National Final Exam #4

B purchases a small commercial property, and he finances it with a 65% loan. The lender charges 9.25% annual interest and three discount points. The discount points:

Broker T owns a building maintenance company, in addition to a property management firm. T\’s building maintenance company services most of the properties that T manages. May T legally do this?

The term “capitalization” refers to:

A building has dimensions of 108\’ × 60\’ × 12\’, and the seller is asking $110 per square foot. What is the seller\’s asking price?

A mortgage loan in which the amount of the monthly payment can change in response to fluctuations in an index is a/an:

The highest price a buyer will pay for a property that is offered for sale on the open market under normal conditions is referred to as its:

S has agreed to purchase a home for $170,000. Her lender begins processing the loan application and in so doing orders a certificate of reasonable value. What type of financing is S seeking?

A seller\’s agent may disclose confidential information about her client:

The purpose of collateralizing a note with a deed of trust is to protect the:

R conveys title to land to K by means of a special warranty deed. To ensure that the deed conveys all of the property, it must include:

The state transportation department offers to purchase a home in order to acquire the land needed for a new overpass. The homeowner refuses to sell. The transportation department may proceed to acquire the property anyway, under its right of:

Under which of the following circumstances would a listing be terminated?

What is the primary difference between air rights and subsurfacerights?

In order to avoid inadvertent dual agency, a real estate agent must make an agency disclosure:

A property is listed for $208,950. The broker finds an interested buyer who wants to offer $183,000, which is well below what the broker knows the seller will accept. What should the broker do?

If a couple asks a broker how they should take title to property they are purchasing, the broker should tell them:

A mortgage that allows the mortgagor to reborrow (when needed) any part of the debt that has been repaid, without having to negotiate a new mortgage, is called:

The standard type of agency between a broker and a seller is:

Which of the following is true about mineral rights?

H obtains a 90% conventional loan that calls for 59 monthly interest payments of $1,425, and then a balloon payment of $181,425 at the conclusion of the sixtieth month. What kind of loan did H obtain?

Which of the following problems is covered by a standard policy of title insurance?

Which of the following laws assigns responsibility for environmental cleanup costs?

Which of the following estates could result from the cessation of a life estate?

The Government National Mortgage Association (GNMA):

When ABC Realty listed N\’s home, it wanted to use the type of listing that would ensure a commission regardless of who sold the property. What type of listing did ABC Realty use?

The commission a broker will charge a seller is determined by:

A property sells for $125,500. The total commission charged by the broker for whom Salesperson S works is 7%. S will receive 25% of the total commission for listing the property and 50% of the total commission for selling the property. How much does S\’s total share of the commission come to?

Adams purchased a home that was wired for 100 amps of electricity, butthe power company only offered 125-amp service. This is an example of:

Which of the following statements about the annual percentage rate is true?

After the buyer and seller have signed a land contract, but before theinstallment payments have been fully paid, what kind of interest does thebuyer have in the property?

A developer buys 35 acres for subdivision, making a 30% downpayment and giving the seller a purchase money mortgage for the balance of the purchase price. In order for the developer to obtain future construction loans for the individual lots, what provision must be included in the purchase money mortgage?

S\’s three-year lease expired on January 31. In mid-February S was still in possession of the land, despite repeated requests by the landlord to vacate. S\’s occupancy is referred to as a:

A borrower obtained a $100,000 loan for which he was charged a 1.5% loan fee, a 1% service fee, and two discount points. What was the net amount of the loan?

A buyer and seller enter into a purchase and sale agreement that specifies that the buyer has 60 days to obtain financing. Through no fault of the buyer, it\’s impossible to obtain a loan commitment from a lender within the prescribed period. The seller agrees to give the buyer an extension. The real estate broker should have both the buyer and the seller sign a/an:

All of the following duties would be typical for a property manager, EXCEPT:

An exception to the zoning rules that is granted by a planning commission is called a:

In the secondary market:

The heating system in an apartment complex is seldom functioning in the middle of the winter, when the temperatures are typically below freezing. The landlord ignores the oral and written requests of the tenants to remedy the problem. After reasonable notice, the tenants can terminate their leases and vacate the premises according to the doctrine of:

P enters into a purchase and sale agreement with Seller H. Shortly thereafter, a title search reveals that H will not be able to deliver marketable title to P because there are some title defects that cannot be corrected. P demands that her earnest money deposit be returned immediately. Which of the following is the proper course of action for the broker?

Which of the following most accurately describes an appraisal?

M is interested in obtaining the right to purchase certain property, but he does not want to be obligated to do so. Under these circumstances, what kind of contract should he sign?

Which of the following would NOT result in the termination of a lease?

A mortgagee forecloses on a property, and the proceeds from the foreclosure sale do not cover the costs of foreclosure. What can the lender do?

The remaining three lots in a residential subdivision sold for considerably more than the lots that sold before them. Which of the following appraisal principles explains this development?

