40 - The VA income to debt ratio cannot be higher than _______.

40 - Does a person have to be a veteran to assume a VA loan?

40 - The maximum term of either FHA or VA loans is __________.

40 - Do FHA and VA loans require a pre-payment penalty?

40 - At the time of closing, if the purchase is a new first mortgage from the lending institution, the buyer's cost typically is at least ______ of the loan amount plus discount points.

41 - An evaluation of the subject property by a qualified professional is called a/an ___________.

41 - The form that was created to standardize appraisals nationally is called the ____________.

41 - Creditworthiness is determined by the use of a ____________.

41 - Loan underwriting can be divided generally into these three categories:

42 - Each discount point that the lender charges costs someone ___ of the loan amount, payable at the time of closing.

42 - The Truth-in-Lending Law became effective in 1969 and was amended in 1980 and became the _________.

42 - Regulation Z of the Truth-in-Lending Simplification and Reform act now requires what four disclosures?

42 - The main purpose of Regulation Z is ________________________________.

42 - Regulation Z applies to ___________ loans.

42 - According to Regulation Z, within _____ days of application, the lender must provide the borrower with a disclosure statement which sets forth the true or effective annual interest rate (APR).

42 - If the borrower is refinancing an existing mortgage loan or obtaining a new mortgage loan an is pledging a principal residence already owned as security for the loan, there must be a ______ day period for right of rescission.

42 - Real estate agents must take care not to violate advertising requirements of _____________ when referring to financing or credit terms.

42 - Congress enacted the ___________ in 1974 to regulate the lending activities of lending institutions in making mortgages for homes.

42 - RESPA requires two main things:

42 - At the time of loan application, RESPA requires that the lender provide the borrower with a booklet entitled ________________.

42 - The __________ was enacted by Congress in 1975 and makes it unlawful for any creditor to discriminate against any loan applicant on the basis of race, color, religion, gender, national origin, marital status, age, or other reasons listed in their regulations.

43 - A _________ clause gives a borrower the right to defeat and remove the lien by paying the indebtedness in full.

43 - The two types of foreclosure are ___________ and ___________.

43 - After default and up to the time a foreclosure sale is held, the borrower has a/an _____________, which means that he can redeem his property by paying the remaining amount of the debt, interest and lender's cost in initiating the foreclosure.

43 - ___________ allows the borrower to pay the debt plus accrued interest and costs in full after the foreclosure sale (time depends on location - up to 2 years) and thereby recover the property.

43 - Proceeds of a mortgage foreclosure sale are distributed in the following order: ___________, __________, ________ and __________. After that the lien holder is paid unless there are other lien holders who have priority over that lien.

43 - If the proceeds from the foreclosure sale are not sufficient to satisfy the balance due, the lender can sue for a _______________ on the note.

44 - An agreement that grants one person the right to use the property of another for a certain period in return for valuable consideration is called a ___________.

44 - A lease agreement is a combination of what two things?

44 - A leasehold estate is generally classified as the ______________ of the ____________.

44 - What are the six requirements for a valid lease?

44 - A lease must be in writing if it is for more than ___________.

44 - The most widely used statute for leases is the ______________.

44 - Does a landlord have an automatic right to inspect the leased premises? ____

What does a landlord have a right to do?

44 - A landlord is obligated to _____________ and to ______________________.

44 - Unless the lease states to the contrary, the tenant ________ to assign his/her rights and the landlord _________ the tenant to sublease it.

44 - If a tenant subleases his/her property, then the original lease becomes a _________ lease.

44 - Failure to use the care a reasonable person would use in like circumstances is called ___________.

44 - Under the law of negligence, a person is liable for damager that result to another person if ___________________________.

44 - A landlord can be liable for negligence if he does not show _______________ by exercising the care that a reasonable and prudent person would exercise under like conditions.

44 - In addition to the basic duty of care, a landlord can also be liable for negligence if he fails to ______________________.

45 - Today, in jurisdictions that have adopted specific landlord-tenant legislation, withholding rent (a rent strike) is ______________________.

45 - In the case of a "slumlord" situation, where the landlord refuses to maintain the property, tenants are allowed to withhold rent but are required to ____________________________________.

