CE Shop National Exam - Questions and Answers (Complete Solutions) Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989
... [Show More] states that its purpose, in part, is to require that real estate appraisals used in connection with federally related transactions be performed ______. By licensed real estate professionals By members of the Appraisal Foundation In the most expeditious and inexpensive way possible In writing, and in accordance with uniform standards Kurt bought a vacant lot in a development that was 85% completed. When he started working with the builder to lay out where the house and driveway would lie, it was determined that he would need an easement because his driveway would spill over onto the adjacent lot by a few feet. What type of easement is this? Easement appurtenant Easement by necessity Easement by prescription Easement in gross Brittany has a small office in a professional building. She has a set monthly lease payment that has been calculated to include maintenance of the common areas in the building, such as the restroom and small kitchen, and all nets, utilities, and janitorial charges for her space. The payment also includes taxes and insurance. The landlord takes these payments and pays the individual expenses himself. What type of lease does Brittany have? Graduated lease Gross lease Net lease Percentage lease (In a gross lease, all expenses related to the property, such as taxes, insurance, and maintenance, are part of the lease payment.) Which of these is a violation of the RRP Rule? A homeowner performs DIY work in a home built prior to 1978. A seller of a home built in 1952 doesn't make the appropriate lead disclosures. Contractors from a home improvement store install windows or doors. Contractors perform renovations that disturb lead-based paint without holding proper certification.
(The federal Lead Renovation, Repair, and Painting (RRP) Rule requires firms that do renovation or repair work in homes built prior to 1978 to be properly certified in using lead-safe work practices, but it doesn't prohibit DIY work.) Marketo Building Designs is selling the air rights above its office building. The lot is 450 feet by 350 feet. How would you determine the air lot height in order to calculate the area? The area of an air lot can't be calculated because the height is unlimited. The city or other governing authority establishes the air lot's height. The height of all air lots is 500 feet above the existing structure. The height of the air lot is equal to the height of the structure under it. Nathan was painting the siding on his home when he was interrupted by a neighbor who informed him that he had to have the paint color approved before using it. Nathan lives in a neighborhood with ________. Conditions Environmental regulations HOA regulations Police power (HOA regulations are often used to enforce a certain visual or aesthetic style in a neighborhood.) An example of this type of leasehold estate is a month-to-month lease. Estate at sufferance Estate at will Estate for months Periodic estate (A periodic estate automatically renews at the end of its lease term, such as at the end of a given month.) Ashton, an appraiser, is estimating value using the sales comparison approach. He applies more weight to two comparables over several others he used. What process is he utilizing? Averaging Bracketing Conformity Correlation (Through a correlation process, the most weight may be given to one or two comparables, or equal weight may be given to all. The term reconciliation is often synonymous with correlation.) If the private individual owner doesn't own more than three single-family homes at one time, which exemption from the Fair Housing Act could apply? Housing designated for senior use "Mrs. Murphy" exemption Owner-occupied buildings with no more than four units Single-family housing sold or rented without the use of a broker (Single-family housing sold or rented without the use of a broker is exempt, provided the owner doesn't own more than three single-family homes at one time.) Phyllis bought a beach townhouse for $475,000 and put down $50,000 in earnest money. At closing, she paid $150,000, the balance of her intended down payment. The mortgage tax in the area is $.35 per $100 (or portion thereof). Calculate what Phyllis will pay for the mortgage tax. $1,137.50 $1,662.50 $700 $962.50 (A mortgage recording tax is based on the loan amount. Phyllis will pay a mortgage tax amount of $962.50 on her loan amount ($275,000 x .0035).) One area of town has maximum building height requirements and setbacks for the front, side, and rear yards. These requirements are all indicative of ______. Bulk zoning Commercial zoning Density zoning Residential zoning (These requirements are all indicative of bulk zoning, which may be seen in both commercial and residential areas, and which decreases density.) The Johnsons have owned a small restaurant for more than 20 years. It's open for lunch and dinner six days a week, and 80% of its weekday revenue comes from the happy hour drink and appetizer specials. The town in which their restaurant is located recently constructed a new middle school and stripped the liquor license from the Johnsons' restaurant, because it no longer complies with the ordinance to be 500 feet from a school property. The Johnsons have accused the town of _____. Condemnation Eminent domain Escheat Inverse condemnation (Inverse condemnation occurs when a property's value is negatively affected by government regulation, but the owner is not offered just compensation according to the requirements of the Takings Clause.) Which of these is a potential title issue with a foreclosure? Clouds on title Delays due to internal title audit Homeowner's right of equitable redemption Lengthy closing process (Potential clouds on the title from unpaid taxes or other types of liens are more common with foreclosure properties than standard sales. While the right of redemption, delays for audits, and a longer process are also issues, they're not title-related.) Rusty received an acceleration letter from his mortgage lender. What is the most likely reason for receiving this letter? Rusty failed to pay his property taxes. Rusty has paid off his mortgage. Rusty is two or three months in default. Rusty's mortgage is being sold on the secondary market. (Before filing a foreclosure against a homeowner, a lender must send an acceleration letter. Lenders can do this immediately when a borrower falls behind, but they usually don't until the borrower is two to three months in default.) Which of these would most likely be an implied contractual condition in a real estate sales contract? Buyer and seller names Freedom from fraud and misrepresentation Property location or description Purchase price (Contracts should specifically define the purchase price, the property being sold/purchased, and buyer and seller names. It likely won't spell out that the contract should be free from fraud or misrepresentation as this is implied under contract law.) Kyle owns six acres of land with 400 feet of river frontage. He wants to build a beach along the river bank to make it easier to swim in the river. He can do this because as the owner of river frontage, he has ________ rights. Alluvial Erosion Littoral Riparian (Riparian rights are granted to property owners whose property is adjacent to flowing water, like a river.) Jean is a licensee for At Home Realty. She chooses her own schedule, sets her own sales goals, and is compensated based on commission. She must complete three training courses each quarter and the required number of CE hours to maintain her license. She must belong to the local REALTORS® association. The firm doesn't pay for employment taxes for Jean. She receives no insurance or other benefits. Which of these factors might cause the IRS to classify Jean as an employee instead of an IC? She must belong to the local REALTORS® association. She must take a required number of continuing education hours. She must take three training classes through the firm. She receives no benefits from the firm. Juan secures a fixed rate amortized 30-year loan for $295,000 at 4.25%. If his monthly P&I payment is $1,750, how much interest does he pay in the second month of the loan? $1,038.59 $1,042.29 $1,044.79 $1,750 (In the first month, Juan pays $1,044.79 in interest ([$295,000 x .0425] ÷ 12) and paid the principal down $705.21 ($295,000 - [$1,750 - $1,044.79]). The next month, he pays $1,042.29 in interest ([$294,294.79 x .0425] ÷ 12).) Robert is the general contractor for a home being constructed in a new development. The foundation has been poured, and he's working with the homeowners to make some decisions that weren't identified in the blueprints he's working from. Which of the following details will be guided by local building codes? Material used for shingles Number and type of electrical breakers Number and type of windows per square foot Placement of gas range in the kitchen (Electrical safety standards are typically a component of building codes in almost any location.) [Show Less]