Questions and Answers
Real Estate law governing advertising applies to all of these EXCEPT:
The crack pointed out by the inspector is an example of:
In this case, the veteran may:
General real estate property taxes levied for the operation of the government are called:
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Under current Regulations, a U.S. Department of Veteran Affairs (VA) loan is assumable if:
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During the period of time after a real estate sales contract is signed, but before title actually passes, the status of the contract is:
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If there is a discrepancy between a residential lot size quoted in a listing contract and the actual lot size, the actual lot size that will prevail in a sales transaction will be found in:
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What was the appraised value of the property?
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A document that protects against hidden risk such as forgeries and loss due to defects in title, subject to specific exclusions, is called:
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What is the annual rate of interest?
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If, upon the receipt of an offer to purchase a property, the seller makes a counteroffer, the prospective buyer is:
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The component of an adjustable-rate mortgage (ARM) that limits the percentage that the interest rate may increase over a specific time period is:
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Study Notes
Real Estate Advertising Law
- In-house notes for showing do not require adherence to state or federal laws since they are not visible to consumers.
Property Inspection Defects
- A six-inch crack visible during inspection is classified as a patent defect, easily noticeable by an inspector.
VA Loan Purchase Scenarios
- If a veteran’s offer exceeds the VA’s certificate of reasonable value (CRV), they may make up the difference in cash to proceed with the purchase.
Property Taxes
- General real estate property taxes collected for government operations are referred to as ad valorem taxes.
VA Loan Assumption
- VA loans post-March 1, 1988 require VA approval for both the buyer and the assumption agreement for the loan to be assumed.
Contract Status
- The status of a real estate sales contract, prior to title transfer, is termed executory when terms are not yet fulfilled.
Lot Size Discrepancy
- Actual lot size in a sale takes precedence over quoted sizes in listings and can be verified through a survey.
Appraised Property Value Calculation
- For a loan at 75% loan-to-value (LTV) ratio, with the first-month interest at $477.82, the appraised property value is calculated at $107,300.
Title Insurance
- Title insurance protects against unseen risks like forgeries and title defects, with some exclusions specified.
Calculating Annual Interest Rate
- A loan payment of $412.50 interest on a $60,000 balance corresponds to an annual interest rate of 8.25%.
Impact of Counteroffers
- When a seller counters an offer, it nullifies the original offer, creating a new offer for the buyer to consider.
Adjustable-Rate Mortgages (ARMs)
- The rate cap in an adjustable-rate mortgage limits how much the interest rate can increase within a specified time frame, typically one year.
Market Influences on Rent
- In most areas, rental prices are influenced primarily by supply and demand rather than associations or unions.
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Description
Test your knowledge on various aspects of real estate law, including advertising regulations, property inspection, VA loans, and tax implications. This quiz covers important definitions and principles that every real estate professional should know.
