Hondros Principles Practices: Final Exam Flashcards

Hondros Principles & Practices: Final Exam Flashcards

Carrie, age 17, is selling the house that she inherited from her grandparents. George has agreed to buy the property, and both have signed a purchase agreement. What is the status of this contract?(a) valid(b) void(c) voidable by Carrie(d) voidable by George (c) voidable by Carrie Agent Leo and his client Hannah have just signed an open listing agreement that will pay Leo a 6.5% commission if he finds a willing and able buyer for her house.Which option best describes this agreement at this time?(a) express, bilateral, executed(b) express, bilateral, executory(c) express, unilateral, executory(d) implied, bilateral, executed (c) express, unilateral, executory Of these, which is LEAST LIKELY to be considered an example of puffing?(a) "like being on vacation everyday"(b) "loveliest street in the whole town"(c) "magnificent chef-inspired kitchen"(d) "three-car garage with room for a workshop" (d) "three-car garage with room for a workshop" Kim is the title officer handling the transfer of Greg and Ashley's house to buyers Alex and Amanda. As they gather at the settlement table, Kim has stacks of documents that need to be signed in order to complete the transaction.Who signs the deed?(a) Alex and Amanda(b) Greg and Ashley(c) Greg, Ashley, Alex, and Amanda(d) Greg, Ashley, and Kim (b) Greg and Ashley Broker Harvey tells Stu, a resident of Supreme Heights, that an immigrant family will be moving into the neighborhood and Stu should list his house for sale before values started to drop. This is an example of(a) blockbusting.(b) condemnation(c) eminent domain(d) escheat (a) blockbusting.A standard form of title insurance policy protects against loss resulting from each of the following EXCEPT(a) the person signing the deed was considered mentally incompetent.(b) the planning board rezoned the neighborhood.(c) the legal description of the property indicated the wrong lot number.(d) a title abstractor missed an outstanding lien searching the public records.(b) the planning board rezoned the neighborhood.A recently building home has hour bedrooms and only one bathroom. This could BEST be described as an example of(a) accrued depreciation.(b) external obsolescence.(c) functional obsolescence.(d) physical deterioration.(c) functional obsolescence.

Belinda buys a house in March. her mortgage is recorded April 1. In May, she hires TipTop to install a pool. TipTop does not pay its subcontractor, who files a lien against her.Belinda doesn't pay her property tax bill when it's due the next January, and the county forecloses. In what order will the liens be paid from the proceeds of the sheriff's sale?(a) mechanic's lien, property tax lien, mortgage lien(b) mortgage lien, mechanic's lien, property tax lien.(c) mortgage lien, property tax lien, mechanic's lien.(d) property tax lien, mortgage lien, mechanic's lien.(d) property tax lien, mortgage lien, mechanic's lien.which of the fiduciary duties owed by a real estate licensee to his or her client survives the termination of the agency relationship?(a) confidentiality(b) disclosure(c) loyalty(d) obedience (a) confidentiality An investor takes out a mortgage to buy rental property. He is able to repay the loan with the rent he collects, while also earning income from the investment. This is an example of(a) depreciation.(b) leverage.(c) liquidity.(d) marketability.

(b) leverage.Leverage definition:The investment strategy of

borrowed funds, such as a mortgage, to increase the potential return on an investment.[Hondros College Ohio

Real Estate Principles & Practices book, Chapter 20:

Taxation and Investment] Licensee Patti is having lunch with an old school friend, Janet. Janet tells Patti, "It's time to downsize. I sure wish I could sell my house." Patti responds, "Well, I have just the

person for you. Make sure you're home at 7:00 this

evening." Identify the statement that best describes the situation.(a) Janet cannot assume any relationship.(b) Janet could be Patti's client through express agency.(c) Janet could be Patti's client through implied agency.(d) Janet has just made Patti her universal agent.(c) Janet could be Patti's client through implied agency.A water main bursts in front of Kevin's property. City maintenance workers dig up part of his front yard without kevin's permission to replace the pipe. This is an example of(a) easement appurtenant.(b) easement in gross.(c) encroachment.(d) trespassing.(b) easement in gross.The term PITI refers to the components of a typical mortgage. What does the "P" stand for?(a) payment(b) percentage rate(c) primary(d) principal (d) principalPITI- PITI is an acronym for a typical mortgage payment, which is the sum of

monthly:PrincipalInterestTaxes (ad valorem property taxes

and perhaps mandatory special assessments, if applicable)Insurance (homeowners hazard insurance and mortgage insurance, if applicable)- The lender rolls one-twelfth of the cost of the borrower's annual property tax and insurance into the monthly mortgage payment and holds these funds in an escrow account. When payment is due, the lender pays the appropriate recipient. Ensuring that these important payments are made protects the lender's interest in the property.- When the collateral

property requires homeowners association fees as a condition of ownership, such as for a condominium, that monthly amount must also be added to PITI to cover the complete housing expense.[Hondros College Ohio Real

Estate Principles & Practices book, Chapter 15: Finance

Practice] Which situation is NOT EXEMPT from the provisions of federal fair housing laws, assuming no discriminatory advertising is used and a licensee is not involved?(a) a developer of a condominium community who will sell only to persons age 62 or older.(b) an owner-occupant of a duplex who will lease the other unit only to a white woman.(c) a private club rents apartments in a building it owns only to members in good standing.(d) a property owner rents his single-family home, but refuses to allow

children because there's a pool.(b) an owner-occupant of a duplex who will lease the other unit only to a white woman.In an attempt to avoid foreclosure, a homeowner asks his lender to accept a purchase price that is less than the amount owed on the property. This type of arrangement is a(a) deed in lieu of foreclosure.(b) deficiency agreement.(c) fiduciary deed.(d) short sale.

(d) short sale.Short Sale definition:A lender-approved sale

from which the proceeds are not sufficient to cover the mortgage amount(s).- SHORT SALE. With a short sale, or short payoff, the lender agrees to accept less than the loan balance when real property is sold. To qualify for a short sale, the seller must prove that they are suffering financial hardship. One of the most frustrating aspects of this option