Real Estate Paper 9

Which of the following expenses is not deducted from effective gross income in calculating net operating income?

John purchases a home, and the seller helps to finance the sale. The price is $100,000, and John is to make a $10,000 cash down payment. The amount of the mortgage payments would pay it off in thirty years, but the owner requires that it come due in seven years. What type mortgage is this?

A seller tells a real estate licensee that he does not want his house shown to ethnic buyers. The sales associate should say

Jim Singletary wishes to construct an office building containing 24,000 square feet. The zoning in the area requires 1 parking space for every 400 square feet of building area. How many spaces will be necessary?

Which is not correct?
I. Redlining is not a violation of state and federal laws.
II. “Blockbusting” is a description of the practice of scaring owners into selling because of undesirable elements moving into the neighborhood.
III. A sales associate has a direct fiduciary relationship with his seller under an exclusive right of sale agreement.

John is a broker in Tallahassee, and meets for lunch with Martha, his most important competitor. They agree that, effective January 1 of the following year, both companies will begin charging 7.5% commissions on all residential properties. Which is correct?

A prospect enters Broker A office and requests to be shown houses in neighborhoods with certain racial characteristics. The broker advises the prospect that he will show him houses without regard to the racial characteristics of the neighborhood. The prospect is shown houses in certain minority neighborhoods and certain non-minority neighborhoods. The prospect becomes interested in two of the houses, both of which are in minority neighborhoods. If the broker had followed the prospects initial instructions, which of the following would be correct?

Which is deducted from gross income to arrive at net operating income?

A reasonably good balance between supply and demand of apartments is

The Fair Housing Act of 1968 (with amendments) prohibits discrimination