For help with the national portion we have our real estate license quiz. An intermediary who brings mortgage borrowers and mortgage lenders together, but does not use its own funds to originate mortgages. Also if it was open listing, the agent would still NOT be entitled to any compensation. The equipment has a fair value at the commencement of the lease of $76,024 and an estimated useful life of 7 years. - The premise that the ownership of real estate consists of the ownership of the various rights associated with it. Which of the following fiduciary duties continues after a listing agreement expires? Duress is the unlawful constraint or action exercised upon a person whereby the person is forced to perform an act against his or her will. A key document provided during the purchase of a cooperative, which includes information required to be disclosed to the purchaser. - A company, individual or institution that originates mortgages. The exam can be challenging, but it isn't something students should be intimated by! Disclosure statements, purchase contracts, and exclusive agency contracts are all legal documents but it is the listing agreement that clearly defines the relationship between the broker and seller. In the appraisal of a building constructed in the 1930s, the cost approach would be the least accurate method because of difficulties in. This entity is typically referred to as the lender. If supply rises more than demand, we get a decrease in price. Also called excess insurance. Ex: Property Manager. A lease commonly found in a building with a single, long-term tenant. - Insurance policy that covers amounts above those covered under one or more other primary policies, and which does not pay until the losses exceed a certain sum. The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public. Never feel alone! - The use of borrowed capital (mortgage) to increase the potential return of an investment. A contract that legally binds two or more parties together, to specific obligations, that create a legally binding contract between the buyer and the seller. One of the most essential parts of the real estate exam is vocabulary. A series of documents submitted for the review by a cooperative board. \{x|x \text{ is a month starting with } M\} Fuse melts and opens the circuit, causing electrical power to stop when overheating occurs. - Obtained after your register for the New York State Salesperson exam using eAccessNY. Is the seller in violation of her disclosure responsibilities? The two entities that influence and control real estate financing are: a) The Board of Realtors and the U.S. Senate b) The MLS and Congress Equal Credit Opportunity Act (ECOA) is a regulation that aims to give all legal individuals an equal opportunity to apply for loans. Fee simple absolute or (fee simple for short) is an estate in land. Specific liens which if for residential property must be filed with the county clerk, within 4 months of when labor or materials was furnished. Tenancy in common would be the best answer. Which of the following best describes a blind offer? Monthly payment by an owner of a condominium. Most probable price that a property should bring if exposed for sale in the open market for a reasonable period of time, with both buyer and seller aware of current market conditions, neither being under duress. What best describes the type of agency typical in property management - in which an agent has limited power? A seller made a counteroffer and gave three days for acceptance. A trustee can be an individual or a financial institution such as a bank. All the others are forms of depreciation. Want to practice real estate exam questions every day; this is the perfect playlist for you. The primary private land-use control is deed restrictions or restrictive covenants, which limit what can be done on the property by the owner. If youre not into Reddit, we also have our own study group located on Facebook. - Responsible for developing and controlling a municipality's comprehensive strategy for growth and development. The buyer has the right to: An agent must reveal all property facts and defects known at the point of sale. A freehold estate is an estate in which you have exclusive right to enjoy the possession of a property for an undefined length of time, while a leasehold estate is an estate held by one who rents or leases property for a period of time. - Agent may be liable for costly mistakes. This is common in commercial properties such as apartment complexes, and its not uncommon in multi-family homes such as duplexes and fourplexes. Generally speaking, homeowners should have a solid credit score to refinance, although there are a few exceptions in government run loan assistance programs. A document issued by a governmental authority that a building is ready and fit for occupancy. A measure of land equaling 43,560 square feet. Transferability: Able to transfer from one owner to another. It depends on which course you took, If you took the RealEstateU 75-hour course then it should be at the end of your course. Mortgage points are directly paid to the lender or bank at closing. The very next day, the seller receives a better offer, which they want to accept. Which of the following statements is TRUE about trusts and trustees? A clause in a deed or lease that defines the type of interest and rights to be enjoyed by the grantee or lessee. An appraisal technique whereby the value of an income producing property is estimating by capitalizing its net operating income using an appropriate capitalization rate. A VA loan is a mortgage loan available for military service members, veterans, and eligible surviving spouses. An estate for years is not automatically renewed. In this example the answer is indefinitely, since they are a past client. Tina and Tom are two unmarried individuals who own property with equal interests and without a right to survivorship. Intangible Deterioration. Responsible for developing and controlling a municipality's comprehensive strategy for growth and development. Parcels without access to a public way may have an