Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 202, Exams of Nursing

Download Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 202 and more Exams Nursing in PDF only on Docsity! Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. principal broker - Answer an individual who performs certain real estate services for another party for compensation. ultimately responsible for the company's activities, notably the activities of other licensees as well as the business's trust accounts. real estate duties not requiring license - Answer Delivery of a lease application or lease. Receiving a lease or lease application for delivery to the principal broker, real estate firm, or owner. Receiving a security deposit, rent payment or related payment for delivery to the principal broker, real estate firm, or owner. Acting under the direct written instructions of the principal broker, firm or owner in: Showing a rental unit. Assisting in the execution of a preprinted lease or rental agreement containing pre-established terms. Conveying information regarding a lease transaction prepared by the principal broker, firm, or owner to any person. Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. executive broker - Answer a licensed broker employed and supervised by a principal broker as an employee or independent contractor who can perform real estate services under the auspices of the principal broker, but who also has the authority to supervise associate brokers and salespersons. associate broker - Answer licensed broker who, as an employee or independent contractor, may perform real estate services under the supervision of a principal broker or executive broker. The associate broker may not supervise any other licensee to qualify for a Arkansas license - Answer Be of majority age (18 years old). Satisfy educational requirements. Satisfy experience requirements. Pass the appropriate licensing examination. Demonstrate a record of professional conduct. Provide evidence of honesty, trustworthiness and integrity. Complete a criminal history background check. Pay the appropriate fees. Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. meet requirements such as Affiliate with a resident or non-resident principal broker licensed by the Commission etc. If a resident or non-resident licensee terminates affiliation with a principal briker - Answer the person's license is terminated until such time as a re-affiliation occurs with another principal broker and the nonresident/resident places his or her license on inactive status. December 31 - Answer All Arkansas real estate licenses, active or inactive, expire on___ even in the initial year of licensure september 30 - Answer The deadline for renewing the license without paying additional fees 90 prior to expiration - Answer the Commission will issue a renewed license upon receipt of the application no later than 7 days - Answer Inactive licensees must notify the Commission of any change in name or address within Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. To activate an inactive license - Answer must complete 6 hours of CE for every year the licensee was inactive, up to a total of 30 hours. If a license has been expired in excess of 3 years - Answer the reactivation requirement will be the same as a new applicant. to reactivate an expired license - Answer submit a renewal application, pay the appropriate fee, and satisfy continuing education and any other requirements On or about July 15th - Answer the Commission sends licensees notice to renew licenses for the upcoming year. in a specific topic identified by the Commission - Answer At least one hour of the 6-hour requirement will be the first partial year, nor the following full year of licensure - Answer New licensees are not required to complete the CE requirement in: Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. At least one hour of the 6-hour requirement - Answer will be in a specific topic identified by the Commission (courses may not be taken twice to meet the requirement) courses exempt from SBPCE approval are: - Answer Courses offered by Realtor Associations or affiliated councils. Courses approved by the Commission. 3+-hour real estate-related courses offered by universities or colleges. new salesperson requirement: - Answer complete 18-hour AREC Post-license course w/in one year following the end of the month of the date of the issuance of the initial license new broker requirement - Answer complete 30-hour broker course w/in 1 year following the end of the month of the date of the issuance of the initial license. if the broker had completed the SP's post-license course w/in 3 yrs prior to date of licensure, need only take an additional 12-hour course Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. principal broker - Answer party responsible for all inflows and outflows from the branch's trust account. independent dealing - Answer license law that licensees are not allowed to practice real estate independently from their principal broker or executive broker independent