Mortgage bankers use their own funds, or funds borrowed from a warehouse lender, to fund mortgages. 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 exclusive agency is entitled to commissions in addition to the commissions payable to the. Void contracts are not contracts because they lack an essential element of a contract and are thus unenforceable. Each broker has an opportunity to earn the entire commission if they can come up with a buyer. The market where mortgage loans and servicing rights are bought and sold between mortgage originators, mortgage aggregators (securitizers) and investors. The division of certain settlement costs between buyer and seller. A document acknowledging the payment of a mortgage debt. Rights in real property to use the space above the surface of the land. The agency enforces all federal environmental rules and regulations. The good news is that there are a lot of tools out there to help with passing the real estate exam. They also come packaged with lower interest rates so if you qualify VA loans are the way to go. TIC is when a parcel of real estate is owned by two or more tenants. Drawings produced by Architects that describe the QUANTITIES of a building. - Agent must act in accordance to clients demands/instructions. The refusal to lend money within a specific area for various reasons. The statute of frauds is a legal concept that requires certain types of contracts to be executed in writing (real estate included). 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. A valuation placed upon property by a public officer or a board, as a basis for taxation. - An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively. We created a Texas real estate exam prep course to help students pass their first time! The equipment has a fair value at the commencement of the lease of $76,024 and an estimated useful life of 7 years. This is very common in property management situations. The only way the buyer can back out and get their earnest money back is if something happens with the inspection, appraisal, or they have a contract clause offering that protection. Voidable contracts MAY be valid, often they appear valid but are not. A method of estimating the value of real property by calculating a current construction cost, subtracting accrued depreciation and adding a land value obtained from the market. Rights in real property to use the space above the surface of the land. Trusts can be created during an individual's lifetime, or they can be established following someone's death. That section can be used to study the topics featured on those 80 questions. Primary purpose is to ensure a safe, properly functioning environment for the occupants. - A deed which conveys simply the grantor's rights or interest in real estate, without any agreement or covenant as to the nature or extent of that interest, or any other covenants; usually used to remove a cloud from the title. Warehousing has to deal with loans and the secondary market. There are 3 acceptable types of property descriptions: Deed contains the broadest form of guarantee of title of any type of deed and provides the greatest protection to the grantee. An agreement of employment by a broker under which the exclusive right to sell for a specified period is granted to the broker; if a sale during the term of the agreement is made by the owner or by any other broker, the broker holding such exclusive right to sell if nevertheless ENTITLED TO COMPENSATION. If Federal or City building code is more stringent on particular issue, the more stringent Code will supersede the State code. Anything that lessens the bundle of rights. A written explanation, to be signed by a prospective buyer or seller of real estate, explaining to the client the role that the broker plays in the transaction. A trust works as it follows: the first party, the trustor or settlor, transfers a property upon the second party for the benefit of the third party, the beneficiary. PCBs known to leak into the ground from electrical transformers. - 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). 3% on a $400,000 property is $12,000. In Missouri, there are 140 questions on the exam (100 on the national portion and on the 40 state portion). Responsible for determining a municipality's tax rate. A material used in pipes and paint of many older homes. A clause in a deed or lease that defines the type of interest and rights to be enjoyed by the grantee or lessee. (d) Accounts receivable. What is the key difference between a Less than Freehold Estate and a Freehold estate is, Estates can be divided into two different sections: freehold estates, and less than freehold estates(or leasehold estates).The key difference between a leasehold estate and a freehold estate is the limitation of time. For example, they can't implement zoning code to raise what people pay for properties, they can, however, implement zoning codes to help promote the local economy. - Primary purpose is to "Protect the Public" - Requires a salesperson to be at least 18 years of age - Requires a broker to be at least 20 years of age Sponsor A licensed real estate broker that holds the license of a salesperson. There are three different main approaches that appraisers use while they make an appraisal. A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year. Mandated warranty for new construction according to the NYS General Business Law 36- B: - a Federal law that makes real estate licensees liable for the disclosure of lead paint. Local zoning ordinances often regulate all of the following except. This practice is illegal. A town or city agency that oversees and reviews building applications by licensed professionals to ensure compliance with local building code and zoning ordinances. A lien imposed by law upon a property to secure the payment of taxes. In title theory states, banks or mortgage lenders hold the title of a property until it is paid in full. The ability to buy and sell is also known as what essential element of value? - Primary purpose is to "Protect the Public" Historic Preservation/Landmark Commissions. A real estate agent advertised a home for $250,000. Choose the best answer. Click on the buttons below for a free state real estate practice exam. An appraisal technique whereby the value of an income producing property is estimated by capitalizing its net operating income using an appropriate capitalization rate. A right to cross or otherwise use someone else's property for a specified purpose. (Example: mortgage). Primary mortgage market is lending institution where mortgage originates. An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period. The authorization to improve or develop a particular property in a manner not authorized by zoning. These drawings describe the layout and construction of a house. From the question above; "Corporation, Sole Proprietorship, Limited Liability Company" are all real business structures. 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. A clause in a contract that states a mortgage must be obtained in order for the contract to be binding. Here are the general real estate license requirements that apply to all: For specifics look at our full guide on Real Estate License Requirements by State. 