Idaho Real Estate License Pearson Vue Test Set Flashcards

Idaho Real Estate License Pearson Vue Test Set Flashcards Different types of liens can happen to a property. What does a subordination agreement do?A subordination agreement between lien holders can change the priority of a lien. Generally, real estate taxes and special assessments take priority over all other liens.How big is each section within a township? One section is one square mile or 640 acres.In Idaho, how often do you need to renew your license?Every 2 years.Definition of: Estate at sufferanceCreated when the tenant who legally obtained the possession of the property now illegally remains in possession. Basically a squatter.How long does an agent have to turn in the earnest money?Earnest money needs to be turned in immediately upon receipt.Definition of: Nonconforming useA permitted use of real property that was lawfully established at the time of original construction, but no

longer conforms to the existing zoning. Ex: Grandfather

clause as in a gas station on main street is in an area that is rezoned as residential, the gas station can stay.Definition of: Deed of reconveyanceA recorded document which gives notice that the loan has been paid on full.

CALCULATOR QUESTION: Find the dimensions in feet

and total acres ofN 1/2, NE 1/4, SE 1/4 of section 36.20 Acres1320 x 660 Sq. Ft.

CALCULATOR QUESTION:Find the dimensions in feet

and area in acres of E 1/2 ; NW 1/4, SW 1/4 of section 36?Acres = 40 + 320 = 360Dimensions = 5280 x 2640 ft and 1320 x 1320 Under the basic principles of values, what is the most profitable single use to which a property can be adapted?Highest and Best Use. P. 314 in big book.A tenants right to possess real estate for the term of the lease is called a leasehold estate. What are the four types of leasehold estates?

• Estate for years.2. Estate from period to period.3. Estate

at will4. Estate at sufferance.

Definition of: Buffer ZonesUsed as a transitional area between 2 incompatible

zones.Ex: Parks and rec areas used to separate residential

areas from nonresidential areas.What are the key components of "Selling without paying off the loan"?

• "Subject to" mean the seller remains liable for the loan.

(Bank does not know)2. "Assumption of" means the seller may be released from their liability. (Bank does know) In Idaho, how long is the license examination valid for?1 year.

Definition of: SteeringChanneling buyers into or away from particular areas on

the basis of protected class.In Idaho, if the customer has entered into a written compensation agreement or customer services agreement

the licenses shall:

Be available to timely present all written offers and counteroffers.Definition of: Functional ObsolescenceOutdated features or design. (Possibly curable)- Low ceilings, six bedrooms/1 bathroom, split entry home.

What are the protected classes on a national level?1. Familial status - families with minor children.2.Race.Equal3. Sex/gender4. Handicap5. ColorOpportunity6.Religion7. National origin.Can remember these as "FRESHCORN".Freshcorn is protected in Idaho The buyer has how many days following delivery of the disclosure form to rescind their offer?

• Business days.

Definition of: Discount PointsDiscount points allow borrows to buy a lower interest rate on their mortgage by paying an upfront fee. (One percent of the loan amount) A township contains what?Each township is 6 miles by 6 miles = 36 Sq. Miles. That converts to 36 sections or 23,040 acres.If a person sells their property, the words "Subject to" mean what?Means the seller remains liable for the loan. (Bank does not know) What must never happen if using Limited Dual Agency with Assigned Agents?The Designated Broker may never be one of the assigned agents. There must be three licenses in this transaction.The Broker will remain a dual agent, while supervising the two agents in the performance of their duties.Who needs to sign the counter offer?Both the buyer and seller need to sign the counter offer in order to make it valid.

CALCULATOR QUESTION: How many acres are included

in the following legal description? The N 1/2, SW 1/4, NW 1/4.20 Acres Definition of Estate from period to period. -Exists for a fixed period of time, but automatically renews itself.- Payment and acceptance of the rent extends the lease for another period.- Proper notice must be given to

terminate the lease.Ex: A month to month lease for an

apartment.How many feet in one mile?5280 feet In a real estate sales contract, the amount of the earnest money deposit is determined by?Stated in the agreement by both the buyer and seller.If a person sells their property, the words "Assumption of" mean what?Means the seller may be released from their liability. (Bank does know) Definition of: Alienation ClauseSelling the property without paying off the loan.In Idaho, how long is the initial licenses courses good for?3 years.When an agent sells their own property, what must happen?

• Must conduct the transaction through the licensee's

Designated Broker.2. Must disclose licensee status in writing on the purchase agreement.Before a customer can become a client by signing a representation confirmation agreement, the agent must first give the customer what?The Blue Brochure - The Idaho Real Estate Commission Agency Disclosure Brochure.

Definition of: DepreciationThe loss of value from any source.

