Ohio Real Estate Test and Study guide | Latest 2026/2027 Edition |Correct Questions with Correct Answers | A+ Graded and Fully Updated- Hondros College

Ohio Real Estate Test and Study guide | Latest 2026/2027 Edition |Correct Questions with Correct Answers | A+ Graded and Fully Updated- Hondros College 2026 / 2027 Academic Year Q: Ohio licensee Clark is meeting with prospective buyer client Duncan. Before they start talking specifics, which of the following items must Clark provide to Duncan? A. A buyer representation agreement B. A copy of his license card C. His brokerage's fair housing policy manual D. The Consumer Guide to Agency Relationships Licensees must provide the Consumer Guide to Agency Relationships to consumers at their first substantive contact with them. Q: If the Ohio Real Estate Commission decides to reverse the superintendent's dismissal of a complaint, what happens next? A formal hearing is scheduled. A new investigator is assigned. Parties go to informal mediation. The parties negotiate a settlement agreement. A. Q: Jeanine has an exclusive right to sell agreement with her listing agent, Tera, an Ohio real estate salesperson. Which of these statements about Tera's compensation is true? A protection clause in any listing agreement guarantees that Tera will be compensated if she or another listing agent sells the property. A protection clause in the exclusive right to sell agreement guarantees that Tera will be compensated no matter who sells the property. The exclusive agency agreement guarantees procuring cause, which means that the broker will be paid no matter who brings the buyer to the transaction. The exclusive right to sell agreement guarantees procuring cause, which means that the broker will be paid no matter who brings the buyer to the transaction. D Because the exclusive right to sell agreement guarantees that the client will compensate the brokerage firm no matter who finds the buyer (or the property), it's said to guarantee procuring cause. Q: After the OCRC makes its final determination, either party involved in the discrimination charge may proceed with the reconsideration process. What's this process for? Reconsideration is the informal resolution method in which a neutral third party—the mediator—helps disputing parties resolve their conflict. Reconsideration is the internal appeals process for parties who disagree with the commission's final determination. Reconsideration is the internal process for filing a cease-and-desist order, immediately halting the respondent's discriminatory practices. Reconsideration is the process in which parties to a dispute, with the assistance of a dispute resolution partner, develop options and consider alternatives that aim to reach a resolution. B If either party involved in a discrimination charge disagrees with the OCRC's final determination, that party can proceed with the internal appeals process of reconsideration. Q: Byron placed his Ohio salesperson license on deposit when he joined the Air Force. Following discharge from the military, when does Byron need to renew his license, if he so chooses? His first birthday following discharge. His third birthday following discharge. If his service was for four or more years, he can't renew his license and must instead go through the new license process. Six months from the date he was discharged A Licensees entering or actively serving in the armed forces, and their spouses, can place their license on deposit with the commission. The licensee's renewal date will be postponed until their first birthday after discharge. Q: If an Ohio partnership submits a broker's license application, what must it include? A conflict of interest report The names of all partners The names of every employee The partners' individual financial disclosures B Partnerships, LLPs, and associations must submit the names of all partners or members, respectively. Q: If Ohio licensees disagree with sanctions the Ohio Real Estate Commission imposes on them, what option can the licensee exercise? A. Appeal to the Court of Common Pleas. B. Appeal to the superintendent. C. Request a new formal hearing. D. Appeal to an administrative law judge. A Licensees have the opportunity to appeal disciplinary sanctions imposed by the real estate commission. The first line of appeal is the Court of Common Pleas. Next line is the Court of Appeals, followed by the Ohio Supreme Court. The only appeal that stays within the division or real estate commission is if the superintendent found that there wasn't sufficient evidence of a complaint. In this case the complainant can file an appeal within 15 days, which would then be heard at the next commission meeting. Q: Which of the following costs are eligible for disbursement from the Ohio real estate recovery fund? Damages for pain and suffering The claimant's actual loss The claimant's administrative expenses The claimant's attorney fees B Any actual, verifiable losses may be repaid from the real estate recovery fund. The superintendent of real estate sometimes approves court costs, too. Q: Who's responsible for auditing Ohio brokerages for their compliance with license laws? Ohio Association of REALTORS The division of real estate The Ohio