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. - A right to cross or otherwise use someone else's property for a specified purpose. Determines the usage allowed for a building or subdivision. The use of borrowed capital (mortgage) to increase the potential return of an investment. This is a bit of a trick question. The Federal Housing Administration (FHA) provides mortgage insurance on single-family, multifamily, manufactured home, and hospital loans made by FHA-approved lenders throughout the United States and its territories. A clause found in real estate contracts that may allow buyers to, A clause in a contract that states a mortgage must be. Ex: Property Manager. Remember, community property and tenants by the entirety is through marriage. - A town or city agency that oversees and reviews building applications by licensed professionals to ensure compliance with local building code and zoning ordinances. A career in real estate sales is one of the most lucrative routes a salesperson can take. A valuation placed upon property by a public officer or a board, as a basis for taxation. - A document issued by a governmental authority that a building is ready and fit for occupancy. This designated person is called a life tenant. Value = Income / Rate. What is the proper procedure for changing a contract that already has become binding? i.e. - Volunteers from state or private agencies who enforce fair housing by claiming to be home seekers, thereby finding out if brokers deal fairly with all clients/customers. NY Code provides minimum standards for all buildings in NY. These rates can vary significantly by state and may differ depending on the type of financial product youre using. Real Estate Final Exam (150 Questions ) #1 4.7 (20 reviews) Term 1 / 157 A real estate licensee has a buyer agency agreement. The real estate exam is a rigorous and challenging test that weeds out those who are not committed to being skilled agents. Structural walls that transfer building loads down to the foundation. - A mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets. - The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public. - An agreement between members of a trade to refrain from competition in specific market areas. What does matter is that the middle age couple has a mortgage with a high interest rate and at the current rates at much lower. A lease commonly found in a building with a single, long-term tenant. Mandated warranty for new construction according to the NYS General Business Law 36-B. A measure of land equal to 43,560 square feet. 2. Article 12-A of the NYS Real Property Law, The section of the New York Real Property Law. Volunteers from state or private agencies who enforce fair housing by claiming to be home seekers, thereby finding out if brokers deal fairly with all clients/customers. Tina and Tom are two unmarried individuals who own property with equal interests and without a right to survivorship. One of the most essential parts of the real estate exam is vocabulary. Travel Inc. therefore remits$65,800 to ShipAway. The key concepts and words you have to study are essential for obtaining your real estate license, so you must learn and become familiarized with them. - Accounts for the majority of mortgages. - A person who on behalf of or for the benefit of another transacts business or handles money or property not the person's own; such relationship implies great confidence and trust. Unlike with a joint tenancy, tenants in common have no rights of survivorship. 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. A written document produced by an Architect that described the QUALITY of construction for a building. A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year. The authorization to improve or develop a particular property in a manner not authorized by zoning. 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. Its important to know and understand the ones that deal with real estate as they directly relate to how you function as an agent. Joists, beams, and roofs are typically supported by bearing walls. - Responsible for developing and controlling a municipality's comprehensive strategy for growth and development. Escheat ensures that property always has ownership. A lien imposed by law upon a property to secure the payment of taxes. a Federal law that makes real estate licensees liable for the disclosure of lead paint. Mortgagee = Lender. A series of documents submitted for the review by a cooperative board. A person who on behalf of or for the benefit of another transacts business or handles money or property not the person's own; such relationship implies great confidence and trust. Any right to or interest in the land interfering with its use or transfer, or subjecting it to an obligation. A document issued by a governmental authority that a building is ready and fit for occupancy. Market value is never directly determined by the government. An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively. - A written explanation, to be signed by a prospective buyer or seller of real estate, explaining to the client the role that the broker plays in the transaction. An appraisal technique whereby the value of an income producing property is estimating by capitalizing its net operating income using an appropriate capitalization rate. Scarcity: Limited in supply, as supply diminishes, value increases. Remember, liquidated damages are the amount agreed to in advance that will compensate a party for any loss they suffer on a purchase contract. Liquidated damage is most likely to be found in which of the following documents? If a contract has a contingency it's voidable. Which term refers to the packaging of a number of mortgage loans for sale in the secondary mortgage market by a financial institution or mortgage banker who originated the loans? 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. Its important the buyer and seller clearly understand the document as it becomes legally binding as soon as both parties sign. This type of deed contains the strongest guarantee of title. The economic life of an asset could be different than its actual physical life. - A card issued by the Department of State to each licensee which contains the photo, name and business address of the licensee, and, in the case of a real estate salesperson, the name and business address of the broker with whom he or she is associated and shall certify that the person whose name appears thereon is a licensed real estate broker or salesperson. It is the highest form of real estate ownership that is recognized by law, in which the owner can enjoy the property to its fullest extent and is only limited by government powers which well cover later on. - An accounting statement that forecasts income and expenses for a period of time, typically five or more years. So in this case take $250,000 and multiply it by .06 or 6%. Our real estate practice exam pulls from a large pool of questions, so you can expect a different study experience each time you take it. Considered real property, which is conveyed by a deed. 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. Consideration is anything of legal value that is offered in exchange by one party for something of value from another party. Which of the following consumers would most likely qualify and be able to derive the most benefit from refinancing their mortgage? Real Estate Finance 30 Final Exam & Answer Key 1) For all practical purposes, an "Alienation Clause" is basically the same as a: a) Call Clause . Joists, beams, and roofs are typically supported by these. Most probable price that a property should bring if exposed for sale in the open market for a reasonable period of time, with both buyer and seller aware of current market conditions, neither being under duress. 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