45 - In some "slumlord" situations, the tenant can claim ___________________ and thus be relieved of the obligation to pay rent. In such cases, through the landlord's lack of care, the tenant has been evicted.

45 - To claim constructive eviction in most states, the tenant must actually ________________________ while the conditions that make the premises uninhabitable still exist.

45 - A _____________ is a sum of money deposited with a landlord that is to be refunded at the end of the lease. This money is intended to pay for _______________________________ -- not for ordinary cleaning and repainting.

45 - A lease can be terminated by a landlord if a tenant __________________ such as by failing to pay rent.

45 - If a tenant fails or refuses to vacate the premises, he is called a ______________.

45 - A landlord is allowed to ___________ a tenant using the court system. A landlord is not allowed to ____________, where he physically removes the tenant's access to the premises or takes action to prevent tenant access to the premises.

45 - A suit for possession (when a tenant improperly retains possession of leased premises) is known as _______________.

45 - Does a lease agreement typically terminate upon the death of the landlord or the tenant?

45 - Leasehold estates are generally classified as __________________.

45 - Four principal types of leasehold estates

45 - A/an _____________ runs for only a fixed period of time.

45 - A/an ___________ runs for an indefinite number of time periods.

45 - _______________ is a leasehold that runs for an indefinite number of time periods and automatically renews at the end of each lease until one party gives notice to the other at a prescribed time prior to the end of the lease.

45 - An estate in which either party may terminate the lease simply by giving notice to the other party is known as ___________. This estate is completely open-ended. An example is a parent renting to an adult child.

45 - A tenant who was originally in lawful possession of another's property but who refuses to leave after his right to possession has an _____________. A tenant in this type of estate is called a _________ and not a trespasser.

45 - A clause in a lease which addresses the possibility of a tenant's failure to vacate upon the expiration of an estate for years is called a ___________ clause.

45 - A lease in which the tenant pays all or some of the expenses except principal or interest on the owner's debt is called a ______ least.

45 - ___________, __________, and ___________ are not considered operating expenses and are not expenses of the building, therefore are not part of a net lease.

45 - A __________ lease is one in which the rental amount changes over time (usually increasing).

45 - A/an ___________ lease is one in which the rent changes at agreed-upon intervals.

45 - A _______________ lease is an agreement whereby the tenant pays a fixed rental rate and the building owner pays all the operating expenses.

45 - A lease in which the rental amount remains constant during the term of the lease is called a _______ or __________.

45 - With a __________ lease, rent amounts can change every 3-5 years, based on changes in property values.

45 - Many retail commercial leases are ____________ leases, which charge a base rent in addition to monthly rent that is a percentage of the lessee's gross sales.

45 - A lease on unimproved land, usually for construction purposes, is called a __________ lease.

45 - In ___________ leases, the landowner usually receives a one-time lease payment in exchange for giving the oil and gas company the right to drill on their property. Sometimes the owner is compensated with a percentage of the revenues from the drilling.

45 - A transaction where a property owner sells a property to an investor and the investor immediately leases the property back to the seller is known as a ___________ lease.

46 - A person who manages properties for owners as their agent is known as a ______________.

46 - Because a property manager acts as the owner's agent in managing, renting, leasing, and perhaps selling the property, the property manager must ______________________________.

46 - A property manager's individual employment contract is called a ________________________________.

46 - Usually, a property manager's compensation is ________________________.

One of the most important functions of a property manager is to supervise ___________________. This can include: ________, __________, and ___________.

46 - Ownership and use of real estate often brings risk, but property managers seeks to find ways to __________ or to ______________________________.

47 - While mathematics is a helpful tool in making an appraisal, the final opinion of value is based primarily on _________________________________.

47 - The three approaches to estimating market value (appraisals) are:

47 - In terms of appraisal, value may be described as the ___________________ of __________________ derived from the _________________________________.

47 - What is market value?

47 - Four characteristics needed to have value in the real estate market

47 - Market value implies a non-related buyer and seller in an _________ transaction in which both parties are dealing from equal bargaining positions.

47 - ___________ is a study of the usefulness or utility of a property without reference to the specific estimate of value.

