice as compared to actual notice which is told something specifically |
| recordation is | recommended but not required |
| NH Specific :all deeds, conveyances, and court orders which affect title | must be recorded at the registry of deeds where the propoerty is located |
| specific to NH Deeds : manufactured homes are | recorded twice in relocation |
| full legal land description | property address land description title reference |
| land description | drafted by licensed surveyor who performs land survery survey sketch and spot survey |
| survey sketch included in land description | shows location and dimensions of land |
| spot survey in land description | shows location and dimension of the land plus location size and shape of improvements on the land |
| land survey measurments | link, foot, yard, rod, chain, furlong, mile, acre, square mile |
| 1 link | 7.92 |
| 1 foot | 12 inches |
| 1 yard | 3 feet |
| 1 rod | 16 ft 6 inches |
| 1 chain | 66 ft |
| 1 furlong | 660 ft |
| 1 miile | 5280 ft |
| 1 acre | 43,560 square ft ( 1 chain * 1 furlong) |
| 1 square mile | 640 acres |
| 3 types of land descriptons | metes and bounds lot and block govt rectangular survery |
| combination can be used | metes and bounds/ lot and block or metes and bounds / govt rectangular survery |
| metes and bounds survery | most common land secription points of beginning and end always the same |
| metes and bounds survery | lot lines or boundaries are always described using bounds = directions (north, east) metes = distances (meters, yards, feet) monuments = markers (concrete posts) benchmarks = permenat markers estb in US Datum = point used to measure elevation |
| datum | point used to measure elevation defined at mean sea level of a local office datum ( NY harbor) |
| lot and block survey | plat maps = recorded plans for subdivsion/municipality using lot and block method (must be done by licensed surveyor) divides land into blocks using streets Further subdivides blocks into lots using metes and bounds |
| Government Rectangular survey system | also know as public land survery system or rectangular survery system land ordinance act of 1785 standardized land descriptions used in most of country not original 13 colonies divides land into smalled squares like a cake |
| priciple meridians | run north-south references by a number / 37 total |
| base lines | run east to west |
| tiers or township lines | run east to west |
| range lines | run north to south |
| townships | squares created by the intersecting of tiers and range lines |
| townships are | 6 * 6 miles containing 36 squ miles (23,040 acres) |
| each township is designated based on | tier where it is located range name and number of its prinipal meridian |
| govt rectangulat survery system :townships are divided into | 36 sections sections = 1 mile * 1 mile numbered 1-36 northeastern corner always #1 school section 16th section always 36 sections |
| townships | alwways 36 sections |
| 16th section always | school section |
| govt rectangular survery system : sections divided into | halves or 320 acres quarters of 160 acres further subdivided into quarters and halves if land is irregular, description could include metes and bounds |
| quadrangle/ check | 24 by 24 miles, 576 squ miles or 368.40 acres |
| township | 6 by 6 miles, 36 sq miles, or 23,040 acres |
| section | 1 mile by 1 mile, 1 square mile or 640 acres (section 16) |
| half section | 1 mile by 1/2 mile, 1/2 sq mile, 320 acres |
| quarter section | 1/2 by 1/2 mile, 1/4 sq mile, or 160 acres |
| 1/2 quarter section | 1/2 by 1/4 mile, 1/8 sq mile, or 80 acres |
| 1/4 of quarter section | 1/4 by 1/4 mile, 1/16 sq mile or 40 acres |
| govt rectangular survey system | The SE 1/4 of the N 1/2 Section 16, township 7 north. how big of an area is this, and where is it in the section located in the section? Cover 80 acres total (160 acres * 0.5 = 80 acres) |
| govt rectangular survey system : north half section 12, township 9 of the 3rd parallel range 5 west of the principal medidian. how big is the area? | 320 acres |
| general warranty deed | warantee deeds : grantor accepts all liability and offers extended warranties |
| covenant of seisin/seizin | warrants that they own the propoerty and can transfer it |
| covenant against encumbrances | warrants that the propoerty is unencumbered |
| covenant of further assurances | promises to obtain deliver anything needed to provide good title |
| covenant of quiet enjoyment | promises that grantees title will be good against any court action |
| covenant of warranty forever | promises to compensate grantee for any losses associated with claims against ownership in the future |
| special warranty deed | limited warranty deeds grantor is only liable for any title claims originated during their term of ownership grantor promises they did not cause any title issues |
| bargain and sale deed | no warranties about ownership or liability for grantor grantor states they have a right to convey ownership even if they dont own the propoerty most common in tax foreclosures |
| quitclaim deed | non warranty deeds grantor offers no warranties and is not liable for any claims against title grantor conveys only the ineterest they have at the time of transfer commonly seen in bank foreclosures or to correct mistake in public record |
| deeds of trust or trust deeds | specialty deed transfer real estate interests into trusts some states use this type of deed instead of a mortgage |
| reconveyance deeds | trustees will often use this type of deed use to return propoerty to trustors |
| trustees deeds | executed by a trustee to transfer real estate to anyone who isnt the trustor |
| deeds executed pursuant to a court order | issued as a result of the order in a will or a court |
| manufactured housing in NH | considered real propoerty |
| manufactured housing deed | statutory and transfers as fee simple with covenants |
| manufactured housing quitclaim deed | only guarantees title against claims during the time the grantor held title deed is recorded in the county where the propoerty is located |
| if manufactored housing is relocated to another site | within the same county: new location updated and recorded deed in a different county: recorded in the original county and duplicate deed it filed in new county moved out of state: out of state deed transfer statement form must be completed |
| start with trandfer of property part 2 | them limits on prop rights 3, and manufactured housing |