revenue department The real estate commission The Ohio Division of Real Estate and Professional Licensing is responsible for auditing brokerages to ensure compliance with laws and regulations. Q: If the Ohio real estate superintendent determines that a complaint has merit, what's the next step in the process? Assign an investigator. Go to informal mediation. Interview the licensee. Schedule a hearing. When the superintendent determines whether to pursue a complaint, the investigator has already completed a report and the next step in the process is the formal hearing before commission. Q: In Ohio, which agreement is used to establish an agency relationship between a brokerage and a buyer? An exclusive purchaser agency agreement An exclusive right to sell agreement An independent contractor agreement The consumer guide to agency relationships An exclusive purchaser agency agreement is a legal document that formalizes your agency relationship with a buyer. Q: An Ohio salesperson who wishes to transfer to a different broker must first provide what to whom? A letter from the new broker to the old broker A letter of intent to transfer to the salesperson's current broker A request for a certificate of good standing to the division of real estate A request to transfer to the real estate commission B Transferring broker affiliation begins with a written notification of the intent to transfer. The next step would be for the salesperson to file a transfer application with the superintendent of real estate. Q: In Ohio, an agent who represents a party to a transaction in which another agent from the same brokerage represents the other party is known as a ______. Relationships Designated agent Facilitator Non-agent Sub-agent A. When you act as a designated agent, another licensee from your brokerage will represent the other party to the transaction Q: Ohio real estate commissioners serve terms that are how long? Five years Four years Three years Two years A. Real estate commission terms are five years long. They run from July 1 to June 30, and commissioner terms are staggered. Q: Matthew was called to active duty military service for the past eight months, so his salesperson's license expired and was suspended. How long does he have after discharge to reactivate his license? 120 days 180 days 30 days 90 days B. Matthew's license must be reactivated within six months of discharge. He must also complete his continuing education requirements and pay the renewal fee. Q: All Ohio agency agreements for residential properties must ____________. Automatically expire in 90 days Be approved by the superintendent of real estate in Ohio Be notarized Have a definite ending date D. All Ohio agency agreements for residential properties must contain an expiration date, a fair housing statement, a definition of blockbusting and a statement that it's illegal, and a place for the licensee and client to sign and date. Q: You work for PDQ Realty in Ohio under the supervision of broker Lyle. Your buddy in the next county gave you a referral fee. The check came to your office in your name. You deposit it. Is this okay? No, because agents can only be paid directly if they're paid in cash. No, because all compensation must come through your broker. Yes, if the check is endorsed by your broker, as well. Yes, provided your broker knows about the check. B Licensees must be paid only through their brokers. Q: Which of the following statements is true about the Ohio Civil Rights Commission? All commissioners serve their terms at the same exact time. The governor selects one person to serve as chairperson. The governor selects the executive director. The political affiliation of each commissioner is private. . B. The governor names one commissioner to serve as chairperson, and the commissioners select an executive director to head the commission Q: Under an Ohio limited reciprocity agreement, Britta's license in another state makes her eligible to get her Ohio license. Which of the following is a step Britta must take to get the license? Complete 80 hours of education. Pass the national portion of the Ohio exam. Submit a certified license history from her home state. Submit a detailed work history to the division of real estate. C. Britta will need to get a certified license history from her home state, and then submit it to the division of licensing along with other application documents, including proof that she's taken the Ohio real estate law course. After everything is received, she'll be notified that she can sit for the Ohio portion of the exam. Q: Which of the following is a true statement regarding Ohio property management trust accounts? Brokers aren't required to maintain a designated property management trust account. Brokers must maintain a separate ledger for each property owner. Brokers must maintain a separate trust account for each property owner. Property management trust accounts can't earn interest. B. Ohio property managers must maintain a separate ledger for each owner. It's permissible for property management trust accounts to earn interest. Q: Members of the Ohio Real Estate Commission are limited to how many consecutive terms on the commission? No legal limit One Three Two 2 Q: Consumers must submit an application for disbursement from the Ohio real estate recovery fund within ______ after the judgment was awarded. 