They are typically wood, cold formed metal framing or steel. When an asset is no longer useful to its owner, then it is said to be past its economic life. What is the difference between commingling and conversion in real estate? The interest rate decreases not the down payment. A voidable contract is a legal agreement between two parties that may be unenforceable for any number of reasons. Real Estate Final Exam (150 Questions ) #1 4.7 (20 reviews) Term 1 / 157 A real estate licensee has a buyer agency agreement. A document acknowledging the payment of a mortgage debt. - 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. 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 intermediary who brings mortgage borrowers and mortgage lenders together, but does not use its own funds to originate mortgages. A licensed real estate broker that holds the license of a salesperson summary of your submission Obtained after you regustsr for the NYS Salesperson exam. Equal Credit Opportunity Act (ECOA) is a regulation that aims to give all legal individuals an equal opportunity to apply for loans. RE is one of the few industries that you could literally make one sale a month and live comfortably. Severance is taking an item that is attached to the land and removing it as personal property. Scarcity: Limited in supply, as supply diminishes, value increases. A chronic lung disease caused by inhaling asbestos fibers. This free practice exam is here to help you master the state-specific portion of the Missouri real estate exam. Its important the buyer and seller clearly understand the document as it becomes legally binding as soon as both parties sign. 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. These rates can vary significantly by state and may differ depending on the type of financial product youre using. How Many Questions Can You Miss on the California Real Estate Exam? The seller is usually entitled to keep the earnest money, because this is considered forfeiture of the contract. What is the seller in this situation? These rights include the right to use and/or occupy, 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. - A financial term used by lenders to express the ratio of a loan to the value of an asset (property) purchased. Your satisfaction is important to us, which is why we offer a no questions asked 30-day money back guarantee. Before I took the real estate express final exam I re-read every chapter summary and I quizzed myself on all the "check your understanding" questions. Percentage of a consumer's monthly gross income that goes towards paying debts. Which of the following BEST describes a contract that is voidable? Primary mortgage market is lending institution where mortgage originates. Fiduciary duties include: Loyalty, confidentiality, disclosure, obedience, reasonable care and diligence, accounting and more. 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. 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. Title to real estate is in the name of only ONE person or entity, it is an estate ownership in severalty i.e. - Monthly payments by a shareholder to a cooperative corporation. Also known as the "to have and to hold'" clause. 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. The zoning board of appeals is also responsible for granting variances. Registers and licenses all companies and individuals who conduct mortgage related services in New York. It generally has to do with performance. 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. This designated person is called a life tenant. The developer or owner organizing and offering for sale a condominium or cooperative development. 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. A blind offer in real estate is a purchase contract written by a buyer without seeing the property. Joists, beams, and roofs are typically supported by bearing walls. One of the most essential parts of the real estate exam is vocabulary. Salesperson Test : Questions. A contractual or consensual lien that is created by an action taken by the debtor, such as a mortgage loan to buy real estate. - The section of the New York Real Property Law pertaining to real estate salespersons and brokers. This year, Jelly leases a new piece of equipment from Squishy. - The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public. This scenario only works because it is an exclusive agency listing. Financial term used by lenders to express the ratio of a loan to the value of an asset (property) purchased. - The process by which a loan principal decreases over the life of a loan. Each method has its own set of benefits. Anything expired will NOT be accepted at the test-taking site. So in this case take $250,000 and multiply it by .06 or 6%. Also known as the "to have and to hold" clause. -Must be 18 years old, if younger it is voidable. Holding earnest money is only legal with written authorization, and even then it's best to deposit it as soon as possible. A chronic lung disease caused by inhaling asbestos fibers. The agent is not entitled to any compensation. The existing use is not as-of-right. Per 16 CFR 310.2. - Valuation method which compares a subject property's characteristics with those of comparable properties which have recently sold in similar transactions. A horizontal structural member that supports a floor. The lender in a traditional mortgage loan transaction is known as what? 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. An estimate of a property's value by an appraiser who is usually presumed to be expert in his work. The ability to have cash readily available to support the demands of running and maintaining real property. They are a great option for someone who knows they will be owning a specific property for a long time. 