Which valuation method estimates the value of all types of improvements in order to determine how much it would cost to exactly duplicate the business?
Comparable sales analysis
Income analysis
Liquidation analysis
The cost approach
Daniel purchased a townhome and obtained financing from Bank A on February 1, 2014. On April 1, 2015, he took out a home equity loan on the property with Bank B. On August 1, 2015, Daniel refinanced his mortgage through Bank C, which resulted in Bank A’s loan being paid off. Bank B signed a subordination agreement related to Bank C’s loan. Which lender will be paid first in the event of a foreclosure?
Bank A
Bank B
Bank B and C will be paid at the same time.
Bank C
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Rose, represented by Sandy, and Tina, represented by Julie, entered into a sales contract for Rose to purchase Tina’s home. Rose intended to ask Tina to repair the water heater, but the inspection deadline came and went. Now Rose has to buy the property as-is. Whose responsibility was is it to keep track of all buyer contingency deadlines?
Julie
Rose
Rose and Sandy
Sandy and Julie
Your buyer clients, the Fowlers, obtained an 80% loan on their $600,000 home. At closing, they paid $8,400 for discount points. How many points did the Fowlers pay to lower their interest rate?
0.017
1.17
1.75
7.2
An adjustable rate mortgage has an initial interest rate of 5%. When the first interest rate adjustment date arrives, the rate can be adjusted a maximum of 1%. At all subsequent adjustment dates, the interest rate can be adjusted a maximum of 2%. The highest rate of interest that may be charged at any given time is 9%. What does the 9% rate represent?
Initial cap
Lifetime cap
Maximum rate able to be charged
Periodic cap
Edric owes $115,000 on his lakefront home, which he’s selling for $350,000. He’s spent $73,000 in major renovations, and he wants to take that expense into consideration when he calculates how much he’ll actually pocket at closing. What number does he come up with?
$162,000
$235,000
$277,000
$308,000
Clark works for Acme Bank and asks for your assistance. He wants you to look at a property that’s about to go into foreclosure and provide him with a report on its current marketability and an approximate market value. What’s Clark most likely asking you to provide?
Appraisal
BPO
CMA
Professional opinion
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Joanie sees herself as a mover and shaker, a leader, someone who jumps in and gets things done. She likes to be involved and in charge. When she decides to start investing in real estate, which of these choices is she most likely to select as her investment vehicle?
A multi-family residential income property
A real estate investment trust
A real estate mortgage investment conduit
A real estate syndicate membership
Which type of tenants most often uses a percentage lease?
Manufacturing
Residential
Retail
Triple net
Stan is a home inspector who’s evaluating a home for potential buyers. He pointed out that neither of the two bathrooms had vent fans installed. Why is this a potential problem that will be noted on the inspection report?
Bathroom fans can mitigate lead paint particles.
Bathroom fans vent radon to the exterior of the home.
The lack of air circulation in a moist room can lead to mold growth.
Unseemly smells located that close to the kitchen are a problem.
You’re the agent for the Brewmans, who have listed their house for $425,000 and agreed to a commission rate of 5%. They’re eager to sell, so even though the house is listed at $425,000, the Brewmans want to accept the first offer of $395,000. How much less will the Brewmans pay your broker in commission if they accept this offer?
$1,000
$1,100
$1,300
$1,500
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Since the birth of their first child, Charlotte and Darryl have spent far more time at the drug store than they care to admit. Luckily, it’s close to their house in a small area of retail stores arranged in an “L” shape. What kind of retail space does this describe?
Factory outlet
Mall
Neighborhood center
Strip mall
What is required in order to transition from a single agent to a transaction broker in Florida?
Disclosure of the duties owed by all authorized brokerage relationships is required.
Nothing, because single agents are not allowed to transition to the transaction broker relationship.
The clients must disclose that they have assets over $1 million.
The parties must receive written disclosure notice.
A tenant has a small office space in a professional building. The set monthly lease payment includes maintenance of the common areas of the building such as the restroom and small kitchen, and all nets, utilities, and janitorial charges for the space. The payment also includes taxes and insurance. The landlord takes this payment and pays the individual expenses himself. What type of lease does the tenant have?
Graduated lease
Gross lease
Net lease
Percentage lease
Allison is about to close on a house. She wanted to take advantage of the low interest rate on the FHA mortgage that seller Lawrence has, but interest rates have risen. So she got Lawrence’s lender involved and applied for his mortgage. What kind of sale is this?
A free and clear transaction
A jumbo loan
Sale subject to a mortgage
Sale with assumption of a mortgage