Fortune academy Real Estate Exam Questions Flashcards

Fortune academy Real Estate Exam Questions Flashcards novationsubstitution of new contract in place of initial contract-new contract landSurface of the earth extending upwards to infinity and downward to center of the earth Delivery and acceptancehave a valid deed their must be "delivery and acceptance"(with deed)-meeting of minds Adverse possessionyou move onto someones property and act as if you have the right to be their-SC=stay for 20 years-open, notorious and hostile Cooperativesa co-op owner gets stock(personal property)-NOT ownership of stock certificates of real property Escheatdies without a will (intestate) and no heirs can be found, the property will go to the government lien theory statemortgagor holds legal and equitable title to the property= owner has title-SC is a lien theory state Partially amortized mortgagefixed rate level payments based on period of time longer than actual term-outstanding loan balance at end of period of time results in ballon payment-10 year loan(when ballon payment due, after 10 years) on 30 years(amortization period) tenancy in commonform of co-ownership where each owner has complete possession in the property-goes through probate-most common form of co-ownership in SC grantor sells a property to grantee. After the sale the grantor leases the property from the grantee. In other words, the grantor becomes the lessee and the grantee becomes the lessor. This arrangement is best described as a...sale, lease-back balloon paymentfinal payment of mortgage loan that is larger than required periodic payments because loan amount was not fully amortized sale leasebackowner sells the property to an investor and leases it back to original owner from the new owner Eminent domainRIGHT the government has to acquire privately owned real estate for public use Estatedegree, quantity, nature and extent of ownership one has in real property.-possess property-possession by lease=leasehold estate-possession by ownership=freehold estate priority of liensReal estate tax liens jump above all other liens

if the mortgage payments are paid in full before the bank forecloses on the property, the mortgagor has a right called...Redemption Under the cost approach method of appraisal, the term "accrued depriciation" would not refer to which of the following options?a. Down Zoned landb. Termite damagec.outmoded plumbing fixturesd.ecternal lighting fixtures in need of repair Down zoned land-never appreciate land down to appreciate test hypothecationpledging of property as collateral for a loan without surrendering possession of property single most profitable use for a property is.... highest and best use Closing (settlement or closing of escrow) completing a real estate transaction-accounting is made between parties, money is distributed, pay off of existing liens are completed according to terms of sales contract-buyer accepts current property in condition CC&RsCovenants(promises), Conditions (contingencies), and restrictions-New subdivision and control the type of home that can be built, the cost, square feet, height, etc.-become generally accepted that informing buyers concerning CC&Rs is the agents responsibility Demand is not effective in determining the value of real property unless it is combined with...purchasing power Condominiumsmaster deed must be recorded when a loan is assumed and the original mortgagor is released from liability by the lender it is referred to as a novation there is a word that indicates there is a lien on your property; however, you can still use the property. the word is...Hypothecation All of the following are private control of property except which one?a. CC&Rsb. conditionsc. deed restrictionsd.zoning ordinances Zoning ordinances Acknowledgmentsign document before notary your signing is said to be an "acknowledgment" General Warranty deedgives greatest protection to the grantee and greatest liability to grantor-a promise-strongest deed you can give or receive SocialSocial unrest in an area will affect the value of the property-neighborhood cycles affect value Assignment-initial mortgagee signs over the note to third party-assignor retains liability A home is sold for $45000. If an 80% loan to value ratio is used, a discount of 4 points would be $1440 When applying different weights to the approaches to value an appraiser is using a method of reconciling data known as...Correlation

Disbursement of funds paid first too...delinquent real estate taxes a person borrowed $3,000 for 9 months at 9% interest.What amount does he have to pay back at the end of the period including interest?

$3202.50

Bo owns a large tract of land and his home is next to the road. Bo sells the back part of his lot to John. At the time of sale Bo gave John the right to use a 20-foot strip of land across his property for a driveway. This is an...Easement appurtenance two lots were purchased for $4000 each. You then made three lots out of the parcel and sold them for $3000 each.What percent of profit did you make on this investment?

12.5% SubstitutionWe normally buy a lower price property before a higher price property if it fills our needss Summary of appraisal process, last step? Reconcile or correlate data and estimate value Zoning law classificationsResidential, Commercial, Industrial and Agricultural DedicationGIVEN, Acceptance is required-transfer of privately owned property to the public without consideration dominant tenementtract of land that BENEFITS from the easement Certificate of reasonable value (CRV)issued by approved licensed VA appraiser who must appraise property Federal Housing Administration (FHA)INSURES loans joint tenancy has all the characteristics execpt what?heirs of joing tenants retian and survivorship interest mortgage interest ratestied to movement of an objective economic indicator called an index-interest rate is index rate plus a premium=margin-point=interest-tied to condition of money market Yolanda wants to clear $90000 on the sale of property after paying all expenses. If the brokerage commission is 7%, attorney fees are $300 and closing cost estimated to be $250, what must the property sell for to meet Yolanda wants?

$97,336

most significant test to decide if an item is a fixtureintent of the parties police poweradopt and enforce laws Income approach (capitalization rate)Method of determine value on net income The sales price is $42200 with a commission of 6.5%. The sellers also owe $483 in closing costs and $117 in prorated taxes. How much will they net at closing?

$38857

Real propertyland plus things permanently attached mater plancities and counties incorporate their long-term usage strategies and growth policies in a land use plan or master plan For an investment property valued at $100000 to earn 10% on the investment, the monthly income must be

$833.33

Fee simple subject to an executory interest an estate where, upon happening of designated event, title isautomaticallytransferred to third party

Cost approachestimate value of land as is it were vacant Fixturesan item of personal property that has been permanently attached to real estate Covenant of warranty foreverif grantees title fails, grantor will compensate the grantee for the loss Certificate of Eligibility (COE) for VA loans certificate from the Veterans Administration-eligible Servant tenementtract of land over which the easement runs a seller does not want to lose his low interest rate on his non-assumable loan or pay capital gains on the full sale price, so he agrees to finance the property himself and continues to pay payments to the first mortgagee. What type of loan is needed?wrap around Zoning lawsimplements master plan through zoning laws-regulate and control the use of land and structures within designated areas metes and bounds-measurements and directions (courses and distances)-based on monuments which are fixed objects use to establish real estate boundaries mortgage interest rates are based on?State of money market Adam grants a life estate to his mother. This life estate is based on the life of Adams father. When Adams father dies the estate goes back to Adam. While Adams father is alive Adams interest in the property would be...Reversionary tax liena real estate tax lien normally takes priority over all other liens-encumbrance on property Granting clauseuse to express the grantors intention to convey the property-includes the word "GRANT" licensepersonal revocable privilege to enter the land of another for a specific purpose a developer buys a tract of land and subdivides it into lots.if the developers loan covers the entire tract, which of the following is correct when he sells a lot?a. he must obtain a new mortgage for the remaining unsold lotsb. the buyer becomes liable for a prorated amount of the mortgagec.developer cant provide clear title to it until the mortgage is paid in fulld. mortgagee may release its lien on the lot sold on receipt of an agreed sum The mortgagee may release its lien on the lot sold on receipt of an agreed sum Easementa right to use the land of another for a specific purpose Appurtenantannexed to the ownership of one tract of land and allows this owner to make use of neighbors land-must be two adjoining lands owned by separate parties The room is 100 feet by 9 feet. how many square yards of carpet will be required?100 life estate pir autre viebased on life of some other person