All quizzes

CERCLA stands for

Comprehensive Environmental Response Compensation and Liability Act.

The concurrency requirement of the Florida Growth Management Act provides

that all building plans must include services such as roads to be in place before a building permit for building houses is issued.

The National Flood Insurance Program is in place to

provide for losses against flooding.

Mr. Jones bought a home from Mrs. Smith. The covenants and restrictions of the subdivision state that no vehicles can be parked on the grass; that the vehicle must be parked on a paved surface. Mr. Jones buys an RV and wants to put it beside the garage on an unpaved part of the yard. He calls the city and finds that the city does not have any restrictions on this. Mr. White, his neighbor, objects to the RV being parked beside the garage. Can Mr. White do anything about this?

Yes. Mr. White can appeal to the court to enforce the subdivision restriction.

The old tire factory has been manufacturing tires for 50 years. It has been grandfathered into the zoning since it was still producing jobs as well as tires. The current zoning is agricultural. The tire business shut down last January, and the building burned to the ground last Saturday night. What can the owners of the property do?

The owners cannot rebuild the plant, and they must sell the property as agricultural.

A shopping mall located in a community where customers would be drawn from outside the community would be a

development of regional impact.

The purpose of zoning is

to provide for the health and safety of the community.

Commercial zoning is based on

intensity issues.

The members of the local planning board are

volunteers in the community who are untrained in zoning.

How do PUDs differ from condominiums?

PUD owners do not have any interest or ownership in the common ground as condominium owners do.

Jack wants to build a business with a 42-foot sign on the top of his building. He believes that the sign will generate a lot of business. The city has an ordinance that limits the size of the sign to 30 feet and requires that it be on a signpost, independent of other structures. Jack's attorney tells Jack he had better check with the city before he builds anything. What can Jack do about the sign issue?

Jack can apply to the zoning commission for a variance.

A salesperson finds out the home he has listed was once used as a meth lab. In this circumstance, he should

check to see if a local ordinance requires a disclosure.

Florida’s Coastal Construction Control Act does NOT require

Setback requirements for modification

A builder has a 100-acre plot of ground. He sets aside 20% for a school and playground; 15% for roads, drainage ditches, and sidewalks; and 15% for a strip shopping area with parking and buffer. He plans to build three houses per acre. How many homes can be built on this property?

173 homes

The city wants to pave the road in front of Sam Smith's house. Sam has 110 front feet. The cost to pave is $35 a linear foot, and the city will pay 25% of the paving. What is Sam's cost?

$1,443.75

What is boot?

The amount of money or personal property is given with an exchanged property

Susan and John sold the home they had lived in for 18 months. They had previously sold another house in New York, where they had lived for 15 years. They decided to move into an apartment and sell the house because the view is better. They are filing jointly as a married couple, and they sell the property for $500,000. Will they owe any capital gain on the property?

Yes. Because they have not lived in this home for two of the last five years, they do not meet the exemption requirements.

Paul Smith is not happy with the appraised value of his home. He appealed to the County Appraiser's office and was turned down. He has also been turned down by the Value Adjustment Board. What can he do next?

He can appeal to the district court in a Certiorari hearing.

The meaning of exempt property in Florida is

the property is taxed, but the owner is exempt from paying it.

Homestead fraud

can result in a 50% penalty for the amount taken.

Tom sold his home for $140,000, paying a 7% real estate commission. He bought the home for $45,000, paid $2,000 in closing costs, and added a new fireplace and family room for $35,000. After figuring the adjusted basis for this home, what is the amount of taxable gain?

$48,200

Mr. Smith likes to pay his taxes quarterly instead of once a year. If the assessed value on his home is $80,000 and the rate is 3.50 mills, what is his quarterly tax?

$70

How much is the total Homestead Exemption for a person who is 65 years of age whose household income does not exceed $20,000?

$100,000

What is the difference between installment sales and like-kind exchanges?

Installment sales collect payments over a number of years; like-kind exchanges have cash as boot.

What is the purpose of the "Save Our Homes" Amendment?

It provides a restricted rate increase on the assessed value of the property

The purpose of the Florida Green Belt Law is

to protect agricultural land from high taxes.

