National Exam - Practice of Real Estate Flashcards

National Exam - Practice of Real Estate Flashcards According to the Truth-in-Lending Act, if any "trigger terms" are used in an ad, all of the following disclosures MUST appear in the ad EXCEPT the prepayment penalties and rebates you have been making constant payments of $653 / month on your mortgage.The balance after your last payment was $80,300. The interest rate on your mortgage is 8%. What will the balance of your mortgage be after your next payment?Answer = $80,182.3380,300 x .08 = $6424/year6424/12 = $535.33/mo653 - 535.33 = $117.6780,300 - 117.67 =

$80,182.33

difference between planning and zoning is that zoning...is a legal implementation while planning is a process depending on geographic location, FHA will insure mortgages on 1-unit dwellings for up to

$729,750

between FHA and VA loans which is gov't insured vs guaranteed?FHA = gov't insuredVA = gov't guaranteed Prospective buyers made an offer on a property. The seller did NOT accept, but made a counteroffer. The prospective buyers signed the counteroffer and the real estate agent delivered their acceptance to the seller. In the interim, the same buyers had found another house that they liked better and made an offer on it, which was accepted. Which of the following is TRUE?both contracts are valid seller recourse if buyer defaults-declare the contract forfeited-rescind the contract and keep all or part of the deposit as liquidated damanges-sue for specific performance-sue for damanges according to the imputed interest law with installment sales amounts what is NOT covered ?anything less than $3000 is not covered a salesperson lists a property with a contract that allows for subagency and dual agency. The salesperson is...an agent to the broker and a subagent to the principal Too much leverage may result innegative cash flow what percentage of income must be based on sales production in order to qualify for independent contractor status?90% In helping a buyer to select a lender, if the buyer believes he has good credit and his income is documentable as a salary and by tax returns, the licensee might recommend a mortgage banker, instead of a mortgage broker, for all of the following reasons EXCEPT more variety of loan programs available how does a creditor who has obtained a judgment get satisfaction against a debtor who will not pay?writ of execution granting a conventional loan requires that the borrower provide the lender with which of the following?mortgage and promissory note

in most states, foreclosed property is sold throughpublic auction what is not a characteristic of a FHA loan? that the FHA provides the money for the mortgageThey do NOT do this which of the following is exempted from the Federal fair housing laws?the rental of rooms in an owner-occupied, 4 family dwelling MOST closed real estate transactions should be reported to the IRS. REQUIRED information includes seller name(s) and social security number(s) and the sale price a salesperson for a broker listed an owner's home under an exclusive right to sell listing contract. which of the following statements is correct?the listing belongs to the broker The Department of Housing and Urban Development estimates that most private homes built before 1978 contain potentially dangerous levels of lead. Because of this, some Federal agencies, such as FHA, require the buyer to acknowledge disclosure of the presence of any known lead paint prior appropriation is used in states in which water is..scarce what is NOT a consideration in the definition of market value?buyer and seller must agree to appraised value condos are owned by what type of mutual ownership tenants in common Joint tenancy-ownership by 2 or more people WITH rights of

survivorship-four unities required for this ownerhsip: time,

title, interest and possession buyer recourse if seller defaults-rescind or terminate the contract and recover earnest money-sue for specific performance-sue the seller for damanges situations where it is appropriate for a buyer to enter into a relationship with buyer broker 1) a family business relationship or friendship exists, which makes it difficult for broker to be completely loyal to the seller2) working with former seller clients as buyer customers3) a buyer prefers to have the agent as her advocate4) a broker is buying for himself; he must disclose that he is a licensed agent and representing himself and not a seller depreciation is calculated based on thecost of the building only what is a purchase money mortgage?a mortgage on property given by a buyer, either to the seller or to a third party in order to secure a portion of the purchase price when someone has living heirs but dies without a will, the estate is distributed according to the...statute of descent At the closing on June 15, the buyer is assuming a mortgage presently on the property, on which the monthly interest charge is currently $600. The seller has made the payment due on June 1. Assuming a VA mortgage, what is the adjustment made at closing?debit seller 300credit buyer 300 bilateral contractboth parties promise to do something, one promise is given in exchange for another

the real estate licensee who accepts an undisclosed fee for referring a buyer to a specific title company may be in violation of respa Practice of Real Estatein regards to convicted drug dealers...they are NOT covered under any condition do FHA loans have a prepayment penalty?no, FHA loans do not have a penalty-neither does VA loans Practice of Real EstateRemedies under the new

amendment include:

