Oregon Real Estate Final Exam Prep 2022-2023 Already Passed

Oregon Real Estate Final Exam Prep 2022-2023 Already Passed An example of novation is that the ✔✔seller's liability for the obligation is replaced by the buyer's. Under Oregon law in a month-to-month tenancy, the lan ...

Oregon Real Estate Final Exam Prep 2022-2023 Already Passed An example of novation is that the ✔✔seller's liability for the obligation is replaced by the buyer's. Under Oregon law in a month-to-month tenancy, the landlord has a right to ✔✔terminate a tenant's occupancy after 30 days' written notice. To realize the maximum value of a property, a reasonable degree of sociological and economic homogeneity is necessary, but it should not become monotonously uniform. In real estate, this concept is called the principle of ✔✔conformity. Which of the following amounts should be entered in blank (10) on the Real Estate Purchase Agreement and Earnest Money Receipt if the listing price was $96,500 and sold for $93,500 with a 7% commission? ✔✔$6,545 A landlord of a duplex in Oregon may lawfully ✔✔require a tenant to furnish credit references. Which of the following deed forms may convey no ownership rights at all? ✔✔Quitclaim deed The lender in a mortgage is the ✔✔mortgagee. To grant permission to use a property during hunting season only would create ✔✔a license. In 2001, the owner of an apartment building rented his 24 units for $495 per month per unit without a vacancy factor. In 2002, he raised his rents 10%, but had a 10% vacancy factor. His income was ✔✔1 % less in 2002. If I have a permanent right to cross your land to get to my house, my property has ✔✔a dominant tenement. Which of the following statements concerning the Federal Housing Administration is true? I. The FHA issues long-term residential loans. II. The FHA issues long-term commercial loans. ✔✔Neither To satisfy requirements or reconciliation of clients' trust accounts, a principal real estate broker must: ✔✔~ reconcile accounts monthly. ~ sign and date the reconciliation. Under the Oregon Landlord and Tenant Act, a rental agreement may require a tenant to: ✔✔notify the owner when the tenant will be absent from the premises for more than seven days. Personal property is conveyed using ✔✔a bill of sale. Upon termination of a property management agreement, the property manager may use a tenant's conditionally refundable deposits to pay expenses of the property if the ✔✔tenant's rental agreement allows such use. When an owner of land refuses to sell his land to the government or any governmental agency under the right of eminent domain, the name of the proceeding to require the owner to sell his land is ✔✔condemnation. Replacement cost is best described as the ✔✔cost of building a property of equivalent utility with the same or similar materials. Before the Department of Veterans Affairs will guarantee a loan on real property, ✔✔~ the property must be appraised. ~ the borrower must provide signed verification that he will live on the property as owner/occupier. Mr. Lane and Mr. Harris may own property together as: ✔✔~ tenants by the entirety. ~ tenants in common. ~ tenants in partnership. Wells agreed to buy Peterson's real property for $45,000, signed an earnest money agreement and deposited $5,000 earnest money with Broker Logan. Peterson was unable to provide marketable title, so Wells demanded return of his earnest money from Logan. Logan should ✔✔return the entire amount to Wells. Which of the following types of mortgage usually contains a partial release clause? ✔✔Blanket mortgage A purchase money mortgage may be de ned as one which normally ✔✔is taken as all or part of the purchase price. When a mortgage covers two or more parcels of property simultaneously it is known as a ✔✔blanket mortgage. When the purchaser and seller have signed a land sale contract, the purchaser immediately receives: ✔✔equitable title. After a developer has sold all the lots in a subdivision in which he had established deed restriction on the lots to single-family residential use, subsequent action to enforce the restriction must be initiated by ✔✔the homeowner's association or an individual lot owner by filing a suit for injunctive relief. What is the name of the legal process of seizing property and holding it in court custody as security for satisfaction of a judgment? ✔✔Attachment There is a balance of $9,000 due on an amortized real estate contract that requires monthly payments of $80 plus interest at 6% per year, payable monthly. What would be the total payment for the third month? (Hint: Start by converting the annual interest rate to a monthly interest rate) ✔✔$124.20 Which of the following is considered a freehold estate? ✔✔Fee simple The Oregon Homestead Exemption provides a homeowner ✔✔with some protection against the forced sale of his personal residence. In a real estate transaction the listing principal broker receiving an earnest money deposit must ✔✔hold the funds in trust for both buyer and seller. state in the receipt the specific nature of the earnest money - cash, check, or promissory note. If property is conveyed to the buyer subject to a mortgage ✔✔the lender's rights to foreclose against the seller remain the same. The federal Real Estate Settlement Procedures Act ✔✔~ requires the lending institution to give the borrower