South Dakota Real Estate Licensure Exam Flashcards

South Dakota Real Estate Licensure Exam Flashcards Which of the following is the best expression of why real estate has value?Maximum utilization of available resources relates to highest and best use.

Zoning is not:retroactive.

Ingress and egress apply to:easements.

An appraiser would use which of the following approaches in appraising a shopping center?Capitalization Approach.A grant deed that conveys title to real property without

limitation is called a:

A fee simple estate is the maximum possible estate one can possess in real property. It is the least limited interest and the most complete and absolute ownership.A lease contains a clause in which the parties agree to an adjustment of rent based upon some stated criteria. This

lease clause is called a(n):

Escalator Clause. Many fixed-rental net leases, particulary long-term commercial leases, contain a clause in which the parties agree to an adjustment of rent based on set increases in taxes, insurance, maintenance and other operating costs. Similarly, the rent may be tied into the cost-of-living index to cover increases in the maintenance expenses and raised at stated intervals. An escalator clause is designed to protect the lessor's investment position against a reduction in the rate of return over the term of the lease.

Partition action refers to:court action to break up joint tenants.

If land has a servient tenement, it has a(n): Encumbrance.

Commissions rate price fixing is a violation of the:Sherman Anti-Trust Laws. Sherman Antitrust Act is a federal law passed in 1890 that committed the American government to opposing monopolies. The law prohibits contracts, combinations, or conspiracies "in the restraint of trade or commerce." The Irwin's made an offer to purchase the Grey's property.As part of the offer, the Irwin's agreed to take title "subject to" an existing VA loan which the Greys obtained when they purchased the property in the approximate amount of $39,000. If the Greys sell to the Irwins under these conditions, which of the following is true concerning liability for a loss suffered by the government after a foreclosure on

the VA loan:

The Greys will be primarily liable.A package mortgage is a loan in which:personal property is included in the real estate loan.If three different buyers take title to real property as joint

tenants, there would be:

one deed.In the correct order, list the chain of events necessary to

comply with the agency disclosure law:

disclose, elect, confirm

A listing agreement is not:A unilateral contract.

If a business is sold without complying with the Bulk Sales

Act:

the assets still belong to the vendor as far as creditors are concerned. If the Bulk Sales Law is not complied with, creditors still have a claim on the assets of the vendor (seller) purchased by the vendee (buyer). This is why it is very important for the vendee (buyer) to see that the Bulk Sales Law is complied with.In real estate, the word "tenancy" means: a mode or method of holding title to real property.After a trustee's sale, there is money left over after paying the beneficiary of the first trust deed. This money would go

first to the:

beneficiary of the second.A listing broker agrees verbally to split a commission with a selling broker. The listing broker now refuses to do so. The

selling broker should:

Sue the listing broker. A verbal agreement between two brokers to split a commission is enforceable. The selling broker's recourse would be to sue the listing broker. The "selling broker" is the one who brings in the offer.Salesperson Jane has several listings and is an agent of

Broker Bob. These listings are:

the property of Broker Bob.Which of the following pairs of words are synonymous (the same)?The construction loan is often a short-term or interim loan.When the construction is completed, the take-out loan is used to pay off the construction loan.

Personal property can:be alienated, hypothecated and real.

A real estate commission is usually based on the: selling price.

A broker brought in an offer but the listing agreement did not include an authorization to accept a deposit. Which of the following is correct?If the broker accepts the deposit, he/she would do so as the agent of the buyer.When there is a counter offer, a new "counter offer" form

must be filled out. The reason for this is:

It requires signatures to become a contract, it is a rejection of the original offer, and it is a new offer.A listing broker wants to give $50 to a buyer and $50 credit against his commission to a buyer or seller who either lists with him or purchases one of his listings. With regard to his

actions:

it is permissible to give $50 to the buyer and to credit his commission with the seller. **It is permissible for a listing broker to rebate a portion of his/her commission to the buyer or seller as long as the rebate and/or credit is disclosed to all parties.The most important test of a fixture is: The intention of the parties, particulary the intention of the person attaching it usually governs.On a listing agreement what is included under the section, "Terms of the Sale?" Price, method of payment, and personal property.All of the following are essential elements of an agency

agreement EXCEPT:

Agreement to pay consideration. The payment of consideration is not related to the creation of an agency relationship.As spelled out in her deceased husband's will, Colleen can collect the rents from an apartment building for her lifetime, after which the apartment building goes to their church.

Colleen holds a:

life estate.The four unities of joint tenancy are:The four unities to a joint tenancy are: Time, Title, Interest and Possession. "TTIP".