47 - What are the six types of value that are often the subject or purpose of an appraisal?

47 - The __________ value is normally a percentage of the market value. It is determined by a local or state official and is applied to establish the amount of tax imposed on a property.

47 - Assessed value is calculated by using what formula?

47 - ___________ value is the cost of replacing or reproducing the structure in the event of a total loss.

47 - Insurance value is calculated by:

47 - The ___________ value is whatever the lender believes the property will bring at a foreclosure sale or subsequent resale.

47 - ______________ value is the value of property that is condemned by eminent domain. Also, if the whole property isn't condemned, it's the difference in the market value of the property before and after condemnation.

47 - An artificial value used for accounting or tax purposes in connection with establishing a depreciation schedule for a property based on the property's useful life is called the ______ value.

47 - ______________ is a non-cash expense that reduces the value of an asset over time.

47 - What are the three types of depreciation?

47 - Assuming a property is assigned the tax life of 27.5 years (according to the IRS), what is the rate of depreciation applied to real estate?

47 - If a property originally cost $100,000 and it is 8 years old, how would you figure the straight line depreciation and how would you figure the present book value?

47 - How does an appraiser come up with an appraisal report?

48 - Estimating the value of property by comparing the prices paid for similar properties and concluding the value accordingly is called ________________.

48 - The ___________ is a listing tool that a sales agent prepares in order to show a seller what the home is likely to sell for. It also helps an agent decide whether or not to accept a listing.

48 - The CMA is different from an appraisal because _____________________________.

48 - Real estate is evaluated on a __________, not objective, basis. A home does not have value just because it is there (objective); it has value due to numerous characteristics,
such as the location, the quality, and the size, among other items.

48 - __________ is the desire or need for property coupled with the financial ability to satisfy the need

48 - Feasible use that will produce the highest current value is called the __________________

49 - The income allocated to the land a residual income under the principle of highest and best use is defined as ______.

49 - The rent agreed upon in a contract between landlord and tenant is called _____________.

49 - Under the principle of __________, the highest value of a property has a tendency to be established by the cost of purchasing or constructing another property of equal utility and desirability if the

49 - __________ occurs when a large elegant home is located in a neighborhood of modest ranch-style homes.

49 - The principle of ___________ states that the worth of a lesser object is increased by being located among better objects, such as a modest ranch style home located in the middle of a neighborhood or large elegant homes.

49 - Under the principle of ___________, property value is based on the expectation of future benefits of ownership

49 - The principle of ______________, also called the principle of diminishing returns, states that various elements of a property add value to the entire property. It means that we should invest dollars whenever they will return to us more than $1 of value and stop when it doesn't.

49 - The principle of __________ states that when the net profit a property generates is excessive, others will be drawn to produce similar properties.

50 - What are the first two steps of the appraisal process?

50 - The ________or ________ is the primary appraisal approach for estimating the value of single family, owner-occupied dwellings and vacant land.

50 - The _________ approach, also called _________________, is the primary method used to estimate the present value of properties that produce income, such as single-family rental homes, apt complexes, mobile home parks, parking lots, malls, office buildings, etc.

50 - How is the value of a property estimated using the income approach?

50 - The ___________ can be described as a desired rate of return by the marketplace for a type of investment.

50 - ___________, _________ and _________ are used in an analysis to produce the net income, which applies to the capitalization formula:

income divided by rate = value

51 - What does it mean to capitalize the income stream and what is the formula for this?

51 - ________________ expenses are those expenses necessary to maintain the production of income -- they will vary from month to month.

51 - ___________ are those expenses that do not fluctuate with the operating level of the complex.

51 - The third type of expense for a property is _____________. This represents the amount of money set aside to replace equipment and make improvements.

51 - What are the three categories of expenses for a business property?

51 - What are the two types of depreciation?

51 - Over how many years does the IRS currently allow a purchaser to completely depreciate a structure?

51 - The lower the cap rate, the _______ the value.

51 - The higher the cap rate, the _____ the value.

51 - It's hard to come up with a cap rate, but usually it is _______________.

51 - A _____ ratio of quick assets to current liabilities is generally acceptable for a business firm.

