PSI Real Estate Test MA - State Portion Only Flashcards

PSI Real Estate Test MA - State Portion Only Flashcards The loan-to-value ratio is used as an underwriting mechanism because...The loan amount needs to be less than the property's value If a manufacturer that is a major employer in a small city moves its operations to another city, it is reasonable to expect...A decline in demand for all types of real estate in the real estate market a principal instructs an agent to inform any minority buyer that the property was just put under contract an hour ago and is no longer available. the agent refuses to comply. in this case The principal has proposed an illegal act, which should not be obeyed Who are the essential parties involved in an estate in trust?Trustor, trustee, and beneficiary What is exempt from Massachusetts real estate licensing requirements?A person licensed as an auctioneer A transaction broker should disclose his or her agency relationship to prospective buyers and sellers Upon first substantive communication What is required for an electronic transaction to be valid pursuant to the Massachusetts Unifirm Electronic Transaction Act?Any agreement reached must specifically state it is being entered pursuant to the provisions of. MUETA.A house is being appraised using the sales comparison approach. The house has 3 bedrooms, two bathrooms, and a patio. The appraiser selects a comparable house that has

• bedrooms, 2.5 bathrooms, and no patio. The comparable

house just sold for 100,000$. A half bath is valued at 5000, and a patio at 1000. Assuming all else is equal, what is the adjusted value of the comparable?

96,000$

Which of the following contracts must be in writing to be enforceable?A two-year lease In addition to lead based paint disclosures required by federal law for home built before 1978, MA require sellers and real estate licensees to provide a disclosure called the Property transfer lead paint notification How much notice is required to evict a tenant at will for non-payment if rent?14 days A client revokes an exclusive right-to-sell listing two months

prior to expiration. The reason stated: the client is too busy

to meet with the agent. In this case, The client may be liable for a commission and marketing expenses The MA consumer protector act is based on The federal trade commissions act If a commercial real estate market is under supplied, it is likely that...Rental prices in that market will rise The Massachusetts board of registration of real estate brokers has Five members The amount of a real estate broker's commission is established by Negotiation with clients

Why is a wraparound mortgage loan potentially interesting to a home seller as an investment?A wraparound lender can profit when the interest rate of the wraparound exceeds that of the underlying mortgage Before constructing or installing a new above ground storage tank, a permit must be obtained from the State fire Marshall A retirement facility prohibits ownership of any unit by persons under 55 years of age. The association claims it has made the prohibition properly. Which of the following is true?The prohibition may be legal if performed correctly A lease automatically terminates under which of the following circumstances?The tenant goes out of business The three principal brokerage firms in a market agree to pay sales agents 15% more that any other competitor currently in practice. This is an example of Collusion A licensee who charges a fee for renting property must provide each prospective tenant with a written notice that states the tenant will pay a fee for the licensee's services.The notice must be given to the prospective tenant...At the first personal meeting with the licensee and tenant A sale contract contains an open-ended financing

contingency: if the buyer cannot obtain financing,the deal is

off. Six months later, the buyer still cannot secure financing. Which of the following istrue?The seller may cancel the contract, since it can be ruled invalid A property owner is precluded by deed restriction from developing a thirty foot boat dock. The limitation prompts the owner to sell the property to another party. The new owner...Takes title subject to the same restriction A condominium owner enjoys...Fee simple ownership of the airspace in a unit and an undivided share of the entire property's common areas Which is true of a loan with negative amortization?Payments are not sufficient to retire the loan The roof of a property cost 20,000$. The economic life of the roof is 20 years. Assuming the straight line method of depreciation, what is the deprecated value after 3 years?

17,000$

In a real estate purchase contract, a liquidated damages clause...Specifies the amount in damages either party is entitled in the event the other party defaults An owner leases a property to a business in exchange for rent. The tenant is required to pay all operating expenses as well. This is an example of a...Net lease A property owner has an easement appurtenant on her property. On day the property is sold to another party who is opposed to the easement. Following the closing, this particular form of easement...Transfers with the property Adelphi's home is valued at $250,000. She has insurance coverage of $160,000 with an %80 co-insurance clause. If Adelphi has a damage claim amounting to $100,000, how much will she receive from her policy?

$80,000

What remedy does a residential tenant have for the presence of mold in the rental unit?If the mold has rendered the unit uninhabitable, the tenant may withhold rent A lender offers an investor a maximum 70% LTV loan on the appraised value of a property. If the investor pays $230,000 for the property, and this is 15% more than the appraised value, how much will the investor have to pay as a down payment?

90,000

Real estate contracts that are not personal service contracts May be assigned Which if the following is true with respect to real property taxation by the federal government?There are no federal ad valorem taxes on real property A county or municipal authority usually grants a certificate of occupancy for new construction only after...The construction conforms to building codes A farmer temporarily installs produce coolers in a leased farm stand in order to prevent spoilage. The coolers would be considered which of the following?Trade fixtures that are personal property What are examples of closing items not prorated between buyer and seller?Inspection fees A store owner enters into a lease that charges rent per square foot, a common area fee, and a portion of the store owners gross income from the property, this kind of lease is a...Percentage lease With various types of junior liens, the order of payment priority is generally established according to The date of recordation A buyer agrees to all terms of a seller's offer except the length of time for a contingency to procure financing. The buyer extends the financing period in the offer by one week, signs the form, and mails it back to the seller. At this point the sellers offer...Is void Carbon Monoxide detectors areRequired in all Massachusetts residences A protection period clause in an exclusive listing provides that the agent has a claim to a commission if the owner sells or leases to a party within a certaintime following the listing's expiration.Which of the following provides the strongest evidence of a marketable title?Title insurance Which if the following are identified as service animals in the Americans with disabilities act?Dogs and miniature horses Rhonda has the right to occupy a time share unit for six separate periods each year, but she does not have a freehold interest or an estate for years. Rhonda has Time share license If net income on a property is $40,000 and the cap rate is 10%, the value of the property using the income capitalization method is

$400,000

Seller Sam, represented by Broker Brad, entered an agreement to sell his house to Buyer Bonnie. The

transaction was aborted because Buyer Bonnie was not satisfied with the defects founds during a home inspection.

• weeks later buy Bernard viewed the property and told

Seller Sam and Broker Brad that he was interested in making an offer. Which of the following statements is TRUE?Broker Brad is legally required to disclose the previously aborted transaction