Dorcas and Ralph were married for 15 years. Ralph, an accountant, always took care of the bills and other financial matters for the couple. Then Dorcas discovered that Ralph had failed to pay the property tax on their property for the last three years. Which of these is likely to happen?
Dorcas and Ralph will be required to sell their home to the state for the amount of property tax owed.
The state will place a condemnation order on their property so they can’t transfer their property until the debt is satisfied.
The state will place a mortgage lien on their home for the amount of property tax owed.
The state will place a tax lien on their property so it can’t be transferred without satisfying the debt.
Lenny is the listing agent for a property built in 1901. Old homes are very desirable in this area, and Lenny is expecting a fair amount of interest and multiple offers at the planned open house. Which action best demonstrates good faith to his seller client in this scenario?
Lenny presents all formal written offers as they come in, discussing the merits and drawbacks of each, but ultimately lets the owner decide what action to take.
Lenny presents only the best offer to the owner.
Lenny reviews the offers that have come in and presents the top candidates to the owner.
Lenny waits a week after the open house before presenting offers to let as many offers come in as possible.
Without this easement—usually involving access to a road—the owner requiring the right of passage would be landlocked.
Easement appurtenant
Easement by necessity
Easement by prescription
Easement in gross
Which valuation method estimates the proceeds that can be generated as a result of selling all assets and inventory and paying off short-term liabilities?
Comparable sales analysis
Income analysis
Liquidation analysis
The cost approach
A buyer looked at the legal description of the property they were interested in purchasing. They read the following: “Beginning at the corner of State Route 61 and Hallowell Road, north for 314 feet, then southwest for 193 feet.” In this description, what does “north for 314 feet” represent?
A benchmark
A bound
A mete
A monument
Which legal document states that the lender assigns or transfers the mortgage and promissory note to the purchaser?
Assignment of mortgage
Assumption of mortgage
Estoppel certificate
Novation
The Richards family farm is located on a 10-acre parcel of land, which is very rare in their area. However, the house is rundown and in need of many repairs. Most buyers in the area are looking for a move-in-ready home, which means they would need to either look elsewhere or wait several months for the home to be renovated. Which factor is most negatively impacting the value of the Richards’ property?
Demand
Scarcity
Transferability
Utility
Rex needs to handle some money he acquired during an “unsavory” business deal. He agrees to sign his boat over to his colleague, Ben, if Ben can launder the money and return it to Rex as part of a legal business deal. What kind of contract do Rex and Ben have?
Executed
Executory
Void
Voidable
Which of the following is an example of constructive eviction?
A landlord locks a tenant out of her unit after she fails to pay her rent for three months.
A tenant chooses not to renew a lease when the term expires and moves out.
A tenant dies.
A tenant moves out of the apartment after repeated unsuccessful requests to the landlord to repair the broken water heater.
Which method of transferring ownership to real property will real estate professionals most often encounter?
Deed
Descent
Escheat
Will
Poor Sarah! John has died and she no longer wishes to continue with their custom cabinet business, SJ Cabinets. John made the cabinets, after all! She wants to sell off all of their assets and inventory instead of selling the business itself. What method would most likely be used to estimate the value of SJ Cabinets?
Comparable sales analysis
Income analysis
Liquidation analysis
The cost approach
The Johnsons are shopping for a mortgage loan and are attracted to the below-market interest rate offered for the first year of an adjustable-rate mortgage (ARM). They notice that the rate increases sharply after the first adjustment period. What’s another term for this type of interest rate?
Bait and switch
Balloon payment
Fixed rate
Teaser rate
In Florida, the lender has the right to file a ______ suit against a borrower who defaults on the financial obligations in the promissory note.
Deficiency
Equity of redemption
Foreclosure
Surplus
What’s the primary purpose of the federal Fair Housing Act?
To protect buyers’ and renters’ right to have choices in housing without discriminatory limitation
To protect communities that have worked hard to develop their own neighborhood’s rights
To protect property owners’ right to make choices related to the disposition of their property
To protect real estate professionals from penalty when working with discriminatory clients
A homeowner owned an acreage in a rural area. They sold a small portion of it to a neighbor in an informal transaction but made no record of the sale or change of ownership. A developer offered the homeowner several million dollars for the entire acreage, and they eagerly accepted the offer. What covenant is the homeowner in danger of violating?
Against encumbrances
Quiet enjoyment
Seisin
Warranty
George and June Dobson are a married couple who bought their home three years ago, though they lived in it for only 18 months before traveling abroad and renting it out. Now they’ve been offered a price that’s $300,000 more than they paid for it, so they’ve decided to sell. What’s true about this situation?
They can exclude as much as $250,000 of their capital gains from the sale when filing their income taxes, as long as they file jointly.
They can exclude the entire amount of their capital gains from the sale when filing their income taxes as long as they file jointly.
They won’t be allowed to exclude the capital gains from the sale when they file their income taxes because they lived in the home for fewer than two of the preceding five years.
They won’t be allowed to exclude the capital gains from the sale when they file their income taxes because they owned the home for fewer than five years.