Colibri Real Estate Practice Final Exam Flashcards

Colibri Real Estate Practice Final Exam Flashcards A drainfield, distribution box, and perforated pipes are all elements of what?septic system what is the most common reason a property fails to sell?overpricing Which fiduciary duty would require a listing agent to limit showings to a one-hour block on Sunday mornings if the seller insists?obedience Hometown Bank and Trust refuses to lend money to homeowners trying to purchase property in a predominantly Hispanic neighborhood. What is this practice called?redlining who pays the real estate taxes for a condominium? condominium owner What term describes someone who hires a licensee and delegates to them the responsibility of representing their best interests in a real estate transaction?principal Which is these statements is least likely to be an expression of steering?"I hope you'll like this house as it seems to have all the amenities you requested" why might a tenant in an apartment building a send a letter of intent to the building's owner?to reserve a specific unit when building undergoes a conversion to a condomonium a daycare center is allowed to open in a residentially zoned area. What is this an example of?a special use permit "Everyone charges the same so you might as well list with me" is an example of what?price fixing What is required for a title to be marketable? it must be free of undisclosed defects and encumbrances Which type of report would a property manager prepare for their owner client to lay out the plan to finance long-term improvements?capital reserve budget Which of these is a distinguishing feature of a deed condition?it gives the grantor the right to repossess the property if the grantee violates the condition Licensee Lucy takes a listing on a house, and her client has decided to offer seller financing. A buyer makes an offer that is acceptable to the seller. What can Lucy do?she can advise the seller and buyer to engage an attorney to draft the purchase money mortgage What is the authority that state and local governments have to enact and enforce laws that protect the public's health, safety, morals, and general welfare?police power When someone purchases a unit in a cooperative building, what do they receive at closing?shares of stock and a proprietary lease Which statement is false about Internet advertising?any ads placed on the internet must have a link to the licensee's email address Before a loan can be approved, it must go through a process that is used to determine the desirability and risk to the lender. What is this process known as?underwriting

Real estate agents are typically what kind of agent?special agent Which statement about asbestos is true?it can cause health problems by releasing airborne particles when old or damaged What is the difference between a balloon loan and an amortized loan?an amortized loan is paid off by the end of the term What must a listing agent do before entering into a cooperative agreement creating a subagency?obtain the informed consent of the seller What is the correct term used to reference the surface of the earth, the minerals beneath the surface, the water on or below the earth's surface, and all natural things attached to the surface?land Mary's property has been assessed at a higher percentage of value than all of the other properties on the same assessment roll. What is this an example of?unequal assessment What is the employment contract between a property manager and an owner called?management agreement Allison is moving into a new condominium. Which of these documents does not apply to her purchase?stock certificate A court renders a judgment that authorizes a lien to be placed against the defendant's house, car, and personal belongings. What is this an example of?general judgment lien An investor is selling an apartment building to purchase a strip mall. Which tax code would allow the investor to defer paying taxes on the property sold?section 1031 exchange Amanda Green sold her property to Sally Fay. Amanda will retain title to the property until Sally has paid in full. What kind of contract do Amanda and Sally have?land contract Seller Tom has an agreement with Broker Bill, Broker Jim, and Broker Joe. Whoever brings the buyer will get the commission. What kind of agreement is this?open listing What do we use to show the percent of gross income that is required to meet cash expenditures?break-even ratio What is the main disadvantage of a single-family home investment over other real estate investments?higher risk of vacancy Buyer Tammy signs a contract with XYZ Real Estate to represent her in the search for the perfect house. She intends for the seller to compensate XYZ. What type of agency situation does this represent?express agency which statement is NOT true?underground storage tanks pose no hazard to residential areas Under federal income tax law, the amount realized from the sale of a principal residence is which of the following?sales price, minus any sales expenses which describes an ad valorem tax?based on the assessed value of property A section contains how many acres?640

what is the overage rent?rent calculated on a percentage of sales volume what is the purpose of private mortgage insurance?it protects the lender against loss in case the borrower defaults What is a horizontal element of construction used to support the load of a floor or ceiling?joist Broker Jim signs a listing agreement with Seller Grace and a buyer agency agreement with Buyer Pat. Both Grace and Pat signed written disclosure statements agreeing to this arrangement. What is this relationship called?consensual dual agency when selling a house that was built before 1978, what is the seller required to do?disclose known lead paint hazards to buy The interest rate of which type of loan is determined by adding a margin to the current value of the identified index?ARM loan how might transfer tax in New York be documented when property is conveyed?as a revenue stamp The government sends Frank a notice stating that his house and neighborhood will be demolished to build a much-needed water treatment plant. What is the government required to offer Frank in exchange for condemning his property?just compensation What is the minimum period over which the owner of an apartment building can depreciate the improvements?

27.5 years what is a policy that protects against claims above and beyond the amount covered by primary policies?umbrella Candy maker Bonnie has a five-year lease on a shop where she installs a marble counter and several display cases. What happens when the lease is up?bonnie can remove the counter and cases because they are trade fixtures Which of the following is an allowed activity for an unlicensed assistant?get status reports on the loan progress Patrick has a written independent contractor agreement with his broker Tami. Last year, about 25% of his income came from sales commissions. The other 75% came from an hourly wage paid by Tami. For income tax purposes, the IRS would probably classify Patrick as an employee Which law extended discrimination to include handicap and familial status?fair housing amendment act Jamie is buying a house and he wants to confirm that the septic system is OK. If you're his agent, who would you tell him to call?local health department Sandy rents space in a building for her beauty and tanning salon. She pays rent for occupancy, but the owner of the building pays the taxes, insurance, and other operating expenses. What kind of lease does Sandy have?gross lease Which of these properties would be considered a non-homestead property?warehouse

John is doing a CMA for his potential sellers. He has collected data on the seller's property and collected data on several comparable properties. Now he's ready to make his price adjustments. Which statement is true?if a comparable lacks a feature the subject property has, he will add the value of that feature to the comparable What statement about a quitclaim deed is accurate?it may be used to clear title Which action would most likely put a real estate licensee at risk when showing property?leading prospects through the house to control which rooms they enter Dwayne was four months into his one-year lease when property owner Larry sold the property. Which statement is correct?the new owner must honor the lease until it expires Which of the following describes the concept of ethnocentrism?a belief in the superiority of one's own culture What is an emblement?a plant or crop that is considered personal property Which type of brokerage agreement gives a listing agent the greatest opportunity to earn commission?exclusive right to sell listing agreement When must a New York listing agent provide an agency disclosure form to a prospective buyer?at the first substantive meeting A historic preservation commission does not have the power to do which of these?require a property owner to restore a historic building Greta Manes passed the salesperson licensing exam. For how long are her results valid?24 months which property would most probably have the shortest lease term?apartment from an investor's perspective, which asset would be considered the most illiquid?real estate According to the federal Truth in Lending Act, a lender must disclose all of the following EXCEPT which one?broker's commission Ben, the property manager of a 10-unit building shows an apartment to a woman who uses a wheelchair. The woman says that she would need to make some modifications, such as adding grab bars in the shower and removing some carpeting in the bedroom. How should Ben respond?he must allow the tenant to make the modifications at her expense Generally speaking, which statement contrasting mortgage brokers and mortgage bankers is true?a mortgage banker lends their own money; a mortgage broker does not Which of the following is considered a fixed operating expense?insurance premiums What does the term "mixed-use development" mean? more than one use for a single building A licensee is preparing an advertisement for a new listing and wants to make sure to highlight its positive features.Which statement in the ad would be considered discriminatory?"quiet neighborhood perfect for mature couple"