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 2% rate represent?
Initial cap
Lifetime cap
Periodic cap
Usury
You recently listed an historic home more than 100 years old, which was the site of a suicide many years ago. A spirit is believed to roam the grounds, but the current owner doesn’t want this shared with prospective buyers. Which action best demonstrates good faith?
You follow the owner’s wishes because the suicide and haunting don’t need to be disclosed.
You tell the owner you don’t have to disclose that the property was the site of a suicide, but do need to disclose the ghost.
You tell the owner you don’t have to disclose the ghost, but do need to tell buyers that a suicide occurred on the property.
You tell the owner you must disclose whether a property was the site of a suicide or homicide.
Ken, Dale, and James were brothers who owned more than 100 acres as tenants in common. The relationship between Ken and James disintegrated, and so James initiated a lawsuit. The end result was that the court gave each brother a designated set of acres to own. What did the court grant?
Bifurcation
Parcel
Partition
Severalty
While Martha’s paying off her loan, her lender is holding on to something that includes her name, property address, the interest rate on her loan, what the late charge amount would be, and the amount and term of the loan. When her loan is paid off, the lender returns it to Martha, marked paid in full. What is this item?
A deed of trust
A mortgage
An assignment
Recently retired Admiral Bongo and his wife, Lucy, contact you. They want you to help them purchase their dream house now that he’s retired, but one that has the necessary accommodations for the admiral’s disability. They also confide in you that they don’t have a lot of money saved up for a down payment. Which type of financing may work best for them?
A conventional loan combined with a seller carry back.
A conventional loan using the admiral’s retirement money as a down payment.
An FHA 203(k) loan to fix their new home up.
A VA loan, which requires no down payment.
Which of the following is a promise from the borrower to repay a certain sum of money to another party (the lender or holder of the note) under specified terms?
Deed of trust
Mortgage lien
Promissory note
Usury
A landlord refuses to rent an apartment to two single men who live together. However, the landlord has also approved a lease application from two unmarried women who cohabit. The landlord is discriminating on the basis of what federally protected class?
Familial status
Lifestyle
Same-sex relationship
Sex
You’re talking to a co-worker at lunch, and she mentions she has a box of baby clothes her kids have outgrown that she needs to get rid of. You have a baby on the way, so you offer to pay her $25, and she agrees to bring the box to work the next day and give it to you. Which of the following is true in this situation?
This is an express contract because you defined in words the specific terms of the agreement and consideration to be exchanged.
This is an implied contract because it is not written down and nobody signed anything.
This is an invalid contract because it is not written down and nobody signed anything.
This is a unilateral contract because only one party is providing anything of value.
Annie and Frannie form an oral agreement for Annie to sell Frannie her property. Three years and one month later, Frannie learns that there are significant foundation problems that were hidden when she purchased the property. Is it too late for her to sue Annie?
No, because the statute of limitations on oral or written property contracts in Florida is five years.
No, because the statute of limitations on oral property contracts in Florida is four years.
Yes, because the statute of limitations on oral or written property contracts in Florida is three years.
Yes, because the statute of limitations on oral or written property contracts in Florida is two years.
Maurice received an offer of $480,000 for his home. The commission on the sale is 6%. Maurice’s mortgage payoff is $78,500. He has additional closing expenses totaling $2,200. What will Maurice net from the sale of his home, rounded to the nearest whole dollar?
$289,850
$370,500
$374,930
$398,020
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.
Which of the following statements about an easement appurtenant is TRUE?
It does not involve an adjoining property.
It’s an encumbrance on the dominant property.
It’s a permanent right that runs with the land.
It’s a temporary agreement between two parties.
A couple received a general warranty deed when they purchased their house from the previous owner. A couple of months after they moved in, their neighbor drove his four-wheeler across their property to access the lake front. The couple discovered that the previous owner and their neighbor agreed to an easement over the property several years earlier. Which general warranty deed covenant does this represent?
The covenant against encumbrances
The covenant of further assurances
The covenant of quiet enjoyment
The covenant of seisin
Which act was the first to prohibit any exceptions for discrimination based on race or color?
Civil Rights Act of 1866
Fair Housing Amendments Act of 1988
Federal Fair Housing Act of 1968
Housing for Older Persons Act of 1995
A broker submits their client’s purchase offer and then goes on vacation. When they returned two weeks later, they learned that a counter-offer had been submitted, and the response date had expired. Their client’s offer was terminated because they failed to respond on time. What type of violation is this?
Demonstrating untrustworthiness or incompetency to act as a real estate broker
Failing to disclose an agency relationship
Making a substantial and willful misrepresentation
Performing services that would qualify as practice of law
Mary agreed to buy her mother’s house when her mother planned to move to a senior living community. Mary had a lease, but when she had to move because of work, she signed her rights in the contract over to her sister, Tina. What’s happening in this scenario?
Assignment
Breach
Novation
Performance
The Housing and Community Development Act of 1974 added which protected class to federal fair housing law?
Color
Disability
Religion
Sex