dealing - Answer A licensee representing themselves as a principal broker when he/ she is not, is an example of: Self dealing - Answer license law that licensees in a real estate transaction on behalf of themselves, or a business entity they have an interest, must disclose that they are licensed real estate practitioners (serves to protect the public, notifies principal parties that they are more knowledgeable about real estate matters than ordinary citizens) self dealing disclosure must be - Answer made in writing and prior to entering into sale or lease contract Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. Interference with licensee relationships - Answer violation of license law to improperly interfere w/ licensee's relationship w/ a principal for the purpose of obtaining a referral fee relationship interference - Answer the party desiring the referral interferes to cause a referral to be paid, or cause the transaction to fail if no referral fee is to be paid (may bring civil action against the offender) reasonable cause for a referral payment - Answer a cooperative or subagency relationship has been made between the licensees actual introduction - Answer a referral of a principal to a licensee that occurs prior to the licensee and principal having any material discussions about a specific transaction. referral fee - Answer any mutually agreed upon consideration to be paid by a licensee to any person or entity Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. subject to disciplinary action by the Commission: (10) - Answer Obtaining license via fraud; violating rules/regulations of license laws; substantial misrepresentation; inducing parties to take action based on false statements, descriptions or promises; failure to account for moneys in a timely fashion; committing or being convicted of, or pleading no lo contendere to a felony for moral turpitude, fraud, dishonesty; accepting consideration for real estate services from anyone other than the principal broker; independent dealing;false or misleading advertising;being incompetent in real estate services such that the public is endangered; paying consideration for acts which violate license laws executive broker delegations - Answer Sign offer and acceptance forms. Train and supervise subordinate brokers and salespersons. Discharge administrative duties including signing and handling transfer documents. Both principal broker and executive broker - Answer responsible for strict supervision of real estate activities performed by all licensees in the firm or branch Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. sole responsibility - Answer principal broker maintains ________for all trust funds deposited into and withdrawn from the trust account therefore remains accountable for trust fund activity if designates an escrow agent. principal broker NOT responsible for T.F accounting if - Answer the parties to a transaction select another, third party escrow agent. Arkansas Real Estate Foundation, Inc. - Answer Trust funds in Arkansas may bear interest if the principal broker elects to follow the "Interest on Real Estate Brokers' Trust Account Program," the recipient of the interest earned by the account must be trust or escrow; federally-insured depository institution - Answer All trust fund accounts must bear the terms ___ or ___. The account must be within a____ Principal brokers are required to provide the Commission with a written report of each trust account, including the account's: (5) - Answer Name and number, Bank name and address,Opening date. (also required to report changes affecting the Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. trust account, including firm name changes, changes in principal broker status, and changes to or closing of the account itself) 3 days following the execution of a real estate contract - Answer Trust funds received by the principal broker or designated escrow agent must be deposited into the trust account no later than__. (or deposited according to written instructions of principal parties) The lender must charge 4 points to raise the interest rate ½% to 5%. The borrower must pay 4% x $50,000, or $2,000. - Answer A lender wants to yield 5% on a 4.5% loan of $50,000. How many points must the lender charge, and what will this cost the borrower? monthly - Answer Trust fund accounts must be reconciled ___ to bank statements in writing. 3 years - Answer Reconciliations records must be made available for inspection by the Commission and kept for Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. deposited in the trust account - Answer All security deposits for leases must be _____. company trust account - Answer deposits received for lease agreements in properties OWNED BY EMPLOYED LICENSEES unless specifically authorized in writing by the tenant, must be deposited in A broker may properly disburse funds from an escrow or trust account upon: (7) - Answer 1.Interpretation of the contract which authorizes him to hold funds. 