REAL ESTATE FUNDAMENTALS EXAM 2024-2025, Exams of Nursing

Download REAL ESTATE FUNDAMENTALS EXAM 2024-2025 and more Exams Nursing in PDF only on Docsity! 1 | P a g e REAL ESTATE FUNDAMENTALS EXAM 2024-2025 WITH ACTUAL CORRECT QUESTIONS AND VERIFIED DETAILED ANSWERS |FREQUENTLY TESTED QUESTIONS AND SOLUTIONS |ALREADY GRADED A+|NEWEST|GUARANTEED PASS |LATEST UPDATE This economic characteristic implies that the value of land, as an investment, is economically feasible over the long term: Permanence This economic characteristic fluctuates based upon the personal preference for one location over another: Situs Which of the following are the economic characteristics of land?" Limited Supply, Improvements, Permanence, Situs This is defined as land and whatever is permanently attached to the land by man: * Real Property This includes the definition of Real Estate, as well as the rights, benefits. and interests that an owner has: Real Estate 2 | P a g e A Real Property Owner's right to use and construct or improve their property as they see fit is referred to as what?* Enjoyment A Real Property Owner's right to keep others off of their property is referred to as what?* Exclusion Real Property in PA is conveyed using which of the following documents?* Agreement of sale This is the action by which an item of Personal Property is changed to Real Property as a result of permanent attachment to the land or building: whereas Real Property that is converted back to Personal Property is done so through the process of: * Annexation; Severance This is the legal outline in determining property ownership when disputes occur with regards to fixtures.* Contract, Intention, Annexation, Adaption This is a special fixture that is owned and installed by a business tenant into a Rental Unit as part of the business: Trade Fixture This is everything that is not attached to the land, not attached to the buildings, nor improvements on the land:* Chattels The transfer of ownership of Personal Property is accomplished by utilizing what contract? Bill of Sale An item of Personal Property that is changed into Residential Real Property is known as ___________. What would be an example of this?* Fixture; Chandelier This category of property includes a mobile home that is attached to the land with the vehicle registration cancelled; whereas, this category includes a mobile home that is not attached to the land with the vehicle registration still present.* Real Property; Personal Property This is an annual, seasonal crop, such as corn; which is considered to be Personal Property even though it is attached to the land.* Emblement 5 | P a g e Writ of execution given This is the federal law that requires specific statements and forms to be given to a consumer to advise them of the hazaards and their rights when dealing with lead based paint. Lead Based Paint Hazard Reduction Act A tasteless, colorless, odorless gas that occurs from the natural decay of minerals in the earth is refer to as what? Radon A tasteless, colorless, odorless gas that is created from the burning of fossil fuels is called what ? O Carbon Monoxide Monoxide Landfils are sometimes referred to as what? Waste Disposal Sites What 3 different categories are molds broken into? Pathogens, Toxins, Allergens This environmental hazard is commonly found when moisture in the home is above acceptable levels: O Mold An environmental hazard occurs when these begin to deteriorate and leak toxic substances into the soil and ground water: Underground Storage Tanks A colorless gas that is emitted from building materials including resins and adhesives is referred to as? Urea Formaldehyde When going through a home, Bob, a Real Estate Agent, tells his clients to look at the mold in the basement around the perimeter of the foundation. It is clearty visible despite there being no report of the hazard. Bob can legally inform his clients of the presence of mold in the home. False This is the Federal Agency in charge of environmental hazards: whereas, this is the State Agency that is in charge of environmental hazards: EPA: DEP This must be given to a prospective buyer prior to signing the agreement of sale with regards to purchasing a property. Seller's Property Disclosure A problem with a property that would have a sigrificant adverse impact on value or involves an unreasonable risk to people on the land is referred to as what? 6 | P a g e Material Defect A defect that is not discovered by any inspection but is known by the seller is referred to as what? Latent Defect This is a defect that occurs when something undesirable occurs to or on the property which causes social concern: stigmatized Property "The east half the northwest quarter, of the southeast quarter, of the northeast section 16. of a township in the second tier, north of the baseline, and four ranges west of the principal meridian." This is an example of what legal description? Rectangular Survey Method "Beginning at a point at a distance of 165 feet southwest of the westerly coner of Walnut street and first avenue, and proceeding west 50 degrees. 26 minutes, 15 seconds north, for a distance of 100 feet, then proceeding north 45 degrees. 2 minutes, 12 seconds for a distance of 300 ft"This is an example of what legal description? Metes and Bounds Method The most common legal description used in the eastern United States including Pennsylvania, is known as what? Metes and Bounds Method This legal description is used in the majority of the United States primariy the midwestem and western states rectangular Survey Method "Lot 17, of Block C. of the Plainfield Acres Subdivision, in Plainfield Township, recorded in plat book volume 94. page 2326" This is an example of what legal description?" Lot and Block Method Imaginary square tracks of land in the rectangular survey method are called? Townships The rectangular survey method contains townships and sections. What is the distance of each side of a township? 