Real Estate License Wizard Exam Prep Flashcards

Real Estate License Wizard Exam Prep Flashcards A mortgage loan that requires monthly payments of $400 for 15 years and a final payment of $20,000. Typically a loan structured like this is called a...Balloon loan. Does NOT fully amortize over term.Amortization is when payments divide into equal amounts for duration of loan. Called a ballon loan cuz of the large amount you have to pay at the end.Which of the following is a lien?Mortgage, Novation, Easement, Investment.Mortgage. A lien is a legal claim on an asset and mortgages are a type of lien as it gives the lender a claim over borrower's assets.Local zoning ordinances often regulate all of the following EXCEPT?Market value of property. Density of population.Appropriate use for buildings. Height of buildings in an area.Market value of property.Mortgage points, also known as discount points, arefees paid directly to lender at closing in exchange for a reduced interest rate.Real property can be converted to personal property by?Inference. Severance. Accession. Conversion.Severance. It is taking an item that's attached to the land and removing it and changing as personal property.What does ad valorem mean?according to value. it is flexible and depends on assessed value of asset.What is the outcome when a purchaser signs a purchase agreement and gives the seller's broker a large check?This transaction is considered an offer.The Buyer of a home was not informed that the house was on a septic tank system. The buyer has the right to?rescind the contract. Agent must reveal all property facts and defects and if they don't, can allow buyer to rescind contract.Compliance with zoning ordinances is monitored through the issuance of?Zoning permits.Puffing is a term referring to?Extravagant claims made by sellers in order to attract buyers.Mrs. Jane lives in a small residential neighborhood. 100 year old trees surround her home, and her neighbor, Mr.Joe claims the trees are on his property and planning on cutting them down. Mrs. Jane tries to reason with Mr. Joe but he refuses to listen. Mrs. Jane files a lawsuit that includes a court order for Mr. Joe to stop his actions until they can work something out. What type of court order is this?An injuction. Injuctions are used to protect interests in real property or prevent harmful action.What is the general technique of determining three dimensional positions of points and the distances and angles between them?Sewer lateral inspecting. Sub and plot surveying. Subdivision surveying. Surveying.Surveying.The owner of a condo has the use of many facilities there, including a pool. Under the typical condo arrangement, the facilities are owned by?All condo owners in form of percentage undivided interest.These condo units are owned outright.

Mrs. Thompson hired a broker to find her a 100+ unit apartment complex for sale. Upon finding one she liked, she made an offer for $2.5 mill to include all the personal property as well. In order to include all the personal property Mrs. Thompson needs a?Package loan. It's a real estate loan used to finance the purchase of both real and personal property.The biggest difference between private and public land use controls is..?Government does not write or enforce private land use controls but it does impose and enforce zoning.Primary public use controls is government and zoning.Private land use controls is deed restrictions or covenants.An appraiser has been hired to prepare an appraisal report of a property for loan purposes. The property is a 25 year old strip mall. To which approach to value should the appraiser give the greatest weight when making this appraisal?Income approach. Mainly used for rental properties or what a property generates in income.Acceleration is a term associated with which type of document?Mortgages. The acceleration clause allows a lender to require the borrower to repay all of an outstanding loan if payments aren't being made or there was a breach of contract A legal way to dissolve the relationship when the parties don't voluntarily agree to its termination is called...Partition. A court order to divide up a concurrent estate into separate portions If a buyer refuses to go ahead with a purchase of property for which he has signed a contract, what usually happens to the earnest money?It's kept by seller. Only way the buyer gets their earnest money back is if something happened with inspection, appraisal, etc.A mortagor is also known as...Borrower.An individual seeking to be excused from the requirements of zoning ordinance needs a..?Variance. It's a request to deviate from current zoning requirements or like a waiver. Examples are putting up a fence, build a property closer than permitted.What is the difference between market value of your home and the amount you owe the lender who holds the mortgage ?Equity. It's the money you'd receive after paying off the mortgage if you were to sell the home.Steve was at his local coffee shop with some agents from other offices. The subject of commissions came up and agents began to compare their commission rates. What should Steve do?Advise other agents this could constitute a violation of Sherman Antitrust Act as it prohibits price fixing.An offer to purchase real estate becomes a contract when it is signed by?Buyer and Seller.Closing is called many names, which is NOT a name for closing?Closing. Passing papers. Exchange and transfer.Settlement and transfer.Exchange and transfer.Water rights are appurtenant. True or False? True. Meaning they run with the land and not the owner.If a contract has prepayment penalties, they can be found in which real estate contract clause?In the prepayment penalty clause.One individual or married couple in business alone is what?Sole Proprietorship.This approach determines what the property generates in profit for its owner and potential owner.Income approach.