"Trim" means

Truth in Millage.

Accrual accounting is where

future income and future debts are shown as they are received and invoiced.

The percentage which expresses the amount of risk that an investor is willing to make is called the

cap rate.

What is an income tax term meaning an investment that will reduce or shield other money from income tax?

Tax shelter

When an investor was analyzing the risks in a property, he was considering an 8% return on his investment compared to a 10% return. In terms of the purchase price, what will happen?

The higher the risk, the lower the purchase price.

When an investor uses borrowed money to purchase a piece of investment property, he or she is taking advantage of

leverage.

The term "NOI" MOST NEARLY means

the amount of money left after the vacancy rate and operating expenses are deducted.

An investor was looking at a sixteen-unit apartment building. Four of the units rented for $600, four for $750, four for $725, and four for $800 per month. The building had monthly expenses of $1200. If the investor wants an 8% rate of return, how much should he pay for the building?

$1,545,000

Which is NOT an advantage of investing in real estate?

Lack of liquidity

In analyzing the value of a business, the method that is used to determine the value if the business were to bankrupt is called

liquidation approach.

An example of an "intangible" asset for a business would be

the reputation or goodwill of the business.

When a business has been in operation for a long time, what type of value does it have?

Going concern value

The gross rent multiplier uses

sale price and monthly rental rates.

The first step in an appraisal is to

define the problem.

External obsolescence in a property is generally

a type of depreciation that is incurable.

Which principle is the sales approach based on?

Substitution

Market value is defined by all EXCEPT

the consideration of the price for which the property was last sold.

When an appraiser uses the phrase "effective age," he or she is referring to

the age of the property based on its condition.

The two distinct boards of TAF are

Appraisal Qualification Board, Appraisal Standards Board.

Which BEST describes the principle that a home maintains its highest value by being in a neighborhood with similar-type housing?

Conformity

Peeling paint on a home is an example of

physical deterioration.

The decision to convert a two-family residential home into a commercial office, housing a real estate firm and an insurance company is an example of what appraisal principle?

Highest and best use

A property valuation provided by a real estate licensee to a lending institution for distressed properties on the market is a

broker’s price opinion.

Government interference influences the real estate market. Which is NOT government interference?

Deeds

The principle of property being nonhomogeneous means

no two properties are the same.

Karen has always wanted a home near the ocean. She recently received an inheritance that would help her purchase the house she's always wanted down the street. This is an example of

demand.

A seller's market occurs when

not enough inventory is available for buyers.

The MOST important understanding of the vacancy rate is

to indicate how much movement there is in the market.

A large factory closed in the area. Many workers lost their jobs as a result. This will probably result in a

buyer's market.

Demand may be influenced by

the ability of a buyer to get a loan.

A builder is looking to develop an area of several acres. Concrete in the area is hard to get due to a large complex being built down the street. He is being affected by

supply.

Which of the following is NOT a demand factor?

Availability of skilled workers

Key indicators of a change in the market could be

a change in the sales volume.

Real estate investment can be considered to be

a relatively long-term investment.

Rich and Merle purchase a property for 275,000. They obtain a new 75% loan from the ABC Lending Company. How much was their loan, and how would it appear on their settlement statement?

$206,250; credit the buyer.

Annual property taxes are $1,485 for a July 31 closing. Compute the tax proration and show how the proration will appear on the settlement statement. The day of closing belongs to the buyer, and taxes are paid in arrears. Use the 365-day method for prorating and round the daily property tax to two decimals.

Debit seller $858.77, Credit buyer $858.77

A property sold for $198,000 with a listing commission of 8%, the selling office is to receive 40% of the total commission. How much will the listing salesperson receive if she is paid 60% of the amount retained by the listing broker?

$5,702.40

A seller netted $55,000 at closing. If the seller paid costs of $1000 and an 8.5% commission, what was the sale price to the nearest dollar?

$61,202

A house sold for $165,000 and the total commission received by the broker was $13,200. What was the rate of commission?

8%

Which of the following statements best describe the purpose of a Closing Disclosure?