6 miles How many sections are in a township? 36 sections Garett owns one acre of land. How many square feet of property would he own? 7 | P a g e 43560 Square Feet The process by which the title and ownership interest reverts back to the grantor or remainderman is called: * Reversion How many acres are in a section? 640 acres Xiomara just ran 1 mile. How many feet did she run?* 5280 FT When the ownership interest ends immediately upon the occurrence or lack of occurrence of a designated event, it is called: Fee simple determinable When the ownership interest ends based upon the occurrence of a designated event, but the grantor must go to court to assert his rights, this is called: Fee simple subject to a condition subsequent When the ownership interest is based upon someone other than the life tenant, it is called; Life estate pur autre vie A designated future interest holder in a defeasible fee estate or a life estate is called: Remainderman This is the most common and preferred ownership interest which is also considered the highest and most complete form: Fee simple Mike sells his investment property to his ill Uncle Joe to help him move back to the area. Shayla, Joe's daughter, is the devisee nominated in the Joe's will as his caretaker for the rest of his remaining life and the administrator of his estate. Joe passes away and by reviewing his deed Shayla learns she has no ownership rights to her fathers house. Instead, Mike informs her he is now the owner, What type of Estate would this be? Ordinary Life Estate Mike sells his investment property to his ill Uncle Joe to help him move back to the area. Shayla, Joe's daughter, is the devisee nominated in the Joe's will as his caretaker for the rest of his remaining life and the administrator of his estate. Suddenly, Mike passes away in a car accident. Landon, Mike's Son, goes to Joe and informs him that he is no longer the owner of the property that he resides in. What type of estate would Joe have received when he bought the house from Mike? Life estate pur autre vie 10 | P a g e Dr. Gum wants to install brand new dental equipment in his practice. However, most of his equity is currently tied up in the building that he owns. What might be a feasible option for Dr. Gum in order to free up equity while not having to move his practice? Sale and Leaseback Xiomara receives an invoice in the mail for her commercial lease. On the invoice, there is a base fee of rent as well as a portion of property taxes, building insurance, and maintenance fees. In its basic form, what type of lease would this be? * Net Lease When title is held by one owner or entity, it is referred to as what? Severalty John wants to sell his portion of ownership interest in a lake house in which he is a tenant in common. What must he do before he sells his interest? Nothing, he can do what he wants with his share These are the four unities that must be present for joint tenancy to exist: Possession, Interest, Time, and Title To be considered tenants in common, ownership interests must be distributed how? unproportional shares distributed however owners see fit Pat and Carlton are tenants in common. Pat dies testate, and John is assigned as the devisee. Based upon this, who would Cartton own the property with? With John Under joint tenancy, how is ownership interest distributed? They must be equal to all parties Zack. Chris, Kenny, and Nate own a hunting cabin together as Joint Tenants, Nate dies, and his wife Patty is now in charge of his estate. Therefore, who would be the rightful owners of this hunting cabin? " Zack, Chris, and Kenny This causes a fractional ownership interest to be passed directly back to the other co-owners in a Joint Tenancy: Right of Survivorship This is the form of ownership that is given specifically to husband and wife?* Tenants by Entirety This is the legal filing by a co-owner in a joint tenancy when they want to sell the property but the other co-owners refuse to sell. 11 | P a g e Suit to Partition When taking possession as co-owners, it is legal for a Real Estate agent to advise a client on which type of ownership to choose. False (Not Legal) This is the only property that is not considered marital property: Gifts and Inheritance How is marital property separated during a divorce proceeding?* Equitable Distribution This right has an automatic guarantee when owning property as tenants by the entirety* Right of Survivorship Carrie owns a Time Share that she can use for the next 15 years. This would be what type of Time Share? Right to Use Time Share Carrie owns a Time Share that she can use indefinitely. This would be what type of Time Share? Fee Simple Time Share In the condominium form of ownership, one would receive a deed giving ownership and a share of Real Property, Common Elements These are elements that are owned by all owners but are used or accessed by only one specific owner? Limited Common Elements The central hallways, sidewalks, green space, and community pool in a condominium would be referred to as what? Common Elements Cooperative ownership is considered what type of property? Due to this relationship. what document would you receive at closing? Personal Property, Proprietary Lease This refers to an objective within the boundaries of he law:* Legality of Object What is the term for something of value being exchanged in a contract? Consideration According to the PA Rules and Regulations, when someone obtains any form of real estate license, all contracts they execute must be done in writing. What Statute requires this?