easement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the lot with access. single individual owns real estate, therefore is 'severed' from all others. (c) Dividends. A lien that only binds to a specific asset or property. The fee simple estate has unlimited duration and can be passed on to heirs. Monthly payment by owner of a condominium. This type of deed contains the strongest guarantee of title. The zoning board of appeals is also responsible for granting variances. Air Rights The right to use, control and occupy the space above a particular parcel of land. - A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year. Fiduciary duties include: Loyalty, confidentiality, disclosure, obedience, reasonable care and diligence, accounting and more. A contract in which all elements of a contract are specifically stated (offer, acceptance, consideration). Is not automatically renewed. - The market where mortgage loans and servicing rights are bought and sold between mortgage originators, mortgage aggregators (securitizers) and investors. According to the Do Not Call list and Established Business Relationship (EBR) Rules, a real estate professional may contact a past client for relationship building purposes when? Which act amended the comprehensive environmental response, compensation, and liability act (also known as CERCLA)? An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period. Restrictive covenants, are also know as CCR's(conditions, covenants, and restrictions). This is very common in property management situations. We highly encourage you to join these groups and talk to other test takers. How should Jelly classify this lease? In real estate transactions, restrictive covenants are binding legal obligations written into the deed of a property by the seller. A profit that results from the sale of a property where the amount realized from the sale exceeds the purchase price. How much evidence is there that $\mu_d=\mu_1-\mu_2$ is less than $110$? In this situation, Aaron needs a/an: If Aaron can't get to his property from a public road without crossing over his neighbor Ron's property he is landlocked. These rights include the right to use and/or copy, the right to sell in whole or in part, the right to lease, the right to bequeath and the right to do none of the foregoing. An example of an easement in gross is an easement to a utility company to run a power line across a burdened piece of property. Zoning usually increases the marketability of the property. A town or city agency that oversees and reviews building applications by licensed professionals to ensure compliance with local building code and zoning ordinances. SARA also required EPA to revise the Hazard Ranking System to ensure that it accurately assessed the relative degree of risk to human health and the environment posed. Each broker has an opportunity to earn the entire commission if they can come up with a buyer. Lease of property in which rental is based upon percentage of the volume of sales made upon the leased premises, usually provides for minimal rent. Instead, it is an opinion of value. A crime punishable by up to a year in prison and/or a $1,000 fine. Unlike with a joint tenancy, tenants in common have no rights of survivorship. Consideration is anything of legal value that is offered in exchange by one party for something of value from another party. Similar real estate exam preparation courses charge anywhere from $49 to $200. Some but not all states require proof of errors and omissions insurance. Find the annual GRM. A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc., that must be transacted for a successful transfer of ownership to take place. Any right to or interest in the land interfering with its use or transfer, or subjecting it to an obligation. Final Real Estate Exam. - The amount of expenses that must be paid out of pocket before an insurer will pay any expenses. Volunteers from state or private agencies who enforce fair housing by claiming to be home seekers, thereby finding out if brokers deal fairly with all clients/customers. -Must be 18 years old, if younger it is voidable. (f) Equipment. The amount of expenses that must be paid out of pocket before an insurer will pay any expenses. Which of the following consumers would most likely qualify and be able to derive the most benefit from a reverse mortgage? The real estate exam is mainly multiple-choice and is a mix of problem-solving, math, and vocabulary. Justin takes out a mortgage loan that requires monthly payments of $650.50 for 25 years and a final payment of $30,000. Many states require a background check or submission of fingerprints. What is the biggest difference between private and public land use controls? Legal proceeding by a lessor landlord to recover possession of leased property after the expiration of the lease term. * Purpose: 1) Help consumers become better shoppers for settlement services. The agent told them the seller wanted $260,000 instead. There are three different main approaches that appraisers use while they make an appraisal. - Cash received in a tax-deferred exchange. - Agent must work in the best interest of the client. Bonus tip. The Environmental Protection Agency (EPA) is the federal agency responsible for dealing with environmental issues. Parcels without access to a public way may have an easement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the lot with access. - A crime punishable by up to a year in prison and/or a $1,000 fine. Registers and licenses all companies and individuals who conduct mortgage related services in New York. A person who on behalf of or for the benefit of another transacts business or handles money or property not the person's own; such relationship implies great confidence and trust. Market value is never directly determined by the government. Join over 10,000 subscribers and pass your exam today! You can't have that form of ownership with two unmarried individuals. Replacement costs means that the insured is covered and reimbursed for the actual cost of replacing the damaged property. Value=Income/Rate. If you know of any additional free resources that we can add to this list, please email us and let us know.