52 - What is the CAP rate designed to reflect?

52 - What is the formula for finding out the cap rate?

52 - What is the formula for finding out the estimated value?

52 - The _____________ is an economic comparison factor that relates the gross rent a property can produce to its purchase price. This is also called a ___________________.

52 - What is the formula for computing the gross rent multiplier (GRM)?

52 - In figuring GRM, 1-4 unit residential properties use a________ GRM, while larger properties use a/an _________ GRM.

52 - GRM (gross rent multiplier) has a degree of unreliability because _____________________.

52 - The ___________method is the most useful for appraising new or proposed construction, and also for service properties such as churches or post offices.

52 - How does the direct sales comparison approach work and what type properties is it best for?

52 - How does the income approach work and which types of properties is it used for the most?

52 - What are the four steps involved in the cost approach?

52 - The most accurate but also most time-consuming and complex method of estimating reproduction or replacement costs is the ________________ method.

52 - The most widely used method of estimating reproduction or replacement costs is the _____________ method.

52 - The ___________ method of estimating reproduction or replacement costs involves the detailed determination of the exact quantity of each type of material to be used in the construction and the material & labor costs for each unit.

52 - ___________ results from outmoded equipment, faulty or outdated design, inadequate structural facilities, over-adequate structural facilities.

52 - Functional obsolescence can be separated into two categories: ___________ and _______________.

52 - ___________ is the loss of value due to external forces or events outsides the property boundaries such as the closing of a local job source.

52 - Every structure has two ages: the _________ age and the __________ age.

52 - Chronological age is measured by _________________________.

52 - Effective age refers to ________________________________.

52 - What are the three traditional formats for appraisal reports?

53 - The process where an impartial third party, such as an attorney, an escrow company or a title company, is entrusted with the job of seeing that the transfer of ownership takes place according to the terms of the contract.

53 - The way the buyer wants to take title to the property is referred to as __________.

53 - What is the most important thing for a real estate agent to remember to do before closing?

53 - What are the two most common types of closings?

54 - RESPA prohibits certain practices in real estate transactions, including _________ or ___________________.

55 - The first significant statute affecting equal housing opportunities is the _____________________.

55 - The 1866 equal rights law contains the blanket statement that all citizens have the same rights to ________________.

55 - The ____________ prohibits discrimination in housing on the basis of race, color, religion or national origin. It is also referred to as ______________.

55 - The Fair Housing Act was amended in 1974 and 1988 to prohibit discrimination on the basis of ________, _________ or ___________.

55 - Although the Fair Housing Act intended to provide fair housing, it wasn't very effective until 1988 because it lacked a means for ____________.

55 - Congress passed sweeping amendments to the Fair Housing Act in _______ which took effect in _______.

55 - What are the penalties that can be imposed for discriminating in housing?

55 - The ___________Act took effect in 1992 to protect the rights of individuals with disabilities.

55 - The ADA defines disability as __________________________________.

55 - The ADA is enforced by the ____________________________.

55 - Violations for violating the ADA can be up to __________ for the first offense and up to ____________ for subsequent offenses.

56 - Title I of ADA is about ____________.

56 - Title II of ADA is about ________.

56 - Title III of ADA is about ___________.

56 - Title IV of ADA is about ___________.

56 - Title V of ADA is about ____________.

57 - The U.S. Supreme Court ruling of _______________ in _________ held that separate facilities were okay as long as they were "equal."

57 - In ______, the U.S. Supreme Court reversed the "separate but equal" decision from Plessy v. Ferguson in the _______________ decision.

57 - In 1962, President Kennedy signed an executive order, entitled ___________, but it had a limited impact.

57 - In June of 1968, the U.S. Supreme Court rendered its decision in ___________, and held that the Civil Rights Act of 1866 banned private as well as government racial discrimination in housing.

57 - Which amendment abolished slavery?

57 - Which amendment prohibited government discrimination?

58 - _________ means slanting the choices of listed property made available to minority prospects, so that the properties most suitable to the prospect in terms of quality, price and needs, appear to be available only in minority or changing neighborhoods.

