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The prospective purchase of the property by a person related to the licensee by blood or marriage must be disclosed to all parties to the transaction.
In this case, the listing broker and the listing salesperson are not parties to the lease option transaction.
Failure to make this disclosure would be considered a violation of the agent's duty to disclose all material facts.
Abatement of a nuisance means the elimination, whether by the party injured, or through suit instituted by him, of that which endangers life or health, or interferes with the use and enjoyment of the property.
The law allows an injured party to remove or destroy the nuisance personally, providing he does so without unnecessary destruction or breach of the peace.
Although abatement must be done in an environmentally friendly manner, no special court order is necessary before abatement can ensue. The metes and bounds method of legal description is the primary method of legal description in many states.
In states where it is not the primary system, it is used to supplement the prevailing description method.
Typically the metes and bounds system uses physical features of the property called monuments , to identify aspects of the topography; and it uses directions and distances, to define the boundaries of the parcel.
The description is written in a running prose style, and works around the parcel in sequence from a point of beginning.
It may include references to other adjoining parcels and their owners , and it, in turn, could also be referred to in later surveys.
At the time the description is compiled, it may have been marked on the ground with man-made monuments placed where there were no suitable natural monuments.
The baseline is the starting point of latitude for all sectioned land within a given survey area. It divides the survey area into the north half and the south half.
The baseline is perpendicular to a principal meridian; and the point at which the two lines intersect is called the initial point.
Many communities in the United States have roads that run along survey baselines; these roads not coincidentally are named "Baseline Road".
The concentric ring model basically consists of zoning classifications in circles, with the central business district in the center.
The next circle is the transition zone of mixed residential and commercial uses. Next is the inner city zone or inner suburbs. The better quality middle class homes surround the inner city; and the outermost circle is called the commuter zone.
The multiple nuclei model of land development creates other nodes or nuclei in the city in addition to the CBD; thus the name multiple nuclei model.
The model originated from the idea that people have greater movement due to increased car ownership. This increase of movement allows for the specialization of regional centers or zoning classifications.
The work of Housing Plus, Inc. Infill typically refers to improvements built on underdeveloped land or in between existing improvements.
Infill development, as it pertains to residential properties, is frequently referred to as either housing infill e.
Test-Taking Tip: Urban infill development aka "land recycling" is a term used to describe redevelopment of blighted city areas through either construction on vacant land or reconstruction of obsolete improvements.
Greenfield development is growth on the periphery of an established subdivision that develops land previously dedicated to open space or agriculture.
C is incorrect. Brownfield development is redevelopment on a site previously polluted by a prior, usually industrial, use.
Commercial development typically refers to real estate developed specifically to produce income e. The exemption requires that the property must be the seller's primary residence for two of the last five years.
Depreciation cannot be taken on a personal residence. It can be taken only for investment property. The adjusted basis would be cost plus capital improvements.
However, for investment property, the adjusted basis would be cost plus improvements minus depreciation. Section of the United States Internal Revenue Code states that realized gain from real estate will not be recognized at the time of the exchange.
The exchange aka " like-kind exchange" allows owners of business or investment real property to defer capital gains taxes on the properties being exchanged.
This is a tax deferral, not a tax foregiveness: The capital gains taxes owed will typically be due when the new property is sold.
A like-kind exchange is real property used for business, trade, or investment purposes. The exchange of an office building for an apartment building falls within this category.
B is incorrect for two reasons. First, both properties are the same size i. Secondly, boot is owed, not if one property is smaller than the other, but if one property is less valuable than the other.
The test question stated that both properties have the same value and are not encumbered. Therefore, no boot will be owed. Test-Taking Tip: "Boot" is what the owner of the less valuable property pays the owner of the more valuable property in order to make the exchange even.
Boot is taxable to the person receiving it, and in the year received. A personal residence cannot be used in a tax-deferred exchange, no matter how high its market value.
The Sherman Anti-Trust Act prohibits price fixing. Therefore, a state real estate law that sets the maximum commission that a broker may charge for the sale of residential property would be against public policy.
All real estate listing commissions must be negotiable between seller and the listing broker, so the commission rate is determined by the broker's contract with his principal.
The essence of the anti-trust laws is that businesses cannot agree to restrain trade. Any statement or agreement that limits consumer choice could be construed as an anti-trust violation.
If two separate brokerages agree to divide a market along geographic lines, this is a violation. However, within a brokerage, it is acceptable for a brokerage to assign specific agents to certain geographic areas.
This is legal, because the agents within a brokerage are not competitors. They are working on behalf of the brokerage.
An estate for years is an estate with a definite commencement date and a definite termination date. An estate for years does not have to be literally for years; it can be of a duration that is less than one year, such as a six-month lease.