* 12 | P a g e Statute of Frauds Jack, a local landlord, just orally agreed with his tenant to renew the current lease for an additional year. This would be the tenant's second year in the unit. According to the PA Landlord and Tenant Act, this would be considered a legal contract. * True Written o.n the agreement of sale is a closing date of Oct 14th. After having a discussion, you and the listing agent agree to push closing back to Oct 18th. On the 15th you receive a notification that you are in breach of your contract. What rule caused the written word to take precedence over your oral negotiation? Parole Evidence Rule A legal and enforceable contract is: Valid You just received an agreement of sale, and it was missing the specific identification of real property. Which contract category would this fall under? Voidable Grace is 16 and just received a large music endorsement contract. Per the law, this contract would be considered:* Voidable Both buyer and seller have agreed to the terms and conditions set forth in the contract and are 20 days away from closing. Based upon both parties performing what is necessary to buy and sell the property, respectively. what type of contract do they have? Bilateral Seth places an offer on a commercial building to open a new distillery. However, he places a period of due diligence in an option contract in order for him to ensure that he can acquire the appropriate liquor license to operate the business. Base ipon this information, what tupe of contract would he have with the seller? Unilateral Tom, a new salesperson, just had his first closing and turns his file into his brokerage's processor. This would be referred to as which type of contract? Executed Both buyer and seller have agreed to the terms and conditions set forth in the contract and are 20 days away from closing. Based on this information, what type of contract would they have during this phase prior to completion? Executory 15 | P a g e How would an unmarried couple take ownership to real property if they wanted full ownership immediately upon the death of the other co-owner? Joint tenancy. A person bought three lots for $22,000 net each and divided them into four lots of equal frontage. The lots were then sold for $18,000 each. What was the approximate percentage of gross profit? 9% In a trust, legal title to real property is transferred to a person to be held and managed by the person for the benefit of the: beneficiary. A person who purchases shares of stock in a corporation that owns a building and receives a proprietary lease to a specific unit within the building has purchased a: cooperative. Several persons own property as tenants in common. One of the owners dies and the heirs want to sell the property, whereas the other owners prefer to retain the property. If the parties cannot reach an agreement, which of the following actions would most likely be taken by the heirs who want to sell? File a partition action. The owner deeds a parcel of property to his daughter as a life estate. The life estate states that when the daughter dies, the ownership will transfer to her brother. Which of the following statements concerning the transaction is correct? The brother is the remainderman and will receive fee simple ownership. Under cooperative ownership the lease that grants occupancy of a specific unit to the stockholder is called a: proprietary lease. In Georgia, which of the following types of ownership is NOT recognized? Tenancy by entirety. In Georgia, developers of timeshare projects must provide a written statement containing information essential to prospective buyers and the buyer's right to rescind the contract. This information would be contained in the: public offering statement. It is good business practice to take the legal description from the seller's warranty deed when you get the listing. If the seller does not have a copy of his or her warranty deed, a copy may be found at the county courthouse. In locating a copy of the seller's deed in the record room of the courthouse your first point of reference would be the: grantor-grantee index. 16 | P a g e In Georgia, a married couple could hold title to real property together as: tenancy in common. In Georgia, which of the following is NOT required in a land description? Street address of property. A married couple wants to acquire ownership of property together without the right of survivorship. Which of the following forms of ownership would accomplish this? Tenancy in common. Which of the following is an example of a voluntary and specific lien on property? A mortgage lien A property owner has defaulted on his mortgage and the lender has filed a foreclosure action to have the property sold to satisfy the lien. If the property has several liens, which of the following would have first priority? An unrecorded real estate special assessment tax lien for $500 filed one year ago. An eighty-acre parcel of land was recently zoned single family residential with a minimum lot size of two acres. There is a deed restriction on the property restricting the use of the land to agricultural only. Can the developer use the property for residential use? No, because the deed restriction is still