Questions and Answers
In stating a seller's price and terms to a prospective buyer, the seller's broker is required by the law of agency to state ONLY those terms that are:
A lot measuring 110 feet wide by 140 feet deep has a required setback of 30 feet in front, 20 feet in the rear, and 20 feet on each side. If a builder wants to put a one-story building on the lot, the MAXIMUM square footage it can contain is:
A house with a market value of $80,000 is located where property is assessed at 70% of market value. If the tax rate is $4 per $100 of assessed value, the property taxes are:
A broker charges a leasing fee of one-half of the first month's rent and a management fee of 8% of all rents collected. The broker negotiates a two-year lease at a monthly rental of $550. Which of the following amounts will the broker earn on this lease?
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A property manager works in the BEST interests of the:
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In reviewing the deed to a listed property, a licensee noted a number of limitations regarding its use. These limitations are commonly known as:
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The price at which a willing and informed buyer would buy and a willing and informed seller would sell is called the:
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The income approach is MOST likely to be used when determining the value of a:
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The G's purchased a house from the T's. The G's agreed to the following terms: monthly payments of $650 to the T's and the balance to be paid in full after 7 years. At the time the balance is paid, the T's will give the G's a warranty deed transferring title. In this situation, what type of financing was used?
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The provision in a mortgage or deed of trust that gives the lender the right to call the entire balance due upon a default in any payment is called a:
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A broker who represents a buyer is trying to negotiate on the buyer's behalf in a potential transaction. The broker realizes that by negotiating a reduced price for the buyer, the broker's commission will also be reduced. In this situation, the broker is obligated to negotiate the BEST price for the:
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K and R bought a house as tenants in common. If K dies, which of the following statements about ownership of the house is CORRECT?
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A visually-impaired person with a service animal completes an application for rental of an apartment that has a vigorously enforced 'no pets' policy in the building. According to the federal fair housing act, the owner MAY:
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Under a sales contract, the legal remedy that may be used to force the seller to consummate the sale is called:
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Study Notes
Agency Law and Sales Terms
- A seller's broker must state terms included in the listing agreement while presenting price and terms to buyers.
Property Measurements and Setbacks
- For a lot measuring 110 feet by 140 feet with required setbacks of 30 feet front, 20 feet rear, and 20 feet on each side, the maximum square footage for a one-story building is 6,300 sq ft.
Property Taxes Calculation
- A house valued at $80,000 with a 70% assessment rate will incur property taxes of $2,240 at a $4 tax rate per $100 of assessed value.
Broker Fees
- A broker charging half of the first month's rent and 8% management fee on a $550 monthly lease earns a total of $1,331 over the lease term.
Property Manager's Role
- A property manager works primarily in the best interests of the property owner.
Deed Limitations
- Limitations on property use noted in a deed are referred to as restricted covenants.
Market Value Definition
- The market value is the price at which informed buyers and sellers agree to transact.
Valuation Approaches
- The income approach is predominantly used to determine the value of office buildings rather than residential properties.
Financing Types
- A contract for deed is used in situations where payments are made over time with title transfer upon completion.
Mortgage Clauses
- An acceleration clause allows the lender to demand the full mortgage balance upon any missed payment.
Broker's Loyalty
- A broker representing a buyer must negotiate the best price solely for the buyer, even if it reduces the broker's commission.
Tenancy in Common
- In a tenancy in common, if one owner dies, their interest is divided, and the remaining owner retains their share while the deceased's interest goes to their estate.
Fair Housing Act and Service Animals
- An owner may require restoration of any damage caused by a service animal, even under a no pets policy, according to the federal Fair Housing Act.
Legal Remedies in Sales Contracts
- Specific performance is a legal remedy that compels the seller to complete the sale as agreed under the sales contract.
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Description
This quiz consists of flashcards designed for the Pearson VUE practice exam, focusing on real estate agency law. Each card presents key terms and answers to reinforce essential knowledge needed for prospective buyers and sellers in real estate transactions.