2.Securing a written agreement signed by all parties having an interest in funds, and is separate from the contract which authorizes him to hold funds. 3. At the closing of the transaction. 4. Rejection of offer to purchase, sell, rent, lease, exchange, or option 5. Withdrawal of offer not yet accepted to purchase, sell, rent, lease, exchange or option 6. Filing an interpleader action in a court of jurisdiction. Broker must follow the orders of the court in dealing w/ the disputed trust funds. 7. By the order of a court . Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. conducting hearings and suspending the licenses may also revoke the registration of a time-share program in the event the developer fails to comply with the suspension - Answer The enforcement powers of the Commission for violations of time-share law include Violators of time-share laws are - Answer guilty of a misdemeanor and face fines up to $5,000 and one year incarceration. In addition, they may be sued in civil court and subjected to punitive damages. Public offering statements; the date of the sale contract - Answer __must be provided to purchasers of a time-share; deadline for furnishing is __ (sale contract voidable if purchaser hasn't received) 5 days - Answer statement of rescission rights declaring that purchaser has ___ after contract execution to cancel the contract.There is no penalty for cancellation. 5 days - Answer following execution of the sales contract, the developer may cancel the contract without penalty Within Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. Disbursement from the Time-share trust account may only be made when - Answer The rescission period has elapsed on a contract; or The purchaser has defaulted, at which time the developer may receive the funds; or the monies are refunded to the purchaser. The three accepted methods of legally describing parcels of real estate are: - Answer recorded plat method, or lot and block method metes and bounds rectangular survey system, or government survey method The description of a recorded plat property presents (3) - Answer the property's lot number or letter, then the block identifier and the subdivision name. metes and bounds system - Answer must BEGIN AND END at the point of beginning the government survey system or Rectangular Survey System - Answer is based on sets of intersecting lines. Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. Principal Meridians - Answer run north and south. Township lines - Answer are lines running east and west, parallel with the base line and six miles apart. Base Lines - Answer run east and west Range Lines - Answer are lines on either side of a principal meridian and are divided into six mile wide strips by lines that run north and south parallel to the meridian. 36 Sections; 640 acres - Answer Each township square is divided into ___ one mile square. One section is also equal to__ sales comparison approach - Answer compares the subject property to similar properties and makes adjustments on the basis of the date of the sale, the location, the physical features and/or amenities. Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. expected to be $95,850. Using a cap rate of 8%, what should he pay for the property? - Answer The formula for solving for value is V= I/R To derive (annual) net income, identify potential rent, subtract out vacancy and expenses.Potential income less vacancy = gross income.Gross income - expenses = net income. solve for value by dividing net income by the cap rate. $1,527,187 value A property purchased for $3,600,000. has a gross income of $500,000 and expenses of $200,000. What is the cap rate, or rate of return for this property? - Answer Net Income divided by Value = Cap Rate.Solve for net income by subtracting expenses from gross income. Next divide net income by the value.The cap rate for this property is 8.33% An apartment complex is valued at $480,000. The property was appraised using a 10% cap rate. What is the property's net income? - Answer V x R = I Value = $480,000, and the cap rate is 10%. Multiply $480,000 times 10%. Net income is $48,000. Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. A man owns a building with 6 apartments. Three of the 6 apartments net him $200 per month and the other three net him $150 each month. For what amount should he sell the building to net 9%? - Answer Income divided by Cap Rate = Value Total net income = ($200 X 3 = $600 a month X 12 =$7,200) plus ($150 X 3 = $450 a month X 12 =5,400). $7,200 + $5,400 = $12,600 total annual income. Next, divide the net income by the 9% cap rate: $12,600 / 9% = $140,000. Thus, in order to sell this property with a 9% return, the investor must sell it for $140,000. 