Sandy, a 16-year old, enters into a contract to buy a condo from Sue, an adult. Which statement is TRUE? - ANSWER Sandy can void the entire contract any time before the transaction is closed.
Explanation: It is true that Sandy, a 16-year old minor, can void the entire contract any time before th...
Sandy, a 16-year old, enters into a contract to buy a condo from Sue, an adult. Which statement is TRUE?
- ANSWER Sandy can void the entire contract any time before the transaction is closed.
Explanation: It is true that Sandy, a 16-year old minor, can void the entire contract any time before the
transaction is closed. Minors are permitted to enter into a contract; however, the law provides certain
protections to minors that are not granted to adults.
A listing agreement between a principal and broker is a(n) - ANSWER express contract.
Explanation: A listing agreement is an express contract between the principal and broker that names the
broker as fiduciary representative (agent) of the principal.
Which statement regarding a Veterans Affairs (VA) mortgage is FALSE? - ANSWER It does not have
minimum property requirements was correct.
Explanation: A VA mortgage does have minimum property requirements in order to ensure the veteran-
buyer the property is safe, sanitary and sound.
A Department of Veterans Affairs (VA) mortgage is - ANSWER Guaranteed.
Explanation: The VA guarantees mortgage loans for eligible veterans.
Garrett sold his primary residence for $595,000, which was a capital gain of $315,000. How much may
Garrett exclude on his income tax as a single individual? - ANSWER $250,000
Explanation: Garrett may exclude $250,000 of the capital gain on the sale of his primary residence on his
income tax. The most a single individual may exclude on the capital gain of a sale of a primary residence
is $250,000.
, A parcel of land is 140 feet by 75 feet and the seller is asking $130 per square foot. What is the asking
price? - ANSWER $1,365,000 was correct.
Explanation: To calculate the asking price, multiply the lot dimensions to derive the total square footage:
140 feet × 75 feet = 10,500. Finally, multiply the total square footage by the price per square foot: 10,500
× $130 = $1,365,000 asking price.
The Johnsons sold their house and will close on July 1. The Johnsons paid their full annual town taxes in
January. Which statement BEST describes what will occur at closing? - ANSWER The buyers will owe the
Johnsons the unused tax for the balance of the year. was correct.
Explanation: At closing, the buyers will reimburse the Johnsons for property taxes paid in advance.
Jesse signs a deed to Maryam as grantee, has it acknowledged, and receives payment from her. Jesse
arranges to meet Maryam the next afternoon to give the deed to her. Maryam will own the property -
ANSWER the next afternoon when she receives the deed.
Explanation: Title is said to pass when a deed is delivered and accepted.
The Federal Housing Administration's (FHA) Section 8 program helps low- and moderate-income people
by - ANSWER paying part of their rent.
Explanation: FHA's Section 8 program helps low- and moderate-income people by paying part of their
rent.
What percentage of a building's replacement value must be covered by fire insurance according to
typical coinsurance clauses? - ANSWER 80 percent
Explanation: Insurance policies usually carry coinsurance clauses that require coverage up to 80 percent
of the building's replacement value.
,The metes and bounds and monuments of a property can be found in what clause in a deed? - ANSWER
Description was correct.
Explanation: The metes and bounds and monuments of a property provides a legal description of real
estate that will be accepted in a court of law and can be found in the Description clause of a deed.
A deed is valid only when it is - ANSWER delivered and accepted.
Explanation: Actual delivery of the deed by the grantor and acceptance by the grantee must take place
before a transfer of title by deed can take place.
Malcolm just received his salesperson's license and has joined a firm. He will MOST likely be hired for tax
purposes as a(n) - ANSWER independent contractor.
Explanation: A survey by the National Association of REALTORS® found that nine out of ten real estate
firms treated their sales associates as independent contractors, which allows them to avoid the
bookkeeping of withholding taxes, Social Security payments, unemployment insurance, etc.
Real estate license laws are designed to - ANSWER protect the public and maintain high standards. was
correct.
Explanation: Real estate license laws were instituted to protect the public from incompetent or dishonest
brokers and salespersons and to maintain high standards in the real estate industry.
When a broker is retained by the buyer, the broker owes the prospective seller - ANSWER honest,
straightforward treatment. was correct.
Explanation: When retained by the buyer, the broker owes a prospective seller honest, straightforward
treatment.
A seller's broker must disclose to a prospective buyer that the - ANSWER heating system doesn't work.
, Explanation: The seller's broker must disclose latent defects but is not responsible for disclosing facts
that might stigmatize the property or that the person who lives in the home has AIDS.
CO is an abbreviation for certificate of occupancy, which is the municipal document verifying that the
premises and parts thereof are approved and safe for occupancy. Building additions usually require a CO.
A building inspector performs an inspection before the CO is issued and also checks properties for
violations.
Paula enters into a contract for the purchase of Jordan's home. Paula applies for a mortgage. The
contract requires her to get a document from her mortgage lender stating that the lender will be loaning
her the necessary funds. What is that document called? - ANSWER Answer: Commitment
A commitment is a document from a mortgage lender stating that the lender will be loaning the
purchaser/borrower the necessary funds.
The promissory note contains the borrower's promise to repay the debt and the manner and frequency
of payment (e.g., monthly via check). The note also contains the principal balance owned and the
interest rate.
A letter of approval may refer to a pre-approval letter issued by the lender to show potential sellers that
the borrower may be approved for a loan for a particular amount.
Biff is hired by owner Gilligan to oversee a residential property complex, including supervising complex
employees and maintenance, but he has limited authority. Biff is the: - ANSWER Answer: Property
manager
A property manager oversees the property on behalf of the owner and is typically required to oversee
employees and maintenance and protect the interests of and obtain the optimum financial return for the
property owner who employs the manager.
A lessee is the tenant of a property pursuant to a lease.
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 shantelleG. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
