FL Real Estate Exam - Magnolia School all terms Flashcards

FL Real Estate Exam - Magnolia School all terms Flashcards What are the set of guidelines called that must be followed by appraisers?USPAP (Uniform Standards of Professional Appraisal Practice) How many square feet in an acre?43,560 sq ft4 old ladies going 35 in a 60 What are the 3 rules for licensed real estate agents doing an appraisal?

• Can collect money2. Must follow appraisal rules3.

Cannot call yourself an appraiser What is the summary of the history of a property's ownership?Abstract of title Secondary MortgageAn existing loan is bought Ownership goes to who in Tenancy in Common if one owner dies?Ownership goes to heirsOpposite of joint tenancy What must be in writing per the Statute of Frauds?Deeds, mortgages, promissory notes, purchase and sales contracts, option contracts, lease agreements for longer than one year, listing agreements for longer than one year, and buyer representation agreements for a term longer than one year What is a blind ad?Doesn't list the realty company or brokerage BlockbustingWhen a licensee uses the entry or rumor of the entry, of a protected class into a neighborhood to persuade homeowners to sell their property.What does the existence of the secondary mortgage market do?Allows lenders to have stable cash flow so that they can originate more new loans.VA (Veterans Affairs) mortgageGovernment guaranteed loanFunding feeOrigination fee Two brothers have decided to purchase investment property in or not sure how they want to take title. The brothers wives have looked into the options and have decided that in the event that one of the brothers die, his wife would like to receive title. With his information how would they take title?Tenancy in Common Do buyers of a potential lead based paint property have to have an inpsection?No Primary mortgage marketAlways between the buyer(borrower) and lenderConsists of lenders that originate new mortgage loans for borrowers.If a lot is 250 X 300 street paving costs are $20.00 per running foot, and the city will pay 40% of the paving costs , what will be the assessment to the property owner?1,500 What part of an adjustable rate mortgage adjusts? Index How many sections are in a Township?36 (square miles) Which of the following is incorrect concerning FHA and VA mortgages?VA is the government insured loan and could be accompanied by an origination fee Concerning the statute of frauds which does not applyThe statue of frauds states that all contracts must be in writing to be enforceable

What is the complete successive record of a property's ownership?Chain of Title What status is your license if 14 hour continuing education course is not done?Involuntary Inactive What are the 2 rules for CMAs?1. Cannot call it an appraisal2. Do not have to follow USPAP rule FHA (Federal Housing Administration) mortgage Government insured loanOrigination fee Can the widow of a veteran get a VA loan? YES, cannot if remarried Which of these describes a non-freehold estate that includes a definite specified amount of time Estate for years What lien takes priority first and second? Property Tax, Special Assessment In which theory of lending does a borrower retain ownership (title)?Lien theory What requirement is not apply regarding dwellings built prior to 1978 Buyers must have the property inspected for lead-based paint Which statement is false concerning the primary mortgage market in the secondary mortgage market?The primary objective of the second mortgage market is to create new loans for borrowers to increase the money supply for lenders What kind of appraisals can licensed agents not do?Any appraisal for loans - federally related Tenancy at WillA lease with no ending date, does not have to be in writing

• NON FREEHOLDmust include set terms for legal notice

of termination Are there max amounts that can be borrowed on FHA and VA loans?FHA - max amountVA - no max What must actively licensed and inactively license sales associates do for continuing education?Must complete 14 hours of continuing education every 2 years Which of the following clauses or covenants in a deed states that the grantor owns the property and has the right to convey it?Covenant of seisin (own it and have right to sell it) In addition to the 3 duties of all brokerage relationships, what 6 duties does a Single Agent have? UPCOLD

• Use skill, care and diligence2. Present all offers and

counteroffers3. Confidentiality4. Obedience5. Loyalty6.Disclosure (full) Two brokers meet and decide to set commission rates on all sales for one year. Which applies?Violation of antitrust laws Rental lists must be refunded within how many days?30 What do FHA and VA loans have in common? Assumable, non-conventional, discount points optional In what theory of lending does the borrower not retain ownership(title) during the loan period?Title theory The subject property is a three-bedroom, two-bath home. A comparable property is a three-bedroom, two and one-half-bath home. An appraiser has determined that the extra half bath is worth about $2,200. What adjustment should the appraiser make?Subtract $2200 from the comparable Where do most of the payments at the end of a loan go?Principal

If a sales associate takes copies of listing contracts after leaving brokerage, he/she could be charged with ______?Breach of trust (stealing copies) What are the rights flowing through your property called?Riparian rights Estate or Tenancy at SufferanceWhen the tenancy at will ENDS or expired or absence of lease - NON FREEHOLD How are commission rates determined?Via negotiation between broker and seller What is the effective yield to the lender if the borrower has 5% interest on a loan and purchases 4 points?

