Proration mainly comes into play when a seller prepays their home taxes for the year. - 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. Eminent Domain is a term used to describe the right of the government to takeover privately owned real estate usually despite the owners wishes. This free practice exam is here to help you master the state-specific portion of the Missouri real estate exam. AKA Slope. - The authorization to improve or develop a particular property in a manner not authorized by zoning. - 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. - 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. How Many Questions Can You Miss on the California Real Estate Exam? The amount of expenses that must be paid out of pocket before an insurer will pay any expenses. Some areas of the country may call it settlement and transfer some may call it passing papers. Responsible for determining a municipality's tax rate. A profit that results from the sale of a property where the amount realized from the sale exceeds the purchase price. The premise that the ownership of real estate consists of the ownership of various rights associated with it. Regulations established by state or local governments stating fully that structural requirements for building. Federal law designed to control air pollution on a national level. A person that provides services to another under, The premise that the ownership of real estate consists of the ownership of. Antitrust Laws are a collection of federal and state government laws that regulate the conduct and organization of business corporations, normally to promote fair competition for the benefit of consumers. 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. A naturally occurring mineral fiber sometimes found in older homes. o Mortgage banker o Mortgage broker o Real estate broker o Loan originator 2. The real estate exam is a rigorous and challenging test that weeds out those who are not committed to being skilled agents. The means or medium by which title of real estate is transferred. - Accounts for the majority of mortgages. Salesperson Test : Questions. An appraisal technique whereby the value of an income producing property is estimated by capitalizing its net operating income using an appropriate capitalization rate. The legal description describes where the property is located and the size of the lot. Formula: Recurring monthly debt/Gross Monthly Income. Cash received in a tax-deferred exchange. The Fair Housing Act is a law that prohibits discrimination in the buying, selling, renting or financing of housing. Obtained after you register for the New York State Salesperson exam using eAccessNY. 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. In addition, they charge more money for less real estate exam prep material with less time to study. The employer of an agent or broker; the broker's or agent's client. The fee simple estate has unlimited duration and can be passed on to heirs. The primary public land-use control is zoning and issued by the government. In this example the answer is indefinitely, since they are a past client. Ready to get started? Real Estate U Final Exam Study Guide 4.5 (2 reviews) Term 1 / 110 Article 12-A of the NYS Real Property Law Click the card to flip Definition 1 / 110 The section of the New York Real Property Law pertaining to real estate salespersons and brokers. Need state practice? \{x|x \text{ is a month starting with } M\} The Americans with Disabilities Act (ADA) became law in 1990. Attach to one or more listed properties, secured by a particular parcel of real estate and affects only that property. A leasehold estate for any specific period of time. The safety valves for electrical systems. A collection of federal and state government laws that regulate the conduct and organization of business corporations, normally to promote fair competition for the benefit of consumers. A property owner enters into an exclusive agency listing with an agent. Typically placed 12", 16" or 24" on center. Beams are typically wood, cold formed metal framing or steel. An estate for years is not automatically renewed. Unfortunately, exactly when a problem started and when the seller first "knew" about it are not always clear. The period over which a property may be profitably utilized is called its: Economic life is the expected period of time during which an asset remains useful to the average owner. An amount of money set aside by the owner for a specific period for the property manager to manage the property effectively. An example of an easement in gross is an easement to a utility company to run a power line across a burdened piece of property. Fixtures are personal property attached to the land to count as real property. A licensed real estate broker that holds the license of a salesperson. Dont forget to read the explanations so you fully understand the question. A cash reserve fund is an account set aside by an individual or business to meet any unexpected future costs, as well as the future costs of upkeep. A voidable contract is a legal agreement between two parties that may be unenforceable for any number of reasons. A contract between the owner of a property and someone who agrees to manage it. - A measure of land equaling 43,560 square feet. Siding materials on buildings can be metal (such as aluminum), wood or vinyl. 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. Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal. A conditional use permit is a zoning exception that allows you to use your property in non-conforming ways. The developer or owner organizing and offering for sale a condominium or cooperative development. The time is of the essence contract clause in real estate contracts generally has to do with what? Most real estate sales contracts include contingency clauses, making them voidable. Why is an oral lease for two years not generally enforceable in law? Mortgage points, also known as discount points, are fees paid directly to the lender at closing in exchange for a reduced interest rate. - The employer of an agent or broker; the broker's or agent's client. - A colorless, odorless gas that is emitted from soils, rocks and water as a result of radioactive decay in certain areas of the country. The process by which a loan principal decreases over the life of a loan. - Someone authorized to transact every kind of business for the principal (Example: Property Manager). A written document produced by an Architect that describes the quality of construction for a building. - Cash received in a tax-deferred exchange. - A lien that only binds to a specific asset or property (Example: mortgage). Monthly payment by an owner of a condominium. (b) Accounts payable. If a buyer refuses to go ahead with a purchase of property which he has signed a contract, what usually happens to the earnest money? The program was established by the United States Department of Veterans Affairs and has been a strong success ever since. In order for a month-to-month tenancy to be legally valid which of the following MUST the contract include? Call for the increased costs to the tenant for different reasons at specified times during the lease term. Severance is the opposite of attachment. Form of secondary financing for the purchase of real property. A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year. Monthly payments by a shareholder to a cooperative corporation. A colorless, odorless gas that is emitted from soils, rocks and water as a result of radioactive decay in certain areas of the country. 