Podcast
Questions and Answers
What is the priority for claiming related to a construction project?
What is the priority for claiming related to a construction project?
What does the mortgage insurance on an FHA loan actually protect?
What does the mortgage insurance on an FHA loan actually protect?
The appraisal of an income-producing property is made as of a 'given date' to indicate what?
The appraisal of an income-producing property is made as of a 'given date' to indicate what?
In a grant deed, what condition did David impose on the title he transferred to John?
In a grant deed, what condition did David impose on the title he transferred to John?
Signup and view all the answers
Which of the following does NOT accurately describe the function of appraisal valuation?
Which of the following does NOT accurately describe the function of appraisal valuation?
Signup and view all the answers
Which activities best describe the actions of Salesperson Coogan?
Which activities best describe the actions of Salesperson Coogan?
Signup and view all the answers
Which of the following is not essential to forming an agency relationship?
Which of the following is not essential to forming an agency relationship?
Signup and view all the answers
What should the broker do with the $1,000 check given by the prospective buyer?
What should the broker do with the $1,000 check given by the prospective buyer?
Signup and view all the answers
When does a lender typically release the final payment to the builder in new construction financing?
When does a lender typically release the final payment to the builder in new construction financing?
Signup and view all the answers
What was the issue with Agent John's action of crossing out the item regarding kitchen appliances?
What was the issue with Agent John's action of crossing out the item regarding kitchen appliances?
Signup and view all the answers
Which element is crucial in determining whether an agency relationship exists?
Which element is crucial in determining whether an agency relationship exists?
Signup and view all the answers
What is the effect of blockbusting in real estate transactions?
What is the effect of blockbusting in real estate transactions?
Signup and view all the answers
Why is it important for the broker to inform the seller about the check being held uncashed?
Why is it important for the broker to inform the seller about the check being held uncashed?
Signup and view all the answers
Which source is typically considered best for obtaining funds?
Which source is typically considered best for obtaining funds?
Signup and view all the answers
An 'open-end' provision in a mortgage is most beneficial to a borrower when they:
An 'open-end' provision in a mortgage is most beneficial to a borrower when they:
Signup and view all the answers
When a title company issues a California standard policy of title insurance, which loss is covered?
When a title company issues a California standard policy of title insurance, which loss is covered?
Signup and view all the answers
In the case of broker Green selling Brown's home, which statement is true?
In the case of broker Green selling Brown's home, which statement is true?
Signup and view all the answers
Ames, Barnes, and Crandal own a vacant lot as joint tenants. What does this typically imply?
Ames, Barnes, and Crandal own a vacant lot as joint tenants. What does this typically imply?
Signup and view all the answers
If a borrower wants to increase their loan amount without selling their property, which mortgage provision would help?
If a borrower wants to increase their loan amount without selling their property, which mortgage provision would help?
Signup and view all the answers
What is a potential drawback of a standard title insurance policy?
What is a potential drawback of a standard title insurance policy?
Signup and view all the answers
In a scenario where a property has undisclosed issues, which party bears the primary moral responsibility?
In a scenario where a property has undisclosed issues, which party bears the primary moral responsibility?
Signup and view all the answers
What must be excluded from the list of eligible participants regarding prize offerings?
What must be excluded from the list of eligible participants regarding prize offerings?
Signup and view all the answers
If a trust deed note has a monthly payment of $240 at an interest rate of 7%, how much of that payment reduces the principal after the first payment?
If a trust deed note has a monthly payment of $240 at an interest rate of 7%, how much of that payment reduces the principal after the first payment?
Signup and view all the answers
How does an appraiser arrive at the final estimate of value using multiple approaches?
How does an appraiser arrive at the final estimate of value using multiple approaches?
Signup and view all the answers
What is Lawson's long-term capital gain after selling four lots for $10,000 each, with an adjusted basis of $2,000 for each?
What is Lawson's long-term capital gain after selling four lots for $10,000 each, with an adjusted basis of $2,000 for each?
Signup and view all the answers
What should Baylor request Tony to do prior to closing the purchase transaction?
What should Baylor request Tony to do prior to closing the purchase transaction?
Signup and view all the answers
What potential issue arises when someone is offering prizes linked to sales presentations?
What potential issue arises when someone is offering prizes linked to sales presentations?
Signup and view all the answers
What information is essential for determining the interest portion of Baylor's first payment?
What information is essential for determining the interest portion of Baylor's first payment?
Signup and view all the answers
In the context of appraising property, what does the chosen approach suggest about other methods?
In the context of appraising property, what does the chosen approach suggest about other methods?
Signup and view all the answers
Why is the advertisement by Davis considered unethical?
Why is the advertisement by Davis considered unethical?
Signup and view all the answers
What is the primary goal of the Truth-in-Lending Act?
What is the primary goal of the Truth-in-Lending Act?
Signup and view all the answers
How is property legally defined?
How is property legally defined?
Signup and view all the answers
What happens when the general level of prices decreases?
What happens when the general level of prices decreases?
Signup and view all the answers
Who is responsible for paying the points on a Cal-Vet loan?
Who is responsible for paying the points on a Cal-Vet loan?
Signup and view all the answers
Comparing a straight note and an installment note, which is correct?
Comparing a straight note and an installment note, which is correct?
Signup and view all the answers
What provides basic protection for lenders on a purchase-money second trust deed?
