Details Title: final exam - 2 Description: n/a Total Flash Cards: 100 Created: 12/04/2008 22:23:28		New Users: To study from this flashcard set, or to create your own your own study flash cards, REGISTER HERE. Existing Users: CLICK HERE. Additional Finance Flashcards
Cards in this set: Term assume a mortgaged property is leased. because of default in payment, the mortgagee forecloses on the mortgage. which of the following statements is true regarding rights under the lease Definition the lease may be terminated by the mortgagee but may not by the lessee Term which of the following statements about types of leases is true Definition a shopping center lease is often a percentage lease Term when leased premises reach a physcial condition whereby the tenant is unable to occupy them for the purpose intended, the situation is legally recognized as a Definition constructive eviction Term you can be most assured that you are getting fee simple ownership in which of the following cases Definition if the owner can furnish title insurance Term all of the following are required for a valid bill of sale except Definition date of transacion Term when a person dies testate, his real property: Definition passses by devise Term if an area is rezoned industrial and a commercial establisment is given permission to continue its operation in that area, this is an exmaple of which of the following Definition nonconforming use Term a condo apartment owner can avoid payment of her share of the common expense by doing which of the following Definition payment cannot be avoided Term the economic life of a building has come to an end when Definition the value of the land and the building equals the value of the land only Term a capitalization rate incorporates return on: Definition land and building and recapture of building Term which of the following can be said of real estate appraisers in federally related loan transactions Definition they need to be state licensed or certified Term which of the following parties to a real estate sales transaction would have the most exposure to liability Definition grantor selling subject to the loan Term a mortgage banker can do all of the following except Definition prepare an appraisal for a fee Term a veteran seekin a VA Loan to purchase a three family structure must Definition occupy one of the units Term the VA Definition gurantees loans to elibible veterans Term which of the following is an element peculiar to the sale and leaseback transaction Definition the property is sold on condition that the new owner lease is back to the seller at the time title passes Term a buyer wants to take out an FHA loan. the borker should refer the buyer directly to Definition a lending institution such as bank or savings and loan association Term the ferderal national mortgage association can do all of the following except Definition originate federal loans Term the truth in law is desgined to do which of the following Definition disclose the cost of borrowing Term all of the following are true about condos except Definition each owner has a proprietary lease with the association covering the unit Term harry owns blackacre and mary the right to use his driveway to reach her garage. what is mary's interest called Definition easement Term how many acres are in a description reading "the NW/4 of the SE/4 and the S/2 of the SW/4 of the NE/4 of Section 4 Definition 60 acres Term all of the following are false regarding a community property state except Definition the property that a person accumulated prior to the marriage is separate property Term the cost approach would most likely be used to appraise a Definition house of worship Term cal, a licensed real estate broker, obtained an exclusive agency listing from Sam. cal would not be entitled to a commission if Definition the seller sold the property to a neighbor across the street Term which of the following is not associated with fee simple absolute ownership Definition the right of reentry can only be aquired by an heir Term depreciation is said to be incurable if it Definition is not econonmically feasible to correct Term a structure with outdated electrical wiring is suffering from Definition functional obsolescence Term a real estate listing contract is created when it has been signed by which of the following parties Definition broker and seller Term teri just closed on whiteacre, when she records the special warranty deed with the county recorder, she is giving Definition constructive notice Term the major difference between a latent defect and a patent defect is that a Definition latent defect is a hidden defect while a patent defect is found by inpection Term sally, paul, and jerry are joint tenants of blueacre. sally sells here interest to joyce. ownership is now held by Definition joyce is a tenant in common w/ paul and jerry who are tenants in common with each other Term jeff wants to be able to sell his home without paying a commission to schoundrel realty. he does however want schoudrel to be the only company he is working with. jeff should execute Definition exclusive agency listing Term when personal property that is used in a business is attached to real estate by the tenant, the personal property would most likley Definition belong to the tenant if removed before the lease expires Term jack, karel, and lana are owners of blackacre as joint tenants. if lana dies devising the property to her husband tom in her will Definition the property is automatically owned by Jack and Karel as one half owners Term all of the following would affect the value of a property except Definition title insurance Term a broker does not have to prove that he or she was the procuring cause of the sale of a property under which of the following types of listing agreements Definition exclusive right to sell Term when making adjustments in the comparison of properties under the market data approach, which of the following is true Definition if the comparable is superior, an adjustment is made by subtracting from the comparable Term all of the following are public controls of land use and development except Definition deed restrictions Term the process of changing a building from an apartment to a condo is known as Definition conversion Term all of the following are associated with personal property except Definition bundle of rights Term which of the following statments regarding the lead based paint disclosure is false Definition tenants must be given ten days in which to conduct an inspection and they may waive this right Term which of the following would not terminate a listing agreement Definition death of the sales agent Term which principal of appraising is the foundation for all approaches to appraising Definition substitution Term every enforcable contract for the sale of real estate must be in writing and signed by all parties, in accordance with the Definition statute of frauds Term vicki accepts an sam's offer to purchase blackacre. during the course of negotiations, vicki's agent wrongfully represents to Sam (a customer of vicki) the nature of soil, claiming that a basement can be built, which is known by the agent to be false. this contract is Definition voidable by Sam Term