30 days One year Six months Three months Claimants have 12 months after the legal proceedings are finished, including the exhaustion of all appeals, to file a claim against the real estate recovery fund. Q: Jeff and Jamie are limited partners organized in a limited liability partnership (LLP). They would like to use their partnership's name to apply for an Ohio broker's license. Which of the following requirements do they have to meet in order to be eligible? Both Jeff and Jamie must be licensed brokers and perform brokerage services solely for the partnership. Either Jeff or Jaime must be a licensed broker and have an outside brokerage business. Either Jeff or Jamie must be a licensed broker and perform brokerage services solely for the partnership. They must hire a licensed broker to serve as principal broker for the partnership. A. When an LLP applies for a broker's license, at least one of the partners must be a licensed broker. As with all companies applying for broker's licenses, the affiliated licensed broker must serve as a real estate broker only for the company. Q: Which of the following is a true statement about dual agency in Ohio? It requires advance, informed, written consent from all parties. It requires advance, written, notarized consent from all parties. It requires verbal or written consent from all parties to the transaction. It's illegal. A. In Ohio, a dual agency relationship must have the informed written consent of all parties to the transaction. The parties may sign their agreement on the reverse side of the Ohio agency disclosure form. Kelly is an Ohio broker. Jeff, an affiliated licensee, has just returned from a meeting with a buyer client and has handed her a check for earnest money. Which of the following is a true statement? Kelly is a fiduciary of the funds, but doesn't own them. Kelly is the beneficiary of the earnest money. Kelly may deposit the funds into the brokerage checking account. The buyer is the fiduciary of the earnest money funds. A. Brokers are fiduciaries/trustees of escrow funds and don't own them, but instead hold them in trust for the beneficiaries, or true owners of the funds. Kirk, an Ohio licensee, has a listing agreement with Bob. If Kirk or another agent locates the buyer, Kirk gets his listing commission. However, if Bob locates the buyer, Kirk does not earn a commission. What type of listing agreement do they have? Exclusive agency Exclusive right to sell Open Open exclusive A. This is an example of exclusive agency. The key is that if an agent locates the buyer, a listing commission has been earned. Which of the following best describes the Ohio Real Estate Commission? It consists of four licensed brokers and the superintendent. It consists of one unlicensed individual and four licensed brokers. It consists of one unlicensed individual, four licensed brokers, and the superintendent. It consists of one unlicensed individual, three licensed brokers, and the superintendent. C. The commission consists of four licensed brokers with 10 years' experience and one unlicensed member of the public. In addition, either the director of commerce or the superintendent of real estate serves as executive officer of the commission. What's the maximum number of Ohio commission members who can be from a single political party? Four One Three Two No more than three commission members can be affiliated with the same political party. For how long may Ohio brokers place their licenses on deposit with the division of real estate? Indefinitely One year Six months Three months A. Brokers can place their licenses on deposit indefinitely with the division. However, they must keep up with education and renewal requirements while their licenses are on deposit. After a charge has officially been filed with the OCRC (it's been signed, notarized, and submitted), what is the next step in the process? A commission official will file the appropriate paperwork, arrest the respondent, and notify the charging party of the arrest. The commission will assign the case to a civil rights field investigator, who'll send a notification letter and copy of the charge affidavit to both the charging party and the respondent. The commission will initiate a secret investigation into the matter, notifying both parties of its final determination upon conclusion of the investigation. The commission will issue a cease-and-desist order to the respondent, immediately halting the respondent's discriminatory practices. B. After a charge has been officially filed, the OCRC will assign the case to a civil rights field investigator, who will send a notification letter and charge affidavit to both parties involved. Francella moved out of the Ohio property she was renting. How long after she moves out does the property manager have to return her security deposit? 