a good faith estimate of closing costs. ~ applies to first mortgages. The beneficiary of a trust deed in Oregon is the ✔✔lender. An office building has a base standard rental rate of $8.40 per square foot for the second floor, and this base rate increases $0.10 per square foot on each higher floor. The rental rate for comer office space is $0.30 per square foot over and above the rate for any floor. How much annual rent must a firm pay for 6,000 square feet on the 12th floor if 700 square feet of the area is corner space? ✔✔$56,610 John Williamson installed a swimming pool in the backyard of the home he owns. While visiting him, Gina Arnold was invited to go swimming and was hurt while diving off the diving board. Arnold issued Williamson and recovered a judgment for $3,250. This judgment created ✔✔a general lien. Upon complaint of a benefiting owner, a deed restriction or restrictive covenant is enforced by ✔✔court injunction. The primary justification for a zoning ordinance is to ✔✔protect the public health, safety, and general welfare of an area. A contract can be voided if it was signed under ✔✔~undue influence. ~duress. ~a threat of force. An agreement for the management of property must ✔✔specify the management fee. Which of the following is NOT grounds for a landlord to terminate a lease and sue to evict the tenant? ✔✔Sale of the property A contractual provision making the sale subject to the buyer qualifying for a particular kind of loan is called a ✔✔contingency. If a principal real estate broker initials and dates a property management agreement negotiated and signed by one of his associated brokers, ✔✔~ the principal broker is approving and accepting the agreement with the owner. ~there must be written authorization for the associated broker to negotiate and sign such agreements on behalf of the principal broker. ~the review must be done within five days after execution of the agreement. A tenant of a rented home in Oregon has a right to ✔✔complain without reprisal and join tenant associations. Tom rents an apartment for $325 on a month-to-month tenancy with rent due on the first day of every month. The landlord sent Tom a thirty-day notice to terminate the tenancy effective May 20. According to the Oregon Landlord and Tenant Act, what amount will Tom be required to pay on May 1 for rent? ✔✔$210 When the city wants to widen the street, it can acquire additional width from the private owners of the abutting property under the exercise of ✔✔eminent domain. In real estate financing, reference is sometimes made to a 'take out loan' This refers to a ✔✔long term loan taken out after construction. Charges levied by a local government to finance street paving are ✔✔assessments. Every valid contract must meet all of the following requirements EXCEPT ✔✔a consideration clause expressed in monetary terms. Mr. and Mrs. Walters hired the Blue Water Pool Company to install a swimming pool on their residential premises. In the event the pool company was unpaid and it was necessary for them to file a lien for payment of the contract, the lien would be classified as ✔✔special or specific. The difference between an exclusive right-to-sell listing and an exclusive agency listing is that in the exclusive agency listing, the ✔✔client reserves the right to pay the broker no commission if the client should sell the property on his/his own. Johnson bought for his use an apartment in a large building and received a deed conveying to him a fee simple estate and also a tax bill on his ownership. His apartment ownership is called a ✔✔condominium. The contractual (lease) rental agreement on a property requires the tenant to pay $400 per month with the rent to be adjusted each April 1st according to the cost of living index. The cost of living index when the agreement was made was 122.8. It is time to adjust the rent, and neither the landlord nor tenant agree on what it should be. As you are holding forth as an expert in property value matters, the tenant asks you to compute the proper total rent per month for the coming year based upon the present cost of living index of 125.8. You respond that the proper rent should be __________ . ✔✔$409.77 A promissory note connected with a mortgage is signed by the ✔✔borrower. The absence of which of the following would render a property uninhabitable under the definition in the Oregon Landlord and Tenant Act? ✔✔~ Hot and cold running water ~ Connection to a sewage disposal system ~ Adequate heating facility In a real estate analysis one should be more interested in ✔✔future economic life of the improvements. A purchase money mortgage can sometimes be used as ✔✔a junior financing instrument. Real estate license law prohibits real estate brokers from engaging in real estate transactions for their own portfolio without ✔✔full disclosure of their license status. What type of lease is generally used when a sale- leaseback is involved? ✔✔Net lease An owner delivers to Smith an option to purchase certain real estate upon Smith's payment of $10,000 within 30 days. The option provides for a consideration of $1, the receipt of which the owner acknowledges. Under the circumstances the option is generally ✔✔valid. In property management, an operating budget ✔✔is a projection of anticipated costs for the annual operation of a building. Within five days