Which of the following BEST describes a contract that is voidable? Mortgagee = Lender. The biggest difference is that the government does not write or enforce private controls but it does impose and enforce public controls like zoning. The use of borrowed capital (mortgage) to increase the potential return of an investment. A measure of land equal to 43,560 square feet. Has no exemptions and contains the blanket statements that 'citizens have the same rights to inherit, buy, sell, or lease real and personal property.' All states require a high school diploma or G.E.D equivalent. Any right to or interest in the land interfering with its use or transfer, or subjecting it to an obligation. Which of the following fits the description? Conspiring to establish fixed fees or prices for services or products. Also called excess insurance. Legal policy mandates that a deed to real property be a matter of. payable. Find out how you can intelligently organize your Flashcards. The ADA is a civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places that are open to the general public. When a property owner has been innocent of all involvement with a hazardous waste site, under certain circumstances, he may claim immunity from responsibility. Ready to get started? (e) Supplies. There is no minimum credit score requirement for a reverse mortgage, primarily because the main thing lenders want to know is whether you can handle the ongoing expenses required to maintain the house. Determines the usage allowed for a building or subdivision. The fee simple estate has unlimited duration and can be passed on to heirs. Disclosure Regarding Real Estate Agency Relationships Form, - An agreement of employment of a broker to the exclusion of all other brokers; if sale is made by any other broker during term of employment, broker holding. Interpreter of the zoning ordinance. Find the answers to all your real estate license questions here: The real estate license exam is divided into two parts: the national and your specific state portions. Joists, beams, and roofs are typically supported by these. The fifth and fourteenth amendments of the U.S. Constitution permit the government to exercise its power of eminent domain. - Conspiring to establish fixed fees or prices for services or products. Trade fixtures refer to items installed in connection with the business, such as stoves or refrigerators in a restaurant. A measure of land equaling 43,560 square feet. *Primarily interpreted to prohibit racial discrimination. If your state allows commingling, and you misappropriate the funds, that's conversion. - A clause in a contract that states a mortgage must be obtained in order for the contract to be binding. Value = Income / Rate. By far, the most substantial chunk of the real estate license exam is the vocabulary. The main purpose of the CCR's is to maintain the look and feel of the community. - A chronic lung disease caused by inhaling asbestos fibers. The division of certain settlement costs between buyer and seller. A seller is asked whether any known plumbing defects exist on her property. - Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, pets, and conflict resolution. We also have detailed state-specific practice exams located down below, along with an extensive math practice exam. An estate for years is not automatically renewed. You will need to pass your Real Estate U Final Exam before you can be awarded a Certificate of Completion and before you can schedule your state licensing test. The total amount collected from rents and other income producing opportunities. 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. - Vertical framing members found in wall construction. The real estate exam is a rigorous and challenging test that weeds out those who are not committed to being skilled agents. If problems emerge after a sale is complete; that is not the seller's problem, and not a cause for the buyer to sue. Who or what determines the amount of an earnest money deposit? 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. Tina and Tom are two unmarried individuals who own property with equal interests and without a right to survivorship. A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year. Which of the following would MOST likely be used to obtain permission to build the store? Community Property Laws are based on the idea that husband and wife are equal, separate, partners rather than one whole one like tenants by the entirety. This is a bit of a trick question. - A series of documents submitted for the review by a cooperative boards. If they rise or decrease the same amount, the price remains the same. The developer or owner organizing and offering for sale a condominium or cooperative development. A naturally occurring mineral fiber sometimes found in older homes. - A lien that only binds to a specific asset or property (Example: mortgage). 1 Time-Tap-987 2 yr. ago Final final is the last test you take with REE. Read More Here. Which of the following enforces all federal environmental rules and regulations? The actual interest rate charged, including loan fees and points. Without consideration, a contract is not valid. The refusal to lend money within a specific area for various reasons. Form the topic; you are given questions to attempt. that must be transacted for a successful transfer of ownership to take place. A 9-unit building in Cleveland Ohio, with an asking price of $500,000 and gross annual rents of $75,000. Which of the following forms of ownership would Tina and Tom most likely have? Functional obsolescence can be outdated design or floor plan. He needs an easement for ingress and egress over Ron's property to be able to enter and exit the property. CMA is NOT an appraisal. For help with the national we have our free national real estate practice exam. Also called excess insurance. Oversees and upholds the quality and aesthetics of a neighborhood, town, or city. The amount of interest really doesn't matter in this case. This practice is