30 days 60 days One year Two years The lease terms will typically lay out how money is to be disbursed upon termination of the lease, but it definitely needs to happen within 30 days of the tenant vacating. Maude is a buyer's agent in Ohio working with Blaine, an unrepresented seller. Maude's buyer, Cintra, makes an offer on Blaine's property. Maude assists Blaine with the paperwork. What's Maude's relationship to the parties? She's a buyer's agent to Cintra and an undisclosed dual agent with the seller. She's a dual agent to the buyer and seller. She's an agent to Cintra, and the seller is her customer. The seller and buyer are her customers. C. Assisting with paperwork doesn't create agency. Which of the following statements is true about the Ohio Civil Rights Commission? It's composed of five appointed members who serve staggered five-year terms. It's composed of nine appointed members, one to represent each of the state's protected classes. The commission has six elected members who serve four-year terms. Members may be re elected twice. The OCRC is directed by Ohio's governor, speaker of the House of Representatives, and speaker of the Senate. A What's the maximum civil fine that the Ohio Real Estate Commission can impose on someone for a single violation of practicing real estate without a license? $1,000 $2,000 $2,500 $5,000 The commission can impose a civil penalty of up to $1,000 per violation for practicing real estate without a license. Every day that the individual practiced without a license is considered a separate violation. Charles is a real estate salesperson in Michigan. He'd like to obtain an Ohio salesperson license as well. What actions must he take? Complete 120 hours of pre-licensing education, pass the national and Ohio portions of the licensing exam, and provide a Consent to Service of Process. Complete 120 hours of pre-licensing education, pass the Ohio portion of the licensing exam, and provide a Consent to Service of Process. Complete 120 hours of pre-licensing education, pass the Ohio portion of the licensing exam, and submit a license application to the superintendent. Complete the 40 hour law course, pass the Ohio portion of the licensing exam, and submit a license application to the superintendent. A Which of the following is a true statement about dual agency in Ohio? It requires advance, informed, written consent from all parties. It requires advance, written, notarized consent from all parties. It requires verbal or written consent from all parties to the transaction. It's illegal. A. In Ohio, a dual agency relationship must have the informed written consent of all parties to the transaction. The parties may sign their agreement on the reverse side of the Ohio agency disclosure form. Which of the following is a duty that Ohio buyer's agent, Craig, owes to his clients, the Hellers? Answer the Hellers' questions about offers and counter-offers. Make sure the Hellers get approved for a mortgage for the house he finds them. Seek a property at a price and terms acceptable to the Hellers, even after they're parties to a contract to purchase. Tell the Hellers how much to offer for a property they want to purchase. A. Buyer's agents must answer the buyer's questions about offers and counter-offers, seek a property at a price and terms acceptable to the buyer, help the buyer prepare and present offers and counter-offers, and present offers to the seller or his agent. Five consumers won a judgment against an Ohio licensee for a total of $55,000. The consumers each applied to the recovery fund. How will they be paid? Consumers are paid in a ratio proportional to their losses. Consumers are paid on a first come, first served basis. Each consumer will receive an amount equal to their judgment. The fund will pay the first $40,000 and the licensee will be required to take out a loan for the remaining $15,000. A. The liability of the fund is limited to $40,000 for any one licensee. If $40,000 doesn't cover the claims of all individuals with grievances against a given licensee, then the amount is distributed in a ratio that mirrors their claims. All Ohio brokerage offices must have which of the following? A sign identifying the broker and all salespersons working at the office A sign on the premises identifying the licensee as a licensed broker At least one licensed salesperson in addition to the broker At least one unlicensed assistant B. All brokerage offices must have a sign identifying the licensee as a real estate broker, but there is no size requirement imposed by the Division of Real Estate and Professional Licensing. Ohio brokerage records should be retained for what length of time? Four years One year Seven years Three years D. ______ is when licensees predict or suggest to current homeowners that minorities' entry into a neighborhood will have negative results, such as falling property values or higher crime rates, with the intent of listing the properties themselves. Blockbusting Persuading Redlining Steering This illegal action of blockbusting—persuading owners to sell property cheaply because of the fear of people of another race or class moving into the neighborhood—is also called panic selling. What type of land use does NOT comply with the zoning restriction for its location, but is permitted because it benefits the public? Conditional Use Conditional uses (hospitals, schools, etc.) usually do not comply with zoning limitations. loan amount The amount the lender is risking is the