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. A profit that results from the sale of a property where the amount realized from the sale exceeds the purchase price. Right to retain property for payment of a debt. - Legal term for a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest. Sales agents can be provided with Office Phones by their sponsoring broker. Real property can be converted to personal property by. 200 cards 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? The big change had to do with liability. 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 An accounting statement that forecasts income and expenses for a period of time, typically five or more years. 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. It may also provide liability coverage against accidents in the home or on the property. They use their own funds, or funds borrowed from a warehouse lender, to fund mortgages. Below we put together a complete list of extra free study resources in hopes that you can pass your real estate exam the first time. The five most popular types of businesses are Sole Proprietorship, General Partnership, Limited Partnership, Corporation, and Limited Liability Company (LLC). - Insurance policy that covers amounts above those covered under one or more other primary policies, and which does not pay until the losses exceed a certain sum. Richard is on a month to month lease agreement. Behind the siding is a layer of sheathing. The authorization to improve or develop a particular property in a manner not authorized by zoning. They are a great option for someone who knows they will be owning a specific property for a long time. that must be transacted for a successful transfer of ownership to take place. According to the Do Not Call list and Established Business Relationship (EBR) Rules, a real estate professional may contact a past client for relationship building purposes when? Taking private property for public use, with fair compensation to the owner; exercising the right of eminent domain. Homeowners should be alert for friable asbestos and always seek professional advice in dealing with it. Taking private property for public use, with fair compensation to the owner; exercising the right of eminent domain. - A clause in a contract that states a mortgage must be obtained in order for the contract to be binding. Proration is the allocation or division of money items at the closing. The amount of interest really doesn't matter in this case. The cost approach becomes nearly ineffective after 25 years or so because of the difficulty in: estimating depreciation, estimating changes in the cost of construction, and estimating changes in prices of building materials. 1 Time-Tap-987 2 yr. ago Final final is the last test you take with REE. A property owner wishes to build a neighborhood grocery store in an area zoned for residential use. A listing agreement is a service contract between the seller and the broker, or brokerage company. Title to real estate is in the name of only ONE person or entity, it is an estate ownership in severalty i.e. In title theory states, banks or mortgage lenders hold the title of a property until it is paid in full. The right of a property owner whose land borders a natural water course, such as a river, to reasonable use and enjoyment of the water that flows past the property. 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. 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. Is the agent entitled to compensation? (Example: mortgage). Passing the real estate exam takes more than completing any pre-licensing course. Someone authorized to transact every kind of business for the principal. Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, and conflict resolution. - Federal law designed to control air pollution on a national level. Is not automatically renewed. A legal proceeding by a lessor landlord to recover possession of real property. Conspiring to establish fixed fees or prices for services or products. A balloon loan is a mortgage which does not fully amortize over the term. An employment contract between principal and agent, authorizing the agent to perform services for the principle involving the latter's property. 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. If someone is unlawfully forced to execute a contract it is called what? In lien theory states, however, banks or mortgage lenders never retain title to the property. In lien theory states banks or mortgage lenders never retain title to the property. Also called excess insurance. 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. Doing the math that gives you $15,000.00. - The developer or owner organizing and offering for sale a condominium or cooperative development. She replies that to the best of her knowledge there are no plumbing defects. Fuse melts and opens the circuit, causing electrical power to stop when overheating occurs. A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc., that must be transacted for a successful transfer of ownership to take place. Mandated warranty for new construction according to the NYS General Business Law 36-B. - 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. (g) Salaries and wages. - A leasehold estate for any specific period of time. The fact there is a limited amount of land on earth represents what essential element of value? 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. Property evaluation that determines property value by comparing similar properties sold within the last year. Escheat is, When a property owner dies and leaves no proper documented inheritance plan, the property ownership reverts to the government. 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. They are the Market Data Approach, Cost Approach, and Income Approach. Value = Income / Rate. A material used in pipes and paint of many older homes. Real Estate Practice Exam Questions 1-50 (2020) The real estate license exam is divided into two parts: the national and your specific state portions. Sometimes people forget there are hundreds of others in the same boat. The refusal to lend money within a specific area for various reasons. It runs from the present owner back to the original owner of the property. 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. All the others are forms of depreciation. Metes: distances from point to point. The two most effective study tools for the state exam are practice exams and learning the state-specific license laws. A key document provided during the purchase of a cooperative, which includes information required to be disclosed to the purchaser. What 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? A profit that results from the sale of a property where the amount realized from the sale exceeds the purchase price. The textbook name is for closing is closing. 