Real Estate Exam3 Preparation - National Portion

These flashcards cover key concepts and facts related to real estate laws, leases, loans, and related terminology that are essential for the national portion of the real estate exam.

What does a net lease typically require the tenant to pay?

Rent plus operating expenses

Which lease is most common for residential property?

Gross lease

What is a lease that continues indefinitely until terminated?

Periodic tenancy

What is it called when a tenant stays after lease expiration without consent?

Tenancy at sufferance

Who is responsible for ordinary wear and tear?

Landlord

What notice is required to terminate a month-to-month tenancy?

One rental period notice

What is the purpose of a security deposit?

To cover tenant damages beyond normal wear

How are property management fees typically based?

Gross rent collected

When must trust funds be deposited?

Within three business days

What is the duty of a property manager?

Set market rent

To whom do fair housing laws apply?

Both sales and rentals

Which person is exempt from the Fair Housing Act?

Owner with a four-unit property

Which is NOT a federally protected class?

Sexual orientation

What may advertising 'ideal for singles' violate?

Fair Housing Act

Refusing to show homes based on family status is considered what?

Illegal

A lender denying credit due to race violates which law?

ECOA

Which document discloses loan costs?

Loan Estimate

What does APR reflect?

Total loan cost

What is the purpose of discount points?

To reduce the interest rate

What does one point equal?

1% of the loan

Which loans are insured by HUD?

FHA loans

Which loans allow no down payment?

VA loans

At what LTV percentage is PMI required?

When LTV exceeds 80%.

What characterizes balloon loans?

Large final payment

What is a promissory note?

Promise to repay

Which appraisal approach uses income?

Income approach

What does the capitalization rate equal?

NOI ÷ Price

What causes economic obsolescence?

External factors

What does replacement cost refer to?

Modern materials

What does a general warranty deed include?

Full warranties

What does a quitclaim deed transfer?

Whatever interest the grantor has

What does a title search examine?

Public records

What does marketable title mean?

Free of major defects

What is a cloud on title?

Lien or claim

Who signs escrow instructions?

Both buyer and seller

What does proration adjust?

Prepaid expenses

What does recording protect against?

Fraud

How are commission disputes usually handled?

MLS arbitration

What does a listing agreement create?

Agency

What does an exclusive-right-to-sell listing give to the broker?

Commission if anyone sells

What do open listings allow?

Multiple brokers

How is a broker’s compensation determined?

By agreement

What equals net operating income?

Gross rent minus expenses

What does GRM stand for?

Gross Rent Multiplier

What does a comparative market analysis use?

Comparable sales

Which is NOT required for closing?

Moving contract

When does title usually transfer?

At recording