loan amount, which is: Purchase Price - Down Payment = Loan Amount. What is NOT a feature of an FHA-insured loan? no MIP insurance FHA loans use a mutual mortgage insurance plan. In title theory states, what clause is unique to the mortgage? Defeasance clause is found in the mortgage A fancy word for "ownership" which will be transferred As an agent is showing a house to a customer, the agent notices a large vertical crack in the basement wall. What is the agent's duty? The crack on the wall is obvious and falls into the category of patent defects. The agent has no duty to disclose patent defects. The buyer operates under the doctrine of caveat emptor. A lead-based paint disclosure form is required for all residential dwellings built before January 1, 1978. When applicable, who must sign the form? buyer, seller, and both agents The listing agent is informed by the seller that the basement gets wet when it rains. The agent says nothing to the buyer. Who is liable for the failure to disclose the latent defect? The client is always liable for the acts of her agent. The agent may be liable to the seller for breaching a fiduciary duty. An implied contract is a(n) agreement not put into words, either written or verbal An example of an implied contract is a visit to a restaurant. All parties agree that payment of the bill is expected even if the matter is not discussed before the meal is consumed. The non-breaching party to a contract has a duty by law to The non-breaching party has a duty to do whatever is necessary to reduce the losses resulting from the breach. What type of deed would a buyer of real property prefer? A general warranty deed provides the most protection for the buyer. It has the strongest and broadest forms of guarantee of any type of deed. A quitclaim has no guarantees special warranty deed covers only title defects while the seller was in title. A sheriff's deed makes no promises or guarantees. Which is NOT a protected class under the Federal Fair Housing Act? Ancestry Protected: Race. Color. National Origin. Religion. Sex (including gender identity and sexual orientation) Familial Status. Disability. Complaints based on Title VIII should be filed with the Office of Equal Opportunity with the Department of Housing and Urban Development. A person discriminated against under the Civil Rights Act of 1866 must file a lawsuit in what court? Federal District Court Equity The difference between the value of a home and the total amount of any liens against it When first buying a home, the down payment is usually the only equity the property owner has Mortgage/Discount point a fee you pay to lower your interest rate on your home purchase or refinance. One discount point costs 1% of your home loan amount. For example, if you take out a mortgage for $100,000, one point will cost you $1,000. Potential Gross Income The income a property would generate if every unit was 100% occupied Effective Gross Income Potential gross income minus vacancy and collection losses. Net Income Effective gross income minus building expenses Revenues - Expenses Capitalization Rate The Rate of return on an investment Patent Defect A visible, apparent defect that can be seen in a reasonably thorough inspection of property. Caveat Emptor Latent Defect a hidden structural defect that would not be discovered by ordinary inspection Must be disclosed Regulation Z of the truth in lending Act This always deals with lending practices RESPA (Real Estate Settlement Procedures Act) a law requiring full disclosure of closing costs to buyer and seller. Sherman Antitrust Act Illegal price fixing, market fixing, boycotting law that banned the formation of trusts and monopolies in the United States Principal When a salesperson takes a property listing on behalf of their broker, the term for for the seller is: The listing is terminated The heirs are responsible What happens to the listing agreement when the seller dies? What happens when the owner dies in an exclusive right to sell? Listing is void if the seller or broker dies, but a sales contract survives the death of the parties Exclusive Right to Sell Listing Exclusive Agency Best agreement for realtor, receive commission no matter where the buyer is found What is the name of the listing where the broker only gets commish if the he finds the buyer Client Customer Your duty is to disclose to your [ ] When someone is a [ ] whatever they tell you is not confidential Race Religion Color Sex Nat'l Origin Handicap Familial status NOT Age exceptions Private club Religious org FSBO Less than 4 units Protected Classes under Fair Housing Act Tenants by entireties tenants in common Joint Tenants Severalty Husband and wife with right to survivorship Only form that can be held unequally Must be equal with right of survivorship One person quiet title action Lawsuit in order to establish a party's title - court action to settle questions about ownership Signed to clear a cloud on title, when the nessescary grantor is present Only can use quitclaim with someone to sign it, so to clear some clouds you need quiet title which is court order Eminent Domain Condemnation The right or power of the govt to take private prop for public use (POWER) The act or process