| timeline of property transfer | property listed then put under agreement via P&S lender hires attorney or title company to conduct title search if clouds on title, seller fix before closing status of title outlined in abstract of title/corresponding optinion of title |
| title search | examination of title chain |
| timeline of property transfer: closing | listing office brings buyer deposit and buyer brings remaining funds seller provides deed to buyer transferring ownership of property buyer gives the lender a note as evidence of their debt and a mortgage to sercure debt last mintue title search |
| in NH, attorney or titles company reps | conduct the closings ; standrd practice in most states |
| note | evidence of debt |
| mortgage | secures debt |
| timeline of title transfer | after closing all docs and municipal lien cert are recorded at registry of deeds IN NH title company records deed and mortage adminstaff at registry of deeds review deed and ensure rignatures ligible any docs duplicated/digitized for public record |
| timeline of title transfer pt two | recorded docs duplicated and digitized for public record a record is made in county propoerty book page and book number on deed NHdeeds.org after recording, closing company pays agent listing brokerage pays buyer agents broker; can be paid at tab |
| deed | tangible hold in hand evidence you own propoerty |
| RE Transfer tax (RETT) | one time fee for transferring propoerty to new owner exempt propoerty includes property owned by fed or state govt, gifts or cemetary plans |
| RETT rate | .75 per 100 for each party (1.50 per 100 total) 4000 or less, then a minimum tax of $20 charged |
| RETT | buyer and seller purchase stamps from the registry of deeds registrar attaches the stamps to the deed stamps suffice at public evidence the RETT was paid and in what amount |
| RETT : Manufactured housing | stock in trade relocation |
| RETT Math : Propoerty sold for 505k. what is ret on sale? | sale price/100 * 1.50 505,000/100 * 1.5 = 7575 .75 per each side |
| RET Math : single fam home sold for 289k. waht is rett for seller? | 289,000 /100 * .75 (each side) = 2167.50 |
| title insurance | insurance policy that protects against undiscoverable title defects |
| title insurance doesnt cover | ownership issues that could be discovered via public record any private or public property right restrictions |
| title insurance requires | propoerty to have marketable title (good and clear title) sometimes will cover propoerty with insurable title |
| insurable title | ownership with known defects that insurance company agrees to cover but can create issues upon resale |
| title insurance assume known defects are | not covered unless specified in question known defects are discoverable |
| titleinsurance | buyer pays for everything |
| title insurance : lender requires a lenders policy paid by borrower | mortgagee protection (lender protection) |
| borrowner/homeowner can get their own policy | mortgagor protection (borrower) standard coverage for forged deeds or improper marital status extended coverage for survey issues or unrecorded easements |
| mortgagor | borrower |
| mortgagee | lender (two EEs) |
| title insurance company pays for | legal defense and financial protection against title claims for owner/lender gains the right to defend by subrogation |
| Land court : the torrens system | deals with conflicts about property ownership action to quiet title performs title search and holds hearings to determind who is the rightful owner of propoerty once descion, issues cert of title |
| certificate of title | registers land which overrides all prior documents |
| land court: registered land | tranfers must be recorded transfer not valid until new owner has been issued their own cert of title |
| title transfer methods: wills | how property of deceased is transferred intestate = without a will (escheat intestate/no heirs) testate= with a will |
| intestate | without a will |
| escheat intestate | no will and no heirs |
| testate | with a will |
| title transfer methods: probate | legal process that distributes the deceased belongings takes place either in county where deceased last resided or where real esatate was owned by deceased |
| if deceased passed testate | executor is named and carries out last wished devises real properoty to devisees bequeaths personal propoerty to legatees |
| if deceased passes intestate | admin is appointed by court laws of descent and distribution will goven who recieves propoerty |
| if deceased passes intestate and without heirs | escheat 3+ years + no heirs in NH |
| codicils | amendments to wills |
| holographic | handwritten wills |
| nuncupative willl | verbal wills not enforceable in most states |
| property owned with others in a will : et us | with wife |
| property owned with others in a will : et con | with husband |
| property owned with others in a will : et al | with others |
| probate property issues | lengthy and complex process |
| when working with probate propoerties, be aware of | delays unpaid taxes of leins disputes with family on who owns property last minute updates can seller sell propoerty? disputes on price between executor and fmaily members someone assuming ownership when not a joint tenant probate |
| when representing buyer or seller in probate, ask | questions, gather ducoments and consult attorney |
| types of title transfer | adverse posession : legal term for quatter rights ONCHA doesnt apply to public or registered land |
| types of title transfer dedication | donation of propoerty rights can be permanent or temporary |
| Shoreline water quality protection act SWQPA | enforced by dept envior servicesand local conservation commisions est protected shoreland 250ft from reference line restrictions within protected shoreland for owners ex: primary structures set back 50 ft from reference line |
| Shoreline water quality protection act SWQPA : natural woodland buffer | 50 ft and 100 ft from reference line more than 25% maintained in unaltered state no chemicals applied to ground or vegetation rocks and stumps left in tact |
| Shoreline water quality protection act SWQPA: waterfront buffer | first 50 ft |
| Shoreline water quality protection act SWQPA: protected areas | ponds, streams, brooks and lakes of 10+ acres coastal water bodies rivers and oceans |
| less than 10 acres | reference line is the edge of the water body at its fullest volume |
| reference line | is not the high water makr waters edge dock or edge of land beach |