after the execution of a property management agreement, a principal real estate broker must: ✔✔review, date, and initial the agreement, if the agreement was negotiated and signed by an associated broker. Smith leased a residence for a six-month term and upon expiration of the lease retained possession of the property without the consent of the landlord. Smith now holds an ✔✔estate at sufferance. Fannie Mae's primary responsibility is to: ✔✔maintain an active secondary market for mortgages. A lot of 105 front feet sells at a rate of $50 per front foot. If the principal broker's commission is 8% and the broker's commission is one-half the principal broker's commission, how much does the broker receive? ✔✔$210 A percentage lease is usually one that provides for a ✔✔definite monthly rent plus a percentage of the tenant's gross receipts in excess of a certain amount. Under Title I of the National Housing Act, the FHA will insure lenders against losses on loans made to ✔✔finance repairs, improvements, or alterations of existing residences. Which of the following statements about water rights is true? ✔✔~ Water rights pass with title. ~ Failure to continue the beneficial use of water may result in loss of the right to use the water right. A bill of sale is used to convey title to ✔✔personal property. The Fair Housing Act covers which of the following? The Fair Housing Act exempts owner-occupied dwellings of four units or less, single-family properties sold or rented without the use of a real estate broker (e.g., a For Sale By Owner), and properties that are owned or managed by organizations or private club that allows use of those properties only to its members. ✔✔All buildings of five or more dwelling units. A real estate property manager ✔✔~ have trust accounts and separate bookkeeping systems for each of his offices. ~ place rental collections on property he owns in his personal account. Condemnation proceedings in Oregon may be used to acquire real property ✔✔~ a governmental body for a stated public use. ~ as a right-of-way for a privately-owned public utility company. ~ only if just compensation is paid to the property owner. A buyer assumes the existing mortgage. Mortgage payments of $280 per month are due on the first of the month, and include interest at 7.2% per annum for the preceding month. The principal balance after the August 1 payment was $35,800. If closing is on August 6, what is the amount of interest that will be credited to the buyer, using a 365-day year and holding the buyer responsible for the day of closing? ✔✔$35.31 A triangular tract of land has 281 yards of frontage and extends 160 yards from the road at its deepest point. How many acres does it contain? ✔✔4.64 acres Possession under a claim of adverse possession must be ✔✔~hostile. ~continuous. ~open and notorious. A statement was included in the deed David received from Robert which limited the use of the property to single-family dwelling units. Which of the following was created by that statement? ✔✔A restrictive covenant A property manager negotiated a 20-year lease at an annual rental of $11,500. By agreement the leasing commission was 6% of the rental the rst year, 5% of the yearly rent for each of the next 12 years, and 1% of the rent for each of the remaining years. What is the total leasing commission for the 20-year lease? ✔✔$8,395 A mortgage broker ✔✔will arrange loans using money belonging to other forms. A loss to the insured that resulted from a forged document is covered by ✔✔~an extended coverage title insurance policy. ~a standard coverage title insurance policy. Ames bought 130,680 square feet of land at 27 cents per square foot, which he divided into 1/4 acre lots. If each lot sold for $8,700, what was the total pro t made by Ames? ✔✔$69,116.40 When the owner of real estate erects improvements that extend onto adjoining property, there exists ✔✔an encroachment. As used in real estate practice, the phrase take-out loan refers to: ✔✔long-term loan taken out after construction. A contractual agreement under which the listing broker acts as the agent or as the legally recognized non-agency representative of the seller(s), and the seller(s) agrees to pay a commission to the listing broker if the property is sold through the efforts of any real estate broker. ✔✔an exclusive agency listing An investor owned an 18-unit apartment house located in an area in which the State is constructing a new freeway. If the freeway caused the property to lose $340 per month in net income, and if the investor was using a 10% capitalization rate, the resultant loss in value to the property would be ✔✔$40,800. A married couple bought a parcel of real property. It is assumed they will take title as: ✔✔tenants by the entirety. The lessor of real property was notified by his tenant that there were cracks in the ceiling. The tenant informed the lessor that he was afraid the plaster would fall on the tenant's head. The landlord made the repairs, but he didn't do a good job. Because of this, the plaster fell on the tenant's head. There was no covenant regarding repairs in the lease between the landlord and the tenant. Which of the following statements is true? ✔✔The landlord must repair and will be liable for injuries suffered by anyone lawfully in the building. Monthly interest payments on Ms. Bray's