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198 Cards in this Set
- Front
- Back
What does the civil rights act of 1866 prohibit?
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Race Discrimination
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What does the federal fair housing act of 1968 prohibit
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Race, Color, Creed, national Origin
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What does the sherman Antitrust Act prohibit
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Price Fixing
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What rule did the Real Estate Settlement Procedures Act create?
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All costs must be disclosed
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If a designated broker is a member of NAR, does his agent have to be also?
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Yes
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What sign must be displayed in all real estate brokerages?
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Fair Housing and Equal Opportunity Sign
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In order for an adverrtisement to not be considered a blind ad, what must it contain?
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Employing Brokers Name
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The terms "Team or Group" may not refer to what?
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Trade Name (DBA)
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If the terms "Team or Group" are used in an ad, what must they refer to?
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Sales Agents
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Every Action that the salesperson makes is done under whos name?
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Designated Broker
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What words are subdivision ads never allowed to use?
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Endorsed by the commissioner - No Risk
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When is a property manager required to hld a real estate license?
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More than two properties
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What type of lease and contract do not have to be in writing
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Under 12 months or Broker to broker
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In a sale and leaseback, who owns the property?
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Lessor
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What type of lease has the tenant paying a fixed rent?
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Gross Lease
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What two things does an agreement for sale contain in one document?
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Security, Promissory Note
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What type of lease is used for land only?
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Ground Lease
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What is it called when you transfer your right and interest to another?
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Assignement
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What are security deposits treated as?
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Trust Money
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What is a Broker who works for the designated broker of a company called?
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Associate Broker
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Who does the term agent refer to?
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The salesperson
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When does personal property change to real property
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What it's affixed
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What is an attached item called when it changes from personal property to real property?
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A Fixture
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What is used to transfer personal property?
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Bill of Sale
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What type of value approach is being used when land is appraised seperate from improvement?
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Cost approach
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what is personal property called when used in a business or trade and attached to real estate?
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Trade Fixture
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Who owns trade fixtures
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Tennant during lease
Landlord after lease |
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What is required to identify and legally convey any interest or estate in real property?
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A legal description
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How many square feet in an acre?
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43560
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What does ADA cover if property has less than or equal to 25 employees?
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Hiring costs, inteviewing, planning
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How many feet in a mile?
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5280
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The term contigiuous means what
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Touching at any point
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How many square miles are in a township?
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36 square miles
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Where is a habendum clause found?
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In the deed
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How many sections are in a township?
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36
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What are the three types of legal descriptions?
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Metes and Bounds, Government Rectangular Survey, Lot Black tract
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What type of legal description uses distances and directions?
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Metes and Bounds
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Who does the assignment of rents clause protect?
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The beneficiary
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Which type of legal description is most commonly used with subdivisions
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Lot-Black-Tract
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If you are returning to the POB, which type of legal description are you using?
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Metes and Bounds
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A lease is an example of what type of property restrictions
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Encumbrance
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When a deed of trust is satisfied, what does the trustor receive?
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Deed of ReConveyance
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A lien is an example of what kind of property restrictions
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Encumbrance
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What are the four things about a property tax?
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Specific, Involuntary, Priority, Unrecorded
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What type of a lien is income tax?
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General
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What is the effective date of a mechanics lien?
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Date when work began
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What establishes position of lien or time and place of lien/
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Recordation
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When must a mecahincs lien be filed by?
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120 days after compeltition of entire project
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When does a mechanics lien take priority
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When the work began
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What does the word appurtenant mean?
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Attached to the land
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What type of estate is the giver of the easement?
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Servient Estate
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In order to obtain an easement by prescription, whats the time frame of use?
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10 years (hostile)
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What does an easement by necessity provide with the land?
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Ingress and Egress
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What did the 1988 fair housings amendment add to the FFH act?
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Disability and marital Status
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Who is responsible for restoring property if a handicap person makes some adjustments for convenience?
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The Tennant
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What is HUD's policy on unsolicited disclosure of the fact a seller has AIDS?
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Its illegal
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Does the protected class of handicap under FFH act include people with physical illnesses
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Yes
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Which act prohibits discrimination against gender
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House development act of 1974
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The federal Reserve Board implemented what regulation in the Truth in Lending Act?
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Reg Z
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what must be shown whenever monthly payments or interest rates are advertised?
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The APR rate
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If an equal housing opportunity sign is not displayed in a mortgage brokers office, what does this constitute?
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Discrimination
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What is it called when brokers direct members of certain minority groups away from some of their listings?
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Steering
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How much is an origniation fee usually?
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1%
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What is it called when a broker tries to profit by telling owners to sell because a minority groups may be moving into the neighborhood
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Blockbusting
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Who typically pays for owners title insurance policy?
