30 Questions
How much of the $950,000 selling price will the married couple be required to pay capital gains tax on?
$50,000
What type of listing provides a commission to the broker only if their activities lead to a sale?
Open
Who provides flood insurance to homeowners?
The National Flood Insurance Program (NFIP)
What is novation in real estate?
The substitution of one contract for another
In mortgages, what is another term for an origination fee?
Points
How much was the gain for the married couple who sold their home for $950,000 after buying it for $400,000?
$300,000
What federal law amended the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)?
Superfund Amendments and Reauthorization Act (SARA)
In a real estate transaction, who is responsible for paying the origination fee?
Seller
What economic characteristic makes land a distinctive commodity?
Indestructibility
What percentage of the sale price did Tareq receive when selling a house for $427,000 with a 7% commission split with the buyer's representative?
20%
Jordan took out a loan of $265,000 with an annual interest rate of 4%. What will she pay monthly in interest?
$883.33
What did the Superfund Amendments and Reauthorization Act (SARA) designate more money to?
The Superfund trust
What is the term for a property whose value may be reduced due to events like death, crime, or paranormal activity?
Stigmatized property
Which federal law amends CERCLA, designates more money to the Superfund trust, and establishes new environmental laws and regulations?
Superfund Amendments and Reauthorization Act (SARA)
What is a life estate?
An interest in real estate that is limited to the duration of the measuring life
Which economic principle states that the value of a property is only what a consumer would pay to acquire a comparable property?
Market value principle
In real estate, what does the term 'stigmatized property' refer to?
Properties affected by undesirable events like death or crime
Which law designates more money to the Superfund trust, amending CERCLA and setting new environmental regulations?
Superfund Amendments and Reauthorization Act (SARA)
What is market price?
The amount a buyer agrees to pay and the seller agrees to accept for a property
What principle states that a property's present value is influenced by the expected income or utility it will provide?
Anticipation
What can a broker do that a salesperson or associate broker cannot?
Hold a trust fund account
Which lease type is typically used for retail properties?
Percentage lease
In Texas, what protection is offered by state constitutional homestead rights?
Judicial homestead rights
What can brokers authorize salespersons or associate brokers to do regarding trust accounts?
Withdraw or transfer money from the broker's trust account
Which principle states that the value of a property is only what a consumer would pay to acquire a comparable property?
Principal of substitution
What is vicarious liability?
Liability for others by mandate of law or by express agreement
What type of right is a license in real estate?
License
If a landowner sells the property, what happens to a license granted to someone else?
Is typically terminated
What kind of liability is it when someone is held accountable for the actions of another based on a legal mandate or agreement?
Vicarious liability
Which principle in real estate valuation suggests that the value is determined by what a consumer would pay for a similar property?
Principal of substitution
Test your knowledge on stigmatized properties, where the value may be reduced due to events like crime or paranormal activity. Learn about the federal law that amends disclosure requirements for such properties.
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