valid. Which statement about an encroachment is NOT true? An encroachment is usually revealed in the chain of title. An easement created by a court of law establishing an owner's right to ingress and egress their property would most likely be an easement: appurtenant created by necessity. The owner in a residential subdivision gets a building permit from the county to put a fence on his property. The fence is in violation of the subdivision's restrictions (CC&R). An adjoining neighbor in the subdivision objects to the fence. If the homeowner's association (HOA) fails to enforce the restrictions the neighbor's best action would be to: apply to the court for an injunction. Rules established by the local government to regulate building and construction standards are called: building codes. Which of the following statements best describes a lien on real property? A monetary encumbrance affecting title to the property. 17 | P a g e A property is encumbered by an easement to provide access to the property of another. Which of the following is NOT true of this easement? This is an appurtenant easement and would terminate upon property transfer. The priority of MOST liens on a property is based on: the date of recording. A property has a market value of $195,000 and is assessed at 50% of its market value. The tax rate is $52 per $1000 of the assessed rate. What is the real estate tax for this property? $5,070 We have an expert-written solution to this problem! Two mortgages and a judgment were filed against a property. The priority of the liens would be determined by the: recording dates. On January 10, a contractor started work on a new house. The work was completed on October 10. The general contractor was paid but a subcontractor for the general contractor was not paid. On December 1 the subcontractor filed a mechanics lien. What is the effective date of the mechanics lien? January 10. A painter did some work on an owner's house and was not paid. The owner also owned several other properties in the same neighborhood. The painter would most likely file a mechanic's lien against: the owner's property worked on by the painter. A property had a judgment filed against it. This was the result of a: lawsuit. An attachment lien would be placed on a property to: prevent the owner from conveying title to the property until a lawsuit is decided. A contractor hired by the property owner made improvements to the property. After the work was completed, the owner refused to pay the contractor for the work performed. The contractor should file a: notice of lien A deed restriction in a subdivision prohibits fences. The city where the subdivision is located allows fences. A homeowner plans to put up a fence. A neighbor objects to their plans. The neighbor should: 20 | P a g e Upon closing. A developer lists 20 properties with four different licensees. Each licensee has a display model at the development site. Which of the following is required at each of the display models? Each licensee must have a HUD FAIR HOUSING poster displayed with each display model. "For Sale" signs must be removed from the property no later than: ten days after the expiration of the listing. A licensee shall make a written disclosure to both the buyer and seller revealing the party or parties for whom that licensee's firm is acting as an agent and from whom that licensee's firm will receive any valuable consideration for its effort in the transaction. This disclosure must be made no later than: the time that any party first makes an offer. Licensees must keep true and correct copies of all sales contracts, closing statements and other documents related to real estate closings for a period of: three years. Which of the following statements regarding the federal Fair Housing Law is TRUE? It prohibits discrimination in the selling and renting of residential housing. Which of the following activities by a real estate brokerage firm would NOT be a violation of the Federal Fair Housing Law? The brokerage company has posted an "Equal Housing Opportunity" poster in their office. A property manager was showing property in a twenty-unit apartment complex to a prospective tenant in a wheelchair. The tenant wanted to rent a unit and make reasonable modifications to the premises, such as lowering all of the door handles. The landlord: must allow the tenant, at the tenant's expense, to make the modifications, but can require restoration of the property by the tenant. In Georgia, which of the following brokerage engagements must be in writing? All exclusive brokerage engagements. In Georgia, when a licensed firm is advertising a specific property or properties for sale, lease or exchange in any media, the advertisement must include the name of the firm that is registered with the Commission and the firm's: telephone number. A broker finds a buyer who is willing to enter into an option on a property for 90 days. The potential buyer pays $1,000 for the option right, which is acceptable to the property owner. Which of the following is TRUE? 21 | P a g e The sales commission is earned only if the option is exercised. An implied contract would arise from the: actions of the parties. A buyer and seller entered into a purchase and sale agreement on a property. At the time of the parties signing the contract, the: legal title remained with the seller and the buyer received equitable title. An option is an example of: a unilateral contract. A real estate sales agreement contains the language "time is of the essence." Such language in a contract most nearly means: the time