Prep-Agent Master Exam Questions Flashcards

Prep-Agent Master Exam Questions Flashcards JudgmentWhich of the following would be classified as a general lien?A fee simple absolute estateA buyer learns from his real estate professional that the ownership rights of the seller's property will continue forever, and that no other person claims to be the owner or has any ownership control over the property other than the seller. What type of estate will the buyer have upon closing?Allocation Method (land value)used to determine value of improved properties by deducting the value of site improvements to get the value of the land.Truth in Lending ActRequires creditors to provide consumers with the terms and cost of credit A real estate property tax lienWhich of the following is a specific, involuntary lien?Income ApproachThe method that adds all the income generated by the production of final goods and services to measure the gross domestic product.There is not a relationship between the brokers- Broker Carr represents the seller and Broker Smith represents the buyer.Broker Carr, with ABC Real Estate Company, listed a property with a seller. Broker Smith, with XYZ Real Estate Company, called Broker Carr and disclosed that he was working with a buyer. Broker Smith wrote a purchase offer with his buyer for the property. What, if any, is the relationship between the buyer's broker and the listing broker?Allocation Methodused to determine value of improved properties by deducting the value of site improvements to get the value of the land.

Both the lessor's and the lessee's signatures: It is not

always necessary for a lessor and a lessee to sign a lease for more than one year.Which of the following is not required to be noted on the agreement to create a lease for more than one year?verbal contractUnenforceable, can be difficult to prove Subject tothe existing financing that a homeowner has setup is taken over by an investor. This route is basically paying for the mortgage already in place through an agreement with a homeowner.All of the other options make this approach unreliable:When is the market data approach the least reliable?

Reverse Mortgage: A reverse mortgage allows people 62

years of age or older who have considerable equity in their homes to borrow money against that equity.A homeowner has owned her house for over 65 years. It has fallen into disrepair, but because she lives on a fixed income, she does not have the money to make the needed repairs. She has a considerable amount of equity in the house. What type of loan would BEST provide her the

funds to make the necessary repairs?rescind the contractThe buyer of a home was not informed that the house was on a septic tank system, and she didn't discover this fact

until the system backed up a few days after she took

possession. The buyer typically has the right to:

AllocationWhat is the best way to appraise a land site?legal titleOwnership of property; for real estate, a lawful claim, supported by evidence of ownership.population compositiona snapshot of the demographic profile of a population based on fertility, mortality, and migration rates Comparable propertiesIn valuing a single family residence by the comparison

approach, an appraiser would make adjustments to:

apply the capitalization rate:One part of the process used in the income approach to

determine value is to:

Federal Fair Housing Lawcreates a policy of providing fair housing for all persons through the United States Comparison ApproachA real estate comparison method which compares a given property with similar or comparable surrounding properties; also called market comparison.simple interestinterest paid on the principal alone fee simple absolute estatethe greatest estate that the law permits in land. The owner of a fee simple absolute estate owns all present and future interests in the property.depreciated book value of the building.The purchaser of a sale-leaseback transaction would be

least concerned with:

Encumbered: Encumbrances on property burden the

property in some fashion.

Land that is subject to an easement is said to be:

a customerA real estate licensee has a buyer agency agreement.What is the seller in this situation?Functional ObsolescenceAn owner was building a house for himself. Due to personal preference, he decided not to install a bathtub. This could

result in:

40 acresHow many acres are in a lot that is 14 of a mile wide by 14 of a mile long?

• unilateral or bilateral contract 2. contract to find a buyer

for a property 3. employment contract.

A listing agreement is a(n):

Deed RestrictionsProvision placed in deeds to control future uses of the property.Analyzing and weighing the findings obtained by the different approaches to value to arrive at a final estimate of value.The term reconciliation refers to which of the following?Equal Credit Opportunity Act (ECOA)A federal act, which prohibits discrimination by lenders on the basis of sex or marital status in any aspect of a credit transaction.Net Lease (Triple Net Lease)A lease requiring the tenant to pay not only rent but also costs incurred in maintaining the property, including taxes, insurance, utilities, and repairs.Economic or Social Obsolescenceany loss of value due to conditions outside of the property itself. aka social obsolescence