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Agency Concepts and Managerial Duties. Legally, what is the nature of agency relationships between listing brokers and sellers? A legally-competent, wealthy investor is selling a large commercial property.
The year-old investor is represented by a one of the busiest, most successful brokerage firms in the state.
The closing date for the transaction coincides with an important overseas business trip the investor cannot postpone or cancel. Prior to leaving on the business trip, the investor executes a document authorizing a trusted friend to sign all documents related to the sale of the commercial property.
After accepting the appointment, the investor's friend owes fiduciary duties to the investor. Of the following choices, what is the name of the document executed by the investor?
Contracts and Contract Law. Which of the following lists the essential elements of an enforceable real estate contract?
A listing agreement did not include an authorization to accept a deposit. Which of the following is correct? Real Property Characteristics.
Which of the following is considered personal property? Homeowner Howard's home was foreclosed. Understandably, Howard was quite upset, and just before he was ordered to vacate the home, he removed all of the plumbing fixtures, lighting fixtures and built-in appliances from the home.
When Howard's lender listed the property for sale, the listing agent realized that the fixtures had been removed.
What is the act of removing the fixtures from the home called? Water Law. Which of the following correctly defines the doctrine of prior appropriation?
Freehold Estates. The lessee of an apartment and the owner of a condominium have many things in common. Which of the following is true for both?
Holding and Transferring Title. The deed specified as grantees simply as "Amanda Smith, Beatrice Smith, and Constance Smith" but did not specify the tenancy created.
Environmental Law. A real estate licensee has out-of-town relatives come to visit. He shows them several listings, but they simply are not interested in purchasing any of the listings he shows them.
Finally, after several long days of viewing listings, the licensee writes up a lease proposal with an option to purchase.
When an environmental hazard such as mold exists on a subject property, a typical remedy to cure the defect is abatement of the defect.
Land Descriptions. Which of the following is the method of legal description that uses carefully measured distances, angles and directions to define the boundaries of a parcel of real estate?
Which of the following correctly defines the term "baseline"? Development and Construction. Which model of city planning and development is defined by a central business district is in the middle of the model, with the city expanding in rings with different land uses?
Which model of land development is based on the theory that even though a city may have begun with a central business district CBD , other smaller CBDs develop on the outskirts of the city near the more valuable housing areas to allow shorter commutes from the outskirts of the city?
Housing Plus, Inc. The company primarily assists those owners of dwellings in existing subdivisions that are sufficiently spacious to qualify for the addition of an ADU.
Home owners typically add an ADU for the enhanced rental potential the units add to residential real estate.
But Housing Plus, Inc. Which of the following describes the work of Housing Plus, Inc.? Tax Implications on Real Estate. What portion of the sales proceeds is taxable?
Two people, an investor and a business property owner, want to sell their properties to each other in a exchange.
The investor owns a 10 acre parcel improved with an office building. The business property owner owns a parcel of real estate improved with an apartment building.
Here is the government survey system legal description for the realty owned by the business property owner: "The Northeast Quarter of the Northwest Quarter of the Southwest Quarter of Section Both properties have the same value, and neither property is encumbered with liens.
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Have a question? Just pick up the phone and call us for an instant answer. Of course, you can also e-mail the Help Desk.
We encourage you to watch our Sample to witness first hand how we approach subject matter and the quality of instruction.. You can view an on-line Sample here: Sample.
Improved Members Only. Quick Cram Study Guide. And last but not least there is also a so-called Forex and CFD Glossary with brief and easy-to-follow explanations of the most important trading terms.
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There are also some voice on the internet saying that they have run into problems with pay-outs in the past, however. But all-in-all, this regulated provider is a respectable online broker with a broad product range and comparably fair conditions.
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The Public Report for new subdivisions is not a type of appraisal. It is a disclosure statement issued by the DRE to inform the public about the new subdivision.
With some exceptions, developers of new subdivisions of 5 or more units must apply to the DRE for the Public Report. Without a Final Public Report from the DRE, developers are not allowed to close escrow on any real estate parcels in the new subdivision.
A home inspection report is not a type of appraisal. A home inspector reports on the condition of a property's major systems and components e.
None of the statements are correct. Per the principle of contribution, the value of an improvement aka a "component" is not what it cost, but what it adds to the subject property's value.
B and C are incorrect. These answer choices incorrectly use terminology from a different principle of appraisal, the principle of conformity.
Per the principle of conformity, property values tend to stabilize when homes in a neighborhood are similar to each other.
This principle theorizes that the value of a mansion in a neighborhood of small houses will fall, and this is called "regression.
This method of valuation is called the Cost Approach. It involves the appraiser estimating the cost to build the improvements new, deducting for accrued depreciation, and, finally, adding the value of the land.
The Replacement Cost Approach is used to estimate how much it would currently cost to build the improvements with the same utility, using today's materials and labor skills.
The estimate would include a cure for any outdated design i. The Reproduction Cost Approach would estimate how much it would cost to build an exact replica of the existing improvements, and the estimation would include--not correct--any outdated design.
The Market Data Approach aka the Sales Comparison Approach uses adjusted, recently-sold comparable properties to arrive at an estimate of the market value of the subject property.
If comparables or comps aren't available, the Cost Approach is an alternative method of valuation. The income approach is used to appraise income-producing properties.
The test question directs you to select a method of valuation for properties that do not produce income. A Mortgage is a security instrument, legal but infrequently used in California.
There are two parties: The borrower is called the "mortgagor" and the lender is called the "mortgagee.
The vowels in the words can serve as your memory aid. There are two "E"s in mortgagee and lender, and two "O"s in mortgagor and borrower.
The Deed of Trust has three parties: the trustor borrower , the beneficiary lender , and the trustee third party, acting on behalf of the lender.
A promissory note is not a security instrument, but an instrument that documents the terms of a contract to pay back money lent at a specified time or on demand in a financial transaction.
The option contract is not used for loans. An option contract is typically between the owner optionor of a parcel of real estate and a prospective buyer optionee considering whether or not to buy the property.
The owner promises not to sell the property to anyone else during the option term, and makes this promise for the nonrefundable "option fee. Why is this important?
The Deed of Trust nearly always contains a "Power of Sale" clause. This clause gives the trustee the authority, on behalf of the lender, to sell the property if the borrower defaults on the terms of the loan e.
However, if the loan is paid in full, the trustee must "reconvey" bare legal title back to the former borrower. Since it was created in the s, the Federal Housing Administration FHA loan program has helped millions of Americans become homeowners when they cannot afford the down payment on a unit residence.
When a loan is FHA-insured, lenders will agree to a loan-to-value ratio of up to The test question stating that Chen and Wang only put a 3.
This program of the federal government works by protecting lenders against loss in the event of borrower default. It does this through FHA mortgage default insurance.
The test question states that Chen and Wang turned to a government program for assistance, but a conventional loan is not guaranteed or insured by the government.
This insurance would protect the lender in the event of borrower default of the loan. Typically, it would not protect the lender for the entire outstanding balance of the loan.
Instead, PMI covers at least a portion of the deficiency between what is still owed on the loan and what the property sells for at the foreclosure sale.
FHA is not a direct lender. This helps you gain confidence in the platform and helps you resolve any issues that might come up during trading.
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