illegal. - The refusal to lend money within a specific area for various reasons. Severance is taking an item that is attached to the land and removing it as personal property. In lien theory states: The correct statement is: In title theory states, banks or mortgage lenders hold the title of a property until it is paid in full. Fuse melts and opens the circuit, causing electrical power to stop when overheating occurs. States that the borrower can pay off the loan at any time before expiration of the full mortgage term without a financial penalty for early payoff. Weve seen our students get results time and time again so were proud to stand behind our content. Changing terms of a sale because someone is Chinese is clearly illegal and a violation of The Fair Housing Act. The actual interest rate charged, including loan fees and points, The market where mortgage loans and servicing rights are, A financial term used by lenders to express the ratio of a loan to the. If that sounds good, check out these crash courses: Between our real estate prep course, real estate practice exams, and video lessons there is no better way to prepare for your real estate exam. - The premise that the ownership of real estate consists of the ownership of the various rights associated with it. A lien imposed by law upon a property to secure the payment of taxes. - The section of the New York Real Property Law pertaining to real estate salespersons and brokers. Which of the following is NOT a legal name for closing? Ex: Mortgage. A contract between the owner of a property and someone who agrees to manage it. No matter what type of person applies for a loan they cannot be turned away due to factors that are not directly related to their credit. Local appointed board that has the power to review administrative rulings made by the planning board or another legislative body. If you are new to all of this, dont worry, we gotcha covered. - Monthly payments by a shareholder to a cooperative corporation. What is the document that defines the relationship between the broker and the seller? Trusts can be created during an individual's lifetime, or they can be established following someone's death. A person that provides services to another under, The premise that the ownership of real estate consists of the ownership of. A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc. Here are what topics you are expected to know:if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[336,280],'realestatelicensewizard_com-box-4','ezslot_14',696,'0','0'])};__ez_fad_position('div-gpt-ad-realestatelicensewizard_com-box-4-0'); It depends. (c) Dividends. 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. The formula for finding commission is pretty simple. Click the card to flip Definition 1 / 157 A customer. 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. Reverse mortgages can provide much-needed cash for seniors whose net worth is mostly tied up in the value of their home. Mandated warranty for a new constructions according to NYS General Business Law 36-B: A Federal law that makes real estate licensees liable for the disclosure of lead paint. It runs from the present owner back to the original owner of the property. A leasehold estate for any specific period of time. Have fun, study hard, and reach out if you have any questions. Property evaluation that determines property value by comparing similar properties sold within the last year. (i) Rent expense. Gross Rent Multiplier is the ratio of the price of a real estate investment to its annual rental income before accounting for expenses such as property taxes, insurance, and utilities. Having verbal authority is not good enough, and in many states is considered illegal. A contractual or consensual lien that is created by an action taken by the debtor, such as a mortgage loan to buy real estate. Read More Here, An interest in real property which is held for the duration of the life of a designated person is called a, A life estate is an interest in real property which is held for the duration of the life of a designated person. Anderson's Business Law and the Legal Environment, Comprehensive Volume, David Twomey, Marianne Jennings, Stephanie Greene, Elliot Aronson, Robin M. Akert, Samuel R. Sommers, Timothy D. Wilson, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. Again, it varies per state, so check out our state requirements page for more detailed information. What is the biggest difference between private and public land use controls? 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. Under a lease for a commercial property, a tenant agrees to pay $3,000 per month plus 4% of the gross monthly sales. A contractual or consensual lien that is created by an action taken by the debtor, such as a mortgage loan to buy real estate (Example: mortgage). A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc. - The authorization to improve or develop a particular property in a manner not authorized by zoning. 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. - Primary purpose is to "Protect the Public" - A crime punishable by up to a year in prison and/or a $1,000 fine. Area of a triangle [triangle=1/2 of rectangle]. You can miss 15 to 30% percent of the questions in most states and still pass the exam. Sometimes people forget there are hundreds of others in the same boat. Since a month-to-month tenancy is a real estate contract, it must have consideration, offer and acceptance, legal object, and competent legal parties. Financial term used by lenders to express the ratio of a loan to the value of an asset (property) purchased. Similar real estate exam preparation courses charge anywhere from $49 to $200. Bonus tip. Generally, you can expect that your state real estate agent license exam will consist of 80-100 multiple-choice questions about general real estate concepts and 60-80 questions specific to state licensing laws. You must bring your "Summary of Your Submission" with you when taking the State exam. In the appraisal of a building