Definition of: Title TheoryThe mortgagor gives the mortgagee legal title and retains equitable title.Legal title is returned to the borrower upon full payment of the debt. (Idaho is referred to as a title theory state)

Definition of: Estate for years- Estate owned for a definite period of time, regardless of

how long.- Specific beginning and ending dates.Ex: A one

year lease beginning June 1st and ending May 30th of the next year.Definition of: BlockbustingInducing homeowners to sell by claiming negative impacts on property values from the entry or prospective entry into the neighborhood by people in one of the protected classes.How long does an agent have to submit any signed documents to their broker?Prior to end of next business day.

There are 3 approaches for determining real estate value:-

The Sales Comparison Approach- Cost Approach- Income ApproachWhich one is most reliable and widely used in residential transactions?The Sales Comparison Approach.Definition of: Physical deteriorationNormal wear and tear (Curable)- Peeling paint, leaking roof, damaged floor, broken windows.How long can Idaho property taxes go unpaid? 3 years, then the property may be sold to collect the missing payments.Definition of: Loan Origination FeeExpense that is paid to the lender to cover their costs for generating the loan. (One percent of the loan amount) Idaho code requires that a completed, signed, and dated disclosure form be delivered to the potential buyer within how many days of an accepted offer?10 days (not business days) When are Idaho property taxes due?December 20th: All, or at least half of the tax payment is due. Other half is due by June 20th if first payment is only half.Definition of: Life Estate.Ownership limited to the duration of a person's lifetime.Based on the concept of "Pur autre vie" meaning to depend on the lifetime of another, rather than the owner. There are two types. 1. Remainder Interest and Reversionary Interest.How many sq. ft. are in an acre?43,560 Sq. Ft.(Remember: 4 retired people traveling 35 mph in a 60) How does a customer become a client?The customer must sign either a buyer or seller representation agreement.Definition of: External ObsolescenceConditions outside the property lines (incurable)- Airport flight path, neighboring freeway, intermingled with commercial properties, etc.How does an agent get paid?Idaho code dictates that ALL income and payments, including referral fees, MUST be paid through the Designated Broker.When is "First substantial business contact"? When the customer starts to divulge confidential information about themselves.Definition of: Fee Simple AbsoluteNo limitations except for public and private restrictions (zoning laws and restrictive covenants)

What about advertising can a agent get in trouble with?Using choice words that indicate a preference or is

discriminatory. Ex: Exclusive neighborhood, English

speaking only, perfect for young family or bachelor pad.If a customer signs a compensation agreement, the brokerage and its licensees owe one additional duty. What is it?Be available to receive and present written offers and counter-offers to you or from you.

Definition of: AddendumsAn addendum is a document attached to and made part of

the original contract. (RE-11 is the name of the form) Definition of Specific Performance.A legal action to force a party to carry out the terms of a contract. i.e. forcing closing of a transaction.Definition of: Estate at will- Exists with the consent of the landlord.- Usually informal and oral- Indefinite in length- Automatically terminates at

the death of either party.Ex: A friend living in a guest house

for as long as they need.When no comparisons exist and when using the Cost Approach Method, how can we estimate the total value of the property with improvements?

• Estimate the value of the land as if it were vacant.2.

Estimate the cost of constructing the improvement(s).- Reproduction: An exact copy or replica or- Replacement: A reasonable copy.

Definition of: Gross DensityThe number of residential units per acre of land.

How do we make necessary adjustments when determining real estate value with comparables.

• If the comparable property is SUPERIOR to the subject,

we DEDUCT from the comp's value.- If the comparable property is INFERIOR to the subject, we ADD to the comp's value.Remember the hand movement we did in class for this.Definition: Cooperative LicensesIdaho code 54-2011 Allows for an actively licensed out-of-state broker in good standing to work with an actively licensed Idaho Designated Broker for 1 commercial transaction.Definition of: Lien TheoryThe mortgagor retains legal and equitable title, while the mortgagee has a lien on the property as security for the debt.Can an agent complete and charge for a Brokers Price Opinion?Only an associate or designated broker may perform a BPO and only the broker can charge for it, not the agent.In Idaho, how long are fingerprints valid for? 6 months.In Idaho, some duties owed to a customer without a

compensation agreement may include:

Perform ministerial acts to assist the parties to a sale. i.e.filling out paperwork, opening escrow, coordinating appraisals or inspections, etc.Definition of: HypothecationPledging property as a collateral without giving up its possession.

Definition of over improvement:Land improvement that is more extensive than the

surrounding neighborhood justifies. Ex: adding a swimming

pool that costs $40,000 but only adds $10,000 in value.What are the parts of the magic triangle? Top: Part (commission)Left bottom (Interest Rate)Right bottom (Entire or whole sales price)Can remember it as PIEPart, Interest, Entire.