STATE EXAM FINAL STUDYING - Magnolia School of Real Estate

STATE EXAM FINAL STUDYING - Magnolia School of Real Estate Cram Course Flashcards name, address and phone numberA broker sold an up-to-date and accurate rental list to a customer on June 10th for $475.00 On June 14th the customer decided not to obtain a rental and then orally demanded, and should receive, how much of a refund?What should be paid in an open + competitive market where all parties are fully informed?Market value; everything is as it should be; same as appraised value In the event of conflicting demands for escrow, the broker must first contact FREC within ______ business days in writing, and then implement one of the four settlement procedures within ______ business days.What are the 4 settlement procedures?15; 301. M - Mediation2. A - Arbitration3. L - Litigation4. E - EDO (Escrow Disbursement Order) An abstract of titleWhat is a complete successive record of a property's ownership?What is something that is bad, outside the boundaries of your property on a place that you don't own and it can't be fixed?An appraiser would deduct value.External obsolescence i.e. the road in front of the house became a thoroughfare, main highway, railroad track, living close to airport Mortgage, interest + property taxesProperty taxes, mortgage interest, points, and mortgage loan origination fees Amy, Todd, Frank, and Francine all co-own a beach house on St. Petersburg beach. Frank died, and his co-ownership of the property passed, according to his will, to his son.How do these parties own the property?What are the required elements to make a contract valid?COLC: competent parties, offer and acceptance, legal,

considerationFor real estate contracts: you'd need the "in

writing" part per the Statute of Frauds The VA loan comes with what?funding fee Which lien takes priority?property taxes When you purchase something with someone else as a joint tenant, when you pass, it will never go to whom?your heirs covenant of seisinWhich expenses associated with a principal residence are deductible for income tax purposes?In which theory of lending does the borrower retain ownership during the loan period?lien theory The purchase price of a property is $500,000. The buyer's

financials are as follows:- The buyer put $50,000 in

escrow.- The buyer has $50,000 of his own money.- The buyer is assuming the seller's mortgage of $85,000- The buyer is acquiring a new mortgage of $225,000The buyer has decided to ask the seller to take back a mortgage. How much would the mortgage be if the seller takes back a purchase money mortgage from the buyer?$90,000How much money would I still need to borrow from the seller?

What are the 3 non-freehold estates?1. Tenancy at will (doesn't have to be in writing, and no ending date)2. Estate for years (has to be in writing with definite amount of time)3. Tenancy at sufferance (expired or absence of lease) What describes a non-freehold estate that includes a definite specified amount of time?estate for years Landlocked parcel behind you and you'll have to make a road from the road through your property to their property Easement by necessity Which of the following is false concerning a mortgage loan?a. Negative amortization occurs when the mortgage payments are not large enough to cover the interest expense. The result is the mortgage loan balance increases instead of decreasing.b. On a 30-year, fixed-rate mortgage, the payments during the first years are used almost entirely to pay principle.c. An amortized mortgage is gradually and systematically killed or extinguished by equal regular periodic payments.d. With a partially amortized mortgage, the buyer makes regular payments smaller than what is required to completely pay off the loan by its date of termination and at the end of the loan period a balloon payment is required.B Which of the following methods of surveying property is used in a subdivision where plat maps have been recorded?lot and block also called the plat method Which mortgage clause allows the mortgagee the right to demand the outstanding loan balance plus accrued interest in the event that the borrower sells or transfers any interest in the property without the lenders prior written consent?Due-on-sale clause What are the 6 real estate contracts that must be in writing per the Statute of Frauds?DeedsMortgagesPurchase + sale contractsOption contractsLeases + listing agreements for more than 1 yearBuyer brokerage agreements for more than 1 year What is a set of administrative rules developed by the FREC, (Florida Real Estate Commission)?Chapter 61j2 When individual parcels are released on a blanket mortgage loan, what type of clause is used?Partial release clause AKA the release clause What things can a licensed person do?1. Conduct listing presentations2. Show a listed home to a buyer3. Present an offer to the sellerMust have an active

license to do:- conduct listing presentations/show houses-

present an offer to a sellerDon't need a license to:- hand

out objective, written information on a rental property DeedsMortgagesPromissory NotesPurchase + Sale ContractsOption contractsLease agreements (longer than 1 year)Listing agreements (longer than 1 year)Buyer representation agreements (longer than 1 year) What describes a non-freehold estate that includes a definite specified amount of time?

What is economic indicator that adjusts /changes in an adjustable-rate mortgage?the index free-holdA broker has listed a seller's property. The seller has disclosed to the broker that the roof leaks. The broker has satisfied his legal obligation if he tells the buyer....Which of the following is a penalty for a first time minor violation?notice of non-compliance Both the FHA (insured) + VA loans (government guaranteed) come with an origination fee and are assumable + non-conditional, but the VA also comes with additionally?Discount points for both are optional.funding fee What is included included on a brokerage office sign?- trade name of brokerage- broker's name- words licensed real estate broker Because the loan is fully amortizing, most of the money from each payment made at the end of the loan term would be applied to .....?the principle.Who is responsible to deliver the HOA, (home-owner's association) disclosure document to the buyer?the seller/owner chain of titleWhat are all of the list of contracts that must be in writing per the Statute of Frauds?What is the penalty for a first-time minor violation and how many days does a licensee have to correct the violation?Notice of non-compliance/15 days What can you deduct on your federal income tax? property taxes + mortgage interest When lenders or insurance companies deny loans or insurance coverage based on discriminatory practices.Redlining the roof leaks (must disclose all defects no matter the relationship) Two brokers meet and decide to set commission rates on all sales for one year. What applies?Steering is what we do to .....?Redlining is what who does?BuyersLenders Can a spouse of a deceased veteran get a VA loan? Yes, unless you remarry What type of easement would be created if the water company had the right to dig up an owner's property to install a water pipe?In gross (for utility purposes) BPO = broker's price opinionNot ALL contracts have to be in writing - it has to be a real estate contracts Third degree felony: what did you do?- unlicensed practice of real estate- lied on your real estate application What are some things that could terminate an offer?withdraw, acceptance, rejection, lapse of time, death, destruction, bankruptcy How do you find the capitalization rate of a property if you have the net operating income and the value, (sales price)?R = I/VNet operating income divided by the value, (sales price) Initially, interest is the largest portion of the paymentAt the beginning of a loan, most of the payments go towards what?And toward the end?

1. Tenancy at will: lease with no defined period and doesn't

have to be in writing2. Estate for years: has exact ending

date and has to be in writing3. estate/tenancy at

severance: expired or absence of lease

An estate by the entireties + life estate are what type of estate?