10 Principals of Real Estate Value - Answer Highest and Best Use, substitution, law of supply and demand,Regression and Progression,anticipation, conformity, Assemblage, competition, contribution, change Assemblage - Answer the combining of two or more adjoining lots into one larger tract to increase their total value contribution - Answer the value of any component of a property is what it gives to the value of the whole or what its absence detracts from the whole Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. anticipation - Answer Property can increase or decrease in value in expectation of something in the future such as appreciation or rezoning regression and progression - Answer regression and progression occurs between dissimilar properties. This means the value of the better quality property is affected adversely by the presence of the lesser quality property and a lesser house will benefit from a larger house conformity - Answer The more the properties are alike, the more they retain value ad valorem basis - Answer General property taxes are levied on this basis; based on the assessed value of the property homestead - Answer a parcel of real property that is owned and occupied as a family home A special assessment - Answer a tax levied against specific properties that will benefit from a public improvement. Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. lending laws (3) - Answer laws that are for consumer protection in lending. Equal Credit Opportunity Law, Truth in Lending (Regulation Z), and the Real Estate Settlement Procedures Act The purpose of the secondary mortgage market - Answer to provide liquidity (funds) for the primary market (institutional lenders) PERSONAL PROPERTY; secondary mortgage market - Answer The promissory note considered to be ___ (readily negotiable) that can be bought and sold. Lenders sell their notes in the ___ to free up money so they can make more loans. promissory notes - Answer The Secondary Mortgage Market is the market in which these notes are exchanged and funds are provided directly to institutional lenders holding warehouse agencies - Answer purchase a number of mortgage loans and assemble them into one or more packages of loans for resale to investors Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. Major warehousing agencies in the Secondary Mortgage Market are: (3) - Answer Federal National Mortgage Association, Fannie Mae (FNMA) Government National Mortgage Association, Ginnie Mae (GNMA) Federal Home Loan Mortgage Corporation, Freddie Mac (FHLM) Federal National Mortgage Association (FNMA) - Answer Sells seasoned mortgages and deeds of trust to individual investors and financial institutions; established in 1938 for purchasing FHA loans from loan originators to provide some liquidity for government insured loans A seasoned mortgage - Answer mortgage that has been in existence for some time and has a good record of repayment by the mortgagor Fannie Mae (private!!) - Answer Largest purchaser in secondary market; Quasi- private corp - was government when originally formed, but is now a private corporation Fannie Mae (Federal National Mortgage Association) (fANNie buys ALL) - Answer Buys FHA loans, VA loans, and conventional loans in secondary market. Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. more; increase; decrease - Answer when reserve requirements increase: lender is required to keep ___ money in reserve; interest rates __; economic effect: ____ in money available to loan; less;decrease; increase - Answer when reserve requirements DECREASE: Lender is allowed to keep __ money in reserve; interest rates__ ; economic effect: ___ in money available to loan Discount rates - Answer the rate at which the "Fed" charges banks for money more;more; slow down - Answer Discount Rate Paid by Banks INCREASE - Lenders pay __to borrow money; Interest Rates Charged to Consumers: The lender pays more so the consumer will be charged__ ; Effect on Economy:__ economy b/c fewer consumers will be able to qualify for loans less;less- down; speed up - Answer Discount Rate Paid by Banks DECREASE - Lenders pay __to borrow money; Interest Rates Charged to Consumers: The lender pays more so the consumer will be charged__ so interest rates will go __ ; Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. discount loss being the amount of the subsidy. When these programs are available, in tandem with local mortgage lenders, administered under a under a contract with__ Federal Home Loan Mortgage Corporation, Freddie Mac (FHLMC) (Mac buys"C") - Answer Buys conventional loans. HUD (Department of Housing and Urban Development) - Answer is the regulator of Ginnie Mae and Freddie Mac (not fannie mae b/c theyre private) interest; percentage per year - Answer ___ is the amount of money that a lender charges for the use of money; always expressed as a ___ simple interest - Answer type of interest charged on a mortgage loan. principal - Answer loan balance Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. state law - Answer The maximum rate of interest that can be charged on loans may be set by ____. USURY - Answer Charging interest in excess of this rate; illegal interest Discount Points - Answer additional interest,not deducted from the loan, that is charged (debited) at the creation of the loan to increase lenders yield on loans and encourage a lower interest rate Service Points or Loan Origination Fees - Answer synonym for Discount Points at closing - Answer Points or discount points are a one-time fee paid __ prepaid interest - Answer total dollar amount of interest and points paid by borrower at closing One discount point = - Answer One Percent (1%) of the loan balance. Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. 8 points - Answer How many discount points are required to increase the percentage yield 1%? Multiply $250,000.00 X 2% = $5000.00 debit to the buyer - Answer On a $250,000 loan, the lender charges a 2 point service charge. How much does the buyer have to pay at closing, and how will it appear on the settlement statement? leverage - Answer principal of using other people's money to make investments, such as buying homes higher,higher - Answer The lower the down payment, the __ the risk to lender, the__ the "leverage" obtained by the borrower Loan to Value Ratio (LTV) - Answer the amount of a loan expressed as a percentage of the value of the real estate offered as security equity - Answer value in a property held by the owner in excess of any liens against it is called Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. Statutory Right of Redemption - Answer the right of a mortgagor to redeem after a foreclosure sale under certain rules and conditions before, after (ER then SR) - Answer Equitable Right is the right ___foreclosure, and the Statutory right would be ___ foreclosure. Deficiency judgment against the borrower - Answer If the proceeds from the foreclosure sale are not sufficient to cover the debt, the lender can go to court and seek a GENERAL LEIN applied to borrower's assets. Deed in lieu of foreclosure - Answer "friendly foreclosure" Lender and borrower agree that the lender will become the owner of the property instead of going through the formal foreclosure process. does not clear any junior liens Federal Housing Administration (FHA) (FHA Insures Loans- FHAIL) - Answer insures loans on real property made by qualified or approved lending institutions Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. The Department of Housing and Urban Development - Answer who oversees the FHA? FHA loans - Answer There are no prepayment penalties allowed on FHA loans are ____ . (1 word) - Answer assumable (no alienation) one-time mortgage insurance premium - Answer With an FHA loan, the borrower is charged a ______at closing which provides security to the lender in addition to the real estate in case of borrower default on the loan; paid by the borrower or some other party (seller). FHA, FHA Loan - Answer does NOT build homes nor does it lend money itself. The term ___refers to a loan that is insured by the agency. The Veterans Administration (VA) - Answer _______will guarantee that a loan made by an approved lending institution will be paid. Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. Guaranteed Loans - Answer VA Loans; guarantee repayment of loans up to a specific amount No maximum; $417,000 - Answer There is____maximum VA loan but lenders will generally limit VA loans to ___. This is because lenders sell VA loans in the secondary market, which currently places a _____ limit on the loans. no down payment - Answer it is usually possible for qualified veterans to obtain____ financing assume liability - Answer VA requires that a veteran ___ for the loan Certificate of Eligibility - Answer Veteran must first apply for a: __ in order to obtain a VA loan The VA - Answer what agency will lend money in rural areas where there is no financial institution available? Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. Conventional Loans - Answer -loans w/ No government guarantees or insurance; obtained at local savings and loans, mortgage brokers and mortgage bankers. Conventional Loans - Answer loans that normally require a larger down payment than FHA or VA Conventional Loans - Answer loans that do not require insurance with 20% minimum down payments Mortgage Insurance Premium (MIP). - Answer there are conventional loans available with lower down payments if the buyer is willing to pay a ___. Conventional Insured Loans - - Answer No government guarantees of insurance but insurance from private insurance companies. Private Mortgage Insurance (PMI) - Answer is insurance provided by a private insurer that protects the lender against loss in the event of a foreclosure and deficiency. Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. 