(Summary) Pearson Vue Real Estate Utah,Over 500 Questions And Correct Answers. Complete Verified Solution

(Summary) Pearson Vue Real Estate Utah,Over 500 Questions And Correct Answers. Complete Verified Solution Errors and Omissions (E&O) Insurance Protects companies and their workers or individuals against claims made by clients for inadequate work or negligent actions Puffing extravagant claims made by sellers in order to attract buyers Due on sale clause a stipulation in a mortgage or deed of trust, requiring a borrower to pay the entire loan balance upon the sale of the property for which a mortgage is being secured (entitles the lender to accelerate the loan) Mechanics lien Security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property Survey locating and measuring a property's boundary lines to determine the exact amount of land that a homeowner owns. It will also locate and measure any easements or encroachments on a property, which will be noted on a home's chain of title Escheat the reversion of property to the state on the owner's dying without legal heirs (private property that is abandoned the state may also acquire through escheat) Home equity the difference between the home's fair market value and the outstanding balance of all liens on the property Fixture any physical property that is permanently attached (fixed) to real property (usually land) Fixtures are treated as part of real property. Redlining any person or other entity whose business includes residential real-estate related transactions to discriminate against any person in making available such a transaction, or in the terms or conditions of such a transaction because of race or national origin THIS IS ILLEGAL (fair housing act) Fair Housing Act of 1968 Fair Housing Act makes it unlawful to discriminate in the terms, conditions, or privileges of sale of a dwelling because of race or national origin. Encumbrance An encumbrance is a claim against a property by a party that is not the owner. The most common types of encumbrance apply to real estate; these include mortgages, easements and property tax liens. Thought of as a burden or impediment 6 fiduciary duties of a real estate agent • Accounting: the agent must account for all funds entrusted to her and not commingle (combine) client costumer funds with her person and /or business funds • Care: the agent must use all of her skills to the best of her ability on behalf of the client • Confidentiality: the agent must keep confidential any information given to her by her client, especially information that may be damaging to the client in a negotiation • Disclosure: the agent must disclose to the client any information she receives that may benefit the client's position in negotiation • Loyalty: the agent owes undivided loyalty to the client and puts the client's interest above her own • Obedience: the agent must obey all lawful orders that the client gives her Partition a partition is a legal proceeding to divide property owned by two or more people Erosion erosion is the gradual loss of land by an act of nature, like property lost along the bank of a river Avulsion avulsion is the sudden loss of land by an act of nation like a landslide Adverse Possession when someone uses your property for a long period of time, you may end up losing the property or having your rights to the property restricted. Public grant a public grant of land it just the opposite of dedication; the government actually is giving property or having your rights to the property restricted Dedication when you dedicate property, you essentially give it up voluntarily to the government. An example is a developer giving up streets in a subdivision 4 kinds of real estate ownership • Tenancy in severalty: although it may sound like more, this type of ownership is by one person or a corporation • Tenancy in common: equal or unequal undivided ownership between two or more people is what characterizes this type of ownership. If an owner dies, the deceased person's share is conveyed to his or her heirs, not the other owners • Joint tenancy: the four unities that must exist for this type of ownership to exist are: o Interest: each owner has the same interest o Possession: all owners hold an undivided interest o Time: all owners receive their interest at the same time o Title: all owners acquire their interest with the same deed. o If one owner of joint tenancy dies, that owner's interest reverts to the other owners. • Tenancy by the entirety: ownership that's available only to married couples, tenancy by the entirety means that property may not be sold without the agreement of both parties. The right of survivorship exists to the extent that if one spouse dies, his/her interest reverts to the other spouse. • Condominium/cooperative: a condominium owner actually owns real estate. This ownership is usually the air space and an interest as a tenant in common of the land. A cooperative owner owns shares in a corporation that owns a building. The shareholder also gets a proprietary lease, which enables the shareholder to occupy a unit. • Foreclosure/forfeiture: Foreclosure is the loss of property to pay off a debt. Forfeiture is losing the property because of disobeying a condition in the deed • Grantor/grantee: the grantor gives, sells, or transfers the property to the grantee. The grantee receives the property. • Leasehold/leased fee: the