constructed in the 1930s, the cost approach would be the least accurate method because of difficulties in. The trustee is required to manage the trust property in accordance with the trustor's wishes and in the beneficiary's best interests. Local elected or appointed gov't board charged with recommending to the local town or city council the boundaries of the various zoning districts and appropriate regulations to be enforced therein. Rights in real property to use the space above the surface of the land. Most states administer the tests in two parts, and require that the candidate pass both. Justin takes out a mortgage loan that requires monthly payments of $650.50 for 25 years and a final payment of $30,000. This type of deed contains the strongest guarantee of title. This practice is illegal. The safety valves for electrical systems. Scarcity: Limited in supply, as supply diminishes, value increases. Escheat ensures that property always has ownership. Texas Real Estate Exam Texas Real Estate Exam Flashcard Maker: Kirby Adcock 598 Cards - 19 Decks - 613 Learners Sample Decks: Principles Of Real Estate 2, Real Estate Finance 1, Real Estate Finance 2 Show Class Texas Real Estate Principles 1 Texas Real Estate Principles 1 Flashcard Maker: Nathan Hernandez 98 Cards - 9 Decks - 556 Learners As a general rule of thumb ALL written offers must be: As a general rule of thumb all written offers must be presented to the seller. PCBs known to leak into the ground from electrical transformers. - A profit that results from the sale of a property where the amount realized from the sale exceeds the purchase price. Prepare the journal entry to record (1) the receipt of payment of $70,000 from employees for the cruise packages and (2) the remittance and revenue recognized by Travel Inc. on this transaction. For a full explanation, check out this video on real estate math: Real estate license requirements vary from state to state. A key document provided during the purchase of a cooperative, which includes information required to be disclosed to the purchaser. The amount is completely up to the agreement between the parties. What is an item on a property that is installed by the tenant, and is related to the tenant's business classified as? In a typical real estate market, if the demand for commercial office space declines and the supply of office space also declines at the same ratio, market rent per square foot should: If demand increases more than supply does, we get an increase in price. Responsible for determining a municipality's tax rate. A naturally occurring mineral fiber sometimes found in older homes. Don't make the mistake of paying too much! Final Real Estate Exam. 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. 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Regulations established by state or local governments stating fully that structural requirements for building. Responsible for determining a municipality's tax rate. Zoning usually increases the marketability of the property. A seller made a counteroffer and gave three days for acceptance. Air Rights The right to use, control and occupy the space above a particular parcel of land. Currently, most states have usury laws in place and set a cap on the maximum amount of interest a lender can charge. If statement is not signed the seller owes the buyers $500 credit against the purchase price of the property. Real estate express The lease does not transfer title, does not contain a bargain purchase option, and the equipment is not of a specialized nature. Local zoning ordinances often regulate all of the following except. Which of the following would be classified as consideration in a real estate contract? The amount of expenses that must be paid out of pocket before an insurer will pay any expenses. Must complete required state approved pre-licensing courses. It runs from the present owner back to the original owner of the property. Filing that gives legal notice that a lawsuit has been filed concerning the specific property. In this case: Remember, an open listing is truly open. Practice of inducing homeowners in 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 precipitous decline in property values. The three main forms of depreciation are : Economic Obsolescence, Functional Obsolescence, and Physical Deterioration. Click the card to flip Flashcards Learn Test Match Created by Terms in this set (157) It is hazardous to health when a possibility exists of exposure to inhalable fibers. Formula: Recurring monthly debt/Gross Monthly Income. This often happens for land that is required for infrastructure like highways, major pipelines, railroads etc. They are typically wood, cold formed metal framing or steel. Flag What is the illegal action or practice of lending money at unreasonably high rates of interest? - Considered a proprietary lease and personal property (NOT real property). ILLEGAL. Window blinds are screwed into the house, therefore they are considered a fixture in this example. That section can be used to study the topics featured . Article 12-A of the NYS Real Property Law. It is a serious breach of a real estate agent's fiduciary duty to the seller not to present all purchase offers. The course includes 6 full months of access to well . Warehousing has to deal with loans and the secondary market. Richard's interest would be classified as: A tenant who continues to occupy property after his or her rights have expired is said to occupying the property under an Estate at Sufferance. Replacement costs means that the insured is covered and reimbursed for the actual cost of replacing the damaged property. Some include real estate practice exams and interactive real estate exam prep. The real estate exam can be scary at first, but you can conquer the real estate exam with the right study materials. A voidable contract is a legal agreement between two parties that may be unenforceable for any number of reasons. Read More Here. 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