to create a contact, the offeree must accept the offer Definition without changes Term  as a general rule an oral sales contract involving the sale of real estate Definition is unenforcable Term the owner of whiteacre who is seeking to make a use of white acre which does not conform a zoning ordinance should request a Definition variance Term the buyer's loan is negotiated on the Definition appriased value or sale price, whichever is less Term the terms stable income, net worth, and credit history describe three basic factors Definition in assessing the buyer's qualifications Term time is of the essence in a contract most nearly means that the Definition mutual duties and responsiblities of the contract must be fulfilled on or before the stipulated time indicated in the contract Term a capital gain is Definition a taxable profit that is realized from the sale or exchange of an asset Term john's wife is currently stationed in Iraq. they have decided to sell green acres in Neb so he can join her. to provide a good and marketable title to the buyer, john should Definition secure a durable power of attorney from his wife and sell the property Term what do the terms offer and acceptance, mutual assent, and meeting of the minds have in common Definition the terms mean there is an unqualified acceptance of an offer, which is an essential element of a contract Term a buyer entered into a buyer agency agreement. the buyer still has the right to enter into similar agreements with any number of agents. this describes Definition open buyer agency Term when land is to be condemned or taken under the power of eminent domain, which of the following must appy Definition constructive notice must be given Term the real estate settlement procedures act requires Definition that disclosure be made of all closing costs prior to the closing Term sam sold her house to buddy. buddy, however did not record the deed. under these circumstances Definition buddy's interest is not fully protected against third parties Term all of the following are true for a deed to be valid except Definition the grantee must sign the deed Term the deed most commonly used to correct a title defect or cloud on title Definition quitclaim deed Term at closing, an unpaid special assessment on a property which will not be assumed by the buyer, will usually appear as a Definition debit to the seller Term an owner's title insurance policy normally covers all of the following except Definition zoning restrictions Term regulation Z applies to Definition loans made to individuals on residential property Term which of the following requires that finance charges be stated as an annual percentage rate? Definition regulation Z Term An easement may be canceled by all of the following except Definition prescription Term deed restrictions are examples of Definition private control of land Term a judgement, when properly recorded, becomes Definition an involuntary lien Term in any valid lease, the lessor by law gives an implied covenant of Definition quiet enjoyment Term in most states, a person is exempt from licensure as a real estate agent when performing which of the following activities, even if receiving a fee Definition selling real property as an executor of an estate Term a typical broker salesperson employment contract should include all of the following except Definition employment status Term if a written rental agreement is used Definition the agreement must be signed by the party to be charged Term an earnest money agreement signed by all parties is Definition binding on the seller Term a valid enforcable sales agreement must Definition be written and delivered Term if a contract of sale is subject to the buyer's ability to secure a loan, and after diligent effort the buyer is unable to do so by the stated deadline, the Definition contract would be voidable by the buyer Term the theory of special assessment allocation is that the improvement benefits the Definition land in the district Term all of the following may be considered in calculating the cost basis of a property in a capital gain tax computation except Definition repairs Term a mortgage instrument may include a clause that prevents the assumption of the mortgage by a new purchaser w/o the lender's consent. what is this clause called? Definition alienation clause Term in regard to a promissory note, a marker is Definition the obligor Term under a deed of trust on real property, the trustee is Definition the owner of the property covered by the deed of trust Term to be a valid lien against a parcel of real estate a deed of trust must be signed by Definition only ii Term money for tax and insurance payments that accompanies principal and interest could be placed in any of the following accounts except Definition trust account Term a primary mortgage lender is one who Definition makes loans to mortgagors Term a buyer is assuming a VA loan and paying an additional 5k cash for the property. the buyer should sign Definition assumption agreement Term all of the following are usually paid by the buyer at close of a residential sale except Definition commission Term the property tax year runs from jan 1 to dec 31. the taxes on a certain house are $1,440 per year, all of which have been paid. if the house sells, not in a leap year, and the closing dates is june 12, the: Definition buyer owes the seller $796.93 Term the principal amount of the seller's current mortgage payoff is a Definition debit to the seller Term which of the following is not a commonly used method of real estate appraisal Definition leverage Term when an appraiser uses the market comparison method, which of the following conditions may disqualify a sale as a fair market value transaction Definition sale to family member Term if a contract of sale is subject to the buyer's ability to sell their current home, and after a reasonable time on the market is unable to do so, the Definition Term the phrase "jointly and severally liable" in a lease applies when there are two or more Definition makers Term in some states a mortgage is considered to be a transfer of title to real property. in other states a mortgage is interpreted as Definition a lien on the property Term all of the following are subordinate to a property tax lien except Definition None - choices were: first mortgage, mechanic lien, child support judgement Term satisfaction of a deed of trust requires that the trustee execute and deliver a Definition deed of reconveyance Term loan payments are normally paid to Definition beneficiary Term after a loan secured by a Deed of Trust is paid off, which party should record the Deed of reconveyance Definition trustor Term all of the following would normally be considered to be considered to be real estate, except Definition trade fixtures Term the phrase, "to grantee's heirs and assigns forever" most likely creates Definition surplusage Term Thomas deeds a property to Madison for her life remainder to Geoff. Madison sells her interest to Sam. Same dies Definition the interest reverts to Thomas Term residential month to month or week to week leases may be terminated by either party by all of the following except Definition subsequent to the periodic rental date