KAPLAN TEST ONE Flashcards

KAPLAN TEST ONE Flashcards The purpose of the National Association of REALTORS® is to keep members up to date on current housing trends, legal issues, and brokerage business practices.Equal Credit Opportunity Act of 1974:Age, public assistance income, religion, race, color, sex, national origin, and material status What would be the proper description of a vast piece of property whose only "improvement" is an abandoned and heavily deteriorated barn that would likely have to be razed?the property would be called real estate A broker who lists the property for sale or lease represents the owner as a seller's agent If a lender requires a flood insurance policy as a condition for making a loan, the home purchaser may get a policy through which entity?a local licensed property insurance carrier Fair Housing Amendments Act of 1988Disability and Familial Status Actual value measured in dollars of an aspect of construction or location Objective Value The initials NAR stand forNational Association of REALTORS®.Could a property owner lease the surface and subsurface rights (and theoretically the air rights) and still retain control over the property?Yes, an owner could lease mineral rights to an oil company and surface rights to a rancher, and simply collect fees.The 14th Amendment, providing civil rights protections, is an example of which of the seven sources of law?U.S. Constitution Capital outlay necessary to bring a property into existenceCost New construction in a community typically means property values will move depending on the type and purpose of construction.If a mortgage is secured by a property itself, who will likely demand that the structure be insured?Regulations of the lending institution The business of bringing parties together Brokerage The common-law doctrine of 'let the buyer beware' Caveat emptor If a buyer states that he wants to buy a home because he believes it will be a good long-term investment, he is likely to be LEAST concerned about the color of the master bedroom walls Civil Right Act, Housing and Community Development Act, and FAir Housing Amendments Act, collectively Fair Housing Act What is a common market response when supply is limited and demand begins to rise?When supply is exhausted, rent controls are adopted to halt rising prices.Prohibits discriminiation against protected classes evaluating loan applicants Equal Credit Opportunity Act (ECOA) An item that has been added as a permanent part of a building is known as Fixture

Body of law based on custom, usage, and court decisionsCommon Law Elimination or reduction of real estate taxes to attract investment to an area Abatement Created by specific agreementExpress Agency A law that requires accessibility to employment, goods, and services for individuals with disabilities Americans with Disabilities Act (ADA) Encouraging buyers to limit search to particular neighborhoods based on factors such as race or religion Steering A vacant building that had previously been used as a restaurant is being leased by a person who is opening a coffee shop. Which statement BEST describes the trade fixtures installed by the owner of the coffee shop?Even though attached to the real estate, trade fixtures generally belong to the tenant.A person who is prepared to buy on the seller's termsReady, willing, and able buyer Which type of housing is constructed on lots owned by individual homeowners and may either be connected by a common wall or be freestanding homes separated by airspace and attached to each other by exterior shingle and brick or siding?town houses PopulationDemand Amount of goods consumers are willing and able to buy at a given price during a given time period Demand A broker who acts as a subagent represents..? the seller The broker who starts an uninterrupted chain of events that results in the sale of a property Procuring cause Designed to make credit available to every financially qualified applicant Equal Credit Opportunity Act In a real estate transaction, the ornamental shrubs around a house are considered which kind of property?real Land on which three contiguous residential properties were razed and replaced by a legally rezoned parking lot would carry what classification?Commercial Encouraging the sale or rental of property by claiming a protected class of people are moving into the area Blockbusting Most Texas homeowners insurance policies cover losses caused by?smoke DemographicsDemand If there are only two remaining spec homes in a development of 100 completed and sold units, the prices of those remaining homes can be expected to rise. What economic principle is that?As supply falls, demand increases Civil RIghts Act of 1866Race and color Requires lenders to report the number of loans applied for an loans made in different parts of their service areas Home Mortgage Disclosure Act Employment and wage levelsDEMAND

