An appraisal technique whereby the value of an income producing property is estimated by capitalizing its net operating income using an appropriate capitalization rate. To whom does an agent always owe their fiduciary responsibility? A material used in pipes and paint of many older homes. No fee is earned if the owner alone sells the property. An independent contractor is not an employee. Each broker has an opportunity to earn the entire commission if they can come up with a buyer. Or a conditional use permit. A borrower is a mortgagor while the lender is the mortgagee. A buyer of a home was not informed that his house was on a septic tank system. Explain. "A mortgage loan available for military service members, veterans, and eligible surviving spouses; which often comes with better terms than a traditional mortgage.". A satisfaction of mortgage is a document that confirms a mortgage has been paid off and details the provisions for the transfer of collateral title rights. The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public. The real estate exam can be scary at first, but you can conquer the real estate exam with the right study materials. A chronic lung disease caused by inhaling asbestos fibers. The practice of inducing homeowners in a particular neighborhood to sell their homes quickly, often at below market prices, by creating the fear that the entry of a minority group or groups into the neighborhood will cause a precipitous decline in property values. It is hazardous to health when a possibility exists of exposure to inhalable fibers. A right to cross or otherwise use someone else's property for a specified purpose. A naturally occurring mineral fiber sometimes found in older homes. - Legal agreement by which a bank lends money in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon payment of the debt. More specifically its a measure of the value of an investment property that is obtained by dividing the property's sale price by its gross annual rental income. Local appointed board that has the power to review administrative rulings made by the planning board or another legislative body. The person who hires or appoints an agent is called the: The person who hires or appoints an agent is called the principal. In title theory states, banks or mortgage lenders hold the title of a property until it is paid in full. (a) Cash. I.E. A written document produced by an Architect that describes the QUALITY of construction for a building. A clause in a deed or lease that defines the type of interest and rights to be enjoyed by the grantee or lessee. A prepayment penalty clause states that a lender can penalize a borrower if the borrower pays off the mortgage much sooner than usual. A licensed real estate broker that holds the license of a salesperson. Which of these items are liabilities of White Glove Cleaning Service? With a total of 120 questions (80 national and 40 state), that means the score to pass is 56 for the national and 28 for the state. Trusts can be created during an individual's lifetime, or they can be established following someone's death. Clauses protect the property owner against increases during the lease term. A lien imposed by law upon a property to secure the payment of taxes. These rights include the right to use and/or copy, the right to sell in whole or in part, the right to lease, the right to bequeath and the right to do none of the foregoing. REALESTATEU FINAL EXAM Flashcards | Quizlet Social Science Economics REALESTATEU FINAL EXAM Term 1 / 109 Article 12-A of the NYS Real Property Law Click the card to flip Definition 1 / 109 - The section of the New York Real Property Law pertaining to real estate salespersons and brokers. (d) Accounts receivable. A career in real estate sales is one of the most lucrative routes a salesperson can take. A balloon loan is different as not all payments are the equally divided and the most substantial payments are called Balloon payments. Usually, the exam varies between 80-100 national questions and 30-50 state-specific ones, but each state is different. The sequence of historical transfers of title to a property. Don't make the mistake of paying too much! Void contracts are not contracts because they lack an essential element of a contract and are thus unenforceable. Real Estate Final Exam (150 Questions ) #1 4.7 (20 reviews) Term 1 / 157 A real estate licensee has a buyer agency agreement. Dual agency is when one real estate agent represents both the buyer and seller in a transaction. The buyer has the right to: An agent must reveal all property facts and defects known at the point of sale. Any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments. It is hazardous to health when a possibility exists of exposure to inhalable fibers. Ex: Mortgage. Read More Here. Changing terms of a sale because someone is Chinese is clearly illegal and a violation of The Fair Housing Act. Intangible Deterioration. Jelly Co. processes jam and sells it to the public. The real estate exam is mainly multiple-choice and is a mix of problem-solving, math, and vocabulary. The equipment has a fair value at the commencement of the lease of $76,024 and an estimated useful life of 7 years. It may be limited by the life of the person holding it or by the life of another person. Unfortunately, exactly when a problem started and when the seller first "knew" about it are not always clear. Someone authorized to transact every kind of business for the principal. In this case: Remember, an open listing is truly open. An accounting statement that forecasts income and expenses for a, The ability to have cash readily available to support the demands of running and maintaining real property, The total amount collected from rents and other income producing. Also if it was open listing, the agent would still NOT be entitled to any compensation. Who dictates trust accounts and when to deposit earnest money or other trust funds? 