1) a civil penalty, not exceeding $16,000 for the first offense2) a penalty not exceeding $37,500, if another offense was committed within the past 5 years3) a penalty not exceeding $65,000 if two or more discriminatory practices have been found in the past 7 years with an FHA mortgage insurance premium, one could reduce down payments to as low as _______ % 3.5% a broker requires that all budgeted costs for the planning period be justified each time a new budget is developed.This requirement reflects the concept of zero base budgeting what are characteristics of a conventional loan? -neither insured or guaranteed by a public agency-security rests on the borrower's ability to pay and the collateral pledged-ratio of loan usually does not exceed 80% what is a defining characteristic of conventional mortgages?their interest rates are set by the lender the difference between interest rates in financing arrangements such as wraparound mortgages is called arbitrage strict liability under superfund means that... the owner is responsible to the injured party without excuse The escrow officer or closing agent MUST give information regarding the sales price and seller's social security number to the IRS the relationship in which the agent is placed in the position of trust and confidence to the principal is known by the term as fiduciary an easement can be terminated bymerger of titles A veteran buys a home with a DVA guaranteed loan. 2 years later, the veteran sells the home to a buyer who, with the lender's approval, assumes the veteran's loan. In this situation, the veteran is...no longer financially responsible if the buyer defaults six months later a contract that lacks legal object is considered to be..void the process by which a mortgagor regains his or her interest in a property is called...redemption why was jones vs mayer decision of 1968 importnat?it upheld the civil rights act of 1866 tenancy in common-ownership by two or more WITHOUT rights of survivorship-upon death, share will go to that person's heirs what does assemblage refer to?combining several parcels of land into one if conditions for purchase are included in a deed and these conditions are violated, what is the penalty?return of the property to the original owner

what does a graduated payment mortgage allow a buyer to do?a buyer to purchase a home with initial monthly payments lower than the level-payment, amortized mortgage when a property owner uses his home as collateral for a loan and creates a lien in favor of the lender, title is held by the...mortgagor an appraise mustbe licensed to handle federally related work on property valued at more than 250K a "time is of the essence" contractmust be performed in the time specified. any party who does not perform on time is guilty of breach of contract a promissory note is NOT what?it is not an evidence of title Under a land contract for deed, who retains fee ownership of the property?vendor building codes would dictate-materials and/or performance standards for structural components as well as heights, safety features, sanitation and health requirements, setback and sideline restrictions-also rules by local govs to regulate construction standards Tenancy by the Entiretyjoint tenancy where the co-owners are husband and wife Which of the following BEST illustrates the concept and intent of a buffer zone?garden apartments located between a single family residential neighborhood and a shopping center Practice of Real EstateTruth-in-Lending Act (TILA)Disclosure/Coverage Requirements -cost in credit transactions-customer has 3 day right to rescind-loans to In every real estate transaction, a legal description of the real estate MUST appear in the transaction documents.What kind of legal description should be used in MOST transactions?the same one used in prior transfers of the parcel verified by a surveyor Which of the following is the first action to take when mold problems are found?identify and remedy the cause of the problems economic characteristics of land arescarcity, location and durability The real estate contract for a specific property for use as an unlicensed whiskey sales operation was forced to terminate. The termination was the result of impossibility of performance A will has been drawn up leaving the family homestead to the owners' granddaughter. Once that has been done, the owners may make any changes they wish through a codicil or a later will The Department of VA will guarantee a lender up to four times the amount of the veteran's entitlement up to what amount?

$104,250

A homeowner has negotiated with a neighbor to obtain the permanent right to pass over the northern part of the neighbor's land to gain access to the river. He pays the neighbor $9,000 for the right of access and receives a deed. This is an easement appurtenant with an FHA loan, the borrower will finance an up-front premium worth how much?

1.5%