45-HOUR PA FINAL EXAM

Effective gross income minus total operating expenses equals: - Answer- net operating income. Why does maintaining independent contractor status create a problem for some brokers? - Answer- It limits control over licensees. What is it called when a person reframes the issues of a conflict in such a way that both parties benefit? - Answer- Win-win negotiations What is the most attractive offer for a seller? - Answer- A cash offer What do states often offer to businesses in the form of tax credits, special taxes, rebates, and similar programs? - Answer- Development incentives Landlord Fred systematically turns off the water for short periods of time to minority tenants in the hope they will move out. This is an example of: - Answer- target discrimination. What mortgage clause allows the mortgagors to pledge a property as collateral? - Answer- Covenant of seisin Commercial property is used specifically for: - Answer- business purposes. In the mortgage loan process, which party actually purchases private mortgage insurance when required? - Answer- The lender What is the most widely used form of capitalization? - Answer- Direct capitalization A licensee who gives away one of his or her client's secrets could get into trouble with: - Answer- the broker. What principle holds that a property is affected by the surrounding properties? - Answer- Substitution What will a higher interest rate do to a monthly payment? - Answer- Raise it When would a licensee, employed by the broker, not act as a buyer's agent for one of the broker's buyers? - Answer- When another licensee is named to act as a designated agent Standard property shapes are usually perceived to be more valuable than irregular lots because of: - Answer- adaptability.