3% on a $400,000 property is $12,000. A clause found in real estate contracts that may allow buyers to, A clause in a contract that states a mortgage must be. A key document provided during the purchase of a cooperative, which includes information required to be disclosed to the purchaser. - A crime punishable by up to a year in prison and/or a $1,000 fine. Valuation method which compares a subject property's characteristics with those of comparable properties which have recently sold in similar transactions. Market value is never directly determined by the government. Its important the buyer and seller clearly understand the document as it becomes legally binding as soon as both parties sign. - Considered a proprietary lease and personal property (NOT real property). Deposit that a buyer makes at the time of submitting an offer to demonstrate the true intent of the purchase, also referred to as a binder, good faith deposit, and escrow deposit. Monthly payment by owner of a condominium. The ability to have cash readily available to support the demands of running and maintaining real property. Most real estate sales contracts include contingency clauses, making them voidable. A horizontal structural member that supports a floor. With a total of 150 questions, that means the score to pass is 105. An intermediary who brings mortgage borrowers and mortgage lenders together, but does not use its own funds to originate mortgages. - A town or city agency that oversees and reviews building applications by licensed professionals to ensure compliance with local building code and zoning ordinances. The math looks like this: Gross Rent Multiplier = Property Price / Gross Rental Income. - The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on. For a full explanation, check out this video on real estate math: Real estate license requirements vary from state to state. A blind offer in real estate is a purchase contract written by a buyer without seeing the property. If they rise or decrease the same amount, the price remains the same. The statute of frauds is a common law concept that requires written contracts for certain agreements to be legally binding. They cover an individual's house and assets in the home. - A contract between the owner of a property and someone who agrees to manage it. Normally if a background check is required so is the submission of fingerprints although they are usually handled at the same time and do not require additional steps. A right to cross or otherwise use someone else's property for a specified person. This type of deed contains the strongest guarantee of title. You must bring your "Summary of Your Submission" with you when taking the State exam. a lien or a mortgage. Earnest money should be deposited into a trust account: Earnest money should be deposited into a trust account in a timely manner, according to state laws. This type of lease is called a: A percentage lease is a lease in which all or part of the rental is a specified percentage of gross income from the total sales made upon the property. Unlike with a joint tenancy, tenants in common have no rights of survivorship. Window blinds are screwed into the house, therefore they are considered a fixture in this example. AKA Slope. A single agency has a relationship with the buyer or the seller, but not both. - Responsible for developing and controlling a municipality's comprehensive strategy for growth and development. Privilege operating as an easement upon land, whereby owner does by grant or agreement, give to another the right to pass over owner's land, t construct a roadway, or use as a roadway, a specific part of the land; OR the right to construct over or throough the land, telephone, telegraph, or electric power lines; OR the right to place underground water, gas mains or sewer mains. ILLEGAL. Remember, separate amendments are used to modify or change executory contracts. - The right of a property owner whose land borders on a body of water, such as a lake, ocean or sea, to reasonable use and enjoyment of the shore and water the property borders on. One of the biggest advantages of a VA loan is in some circumstances people dont even need a down deposit for the property they want. An accounting statement that forecasts income and expenses for a period of time, typically five or more years. There is no law stating an earnest deposit has to be a certain amount. The division of certain settlement costs between buyer and seller. Zoning usually increases the marketability of the property. Remember, voidable contracts have the necessary elements to be enforceable, so they appear to be valid, but can be rejected by one party if the contract is discovered to have any number of defects. Click the card to flip Flashcards Learn Test Match Created by Terms in this set (157) Taking private property for public use, with fair compensation to the owner; exercising the right of eminent domain. The type of easement that is a right-of-way for a utility company's power lines is what? A contract in which all elements of a contract are specifically stated (offer, acceptance, consideration). - The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public. Eurocredits; eurodollar. A written document produced by an Architect that describes the quality of construction for a building. 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