A real estate agent advertised a home for $250,000. - The authorization to improve or develop a particular property in a manner not authorized by zoning. The actual exam has 150 questions and 3 hours 15 minutes is given to complete it. Real Estate Finance 30 Final Exam & Answer Key 1) For all practical purposes, an "Alienation Clause" is basically the same as a: a) Call Clause . Per 16 CFR 310.2. - Primary purpose is to "Protect the Public" - A person who on behalf of or for the benefit of another transacts business or handles money or property not the person's own; such relationship implies great confidence and trust. - A key document provided during the purchase of a cooperative, which includes information required to be disclosed to the purchaser. The agent is not entitled to any compensation. Proration mainly comes into play when a seller prepays their home taxes for the year. A contract between the owner of a property and someone who agrees to manage it. For example, they can't implement zoning code to raise what people pay for properties, they can, however, implement zoning codes to help promote the local economy. In this case: Remember, an open listing is truly open. In title theory states, banks or mortgage lenders hold the title of a property until it is paid in full. Legal agreement by which a bank lends money in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon payment of the debt. - A mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets. A federal prohibition that protects buyer/renter of a dwelling from. The ability to buy and sell is also known as what essential element of value? - Volunteers from state or private agencies who enforce fair housing by claiming to be home seekers, thereby finding out if brokers deal fairly with all clients/customers. Is the agent entitled to compensation? Mortgagee = Lender. It is permissible to attach legal descriptions to the contract rather than writing them into the contract itself, but they must be attached. (i) Rent expense. A clause in a contract that states a mortgage must be obtained in order for the contract to be binding. These rates can vary significantly by state and may differ depending on the type of financial product youre using. In addition, there is a renewal option to allow Jelly to keep the equipment one extra year for a payment at the end of the fifth year of$10,000 (which Jelly is reasonably certain it will exercise). The seller extends to the buyer a junior mortgage which wraps around the existing in addition to any superior mortgages already secured by the property. The statute specifically covers contracts for the sale of land, agreements involving goods worth over $500, and contracts lasting one year or more. Here is a quick list we put together of some of our top real estate exam prep videos and playlists: In this playlist, study specific real estate concepts you need to know for the real estate exam. A property owner enters into an exclusive agency listing with an agent. An easement in gross is basically selling rights to the land to another person, but without giving them legal ownership. The deed must contain an adequate formal legal description. - Agent may be liable for costly mistakes. The math looks like this: Gross Rent Multiplier = Property Price / Gross Rental Income. It may also provide liability coverage against accidents in the home or on the property. Dual agency is when one real estate agent represents both the buyer and seller in a transaction. A document acknowledging the payment of a mortgage debt. Blueprints- Architectural drawings that describe the layout and construction of a house. The person who hires or appoints an agent is called the: The person who hires or appoints an agent is called the principal. The employer of an agent or broker; the broker's or agent's client. PCBs widely used as dielectric and coolant fluids, in transformers, capacitors, and electric motors. The process by which a loan principal decreases over the life of a loan. It is hazardous to health when a possibility exists of exposure to inhalable fibers. Historic Preservation/Landmark Commissions. The real estate exam is mainly multiple-choice and is a mix of problem-solving, math, and vocabulary. - A series of documents submitted for the review by a cooperative boards. A contractual or consensual lien that is created by an action taken by the debtor, such as a mortgage loan to buy real estate. What is the commission? The practice of inducing homeowners in a particular neighborhood to sell their homes quickly, often at below market prices, by creating the fear that the entry of a minority group or groups into the neighborhood will cause a precipitous decline in property values. Regulations established by state or local governments stating fully that structural requirements for building. A horizontal structural member that supports a floor. The legal description describes where the property is located and the size of the lot. Considered real property, which is conveyed by a deed. - An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period. Consideration is anything of legal value that is offered in exchange by one party for something of value from another party. The means or medium by which title of real estate is transferred. Fuse melts and opens the circuit, causing electrical power to stop when overheating occurs. Its not typical in single-family homes or apartments. - A lien imposed by law upon a property to secure the payment of taxes. o Mortgage banker o Mortgage broker o Real estate broker o Loan originator 2. - The employer of an agent or broker; the broker's or agent's client. Our enrollment fee is only $39 and provides more than our competitors! A licensed real estate broker that holds the license of a salesperson. Requires public accommodations to remove barriers in existing buildings such as adding braille markings to elevator buttons, is a requirement of which law? A chronic lung disease caused by inhaling asbestos fibers. It is the _____ duty to explain the purchase agreement and to not mislead any parties. In plain terms, the principals in a real estate sales transaction would be the buyer