loan are $459.00. The loan was obtained at 12% interest. What is the original principal amount of this loan? ✔✔$45,900 The term 'waiver' as used in a legal contract is best defined as ✔✔to voluntarily give up or surrender a right. A licensed property manager may authorize ✔✔another licensed property manager to supervise her property management activity in her absence. Which of the following is NOT necessary to the validity of the deed? ✔✔recording A mortgage loan which is secured by a home and certain equipment in the home, is known as a ✔✔package mortgage. If title to real property remains in the seller's name after it has been sold on a monthly payment plan, the buyer would have purchased it under ✔✔a land sales contract. In tenancy in common, there is always a unity of ✔✔possession. If aluminum storm windows are custom made and installed on a particular building, they become what may properly be described as a ✔✔~ fixture. ~ part of the real property. Under the Truth in Lending Act, the disclosure statement for the purchase of the borrower's residence must include: ✔✔~ the amount charged for late payments. ~ annual percentage rate. ~ the total dollar amount of the nance charge. A buyer was given a property condition disclosure after he made an offer on a home. How many days must he be given to revoke the offer and have the earnest money he deposited returned? ✔✔five business days if no waiver was signed. To obtain an easement by prescription, the use of the property must be in a manner which is: ✔✔~ open and notorious. ~ hostile to the owner. ~ continuous for the statutory period of time. All advertisements relating to property listed for sale by a principal real estate broker must ✔✔be done in the principal broker's registered name. Compared to physical life, economic life is usually ✔✔shorter The mortgagor's right to reestablish ownership after default is known as ✔✔redemption. A contract that has no force or effect in law is ✔✔~ void ~ unenforceable. A provision in a real estate loan that prohibits its assumption without permission of the lender is known by one or more of the following terms. Identify the term or terms. ✔✔~ acall provision ~ a due-on-sale clause In accounting for funds collected for managed property, the property manager must do all of the following except ✔✔prepare and maintain at least one owner's ledger for each owner in a property management agreement for property with multiple owners. A broker selling personal property along with the real property would have the seller use which of the following to convey title to the personal property? ✔✔bill of sale A buyer taking title subject to a mortgage the buyer is not assuming should request a ✔✔reduction certificate. In the transfer of real property by deed, ownership changes hands when the deed has been ✔✔delivered Which of the following best describes a land sale contract? ✔✔A method of selling real estate whereby the purchaser pays for the property in regular installments while the seller retains title to the property In terms of basic physical characteristics, land may properly be described as ✔✔~ immobile. ~ indestructible. ~ nonhomogeneous. A copy of the offer should be given to the prospective buyer ✔✔~ as soon as the prospective buyer signs the offer. ~ as soon as the offer is accepted by the seller. A land sale contract transfers: ✔✔equitable title. A landlord is permitted to give the tenant on a month-to-month tenancy less than 30 days notice to terminate the tenancy if the tenant is in violation of which of the following? ✔✔~ Keeping a pet on the premises, which is prohibited in the rental agreement ~ Failing to pay rent within seven days of the date it is due A construction loan is ✔✔~ a form of interim financing. ~ usually distributed in installments. Which of the following is usually included with the sale of a residence? ✔✔fixtures A lease for an apartment in a residential apartment project is usually which type of lease? ✔✔Gross lease If the mortgagee has the property sold at a foreclosure sale and it brings an amount inadequate to payoff the loan, what can the mortgagee do? ✔✔May be able to obtain a deficiency judgment A properly executed quitclaim deed will always convey ✔✔an existing interest in the property. The phrase time is of the essence is most likely to be found in a: ✔✔real estate purchase and sale agreement. A lease is an instrument used to transfer ✔✔possession and use of real property for a specific consideration. An easement appurtenant runs in favor of the ✔✔dominant estate. The premium for a title insurance policy purchased by the seller would appear as a ✔✔debit to the seller on the closing statement. In the market data approach to value, comparable properties must be adjusted for differences in ✔✔~ physical features. ~ location. ~ terms and conditions of sale. ~ date of sale. An FHA mortgage loan is secured through which of the following? ✔✔Qualified lending institutions A sum agreed upon by the parties to be full damages if a certain event occurs is best described as ✔✔liquidated damages. 'Littoral' property is located ✔✔on a seashore. A mortgage that includes both real and personal property is called a ✔✔package mortgage. Which of the following statements regarding real estate finance is false? ✔✔A promissory note is the security for the mortgage.