| Shoreline water quality protection act SWQPA | leaching portions of new septic systems adjacent to ponds, lakes and open ocean setbacks 75+ ft from reference line |
| Shoreline water quality protection act SWQPA | lots with water frontage on public waters must have 150+ feet of shoreland frontage |
| Shoreline water quality protection act SWQPA | expansion that increases sewerage load to an onsite septic system requires subsurface approval by DES |
| Shoreline water quality protection act SWQPA : exemotions | soecial local urbanization conditions request must include evidence of exssiting and historical patterns of building and development |
| Shoreline water quality protection act SWQPA | commisioner grants waivers from minimum standrads for reasonable needs of person with disabilites |
| Shoreline water quality protection act SWQPA | violations that include failing to comply or misrepresenting a material fact up to 5k fine for each continuing violation and administractive fine repeated voilation x2 for every previous violation |
| Shoreline water quality protection act SWQPA | every 5 years submit a report : coastal and great bay region reports |
| filling and dredging in wetlands | activies require review and approval from wetlands bureau per fill and dredge in wetlands act must have state permit complete app form and pay fee of 400 plan an amount based on total area propoased mesaured in sqft |
| filling and dredging in wetlands : exemptions | legally constructed man made water conveyance systems ex : drainage ditches, detention basins, fire ponds culverts seasonal docks (removed annual min of 5 mos of the year) reparing and replacing exsisting dock faciliteies |
| filling and dredging in wetlands : cutting wood and recreational trails | permit must be records in the county ROD to be effective file notice $25 fee issued cert posted and available on job sites |
| filling and dredging in wetlands : mineral dredging | permit plus written permission from riverbend landowner app fee $25 for resident and $50 out of state applicants |
| filling and dredging in wetlands : mineral dredging | Exempt: manual or panning of riverbeds does not require a permit |
| filling and dredging in wetlands : boat docking | 20+ ft from abutting propoerty line in tidal and non tidal waters boat secured to dock cant extend past extension of abutters propoerty line |
| filling and dredging in wetlands : permits | fee $200 + .20 per sqft of area affected valid for 5 years one time extension |
| filling and dredging in wetlands : permit by notification | does not impact water quality fee $400 + .20 per sqft of area affected |
| filling and dredging in wetlands : exemtptions | maintenance and repair of state road ways drilling or geotechnical borings and test wells utility providers |
| filling and dredging in wetlands : application preparer program | developed by DES for minimum impact projects must be permitted or certified in a simlar trade applications submitted by certified app preparer dont require technical review |
| filling and dredging in wetlands : violations | administractive fine up to $5000 civil penalty up to 10k per violation |
| filling and dredging in wetlands : appeals and waivers | must include detailed description of land and each unlawful point burder of proof is on the applicant |
| filling and dredging in wetlands : prime wetlands (high value) PRA priority resource areas | 2+ acres width 50+ ft for a narrowest point cannot only be a body of water must be 4+ primary wetland fucntions, one must be a windlife habitat |
| must be 4+ primary wetland fucntions, one must be a windlife habitat | protected species/habitat a bog wetland floodplain of a river with drainage area of at least 1 sq mi or tidal area DES prime wetland duly established sand dude tidal wetland or undeveloped tidal buffer zone |
| filling and dredging in wetlands : prime wetlands structures built over the water | may not extend beyond shoreline violations carry 5k+ fines |
| filling and dredging in wetlands : aquatic resource compensatory mitigation | DES may accept payment for an unavoidable loss of aquatic resource function and value payment is the sum of 65k per replacement acre area of wetland * cost of land in municipality (equalized) / number of acreas in municipality 20% admin assessment |
| filling and dredging in wetlands: wetland mitigation banks | used to compensate for wetland impacts from development and agriculture |
| filling and dredging in wetlands: structures on non tidal public waterways commision | study effectiveness of current stautes and construction of structures |
| NH lakes management and protection program | lakes protected; commisioner state lakes coordinator and advisory committee |
| NH lakes management and protection program : state lakes coordinator | provdes tech assitance on management and local shareland planning awards financial grants to regional planning commisions |
| NH lakes management and protection program : advistory committee | reports biennially to commisionor every two years |
| NH lakes management and protection program : | prepare recommendations for state agencies every 10 years |
| NH lakes management and protection program : | all municipalites bordering a lake are encouraged to participate |
| NH lakes management and protection program : protection plans address | recreational and non recreational uses and activites protection or natural areas setbacks and location requirements dredging, filling, mining and earth moving factors controlling water lvels and flowage rights fcailites to support lake use safety |
| waste management : permits | valid for 5 years and cant be transferred without permission |
| waste management : owners and transporters liable for contaminaent cleanup or removal violations | first priority lein on property to cover any cost incurred |
| waste management : owners and transporters liable for contaminaent cleanup or removal violations | not liable if didnt contribute to or cause problem no prior knowledge when purchasing land did due diligence prior to purchase |
| waste management : NH hazerdous waste clean up fund (HWCF) | runs parallel to cercla provides funds for cleaning contaminated sites petroleum prodcuts included (not covered under cercla) |
| waste management : sewage disposal system | any private disposal or treatment system other than a munipally owned and operated system all to be constructed sewage disposal systems plan filed 30 days prior to insall inspected 7 business days after written notification of completion |