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The Seller
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Who typically pays for lenders insurance policy?
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Buyer
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What is it called when a lender bases a loan application on national Origin?
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Redlining
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What is it called when a housing complex rejects a 35 year old person in a senior housing community?
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Exemption
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Can a private club legally give different treatment to it's own members?
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Yes
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What is the minimum penalty for a violation of fair housing laws?
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10,000
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What is the statue of limitiation on fair housing laws
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one year
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when a mortage is paid in full, when must a satisfation piece be recorded?
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Within 30 days of full payment
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What does the successful bidder of a mortgage foreclosure receive?
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Sherrifs Deed
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What is the redemption period of a mortgage foreclosure sale?
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6 months
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What happens to excess funds at a foreclosure sale?
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Goes back to the borrower
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What happens when the money from a foreclosure sale is not sufficient to repay debt?
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Deficiency Judgement
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In a deed of trust, who is the trustee
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Impartial third party
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Upon full payment of a deed of trust, what is required on the deed of reconveyance?
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Trustee Signature
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What is the redemption period on a trustee's sale
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90 days prior to the sale
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What type of loan provides for a sum payment at the end of specified term?
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Partial Amortization
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What type of loan covers more than one property?
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Blanket loan
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What type of loan covers personal and real property?
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Package Loan
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What type of financing cannot be a wrap around?
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Due on Sale
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What type of finacning is where a buyer receives title and gives note and mortage to seller?
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Carry back
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How does a lender get paid for writing the loan?
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Origination
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What type of lenders purchase and sell exisitng loans
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Secondary Lenders
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Who is PMI risk insurance for?
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The lender
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How much does a borrower need to put down to avoid paying PMI?
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20%
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PMI is used with what type of loan?
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Conventional
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MIP is used with what type of loan?
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FHA
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In a net lease, what does the lesee pay for?
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Rent plus charges
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with a FHA loan, who must do the appraisal?
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approved appiaser
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What type of loan does a borrower pay principle and interest monthly whereby ending with a zero balance loan?
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Amortized
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What type of loan does not lend directly to the borrower?
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FHA loan
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With what type of loan does the seller pay escrow fees?
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VA loan
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What are the four governemnt powers?
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Police, Eminenet Domain, Taxation, Escheat
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What type of private property is exempt from Eminent Domain
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None
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What is the process by which the government takes property by eminent domain?
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Condemnation
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What administers federal superfund sites
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EPA
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What did the Comprehensive Environmental Response, compensation and liability act of 1980 create?
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Superfund sites
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What can leaking USTS cause/
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Contaminated ground water
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What kind of license is required to subdivide land?
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none
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What is the rescission period on unsuspected, unsibdivided land?
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Six months (7 days if inspected)
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What is the rescession period on inspected unsubdivided land?
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7 days
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What can a subdivide do before receiving the CPR
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take reservations (Max 5000)
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When is CPR not needed?
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Unsubdivided land
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What is the max lot reservation a subdivider can take?
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5000
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how long does a subdivider have to keep the receipt of acceptance of cpr?
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5 years
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How long is a contract without proof of CPR voidable for?
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3 years
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In an open listing, who gets the commission?
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Whoever lists and sells the property
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What type of listing gaurenttes the broker a commission?
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Exclusive Right to Sell
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What type of listing does the broker get nothing if the seller sells it himself?
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Exclusive Agency
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How are commissions expressed?
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Percentage of list price
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How are commissions calculated?
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Percentage of Sale price
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When are commissions earned?
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When you find a willing, able, able buyer
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when are commissions paid and whom are they paid to?
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Employing Broker, @ COE
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Is it legal for an agent to earn a commission from both the buyer and the seller on the same transaction?
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Yes. Duel agency
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Who can take a seller to court to fight a commission dispute?
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Designated Broker
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Does an agent hvae to disclose a stigmatized property?
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No
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When must a lead based paint disclosure form be attached to a Contract?
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Prior to 1978
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What is misrepsentaiton with intent called?
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Fraud
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Is puffing legal?
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Yes, but frowned upon
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What type of environmental testing is required at schools by federal law?
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Ebstesos
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What is an option a form of?
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Unilateral Contract
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What is not a component of a valid contract?
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Earnest MOney
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What does death do to a contract?
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Nothing
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If seller wants to change only the closing date on an offer, what must he do;/
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Write a counteroffer
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What does the broker do once earnest money is received?
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Trust account within 24 hours or straight to title
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What happens when an agent is unavailable for 24 hours and another broker wants to present offer?
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WIth the permission of the seller this can happen (must be kept for 1 years)
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Once a counter offer is written, what happnes to the original contract?
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Void
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What is consideration in an Option contract
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Option Fee or Option Money
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Can an agent tell his buyer how to take title?
