Samuel and Yoshi have worked at the same firm for a few months and get along well. Samuel mentions he has a credit score in the low 800s. Yoshi, who’s just starting out, persuades Samuel to sign for a loan to help Yoshi buy a property, since his credit isn’t good enough. Yoshi promises to make the mortgage payments, but two months after the deal closes, Yoshi moves across the country. Samuel’s now stuck with a $400,000 mortgage. What type of scheme is this?
Equity skimming
Inflated appraisal
Silent second
Straw buyer
Stu’s seller client, Gabi, wants to figure out how much equity she has in the home she’s selling. Gabi paid $200,000 eight years ago and made several great renovations over the years. She still owes $125,000. Stu calculates that comparable home values in her area have risen about 15% since Gabi bought. Assuming Stu pulled appropriate comps, about how much equity does she have?
$105,000
$155,000
$205,000
$230,000
What’s needed in the mortgage or note for a non-judicial foreclosure to proceed in some states?
Assignment of mortgage
Contract for deed
Equity of redemption
Power of sale clause
It’s Friday afternoon, and Lori can’t make it to the bank in time to deposit an earnest money check in the brokerage’s escrow account, so she uses her mobile app to deposit it into her personal checking account for safekeeping. What violation did Lori just commit?
Capping
Commingling
Conforming
Conversion
In case history regarding fair housing, which case involved an ordinance that prohibited Black people from living on a block where the majority of the residents were white?
Brown vs. Board of Education
Buchanan vs. Warley
Jones vs. Mayer
Plessy vs. Ferguson
Back in the 1930s, the house at 102 Barbour Street was the only one in sight. Since then, however, the town has grown considerably and the once-residential Barbour Street is an industrial zone, with the residence at 102 Barbour Street in the middle of it all. What type of zoning does the residence demonstrate?
Conforming zoning
Non-conforming zoning
Planned unit development
Spot zoning
Your client submits an application to rent a condo unit. He has excellent credit and has had the same job for a long time. He uses a cane to help with his mobility. When his application is rejected, he feels it’s due to his disability. He is protected under what federal law?
Civil Rights Act of 1866
Fair Housing Amendments Act of 1988
Federal Fair Housing Act of 1968
Housing and Community Development Act of 1974
12PractEx.CeSh.PreLic.Qonly.txt
Kurt promised his grandmother he’d pay her $200 a month to live in the room above her garage, and she never asked him to put that agreement in writing. He lived there a few months without paying a dime and then disappeared one night after trashing the place. How long does Grandma have to sue Kurt?
Five years
Four years
One year
Two years
Sally is helping her Aunt Jess shop for another rental property. Aunt Jess likes to reminisce about the “good old days” when everything cost less. “Your Uncle Floyd and I bought our first rental property for $80,000 and that was a nice house. It was new, too. You couldn’t touch that house for less than $250,000 today. Times change, huh, honey?” Aunt Jess is referring to which kind of investment risk?
Business
Buying power
Interest rate
Liquidity
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 1% rate represent?
Initial cap
Lifetime cap
Periodic cap
Usury
A new development is going up just outside city limits where the population is expected to grow significantly in the next decade. The development will consist of commercial properties in one quadrant near a main road. The other areas are designated residential and will include single-family residences and multi-family townhomes. A small number of the single-family homes will border a golf course that is at the center of the development. What type of zoning is this an example of?
Conforming
Exclusive-use
Non-conforming
Planned unit development
A town has built a new city courthouse. The construction caused a landslide, which buried most of a homeowner’s farmland; now it can no longer be used for farmland. The homeowner is bringing an action against the city for their property loss. What is this an example of?
Condemnation
Eminent domain
Foreclosure
Inverse condemnation
Two neighbors are arguing over their shared lot line. One neighbor thinks that the other planted a privet hedge on their property. A civil legal action was filed by one neighbor against the other. Which of these would the court use to determine the actual lot line?
Aerial photographs
An affidavit from a surveyor
Legal descriptions of both properties
Testimony from long-time neighbors
A fence that’s placed two feet onto a neighbor’s property line meets the legal definition of ______.
A conveyance
An easement
An encroachment
A seisin