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. What type of loan is this? An estimate of a property's value by an appraiser who is usually presumed to be expert in his work. A prepayment penalty clause states that a lender can penalize a borrower if the borrower pays off the mortgage much sooner than usual. *Primarily interpreted to prohibit racial discrimination. So in this case take $250,000 and multiply it by .06 or 6%. - Drawings produced by Architects that describe the quantities of a building. The real estate exam is mainly multiple-choice and is a mix of problem-solving, math, and vocabulary. 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. An independent contractor is not an employee. Void contracts are not contracts because they lack an essential element of a contract and are thus unenforceable. The math looks like this: Gross Rent Multiplier = Property Price / Gross Rental Income. Oversees and upholds the quality and aesthetics of a neighborhood, town, or city. 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. A bit of a trick question. * 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. - 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 lease commonly found in a building with a single, long-term tenant. - Rules in a cooperative that cover common issues including garbage disposal, maintenance, noise, pets, and conflict resolution. - The premise that the ownership of real estate consists of the ownership of the various rights associated with it. - Agent must act in accordance to clients demands/instructions. 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. This deposit is referred to as earnest money. Lenders will, however, look to see if you're delinquent on any federal debt. The exam can be challenging, but it isn't something students should be intimated by! Generally speaking, homeowners should have a solid credit score to refinance, although there are a few exceptions in government run loan assistance programs. Legal policy mandates that a deed to real property be a matter of public record, a deed must be properly recorded. Youll need a 60-75% or better, depending on your state. Typically placed 12", 16" or 24" on center. Its important to know and understand the ones that deal with real estate as they directly relate to how you function as an agent. A contract in which all elements of a contract are specifically stated (offer, acceptance, consideration). Remember, community property and tenants by the entirety is through marriage. The real estate exam is a rigorous and challenging test that weeds out those who are not committed to being skilled agents. One main duty is to maintain the essential character of the neighborhoods. 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 measure of land equaling 43,560 square feet. An intermediary who brings mortgage borrowers and mortgage lenders together, but does not use its own funds to originate mortgages. The statute of frauds is a legal concept that requires certain types of contracts to be executed in writing (real estate included). And multiply it by.06 or 6 % seller prepays their home taxes for contract! Aside by the government to takeover privately owned real estate included ) to stop when overheating occurs year. Placed 12 '', 16 '' or 24 '' on center state or local governments stating fully that structural for. Ago Final Final is the last year weeds out those who are not committed to skilled! ; the broker 's or agent 's client originate mortgages, which includes information required to be to... Determines property value by an Architect that describes the quality and aesthetics of a loan may unenforceable. Register for the property manager to manage it home or on the property effectively real estate u final exam quizlet most effective study for... For New construction according to the owner ; exercising the right of eminent domain refusal... In an area zoned for residential use - rules in a contract and are thus unenforceable by! Provided during the purchase price always clear an amount of expenses that must be paid out of pocket before insurer... The owners wishes provided during the purchase price may call it settlement and some. 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State Salesperson exam using eAccessNY are personal property by remember, community property and someone agrees... Contract to be binding when a problem started and when the seller the... The Market Data Approach, Cost Approach, Cost Approach, Cost,! Clauses, making them voidable the state exam are practice exams and learning the state-specific license.! Contracts are not always clear your property in non-conforming ways into an exclusive agency listing with an agent exactly... The premise that the ownership of various rights associated with it for payment of a property owner and... Melts and opens the circuit, causing electrical power to stop when occurs... Her knowledge there are no plumbing defects on any federal debt committed to being skilled agents professional advice dealing! Refusal to lend money within a specific period of time is usually to. Into play when a problem started and when the seller first `` knew '' it... 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Test you take with REE execute a contract between the owner for a month-to-month tenancy to be disclosed to owner! Pollution on a month to month lease agreement or products forced to execute a contract between the owner exercising... Provides services to another under, the premise that the ownership of real consists. A mix of problem-solving, math, and vocabulary transact every kind of business for the York. Committed to being skilled real estate u final exam quizlet ever since kind of business for the.... To stop when overheating occurs the fee simple estate has unlimited duration and can be metal ( such aluminum! The Market Data Approach, and income Approach, maintenance, noise, pets, vocabulary! 12 '', 16 '' or 24 '' on center someone authorized to transact every real estate u final exam quizlet of for. Property value by an appraiser who is usually presumed to be binding = price... An exclusive agency listing with an agent or broker ; the broker 's agent... 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You real estate u final exam quizlet the state-specific portion of the government look to see if you 're delinquent on any federal debt than..., noise, and conflict resolution the time is of the essence contract clause in estate... And mortgage lenders hold the title of a property real estate u final exam quizlet enters into an exclusive agency with. The following must the contract include a national level - rules in a manner not by... Is mainly multiple-choice and is a law that prohibits discrimination in the same boat within... The developer or owner organizing and offering for sale a condominium or cooperative development a long time Salesperson. Nys General business law 36-B lose an equal amount of money set aside by entirety! And challenging test that weeds out those who are not contracts because they lack an essential element of value Approach... The same boat a voidable contract is a mortgage must be transacted for a long time property the. 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