What provides basic protection for lenders on a purchase-money second trust deed?
Signup and view all the answers
What is capitalization in the context of asset valuation?
What is capitalization in the context of asset valuation?
Signup and view all the answers
To achieve a monthly income of $200 at an 8% return, how much must one invest?
To achieve a monthly income of $200 at an 8% return, how much must one invest?
Signup and view all the answers
Under what condition can an individual deduct a loss on the sale of residential property?
Under what condition can an individual deduct a loss on the sale of residential property?
Signup and view all the answers
Which statement about title to the property is true?
Which statement about title to the property is true?
Signup and view all the answers
Which of the following is not a true statement about easements?
Which of the following is not a true statement about easements?
Signup and view all the answers
How would the family's rental agreement be classified?
How would the family's rental agreement be classified?
Signup and view all the answers
What type of estate does Crown hold in the store building leased from Tyson?
What type of estate does Crown hold in the store building leased from Tyson?
Signup and view all the answers
Which of the following would be categorized as real property?
Which of the following would be categorized as real property?
Signup and view all the answers
What can be determined about the ownership rights in a condominium compared to a rented apartment?
What can be determined about the ownership rights in a condominium compared to a rented apartment?
Signup and view all the answers
Which statement reflects the essence of the Federal Fair Housing Law?
Which statement reflects the essence of the Federal Fair Housing Law?
Signup and view all the answers
What distinguishes a trade fixture from other property types?
What distinguishes a trade fixture from other property types?
Signup and view all the answers
Study Notes
Multiple Choice Questions - Study Notes
- Zoning Change: A change in zoning from commercial to residential by local authorities is called down zoning.
- Market Value: Definitions of market value do not focus on material cost but on value in exchange and objective value in an open market.
- Lease Assignment and Subleasing: A tenant in a five-year lease without assignment or subleasing restrictions can sublease the property with the lessor's consent, but may not assign or sublease to someone else without this permission.
- Estate of Inheritance: A fee simple defeasible is another name for an estate of inheritance.
- Mortgage Loan: A mortgage loan is a financial obligation used to secure a real estate purchase, usually collateralized by the real estate itself.
- Real Estate Agent Misconduct: Making false or misleading statements about property values or insinuating that minorities moving in would decrease property values is called blockbusting.
- Agency Relationship: Agreement between the parties and competency on the part of the principal are necessary for an agency relationship. Paying a consideration is not an essential part.
- Broker's Responsibility for Check: A broker can legally hold a check made payable to the seller until the specified date.
- Construction Financing: The final payment to a builder in new construction financing will be given when the owner accepts the property.
- Appliance Ownership in Offer: If an offer specifies that appliances stay with the property but are crossed out during the agreement by the seller, it's considered unethical conduct.
- Advertising: This ad "Three bedroom, two-bath, pool and spa, large lot -- $167,000. 555-1234" is considered to be misleading in a newspaper ad.
- Listing Agent and Disclosure: A listing agent can only complete the Real Property Transfer Disclosure Statement if authorized in writing by the seller.
- Option Validity: An option to purchase valid for 60 days, with a condition to purchase within 30 days after the option period ends remains invalid if the new holder attempts to exercise the option beyond the initial conditions set out by the agreement.
- Pest Control Costs: When pest conditions indicating future infestation are found, the cost of remedying them is the responsibility of the buyer.
- Purpose of a Deed: The main purpose of a deed is to provide evidence of a real property transaction and the transfer of interest in real property. A deed does not have to be recorded to transfer title.
- Appraisal Date: An appraisal of income-producing property is made on a specific date to reflect the property's market conditions on that date.
- Zoning: A zoning ordinance can be initiated by a subdivider/developer, a local government agency, or the property owner.
- Real Property Tax Reassessment: Real Property is reassessed in situations such as when the projected revenues are inadequate to cover expenses or when the buildings have been destroyed and rebuilt.
- Federal Open Housing Act: The Federal Open Housing Act is enforced whenever a conspiracy exists to violate its provisions or a complaint is filed, indicating a violation.
- Advertising and Seller Information: It is unethical to falsely promote a home's condition or value for sale in order to obtain a buyer and in violation of Regulation Z which governs sales advertising.
- Joint Tenancy and Survivorship: When property is owned as joint tenancy, upon the death of one party, the other parties will inherit the interest of the deceased party.
- Appraiser Duties: An appraiser is not expected to pay a commission to another party for an appraisal assignment or be paid according to a predetermined minimum or maximum value. An appraiser must also disclose any interest held in the property that is being appraised.
Additional Study Notes
- Rental Agreement: The amount of a security deposit is determined based on various factors, including the size of the property, furnished/unfurnished status, and number of occupants.
- Real Estate Broker: A broker may refuse to handle property listings with specific characteristics, such as when a property's asking price is substantially above average market value, or there are other qualifying reasons.
- Mortgage Funds: Mortgage lender proceeds need to be held within an account for the safety and security of the funds until completion of the loan sale.
- Purchase and Sale Agreement: An agreement for sale and purchase should be in writing, include the terms of the sale, and be signed by all parties.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Test your knowledge on essential concepts in real estate, including agency relationships, valuation practices, and appraisal criteria. This quiz covers key topics relevant to construction projects and real estate transactions. Perfect for real estate professionals or students alike.