Gregorian owns an easement in Duran's property/land.Gregorian is not a property owner. What kind of easement does Gregorian have?Easement in gross. An easement in gross is the limited right of one person to use another's land (serviant estate) when such right is not created for the benefit of any land owned by the owner of the easement. In such case, there is no dominant estate, because the easement attaches personally to the owner, not the land A real estate licensee offered to rebate part of his commission to the buyer if the buyer would increase his offer to a level that the agent knew would be high enough

for the seller to accept. Under these circumstances:

this information must be disclosed to the seller before the offer is accepted by the seller.

A "dual agency" is legal if:The buyer and seller consent to it.

As far as sales are concerned, the most important date on

an appraisal is the:

date of the offer.Brown leases a residence from Baker on a three-month written lease. Upon expiration of the written lease, Brown retains possession of the property without the consent of

Baker. Brown now holds a(n):

Estate at sufferance.A man bought a small apartment building. He put a down payment on the property and financed the rest with a loan.One year later the property was appraised. His equity had

increased 300%. This is an example of:

leverage.Seller "A" lets buyer "B" assume that Broker "C" was his

agent. This type of agency relationship is an example of:

assignment of a note, buyer's personal check and valuable personal property.When using the market-data approach to appraise a single-family home, recent sales are compared to the

subject property as to:

the entire property.An agent becomes the agent of the seller when both the

seller and the agent sign:

The Listing Agreement.The source of money for most home loans by institutional

lenders is:

individual and family savings.A property owner intends to build an addition onto the back

of his house. He should check:

zoning ordinances, local building codes and CC&Rs When the property of the borrower is not adequate security for the loan, the instrument the lender will most likely

employ is a(n):

blanket mortgage. A blanket encumbrance is used to place a lien simultaneously on more than one property by a single financing instrument.Ownership of an undivided interest in land with no right of

survivorship is found in:

Tenants in common.If you went to the city/county and wanted to change the electrical requirements specific to the structure from the

standard normal requirements, this would bea(n):

variance.After paying his general contractor in full, a property owner files a notice of completion. Which of the following is correct?Unpaid workers can file mechanic's liens up to 30 days after the owner files a notice of completion.A lease where the rent is based on a percentage of the

monthly or annual gross sales of the lessee is called a:

percentage lease.

Under the Truth-in-Lending Act (Regulation Z), which of the following need NOT be included in the total "finance charge" required as part of the disclosure statement?cost of a credit report and appraisal fee.

A seasoned loan is a:loan with a payment record.

The insects that are considered to be the most destructive to wood are dry-wood termites.The technical definition of real property includes:Anything immovable by law. In the strict legal sense, real property includes land,appurtenances, that which is affixed to the land, and that which by law is immovable.A flight pattern to a nearby airport was changed so that planes pass over a single-family residential neighborhood.

Any loss in value to these properties would be attributed to:

economic obsolescence.A mobile home park is defined as:2 contiguous mobile home sites for rent or sale.Who is more likely to earn the commission? Until the seller's acceptance is communicated to the buyer, there is no contract. Therefore, the one who communicates the seller's acceptance to the buyer is more likely to earn the commission.As the agent for the seller, a real estate broker negotiated a sale. By agreement, the licensee can be paid his commission in the form of is obligated to render faithful service to Jones.A licensee who speaks of a "grandfather clause" is

probably referring to:

Continuation of a non-conforming use.Who enforces the Truth-in-Lending Act?Federal Trade Commission In the event of a conflict between local building codes and the Health and Safety Code, which would prevail?the more stringent of the two.The Federal National Mortgage Association (FNMA) was

primarily created to:

serve as a secondary mortgage market.When subdividers evaluate the topography of land, hillside topography property is less desirable than flat mainstream property A group of buildings developed in a line along the frontage

of a main highway would most likely be a(n):

Strip shopping center.When is a properly licensed real estate salesperson most likely to get his/her commission?When escrow closes.

An interest in real property acquired by prescription is:a possessory title.

What requires real estate listings to be in writing?The Statute of Frauds generally requires all contracts for the sale of land or any interest therein (including listings) to be in writing.You are preparing a competitive market analysis on a vacant lot that you hope to list for sale. Which of the following approaches to value will be used in the development of the estimated value?Sales comparison approach.Power of attorney can be terminated by the: revocation by the principal, incapacity of the parties to the power of attorney, death of the attorney-in-fact.You enter into a contract with a person not knowing he was judicially declared incompetent. The incompetence of one