Questions and Answers
If a property is located in a federally designated flood area, which type of insurance compensates for physical property damage as a result of flooding?
What effect can careful zoning have on property values?
Increased property value
A reconveyance deed is used in connection with what?
A trust deed sale
What is a type of ownership where individuals own their building or unit, but common areas are owned jointly?
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If George has an 85% interest in a property while Ernie has a 15% interest, which right is equal?
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Discriminatory access to multiple listing services is prohibited by which act?
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If a borrower with an adjustable-rate mortgage makes a payment that defers the interest, what is this called?
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What is it called when a party requests the court to order another party to complete a sale?
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What happens if Mr. Kite lists a property for sale but does not authorize his agent to accept any deposits?
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What does the 'back' or 'bottom' ratio include?
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What is required for a valid homestead claim?
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What is the formula for determining the value of an investment property?
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If one party cannot fulfill a contract, what can the victim party claim?
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How many acres are in a section?
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Ingress or egress means the right to what?
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Study Notes
Flood Insurance
- Flood insurance is mandatory for properties in federally designated flood areas.
- It compensates for physical damage to property due to flooding.
Zoning and Property Values
- Careful zoning can enhance property values based on the Principle of Conformity.
Reconveyance Deed
- A reconveyance deed is utilized in trust deed sales when a loan is fully paid.
- It is executed by a trustee to the trustor.
Planned Unit Development (PUD)
- In a PUD, individuals own their building or unit outright.
- Common areas are jointly owned by all development members, differing from condominiums which have undivided interests.
Rights of Possession
- All owners of a property, regardless of ownership percentage, have equal rights of possession.
Fair Housing
- The Federal Fair Housing Act prohibits discrimination in access to multiple listing services.
Negative Amortization
- Occurs when payments on an adjustable-rate mortgage do not cover the interest, causing the principal balance to increase.
Specific Performance
- Legal action where a buyer can compel the completion of a sale when a seller refuses to sell after a written contract is formed.
Broker Duties
- If a broker accepts a deposit on behalf of a buyer without seller authorization, the broker must retain it as the buyer's agent under the Law of Agency.
Back Ratio
- The "back" or "bottom" ratio includes total housing costs and all other monthly debts.
Homestead
- A valid homestead claim requires the individual to reside on the property and sign a claiming statement.
Investment Property Valuation
- Calculated by dividing net operating income by the capitalization rate.
Contract Default
- If one party fails to fulfill the contract terms, the other party can claim that the first party defaulted.
Land Measurement
- One section of land encompasses 640 acres.
Ingress and Egress
- Refers to the legal right to enter or exit designated premises.
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Description
Explore crucial concepts related to real estate insurance and zoning regulations. This quiz focuses on flood insurance and the impact of zoning on property values, providing essential knowledge for property owners and investors. Understand how these factors influence real estate decisions and financial security.