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No
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What is the maxium possible estate on can possess in real property?
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Fee Simple
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What is the duration of a freehold estate?
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Indefinite
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What type of estate is contingent on someones life?
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Life-Estate
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What type of ownership exists if it is not states and the couple is not married?
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Tennants in Common
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In joint tenancy with right of survivorship, what four factors must be equal?
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Possession, Time, Interest, Title
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How can corporations hold title?
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Severalty
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In community Property Ownership, what happens when one spouse dies?
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Remaining spouse only owns half
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What are the owners of an LLC called?
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Managing Members
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What type of wonership does a condominum owner have in the common area?
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Tennancy in COmmon
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Who owns a co-op
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Corporations
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What is the cancellation period of a time share?
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7 days
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What must be disclosed before time share presentaiton is given?
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Value of the time share
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What type of ownership does a single man hold for his townhouse?
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Severalty Of Land
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When is the closing official?
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Date of recording
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In joint tenancy with right of survivor ship, what happens when one person dies?
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reduces the amount of people on title by one
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What is recorded, signed document indicated the sale price of the property called?
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Affidavid of Sale
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What is it called when a title company turns earnest money over to the court because of a dispute
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Interpleader Actions
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Who supervises escrow agents?
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State supervisor of land
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What establishes or proves sales price to help determine taxes?
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Affidavid of sales
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How are taxes paid
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In arrear
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How is insurance paid?
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In advance
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When doing proration, what is the amont of days in a year and month if not stated otherwise?
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360 and 30
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Who prepares the HUD 1 statement
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Escrow Agents
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Who is repsonsible for delivering settlement statemnt to the buyer and seller?
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The agent
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What is the ownership hisotry of a property called?
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Chain of title
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What is a history of all recorded instruments that has affected title to a property ?
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Abstract of title
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What insurance policy is paid for by the buyer to protect the lender?
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Lenders Policy
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What type of document prevents forgery and ensures that the grantor has signed Voluntarily
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Acknowledged Deed
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What has to happen for the deed to be valid?
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Acceptance and Delivery
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What does it mean when a person dies intestate?
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WIthout a will
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What is it called to transfer real property by will?
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Devise
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What kind of properties does RESPA apply to?
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Residential Properties
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How long must a lender keept a settlement statemnt after COE
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2 years
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Who administers RESPA regulations
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HUD
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When must the settlement statement be available to the buyer and seller according to RESPA?
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1 day prior to closing
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Under RESPA what is the kick back penalty?
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1 year in jail, 10K, and loss of license
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What type of loans are not covered by respa
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Commercial
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What prohibits kickbacks in real estate?
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RESPA
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Which clause is the "To have and to hold"?
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Habendum clause
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Who must sign the deed for it to be valid?
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Grantor
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Who must sign the deed for it to be valid?
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Grantor
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What can distinguish a deed froma mortage instrument?
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Words of conveyance
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In recordation, what is not recorded by priority?
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Properrty Taxes (always first)
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What does proper redecoration of a property provide?
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Constructive Notice
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What is always first in priority
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Property Taxes
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In order for proper recordation, where must the property be recorded?
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County where it is located
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Which type of deed does the grantor accept responsibilyty for title defects that arose only during his ownership?
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Special Warrenty Deed
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Which type of deed offers the greatest protection
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General Warrenty Deed
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After redemtopion period, what type of deed is given at a foreclosure sale for failure to pay property taxes?
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Treasurers Deed
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What type of deed is given to convey property out of a deed of trust?
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Trustees Deed
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Which type of deed is often used as an expedient to remove defects in a title?
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Quick-Claim
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How is a loan value establishes
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Lowest number between appriased and sale price
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What are the tow major requirments to become an appriaser?
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Appraisers license and 2000 hours of apprentice work
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What are the four property characteristics that affect value?
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Demand, Scarcity, Utility, Transferbility
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What is a sllers market?
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More demand than Supply
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Which approach to value is most frequently used for residentail sales?
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Market Approach
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What is the only approach an appraiser can use to value land?
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Market Approach
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What type of appraisal approach would be used to value a post office?
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Cost Approach
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What type of appraisal approach would be used to value new homes?
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Cost apporach
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What is a home with five bedrooms and one bathroom an example of?
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Functional Obsolescence
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What type of deprecitaition is an example of railroad tracks running besides a home?
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Economic Obselence
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What type of approach to value would be used for office space?
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Income Approach
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What is designed to reflect the recapture of the original investment
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CAP Rate
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What type of agency is between a broker and his salesperson?
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General Agency
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What measures the risk involved in an investment?
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Cap Rate
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Which type of appraisal approach does not allow for variations in vacancies or bad debts?
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Gross Rent Multiplier
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