5.5% What is the statute of fraudsThe law that all REAL ESTATE contracts must be in writing to be enforceable Buyers market vs sellers market?Plentiful listings vs scarce listings What is a BPO?Broker's Price Opinion. A written estimate of a property's value, similar to a CMA.What do anti-trust laws do?Protect competition Single agency represents.....Representing one party Which mortgage clause allows the mortgagee the right to demand the outstanding loan balance plus secured interest in the event that the borrower sells or transfers any interest in the property without the lenders prior written consent Due on sale clause A father intended to leave his house to a son and executed a general warranty deed to the property and gave it to her son. Shortly after, the father died, before the deed could be recorded. Which applies?This one has title to the property because title to the property was conveyed when the father delivered the deed to his son and his son voluntarily excepted it Does a deed need to be recorded to be valid? No Nonlicensed assistants may perform which activity?Handout objective written information on a rental property In addition to the 3 duties of all brokerage relationships, what 4 things must a Transaction Broker do? UPLP

• Use skill, care and diligence2. Present all offers and

counteroffers3. Exercise Limited confidentiality4. Perform additional duties that are mutually agreed to Amy, Bob, Frank, and Francine all co-own of Beach House on St. Petersburg Beach. Frank died, and his co-ownership of the property passed, according to his will, to his son.How do these parties own the property?Tenants in common Freehold vs. Non FreeholdFreehold means you ownNonfreehold means you rent How many acres in a section?640

• duties required in no brokerage/all brokerage

relationships: ADD

• Account for all funds entrusted to the licensee2. Deal

honestly and fairly3. Disclose all known facts that materially affect the value of the residential real property that are not readily observable to the buyer What is leverage?Use of borrowed funds to purchase assets or to finance an investment Reparian RightsFlowing water rights Transaction broker represents....Both parties Two close friends on a daycare center as joint tenants with the right of Survivorship. One owner passed away, who owns the daycare center?Surviving owner becomes soul owner of the daycare center by operation of law

What status is your license if 45 hour post licensing course is not done?Null and Void If you were at the POB and you are headed and N90° east, what direction are you headed?East=90° What must Brokers disclose to all prospective buyers?anything that is not readily observable, ie leaky roof What type of notice is also called legal notice and is achieved by recording documents in public records?Constructive notice If the title company is holding the escrow check, what must be on the purchase and sales contract regarding the title company?The name, address, and phone number of the title company Which statement is true about the monthly payments on a 30-year fully amortized loan?Initially, interest is the largest portion of the payment What's the purpose of the Statute of Frauds? To make contracts enforceable in court of law If a sales associate takes original listing contracts after leaving brokerage, he/she could be charged with

________?

Larceny (stealing originals) What does amortized mean?Paid off - at the end of the loan period, the loan will be paid off What are the two components of an adjustable rate mortgage?Index and margin A broker sold three houses in Florida to a customer that now lives in Chicago. The same customer uncovered an opportunity with someone who might want to buy property from the Florida broker. The customer asked the broker if he would reimburse her for the expenses incurred and convincing the person to buy property from the Florida broker. Which applies?The broker cannot reimburse a customer because the customer does not have an active real estate license RedliningWhen lenders or insurance companies deny loans or insurance coverage based on discriminatory practices.Who is the largest participant in the secondary mortgage market?Fannie Mae Which of the following is a penalty for first time minor violation that is not accompanied by a fine?Notice of noncompliance What are the reasons and amounts for a refund on a rental list?

MISTAKE = 100% REFUNDANY OTHER REASON = 75%

REFUND

A real estate brokerage company has entered into a single agent buyer broker relationship with the buyer. In order to show this buyer property that is listed with the same brokerage company for which it is a single agent, in what brokerage capacity may the company work with buyer and seller?Both the seller and the buyer must transition to transaction broker relationship before the buyer can be shown the sellers property If a sales associate picks up an escrow check on Tuesday, when does the broker have to deposit it into the escrow account?Immediately, as defined, by Friday / 3 business days