leasehold interest is the tenant's interest in the property. The tenant holds the lease. The leased fee interest is the owner or landlord's interest • Mortgagor/mortgagee the mortgagor is the borrower. The mortgagee is the lender. The borrower gives a mortgage to the lender. The lender gives money to the borrower • Replacement cost/reproduction cost: these terms are associated with the cost approach to valuing a property. Replacement cost is the cost to produce a structure that is essentially the same as existing structure but using modern materials and standards. Reproduction cost is an estimate of the cost to produce exactly the same structure with the same materials. • Tax credit/tax deduction a tax credit is subtracted from taxes due. A tax deduction is subtracted from income. If all things are equal, a tax credit generally is more valuable than a tax deduction of the same amount Acre and mile • Acre = 43,560 square feet • Mile = 5,280 feet The brokerage fee charged by a listing broker is determined by the A. Local ordinance B. Local real estate board C. Multiple listing service D. Broker and the principal D. broker and the principal If XYZ company defaults on its unexpired lease and abandons the rented premises, the property manager SHOULD: A. Release XYZ from any further obligations and sublet the property B. Forfeit XYZ's security deposit and most recent rent payment C. Notify XYZ that is it responsible for the remaining lease payments D. Charge XYZ a penalty of three times the rent due C. Notify XYZ that is it responsible for the remaining lease payments a broker is TYPICALLY considered to be which of the following types of agents? A. A special agent B. A general agent C. A universal agent D. An individual agent A. A Special agent An apartment project with 160 units has 8 vacancies. The vacancy rate is: A. 5% B. 8% C. 92% D. 95% A. 5% A property manager works in the BEST interest of the: A. Tenant B. Owner C. Agent D. Bank B. Owner When a prospective buyer ask about a property's location in regard to a flood zone, the licensee SHOULD direct the buyer to: A. Calculate the average cost of flood insurance in the area B. Obtain an up to date flood map from FEMA C. Determine how far the property is from a flood plain D. Locate the property on a flood map B. Obtain an up to date flood map from FEMA Due to the homeowner's disability exemption property taxes of $4,000 dollars are reduced to $3,000 in a transaction. However, the listing licensee fails to disclose to the buyer the difference in the amount of property taxes to be paid by the buyer. Failing to disclose this material fact is an example of: A. Exemption B. Misrepresentation C. Misappropriation D. Mutual regression B. Misrepresentation Which of the following clauses in a conventional mortgage instrument entities the lender to accelerate the loan if the loan is assumed? A. Prepayment B. Right to sell C. Due on sale D. Variable interest rate C. Due on Sale Which of the following BEST describes a purpose of general liability insurance A. Insurance that protects a licensee in the event of an on the job injury B. Insurance that covers a licensee and a potential buyer who suffer a car crash while viewing properties C. Insurance that protects a company's assets if someone gets injured on company property D. Insurance that pays for lost wages for licensees who are employees C. Insurance that protects a company's assets if someone gets injured on company property Which of the following documents is usually prepared when a real estate buyer also purchases seller's riding lawn mower? A. An option B. A wraparound loan C. A conditional sale contract D. A bill of sale D. A bill of sale a verbal sales contract that involves the sale of real estate MAY: A. not be enforceable in a court action B. not be subject to RESPA C. be a common method of consummating a sale D. be assignable to a third party A. not be enforceable is a court action the donation of private land for public use is called: A. accretion B. dedication C. assignment D. condemnation D. dedication If the purchase price on a condominium unit is $60,000, the amount being mortgaged is $55,200 and there are 2.5 points on the mortgage, which of the following percentages is the loan to value ratio on the following transaction? A. 92% B. 90% C. 85% D. 82% A. 92% A veteran is entitled to which of the following benefits upon repayment of the full loan balance of a VA mortgage? A. Restoration of eligibility for future use B. Refund of any discount points paid by the previous seller C. Refund of the origination fee or points D. Partial refund of all interest paid on the loan A. Restoration of eligibility for future use Under which circumstance is a licensee permitted to use a client's money for personal use? A. With verbal permission from the broker B. With written permission from the buyer and seller C. If permitted by the state real estate commission D. Under no circumstance D. Under no circumstance a visually impaired person with a service animal completes an application for a rental of an apartment that has a vigorously enforced "no pets" policy in the building. According to the federal Fair Housing Act, the owner MAY: A. refuse to rent to the applicant as a result of the policy B. require the person to house the animal outside of the apartment C. require the person to restore any damage to the apartment that results from