59 - ____________ occurs when a person, for profit, induces or attempts to induce a person to sell or rent a dwelling by making representations regarding the entry into the neighborhood of persons of a particular race, color, religion, sex, handicap, familial status or natl. origin.

59 - Exceptions to the Fair Housing Act:

60 - When was the Alabama Real Estate Commission established?

60 - How long should all but one member of the Alabama Real Estate Commission be a realtor before serving?

60 - How many people from a U.S. Congressional district may serve at the same time?

60 - How long are terms for the AREC and how many can they serve consecutively?

60 - All appointments shall expire on ____________ of the final year of a term or ____________________________.

60 - One member of the AREC is a _______________ member. Some of the conditions for this member are _______________________________.

60 - The executive director and asst. exec. director are employed based on _________, ______________, and ___________________.

AL - Explain the composition of the AL Real Estate Commission

AL - What is the purpose of the AL Real Estate Commission?

AL - Any broker other than a qualifying broker is a/an ____________________.

AL - A fee paid to a broker is a ___________.

AL - A lawful business organization is a ________________.

AL - A broker under whom a lawfully constituted business organization operates is a ____________.

AL - Four ways for a license to be inactive:

AL - Any broker, salesperson or company is referred to as a/an ________________.

AL - What is the renewal period information for a license?

AL - A rural person may operate from home if:

AL - If a broker is in the city limits, what are the rules for his/her office?

AL - A license is required for doing these things in Alabama:
(use acrostic)

AL - You don't just have to have a license to _______________, you have to have a license to ____________ or _____________.

AL - What is a license NOT required for?

AL - Is an auctioneer required to have a real estate license?

AL - Is it required to have a license to buy, sell, or offer to buy or sell or otherwise deal in options on real estate situated in AL?

AL - Do you have to have a license to aid, attempt or offer to aid in locating real estate for purchase in AL?

AL - Do apartment managers in AL have to have a real estate manager?

AL - Does a condo manager have to have a real estate license in AL?

AL - Does a time share seller have to have a license in AL?

AL - Is a real estate license required to sell cemetery lots in AL?

AL - In regards to an out-of-state co-brokerage, the AL broker shall:
(6 things)

AL - No person may serve as a qualifying broker for more than one company unless: (3 things)

AL - How old does a person have to be in order to be licensed in AL?

AL - A person whose application ____________________ is eligible to apply for a real estate license in AL.

AL - The fee for renewing a license is _____ for a salesperson and _____ for a broker.

AL - Does an applicant have to have a college degree?

AL - What are the continuing education requirements for AL licensure?

AL - What is the deadline for completing continuing education requirements in order to keep license from becoming inactive?

AL - A licensee must complete ________ before applying for original license.

AL - To transfer a license, you must _____________ and then _______________.

AL - What is the charge for any change to license?

AL - A new licensee must get a ____________ within _____________ and before ______________________.

AL - If an inactive license is not renewed within the next 12 months, it _______ and the licensee must ______________.

AL - A licensee may stay inactive for ____________ .

AL - For a licensee to reactivate a license, he/she must ___________, ____________, and ______________.

AL - Each company location must have two things:

AL - Three responsibilities of a qualifying broker:

AL - Requirements for broker license:

AL - To get an AL reciprocal broker's license, the applicant must complete ____________ and _____________.

AL - In the event of death or disability of a qualifying broker, what happens to a company?

AL - What is the purpose of the recovery fund?

AL - Can a broker or salesperson use the recovery fund when acting on his/her own behalf?

AL - Can the Recovery Fund be used for time share?

When applying for an original license, a salesperson or broker will pay a _________ fee of __________ into the Recovery Fund.

AL - When the balance of the Recovery Fund drops below ________, each active licensee will be required to pay an additional _____________.

AL - When a aggrieved person recovers a valid judgment against a licensee, the license ______________________.

Payment limits from the Recovery Fund are ___________ per transaction to a total limit of _____________.

AL - Any violation of the real estate law is a _______________ and is punishable by a fine of __________________ as well as _______________________.

AL - The licensee who procures a written offer in a single family residence shall prepare _______________ and also furnish __________________________.

AL - Presentiing a bad check to the AREC will cost _____________.