METRO BROKERS Final Exam Questions
with Complete Solutions 100% Verified
Latest Update Top Rated
When can a seller sue a buyer for damages?
Failure to preform according to the terms of a contract is called default or breach
of contract
In most real estate contracts, in the event that the buyer defaults, the seller has
the option of retaining the buyers earnest money, so long as the amount is not
excessive.
Agents duties to the
POLAND
1. Personal performance
2. Obedience
3. Loyalty
4. Accountability
5. Notice
6. Due care
Different types of ownership estates:
Estates:
Estate in land: refers to the quality, quantity, nature and extent of ownership
interest that a person holds in real property.
Possessory estate: current right to occupy
Freehold estates: Dealing with ownership
Fee simple absolute: Most common and most complete for of ownership, owner
possesses the full bundle of rights (possess, control, enjoy, and dispose of the
property). Inheritable
Conditional Fee: "Strings attached" form of ownership
Fee simple determinable: subject to limitation or based on time... "so long as" will
automatically revert to estate or remainderman via revert clause.
Fee simple on condition subsequent: also subject to reversion but is not
automatic, requires court action "on the condition that"
Life estates: Ownership rights measured by a persons lifetime, not inheritable
Ordinary life estate: Created by a conveyance through deed, will or trust, received
by a life tenant, to possess and use for a lifetime. Reversionary.
Life estate Pur Autre Vie: life estate measured by the lifetime of an individual
other than the grantee
Non-possessory estate: future right to occupy.
,Includes: Remainderman estate, Reversionary estate
Legal life estates: Dower and curtsey (not recognized in Georgia)
Days of notification for tenants
Landlord to tenant: 60 days
Tenant to landlord: 30 days
Do not call list
A business must scrub their no call list against the national DNC list at least once
a month.
Exemptions include:
Existing business relationship: Where calls may be placed for up to 18 months
after the transaction.
A consumer who has made an inquiry may be called up to 3 months
Calls may be placed to consumers who have granted written permission
Solicitation calls may only be placed between the hours of 8am-9pm
Violations of the law my result in penalties of up to $16,000 per violation
Exclusive right to sell listin
Is the most common listing, has the most protection for broker because the
commission is assured if the property sells no matter by whom.
Has a definite date of termination. If no end date is mentioned, then it will
terminate in 1 year but you are considered negligent.
Gross Rent Multiplier (GRM) & Gross Income multiplies (GIM)
The basis of the income approach to value is principle of anticipation, which
states that the property's value is based not only on what is consists of today but
on whatever expectation there might be for future income and benefits.
The GRM and GIM methods establish a relationship between rental income and
sales price.
GRM (Gross Rent Multiplier) Applies most often to residential properties in the
rental market and uses monthly rent to estimate value.
1. Locate comps that were rented at the time of sale
2. Divide each comps sales price by its monthly rent
3. Reconcile the range of grms into an indicated GRM for the subject property,
multiply the subject property's estimated monthly rent by the GRM
GIM (Gross Income Multiplier) Applies most often to small commercial and
residential properties of five or more unites and uses annual income to estimate
value.
1. Locate comps that were rented at the time of sale.
2. Divide each comps sales price by its annual income .
3. Reconcile the range of gims into an indicated GIM for the the subject property,
multiply the subjects property's estimated monthly rent by the GIM
3 Types of depreciation
Depreciation is said to be either curable or incurable.
Curable- if it makes economic sense to fix it, if the cure would cost less than the
, value or the repair.
Incurable- If it does not make sense to fix/if the cost of cure would be more than
the value of the correction.
Physical Deterioration: Wear and Tear, exposure or lack of proper maintenance. It
is often curable
Functional obsolescence- Loss of value due to inadequate, over-adequate or out
of date improvements. Can be curable or incurable. Curable- outdated appliances.
Incurable- poor architectural design or floor plan.
Economic obsolescence- Arises from forces outside the property and beyond the
owners control, almost always incurable (location close to railroad, noise
pollution, high taxes, oversupply)
Types of property ownerships
Severalty ownership: when an estate is owned by a single person or entity.
Concurrent ownership: When two or more people simultaneously own rights in
the same land.
Tenancy in common: Each owner holds separate title to an undivided interest in
the property, does not have to be equal ownership shares. Each owner can sell,
mortgage, will or transferred without the consent of other owners as long as their
rights are not affected.
Joint tenancy: with right of survivorship, Co-tenants jointly own a single share,
with only one title regardless of how many tenants there are. Upon death, it is not
inheritable, but passes to other survivors
Tenancy in the entirety: This is a marital estate, which can only by created
between a husband and wife. Similar to joint tenancy
Community property: Applies only to husband and wife so long as they are
legally married, granting each spouse one half interest in any property acquired
during the marriage, regardless who holds legal title. Both spouses must sign for
any conveyance.
Tenancy in partnership: Each partner is jointly and severally liable for the
partnership obligations, can participate in management and cannot convey legal
interest in owned property without the consent of all partners.
Limited partnership: One or more general partners carry the management and
liabilities, but the limited partners are essentially just investors with liabilities
limited to their investment.
