real estate national exam prep

the action by which a tenant may properly abandon a premises that has become unusable due to a landlords neglect is

constructive eviction

sheila refinanced a rental property and used the proceeds to buy two additional rental properties. this method of increasing holdings is called

pyramiding

a restriction in a sellers deed can be enforced by

court injunction

liability under the superfund is all of the following

strict, joint and several, and retroactive

the federal reserve bank establishes the

discount rate

the beneficiary of a land trust is also commonly

the trustor

a person who has complete control of a parcel of real estate is said to own a

fee simple estate

Steve and Megan are both licensed brokers in any town, USA. over lunch one day, Steve asks Mary: how much commission spilt do you give your agents? if Mary answers this

she is in violation of antitrust laws

which is true of Brownfields Legislation?

it protects innocent developers

the least specific way to identify real estate is

street address

Local government deal with land use, housing needs and utilities under which of the following?

Master pal

the fair housing amendment act of 1988 added disability and ___ to the list of protected classes

familial status

Brownfields Legislation was passed to protect

Innocent developers

the amount a property will bring into the open market is called

market price

not included in a management agreement

restrictions regarding ages of children

the national flood insurance act of 1968 is administered by

FEMA

a decedent left a will giving his neighbor the right to use a well on the decedents land as long as the neighbor lived. the neighbors interest in the property is properly called

easement in gross

the state needed part of Jacobs property to build a new highway. before the taking, Jacobs property was worth 400,000. after the taking, it was worth 350,000. Jacobs compensation can be determined by

the before and after method

a contract can be terminated by

operation of law, mutual assent, rescission

the spaces in section 1100 of the uniform settlement statement are for

title changes

if a property's annual net income is $24,000 and its valued at $300,000, what is the cap rate

8%

not treated as personal property

fructus naturales

when land is taken by eminent domain, the owner must be giving just or fair compensation. this is mandated by which amendment to the US constitution

5th

three years ago Mrs. Henderson moved from the house she had owned for 20 years, but did not sell it. she decided to travel and bought and mobile home to live in. she now sells the house for $325,000. how much of her capital gain on the house will be taxable?

none of it, if it is less than $500,000

the current term for straight line depreciation for commercial properties is

39 years

salesperson Norman wants to be classified as a qualified real estate agents equivalent of holding independent contractor status. not a requirement for him to meet

be free from supervision by his broker and office manager

an estimate of the quality, quantity of value of something is also know as an

appraisal

a REMIC has which of the following complex requirements

qualification, transfer, liquidation

a lead based paint disclosure form much be attached to all sales contracts involving which of the following properties built before 1978

residental

a rental propertu generates $50k in rent, 10k in operating expenses and 35k in debt service. the property appreciates about 25k per year. what is the cash flow on the property?

5k

survivorship allows a person to take title to a property without

going through probate

Jeremy has the rights of possession and use of his property. under his mortgage agreement, if he defaults, the mortgagee is entitled to immediate possession. Jeremy lived in what kind of state

a title theory state

under the terms of a net lease, a commercial tenant would not be directly responsible for property expenses

mortgage debt service

a multi-unit residential building in which individual units are owned in fee simple, plus an undivided joint interest in the common elements is called

condomininum

peter wants to buy his first home but doesn't know how much he can afford to pay. he has a gross monthly income of 3k. according to the traditional lenders rule of thumb formula, what is the total housing expense (principal, interest, taxes, and insurance) peter can bear?

$840

a basic form policy would not cover

damage from falling objects

this principle states that the maximum value of a property tends to be set by how much it would be to purchase an equally desirable property

subsitution

if the contingencies in a contract are not met, the contract is

voidable

special warranty deed includes

title

real estate taxes and special assessments are paid before other types pf liens. this means these types of liens have

priority

the landlord of an apartment building neglected to repair the buildings plumbing system. as a result, the apartments did not receive water, as provided by the leases. if a tenants unit becomes uninhabitable, which would likely result?

claim of constructive eviction

what is an example of a unilateral contract

option

what is traditionally covered by a standard title insurance policy

improperly delivered deeds

the federal housing act does not prohibit discrimination on the basis of

sexual orientation

the end of metes and bounds land description is always a

point of beginning

holders of residual interest in a REMIC receive distributions, if any, in what way?

pro-rata basis

a buyer has signed an agreement with a broker to compensate the broker even if the buyer purchases the property from a relative. this is called a

exclusive buyer agency agreement

in a gross lease, the landlord typically pays

expenses of ownership

under the uniform vendor and purchaser act, which party bears the risk of loss if the property is destroyed during the contractual period?

seller

the economic age-life method is also known as the

straight-line method

allows a law enforcement office to seize debtors property

writ of attachment

in an exchange, the owner might receive profits in the form of additional capital or property. this is what

boot

joseph buys a property that is landlocked, so he has no means of ingress or egress. joseph therefore has the right to enter his property over his neighbors property under this type of easement

easement by necessity

this process of dividing costs attributable to building by the number of years of projected life is called

straight-line depreciation

a seller rents of 900 per month, due on Aug. 1. if the closing is on Aug. 15 and rents are prorated, and the closing date is an expense of the seller, how much does the seller owe the buyer?

$450

in a net lease, the tenant typically pays:

some expenses

RESPA prohibits

kickbacks

Fannie Mae deals in which type of loan

FHA, VA, Conventional

first to record is first in right is another way of saying

prority

when appraising an apartment building, which approach is used

income approach

Richard added a private bowling alley to his mansion at at cost of 100k. when he lists the property for sale, he wants to add the cost dollar for dollar to the list price. the appraiser has to assess the value pf this addition to the whole under what principle

contribution

Mary finds out that there is a defect in her title from her original closing because her name was misspelled. in order to cure this defect, Mary should ask for what type of deed

Quitclaim

tax credits are available to investors for

historic properties, low-income housing, renovation of older building

the easiest way to determine if an item is personality of realty is to determine

if its removal would cause damage

real property does not include

annual plantings

carol and her husband bought their house in 1968 for 25k and have lived in it ever since. today, the neighborhood has become fashionable, and they sell the house for 450k. how much of the gain is taxable on the couples joint return this year?

None of it

a landfill disposal site should be

lined, capped, and vented

owners can avoid probate by setting up which of the following types of trusts?

a living trust

many states determine the order of water rights according to which users of the water hold recorded beneficial use permits. this allocation of water right is controlled by

the doctrine of prior appropriation

a person who is represented by a buyer's agent is called the buyer's agent's "client." A person who is not represented by the buyer's agent, such as a seller who is represented by another licensed agent, is called a

Customer

a tenancy in which the tenant continues to retain possession of the property after the lease has expired, without the landlords permission, is a

tenancy at sufferance

Kim and Lisa enter into a contract for Kim to buy Lisa's home. After the terms have been agreed upon, Lisa asks Kim to leave certain additional items and the parties agree but do not alter any of the terms of the original agreement. This is change is called

an addendum

if an agent tries to represent both the buyer and seller without full and complete disclosure, this is called

Undisclosed dual agency

a contact for deed is an example of

seller financing

fiduciary lenders do NOT include

Insurance companies

cashflow is defined as

the total amount of expendable income after expenses

the main purpose of police power is to

ensure health, safety, and welfare of the community

the most probable price a property would bring in an arm's length transaction in an open market is

market value

the Uniform Settlement Statement required by RESPA is also known as

HUD-1

when rent does not cover property expenses, the following occurs

negative cash flow

the REIT does not have to pay corporate income tax as long as ___ percent of its income is distributed to its shareholders

90%