| waste management : sewage disposal system : site assessments | required prior to P&S agreemtn for any developed waterfront property using a septic disposal system owner hired permitted designed for subsurface sewer or waste disposal systems to perform an on site assessment study complete site assessment study frm |
| waste management : sewage disposal system : site assessments complete site assessment study form : | transferred from seller to buyer becomes part of P&S agreement up to 500 fine for failure to provide |
| manufactured home | are considered real propoerty designed for long term residentail occupancy |
| manufactured home : structure | built on permanent chassis use with or without foundation minimum 8 ft * 40ft and 320 sqft ready for occupancy upon arrival / including utilites |
| municipalities cannot exclude | manufactured homes through regulations, zoning ordinances or police power |
| manufactured housing parks | any parcel of land with 2+ manufactured homes |
| manufactured home : owner | person who holds title to the land/park (owns land) |
| manufactured home : tenant | owns the manufactored home (owns the actual structure) |
| manufactured home : owner can remove units from park | can remove structures or fixtures that are not owner approved burden of proof lies with the owner |
| manufactured home : owner cannot remove | if safe, sanitary and in compliance with eastetic stanards ex: requiring car ports on the right side or air conditioners on the back cannot relate to physical characteristics Ex: size, color, original construction materials) |
| sales in manufactured home parks : tenants can sell to | any prospective buyer place for sale signs in or on unit set price for their unit |
| sales in manufactured home parks : owners can require a prospective buyer to | complete app for tenancy owner can reject buyer for poor credit, poor references from previouslandlords have 14 days to notify buyer of their decision and must include reason for rejection |
| park owner rules and regulations : cans | charge a non refundable app fee terminate tenancy charge entrace fee (less than 3 months rent) make rules regaurding number of adults or total persons in housing except children under 18 charge fees for additional adult pet restrictions type and # |
| park owner rules and regulations : cants | ask prospective tenant for more than three character references charge more than one months rent for security dep charge late fee if paid full within 7 days of due date chrage for upkeep of park systems increase fees without written notice |
| park owner rules and regulations : cants | make rules requiring tenants to sell or dispose of any pre approved personal propoerty fixture or pet |
| park owner rules and regulations : tenants must be provided | written copy of park rules name and number of manager living within 10 miles of park 90 days notice any rule changes written notice of a termination and the ability to correct to avoid termiantion |
| manufactured homes : financing | treated same as realty |
| manufactured homes : financing lienholder | holds title until debt repaid in full rights to information - copy of park rules - written statement disclosing the amount of rent and other charges park owner must notify tenant and lienholders or any changed in park rules, rent or other chnages |
| manufactured homes : financing | owner provides written notice to lienholder for unpaid rent/charges over 30+ days |
| manufactured homes : financing : owner provides written notice to lienholder for unpaid rent/charges over 30+ days : lienholder can either | assume responsiblity notify park owner in writing provide copy to tenant pay outstanding balance within 60 day window |
| manufactured homes : financing : owner provides written notice to lienholder for unpaid rent/charges over 30+ days : lienholder can either | no assume responsility notify park owner in writing provide copy of ntice to tenant remove housing from park within 60 day period if not removed, park owner can remove the housing |
| manufactured housing : evictions | owner must notify tenant in writing of the reason for evicition |
| manufactured housing : evictions . after owner notifies tenant | owner can take possesion : after writ of possession is issued notifying an lienholders in writing lienholders declined to assume responsibility |
| manufactured housing : evictions . after owner takes possession | can sell housing to recover damages can file a landowners consent/conveyance to use affidavit with the deed |
| manufactured housing park sale | owner must provide 60 day notice to all tenants through certified mail with return receipt requests NH housing finance authority |
| manufactured housing park sale : notice of sale must include | price terms and conditions signed written offer with a property descirtion |
| manufactured housing park sale : tenants have | right of first refusal to purchase park as cooperative |
| GRM, Cap Rate and Cash on Cash Return all have what in common? | They are approaches to determining investment value |
| Which of the following cannot be done in a woodland buffer? | Pulling up a stump without DES approval |
| Josie is currently in a rent-to-own contract with a seller. Josie's interest is a (an): | Rent-to-own means that Josie is presently renting. When the rental term performs, and Josie purchases the property, she will then have a freehold interest; in the meantime, she has a non-freehold interest (rental). |
| Leslie offers her Pawnee, Indiana home to her best friend, Anne, for the price of $200,000. Leslie tells Anne that she has until next Gal-entines Day to buy it from her for this price. This is an example of: | An option is a type of contract where an owner of a piece of real estate, the optionor, offers someone, the optionee, the ability to purchase their property for a certain price by a certain date. |
| A real estate licensee owes their client | obedience, loyalty, disclosure, confidentiality, account, and reasonble care. Fiduciary obligations are obligations of trust. |
| The seller is the: | The grantor is the one who transfers title to real estate to the grantee. |
| A listing contract containing a provision that gives a broker the right to advertise a property's availability to other brokers is a(n): | A multiple listing clause permits the listing broker to advertise the property to other brokers on the MLS. |
| Which court case changed the rules governing air rights? | The court case United States vs. Causby changed the rules governing air rights from the property owner owning all the way "to the heavens" to just the space 80ft to 500ft above the tallest improvement on their property. |
