Questions and Answers
When a real estate sales transaction is to be closed in escrow, what does the escrow agent do?
Protects the interest of each party to the transaction
What does the transfer of title by descent mean?
Died intestate, and the property passed to his heirs
According to the Do Not Call rules, a real estate sales licensee may contact a past client for relationship-building purposes indefinitely.
True
Which of the following activities are included in Ginnie Mae activities?
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What remedy may a buyer choose if the seller refuses to complete the sale despite having signed a written contract?
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What are payments made periodically to reduce an outstanding indebtedness on real property called?
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If a seller bought a home for $160,000 and made a 6% profit, what was her profit?
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Which of the following is a freehold estate?
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What is a zoning ordinance?
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A buyer who gives a broker five days to secure an acceptance of his offer can withdraw before the five days if he has not been notified of acceptance by the seller.
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What is the listing price of a property known as?
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Which of the following will have lien priority?
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What is included in the financing charge when figuring the annual percentage rate under the Truth-in-Lending Act?
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When a handicapped person is allowed to make modifications to a rental property, who pays for the modifications?
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What is a contract created by actions rather than oral or written words called?
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What areas are planned to provide separation between residential and industrial zones called?
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Which clause in a mortgage allows the lender to call the entire unpaid balance upon default?
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What must be true for a listing to be enforceable?
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A subdivision with a restrictive covenant prohibiting any fence beyond the front corners of the dwelling house can have property owners forced to remove violations.
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What is a mortgage broker?
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All of the following are true of an exclusive agency listing except:
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What does 'physical deterioration' most closely mean?
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Study Notes
Escrow and Closing Transactions
- An escrow agent protects the interests of both parties during a real estate transaction closure.
Title Transfer and Heirship
- Title transferred by descent occurs when the owner dies intestate, leading to property transfer to heirs.
Do Not Call Rules
- Real estate sales licensees can contact past clients indefinitely for relationship-building.
Ginnie Mae Activities
- Ginnie Mae does not finance new subdivisions within its activities.
Legal Remedies in Real Estate
- If a seller refuses to complete a sale after signing a contract, the buyer can pursue a suit for specific performance.
Financial Terms in Real Estate
- Amortization refers to periodic payments made to reduce outstanding property debt.
Profit Calculation
- A 6% profit on a $160,000 home sale amounts to $9,600.
Types of Estate
- A Life Estate qualifies as a type of freehold estate.
Zoning Ordinances
- A zoning ordinance acts as a restriction on property usage.
Offer Acceptance Timeframes
- A buyer granting a broker five days for offer acceptance can withdraw before the expiration if not notified.
Property Appraisal
- The listing price of a property is defined as Market Value.
Lien Priority
- Property taxes take precedence over all other liens recorded on or after May 15.
Financing Charges
- Under the Truth-in-Lending Act, discount points are considered a financing charge when calculating the annual percentage rate.
Modification Costs for Rental Properties
- Tenants are responsible for costs related to modifications made for handicapped access.
Backup Contracts
- A contract that allows for a contingent acceptance after a prior offer is known as a back-up contract.
Listing Requirements
- A real estate listing must be in written form to be enforceable.
Restrictive Covenants
- Violating a recorded restrictive covenant, such as an unauthorized fence, can lead to enforcement actions for removal.
Interest Calculations in Loan Assumption
- For an unpaid mortgage balance of $86,222.60 with an 8% interest rate, the calculated interest debit is $172.45 for the closing period.
Mortgage Clauses
- An acceleration clause allows a lender to demand full payment of a loan balance upon default.
Urban Planning and Zoning
- Buffer Zones separate residential areas from industrial zones as part of urban planning.
Contract Types
- An implied contract is created through actions rather than written or verbal agreements.
Primary Zoning Justification
- Zoning ordinances primarily aim to safeguard public health, safety, and welfare.
Appurtenant Easements
- All appurtenant easements must involve the adjoining of properties, particularly along boundary lines.
Township Measurements
- Townships are organized into columns known as Ranges, based on their distance from the principal meridian.
Liens and Judgments
- A recorded money judgment from the court automatically serves as an involuntary lien.
Role of Mortgage Brokers
- Mortgage brokers act as intermediaries between borrowers and lenders in real estate financing.
Exclusive Agency Listings
- In an exclusive agency listing, the owner is not obligated to pay a commission if they sell the property directly.
Property Conditions
- "Physical deterioration" refers to the wear and tear of a property over time.
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Description
Prepare for your real estate salesperson exam with these flashcards. Each card covers important terms and concepts you need to know, including escrow processes, title transfers, and Do Not Call rules. Test your knowledge and boost your confidence for the exam!
