Real Estate Practices Quiz

A property license, granting permission to use another's property, is not permanent. It can be terminated by the property owner, through death of either party, or sale of the property.

A grantor (seller) promises to compensate the grantee (buyer) if their ownership claim is challenged by a past claim.

Managers of community associations are required to hold a Fidelity Bond.

A VA loan requires a zero down payment.

The Cost Approach is used to determine value of a Unit in Place Valuation.

An offer on a property that's already under contract, serving as a backup in case the initial contract falls through.

A type of insurance policy that protects against financial losses caused by an individual's dishonesty or fraud.

A method of valuing a property by estimating the cost to rebuild it new, minus depreciation.

A situation in which a broker promises to buy a client's home. This agreement must be made before the listing is finalized.

To calculate NOI when given quarterly income and expenses as a percentage of annual income, multiply quarterly income by 4 to get annual income, then multiply annual income by the expense percentage to get the expense amount, and finally subtract expenses from annual income.

Items attached to a property by a tenant for business purposes. They remain personal property unless removed before the lease expires.

An appraiser determines their fee based on the complexity and time required to complete the appraisal.

A valuation method where an appraiser calculates the cost to replace a property with a new one.

A broker can be liable for a salesperson's Fair Housing violation if they didn't provide proper supervision, training, or were aware of the act.

Calculating how much of the hazard insurance premium the seller owes for the time they own the property.