Estates for years with a duration of one year or more must be in writing to be enforceable; but estates for years with a duration of less than one year do not need to be in writing to be enforceable.
A periodic tenancy has no definite termination date. It continues from period to period until one of the parties gives notice of termination; and automatically renews at the end of the lease term for the same lease term.
For instance, a month-to-month lease automatically renews at the end of the month; and the renewed lease term is one month.
Most states provide that the party giving notice must do so no less than a certain amount of days before the end of the lease term to prevent auto-renewal.
A statement of purpose in any form or research documentation simply states the reasons for the research; and the type of research conducted.
It tells the lender what type of property is being appraised, as well as provides insight as to the purpose of the borrower.
For instance, if a single family residence is being sold to a borrower who will use the property for investment purposes, the appraiser will likely use the income approach to value, and the structure of the loan package is based partly on the borrower's purpose.
On the other hand, if the same single family residence is being purchased by a borrower who plans to use the home for a primary residence, the appraiser will likely use the sales comparison approach, and the loan package is customized to that borrower's purpose.
The listing price set by the owner usually sets the upper limit of market value under normal market conditions.
A prospective buyer's first offer usually sets the lower limit. In some cases, sellers have overinflated expectations about the market value of their home, and want a list price that is way above market value.
There are brokers who will sign such an over-priced listing, but such an act is not generally in the broker's best interest because the property is not likely to sell; and a listing is a liability for the broker until it sells.
Statement 1 describes the arrangement for title theory states. Statement 2 describes the arrangement for lien theory states.
In lien theory states, the buyer owns the property and has all real property rights therein; and the lender has a lien.
In title theory states, the borrower hypothecates to the lender. It is the lender that holds actual title during the term of the loan.
Loan interest is part of the loan payment. The others types of payments are held by the lender in a reserve account called impounds.
The lender pays these bills to the various providers as they become due. Per federal law, a reverse mortgage is only available to home owners who are years-old or older, and who have substantial equity in their homes.
Specific events include, for example, the death of the borrower, the borrower going to live in an assisted living facility, or the property being sold.
Because there is no repayment until one of these events occur, unpaid interest is added to the principal and the loan debt grows i.
Here, because Catherine Abioye is only years-old, she is too young for a reverse mortgage. Provided she qualifies in other ways, however, she will be considered a non-borrowing spouse and the reverse mortgage loan amount available to the Abiuoyes will be based upon her age.
Senior housing is unrelated to reverse mortgage, age-related loan limits. Note: There are two types of senior housing recognized under federal law.
Certain caregivers and maintenance staff are excepted from this rule. Under the federal Equal Credit Opportunity Act, it is unlawful to discriminate against a legally and mentally competent credit applicant on the basis of age.
Here, however Catherine Abioye is not a credit applicant because she is too young, per federal rules, to apply for a reverse mortgage.
Per federal law, reverse mortgage borrowers must be years-old or older. A younger, non-borrowing spouse will lower the loan maximum available to borrow.
A borrower refinancing a mortgage with a different lender has a 3-day right of rescission under TILA. Other loans where the borrower typically has a right of rescission include home equity loans and home equity lines of credit.
A, B, and C are incorrect. None of these borrowers would have a 3-day right of rescission under TILA.
Because the seller is now a junior lender on the property, and the primary loan is being refinanced, the seller's signature will be required on the Subordination Agreement.
A Subordination Agreement is a document in which an existing lender agrees to subordinate i. Lien priority is critical to lenders because, in the event of some type of borrower default like foreclosure, senior liens are paid from sale proceeds before junior liens.
Typically, lien priority is determined by the chronological date and time of recording. What a Subordination Agreement does is to adjust lien priority artificially, making a new loan senior to an older loan.
Note: A Subordination Agreement a separate document or a Subordination Clause a clause in the boilerplate language of a mortgage ultimately benefits borrowers, allowing them to refinance senior loans without having to pay off junior loans.
A is incorrect for two reasons. Buyers or borrowers do not sign Subordination Agreements. A Subordination Agreement is signed by a senior lienholder, willing to subordinate lien priority to a new lender.
The refinance lender would not normally be concerned with losing lien priority to this lender. Per the test question, there is already language in the recorded HELOC mortgage stating that the lender consents to remaining in junior position if the senior mortgage were ever refinanced.
There is no "Seniority Preservation Agreement. It will help you identify those instances where the examiners are trying to trick you with made-up terms and expressions.
Multiply the investment , by. Lenders usually require borrowers to pay the interest that accrues from the date of settlement to the end of the month.
In the majority of loan agreements, the first monthly payment is due on the first day of the second month after the close of escrow.
