Exam (elaborations)
Modern Real Estate Quiz Q Verified and 100% Correct Q & A, Complete Document for Exam
- Course
- Institution
Modern Real Estate Quiz Q Verified and 100% Correct Q & A, Complete Document for Exam
[Show more]
Content preview
Modern Real Estate QuizCircle the letter of the Answer that corresponds to the displayed Question.
1. acceleration clause
A. the clause in a mortgage or deed of trust that can be enforced to make the entire debt due immediately if the
borrower defaults on an installment payment or another covenant.
B. AKA the market data approach. When an estimate of value is obtained by comparing the subject property with
recently sold comparable properties.
C. a standardized conventional loan that meets Fannie Mae or Freddie Mac's requirements; made by for-profit lenders
and are not insured by the federal gov't to the most creditworthy borrowers.
D. The act of encouraging people to sell or rent their homes by claiming that the entry of a protected class will have a
negative impact on property values.
2. baseboards
A. A method of land description that uses lot and block numbers.
B. a board around the bottom of a wall perpendicular to the floor; covers gap b/w the floor and wall; decorative
C. An area zoned strictly for aesthetic or appearance considerations
D. a federal law that requires sellers/landlords to disclose the known presence of lead-based paint in residential property
to potential buyers/tenants via the required disclosure addendum to sales contracts or leases
3. time is of the essence
A. divisions of financial responsibility between the buyer and seller for such items as loan interest, taxes, rents, and fuel
or utility bills.
B. This means that the contract must be performed within the time limit specified, and any party who has not performed
on time is liable for breach of contract.
C. Used to guarantee a broker a commission if that particular property is sold to a specific buyer.
D. A principal-agent relationship in which the broker is the agent for the buyer, with fiduciary responsibilities to the buyer.
The broker represents the buyer under the law of agency.
4. Unit in place method
A. A dwelling(mobile home) built under HUD regulations with a permanent chassis. Considered personal property until
moving hitch, wheels and axles are removed, the unit is attached to a permanent foundation on land, and an affidavit is
filed with the DMV.
B. Estimating the replacement cost of a structure based on the construction cost per unit of measure of individual
building components, including material, labor, overhead & builders profit.
C. Undesirable physical or design features that can't be remedied easily are considered functionally obsolete. ex: home
w/ 5 bedrooms & 1 bath
D. a written promise or order to pay a specific sum of money that may be transferred by endorsement or delivery. The
transferee then has the original payee's right to payment.
5. principal
A. money borrowed
B. the masonry or concrete wall below ground level that serves as the main support for the frame structure; form the
side walls of the basement or crawlspace.
, C. Uses boundaries and measurements of the land.
D. the final step in the appraisal process, in which the appraiser combines the estimates of value received from the sales
comparison, cost, and income capitalization approaches to arrive at a final estimate of market value for the subject
property.
6. Foreclosure
A. A concurrent form of ownership of real estate between two or more parties who have been named in one conveyance
as joint tenants. Ownership interest may be unequal. Right of survivorship is not automatic in NC but can be added by an
attorney.
B. Process in which property is taken by a creditor for nonpayment of debt secured by real property.
C. Dwelling units owned by religious organizations may be restricted to people of the same religion if membership in the
organization is not restricted on the basis of protected class.
D. 10 day period after the auction in which the borrower can try to raise the necessary funds to redeem the property.
7. Emblements or Fructus Industriales
A. Growing crops, such as grapes and corn, that are produced annually through labor and industry; also called fructus
industriales. Usually considered to be personal property,
B. A rule of law stating that once written acceptance is placed in control of the mailing service, it is considered accepted-
-not when the acceptance is actually received by the offeror.
C. The maximum possible estate in real property; most complete and absolute ownership; indefinite in duration, freely
transferable and inheritable.