of the govt taking private prop (PROCCESS) Offer and Acceptance Two essential components of a valid contract; a "meeting of the minds." credit Debit When you prepay something it is a [ ] to the seller If it is acrude (owed but hasn't been paid yet) [ ] to the seller A disclosure of APR (Annual Percentage Rate) - the interest charged for borrowing that represents the actual yearly cost of the loan expressed as a percentage. Regulation Z requires the lender to give the purchaser what? Adjustable-rate loan not good for who? Someone about to retire Defeasance (think defeated) Alienation Deed in lieu Acceleration Clause in a mortgage that says once the promissory note is paid, mortgage is void Clause in mortgage that says if you sell the property the total amount of the loan is now due Agreement between you and the bank that if you give the bank your real estate, they will not foreclose First step in foreclosure, call clause for breach of any mortgage provision race, color, religion, sex, national origin, age, marital status, public assistance Equal Credit Opportunity act protects what? usury laws Fix Maximum interest rates Encumberances A right or interest in property held by one other than the legal owner. Includes easements, restrictions and encroachments. Superfund Sites Contaminated properties where hazardous waste is located are called what by the EPA? 40,000 Limit of the recovery fund is [ ] per licensee 3 days how long does a landlord give a tenant to vacate if they are late on monthly payments Nobodyyyyy The buyer in a real estate transaction is represented by: Separable and divisible Mineral rights associated with real property are no. Should you use any comparables that are older than nine months Price + capital improvements - land value Depreciation on a property is based on Pamphlet on lead-based paint What do you need to give the buyers if the home was built before 1950? Value and net income What does an appraiser need to calculate capitalization rate? Term Discount points are on the amount paid for the loan, not on the purchase price Bill of sale Name of the document used to transfer title of furniture Special Agent What type of an agent are you when you are asked to list a property and find a buyer for it Residental first mortgages RESPA applies to what? Sherman Antitrust Act Price Fixing is prohibited by what? An attorney in fact A listing agreement must be singed by who to be valid? RESPA What gives lenders a booklet about shopping for a home loan to all prospective borrowers within 3 business days of loan application Statute of Frauds The be enforceable, a contract for the sale of real estate must be in writing and signed by the parties. This is true because of which law? deed of trust A mortgage that uses both real and personal property to secure the borrowers debt is a Seller Dies When is a listing terminated? Veteran or deceased veterans spouse Who can get a VA loan Quitclaim deed Deed that states there is a conveyance of interest Building codes and zoning regulations The police powers of the gov't include Redlining members of minority groups are prevented from obtaining money to purchase homes or property in predominantly white neighborhoods. An appraisal related to an FHA loan An appraiser needs to be state certified to perform what type of appraisal Blockbusting A process by which real estate agents convince white property owners to sell their houses at low prices because of fear that persons of color will soon move into the neighborhood steering Channeling prospective buyers or tenants to particular neighborhoods based upon their race, religion, national origin, or ancestry. market price The current price that a buyer is willing to pay Variance when their planned use of their property deviates from local zoning laws designed to protect property values. If granted, a [ ]acts as a waiver to some aspect of the zoning law or regulations. fully amortized loan A loan that requires payments of both principal and interest. When the last payment is made, the loan is retired and will be fully paid off The covenant of seisin states that the property is free from liens or other encumbrances except as noted in the deed. This clause gives the grantee notice of all encumbrances (liens, restrictions, and so forth) associated with the property. Warranty of Habitability You are legally required to keep rental premises livable in Ohio, under a legal doctrine Fee Simple Estate Right held by one or more persons to use and posses property to the exclusion of others The complete ownership of a property; may be either absolute or conditional. Think complete control Specific Lien General Lien Involuntary Lien A lien affecting or attaching only to a certain, specific parcel of land or piece of property. A lien that attaches to all property owned by an individual. Real and personal. A lien placed on property without the consent of the property owner. simple interest Compound interest paid on the principal alone - Interest on a loan for a home purchase is what type of interest? interest earned on both the principal amount and any interest already earned Mortgage banking company What is an example of a primary market lender? Perlocation Test Buyer concerned about