The practice of unfairly excluding brokers from real estate professional associations or withholding patronage from other businesses is known as boycotting the competition Construction costsSupply Government controls and financial policies Supply A developer wishes to build a commercial building in the space over the railroad tracks. To do this, the developer must purchase which right from the owner?Air Advertising GuidelinesFor each phrase. Identify whether it would be permitted under HUD's advertising guidelines..-Mother-in-law suite-Near great Catholic School-Family room-Master bedroom-Retiree's dream house-Quiet neighborhood permittedNot permittedpermittedpermittedNot permittedpermitted T?F?Townhouses are constructed on lots owned by the individual homeowners TRUE Regulations passed by governmental agencies have which of the following characteristics?The effect of law Labor forceSupply If a sales agent is working with sellers and makes a mistake in a transaction, in theory the party responsible for the mistake is usually the sales agent's sponsoring broker Employed to negotiate a transaction between both partiesIntermediary broker T?F?According to lenders' traditional rule-of-thumb formula, the payments on all of a borrower's debts should not exceed 25 to 28 percent of the borrower's gross income FALSE Controls the licensing of persons permitted to practice real estate brokerage in Texas Texas Real Estate License Act A form of compensation computed as a percentage of the total sales prices of a property Commision Established after the factAgency by ratification All of the following are true about a licensed associate who is an independent contractor EXCEPT the broker has control over how the associate performs a task.Authorized to represent principal in a broad range of matters General Agent Member of the National Association of Real Estate BrokersRealtist Amount of goods offered for sale within the market at a given price during a given time period Supply A retired couple tells a real estate agent that they want to find a home close to medical facilities and a senior citizens center. On which of the five major factors influencing the choice of property location is the couple basing this request?social services Housing and Community Development Act of 1974: race, color, religion, national origin, and sex May sales agents working as independent contractors play golf every day and report to the office only periodically?Yes, independent contractors set their owns hours

An intermediary broker (or appointed license holder) must...treat all parties honestly What has been the impact on housing to date of environmental concerns such as climate change and the potential for an increase in hurricanes and flooding from severe storms?Prices of homes with water views have been largely resilient to environmental factors.Amount of money paid for a propertyPrice Authorized by principal to perform a single act or transaction Special agent

Fair Housing Act of 1968:race, color, religion, and national origin

Prohibits discrimination in housing based on race, color, religion, and national origin Civil Rights Act of 1968 Performs real estate activities while employed by or associated with a real estate broker Sales Agent Affects the ownership and transfer of real estate Seven sources of law Insurance companies settle property insurance claims on the basis of which of the following...All of these (proration according to the coinsurance clause, fill-replacement coverage, and actual cash value) Flood Insurance Rate Maps change periodically because...flood controls, changes in terrain, and new construction can change the flow of water If the damage to the property when a trade fixture is removed, which party pays for the damage?The tenant May sales agents who work for competing companies, but in the same tier of property values, share information with each other about properties that are either new on the market or about to be brought to market?Sales agents may form loose networks with each other as long as price-fixing does not take place, fair housing laws are not violated, and sales agents from outside the confederation also are allowed to present buyers.Member of NARREALTOR For income tax purposes a homemaker may deduct, from gross income, real estate...taxes Requires lender to meet the deposit and credit needs of their low-and-moderate-income housing communities Community Reinvestment Act If water is found on a property, that makes the propertyland, because it is attached to the property by nature.Which is the right to sell or give property to someone else?Disposition Recovery under the DTPA for an act committed knowingly is limited to economic plus mental anguish damages A property owner had a large bookcase built for the family room to match the cabinets in the kitchen. When it was delivered, and at the request of the property owner, the cabinetmaker did not attach the bookcase to the wall. If the property were sold and a dispute about the bookcase arose after the sale, which test would be applied by the courts to reach the conclusion that the bookcase is personal property?Mode and permanence of annexation Determining a prospective homebuyer's ability to pay depends on which factor?All of these (payment history, balances on installment loans, and number of credit cards) When sales agents work as independent contractors, what is the commission split required by TREC regulations?The Texas Real Estate Commission does not regulate commissions.