For instance, if close of escrow takes place on June 10, it is likely that the first loan payment will be due on August 1. This means that the borrower's closing costs will include interest on the loan from June 10 through June Since interest is paid monthly and in arrears, the interest for July 1 through July 31 is paid with the August 1 payment.
The buyer usually pays the fees for recordation of the note and deed of trust or mortgage, although this is a negotiation point of the transaction.
In a strong buyer's market, sellers might be willing to pay this fee. However, in the absence of an agreement otherwise, the buyer is required to pay this fee as a condition of the loan.
Prev Next Finish. Quality starts with Our practice exam writers:. Written by: Karen Bohler Real Estate Broker and Instructor Karen is a licensed real estate broker and certified real estate instructor.
She has worked in real estate sales for over 20 years. She teaches real estate sales and contract law for a real estate sales education company that specializes in the licensing of real estate sales agents and brokers across the country.
Karen designs curriculum and other educational materials for real estate sales training courses, licensing exam preparation and continuing education providers.
She earned her juris doctorate degree from Taft Law School. Bookmark Page. General Operation of a Real Estate Brokerage.
With regard to the general operation of a real estate brokerage, which of the following activities of ABC Brokerage, Inc.
Statement 1. Statement 2. Statement 3. Statements 1 and 2. A real estate broker should educate clients to protect the client's best interests and ensure a knowledgeable negotiating position.
However, client education involves a certain amount of risk, because whatever information the broker or salesperson in the firm conveys must be accurate and reliable.
Agents should refrain from educating clients about matters beyond their scope of authority.
If a client makes a harmful decision because the agent did not provide the client with the appropriate information, the client might have grounds for a negligence charge.
Depending on the market, the client's negotiating position may be more powerful if the client "treads lightly" with regard to contractual demands.
Agents should avoid discovery of facts, because the more facts an agent knows, the more facts the agent must disclose to the client; and the agent runs the risk of conveying inaccurate information.
Consider why a brokerage experiences financial difficulty even in prosperous times. One of the main reasons financial difficulty for a brokerage occurs is that the broker fails to stay abreast of the economic climate and direction of the real estate market.
With regard to financial planning for a real estate brokerage, which of the following statements is are TRUE? Statement 1: Even in prosperous times, the economic climate changes daily.
Brokerages need to plan expenditures based on factual assessment of the economic climate. Statement 2: The competitors may reduce commission levels, and thus to compete, a brokerage may need to reduce commission levels within the firm.
Statement 3: Advertising is vital to the success of a brokerage. A broker should take advantage of all products designed to promote real estate sales.
Statement 1 only. Statement 2 only. Statements 1 and 2 only. Statements 1, 2 and 3. Agency Concepts and Managerial Duties.
Legally, what is the nature of agency relationships between listing brokers and sellers? General agency.
Specific agency. Universal agency. Limited power of attorney. A legally-competent, wealthy investor is selling a large commercial property.
The year-old investor is represented by a one of the busiest, most successful brokerage firms in the state.
The closing date for the transaction coincides with an important overseas business trip the investor cannot postpone or cancel.
Prior to leaving on the business trip, the investor executes a document authorizing a trusted friend to sign all documents related to the sale of the commercial property.
After accepting the appointment, the investor's friend owes fiduciary duties to the investor. Of the following choices, what is the name of the document executed by the investor?
Listing Agreement. Purchase and Sale Agreement. Power of Attorney. Conservatorship or guardianship. Contracts and Contract Law.
Which of the following lists the essential elements of an enforceable real estate contract? A listing agreement did not include an authorization to accept a deposit.
Which of the following is correct? The authorization is implied. The broker cannot accept the deposit. None of the above. Real Property Characteristics.
Which of the following is considered personal property? Physical improvements. Growing trees. A deed. Homeowner Howard's home was foreclosed.
Understandably, Howard was quite upset, and just before he was ordered to vacate the home, he removed all of the plumbing fixtures, lighting fixtures and built-in appliances from the home.
When Howard's lender listed the property for sale, the listing agent realized that the fixtures had been removed. En aucun cas, les utilisateurs ne doivent tout miser sur un seul actif.
La plupart des entreprises ne les acceptent pas. De plus, le nombre de mots influe sur les classements des moteurs de recherche.
Cependant, le prix final peut varier. Vous pouvez commander des traductions dans les langues occidentales pour seulement 6.
De plus, un chef de projet personnel vous accompagne tout au long de votre projet. Comme par exemple : Des fiches produits e. Comme par exemple : Des articles de blog e.
Si le texte me convainc pleinement, le prix est secondaire. Le cadeau tendance Des chaussettes noires ou blanches ennuyeuses?
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