L purchased a home seven years ago for $90,000. He wants to obtain a 30% profit after paying a 6% commission and $1,300 in settlement costs. To realize L\’s desired profit, how much would the house have to sell for?

A temporary, revocable right to use another\’s land is called a/an:

Which of the following would be a reason for refusing to accept a wraparound loan from a lender?

Private mortgage insurance primarily benefits the:

Over the course of an appraisal, the appraiser makes a separate value estimate for the land. Which valuation method is the appraiser using?

K leases a cabin in the mountains from July 15 to August 30. This is an example of:

If the Department of Housing and Urban Development (HUD) receives a valid complaint that an act of discrimination has taken place, it is required to:

A subdivision\’s declaration of restrictions prohibits building any improvement closer to any lot line than 25 feet. An owner builds her garage 10 feet from her neighbor\’s boundary. What is the neighbor\’s recourse?

An appraiser is attempting to estimate the value of a 20-year-old home. Which of the following would provide the most reliable indication of the property\’s value?

T was using W\’s land to enter and leave her own property. W was aware of T\’s conduct but did nothing about it. After the period of time set by statute, T\’s use of the land could result in:

A lender agrees to make an 80% loan at 7% annual interest with four points. If the sales price is $160,000, what is the amount of the discount?

A buyer’s agent asks the listing agent for copies of the water and sewer bills for the listed property. The listing agent:

Harris agrees to sell her farm to Watkins, and she signs a purchase and sale agreement for $287,000. Three weeks later she changes her mind and notifies Watkins that she is canceling the agreement. Watkins sues to force Harris to complete the transaction. This is called a suit for:

A judgment lien\’s priority is established by the:

Zoning, building codes, fire ordinances, and environmental regulations are examples of the government\’s exercise of its inherent:

When an escrow agent is completing a buyer\’s settlement statement, how will she determine the amount of cash the buyer will need at closing?

Which of the following would be most likely to reveal the existence of an encroachment?

Which section of a deed refers to the encumbrances, liens, and easements?

Voluntary transfer of title to property is called:

In an installment land contract, when does title pass to the buyer?

At age 69, N wants a monthly cash flow, and he is willing to use his free-and-clear home to get it. Which of the following types of loans provides for monthly payments from the mortgagee to the mortgagor?

When must an appraiser determine the fee to be charged for appraising a property?

Which of the following terms has to do with tax-free exchanges?

Under the 1988 amendments to the Federal Fair Housing Act, which of the following individuals qualifies on the basis of his or her age to live in housing that is exempt from the prohibition to exclude children?

Which of the following is an example of economic obsolescence?

Which of the following statements regarding the Real Estate Settlement Procedures Act (RESPA) is true?

Which of the following statements can be included in a real estate advertisement without triggering additional disclosure requirements?

N wants to lease space in a commercial complex to start a bakery. N is new to the business world, but the landlord expects profits to increase once the business is established. What type of lease would be most advantageous for the landlord?

An easement in gross is one without a:

Hamilton plans to convey title to Spencer, but he wants to make the conveyance without any warranties or subsequent liability. Which deed should he use?

A small industrial property was appraised last week at $487,000. The owner bought the property five years ago. Since then the property has depreciated at a rate of 4% per year. How much did the owner originally pay for it?

Which if the following statements is TRUE?

A fourplex sold recently. Two of the units rented for $850 a month, and the remaining two units rented for $950 a month. The rents were paid at the first of the month. The transaction closed on the 20th of the month. How much would the seller owe the buyer in prorated rents at the time of closing? Base your calculations on a 30-day month.

When a property manager signs a property management contract with an owner, the property manager is a/an:

Z dies intestate and has no heirs that can be located. His estate will:

In a listing agreement, who is the principal?

Which of the following statements about easements is TRUE?

A building\’s gross annual income is $550,000. Its operating expense ratio is 83%. The capitalization rate is 11.5%. What is the building\’s value using the capitalization approach?

An adverse possessor\’s possession of the property must fulfill all of the following requirements, EXCEPT:

When does reversion become effective? At the end of a:

When is the effective date of an appraisal?

The term \”effective interest rate\” refers to the:

Special assessments levied against a property for local improvements, such as streetlights and sidewalks, are computed on the basis of:

Who makes decisions affecting a particular condominium complex?

Which of the following statements about a littoral right is true?

Which of the following must sign a written lease agreement?

Earl and Merle own a property together with undivided interests, without the right of survivorship. This would be considered:

A broker misrepresented his principal\’s property when showing it to a buyer. The actions of the broker may subject his principal to:

Which of the following easements runs with the land and is binding on all subsequent owners?

A person who is authorized to act legally for another person is a/an:

Which of the following is a true statement regarding buyer agency?

Which of the following statements regarding the government survey method is correct?

All of the following goals are accomplished through zoning regulations, except:

The law that requires a deed to be in writing is the:

A salesperson\’s contract states that she is an independent contractor. When she obtains a listing, she is:

Which of the following rights are included within the owner\’s \”bundle of rights?\”