whether soil is suitable for construction of septic system should get a RESPA What act does it state that the borrower is entitled to a loan estimate showing settlement costs within three days of submitting an application Fair Housing logo What needs to be displayed anywhere that a licensee is working? Void: Viiolates stature of frauds What happens to an oral agreement for the sale of real property? Adverse Possession A person takes possession & use of a property belonging to another. Possession must be open, notorious, hostile & uninterrupted for a certain period of time. Lease expiration A valid lease must have what To disclose the complete cost of credit to consumer loan applicants What is the main purpose of the Truth in Lending Act (Reg. Z) Novation Substituting a new obligation for an old one or substituting new parties to an existing obligation. Someone takes over someone else mortgage Restricts future owners of the property A deed restriction is a covenant that Suit of specific performance An order by the court that the parties must complete the contract as originally agreed Stops Cold Feet Option money is in the form of a promissory note When can an optionee's rights not be assigned Unenforceable A contract for the purchase and sale of real property does not contain an adequate land description so the agreement is: Seller disclosure statement Most common type of disclosure RESPA This is a rule under what act? A seller is prohibited from choosing a title insurance company for the buyer An option for the buyer to waive further inspection A lead based pain disclosure must include what? Determine replacement cost and deduct for depreciation Formula for replacement cost approach Abstract of Title condensed history of the ownership of a property 80% of units have the be people 55 or older Old person act requires what Pur Atre Vie life estate Is inheritable (life tenant dies and it can goe to his/her heirs until the measing life dies). Then it goes back to grantor or his heirs. caveat emptor let the buyer beware covenant of freehold warranty Covenants that represent seller's promise to protect the buyer against anyone who comes along later and claims paramount title to the property. Earnest Money a portion of the price of a home that the buyer deposits as evidence of good faith to indicate a serious purchase offer Purchase Money Mortgage A mortgage given by the seller to the buyer to cover all or part of the sale price. Seller financing. Open Mortgage a mortgage that has matured or is overdue and subject to foreclosure Blanket Mortgage A mortgage which covers more than one piece of real estate. Often used by a developer in the financing of undeveloped lots. Contains a partial release clause. Wraparound Mortgage larger loan that does not disturb underlying mortgage Conventional Loan A loan that requires no insurance or guarantee. let the buyer beware caveat emptor When a third party holds the future interest, it is called a remainder. The next guy down the line is the remainder Life Estate Pur Autre Vie How many square feet in a square yard 9 Nonconforming use A use of property that is permitted to continue after a zoning ordinance prohibiting it has been established for the area. conforming use Lawful use of a building or lot that complies with the provisions of the applicable zoning ordinance. legal title Full legal ownership of property and the bundle of rights as they apply to it. Contrasts with equitable title. no disclosure is required for [ ] loans business Primary purpose of RESPA provide borrowers with information about their closing costs and to eliminate kickbacks and referral fees You can be [ ] to sign a listing agreement, you can't be [ ] illiterate mentally incompetent Economic Base Analysis A comprehensive study of a locality's economy, focusing on the importance of exports. It should include an economic history, data on existing industries, trends, and forecasts of growth in wages and employment. power of attorney a legal document authorizing someone to act on your behalf Special, general, and universal agent all: Begin with Principal Can unrecorded deeds still be valid? yeah ad valorem tax a tax levied on the assessed value of real and personal property Difference between equitable and legal title While a legal title focuses on the duties of the property owner, equitable title refers to the enjoyment of the property. Equitable title is the benefits the buyer will get to use and enjoy when he or she becomes the legal owner. Take-out Commitment A lender's commitment to a contractor that permanent financing will be available to pay off a construction loan when the building is completed. FHA 203(b) The most popular FHA mortgage plan, with 3% or less as required down payment. Ground Lease An agreement for the use of the land only, sometimes secured by improvements placed on the land by the user. Sales Comparison Approach The process of estimating the value of a property by examining and comparing actual sales of comparable properties. Income Approach The method that adds all the income generated by the production of final goods and services to measure the gross domestic product. Cost Approach appraisal technique that analyzes the cost to build