| What is the term for restrictions, liens, or easements that might grant others a right to a property? | An encumbrance can be anything that interferes with the owner's rights; for example, a lien, like a mortgage, or an easement, like a shared driveway. |
| An ARM typically adjusts based on the: | prime rate |
| Betty will be charged 2 points for the origination of her home loan. She is buying her home for $150,000 with 20% down. How much will her two points be? | $150,000 x 20% = $30,000 down payment, subtracted from the $150,000 sales price = $120,000 loan amount. $120,000 x 0.02 = $2,400 in points. |
| A real estate agent mentions to a prospective seller that their neighborhood has a lot of Argentinian immigrants moving in and it might negatively impact their property value. This is an example of: | This is an example of blockbusting. Blockbusting is when an agent uses the perceived or prospective entry of a protected class (national origin, in this example) into a neighborhood to incite homeowners to sell their homes. |
| The principal in a real estate transaction is the: | The client is known as the principal under agency law. The principal is the person who hires the agent in the transaction, and to whom the agent owes fiduciary duties. |
| Which of the following qualify as chattel? | mblements are annual or semi-annual crops that, despite their attachment to the land, are treated as personal property (or chattel) under the rules about property. Corn and wheat are examples of such crops. |
| All of the following details of a real estate sale must be reported to the IRS except for: | The financial details of the transaction must be reported to the IRS on a form 1099-S (the seller's name, their social security number, the sales price, etc.). The appraised value of the property does not need to be reported |
| The alienation clause in a mortgage prevents: | The alienation clause (also known as the due on sale clause) prevents assumption of the mortgage. Selling the property subject to an existing mortgage is one way that a loan can be assumed, and is thus prevented by the alienation clause. |
| A property will always go through a four stage lifecycle. These four stages include: | The four stage lifecycle that all real estate will go through includes growth, stability, decline and revitalization. |
| Which of the following has a defined time limit? | Non freehold estates are claims to real estate that are possession and use, but not ownership. Non freeholds have an expiration date. Examples of non freeholds include rentals. |
| If a borrower qualifies for a VA loan of $450,000, their downpayment will likely be: | VA financing is for honorably discharged veterans and allows for a 0% downpayment. |
| Romulus, Remus, and Rhea own as joint tenants. Remus sells to Fabius. How do Romulus and Fabius own? | to create a joint tenancy, all must acquire ownership at the same time, and same deed. Since Fabius acquired his ownership share after Romulus, he would be a tenant in common with Romulus because tenancy in common is the default form of co-ownership. |
| What happens once the terms and conditions of the Purchase and Sale contract are met? | After the terms and conditions of the Purchase and Sale contract are fulfilled, such as securing financing, completing inspections, and sorting out any title issues, the final sale occurs. This stage is often referred to as the settlement or closing. |
| Title insurance insures against: | Title insurance provides protection against loss due to undiscoverable title defects in a particular parcel of realty. |
| freestanding cabinets not built in | is personal property : chattel |
| which form of ownership has limited duration | life estate in reversion |
| riparian rights would be used | in eastern states or the 13 colonies |
| western states use | doctrine of prior appropriation |
| propoerty with right of way through another adjacent propoerty | dominant tenement. the dominant tenement refers to the propoerty with the right. the servient tenement is the propoerty encumbered or impacted by the right. |
| house listed for 300k but seller gets 400k. example of what principle of value? | highest and best use. property is at its most optimal level. in a high rental income area, a multi fam would be best used at two rental units apposed to its current use as a single famil. |
| price per sqft. determine sqft (ft x ft) then sales price devided by squft | 400 x 300 = 120,000 sqft sales price 210,000 = 1.75 per sqft |
| property NOI 40k. capitilization rate of 5.5% | 40,000 / .055 = 727,273 |
| portfolio loan | loan a bank keeps and do not sell on secondary market |
| APR includes any charges charged by the lender. appraiser is not included in arm. points, maintenance fees and origination fees are included in apr | any charges charged by the lender. appraiser is not included in arm. points, maintenance fees and origination fees are included in apr |
| sherman anti trust act | commisions and contracts always negotiable, cannot establish uniforms commision schedules with other brokers |
| a salesperson commision always comes from | their employing broker |
| property developments with more than 25 unites or lots bigger than 20 acres each when sold in interstate basis | must be registered with CFPD |
| fern verbally hires rachel. willl only list with her. relationship described as | has agency relationship which means they have a fiduciary relationship (a relationship of trust) |
| no verbal listing is | exclusive qas they must be written |
| broekrs are | special agents in the transaction |
| friable | flaking state of abspestos |
| is absbestos is found in good repaid and is not dangerous nothing needs to be done unless they want to . nothing has to be reported either. | answer |
| home contaminated with radon | home can be sold but radon must be disclosed |
| asbestos | was found in popcorn ceilings |
| if building burns down a contract is | unenforceable not voidable |
| mututal assent (signing offer on home) | offer and acceptance/meeting of minds |
| the optionee | would loose their deposit if familed to excersise their options by deadline |
| an acre is | 43560 |
| an acre is | 43560 |
| tom has 5 acres. each lot has to be 75 x 75 | 43560 * 5 75 x 75 217/5625 |
| tom has 5 acres. each lot has to be 75 x 75 | 43560 * 5 75 x 75 217/5625 |
| all offers must be presented even without proof of funds due to not | holding everyone to same standrad |
