- 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. (Example: mortgage). 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. The seller ends up obtaining a buyer for the house themselves. *Primarily interpreted to prohibit racial discrimination. - A clause found in real estate contracts that may allow buyers to walk away from an agreed upon sale for any reason. 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. Exists when a principal does not stop an individual from representing them thus creating an agency relationship between the two. These drawings describe the QUANTITIES used in construction. It runs from the present owner back to the original owner of the property. - A contract in which all elements of a contract are specifically stated (offer, acceptance, consideration). 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. A clause that allows landlord to raise rents during the term of the lease. - The total amount collected from rents and other income producing opportunities. Which of the following consumers would most likely qualify and be able to derive the most benefit from a reverse mortgage? A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year. 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. A seller made a counteroffer and gave three days for acceptance. $$ Which of the following consumers would most likely qualify and be able to derive the most benefit from refinancing their mortgage? It's worth mentioning, both illegal commingling and conversion lead to criminal penalties and severe consequences. 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. The owner's rights and obligations for a condominium. - Any method of reducing taxable income resulting in a reduction of the payments to tax collecting entities, including state and federal governments. (e) Supplies. Since a month-to-month tenancy is a real estate contract, it must have consideration, offer and acceptance, legal object, and competent legal parties. Cash received in a tax-deferred exchange. Has no exemptions and contains the blanket statements that 'citizens have the same rights to inherit, buy, sell, or lease real and personal property.' Some include real estate practice exams and interactive real estate exam prep. If one has a possessory interest in property, that individual cannot own? A clause in a deed or lease that defines the type of interest and rights to be enjoyed by the grantee or lessee. Analysis of the competition in the marketplace that a property will face upon attempts. *Write the resulting set using the listing method. The length of the real estate exam varies from about 1.5 hours to 3.5 hours again, based on the state youre in. A licensed real estate broker that holds the license of a salesperson. Each broker has an opportunity to earn the entire commission if they can come up with a buyer. TIC is when a parcel of real estate is owned by two or more tenants. Final Exam Study Guide Real Estate U by vandykel, Mar. (h) Service revenue. - A licensed real estate broker that holds the license of a salesperson. A crime punishable by up to a year in prison and/or a $1,000 fine. 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? Ready to get started? - 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. - Valuation method which compares a subject property's characteristics with those of comparable properties which have recently sold in similar transactions. We have almost everything real estate related, and yes, that includes real estate exam prep videos. 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. Bundle of Legal Rights what would qualify as real estate Attached Garage Tyler owns a property that is on the Arkansas River. Bonus tip. Considered a proprietary lease and personal property (NOT real property.). Which of the following enforces all federal environmental rules and regulations? Drawings produced by Architects that describe the QUANTITIES of a building. This type of lease is called a: A percentage lease is a lease in which all or part of the rental is a specified percentage of gross income from the total sales made upon the property. Sometimes people forget there are hundreds of others in the same boat. This is very common in property management situations. SARA also required EPA to revise the Hazard Ranking System to ensure that it accurately assessed the relative degree of risk to human health and the environment posed. Time this up with when your exam is scheduled, and practice an exam question every day. The statute of frauds is a common law concept that requires written contracts for certain agreements to be legally binding. The market where mortgage loans and servicing rights are bought and sold between mortgage originators, mortgage aggregators (securitizers) and investors. Primary mortgage market is lending institution where mortgage originates. Structural walls that transfer building loads down to the foundation. In plain terms it allows truly innocent landowners to have immunity from legal liability. 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. One of the most essential parts of the real estate exam is vocabulary. Before the Fair Housing Act, some lenders circled certain local areas with a red line on a map, refusing to make loans within the circled areas based on some characteristics of property owners in the area. A company, individual or institution that originates mortgages. 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. 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. - A method of calculating the depreciation of an asset which assumes the asset will lose an equal amount of value each year. - Responsible for developing and controlling a municipality's comprehensive strategy for growth and development. 