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Flashcards in AMP Exam Prep Q's & A's Deck (34)
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1

Fannie Mae, Ginnie Mae, and Freddie Mac all

Purchase existing mortgage loans.

2

At closing, the listing broker's commission generally appears as a

debit to the seller.

3

What is typically found in a listing agreement?

All listing contracts tend to require similar information: type of listing agreement, broker's authority and responsibilities, names of all parties to the contract, brokerage firm, list price, real and personal property, description of property, commission, termination of the contract, and so on. They are not required to provide the dates of open houses.

4

What would would require the value of the land to be calculated separately from the value of the improvements?

Cost approach:
The cost approach requires a separate estimated value for the land. Estimated replacement or reproduction cost less accrued depreciation plus estimated land value equals the estimated value by the cost approach.

5

A suit to quiet title refers to:

The removal of a cloud on the title by court action.

6

What covenant ensures that a landlord will NOT interfere in the tenant's possession or use of the property?

Covenant of quiet enjoyment:
The covenant of quiet enjoyment is a promise by the lessor that the lessee may take possession of the premises, and the landlord will not interfere in the tenant's possession or use of the property.

7

A prospective buyer needs to borrow money to buy a house. The buyer applies for and obtains a real estate loan. Then the buyer signs a note and a mortgage. In this example, the buyer is referred to as the

The mortgagor.

The holder of a reversionary interest in a qualified fee estate might be able to obtain title to the property

8

The holder of a reversionary interest in a qualified fee estate might be able to obtain title to the property if;

The holder of the qualified fee estate breaks the condition.

If the condition is broken, the holder of the reversionary interest in a qualified fee estate can go court to try and obtain ownership.

9

The broker receives an earnest money deposit with a written offer to purchase that includes a ten-day acceptance clause. On the fifth day, before the offer is accepted, the buyer notifies the broker that she is withdrawing the offer and demands the return of her earnest money deposit. In this situation, the

Buyer has the right to revoke the offer at any time until it is accepted and recover the earnest money.

10

Security deposits should be listed on a closing statement as a credit to the

Buyer.

11

How is the due diligence fee reflected at the settlement meeting?

It is a credit to the buyer and a debit to the seller.

12

A seller has listed a property under an exclusive-agency listing with a broker. If the seller sells the property personally during the term of the listing to someone who learns about the property through the seller, the seller will owe the broker

No commission.

13

A type of agency practice in which there is only one principal is a

Single agency.

14

Antitrust laws prohibit competing brokers from setting a standard commission rate, known as

Price-fixing.

15

Fixtures are

Treated as real property.

Fixtures are conveyed by a deed. Trade fixtures are personal property and can be removed by the tenant.

16

A house with out-Dated plumbing is suffering from

Functional obsolescence.

Out-Dated, although functional, design features that are no longer considered desirable would be considered functional obsolescence.

17

Real estate property taxes that were NOT paid would show up on the closing statement as a

Debit to the seller.

Unpaid taxes are a lien that the seller must clear.

18

According to law, a trade fixture is usually treated as

Personal property

An item used in conducting business is considered a trade fixture and can be removed by the tenant. It is considered personal property (personalty), even though it may be attached to a building.

19

The purpose of a building code is to

Building codes are used to make sure building are structurally sound and safe.

20

Money that serves to compensate a seller in the event of a buyer default is known as

Liquidated damages.

21

The primary intent of zoning ordinances is to

Ensure that proposed land uses conform with the master plan.

22

The cost basis, or tax basis, of a property for the IRS is calculated in which of the following ways?

The purchase price plus allowable closing costs when purchased.

The cost or tax basis is simply the purchase price plus any IRS allowable closing costs.

23

Mechanic's lien:

A mechanic's lien gives security to persons or companies that perform labor or furnish material to improve real property, and can be filed when the owner has not fully paid for the work.

24

A lease that will terminate within one year of its inception

May be oral.

According to the statute of frauds, in general, oral leases for one year or less that can be performed within a year of their signing are enforceable.

25

Which event will terminate an agency in a broker-seller relationship?

The owner dies.

Common law holds that the death of either the broker or the seller ends the agency relationship created by the listing.

26

The sales price would show on a settlement statement as a

Credit to the seller and a debit to the buyer

27

Transactional brokerage.

A nonagent ( transactional broker) is not an agent of either party. A nonagent's job is simply to help both the buyer and the seller with the necessary paperwork and formalities involved in transferring ownership of real property.

28

The Civil Rights Act of 1866 prohibits discrimination based on:

Race, Color, Religion,or National Origin

29

Special assessments.

Taxes levied on real estate to fund public improvements.

Ex. sidewalks or sewers

30

A contract for the sale of real estate that does not state the consideration and is not signed by the parties is considered to be

Void:

A contract is void when a consideration is not stated, as it is an essential element of a contract.