| broker violated housing law for second time in five years | 25k fine |
| the fair housing act and amendments does not prohibit against | veteren discrimination |
| 55+ 80% exemption | for fair housing |
| only personal allowed to provide analysis of market value is | licensed appraisers |
| broker violated housing law for second time in five years | 25k fine |
| 55+ 80% exemption | for fair housing |
| only personal allowed to provide analysis of market value is | licensed appraisers |
| RE comminsion is under supervision of | the office of professional licensure and certification |
| if a project does not impact the water ququality, it can qualify for a permit by notification | a permit by notification |
| the line on shore running parallet to main stem of river est by flucuations of water is | high water mark |
| water violation public water way by des | civil 5k and admin 5k |
| the mean high water level is called | shoreline |
| ust used sorely to head residential structures | do not have to be regustered |
| no commision to manufactured park owners but can get | 35 signing fee |
| protected shoreland is located within how fare of the reference line from public waters | 250 ft |
| no commision to manufactured park owners but can get | 35 signing fee |
| While tenancy by the entirety is only for married couples, married couples can choose tenancy in common if they want inheritability. | Creditor protection in the form of a homestead can be applied separately with tenancy in common, it just isn't automatic the way it is in tenancy by the entirety. |
| tenancy in common | inheritability, can apply homestead |
| Barber shop chairs are an example of trade fixtures, or property used in the ordinary course of business. | Despite the attachment of trade fixtures to real estate, they are treated as personal property (or personalty), and are an exception to the usual rules defining real estate. |
| which type on tenancy is inheritable | tenancy in common |
| Only fee simple defeasible (limited ownership subject to a loss of ownership, e.g. ownership with a deed restriction) is inheritable by default. | answer |
| joint tenancy and tenancy by entirety | not inheritable because of survivorship |
| There is an inverse relationship between the capitalization rate and property values. | When the capitalization rates fall, property values will increase. |
| If the cost of construction for a small, neighborhood post office is $535,000 and the land value is $375,000, with depreciation of $100,000 what would be it's value using the cost approach? | With the cost approach, value is given with the following formula: cost of construction - depreciation + land value. $535,000 - $100,000 +$375,000 = $810,000 |
| If Dillan, a home buyer assumes the note and the mortgage under the original mortgagor, which of the following would be true? | the assumption of takover of a mortgage means that both Dillan, the buyer and the seller, the original mortgagor would be liable in the event of a default on the terms of the mortgage. |
| The following is the most vital clause in the mortgage lien for the mortgagor: | A defeasance clause in a mortgage automatically relieves the collateral of the bank's claim when the loan is paid back - an important occurrence for the mortgagor (borrower). |
| Which of the following would trigger the due on sale clause? | A due on sale clause requires the borrower to pay off the loan in full immediately upon the sale or transfer of the property, thus preventing transfer of the mortgage to a third party. Be aware that it does not just apply to sales, transfers too |
| If a seller is offering financing to a buyer, but is concerned about being able to foreclose quickly and easily on the property if the buyer doesn't make the payments owed each month, what type of deed might the seller use? | A trust deed is often used in lieu of a mortgage, making it easier for the lender or in this case, seller because of seller financing, to foreclose on the property |
| A borrower defaults on their home loan, causing their bank to trigger the acceleration clause. This clause permits the bank to: | The acceleration clause permits the lender to "call in the note," or demand full payment of the loan immediately. A power of sale clause lets them sell the home- the acceleration clause does not. |
| In real estate financing, the evidence of debt is the: | The note is an I.O.U to the bank for the money borrowed. It also known as the promissory note and the mortgage note. |
| getting divorced: When Sam asks Franny why the Smiths are selling, Franny should reply that: | If Franny represented the Smiths, she would have had to keep this info confidential. However, Franny represents Sam (the buyer) and not (the sellers). This info confidential information about the other party to the transaction,she must disclose this info |
| Marcus is a listing agent who is assisting Melinda with the sale of her home. Melinda tells Marcus to tell any potential buyers that the property used to be the home of John F. Kennedy, which they both know is not true. What is Marcus's obligation? | Marcus should not obey Melinda's request as it would be fraudulent to do so. |
| The President of a corporation would be a(n): | universal agent = As the president of a corporation, one could have the authority to sign documents for the transfer of real estate, business activities, or other legal documents. |
| Brokers are responsible for their agents' activities because of: | Brokers have vicarious liability for their agents' actions. |
| Francine is inspecting a home, and notices that there is a black substance on the walls of the bathroom. The bathroom seems to be poorly ventilated. Which of the following has Francine most likely discovered? | Black mold is the common name for S. chlorohalonata and S. chartarum, molds of the genus Stachybotrys. It is likely the black substance that Francine has discovered in the poorly ventilated, damp bathroom. |
| Trina lists her home with Samantha, a salesperson. Samantha passes away before the listing expires. What is the status of the listing? | The listing agreement is still in force between the client and the employing broker of the salesperson. |
| In the event the buyer backs out of an accepted offer, which is most likely to occur? | Forfeiture is the loss of money or anything of value, such as a deposit, due to failure to perform according to the terms of a contract. It is a type of liquidated damages, but since it is more specific, it is the better answer. |