20% down payment - Answer Insurance is required for all loans with less than (M.G.I.C.) MORTGAGE GUARANTEE INSURANCE CORPORATION - Answer Largest private insurer is the appraised value for loan purposes or the sale price - Answer The amount a lender will loan is generally based on_____or____ whichever is lower. loan applicant's need of financial assistance - Answer A lender or investor is really not interested or concerned with the qualified buyer - Answer one who has demonstrated the financial capacity and credit worthiness required to afford the asking price stable income, net worth and credit history - Answer Assessing the buyers' price range depends on three basic factors: Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. Mortgage to income ratio - - Answer The ratio between the monthly housing expense and stable monthly income. debt coverage ratio - Answer The ratio of annual net income to annual debt service. For example, a lender may require that a qualified corporate borrower have net income of 1.5 times the debt service of the loan being approved. items a lender will look at when deciding to qualify a property: - Answer Type of property (residential, commercial, agricultural) Location Area zoning Value range Neighborhood Actual age/Effective age/Remaining economic life Condition (repairs and predications) Special clearances (code compliance, well and septic certifications etc.) Overall marketability abstract and opinion - Answer full summary of all consecutive grants, conveyances, wills, records and judicial proceedings, with a statement of all recorded liens and encumbrances affecting the property and their present status. Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. EXCULPATORY CLAUSE - Answer A clause sometimes inserted in a mortgage note in which the lender waives the right to a deficiency judgment. short sale - Answer sale of a secured real property where the sale price is less than what is owed to the lender. Lenders will agree to avoid the delay and expense of a foreclosure action, because it can result in the bank owning the asset and thus carrying a Real Estate Owned (REO) property on its books. MORTGAGOR = - Answer Borrower MORTGAGEE = - Answer Lender debenture - Answer long-term note that is NOT secured by a specific property. Deed of Trust, there are three parties involved. They are: - Answer trustor,benificiary,trustee trustor - Answer borrower Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. trustee - Answer Bank Vice President or anyone else designated by the lender (holds naked legal title the right to foreclose with directions from the beneficiary) beneficiary - Answer bank acceleration clause - Answer If a borrower defaults on the loan (misses payments, etc.) the lender can call the entire balance due and payable immediately. acceleration clause - Answer Without this clause in the mortgage or deed of trust the lender would not have the power or right to foreclose escalation clause - Answer In a mortgage, it allows the interest rate to adjust over the life of the loan. In a lease, it allows the lease payment to adjust over the life of the lease. alienation clause - Answer "Due on Sale Clause". The mortgagee or beneficiary declares the entire balance of the loan due and payable when the property is transferred Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. alienation clause - Answer When this clause is contained in the Mortgage or Deed of Trust, it prevents the assumption of the loan by a new purchase (*aliens cant assume) alienation clause - Answer no one can assume this loan or have any interest in the property without permission from me!" not allowed in FHA or VA satisfaction piece - Answer puts on public record that the loan was paid, and that the lender no longer has a lien on your property. recording releases the Mortgage or Deed of Trust lien deed of conveyance - Answer A document used to transfer legal title from the trustee back to the borrower (trustor) after a debt secured by a deed of trust has been paid to the lender (beneficiary.) subordination clause - Answer a clause in a Mortgage or Deed of Trust wherein a subsequent mortgage or deed of trust takes priority Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. Filing a written appeal within 60 days. Paying an appeal filing fee and costs associated with the appeal review. - Answer Complaints that are dismissed without a hearing may be appealed by: within three years of the alleged occurrence of the violation. - Answer Note that any hearing or investigation of a licensee for an alleged violation of license law or regulation must occur: 30 days prior to the date of the hearing - Answer The director is required to issue notice of an upcoming hearing to all affected parties:. The notice of a hearing must contain - Answer a synopsis of the charges, the laws or regulations violated, and the place and time of the hearing. 10 days in advance of the hearing date. - Answer the accused licensee may elicit the assistance of the Commission in procuring relevant documents or witnesses the licensee wishes to be present. The filer must demonstrate he or she has distributed copies of the motion to affected parties or their legal representatives,and All motions must be filed within: Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. Any appeal of a ruling must be filed within - Answer 15 days from the ruling date. If a licensee has been found guilty of violating a license law or regulation, the Commission impose any one or more of the following penalties: - Answer License suspension, revocation, or denial of renewal. Fines up to $1,000 for each violation. Completion of educational programs. Completion of the licensing examination. Placement