Joint venture: is a form of limited partnership created to complete a particular
business project, with no intent to establish a permanent relationship.
with Complete Solutions 100% Verified
Latest Update Top Rated
When can a seller sue a buyer for damages?
Failure to preform according to the terms of a contract is called default or breach
of contract
In most real estate contracts, in the event that the buyer defaults, the seller has
the option of retaining the buyers earnest money, so long as the amount is not
excessive.
Agents duties to the
POLAND
1. Personal performance
2. Obedience
3. Loyalty
4. Accountability
5. Notice
6. Due care
Different types of ownership estates:
Estates:
Estate in land: refers to the quality, quantity, nature and extent of ownership
interest that a person holds in real property.
Possessory estate: current right to occupy
Freehold estates: Dealing with ownership
Fee simple absolute: Most common and most complete for of ownership, owner
possesses the full bundle of rights (possess, control, enjoy, and dispose of the
property). Inheritable
Conditional Fee: "Strings attached" form of ownership
Fee simple determinable: subject to limitation or based on time... "so long as" will
automatically revert to estate or remainderman via revert clause.
Fee simple on condition subsequent: also subject to reversion but is not
automatic, requires court action "on the condition that"
Life estates: Ownership rights measured by a persons lifetime, not inheritable
Ordinary life estate: Created by a conveyance through deed, will or trust, received
by a life tenant, to possess and use for a lifetime. Reversionary.
Life estate Pur Autre Vie: life estate measured by the lifetime of an individual
other than the grantee
Non-possessory estate: future right to occupy.
,Includes: Remainderman estate, Reversionary estate
Legal life estates: Dower and curtsey (not recognized in Georgia)
Days of notification for tenants
Landlord to tenant: 60 days
Tenant to landlord: 30 days
Do not call list
A business must scrub their no call list against the national DNC list at least once
a month.
Exemptions include:
Existing business relationship: Where calls may be placed for up to 18 months
after the transaction.
A consumer who has made an inquiry may be called up to 3 months
Calls may be placed to consumers who have granted written permission
Solicitation calls may only be placed between the hours of 8am-9pm
Violations of the law my result in penalties of up to $16,000 per violation
Exclusive right to sell listin
Is the most common listing, has the most protection for broker because the
commission is assured if the property sells no matter by whom.
Has a definite date of termination. If no end date is mentioned, then it will
terminate in 1 year but you are considered negligent.
Gross Rent Multiplier (GRM) & Gross Income multiplies (GIM)
The basis of the income approach to value is principle of anticipation, which
states that the property's value is based not only on what is consists of today but
on whatever expectation there might be for future income and benefits.
The GRM and GIM methods establish a relationship between rental income and
sales price.
GRM (Gross Rent Multiplier) Applies most often to residential properties in the
rental market and uses monthly rent to estimate value.
1. Locate comps that were rented at the time of sale
2. Divide each comps sales price by its monthly rent
3. Reconcile the range of grms into an indicated GRM for the subject property,
multiply the subject property's estimated monthly rent by the GRM
GIM (Gross Income Multiplier) Applies most often to small commercial and
residential properties of five or more unites and uses annual income to estimate
value.
1. Locate comps that were rented at the time of sale.
2. Divide each comps sales price by its annual income .
3. Reconcile the range of gims into an indicated GIM for the the subject property,
multiply the subjects property's estimated monthly rent by the GIM
3 Types of depreciation
Depreciation is said to be either curable or incurable.
Curable- if it makes economic sense to fix it, if the cure would cost less than the
, value or the repair.
Incurable- If it does not make sense to fix/if the cost of cure would be more than
the value of the correction.
Physical Deterioration: Wear and Tear, exposure or lack of proper maintenance. It
is often curable
Functional obsolescence- Loss of value due to inadequate, over-adequate or out
of date improvements. Can be curable or incurable. Curable- outdated appliances.
Incurable- poor architectural design or floor plan.
Economic obsolescence- Arises from forces outside the property and beyond the
owners control, almost always incurable (location close to railroad, noise
pollution, high taxes, oversupply)
Types of property ownerships
Severalty ownership: when an estate is owned by a single person or entity.
Concurrent ownership: When two or more people simultaneously own rights in
the same land.
Tenancy in common: Each owner holds separate title to an undivided interest in
the property, does not have to be equal ownership shares. Each owner can sell,
mortgage, will or transferred without the consent of other owners as long as their
rights are not affected.
Joint tenancy: with right of survivorship, Co-tenants jointly own a single share,
with only one title regardless of how many tenants there are. Upon death, it is not
inheritable, but passes to other survivors
Tenancy in the entirety: This is a marital estate, which can only by created
between a husband and wife. Similar to joint tenancy
Community property: Applies only to husband and wife so long as they are
legally married, granting each spouse one half interest in any property acquired
during the marriage, regardless who holds legal title. Both spouses must sign for
any conveyance.
Tenancy in partnership: Each partner is jointly and severally liable for the
partnership obligations, can participate in management and cannot convey legal
interest in owned property without the consent of all partners.
Limited partnership: One or more general partners carry the management and
liabilities, but the limited partners are essentially just investors with liabilities
limited to their investment.
Joint venture: is a form of limited partnership created to complete a particular
business project, with no intent to establish a permanent relationship.