limits stipulated in the contract require punctual performance. Which of the following is TRUE concerning conflicting wording in a contract? Handwritten controls typewritten which controls preprinted. When a buyer contracts to buy a parcel of real estate and the agreement includes the purchase of personal property, which of the following is TRUE? The personal property in a real estate contract is best transferred with a bill of sale. A buyer submits an offer to purchase contingent on the buyer's spouse approving the property within 48 hours. Which of the following statements is correct concerning this agreement? The contingency would have to be made on a separate amendment agreement. Novation is: The substitution of a party in a contract for another and release of the first party from further liability. A seller received a closing check for $210,150. The broker's commission was 5% and the closing costs paid by the seller amounted to $3,600. What was the selling price? $225,000. A property was listed for $220,000. The seller accepts an offer for $215,000 which included a $2,500 earnest money check. The sales price in the contract would be: $215,000. A buyer orders a termite inspection and termite damage to the structure is found. Who is responsible for correcting the existing damage? The party specified in the sales contract. 22 | P a g e An intoxicated buyer made an offer on a seller's property. The seller accepted the offer and communicated the acceptance to the buyer. This contract would be: voidable by the offeror. In a land contract (contract for deed), which of the following statements is correct? The seller retains legal title. Under the Electronic Signatures in Global and National Commerce Act (E-Sign), which of the following statements is correct? Contracts using e-mail have the same legal significance as those found on paper. A borrower is in default on their loan. Rather than experiencing the delay and expense of a foreclosure action, the lender agrees to release the mortgage so the property can be sold to a new purchaser. If the sale produces less money than is owed to the lender, the transaction would be referred to as a: short sale. An elderly mother has moved to a nursing home and wants her son to sell her home. To act as the agent of the mother, the son would need: A power of attorney signed by the mother. A prospective purchaser asked the seller to lease the house with an option to purchase. If the seller agrees to this type of arrangement, when should you prepare to write the required sales contract? At the same time you write the lease, attach a copy to the lease, consult with your broker, and have both contracts signed by the parties. A buyer made an offer on a seller's residential property. The offer included earnest money in the form of an antique clock valued at $3,000. The agent should: Advise the seller of the form and value of the earnest money being offered. Due to an ambiguity in the financing terms, the sellers failed to understand they will be carrying a second mortgage note for five years and wanted to cancel the contract. Might the court cancel the contract? Yes, if a contract contains any ambiguity the court will generally rule against the party who prepared it. A licensee is asked by a buyer to prepare a sales contract that will have no earnest money. According to the law and the rules of the Commission, can a licensee help negotiate a contract without earnest money? Yes, because neither the law nor the Real Estate Commission require the purchaser to pay earnest money. When an offer to purchase is made on a property on which a sales contract already exists, the licensee should be sure that the subsequent offer contains a contingency. If it does not, the licensee should: 25 | P a g e What is the difference between deed restriction and a restrictive covenant ? Restrictive covenants have time limits Why was asbestos created? for insulation and to strengthen other materials What is the most common source of carbon monoxide in a house? Malfunctioning furnaces What does LBPHRA stand for? Lead based paint hazard reduction act What are the main requirements of the LBPHRA? Sellers have to disclose known information on lead based paint and hazards before a lease can take affect. What are the main requirements of the LBPHRA? Licensees provide the buyers and lesses with protect your family from lead in your home pamphlet created by the EPA, HUD, and the U.S Consumer Product Safety Commission Where does radon come from? Decay of uranium and radium in rocks and soil What does strict liability mean? that the owner is responsible for the injured party without excuse What does the acronym SARA stand for? Scan, Analyze, Respond, Assess What is Picocuries? A measuring unit of radiation What is the definition of metes and bounds? That it begins and ends at the same point and that it uses feet, degrees, and monuments. What does lot & block method mean? That is starts with a plat of a division What direction does the principal meridian run? North and South What direction does base lines run? 26 | P a g e east and west how are principal meridians and base lines set up? Each meridian has a name or number and is crossed by a base line How many principals meridians are in the United States? 