Barney Fletcher Real Estate Exam, Exams of Advanced Education

Download Barney Fletcher Real Estate Exam and more Exams Advanced Education in PDF only on Docsity! Barney Fletcher Real Estate Exam Assemblage - Answer- combining two or more contiguous parcels of real estate into a single parcel under one ownership plottage - Answer- an increase in value resulting from assemblage fixture - Answer- personal property that is permanently attached to real property and goes with the property when its sold what makes something a fixture - Answer- if object was fixed or installed with the intention of improving the home appurtenances - Answer- when new fixtures are attached ex. heat/air, roof have brokers license but are working for another broker - Answer- associate broker principal/employing broker - Answer- in charge of and responsible for all real estate operations conducted by a real estate brokerage firm which type of land description are the properties described as they relate to meridians - Answer- government / rectangular survey alienation of title - Answer- any change of ownership - transferring ownership rights or interests in real property from one person to another legal title - Answer- right of ownership of a parcel of real property held by an owner equitable title - Answer- interest in a piece of real estate held by a buyer held under a contract to obtain absolute ownership of the property at a future date bare legal title - Answer- lacks the usual rights and privileges associated with ownership constructive notice - Answer- information has been made available to the public inquiry notice - Answer- when factors exist that make someone inquire further ex. dirt road running across you would inquire whether there is an easement in place marketable title - Answer- a title free from reasonable doubt as to who the owner is abstract of title - Answer- detailed report of the title search torrens system - Answer- an owner petitions the state court to register his property transfer of land allodial system - Answer- individuals are able to own land eminent domain - Answer- right of govs to assume property for necessary public use escheat - Answer- power the gov has when someone dies intestate and leaves no known heirs PETE - powers of gov over title - Answer- police power, eminent domain, taxation, escheat encroachment - Answer- unauthorized infringement on a property owners rights as a result of physical intrusion freehold estate - Answer- highest and most complete form of ownership seisin - Answer- possession of freehold estate qualified fee estate - Answer- a fee simple estate that has certain limitations / qualifications - owner holds fee simple title defeasible - Answer- capable of being voided/defeated life estate - Answer- fee simple estate that is conveyed to a person for the duration of their life remainder estate - Answer- future interest in real estate created at same time and by same instrument as other state statutory estate - Answer- any state created by the law/ gov Non-freehold estates - Answer- for years, year to year, at will, sufferance for years - Answer- definite beginning and definite end year to year - Answer- indefinite number of time periods ex. month to month or week to week rental deal falls apart and buyer and seller cant agree on earnest money dispersal, what do they do? - Answer- broker should interplead in court forces a party to carry out his/her obligations under a contract - Answer- specific performance lawsuit as this kind of agent,: if seller reveals his bottom line, only disclose with written contract - Answer- dual agent if seller asks you to hide a defect/material fact and you agree, who is liable - Answer- both the seller and the broker three ways to handle trust funds - Answer- list with your broker, put funds in his trust list with another broker, put funds in his account open your own trust w brokers permission and register with GREC what does hair housing not cover - Answer- illegal drug users can you always count on earnest money refund if you withdraw your offer to acceptancw - Answer- yes option to buy price is determined when negotiatin - Answer- the original option agreement is earnest money a requirement of a valid, binding contract? - Answer- no who are commissions determined by? - Answer- broker and seller you receive two offers - Answer- tell seller to accept or counter on one offer and reject the other or reject both federal law against monopolies is what - Answer- shermin antitrust act used to fully express the intent of the parties when not covered in the pre-printed fill in the blank forms - Answer- special stipulations if the owner instructs you, as the property manager, to do something that might harm to owner/tenant, you must: - Answer- inform the owner of potential danger, ie. removing a loose railing on the deck when the seller receives and accepts an offer it becomes binding when: - Answer- communicated back to the buyer redlining - Answer- unfair denial of a mortgage loan or insurance policy blockbusting - Answer- overly creating the impression that the nbhd is about to change for the worse what is a tie-in? is it legal or illegal? - Answer- when builder requires someone to buy one lot to get another - illegal what is mistaking sales prices in publications to keep prices higher? - Answer- misrepresentation and illegal is disclosing how you pre-qualify buyers requires to signing a brokerage agreement? - Answer- no death of who terminates a current listing - Answer- death of owner escrow - Answer- process where money and documents related to a transation are held in safekeeping until terms and conditions are met CANSPAM act - Answer- set rules for commercial email, messages, etc. allows a call to be places to a former client for up to 18 months after the last transaction illegal acts under sherman antitrust act - Answer- tie-ins market allocations price fixing boycotting/denying membership least significant in open listings - Answer- procuring cause if seller asks you not to disclose a defect, you: - Answer- tell him you cannot honor the request dual agency - Answer- permissible if allowed in office policy, must have written informed consent of all parties how to calculate downpayment - Answer- sales price-loan amount panic selling / blockbusting - Answer- illegal under fair housing fiduciary - Answer- position of trust and confidence who is ultimately responsible for escrow accounts - Answer- principal broker no hiding what in an escrow account - Answer- monies designated agent vs transaction broker - Answer- designated agent:assigned to a client, represent either the seller or the buyer transaction broker: someone with license who acts as third party all are customers ministerial acts only vendor / vendee are who in contract for deed - Answer- vendor: sellor vendee: buyer broker always gets paid with what right to sell - Answer- exclusive right to sell under federal law (RESPA) no kickbacks allowed at minimum for a contingency - Answer- you must do an amendment to extent so it doesnt expire if the buyer is underage, contract is only binding on who - Answer- the seller if seller asks the race of buyer and you refuse to answer, does this break your fiduciary duties? - Answer- no over exaggeration of real estate - Answer- puffing exclusive agency/exclusive listing contract - Answer- listing property with one broker - seller can still sell without paying commission no matter how many times a seller refuses offer, do you have to present all offers? - Answer- yes option agreement - Answer- owner agrees to give a buyer/lessee the right to buy or lease a particular piece of property for a price any time during an agreed upon period of time 5 things that make a lease valid: - Answer- competent parties meeting of the minds consideration legal description intended use of property civil rights act of 1866 - Answer- prohibits discrimination based on race fair housing act of 1968 - Answer- pans discrimination based on race, color, religion, sex, national origin exceptions to federal fair housing laws: (7) - Answer- private / individual owners owner occupants religious organizations private membership clubs all-elderly housing exemption VA FHA amortization - Answer- gradual repayment of debt in periodic amounts insufficient payment to pay one months interest payment results in: - Answer- negative amortization interest only - Answer- straight mortgage /term note tax closing - Answer- september closing taxes show on closing disclosure as a CREDIT to SELLER and DEBIT to BUYER GRM calculation - Answer- SP/Rent= GRM , Rent of new prop x GRM=New property SP accrued interest - Answer- SP-LA= AI special purpose, unique, or new properties are appraised by - Answer- the cost approach PMI is required of conventional loans greater than - Answer- 80% TRID - Answer- know before you owe RESPA - Answer- deals with settlement costs Primary mortgage market - Answer- where loans are made secondary mortgage market - Answer- where loans are bought and sold is appraisal ever an average - Answer- no, appraisal is weighing the options major players in secondary mortgage market: - Answer- Frannie Mae Ginnie Mae Freddie Mac is real estate long term investment or liquid - Answer- long term intermediation - Answer- process by which someone places their money with financial institutions in savings accounts and time accounts ex. direct deposit/ savings account lis pendens - Answer- legal action in foreclosure, junior liens - Answer- junior liens are not wiped out and the lender assumes responsibility for them what creates a voluntary lien on real property - Answer- mortgage or deed of trust mortgage contract - Answer- two party instrument where an owner pledges real property as security for the payment of a debt Shared appreciation mortgage - Answer- lender gives lower interest rate in return for share of appreciation package mortgage - Answer- secured by both real and personal property blanket mortgage - Answer- secured by more than one parcel of land open end mortgage - Answer- line of credit, i.e. HELOC SAFE Acr - Answer- requires licensing of mortgage, loan originators Truth in lending Act (Reg Z) - Answer- advertising sends disclosure in 3 days amount financed, finance charge, apr, total of all payments over term of loan wraparound mortgage - Answer- just like sublease and subject-to PMM - purchase money mortgage - Answer- seller financing bridge loan - Answer- short term loan conventional loan - Answer- loan without any government insurance or guarantee (if you put down 20%) required LTV is above 80% FHA - Answer- insures lenders against default does not loan money, buy loans, or set interest rates down payments as low as 3.5% charges UFMIP and mortgage insurance premiums VA loans - Answer- no down payment often guarantees up to 25% of loan amount for qualified veterans 100% LTV - no down payment straight mortgage - Answer- interest only payments until maturity FHA Loan 3.5% - Answer- LTV 96.5% equity - Answer- property value - outstanding debts hypothecation - Answer- using property as security for a loan discount point - Answer- lower interest rates permanently buydown - Answer- prepaying interest costs in return for lower rate in early years mortgage bankers - Answer- raise money in capital markets and make mortgage loans mortgage brokers - Answer- act as intermediaries PMM - Answer- where loans are made security deed - Answer- lien, legal title, non-judicial mortgage - Answer- lien, legal title, judicial trust - Answer- lien, legal title to trustee, nonjudicial loan qualifying - Answer- examining income, credit, & collateral to evaluate loan leverage - Answer- use of borrowed money to make an investment if balance due after foreclosure - Answer- deficiency judgment if permitted by state law otherwise, no recourse deed in lieu of foreclosure - Answer- defaulting borrower gives property to lender, avoiding foreclosure lenders might not accept, they must assume junior liens two primary financing documents - Answer- promissory note mortgage statute of limitations - Answer- set time limits for court actions statute of frauds - Answer- states which types of contracts must be in writing almost all real estate contracts must be in writing to be enforceable, EXCEPT leases for one year or less valid - Answer- has all essential elements and is enforceable void - Answer- lacks one or more of the elements voidable - Answer- appears valid, but can be voided