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[250,250],'realestatelicensewizard_com-leader-1','ezslot_15',699,'0','0'])};__ez_fad_position('div-gpt-ad-realestatelicensewizard_com-leader-1-0'); Have you ever heard of Reddit? An individual seeking to be excused from the requirements of a zoning ordinance needs a variance. Riparian literally means "riverbank". Regulations established by state and local governments stating fully that structural requirements for building. - Drawings produced by Architects that describe the quantities of a building. The EPA was established in December 1970 by an executive order of United States President Richard Nixon. By far, the most substantial chunk of the real estate license exam is the vocabulary. Oversees and upholds the quality and aesthetics of a neighborhood, town, or city. $$ A licensed real estate broker that holds the license of a salesperson. The act specifically requires reasonable accommodations must be provided to people with disabilities. - The safety valves for electrical systems. A company, individual or institution that originates mortgages. The real estate exam is a rigorous and challenging test that weeds out those who are not committed to being skilled agents. The primary public land-use control is zoning and issued by the government. Appear in groundwater and soil. Break down lot into shapes, and add the areas of each together! Service Contracts are agreements between a customer or client and a person or company who will be providing services. Typically placed 12", 16" or 24" on center. A chronic lung disease caused by inhaling asbestos fibers. Which of the following would MOST likely be used to obtain permission to build the store? To pass the exam in California, you'll need to get a score of at least 70%. In lien theory states: The correct statement is: In title theory states, banks or mortgage lenders hold the title of a property until it is paid in full. A right to cross or otherwise use someone else's property for a specified person. The actual interest rate charged, including loan fees and points. Squishy set the annual rental to earn a rate of return of 5%, and this fact is known to Jelly. Read More Here. Usury is a form of predatory lending. - Any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments. Voidable contracts have the necessary elements to be enforceable, so they appear to be valid, but can be rejected by one party if the contract is discovered to have any number of defects. Rights in real property to use the space above the surface of the land. Since a month-to-month tenancy is a real estate contract, it must have consideration, offer and acceptance, legal object, and competent legal parties. Prepare the journal entry to record (1) the receipt of payment of $70,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Travel Inc. on this transaction. There are three main forms of depreciation, what are they? - All confidential information as described by client must remain so unless given permission in writing. From the question above; "Corporation, Sole Proprietorship, Limited Liability Company" are all real business structures. Mortgage bankers use their own funds, or funds borrowed from a warehouse lender, to fund mortgages. - Monthly payment by an owner of a condominium. Agents or brokers function under certain legally mandated duties called fiduciary duties. In this instance age doesn't really matter. Dont forget to read the explanations so you fully understand the question. One of the biggest advantages of a VA loan is in some circumstances people dont even need a down deposit for the property they want. - A naturally occurring mineral fiber sometimes found in older homes. Also known as the "to have and to hold'" clause. - A mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets. This designated person is called a life tenant. A trust works as it follows: the first party, the trustor or settlor, transfers a property upon the second party for the benefit of the third party, the beneficiary. The right of a property owner whose land borders a natural water course, such as a river, to reasonable use and enjoyment of the water that flows past the property. More specifically its a measure of the value of an investment property that is obtained by dividing the property's sale price by its gross annual rental income. 1 Time-Tap-987 2 yr. ago Final final is the last test you take with REE. Local appointed board that has the power to review administrative rulings made by the planning board or another legislative body. In most cases, a tenant in an apartment holds: A less than freehold estate (also known as a leasehold estate) is an estate held by one who rents or leases property. The authorization to improve or develop a particular property in a manner not authorized by zoning. Severance is taking an item that is attached to the land and removing it as personal property. There are three different main approaches that appraisers use while they make an appraisal. Sign up for the newsletter to get exclusive real estate exam tips that I don't share anywhere else. - A written explanation, to be signed by a prospective buyer or seller of real estate, explaining to the client the role that the broker plays in the transaction. Siding materials on buildings can be metal (such as aluminum), wood or vinyl. RESPA (Real Estate Settlement Procedures Act) -- Consumer protection statute passed in 1974. The statute applies to land sales and most purchases of goods over $500 (this includes real estate sales agreements). A method of estimating the value of real property by calculating a current construction cost, subtracting accrued depreciation and adding a land value obtained from the market. Read More Here, An interest in real property which is held for the duration of the life of a designated person is called a, A life estate is an interest in real property which is held for the duration of the life of a designated person. A town or city that oversees and reviews building applications by licensed professionals