Real Estate Pre-License Test Flashcards

Real Estate Pre-License Test Flashcards Sally and Kathy own a house as tenants in common. Sally holds 2/3 interest in the entire property, and Kathy owns 1/3. When Sally and Kathy die, their interest in the property will descend to their heirs. How will their interests be divided?When Sally dies, her 2/3 interest in the property will descend to her legal heirs (or as instructed in her will) The same goes with Kathy and her 1/3 interest When borrowers apply for a mortgage loan, they must be

given the following disclosures:

Special Information Booklet Good Faith Estimate (GFE) Servicing Disclosure Statement

Appraisers charge a fee based on:the time and difficulty of the work

Residential Sale the sale of improved residential property of 4 of fewer units the sale of unimproved residential property intended for use as 4 or fewer units the sale of agricultural of 10 or fewer acres*4/4/10* Life EstateThe life estate owner owns the property for only the period of the lifetime of an individual (the owner of other designated person). During the time an owner enjoys a life estate, the owner must maintain the property and not permit waste to occur.The Florida Residential Landlord & Tenant Act provides

that:

When a residential rental property is sold or the title of the rental property is otherwise transferred to the new owner, the tenants' security deposits and advance rents MUST be transferred to the new owner A vendor's lien is enforceable only against: The party obtaining title from the vendor it doesn't apply against later purchasers unless a written mortgage has been executed and placed in the public records It is enforceable by foreclosurenot just any mortgage lien Personal Propertymovable items not attached to real property; items severed from real property Who has authority and control of the Co-op? it may be vested in an elected board of directors or trustees Are appraisers paid a commission?No - to reduce the possibility of a conflict of interest if an appraiser were to be paid a % of the appraised value, the temptation to exaggerate the value might prove irresistible USPAP's ethics rule states:That it is unethical for an appraiser to accept compensation that is contingent on the value of property Formal Complaintalso administrative complaint, is an outline of allegations of facts and charges against the licensee sometimes a licensee-respondant and the licensee's attorney (if the licensee has legal counsel) will meet with a Division of Real Estate (DRE) attorney prior to a hearing to discuss a possible settlement and enter into a stipulation What is the important result of owners purchasing shares of stock in the corporation?that ownership of stock entitles the purchaser to a proprietary lease and the right to occupy the unit for the life

of the corporation

What is The Truth in Lending Act (TILA) concerned with?TILA is concerned that consumers may be misled by being given truthful, but inadequate, information in advertising while it doesn't require creditors to advertise certain credit terms, called triggering terms, they must include additional disclosures Size of HomesteadThe size of the homestead property is restricted to 160 acres outside a municipality (city) or up to 1/2 acre if the property is located within the city Transfer of title to property is not effective until:the deed is delivered and accepted by the grantee The 7 Duties of the Transaction Broker in a Limited form of Representation 1) Deal honestly & fairly2) Account for all funds3) Use skill, care & diligence in the transaction4) Disclose all known facts that materially affect the value of residential real property & are not really observable to the buyer5) Present all offers & counteroffers in a timely manner6) Exercise limited confidentiality, unless writing by a party7) Perform any addition duties that are mutually agreed to with a party What is the current Homestead tax exemption in Florida?up to $50,000 for qualifying homesteads and is deducted from the assessed value when calculating taxable value Does the Florida Constitution allow a tax exemption from assessed property value?Yes When money is given to the landlord as a security deposit or advance rent, the landlord is allowed to account for such

deposits by:

holding the money in a separate noninterest-bearing Florida bank account and NOT commingle or hypothecate Must the life estate owner pay the taxes and property taxes on the property?Yes, and they must also keep current any mortgage(s) or lien(s) to preserve the property Exercising limited confidentiality in a limited form of

representation will prevent disclosure that:

the seller will accept a price less than the asking or listed price that the buyer will pay a price greater than the price submitted in a written offer of the motivation of any party for selling or buying property that a seller or buyer will agree to financing terms other than those offered of any other information requested by a party to remain confidential Bargain and Sale DeedNormally, it consists of the granting clause, habendum clause, and covenant clause, and covenant of seisin.however, the grantor DOES NOT covenant or warrant to defend the title against any future claims or attacks on the title it does little to protect the grantee from clouds or claims on the title No later than 10 business days after each deposit is due under the terms of the sales contract, the licensee's broker

MUST:

request a written verification of receipt of the deposit. The broker's request to the title company (or the attorney) must be in writing. If the deposit is held by a title company or by an attorney nominated in writing by the seller or the seller's agent, the verification is waived Can Homeowners in Florida homestead their permanent (principal) residence?Yes

Good Faith Estimate (GFE)of closing (settlement) costs, listing the charges the buyer is likely to pay at closing. The standardized GFE facilitates shopping among settlement service providers. If the lender allows the borrower to shop for a 3rd party settlement services, the lender must provide the borrower a lost of acceptable service providers*MOST IMPORTANT* The Duties of the Single Agent Broker in a Limited Form of Representation 1) Deal honestly & fairly2) Disclosure all known facts that affect value of residential property3) Account for all funds4) Use skill, care, & diligence5) Present all offers & counteroffers6) Confidentiality7) Obedience8) Loyalty9) Disclosure (full){COLD} Who sets the guidelines for which violations warrant a notice of noncompliance?The FREC - The Commission has established by rule minor violations that do not endanger the public health, safety, & welfare & that do not demonstrate a serious inability to practice the profession The office signs of Real Estate brokers must include: Trade name Broker's name The words "Licensed Real Estate Broker" Fixtureitem of personal property converted to real property by attaching it to the real property with the intention that it become permanently a part thereof What Florida Statute exempts court-appointed individuals acting within the limitations of their duties?Chapter 475 you can only sell a property that the judge SPECIFICALLY tells you if you are not licensed under the state of Florida ConversionBrokers MAY NOT use earnest money funds for their personal use It is the licensee's personal use or misuse of client (or customer) monies What are the 4 Unities? possession interest title time Notice of NoncomplianceThe DBPR/DRE may issue a notice of noncompliance as a first response to a minor violation by a license you have 15 days to clear it up The 1st horizontal (E/W) strip of land above (N) the

baseline is numbered:

Township 1 North (T1N) the township line #'s increase by 1 moving farther from the BL (i.e. T2N, T3N, etc.) the same goes with numbers below (S) of the baseline (T1S, T2S, and so on)

Each township tier is numbered beginning at: The Base Line (BL)

If a sale contract doesn't specify the type of deed to be given by the seller, Florida law requires that the property be

conveyed by:

a general warranty deed Condemnationthe legal process of eminent domain Advertisements containing any of the triggering terms

MUST disclose:

amount or % of downpayment terms of repayment annual % rate, using that term, and if the rate may be increased in the future, that fact must also be disclosed Trade Fixtureitem of personal property attached to real property that is owned by a tenant and is used in a business legally removable by tenant table & chairs in a restaurant