Kentucky Real Estate Exam National Exam Practice Flashcards

Kentucky Real Estate Exam National Exam Practice Flashcards Riparian RightsRights of the owners of a bordering property to use a flowing body of water, such as a river or creek Littoral RightsRights of the owners of a bordering property to the use of a stationary body of water, such as a lake or sea accrued expensefinancial liability that a company recognizes in its financial statements when it incurs an expense but has not yet paid for it.Federal trade commission act of 1914a U.S. law that established the Federal Trade Commission (FTC) and empowered it to prevent unfair methods of competition and deceptive business practices Cap rateNet operating/property value Environmental impact standard (EIS)federal law requirement in the United States that mandates a detailed analysis of the potential environmental effects of a proposed project If a buyer makes an offer that the seller finds lacking, what actions is the seller most likely to take?Respond with a written counter offer Covenant of right to conveypromise in real estate transactions that assures the seller possesses the legal authority to transfer ownership of the property to the buyer.EasementThe authorized use of another's property for a specific purpose; runs with the land Lamar closes on his new home next week. It's a 37-year-old split level, so his agent asked if he's interested in purchasing a home warranty. "Why would I need a warranty?" he wondered. "Didn't the home inspection identify all of the issues?" What's the agent's best response to Lamar's question?A home warranty often covers appliances and major systems. Also, even the systems that WERE inspected are subject to problems or failure.Regressionis the principle that says a lower quality property located adjacent to a higher quality property can diminish the value of the higher quality property. This is related to the principle of conformity.Evidence of titledocumentation or proof, often in the form of a title deed or abstract, that verifies a person's legal ownership of a property.What are some characteristics of bulk zoning? building height requirements and setbacks for the front, side, and rear yards + May be seen in both commercial and residential areas, rectangular government survey systemA governmental survey system that describes land in reference to principal meridians and baselines The Superfund Amendments and Reauthorization Act

(SARA)

federal law in the United States that amended the Comprehensive Environmental Response, Compensation,

and Liability Act (CERCLA), enhancing hazardous waste management and community right-to-know provisions.

Physical depreciationrefers to the reduction in the value of an asset due to wear and tear, deterioration, or obsolescence of its physical components over time.contributionrelated to how a change in a property impacts the value as a whole. This isn't the same as the dollar value of the change. For example, adding a restaurant quality kitchen to an otherwise modest house won't increase the home's value by the amount spent to renovate, but simply updating the countertops and cabinets might.The Clayton Act of 1914Supplement to the Sherman act, with the same general purpose, designed to cover restraints on interstate trade or commerce not covered by the Sherman act What is the goal of the TILAAllow consumers to make an informed comparison between loans The doctrine of prior appropriationfirst person or entity to use water from a source has priority rights over subsequent users.Act of conveyancea legal document, such as a deed or contract, that transfers ownership of property from one party to another.What type of insurance is a form of indemnity insurance that can protect both the buyer and the buyer's lender?Title insurance Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) federal law in the United States that addresses the cleanup of hazardous waste sites and assigns liability for the costs of cleanup to potentially responsible parties.conformitysays that value is created and maintained when the characteristics of a property conform to its neighborhood.So a new, energy-efficient, seven-bedroom home built in the middle of a neighborhood of older three-bedroom homes would be valued differently than the same house in the middle of a neighborhood comprised of houses similar in age, size, and construction.addendumsupplementary document or attachment that provides additional information The covenant of warrantyseller's assurance that they possess legal ownership of the property and will protect the buyer from any future claims to the title.How does the insurance company determine the replacement value of a home?Insurance companies reimburse based on a property's replacement cost, or what it would cost to recreate that property if it had to be completely rebuilt.Can a listing terminate by perfomanceonly if it sells and closes gives a borrower an estimate of costs they'll have to pay at closing loan estimate Leon and Beth own 1/13 of a timeshare estate. They own weeks 20 and 21, and also weeks 40 and 41. These weeks are inheritable. What type of ownership is this?Timeshare estates are owned as fee simple estates. They convey all rights of ownership and can be sold or passed down to heirs.

How many years does a home warranty cover structural damage?10 years Americans with disabilities act (ADA)U.S. law that prohibits discrimination based on disability, ensuring equal opportunities and access in various areas such as employment, public services, and accommodations.Net operating incomethe total income generated from a property minus its operating expenses, providing a measure of the property's profitability.Federal housing administration (FHA)U.S. government agency that insures mortgages, which facilitates access to affordable home financing and promotes home ownership External depreciationreduction in the value of an asset due to external factors PlottageThe increase or decrease in land value that occurs when several parcels are combined into one large plot, as that value compares to their combined total value if sold individually mechanic liena legal claim against a property that contractors, subcontractors, or suppliers can file to seek payment for construction or improvement work they have performed on that property.Functional obsolescenceA decrease in property value resulting from poor or outdated design or material In a real estate transaction, which two parties are owed the same duties?Customers and other parties Many of an agent's fiduciary duties to the client end upon termination of an agency agreement. Which fiduciary duty never ends?Confidentiality Fair Housing Amendments Act of 1988Added familial status and disability to the protected classes list Principle meridiansimaginary north-south lines used in the Public Land Survey System (PLSS) to establish a baseline for land surveys and identify the starting point for township and range measurements.Federal Fair Housing Act of 1968Prohibits discrimination based on race, religion, color, and national origin in the sale or rental of residential real estate amendmentA change to an existing contract Angelo's aging mother needs a place to live out her remaining years. Angelo conveys a home to her, but only for her lifetime. This is an example of what type of life estate?Ordinary. Ordinary life estates are granted for the lifetime of the grantee. When the life estate holder dies, remaining interest is either returned to the original owner (reversion) or is granted to a third party (the remainderman).U.S. Department of Housing and Urban Development (HUD) government department that helps people find affordable homes, enforces fair housing rules, and supports community development.