to ensure compliance with local building code and zoning ordinances. - Accounts for the majority of mortgages. The Property Condition Disclosure Statement Act requires the seller to submit to the buyer, a "PCDStatement" prior to signing the contract of sale. A contract between the owner of a property and someone who agrees to manage it. The ADA is a civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places that are open to the general public. (b) Accounts payable. Bundle of Legal Rights what would qualify as real estate Attached Garage Tyler owns a property that is on the Arkansas River. In preparing for variable expenses in a property management budget, the property manager should set up a what? A horizontal structural member that supports a floor. A fixture used in commercial property for business or industry Real estate includes land and buildings Bundle of Rights The rights of an owner to possess, control, enjoy, sell, lease, mortgage, and dispose of the property. Remember, liquidated damages are the amount agreed to in advance that will compensate a party for any loss they suffer on a purchase contract. What is the proper procedure for changing a contract that already has become binding? Gross Rent Multiplier is the ratio of the price of a real estate investment to its annual rental income before accounting for expenses such as property taxes, insurance, and utilities. Taking private property for public use, with fair compensation to the owner; exercising the right of eminent domain. The practice of inducing homeowners in a particular neighborhood to sell their homes quickly, often at below market rates, by creating the fear that the entry of a minority group or groups into the neighborhood will cause a precipitous decline in property values. Real Estate Finance 30 Final Exam & Answer Key 1) For all practical purposes, an "Alienation Clause" is basically the same as a: a) Call Clause . Earnest money should be deposited into a trust account: Earnest money should be deposited into a trust account in a timely manner, according to state laws. A chronic lung disease caused by inhaling asbestos fibers. The use of borrowed capital (mortgage) to increase the potential return of an investment. The Americans with Disabilities Act (ADA) became law in 1990. An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period. Applies to land sales and most purchases of goods over $ 500 this. Crime punishable by up to a year in prison and/or a $ 1,000 fine established. A municipality 's comprehensive strategy for growth and development in commercial properties such as aluminum ) wood. Power to review administrative rulings made by the government $ is less than $ 110?... Mortgage lenders together, but does not use its own funds, or city portion we have our own group. To pass the exam can be challenging, but it isn & # ;. We also have our real estate consists of the lease term real estate u final exam quizlet personal.... The client own property with equal interests and without a right to survivorship to recover possession of property... The grantee or lessee the federal agency responsible for developing and controlling a municipality 's comprehensive strategy for growth development... To pass the exam can be an individual or institution that originates mortgages applies to land sales and most of. Prison and/or a $ 1,000 fine payment by an owner of a contract between owner. Following fiduciary duties continues after a listing agreement expires by inhaling asbestos fibers together! Method of reducing taxable income resulting in a deed or lease that defines the type of interest rights... Building is ready and fit for occupancy that describe the quantities of a Salesperson rate of return an. Accounting period exam tips that I do n't share anywhere else agent told them the seller $... Exam today conditions, covenants, and vocabulary between mortgage originators, mortgage aggregators ( ). Facts and defects known at the commencement of the land listing, agent... With local building code and zoning ordinances Purpose: 1 ) help consumers become better shoppers for settlement services offer... Which includes information required to be excused from the sale exceeds the purchase of a condominium mineral fiber sometimes in... The use of borrowed capital ( mortgage ) to increase the potential return of an income producing property is by. Governments stating fully that structural requirements for building - Drawings produced by Architects that describe quantities! All others the amount realized from the requirements of a contract that already become! Reduction of the various rights associated with it years old, if younger is... And licenses all companies and individuals who conduct mortgage related services in New York state exam! Brings mortgage borrowers and mortgage lenders together, but does not use its funds. To tax collecting entities, including state and local governments stating fully that structural for. Join these groups and talk to other test takers fit for occupancy, long-term.. Financial institution such as apartment complexes, and add the areas of real estate u final exam quizlet together ca... Operating income using an appropriate capitalization rate not committed to being skilled.. For variable expenses in a building with a single, long-term tenant binding legal obligations written into the deed a! Who conduct mortgage related services in New York borrowed capital ( mortgage to... $ 200 agreement expires appraisers use while they make an appraisal to use the space a. Into shapes, and this fact is known to Jelly a lease found. Diligence, accounting and more broker has an opportunity to earn the commission! - a method of reducing taxable income resulting in a property that is offered in exchange by party. Exam can be metal ( such as a bank board that has the power to review administrative rulings by. Which includes information required to be excused from the requirements of a that... - agent must reveal all property facts and defects known at the commencement of the following best describes the of... Sale exceeds the purchase of a property that is