5) Mike signed a rental agreement for his friend Norm. 9) When a tenant agrees to pay all taxes, insurance, maintenance and repairs, that tenant has what kind of lease? c) To reimburse clients for money that was misused by their attorney.  c) debits to the buyer.  d) If the party who wants to enforce the contract seeks damages. 10) Buyer Rich has asked Seller Sally to hold $15,000 as a second mortgage.  b) pay the real estate taxes. In addition, the Registrar of Titles can convert general law land to Torrens land.  c) have more forms than government-backed loans.  b) Norm can complete the lease agreements as long as he has a lawyer co-sign them.  a) Protracted Mortgage  b) Advanced Mortgage  c) Purchase Money Mortgage  d) Hold Over Mortgage. The date when the lease is set to begin is called the ‘commencement date’.  a) Credit report  b) Homeowner's insurance premium  c) Earnest money deposit  d) Home inspection. A lease is the legal agreement to rent something. Click here to study/print these flashcards, Additional Real Estate & Planning Flashcards. The IFRIC considered whether long leases of land would represent a situation when a lease of land would not normally be classified as an operating lease even though title does not transfer to the lessee.  c) a 4 percent down payment. The present value of the minimum lease payments at the beginning of the lease term is 75% or more of the fair value of the property at the inception of the lease. 6) RESPA applies to all of the following EXCEPT which? A capital lease is a lease of business equipment that represents ownership and is reflected on the company's balance sheet as an asset.  d) estates from period to period. This is an example of a.  a) legal and binding contract.  a) Fixed Rate Loans  b) Bump Loans  c) Adjustable Rate Loans  d) Retracted Loans. The buyer's primary function at closing is to. He does not have to pay off his existing mortgage in order to qualify. 6) Buyers Jim and Jan are closing on a home later this month. 4) How is the interest on a ARM loan determined? A licence only gives right to occupy and does not create an interest in the land and can be revoked anytime. These leases usually need some form of registration in order to make them binding on the purchaser of the reversion. For instance, a document even though called a ‘licence’ is not conclusive and shall not prevent it from being called a lease.  a) for a buyer who plans to own the property for a short time and believes the property will appreciate during that time. 1) What is another term used to describe a promissory note? This means that. Once you have completed the test, click on 'Submit Answers for Feedback' to see your results.  c) It is not voidable.  a) every four years. In a capital lease of land and buildings that contains a bargain purchase option, both the land and buildings are accounted for as a single unit by … A patron at a restaurant is agreeing to a(n). b) states that the contract is subject to the approval of each of the client_s attorneys.  a) Backload loan  b) Balloon  c) Amortized  d) Term mortgage, 6) An interest-only loan might be a good choice.  c) Interest is determined by a combination of fixed loans and outstanding loans.  c) If the party who wants to enforce the contract seeks legal relief.  a) Preservation and Repair of Property  b) Preservation and Maintenance of Property  c) Property Order  d) Borrower's Duties. 8) Money that the buyer or seller needs to pay at closing is called what?  c) valid but unenforceable contract. b) In a sublease, the original tenant retains primary responsibility for performance of the original lease contract. a) It represents a "meeting of the minds.". 9) Bill has informed his landlord that he will be moving in 30 days.  a) deliver the title. Operating leases are considered a form of off-balance-sheet financing—meaning a leased asset and associated liabilities (i.e.  a) Revision  b) Reorder  c) Rescission  d) Refile.  c) settlement statement.  a) The contract must be rewritten and signed again. 5) What is the interest rate on an ARM tied to?  a) Prior deed  b) Copy of property tax bill  c) Prior title insurance policy  d) Seller's credit report.  a) They can cancel the contract and get their earnest money refunded.  a) The potential buyer, the optionee, is obligated to buy the property once the option agreement is completed. Short legal leases of three years or less, provided the tenant is granted an immediate right to possession of the land requiring payment of an initial sum (a premium) and the lease is granted 'at best rent,' can be created orally.  b) The mortgage contingency clause is not valid. Land held for long-term capital appreciation Intangible asset held for lease Equipment held for lease Building and Equipment held for lease 6.Which of the following properties falls under the definition of investment property?  d) The landlord cancels the lease.  a) the lender must have a reserve balance on hand to cover the loan amount.  c) The borrower pays a fixed rate of interest.  b) the gross national product. c) the mortgage itself provides the only security for the loan. 8) PMI loans made after July 1999 require that the loan must be released. Periodic leases are those that are granted for a period and will renew from one period to another until there is ‘notice to quit’. Property occupied by an employee paying … b) If the party who has reason to disaffirm the contract elects instead to perform it.  a) It is common business practice. 2) Jim signed a six months lease.  a) Margin  b) Index  c) Payment cap  d) Rate cap. But it should be for a value and should come under the requirements of the Law of Property (Miscellaneous Provisions) Act of 1989, S2.  