| An individual with a right to act on the behalf of someone else in a legally binding way is the: | An attorney-in-fact is someone holding a written power of attorney. An attorney-in-fact is permitted to act on the behalf of the person granting the power of attorney in a legally binding way. |
| Which of the following would be an example of a violation of the covenant of quiet enjoyment? | Landlords must keep apartments up to sanitary and building code. Mold that wasn't removed would violate health and safety standards and therefore would be a violation of the covenant of quiet enjoyment. |
| no legal requirement for | 24 hours notice of landlords |
| In the event of most foreclosures, the terms of a lease in place on the property: | Typically, foreclosure terminates the lease. (State laws vary; in Massachusetts, for example, the tenant will be given at least 90 days' notice to vacate in the event of foreclosure.) |
| landlord who rents out an apartment to Pluto. The apartment includes heat and hot water in the rent. The apartment, simply put, is a doghouse, where the water and heat are shut off for days at a time. The lease ends in a month's time. | When the landlord fails to maintain the apartment by providing sufficient water or heat, this permits the tenant to vacate the premises, and ends their obligation to pay the rent (formally known as constructive eviction). |
| 1 chain x 1 furlong is equal to: | 1 chain (66ft) x 1 furlong (660 ft.)= 1 acre or 43,560 ft. |
| If someone is taking a prelicensing course to become a licensed real estate agent, they can assist a seasoned real estate broker in doing all of the following, except: | Until you are a licensed real estate agents, you may not work with clients or customers, this includes taking them to view property, answering questions about specific property or negotiating offers. |
| Which of the following are not considered USTs in New Hampshire? | Private Sewage Disposal systems including septic tanks or holding tanks are not considered USTs, and are regulated under a different division within NHDES [NH Env-Or 401.01-03]. |
| Park owners cannot charge a late fee if the rent is paid in full within how many calendar days of the rent’s due date? | Park owners cannot charge a late fee if the rent is paid in full within 7 calendar days of the rent’s due date. |
| Elsa is selling her UST to Anna. Prior to the sale, Elsa must notify Anna of their compliance with the rules. Anna must then notify the DES and assume the permit within how many days? | Prior to the sale of an UST, the owner must notify the buyer of their compliance with the rules. The new owner must notify DES and assume the permit within 10 days. |
| The unauthorized use of escrow deposits to pay commissions is called: | This is an example of conversion (the unauthorized use of client money). The use of any escrow monies to pay for commissions must be agreed to in writing by the buyer and seller. |
| How many acres of land in its natural state must a property owner have to apply for current use status? | Property owners with 10 or more acres of land in its natural state may apply and remit a tax payment with the municipality. |
| Gene has been living in the same apartment for 3 years. This year the apartment complex increased the rent. Gene was furious and refused to pay the increase. They decided to continue to pay the same amount in rent regardless of the notice. | Gene breached the lease so the apartment complex can begin the eviction process |
| John buys a piece of land with his friends, Erin and Sarah. They choose to own as joint tenants. Sarah later has to move to California, and sells to Tom. John dies. How do Tom and Erin own the land? | Tenancy in common is the holding of title by different persons, under different titles, each person having an equal right to occupy all of the property involved. |
| Joint tenancy requires satisfaction of the 4 unities | interest, possession, time and title) |
| A life tenant enjoys the entire bundle of rights except for the right to: | they will enjoy the entire bundle of rights except for the right to leave the property in their will (to "devise" the property). |
| In a separate property state, tenants by the entirety (the married couple) may | may sell or devise their property separately. In this case, since Diane bought the property before she married Ron, she does not need his agreement in order to sell. |
| Quint cannot sell his property with the garden. Adverse possession (the fancy term for squatter's rights) does not apply to | publicly owned land, like the site of the old town hall. |
| The Broker Price Opinion (BPO) is based primarily on which of the following elements? | A Broker Price Opinion (BPO) is a more informal valuation method that relies heavily on an agent's professional experience, it does not need an in-depth analysis or follow standard regulatory guidelines like USPAP. |
| Ginnie Mae focuses on: | Ginnie Mae (the Government National Mortgage Loan Association) is a secondary mortgage market buyer that focuses on low income and affordable loans. |
| When the Federal Reserve announces that interest rates are going to go down, stay the same, or go up, what particular rate are they referring to? | When the Federal Reserve announces that rates will change, they are referring to the Federal Funds Rate. |
| wraparound mortgage, which is a type of seller financing. | seller giving financing to buyer is grantor and mortgagee |
| regylation z | truth in lending requires cost of redit to be disclosed in the form of an annual percentage rate whenever loans are advertised : RE sales person or a lender (advertisment of interest rate) |
| regulation z | It requires the disclosure of pertinent information such as down payment and annual percentage rate if a "triggering" item such as interest rate is advertised. |
| The main difference between a participation mortgage and a shared appreciation mortgage is: | With a participation mortgage, a lender is an equity partner |
| Fannie Mae was founded by the U.S. government to: | Inject liquidity into the credit market |
| An owner wants to net $300,000 on the sale of her home. Assuming that she has $2,000 in costs, and is paying a broker a commission of 6%, how much should she sell for at a minimum? | Add costs to desired net income amount: $300,000 desired net + $2,000 costs = $302,000. The 6% commission calculated off of the sales price means that this figure represents 94% of the sales price (100% - 6% commission = 94%). So, $302,000 / .94 = $321,2 |