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. Who dictates trust accounts and when to deposit earnest money or other trust funds? U.S. Federal law designated to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed. There are some circumstances in real estate where a written contract is not required, so it is not ALL real estate contracts, but it is ALL real estate sales agreements. Metes: distances from point to point. Once youre there, you can post any exam-related question you may have or answer other peoples questions too. The course includes 6 full months of access to well . An employment contract between principal and agent, authorizing the, A card issued by the Department of State to each licensee which contains the, A person who on behalf of or for the benefit of another transacts business or, Disclosure Regarding Real Estate Agency Relationships Form, An agreement of employment of a broker to the exclusion of all other. 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. 200 cards Zach V. Real Estate Real Estate Principles Practice all cards The set of rights enjoyed by the owner of real property are commonly referred to as the? - Monthly payment by an owner of a condominium. - A key document provided during the purchase of a cooperative, which includes information required to be disclosed to the purchaser. CCRs limit the use of a particular property, a condominium, or a subdivision. Responsible for determining a municipality's tax rate. Structural walls that transfer building loads down to the foundation. Interpreter of the zoning ordinance. AKA Slope. Never feel alone! With a total of 150 questions, that means the score to pass is 105. What determines who pays for what and how much at closing? - Agent must communicate with client/must present all offers. Specifications- A document provided by Architects that describes the QUALITY of construction. How should Jelly classify this lease? If a court decides a remedy for a seller compelling them to sell the property, it is known as what? i.e. Value = Income / Rate. The agency enforces all federal environmental rules and regulations. These laws prohibit discrimination based on race, religion, color, sex, disability, children, nationality and more. They also come packaged with lower interest rates so if you qualify VA loans are the way to go. The rule of thumb is that refinancing is a good idea if you can reduce your interest rate by at least 2%. 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. A legal way to dissolve the relationship when the parties don't voluntarily agree to its termination is called. An appraisal technique whereby the value of an income producing property is estimating by capitalizing its net operating income using an appropriate capitalization rate. - The employer of an agent or broker; the broker's or agent's client. The best way to pass is to use all the resources available to you. A person whose principal business is the originating, financing, closing, selling and servicing of loans secured by the real property for institutional lenders on a contractual basis is referred to as a? This is common with sales contracts with extensive and detailed legal descriptions. They would most likely qualify for a refinance and they would definitely derive the most value from it. - The refusal to lend money within a specific area for various reasons. A lease commonly found in a building with a single, long-term tenant. A naturally occurring mineral fiber sometimes found in older homes. Joists, beams, and roofs are typically supported by bearing walls. Both terms pertain to spouses. Doing the math that gives you $15,000.00. PCBs known to leak into the ground from electrical transformers. Which of the following best describes a blind offer? - 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. During the listing agreement a commission of 6% is established. In Missouri, there are 140 questions on the exam (100 on the national portion and on the 40 state portion). Article 12-A of the NYS Real Property Law. A tenant who remains in possession of leased property after the expiration of the lease term. Security interest in the title to property for the benefit of those who have supplied labor or materials to improve the property. A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc. - Regulations established by state or local governments stating fully that structural requirements for building. Considered real property, which is conveyed by a deed. The amount of expenses that must be paid out of pocket before an insurer will pay any expenses. A conditional use permit is a zoning exception that allows you to use your property in non-conforming ways. - A naturally occurring mineral fiber sometimes found in older homes. It may also provide liability coverage against accidents in the home or on the property. urban environment, max amount of land can't exceed 10 acres (contiguous) Rural property, max is 200 acres for Family, and 100 acres for a single Rights associated with water riparian littoral encumbrance any claim or right against a property held by another that is not the fee title owner; includes encroachments, tax liens, and easements Severalty Enacted in 1974, which of the following is a regulation that aims to give all legal individuals an equal opportunity to apply for loans? Common forms of consideration include money, property in exchange, work or a promise to perform. 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. single individual owns real estate, therefore is 'severed' from all others. Which act amended the comprehensive environmental response, compensation, and liability act (also known as CERCLA)? 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. The seller ends up obtaining a buyer for the house themselves. Currently, most states have usury laws in place and set a cap on the maximum amount of interest a lender can charge. Any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments. This is an example of a balloon loan. Taking private property for public use, with fair compensation to the owner; exercising the right of eminent domain. - A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year. The sequence of historical transfers of title to a property. 