Broker PSI Exam Review Questions. Latest updates, Rated A.

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Broker PSI Exam Review Questions. Latest updates, Rated A. Estoppel Certificate -✔✔-Ratification of the tenant's lease. Requested by the landlord when selling or refinancing the property to p... rove the validity of the lease. Qualified Intermediary -✔✔-Can be a person or company who does not have ownership or interest in the properties being exchanged. Leasing Land to Build -✔✔-The lease must be subordinated, it gives the mortgage company security. Prescriptive Easements -✔✔-Must be open and notorious, and uninterrupted for a minimum of 20 years. Commercial Mortgage Backed Securities (CMBS) -✔✔-A type of mortgage-backed security that is secured by the loan on a commercial property. Can provide liquidity to real estate investors and to commercial lenders. Type of COMAR Hearings -✔✔-Judicial, Revocation/Suspension, Guaranty Fund Claims, and Applications for Licensure. How is the real estate industry governed? -✔✔-Title 17 and Comar. Irrevocable Consent -✔✔-If a licensee lives in another state they would need to submit this to the commission. Penalty for Operating Without a License -✔✔-First violation: $5,000 fine. Second violation: $15,000 fine and 2 years imprisonment. Third violation: $25,000 fine and 3 years imprisonment. Changing Location of Escrow Account or Office -✔✔-The broker must notify the commission 10 days before the change. Check Drawn from Escrow Account -✔✔-Must be signed by the firms' broker. Does not need a second signature. Maryland Commission of Civil Rights -✔✔-Preventing and responding to discrimination. Composed of 9 members, appointed by the governor for a 6 year term. Discrimination Complaints -✔✔-Complaints must be made to HUD or MCCR within 1 year of the alleged action. Agricultural Land Preservation Foundation -✔✔-May purchase easements to restrict land to agricultural use. Residential Property Disclosure and Disclaimer -✔✔-Must be completed by the seller at the time of listing. Confirm it is completed and signed. Made readily available to all potential buyers. Can be voided until loan application is made. Chesapeake and Atlantic Coastal Bays Critical Area -✔✔-Sales contract clause required in contracts for all counties in Maryland. Maryland Tax Assessment -✔✔-100% of market value using Triennial Assessment: Based on a threeyear cycle in which one-third of all properties are revalued for tax purposes. Amending Condominium Bylaws -✔✔-Require affirmative vote by 60% of the owners in good standing. Converting Rental to Condominium -✔✔-Requires tenants to be given 180 days' notice. Ministerial Acts -✔✔-Functions performed by a licensee do not involve negotiation, discretion, or expert judgment by that licensee. Customer Relationship. Magisterial Acts -✔✔-Functions performed by a licensee that involves the licensee's expert judgment and negotiating skill. Client Relationship. Agricultural Transfer Tax -✔✔-The tax is waived in a transfer in which the purchaser promises to keep the land in agricultural use for 5 tax years. Permanent Veteran Disability -✔✔-They are exempt from property tax. Statutory Period of Redemption -✔✔-The defaulted owner has a 6-month period to redeem the property. Maryland Ad Valorem Tax Dates -✔✔-Property taxes are due on July 1 and Jan 1. Taxes that are not paid by Sept 30 and Jan 31 under the two payment systems are considered delinquent. Release of Lien -✔✔-When satisfied, lienholders are required to mail or deliver within 7 days after receipt of payment. Maryland Mortgage Loans -✔✔-Maryland is a lien theory state. Mortgage Forgiveness Debt Relief Act of 2007 -✔✔-State relief only applies to state income taxes and has a maximum of $100,000 in forgiven debt. or $200,000 for a couple filing. Mortgage is Presumed Paid -✔✔-If a period of 12 years has elapsed since the last payment date. Elective Share -✔✔-A provision that gives a surviving spouse a share of most of the wealth of the deceased spouse. Defeasible Fee -✔✔-A title that is subject to being lost if certain conditions occur. All Have July 1 in Common -✔✔-Quarterly, Semi-Annually, Annually Tax Plans all have their taxes due at this common date. Adverse Possession -✔✔-20 years of continuous hostile use of a property. Nonresident Sales Tax -✔✔-Individuals could have 8% withheld from the settlement. Commercial corporations could be as high as 8.25% Duty of Licensee -✔✔-Disclose to all parties that you are licensed. First Time Home Buyer -✔✔-Seller pays the transfer tax. What does a Valid Will Need? -✔✔-Needs two people to witness the signature. It cannot be anyone receiving benefits in the will. Appropriation -✔✔-It generally involves the adoption of an ordinance or the passage of a law setting forth the specifics of the proposed taxation. Equalization Factor -✔✔-A number by which the assessed value of a property is multiplied to arrive at a value for the property that is in line with statewide tax assessments. The ad valorem tax is based on this adjusted value. Special Assessment -✔✔-Require property owners to pay for improvements that directly benefit their real estate. Capitalization Rate -✔✔-The rate of return a property will produce on the owner's investment. Economic Life -✔✔-The number of years during which an improvement will add value to the land. Adjusted Basis -✔✔-The owner's original cost plus buying expenses and capital improvements. Transfer Tax -✔✔-To be paid by the Seller and debited to the buyer. Leverage -✔✔-Use of borrowed money to supplement existing funds for purpose of investment. Syndication -✔✔-A business venture that usually takes the form of a limited partnership. Blue-Sky Laws -✔✔-Protects public from fraudulent investing schemes. Open-End Loan -✔✔-A mortgage loan that is expandable by increment up to a maximum dollar amount, the full loan being secured by the same original mortgage. Installment Contract -✔✔-A contract for the sale of real estate whereby the purchase price is paid in periodic installments by the purchaser, who is in possession of the property even though the title is retained by the seller until a future date, which may not be until final payment. Negative Amortized Loan -✔✔-The loan balance increases rather than decreases. Housing and Urban Development (HUD) -✔✔-An agency of the federal government which oversees many federal housing programs. On the closing statement, appraisal is usually appears as -✔✔-Debit to the Buyer Anti-Trust Law -✔✔-Legislation to prevent new monopolies from forming and police those that already exist. Required in a Valid Deed -✔✔-Legal Description Hypothecate -✔✔-To pledge property as security for a loa [Show More]

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