An official settlement statement used by settlement agents and title companies to itemize all charges for a borrower and seller

In Florida, the deed of the property is taxed based upon the

sale price.

A 15-acre plot of land sold for $3000 an acre. What is the cost of the deed stamp tax on this property?

$315

A borrower received an 80% conventional loan and paid two discount points. If the points totaled $1,500, what was the sale price?

$93,750

A seller listed a property for $96,000. The property sold for $94,000. How would the purchase price appear on a full settlement statement?

Credit the seller $94,000 and debit the buyer $94,000.

What kind of a loan would be fully paid out over the life of the loan?

Fully amortized

A veteran had a VA loan using his full entitlement. He allows another veteran to assume the loan without VA approval. Could he immediately get another VA loan?

No. He is still liable for the loan.

The basic difference between an FHA and a VA loan is

FHA insures loans, VA guarantees them.

Final payment of a mortgage loan that is considerably larger than the other monthly payments because the loan was not fully amortized describes a(n)

balloon mortgage.

A man had a loan for $60,000, and he had to pay 2.5 points. How much would he have to pay in cash?

$1,500

A lender generally charges discount points on an FHA loan to

provide greater interest yield to the investor.

A developer would MOST LIKELY obtain which type of mortgage on a new subdivision?

Blanket mortgage

For a veteran to obtain a VA loan, the VA must issue a certificate of

eligibility.

In making a home mortgage loan, a lender would consider all EXCEPT

financial need of the borrower.

.___________________________ ensures that all consumers are given an equal chance to obtain credit. This doesn’t mean all consumers who apply for credit get it; factors such as income, expenses, debt, and credit history are considerations for creditworthiness.

The Equal Credit Opportunity Act (ECOA)

__________ mission is to increase homeownership, support community development, and increase access to affordable housing free from discrimination.

HUD's

Which agency administers RESPA?

Consumer Financial Protection Bureau (CFPB)

An FHA mortgage is obtained through

any qualified lending institution.

Buyer Carr went to get an FHA loan because rates were significantly below the current market rate for conventional loans. The loan requires 3 discount points because it is below market rates. Which BEST describes this situation?

Points can be charged to either the buyer or seller.

_________________ was created to stabilize the nation's mortgage markets and expand opportunities for homeownership and affordable rental housing.

The Department of Housing and Urban Development (HUD)

According to the TRID rule, lenders must give a copy of which booklet to every person at the time of application for a loan?

Your home loan toolkit

Which is NOT an agency that deals (buys loans) in the secondary market?

Federal Housing Administration

Which mortgage allows a person to buy a home with no money down?

VA

_______________ guaranty allows mortgage lenders to obtain a better price for their mortgage loans in the secondary market. The lenders can then use the proceeds to make new mortgage loans available.

Government National Mortgage Association (GNMA)

Which of these organizations public mission and defining goal is to help more families achieve the American Dream of homeownership?

Federal National Mortgage Association.

The VA benefit from the Department of Veteran's Affairs for a veteran approved home loan guarantees that

the loan, or a portion of it, made by an approved lending institution will be paid.

The primary distinction between the primary and secondary mortgage market is what?

The secondary market is fundamentally a holding or warehousing process.

Which law requires lenders to disclose to buyers the true cost of obtaining credit so that the borrower can compare the costs of various lenders?

TIL

The amount of a loan expressed as a percentage of the value of the real estate offered as security is the

loan to value ratio.

A clause in a mortgage releasing the indebtedness once the loan is paid off is

defeasance.

Ronald defaulted on his home mortgage payments. The lender obtained a court order to foreclose on the property. At the foreclosure sale, Ronald's house sold for $29,000, and the unpaid balance of his loan is $40,000. What must the lender do to recover the $11,000 Ronald still owes?

Seek a deficiency judgment.

Which BEST describes an owner's equity in the property?

The value over and above the outstanding mortgage balance

A mortgage which is subordinate to another mortgage is called a

junior mortgage.

Which form of financing would be the greatest risk to the buyer?

Installment land contract mortgage

When the borrower's mortgage is more than the market value of a home, and they MUST sell the home, a/an ___________ might be negotiated with the bank.

short sale