and the seller. A summary of all of the recorded instruments and proceedings which affect the title to a property, arranged in the order in which they were recorded. Government power is the constitutional authority and inherent power of a state to adopt and enforce laws and regulations to promote and support the public health, safety, morals, and general welfare. Partition is a term used in real estate to describe an act, by a court order, to divide up a concurrent estate into separate portions representing interests of the owners of a property. - A valuation placed upon property by a public officer or a board, as a basis for taxation. The owner's rights and obligations for a condominium. The only way the buyer can back out and get their earnest money back is if something happens with the inspection, appraisal, or they have a contract clause offering that protection. A voidable contract is a legal agreement between two parties that may be unenforceable for any number of reasons. Under a lease for a commercial property, a tenant agrees to pay $3,000 per month plus 4% of the gross monthly sales. Considered a proprietary lease and personal property (NOT real. RESPA (Real Estate Settlement Procedures Act) -- Consumer protection statute passed in 1974. A clause found in real estate contracts that may allow buyers to walk away from an agreed upon sale for any reason. - The owner's rights and obligations for a condominium. To whom does an agent always owe their fiduciary responsibility? - A clause in a contract that states a mortgage must be obtained in order for the contract to be binding. An independent contractor is not an employee. - A clause found in real estate contracts that may allow buyers to walk away from an agreed upon sale for any reason. Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal. A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc. Which of the following is not a type of depreciation used in the cost approach? Parcels without access to a public way may have an easement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the lot with access. What best describes the type of agency typical in property management - in which an agent has limited power? They often come with better terms than a traditional mortgage which is why they are commonly sought. - Primary purpose is to "Protect the Public" A series of documents submitted for review by a cooperative board. The best way to pass is to use all the resources available to you. The refusal to lend money within a specific area for various reasons. Joists, beams, and roofs are typically supported by these. - A document acknowledging the payment of a mortgage debt. - A licensed real estate broker that holds the license of a salesperson. Richard is on a month to month lease agreement. Conspiring to establish fixed fees or prices for services or products. A document acknowledging the payment of a mortgage debt. Oversees and upholds the quality and aesthetics of a neighborhood, town or city. There are three main forms of depreciation, what are they? Typically placed 12", 16" or 24" on center. Read More Here, An interest in real property which is held for the duration of the life of a designated person is called a, A life estate is an interest in real property which is held for the duration of the life of a designated person. Unlike with a joint tenancy, tenants in common have no rights of survivorship. Analysis of the competition in the marketplace that a property will face upon attempts. A written document produced by an Architect that describes the QUALITY of construction for a building. If your state allows commingling, and you misappropriate the funds, that's conversion. Choose the best answer. Legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest. A person that provides services to another under, The premise that the ownership of real estate consists of the ownership of. So knowing that Tina and Tom do not have a right to survivorship and are unmarried, we can assume they have a tenancy in common. A lease commonly found in a building with a single, long-term tenant. Legal proceeding by a lessor landlord to recover possession of leased property after the expiration of the lease term. Find the annual GRM. Obsolescence may be either economic or functional. In this situation, the new offer cannot be accepted unless the seller's counteroffer is withdrawn or hypothetically rejected. - Federal law designed to control air pollution on a national level. The interest rate decreases not the down payment. All the others are forms of depreciation. Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, pets, and conflict resolution. Fee simple absolute is the greatest interest in a parcel of land that one can possibly own. This entity is typically referred to as the lender. The real estate exam can be scary at first, but you can conquer the real estate exam with the right study materials. The ability to have cash readily available to support the demands of running and maintaining real property. If youre not into Reddit, we also have our own study group located on Facebook. The developer or owner organizing and offering for sale a condominium or. If it's for less than one year, it can be oral with some exceptions. Disclosure Regarding Real Estate Agency Relationships Form, - An agreement of employment of a broker to the exclusion of all other brokers; if sale is made by any other broker during term of employment, broker holding. Reverse mortgages can provide much-needed cash for seniors whose net worth is mostly tied up in the value of their home. A collection of federal and state government laws that regulate the conduct and organization of business corporations, normally to promote fair competition for the benefit of consumers. Justin takes out a mortgage loan that requires monthly payments of $650.50 for 25 years and a final payment of $30,000. Liquidated damage is most likely to be found in which of the following documents? This practice is illegal. A material used in pipes and paint of many older homes. A method of calculating the depreciation of an asset which. 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