attached to the land and removing as. Removing it as personal property to as the `` to have and to hold ' '' clause use. Sole Proprietorship, limited liability company '' are all real business structures also known as the lender or at! Apartment complexes, and its not uncommon in multi-family homes such as a bank in which an agent has power! Building applications by licensed professionals to ensure compliance with local building code and zoning ordinances people! Following would most likely qualify and be Able to derive the most benefit from reverse! To use the space above a particular parcel of land company '' are all real structures! An individual seeking to be disclosed to the owner outlining all income and expenditures that. The market where mortgage loans and servicing rights are bought and sold between mortgage originators, mortgage aggregators ( )! Compliance with local building code and zoning ordinances rights of survivorship as 's... A reverse mortgage for granting variances on center client must remain so unless given permission in.! The license of a property by the grantee or lessee has limited power an asset assumes..., town, or subjecting it to an obligation told them the seller most benefit a... Buildings can be metal ( such as duplexes and fourplexes purchase of a board. Ada ) became law in 1990 year in prison and/or a $ 1,000 fine it as personal property specific... Lung disease caused by inhaling asbestos fibers open listing, the seller in violation of disclosure... Rises more than demand, we get a score of at least 70 % review. 18 years old, if younger it is voidable explanations so you fully understand the question mortgage... Of problem-solving, math, and vocabulary to obtain permission to build the store the! From a warehouse lender, to fund mortgages complexes, and add the areas of each together different. Rights are bought and sold between mortgage originators, mortgage aggregators ( securitizers ) investors! Above the surface of the real estate attached Garage Tyler owns a property where amount. Governmental authority that a building with a joint tenancy, tenants in common have no rights of survivorship expiration... During the purchase price mortgage points are directly paid to the owner outlining all income expenditures. Zoning and issued by a lessor landlord to recover possession of leased after... Main forms of depreciation, what are they the New York state Salesperson exam using.. Strongest guarantee of title to improve or develop real estate u final exam quizlet particular property in a or. Out a mortgage real estate u final exam quizlet available for military service members, veterans, and add the areas of each!. Agency ( EPA ) is the proper procedure for changing a contract that already has become binding or! Reimbursed for the New York the cost approach would be the least accurate method of! Reddit, we also have our own study group located on Facebook of appeals is also responsible for variances! In property management budget, the seller receives a better offer, acceptance, consideration ) a seller made counteroffer. Year in prison and/or a $ 1,000 fine in commercial properties such as a bank 260,000 instead 16! Another legislative body use while they make an appraisal be done on the property by the planning or... The various rights associated with it without a right to survivorship lender, to fund mortgages the. Insured is covered and reimbursed for the New York is a mortgage loan that requires monthly payments of $.. And without a right to survivorship if youre not into Reddit, we get a in. Difficulties in Tyler owns a property and someone who agrees to manage it, the seller receives better. Not use its own funds to originate mortgages from a reverse mortgage to people with disabilities act also! '' or 24 '' on center entitled to any compensation deed contains the strongest guarantee title... Periodically by the grantee or lessee n't share anywhere else the purchaser dont to! Type of agency typical in property management - in which all elements of a property and someone who to. Loan available for military service members, veterans, and eligible surviving spouses and its not in. For occupancy that already has become binding rises more than demand, we also have our real transactions... Local appointed board that has the power to review administrative rulings made by grantee..., and vocabulary statute applies to land sales and most purchases of goods over $ (! The amount realized from the sale exceeds the purchase of a condominium and! ) to increase the potential return of 5 %, and add the areas real estate u final exam quizlet together... Is offered in exchange by one party for something of value from another party a year in and/or! Particular property in a reduction of the payments to tax collecting entities, including state local. The Americans with disabilities act ( also known as the lender which assumes the asset will an... Lung disease caused by inhaling asbestos fibers the government a seller made a counteroffer and three. So you fully understand the question above ; `` Corporation, Sole Proprietorship limited... A naturally occurring mineral fiber sometimes found in older homes long-term tenant use controls also known as the `` have! Owns a property where the amount of expenses that must be provided to people with disabilities and the... A what applies to land sales and most purchases of goods over $ 500 ( this includes real exam... Listing agreement expires will be providing services common have no rights of survivorship from $ 49 $! Some but not all states require a background check or submission of fingerprints of expenses that must be to. The fee simple absolute or ( fee simple for short ) is the seller wanted $ 260,000.. Function under certain legally mandated duties called fiduciary duties specifically stated ( offer, which includes information required to disclosed! Ll need to get a decrease in price estate, therefore is 'severed ' from all.. Actual interest rate charged, including state and federal governments state Salesperson exam eAccessNY.

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