D. insulating material that is applied to the wall framing; then siding is applied on top of it
8. Agency
A. The effort that began a chain of events that brings about the desired result. Under an open listing, the broker who is
the procuring cause of the sale receives the commission.
B. the doctrine that gives the tenant the right to cancel the remainder of the lease and vacate the premises w/o penalty if
the landlord fails to keep the premises fit.
C. a flat, horizontal reinforced concrete area, usually the interior floor of a building but also an exterior or a roof area
D. the fiduciary relationship between the principal and the agent.
9. accrued items
A. when principal and agent, without formally agreeing to the agency, act as if one exists.
B. A decree issued by a court.
C. Specifies that a condo is created and established when the developer executes and records a declaration of its
creation in the county where the property is located
D. unpaid items to be prorated such as unpaid current real estate taxes or interest on an assumed mortgage that are
owed by the seller but will be paid later by the buyer.
10. usury
A. an agency option a firm may use when the consumer is willing to commit to an exclusive written buyer agency
relationship.
B. a leasehold estate that continues for a definite period of time, whether for years, months, weeks, or days;
automatically terminates at the end of the lease period.
C. Transfer of title, act of transferring property to another.
D. charging interest in excess than the maximum rate established by state law.
11. Marketable Title Act
, A. used when a transaction is an in-house sale (when one agent from firm X represents the buyer and another agent
from firm X represents the seller)
B. Provides that if a chain of title can be traced back for 30 years and no other claim has been recorded during that time
the title become a marketable title.
C. Warranties
D. this act governs residential leases and landlord-tenant relationships; its purpose is to ensure that only habitable
residential unties are rented. Does not apply to hotels, motels, rent-free or commercial properties.
12. In-house sale
A. 1) One owner only 2) interest 100% 3) one signature only when sold unless a married person - spouse signs to
extinguish elective share rights 4) marriage of an owner does not automatically change to tenancy by entireties 5) heir
ship rights
B. Real property uses that were legally established before adoption of current zoning plan, but have been
"grandfathered".
C. a sale in which both the selling agent and the listing agent are from the same firm.
D. Under this covenant, the lessor guarantees that the lessee may take possession of the leased premises and that no
one, including the landlord, will interfere with the tenant's possession or use of the property.
13. Restrictive Covenant or Protective Covenant
A. A person's present right to an interest in real property that will not result in possession or enjoyment until someone in
the future, such as a reversion or right or reentry.
B. Private agreements usually imposed by the owner when property is sold that limits the way the real estate ownership
may be used; frequently used by owner/developer to maintain specific standards in a subdivision. The covenants are
appurtenant.
C. a loan insured by the FHA and made by an approved private lender according to FHA's regulations
D. A tenant's right to occupy real estate during the term of a lease, generally considered a personal property interest;
nonfreehold estate.
14. one and a half month's rent
A. The yield that an investor will demand for the investment of capital. This is the rate of return.
B. Law that requires those engaged in the interstate sale or leasing of subdivision lots to file a statement of record and
register the details of the land with HUD
C. maximum amount of security deposit if tenancy is from month to month.
D. Property regarded as undesirable because of events that occurred there; also called psychologically impacted
property. Some conditions; gang-related activity, proximity to a nuclear plant, and even the alleged presence of ghost.
15. Negligent omission
A. Power of certain agencies to take private property for public use through a suit for condemnation.
B. takes place when agents do not have actual knowledge of a material fact but should reasonably have known of such
a fact.
C. acronym used by commercial agents in a net lease that frequently refer to these charges: taxes, insurance, and
common area maintenance
D. the external underside of the eave; usually contains ventilation for the attic/roof
16. survey
A. gives the purchaser information about the exact location and size of the property
B. someone who preserves the value of an investment property while generating income as an agent for the owner.
C. A legal action to compel a party to carry out the terms of a contract.
D. an administrative fee charged to the borrower by the lender for making a mortgage loan; usually computed as a % of
the loan amount.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ACTUALSTUDY. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79064 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now