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. Typically placed 12", 16" or 24" on center. Mandated warranty for new construction according to the NYS General Business Law 36-B. Jelly leases equipment used in its production processes from Squishy, Inc. The key difference between a leasehold estate and a freehold estate is the limitation of time. Beams are typically wood, cold formed metal framing or steel. A variance is a request to deviate from current zoning requirements. The actual interest rate charged, including loan fees and points. When calculating the amount of real estate taxes owed, calculations are based on what type of value? Any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments. If a legal description is too long to include in the body of a sales contract, a real estate professional should do what? Parcels without access to a public way may have an easement of access over adjacent land if crossing that land is absolutely necessary to reach the landlocked parcel and there has been some original intent to provide the lot with access. - 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. Proration is the allocation or division of money items at the closing. - Rights in real property to use the space above the surface of the land. Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, pets, and conflict resolution. Homeowners should be alert for friable asbestos and always seek professional advice in dealing with it. We have almost everything real estate related, and yes, that includes real estate exam prep videos. that must be transacted for a successful transfer of ownership to take place. A horizontal structural member that supports a floor. The Fair Housing Act is a law that prohibits discrimination in the buying, selling, renting or financing of housing. Some include real estate practice exams and interactive real estate exam prep. - 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. I have colleagues that worked for commissions on internships doing door to door pesticide sales - that is scraps. You can miss 15 to 30% percent of the questions in most states and still pass the exam. Value = Income / Rate. You must bring this with you when taking the State exam. The legal description describes where the property is located and the size of the lot. A right to cross or otherwise use someone else's property for a specified purpose. Drawings produced by Architects that describe the quantities of a. Each square, six miles by six miles, is called a township. - A federal prohibition that protects buyer/renter of a dwelling from seller/landlord discrimination with regards to race, color, religion, gender, national origin, familial status, or disability. Window blinds are screwed into the house, therefore they are considered a fixture in this example. Also called excess insurance. The market where mortgage loans and servicing rights are bought and sold between mortgage originators, mortgage aggregators (securitizers) and investors. With exclusive agency listings agents only get paid if they sell the property. A lien imposed by law upon a property to secure the payment of taxes. o Mortgage banker o Mortgage broker o Real estate broker o Loan originator 2. An accounting report issued periodically by the property manager to the owner outlining all income and expenditures for that accounting period. The owner's rights and obligations for a condominium. By far, the most substantial chunk of the real estate license exam is the vocabulary. - A type of deed where the grantor guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the grantee. Have a question about the real estate exam? When you say "final final," do you mean the PSI exam? Lease of property in which rental is based upon percentage of the volume of sales made upon the leased premises, usually provides for minimal rent. Type of SHORT-TERM loan, typically taken out for period 2 weeks to 3 years. - A chronic lung disease caused by inhaling asbestos fibers. A voidable contract is a legal agreement between two parties that may be unenforceable for any number of reasons. 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. - Drawings produced by Architects that describe the quantities of a building. A material used in pipes and paint of many older homes. A licensed real estate broker that holds the license of a salesperson. Usury is a form of predatory lending. Also determines the 'bulk' of a house or a building, meaning the maximum size of the structure (height, square footage, size of floor plate). While the time period varies from state-to-state its best practice to always deposit the money as soon as possible. Monthly payment by owner of a condominium. Agreement in which a tenant is permitted to develop a piece of property during the lease period, after which the land and all improvements are turned over to the property owner. In this situation, the new offer cannot be accepted unless the seller's counteroffer is withdrawn or hypothetically rejected. (c) Dividends. What is the document that defines the relationship between the broker and the seller? Its not typical in single-family homes or apartments. A legal proceeding by a lessor landlord to recover possession of real property. Find out how you can intelligently organize your Flashcards. A right to cross or otherwise use someone else's property for a specified person. 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. Mortgage bankers use their own funds, or funds borrowed from a warehouse lender, to fund mortgages. Each broker has an opportunity to earn the entire commission if they can come up with a buyer. When applied together, the various valuation methods provide the best estimate of the value of the income-producing real estate under evaluation. Also called excess insurance. For help with the national portion we have our real estate license quiz. TIC is when a parcel of real estate is owned by two or more tenants. - 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. - The safety valves for electrical systems. A written document produced by an Architect that describes the quality of construction for a building. a Federal law that makes real estate licensees liable for the disclosure of lead paint. Similar real estate exam preparation courses charge anywhere from $49 to $200. Valuation method which compares a subject property's characteristics with those of comparable properties which have recently sold in similar transactions. - A clause in a contract that states a mortgage must be obtained in order for the contract to be binding. Pays for what and how much at closing dissolve the relationship between broker. 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