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. Now that I'm about to finish the course and take the practice exam i was reading the section named "it's time to prepare for your exam" and it says at the very end "A final note. An intermediary who brings mortgage borrowers and mortgage lenders together, but does not use its own funds to originate mortgages. Complete the statement and make it factually accurate. With a total of 120 questions (80 national and 40 state), that means the score to pass is 56 for the national and 28 for the state. A general agency in real estate is where an agent has limited power. The deed must contain an adequate formal legal description. What is the document that defines the relationship between the broker and the seller? A naturally occurring mineral fiber sometimes found in older homes. What is the illegal action or practice of lending money at unreasonably high rates of interest? Also called excess insurance. 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. Squishy set the annual rental to earn a rate of return of 5%, and this fact is known to Jelly. The lender in a traditional mortgage loan transaction is known as what? - An intermediary who brings mortgage borrowers and mortgage lenders together, but does not use its own funds to originate mortgages. -Must be 18 years old, if younger it is voidable. We created a Texas real estate exam prep course to help students pass their first time! The term refers to the process where a bank or lender packages mortgage loans to consumers for the purpose of quickly selling those loans on the secondary market. - 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. Structural walls that transfer building loads down to the foundations. 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. - A legal proceeding by a lessor landlord to recover possession of real property. Regulation Z/Truth in Lending Act of 1968. 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. Eminent Domain is a term used to describe the right of the government to takeover privately owned real estate usually despite the owners wishes. A blind offer in real estate is a purchase contract written by a buyer without seeing the property. This long -term lease (also referred to as land lease) is commonly used for commercial property. ILLEGAL. Considered real property, which is conveyed by a deed. - Legal policy mandates that a deed to real property be a matter of public record; therefore, subsequent to delivery and acceptance, a deed must be properly recorded. The practice of inducing homeowners in a particular neighborhood to sell their homes quickly, often at below market rates, by creating the fear that the entry of a minority group or groups into the neighborhood will cause a precipitous decline in property values. Most real estate sales contracts include contingency clauses, making them voidable. (g) Salaries and wages. 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. My understanding is that once you finish the course, you take the final exams for real estate express, then you get a certificates which you download and use to take the PSI a exam. Clauses protect the property owner against increases during the lease term. i.e. A borrower is a mortgagor while the lender is the mortgagee. - A right to cross or otherwise use someone else's property for a specified purpose. The market where mortgage loans and servicing rights are bought and sold between mortgage originators, mortgage aggregators (securitizers) and investors. A town or city that oversees and reviews building applications by licensed professionals to ensure compliance with local building code and zoning ordinances. Proration is the allocation or division of money items at the closing. 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. Also known as the "to have and to hold" clause. It is permissible to attach legal descriptions to the contract rather than writing them into the contract itself, but they must be attached. Travel Inc. therefore remits$65,800 to ShipAway. They cover an individual's house and assets in the home. 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. A freehold estate is an estate in which you have exclusive right to enjoy the possession of a property for an undefined length of time, while a leasehold estate is an estate held by one who rents or leases property for a period of time. Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Operations Management: Sustainability and Supply Chain Management, Calculus for Business, Economics, Life Sciences and Social Sciences, Karl E. Byleen, Michael R. Ziegler, Michae Ziegler, Raymond A. Barnett. 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. Click the card to flip Definition 1 / 157 A customer. must bring when take the NYS exam Misdemeanor crime punishable by up to one year in jail, a fine of less than $1,000, or both Listing Agent 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. These laws prohibit discrimination based on race, religion, color, sex, disability, children, nationality and more. Homeowners insurance is property insurance that covers losses and damages. Also called excess insurance. When pre-existing use of property in a zoned area is different from that specified zoning. Must pay state mandated real estate agent fees. Easement The primary public land-use control is zoning and issued by the government. The Americans with Disabilities Act (ADA) prohibits discrimination against people with disabilities in several areas, including employment, transportation, public accommodations, communications and access to state and local government' programs and services. A lien that only binds to a specific asset or property. The employer of an agent or broker; the broker's or agent's client. (b) Accounts payable. 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. This free practice exam is here to help you master the state-specific portion of the Kentucky real estate exam. 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