Mixed Deck — All Real Estate License Topics Flashcards

The total commission paid a brokerage firm was $23,000. The firm was paid 6% on the first $200,000, 4% on the next 200,000 and 2% on the remainder. What was the sale price of the property?

Answer: $550,000

First, calculate commission for the first two tiers: ($200,000 * 0.06) + ($200,000 * 0.04) = $12,000 + $8,000 = $20,000. The remaining commission is $23,000 - $20,000 = $3,000. Since this remaining commission is at a 2% rate, the sale amount for that tier is $3,000 / 0.02 = $150,000. Therefore, the total sale price is $200,000 + $200,000 + $150,000 = $550,000.

Which of the following is the most likely reason for a real estate sales escrow to be terminated?

Answer: The buyer's and seller's mutual agreement.

An escrow for a real estate sale is essentially a contractual agreement between the buyer and seller, managed by a neutral third party. Like any contract, it can be terminated by the mutual consent and agreement of all parties involved. While other factors might lead to a termination, mutual agreement is the most straightforward and common way to legally conclude an escrow without dispute.

A reasonably good balance between supply and demand of apartments is

Answer: 95% occupancy.

A reasonably good balance between the supply and demand of apartments is generally considered to be around 95% occupancy. This 5% vacancy rate allows for a healthy market where landlords can fill vacancies without excessive competition, while also providing enough available units for renters and facilitating tenant turnover.

A land contract differs from a grant deed transfer in the ____.

Answer: All of the above.

A land contract (or installment sale contract) differs significantly from a grant deed transfer in several fundamental aspects. In a land contract, the seller retains legal title until the full purchase price is paid, conveying only equitable title to the buyer, which impacts the 'interest conveyed.' This also affects how the 'purchase price designation' is handled (paid over time) and the nature of the 'principal parties' signatures (an agreement vs. a direct conveyance). Therefore, all these elements differ.

A mother is deeding her mortgage-free house to her son. Is the deed required to show "good consideration" to be valid in the case?

Answer: Yes, unless she is deeding it to him in her will.

For a deed to be valid and legally transfer property during the grantor's lifetime, it generally requires "good consideration," which can be monetary or "love and affection." While a deed between family members might state "love and affection" as consideration, some form of consideration is typically necessary to demonstrate the grantor's intent and prevent future challenges. However, if the transfer occurs through a will (devise) after death, the will itself serves as the instrument of transfer, and separate consideration is not required for the will's validity.

The gradual addition of land by deposits of soil from a river is known as:

Answer: Accretion

Accretion is the slow buildup of land through waterborne soil deposits.

Which clause in a deed defines the type and extent of the interest being conveyed, such as 'fee simple'?

Answer: Habendum clause

The habendum clause ('to have and to hold') defines the extent of the estate granted.

An owner wishes to have a survey made of a commercially-zoned parcel. It is 90 feet on the front, 159 feet on the north side, 120 feet on the back and 180 feet on the south side. It is not in a recorded subdivision. Which survey method would be most appropriate for the parcel?

Answer: metes and bounds

Metes and bounds is the most appropriate survey method for irregularly shaped parcels, especially those not part of a recorded subdivision. This method describes property boundaries by starting at a known point of beginning and then defining the perimeter using courses (directions) and distances (metes) and physical markers (bounds). Given the varying side lengths and lack of subdivision, metes and bounds provides the precise description needed.

Jim Singletary wishes to construct an office building containing 24,000 square feet. The zoning in the area requires 1 parking space for every 400 square feet of building area. How many spaces will be necessary?

Answer: 60

To determine the number of parking spaces required, divide the total building area by the square footage required per parking space. In this scenario, 24,000 square feet divided by 400 square feet per space equals 60 parking spaces.

Fraud in a contract makes the agreement:

Answer: Voidable by the injured party

Fraud makes a contract voidable at the option of the party who was deceived.

A single agent broker who wishes to remain loyal to the principal yet be involved in both sides of a transaction

Answer: must work with the other party in a "no official brokerage relationship" role.