37 How many sf (square feet) in an acre? 43,560 sf What is a datum used for? Elevations as in a hi-rise condo What are air lots? composed of the airspace within specific boundaries located over a parcel of land What is eminent domain? the right of the government to acquire privately owned real estate for public use What is condemnation? the process of eminent domain. the way the gov exercises the rights, either judicial or administrative proceedings When does escheat occur? When a property owner dies without a will in place and no heirs or creditors can be found Where is property escheat to when an older passes with no will or heirs to leave it to? the state of pa. But in some states the property must be escheat to the county where the land is located What is fee simple? The highest interest in real estate recognized by law Name one of absolute control: Fee simple estate What is the definition of Pur Autr Vie? What is the purpose of life estate Pur Autre Vie? To provide inheritance by the life tenants heirs only until the death of the 3rd party. Often created for one who is physically or mentally incapacitated in the hope of providing incentive for someone to care for them What is the meaning of reversionary interest? 27 | P a g e That the creator of a life estate may choose not to name a remainderman. whereas that case ownsership is said to revert back to its original owner upon the end of the life estate. What must a fee simple owner who creates a life estate do? Plan for its future ownership. When the life estate ends, it is replaced by a fee simple estate What is the meaning of the remainderman? That the creater of the life estate may name a remainderman as the person whom the property will pass to when the estate ends. What is easement? a right to use someone else's land without owning or leasing it What is party wall? An exterior wall that either straddles the boundary line between two lots or shared partition wall between two connected properties What is encroachment? the legal extension of a building or fence that extends beyond the land of the owner How is encroachment identified? A physical inspection or a spot survey What is Riparian Rights? common law rights granted to landowners whose land abuts a natural flowing body of water, such as a river or stream What are the unities of a joint tenancy? unity of possession What is joint tenancy? the right of survivorship What are the unities of a joint tenancy? unity of interest What are the unities of a joint tenancy? unity of time What are the unities of a joint tenancy? unity of title What is tenancy by the entirety? 30 | P a g e What are elements to a deed? any relevant exceptions or reservations What are elements to a deed? signature of the grantor, which must be acknowledged(notarized) What are the 2 sets of intersecting lines in the rectangular survey system Principal meridians and base lines. What are elements to a deed? delivery of the deed and acceptance by the grantee to pass title What is a habendum clause? Describes the interest conveyed by the deed, for example, fee simple or life estate. What is the time period covered by special warranty deed? The time that the seller owns a property What deed offers the least protection for the grantee of any deed Quitclaim deed Who is responsible for paying PA transfer tax? PA transfer tax is traditionally split between buyer and seller What is a constructive notice? The legal presumption that information is available and can be obtained by an individual through deligent inquiry What serves as constructive notice? Properly recording documents in the public record What is chain of title? a record of a property's owners over a period of time What is needed if ownership can not be traced due to a break in chain of title? A court action called a suit to quiet title What is abstract of title? Is a summary report of what the title search found in the public record Who prepares an abstract of title? An abstractor 31 | P a g e What is an attorney's attorney's opinion of title? A written report prepared by an attorney about the condition of the ownership What is reported to the policy holder along with other insured defects? items included in the title insurance, including government restrictions What is required if you are financing? Title insurance What indemnifies the buyer against any previous claims of ownership? Title insurance What is a bilateral contract? promise for a promise; contract is formed when promises are exchanged What is an executed contract? a contract where all parties have fulfilled their promises and thus the contract has been performed What is an executory contract? exists when one or both parties still have some act to perform How does an agreement of sale meet the definition of an executory contract? In an agreement to sale, ownership has not yet changed hands, and the seller has not received the full sales price ( still having acts to perform) What can make a contract voidable? if the person who has the option to disaffirm the agreement does not do so within the time prescribed by law What can make a contract voidable? a contract with a minor What can make a contract voidable? A contract entered by a person with a mental illness during and for a reasonable time after person is cured. What can make a contract voidable? Contracts made under duress, with mirepresentation, under the influence, or with intent to defraud What is an unenforceable contract? An invalid contract that legal action can not be taken because statue of frauds requires contracts for the conveyance of real estate be in writing 32 | P a g e What is an example of an uneforceable contract? An oral contract An essential element of a valid contract? offer and acceptance What can make a contract voidable? Consideration What can make a contract voidable? legally competent parties What can make a contract voidable? consent