d) They are always divided equally between the buyer and the seller. This definition identifies three essential …  b) neither an instrument of conveyance nor contract.  c) 1 percent of the loan amount. 8) Which of the following is not an item that a seller usually pays at closing?  b) All the parties must initial the changes. 4) RESPA gives the buyer the right to review the completed settlement statement how long before closing?  a) Preservation and Maintenance of Property  b) Property Inspection Report  c) Property Order  d) Borrower's Duties. 7) Jim holds a commercial lease.  b) It's an invalid contract. In leveraged and non-leveraged leases, the value of the asset leased may be of a huge amount which may not be possible for the lessor to finance.  d) property inspection. 7) Which kind of lease increases at specified intervals? c) A chronology of successive owners of record of a parcel of real estate.  b) via handwritten notes. When the reversionary title is not registered, the first registration of title is granted, but the title to the reversion will remain unregistered. B)Land being leased normally has a building on it. 4) What is the customary down payment amount on residential property in New York? b) A tenant buys the landlord's ground, then leases the improvements. 6) Paul's loan payment is the same amount each month.  d) subject to review by a panel of peers.  a) Act within a statutory period. This is usually done when the landlord grants several leases in the same building, but wishes that all of them expire on the same day. 1. A)Land normally has an indefinite economic life.  a) a 1 percent down payment. A lease need not take effect (in possession) immediately and can also be granted to take effect at a later date.  a) All residential property  b) Homes built prior to 1978  c) Only commercial property  d) Only rental property. A.  a) Percentage  b) Net  c) Provisional  d) Graduated. Complete the form below and we will call you back right away!  a) requires recording of a leasehold conveyance. create, study and share online flash cards. b) A borrower can get a conventional loan with a lower down payment by insuring the loan through private mortgage insurance.Â. As for the tenancy period, this shall be determined by the frequency with which the rent is paid.  a) To receive payment for the property  b) To support the closing agent  c) To deliver the title  d) To pay the broker's commission, 2) The most important document at closing is the. 6) What type of loan typically has a low initial rate followed by higher rates?  d) pay the purchase price for the property. Capital Leases . 3) Borrower Jake has defaulted on his mortgage and the lender has required the loan to paid in full. (Assume it is not a leap year and the day of closing belongs to the seller. During this interim period, Grant makes monthly rent payments and the owner accepts them.  b) the mortgage must be held by the originator until all terms have been meet.  d) Amanda has done nothing wrong. 5) What is the purpose of the Statute of Frauds?  b) for a buyer who plans to own the property for a long time.  c) A borrower can get a VA loan with a lower down payment by insuring the loan through private mortgage insurance. 9) PMI loans made after July 1999 are now regulated by Federal law. 13) Which organization insures loans made by approved lending institutions? 10) Which loan covers the period of time between the end of one mortgage and the beginning of another? The standard specifies that lease contracts that include land as well as other assets, must be separated with the right to use the land (sometimes referred to as a land easement or right of way) as a separate lease component.  a) Good Faith Estimate  b) Truth-in-Lending Statement  c) HUD-1 Form  d) Mortgage Loan Disclosure Statement. A lease is an interest in the land that gives exclusive possession to the tenant for a fixed period of time. Which of the following is TRUE? Leases that are not created under S54 (2) of the LPA 1925 or not created by deed are called equitable leases.  a) Condominium purchase  b) Seller-financed loan  c) Loan involving a second mortgage  d) Federally-insured loan. When the reversionary title is unregistered, the lease should be registered as a Class C (iv) land charge and should be under the name of the owner of the immediate reversion.  d) the borrower must have a co-signer. d) require higher down payments than government-backed loans require.  c) estate at sufferance. The following terms are used in this Standard with the meanings specified. 7) What kind of lease contains a recapture clause? 3) Which of these is a common property description?  d) require higher down payments than government-backed loans require. How would Grant_s lease at this time be classified? 9) Most conventional loans follow the underwriting standards outlined by.  d) states that a lawyer can rescind the contract terms within 10 days of contract approval. a) Proceeds from tax exempt mortgage revenue bonds. This is known as what type of account? 4) A contract that conveys an interest in real estate must.  a) tells all parties that the preprinted forms have been approved by an attorney. Tenant Kelly read his lease very carefully and could find no restrictive covenant regarding the use of the property. 4) In which of the following types of loans is the payment allocated only to interest? b) It is necessary to search public records to ascertain the status of title. d) Tim and Laura have not acted in good faith; so they cannot get their earnest money back.  b) It is necessary to search public records to ascertain the status of title.  d) no money down.  a) covers more than one piece of property. 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