| signing p & s whilte drunk | voidable |
| Which of the following has a defined time limit? | Non Freehold Estate : rental |
| Which of the following is not an exception to the "first in time, first in right" rule that governs most real estate claims? | Mortgage liens |
| Which of the following is not considered in the creation of an Automated Valuation Model (AVM) approximation? | The property's condition |
| The appraisal principle of balance states that properties achieve their maximum value when: | Their municipality is providing the right amount of services |
| Caveat emptor means: | Caveat emptor is a Latin phrase meaning "let the buyer beware." |
| Joe is a listing agent. During one of his showings, he discovers that the roof has a serious leak. What is Joe's obligation to any potential buyers? | If either the buyer or seller's agent is aware of the fact that there is a material defect affecting the property, either one is obligated to tell the buyer of the defect. |
| Assume an offer is submitted on January 1st, with an expiration of January 7th. The offeree has not yet responded. The offeror wishes to withdraw on January 5th. May they? | An offeror may withdraw their offer any time prior to its acceptance, even if a time period has been specified for the offer. |
| Once a buyer's offer is accepted by the seller, it becomes: | When an offer is agreed upon and signed by both buyer and seller, it becomes a legally binding contract. |
| Which of the following is not a requirement to create a valid contract? | Specific performance |
| A tenant paying some operating expenses is likely renting under a: | A net lease is a lease where the tenant pays some or all of the leased property's operating expenses (e.g. taxes, maintenance costs, management fees, etc.) on top of the rent, thus providing the landlord with net income. |
| The doctrine of estoppel states that: | The doctrine of estoppel states that once you cause another to rely on your words, you cannot go back on your promises. |
| Carol obtained a hazardous waste permit through the NHDES Hazardous Waste Management Bureau. Her permit is valid for 5 years, but she has decided to leave the business and wants to transfer her license to Rose. Can Carol transfer her permit to Rose? | Yes, but Carol must get permission from the DES |
| Ivey called her agent, Ricky, to help sell a piece of land she owns. Ricky puts the property in the MLS but never shows the property or negotiates a sale. What type of listing contract have Ivey and Ricky entered into? | When the agent simply inputs the property in MLS, and does not show the property or negotiate a sale it is called a flat fee (or entry only) listing. This is very common for land listings in NH. |
| How often do the lake coordinator and the advisory committee prepare recommendations for state agencies in their decision-making regarding lakes management and protection? | Every 10 years the lake coordinator and the advisory committee prepare recommendations for state agencies in their decision-making regarding lakes management and protection. |
| How many years is a Commission members term? | All members serve five-year terms and cannot serve more than 2 consecutive full terms. |
| Yasmine was granted a variance for some work on her home in Nashua. Financial constraints stalled work on her home for three years. She is now ready to get started. Can she begin the work? | No, variances must be exercised within 2 years of the date of approval or they expire |
| When can a park owner legally require a prospective tenant to purchase their mobile home from a particular company? | When the park is newly constructed |
| The mean high water level is called the: | Shoreline |
| homeowner regotiated with neibor to obtain permanent right to pass over part of neighbor land to gain access to river. pays neighbor 9k for right of access and recives deed. | thi is an easement appurtenant |
| appraisal required when | lender wans to sell mortgage to the secondary market |
| three identical homes listed at same time, demand constant | first sold for lowest price |
| market data estimate of value, which is not essential | original cost of building |
| rule of thumb formual for estimating prop value | GRM |
| appraiser must be licensed or certified to handle fed related work on residental value more than | 250k |
| depreciation is calculated based on | cost of building only |
| federal truth in lending laws known as | regulation z |
| truth in lending act requires trigger terms used in ad must appear | down omt, number amt and frequ of payments, cash price or amt of loan not prepayment penalties and rebates |
| loyalty to seller as the seller agent. if knows the buyer will pay more then tell the | seller they will pay more |
| when broker brings ready willing and able buyer to seller in most listing contracts | the broker has earned a commision when the seller accepts the offer but they provided the seller with a buyer |
| exclusive right to sell listing obtained by a broker associate belongs to | the employing broker only |
| fha requires | buyer to acknowledge dosclosure of the presence of any known lead paint but will not refuse loan |
| unrepresented buyers ask licensee if they should do inspection | if you feel in your best interest, please do so |
| illegal contracts equal | void contracts |
| inability to perform | seller has contracted sale of enitre property without knowldge or consent of the other joint tenant |
| two offers accepted | both contracts are valid |
| interest charge. paid by seller. at closing, take over mortgage | debit seller, credit buyer |
| when assuming a mortgage | its always a credit to the buyer and a debit to the seller |
| irs reporting includes | names ssn and sale price |
| fed income tax, costs can be deducted from gross income | mortgage loan interest, locan property taxes and mortgage origination fees |
| not recording a deed risk | another purchasers recorded deed can take precedence over any unrecorded instrument |
| re agent stating taxes low but they are high | buyer could rescind contract based on misrepresentation |
| dicrininatory advertising | catholics preferred |
| advantage of fed court hearing to the complaining party is that | no dollar amount limit on damages paid in cort |
| lender will go off of appraised value 80% | buyer will have to make up diffference of sales price for 20% of appraised value + amount of the outstanding purchase price |
Created by:
kbarriere