Real Estate final exam practice Pearson VUE Flashcards

Real Estate final exam practice (Pearson VUE) Flashcards straight-term mortgagepays only interest during term and at end of term pay full amoung

categories of mortgage-conventional: secured by real property not insured of

guaranteed by a government agency.-conforming:

mortgage cannot be above their annually adjusted dollar

threshold for any given year.-nonconforming: mortgagor

has a poor credit rating, does not include the standard provision required by fannie mae/freddie mac A license holder is showing a home built in 1972 to buyerswho notice paint flaking on the woodwork. How shouldthe license holder proceed?Advise the prospective buyers to get a lead-based paintinspection.deed restrictions.an established means of regulating land useDeed restrictions are also known asrestrictive covenantsdeed restrictions govern such things as(1)property use and(2)the kind, character, and location of buildings or other structures-common deed restrictions-also the most important ones everyone should familiarize themselves

with:Number Of BedroomsPet & Animal RestrictionsVehicle

RestrictionsObstructing A Neighbor's ViewTypes Of FencingHome-Run Business RestrictionsColor PalettesAdjacent StructuresApproval PlansTree Removal variable rate mortgaeinterest rates that fluctuate

types of contractsexpressed:clearly states and agrees to the

actionsimplied:always oral, act as though a contract

exists.unilateral: promises for a actbilateral: promise and 2 actions According to The Real Estate License Act of Texas, whichone of the following actions is a fair and impartial act foran intermediary?Appointing associated licensees to work with the parties.types of eviction-actual: nonpayment of rent by tenant.-constructive: caused

by landlords neglect-retaliatory: illegal. pay back.

join tenancytwo or more individuals. must acquire interest at same time, single deed or title conveys all parties interest, each party has same percentage of ownership, all party own total property special or specific agencythe principal gives the agent authority to do one specific

thing on the principal's behalf: sell property. agreement will

list how the task will be done.Which of the following statements about the law ofagency is CORRECT?It establishes a fiduciary relationship

An unimproved lot is located in the service area of a watersupply corporation. The seller is subject to the noticerequirements relating to a service provider. What is thebuyer's statutory remedy if the seller fails to give thewritten notice REQUIRED by law?Terminate the purchase contract with the seller.Escheatif you die without a will/relatives, the state will take property.encumbranceis anything that limits or negatively affects the title of a property.A mortgage is an encumbrance, as are leases, easements, liens, deed restrictions.If a free-standing appliance is sold separately from a realestate transaction, the seller should furnish the buyer

with a:

bill of sale biweekly loanpays off loan every 2 weeks instead of monthly. payments are 1/2 of what monthly would be.fixed rate mortgagepayment remains the same for life of mortgage The condition which allows a property owner to convey

aright to another party while retaining full legal title is a(n):

easement metes and boundssurveyor uses points on compass (direction) measurements (distance).Metes and bounds arethe boundaries of a parcel of real estate that are identified by its natural landmarks. Metes and bounds landmarks are often used in a "legal description" of a land. Legal description is the geographical description of a land that identifies its precise location, and is kept with the deed of the land.An example of a defined property line by metes and bounds would be "North 89 degrees, 39 minutes, 47 seconds West, a distance of 147.33 feet (the metes), along the southerly line of property (the bounds)." When the association of a salesperson with the

sponsoringbroker is terminated, the broker MUST:

immediately return the salesperson's license to theCommission In order for a brokerage to be able to represent both thebuyer and seller in a real estate transaction, the

brokerageneeds to have the permission of:

both parties dual agencysame agent in a brokerage represents both buyer and a seller in a real estate transaction subprime mortgagetype of loan offered to people with low credit ratings who would not otherwise qualify for a mortgage.termination by performanceterminates at closing.A geographic region in which similar properties competewith the subject property for potential buyers is

called a:

market area sole owenershiptenancy in serveralty A buyer's interest in real property, acquired at the momentthe seller and the buyer enter into a sales contract,

isknown as:

equitable interest

The appropriate time for a selling broker to explain

theagency relationship to a prospective buyer is:

at their initial meeting When negotiating contracts binding the sale or lease ofproperty, a real estate licensee MUST use an appropriateTexas Real Estate Commission-promulgated formunless another contract form has been prepared and

isREQUIRED by the:

owner of the property community propertyno right of survivorship, spouse may leave his or her half to whoever they want. termed separate property blanket mortgageA blanket mortgage, often called a blanket loan, is a type of financing that funds the purchase of multiple real estate properties at the same time. Popular among real estate investors, developers and owners ofcommercial property, blanket loans can streamline the lending process and reduce costs.Blanket loans are best for people who wish to purchase multiple pieces of real estate, such as experiencedinvestors, house flippers, builders, developers and businesses looking to open multiple locations.Which of the following factors would be included in thedescription of replacement cost?Similar utility and current material A lot was purchased as an investment for $10,500 andsold a year later at a loss of 20%. If the owner paid a 10%commission, what was the owner's net loss on the sale?2940?The price for which a property will sell if offered

openlyunder normal conditions is known as:

market value Tenancy in Commondoes not give tenants right of survivorship. most common for co/joint ownership. each tenant holds ownership in servility. can leave property in his will.trustowner- trustorperson receiving ownership-trusteeliving trust- trustor creates the trust to be effective during his or her lifetime.testamentary trust- trustor leaves instructions in his or her will establishing at trust that will not be effective until after he or she dies.balloon loanmortgagor pays a fixed amount each month for term. must pay full amount by end of term A buyer purchases a furnished condominium apartmentas an investment. The document that evidences the

buyer'sownership of the furniture is a:

bill of sale G borrowed $15,000 to buy a business. The interestrate was 11%. If G paid all the interest and the amountborrowed with a single payment at the end of 16 months,what is the amount of this payment?$15,000 x 0.11 = $1,650$1,650 / 12 = $1,375$1,375 x 16 =

$2,200$2,200 + $15,000 = $17,200answer: $17,200

FHA loanoffered to people who meet certain requirements.-no more than 4-units, has less than 20% down payment- meets