In Florida, dual agency is prohibited. A single agent broker owes undivided loyalty to their principal. If a single agent wishes to work with the other party in the same transaction while maintaining loyalty to their principal, they cannot represent the other party as a single agent or transition to a transaction broker without both parties' written consent. The only way to interact with the other party without violating their single agency duty or creating an illegal dual agency is to work with that other party in a 'no official brokerage relationship' capacity, providing limited services without representation.

An unlicensed assistant in a real estate office cannot:

Answer: discuss the price and term of a transaction with a principal.

Unlicensed assistants are permitted to perform administrative tasks that do not require a real estate license, such as typing contracts or handing out brochures. However, discussing substantive aspects of a transaction, like price, terms, or negotiations, constitutes providing real estate advice or services. These activities legally require a licensed real estate professional, making it unlawful for an unlicensed assistant to engage in them.

Jim, Matt and Jack were co-owners of a parcel of real property. Matt died, and his coownership passed, according to his will, to become part of his estate. The parties owned the property as

Answer: tenants in common.

In a tenancy in common, each co-owner holds an undivided interest in the property, and there is no right of survivorship. This means that upon the death of a tenant in common, their interest passes to their heirs or beneficiaries according to their will, rather than automatically to the surviving co-owners. This is distinct from joint tenancy, where the right of survivorship dictates that the deceased's interest automatically passes to the remaining joint tenants.

A person has been using another person’s land for 30 years without permission. They may have a legal claim to the land by which means of ownership?

Answer: adverse posession

Adverse possession is a legal principle allowing a person to claim ownership of land by openly, notoriously, continuously, exclusively, and hostilely occupying it for a statutorily defined period. After 30 years, as in this scenario, the user may have met the stringent requirements to claim legal title to the land, even without the owner's permission.

By _, an offer is terminated.

Answer: the offeree's refusal

An offer to enter into a contract can be terminated in several ways. The offeree's refusal, also known as rejection, directly communicates their unwillingness to accept the terms, thereby ending the offer. Other methods include revocation by the offeror, a counteroffer (which acts as a rejection of the original offer), lapse of time, or death/incapacity of either party.

A percentage lease is most commonly used in:

Answer: Shopping centers

A percentage lease is most commonly used in retail properties, particularly shopping centers. Under this arrangement, the tenant pays a base rent plus a percentage of their gross sales above a certain threshold. This allows the landlord to share in the tenant's success and aligns their interests, as both benefit from higher sales.

A married couple owning property as a single legal unit with survivorship in states that permit it hold title as:

Answer: Tenancy by the entirety

Tenancy by the entirety is a form of ownership available only to married couples with right of survivorship.

____ are annual crops planted on real property but are considered personal property.

Answer: Emblements

Emblements are annual crops that are considered personal property, even though they are grown on real property. This is because they require human labor and cultivation to produce. If a tenant farmer's lease ends before the crops are harvested, they typically have the right to re-enter the land to harvest them.

Miguel recorded a grant deed to Tom. Miguel afterward changed his mind and attempted to cancel the delivery, saying there had been no delivery to Tom. Why did Miguel's attempt fail?

Answer: With recording, delivery and acceptance are assumed.

When a deed is recorded in public records, it creates a legal presumption that the deed has been delivered by the grantor and accepted by the grantee. This act provides constructive notice to the world of the transfer of ownership. Therefore, once recorded, Miguel cannot unilaterally claim there was no delivery to invalidate the transfer.

A comparable property showed adjusted value of $40,000. The property sold two years ago, and the adjustments indicated a 7% annual appreciation rate. Assuming the appreciation was the only adjustment, how much was the total adjustment?

Answer: plus $5,063

The comparable property's *adjusted* value today is $40,000. Since it appreciated at 7% annually for two years, its original sale price was lower. To find the original price, divide the current value by (1 + appreciation rate)^number of years: $40,000 / (1.07 * 1.07) = $40,000 / 1.1449 = $34,937.55. The total adjustment is the difference between the adjusted value and the original sale price: $40,000 - $34,937.55 = $5,062.45, which rounds to a positive adjustment of $5,063.