Superior Real Estate School: Study for Retake
Pre-Licensing Course Exam| Question and
Answers, 100% Correct| Latest 2024
A key principle of an estate for years is that it will: - ANSWER>>expire
automatically without notice at the end of the period designated
What is an estate for years? - ANSWER>>A lease for a specific period of time.
Is notice of termination required for an estate for years? - ANSWER>>No, because
the termination date is known in advance.
What are the fiduciary duties? - ANSWER>>Obedience, loyalty, disclosure,
confidentiality, accounting, reasonable care OLD CAR
OLD CAR - ANSWER>>Fiduciary duties
- Obedience
- Loyalty
- Disclosure
- Confidentiality
- Accountability
- Reasonable Care
What best describes the owner's original basis in his/her property? -
ANSWER>>for income tax purposes, the original cost (purchase price) of the
property plus certain allowable closing costs
The owner's basis is the cost of the property plus allowable closing costs. -
ANSWER>>adjustment basis
, Basis (financial interest) - ANSWER>>the IRS attributes to the owner of a property
for the purposes of determining depreciation and loss or gain
Construction loans risk - ANSWER>>Construction loans have the highest risk to a
lender.
This is because of all of the issues that can arise during construction of a home.
These loans are typically interest only or term loans and only last during the
period of construction.
Therefore, they have shorter repayment periods, not longer ones. The interest
rates are typically higher and at the end of construction, the borrower will usually
replace the construction loan with a permanent or take out loan.
Do listing agreements have a specific end date? - ANSWER>>Listings cannot have
an automatic extension. Listings have specific beginning and ending dates.
If the seller and brokerage agree to extend the listings then they can either sign a
new listing or sign an addendum to an existing listing agreement, but they do not
automatically renew at the end of their term.
Defeasible Fee - ANSWER>>A type of freehold estate conveying ownership
interest that comes with a condition. Also called Qualified Fee.
contain conditions or restrictions in the deed between the grantor and the
grantee. These are private deed restrictions and not government land use
controls so planning and zoning would not be involved. When the condition is
violated in a defeasible fee title to the property reverts back to the grantor.
Failure to disclose dual agency can result in - ANSWER>>disciplinary action by the
NCREC and the client may have a claim for breach of fiduciary duties in a lawsuit.
The Commission does not fine licensees and does not make orders for restitution
or get involved in fee disputes.
Pre-Licensing Course Exam| Question and
Answers, 100% Correct| Latest 2024
A key principle of an estate for years is that it will: - ANSWER>>expire
automatically without notice at the end of the period designated
What is an estate for years? - ANSWER>>A lease for a specific period of time.
Is notice of termination required for an estate for years? - ANSWER>>No, because
the termination date is known in advance.
What are the fiduciary duties? - ANSWER>>Obedience, loyalty, disclosure,
confidentiality, accounting, reasonable care OLD CAR
OLD CAR - ANSWER>>Fiduciary duties
- Obedience
- Loyalty
- Disclosure
- Confidentiality
- Accountability
- Reasonable Care
What best describes the owner's original basis in his/her property? -
ANSWER>>for income tax purposes, the original cost (purchase price) of the
property plus certain allowable closing costs
The owner's basis is the cost of the property plus allowable closing costs. -
ANSWER>>adjustment basis
, Basis (financial interest) - ANSWER>>the IRS attributes to the owner of a property
for the purposes of determining depreciation and loss or gain
Construction loans risk - ANSWER>>Construction loans have the highest risk to a
lender.
This is because of all of the issues that can arise during construction of a home.
These loans are typically interest only or term loans and only last during the
period of construction.
Therefore, they have shorter repayment periods, not longer ones. The interest
rates are typically higher and at the end of construction, the borrower will usually
replace the construction loan with a permanent or take out loan.
Do listing agreements have a specific end date? - ANSWER>>Listings cannot have
an automatic extension. Listings have specific beginning and ending dates.
If the seller and brokerage agree to extend the listings then they can either sign a
new listing or sign an addendum to an existing listing agreement, but they do not
automatically renew at the end of their term.
Defeasible Fee - ANSWER>>A type of freehold estate conveying ownership
interest that comes with a condition. Also called Qualified Fee.
contain conditions or restrictions in the deed between the grantor and the
grantee. These are private deed restrictions and not government land use
controls so planning and zoning would not be involved. When the condition is
violated in a defeasible fee title to the property reverts back to the grantor.
Failure to disclose dual agency can result in - ANSWER>>disciplinary action by the
NCREC and the client may have a claim for breach of fiduciary duties in a lawsuit.
The Commission does not fine licensees and does not make orders for restitution
or get involved in fee disputes.