What can make a contract voidable? legal purpose What is the purpose of statute of frauds? it provides written evidence of each party's responsibilities and minimizes the likelihood of controversies What relieves a buyer of any responsibility? A counteroffer What is the meaning of time is of the essence? That the contract must be performed within a specific time. What is suit for specific performance? When a buyer asks the courts to force the seller to go through with the sale and convey the property as previously agreed. Buyer can also sue for damages which is any costs/hardships suffered by the buyer as result of the breach What is the purpose of Fannie Mae (FNMA)? To provide a secondary market for mortgage loans. specializes in FHA and VA loans What is a financial promise to repay the loan? A promissary note What is a security instrument? Note What is a mortgagor? 35 | P a g e Encroachment What is estate where the tenant once had legal possession of the property, but now resides there illegally? Tenancy at sufferance The right acquired by one post to use the land of another for a special purpose is? Easement What is also called a lease from year to year, it continues for an indefinite period due to renewals Periodic estate What is the inherent right of owners of land bounding a river, stream, or small lake? Riparian rights Where a government body uses the process of condemnation to take possession of privately owned property for public use? Eminent domain Leasehold estate for a DEFINITE period of time with no automatic renewal Tenancy for years What is the highest type of interest in real estate recognized by law? fee simple estate What is the inherent rights of owners of property that borders navigable lakes or oceans? An estate for an indefinite period of time with the consent of the landlord Tenancy at will A deed that carries warranties only for the time period in which the grantor has owned the property Special warranty deed Having died without the presence of a will Intestate What deed offers the MOST protection to the buyer. It comes with warranties dating back to the origins of the property? General warranty deed A form of involuntary transfer of title created when a person uses a property for a prescribed period and can then claim ownership? Adverse possession 36 | P a g e What deed doesn't usually convey title. It is usually used to convey any interests that the grantor may have in the real estate Quitclaim deed A condensed or brief history of the instruments appearing in the county records that affect the title to real estate in question? Abstract of title What is the record of a property's ownership over a period of time? Chain of title What is the legal action taken to remove a "cloud" on a title Suit to quiet title A policy under which the policy holder is protected from losses arising from defects in the title Title insurance Knowledge that can be obtained by inspection and search of records? Constructive notice After closing, the lender placed a document in the public records for security for money loaned to buy a property. What is that document? A deed Which of the following is true about limited and general partnerships? If the use of a property was lawfully used as a service station but then the use changed to residential zoning for the local area, the service station is now considered a/an? What is unique about a spot survey? It shows both the measurements around a lot and the location of the improvement The law that requires a contract for the sale of real estate to be in writing to be enforceable is the? Statute of frauds The use of baselines and principle meridians are referenced in which legal description? Rectangular survey A recorded subdivision plat is used in the? lot and block system A gathering of documents pertaining to the history of all conveyances and legal proceedings affecting a specific parcel of real estate is called 37 | P a g e An agreement of sale is considered executory when? A person who has absolute control of a parcel of land is said to own a: fee simple estate A deficiency judgement can take place when A foreclosure sale does not produce funds to pay mortgage debt or not enough taxes have been payed The presence of an encroachment can be identified by a: Survey What is required by a legal deed in pa? A grantor's signature What happens with amortization? Principle increases, interest decreases The state exercises its rights of escheat when? the owner dies intestate and without heirs What are brokers responsible for? Supervising all real estate activities performed by salespeople in their offices. What is a real estate brokerage? The act of bringing people together who wish to buy, sell, exchange, or lease real estate and charging a fee or commission What does federal and state antitrust laws prohibit brokers from? Conspiring to fix prices, engaging in boycotts, allocating customers or markers, or establishing tie-in agreements. Who is the National Do Not Call Registry regulated by? The federal trade commission Licensees who are paid in a lump sum and who are personally responsible for paying their own taxes are probably? independent contractors A licensed real estate salesperson entered a written contract with a broker, specifying that the salesperson is not an employee. In the past year, just less than half of the salesperson's income from RE transactions came from commission. The remainder was based on an hourly wage paid by the broker. Using these facts, it is likely that the IRS would classify the salesperson as what for fed income tax purposes?