of conditions on the license or licensee's practice. Other penalties as deemed appropriate by the Commission. actual, compensatory damages - Answer Once a law or regulation violation has been affirmed, the Commission must then determine the amount of damages to be paid.Damages in such cases are limited to if there are damages in a case, the licensee must pay the amount of the damages awarded within - Answer 30 days Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. real estate recovery fund, 25000 ,75000 - Answer If the licensee has not paid within that time frame, the Commission may pay the amount of the damages from the------.The maximum amount the Commission may pay from the Recovery Fund is ----- per violation, to a maximum of ----- the licensee's license is suspended until - Answer the Commission has been reimbursed by the licensee for the damages paid, with interest. single agency - Answer is when a licensee represents a seller, buyer, landlord or tenant directly and exclusively as an agent. agents; subagents - Answer All licensees working for the principal broker are __ of the broker and __of the client. the agent owes the client fiduciary duties - Answer cornerstone of single agency relationship is that Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. INDESTRUCTIBLE - land is permanent NONHOMOGENEOUS- (Uniqueness) "SPECIFIC PERFORMANCE" - Answer BECAUSE NO TWO PROPERTIES ARE THE SAME, A BUYER CAN SUE A SELLER OR A SELLER CAN SUE A BUYER FOR ___ IF ONE OF THEM REFUSES TO CLOSE. Uniform Commercial Code - Answer regulates the transfer of chattels and the use of chattels as security for debts fixture - Answer something which once was personal, but has been installed. Therefore, it becomes real property Appurtenance (fixture) - Answer a right, privilege, or improvement that belongs to and passes with the transfer of property, but are not necessarily a part of the actual property ANNEXATION - Answer changes personal property to real property. Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. SEVERANCE - Answer changes real property to personal property. Emblements or fructus industriales - Answer Annual crops such as wheat, corn, and vegetables, and are considered personal property Fructus naturales - Answer Perennial trees, perennial bushes, and grasses that do not require annual cultivation and are considered real property trade fixture - Answer the personal property of a tenant that is installed, and is necessary for their trade or business, and can be removed by the tenant any time before the end of the lease term Allodial System - Answer individuals are entitled to own property without proprietary control of the King/Government. All property in the United States unmarketable - Answer Violation of zoning regulations renders a title Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. building codes - Answer designed to provide minimum standards. The goal is to safeguard the health, safety, and welfare of the public by regulating and controlling the design, construction, quality, use and occupancy, location, and maintenance of all buildings and structures. The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) - Answer established a fund called the Superfund, to clean up uncontrolled hazardous waste sites and to respond to spills. It created a process for identifying potential responsible parties (PRPs) and ordering them to take responsibility for the cleanup action. Administered and enforced by the EPA lead-based paint hazards - Answer The EPA and the Department of Housing and Urban Development (HUD) issued final regulations requiring disclosure of the presence of any known __ to potential buyers or renters condemnation - Answer is the process by which property is acquired through Eminent Domain Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. Waste or destroy the property. - Answer Because a life tenant only owns an incomplete bundle of rights he/she cannot: Involuntary Life Estates - Answer Legal Life Estates, also called marital rights. Include: Dower - a wife's interest in the husband's property Curtesy - a husband's interest in a wife's property Homestead - protection against unsecured debts for the party who did not sign for the loan An Estate for Years - Answer has a definite beginning and ending date. It is not necessary to give notice to the landlord to terminate an estate for years. Renewal is NOT automatic, when this type of lease is over, it's over. Many commercial leases and some apartment leases this type of lease can be for any amount of time. Estate from Period to Period - Answer Also known as periodic tenancy, or a month-to-month lease. Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. Proper notice is required to terminate No definite ending date (this type of lease renews itself). Most apartment leases, if the tenant is required to give notice to terminate Estate at Will - Answer Landlord lets you stay without a lease. Notice can be given by either party without warning. Death of either party immediately terminates Estate at Sufferance - Answer Tenant stays past the term of his lease. This tenant is known as a: Holdover tenant because he/she are unlawfully in possession of the property.The landlord must evict tenant through the courts Actual Eviction - Answer The landlord's remedy to regain possession of property. Constructive Eviction - Answer The tenant's remedy if the property is not habitable. The tenant must vacate the property, send notice to the landlord telling Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. him of the problem and put the rent money in escrow until the issue can be resolved. Gross Lease - Answer apartment; lessee pays flat fee, lessor pays all expenses Net Lease - Answer Commercial;lessee pays flat fee and a % of expenses,lessor pays balance of expenses Percentage Lease - Answer shopping mall, lessee pays flat fee and a % of gross sales, lessor pays all expenses LESSOR - Answer Landlord LESSEE - Answer Tenant Ground lease - Answer long term lease, usually 99 years, tenant may build on a property with a ground lease, but the property is still the landlord's. Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. The daily rent amount is ($950 ÷ 31) or $30.65 The proration amount is $704.84 ($30.65 x 23) Subtract the proration amount in #3, $704.84 from the total rent amount $950, which equals $245.05. Credit the buyer and debit the seller $245.16 - Answer A closing is set for March 23, and the tenant's rent is $950 per month. The seller owns the day of closing. How much rent credit does the buyer receive using the 365-day method? Seller days = 16 Daily cost = $350 ÷ 28 = $12.50 Total proration amount = $12.50 x 16 days = $200 Charge the seller and credit the buyer $200 - Answer assume a power bill will be $350 in the month of closing, closing is set for February 16th, the seller owns the day of closing, and the 365-day method is used. The proration will be: The number of buyer days is 11 The daily interest charge is $200,000 x .05 = $10,000 interest per year Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. $10,000 ÷ 360 = $27.78 interest per day $27.78 daily interest x 11 days = $305.58 interest charge to the buyer. - Answer Assume a buyer's new loan is for $200,000 at 5% interest and the day of closing is August 20th. The interest charge will be for the period between closing and the end of the month. If the buyer owns the day of closing, and the method to be used is the 360-day method, how much interest does the buyer owe? The number of seller days is 13. The daily interest charge is $50,000 x .06 (6%) = $3,000 interest per year $3,000 ÷ 360 = $8.33 interest per day $8.33 daily interest x 13 days = $108.33 interest charge to the seller. - Answer assume closing is on the 13th of September, the loan principal is $50,000, the rate is 6%, the seller owns the day of closing, and the 360-day method is used. What is the seller's interest charge for the month of closing? The borrower will owe one month's payment on 6.5% of $300,000, or $1,625. (6.5% x $300,000 ÷ 12). The monthly payment of $1,896 - interest paid of $1,625 = $271 principal paid. Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. The new principal balance is $300,000 - 271, or $299,729. - Answer Assume a loan balance for April 1st is $300,000, the interest rate is 6.5%, and the monthly payment is $1,896. What will the principal payment and the ending principal balance be after the next payment on May 1st? The penalty would then be $50,000 X 1%, or $500. Debit the seller only. The buyer would not be involved in this charge. - Answer assume a seller has owned a property for 20 years and owes the lender $50,000 on the day of closing. The lender is charging a 1% prepayment penalty. to 'gross up' the seller's proceeds - Answer Price = (Net + Mortgage balance + closing costs) (100% - X%) seller's "net" - Answer the amount of cash that a seller will walk away from the closing table with after all closing costs, loans and fees have been disbursed The LTV ratio is expressed as - Answer LTV ratio = (Loan amount ÷ Value) Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. Inheritable How can Tenancy by the Entirety be terminated? - Answer Death of either spouse - survivor now owns the property Divorce - parties become tenants in common Mutual agreement to sell the property Foreclosure No Right of Partition Yes, married couples may for personal reasons take title as Tenants in Common, or as Joint Tenants. - Answer Can a married couple take title any other way than Tenancy by the Entireties? Community Property - Answer Another form of ownership in some states for married people laws have Spanish origin and are therefore more prevalent in the Southwestern United States. Arkansas Real Estate Exam Questions [350 Terms] with Verified & Correct Marking Scheme 2023\2024. straw man - Answer One who purchases property for another so as to conceal the identity of the real purchaser; a dummy purchaser; a nominee, a front. direct them to their attorney - Answer if you are asked by a consumer, "How should I take title to my property" how would you reply?