Real Estate Sales License Exam - Rhode Island Exam Questions with Latest Update
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Course
Licensed Realtor
Institution
Licensed Realtor
Deed of Trust Loan - Answer-Deed wherein legal title in real property is transferred to a trustee, which holds it as security for a loan
Factors influencing real estate supply - Answer-- Labor force availability
- Construction and material costs
- Government controls
- Govt. financial policie...
Real Estate Sales License Exam - Rhode
Island Exam Questions with Latest
Update
Deed of Trust Loan - Answer-Deed wherein legal title in real property is transferred to a
trustee, which holds it as security for a loan
Factors influencing real estate supply - Answer-- Labor force availability
- Construction and material costs
- Government controls
- Govt. financial policies
Factors influencing real estate demand - Answer-- Population
- Demographics
- Employment and wage levels
Realtor - Answer-Member of the National Association of Realtors
Schools are part of what real estate classification - Answer-Special purpose
Uses of Real Property - Answer-- Residential
- Commercial
- Mixed-Use
- Industrial
- Special Purpose
What is not a factor in how quickly the forces of supply and demand work - Answer-
Pricing
Improvements do not include: - Answer-- Shrubbery
- Trees
- Lawns
Real property includes: - Answer-- Interests
- Benefits
- Rights that are automatically included in the ownership of land and real estate
Bundle of Legal Rights, as part of Real Property, include: - Answer-Right of:
- Possession
- Control
- Enjoyment
- Exclusion
- Disposition
,Title is: - Answer-- Right to ownership
- Bundle of legal rights
- Evidence of ownership provided by a deed
Appurtenance - Answer-Right or privilege associated with real property, e.g.
- parking space
- easement
- water rights
Emblements (personal property) - Answer-Annual plantings (not perennials) or crops or
grains
Severance (personal property) - Answer-Can be separated from the land, e.g. apple
being picked from the tree
Attachment or Annexation (personal property in to real property) - Answer-e.g. cement,
stone, and sand mixed in to concrete to make a sidewalk
Fixture - Answer-Part of real property. Attached to the land or building
Legal tests for a fixture - Answer-- not easily removable (means of annexation)
- considered a permanent addition (adaptation to real estate)
- agreement of the parties (in the offer to purchase)
Trade fixtures - Answer-property attached to the structure but used in the course of
business. Personal property or Real Property.
Accession - Answer-Trade fixtures that are not removed and become part of the real
property being purchased
Economic characteristics of real estate - Answer-- Scarcity
- Improvements
- Permanence of investment
- Location
Physical characteristics of real estate - Answer-- Immobility
- Indestructibility
- Nonhomogeneity or uniqueness
Chattels - Answer-Personal property
Personalty - Answer-any tangible asset that can be moved (not fixed to land)
Types of Housing - Answer-- Single-family homes
- Apartment complexes
, - Condominiums
- Cooperatives
- Planned Unit Developments (PUDs)
- Mixed-Use Developments (MUDs)
- Modular homes
- Mobile homes
- Time shares
PITI - Answer-- Principal
- Interest
- Taxes
- Insurance
Loan programs with more flexible terms for those with lower credit ratings - Answer--
FHA (Federal Housing Administration)
- VA (Dept. of Veterans Affairs)
Investment considerations - Answer-- Appreciation
- Equity increase with an amortized loan
- Tax deductions
- Capital gains taxation exclusion (principal residence)
- Tax-free withdrawals from an IRA for downpayment
Co-insurance clause - Answer-Homeowner to maintain insurance equal to 80% of
replacement costs
Comprehensive Loss Underwriting Exchange (CLUE) - Answer-Database of insurance
claim history
National Flood Insurance Act of 1968 - Answer-- Subsidizes flood insurance
- Administered by FEMA (Federal Emergency Management Agency)
Planned Unit Development (PUD) - Answer-master planned communities with single
family homes
Does a homeowner's insurance policy typically cover theft? - Answer-Yes, but not for a
person injured in the home
Lender's rule of thumb on % of income for PITI - Answer-28%
Tax exclusion on a primary residence - Answer-- $500,000 if filing jointly
- $250,000 for a single filer
Basic form of homeowner's policy covers: - Answer-theft, smoke damage, damage from
fire, glass breakage, riot, vandalism
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