Real Estate Pt 2

Paint, plumbing pipes, and airborne particles are a common source of lead contamination. Lead-based paint, especially in older homes, can deteriorate over time and release lead particles into the air. Plumbing pipes made of lead or with lead solder can also leach lead into drinking water. Airborne particles, such as dust or soil contaminated with lead, can be inhaled or ingested, leading to lead exposure. These sources pose a significant risk to human health, especially for children who are more vulnerable to the harmful effects of lead.

Asbestos removal should be done by a certified professional because they have the necessary training and expertise to safely handle and dispose of asbestos. Asbestos is a hazardous material that can cause serious health issues if not handled properly. Certified professionals are knowledgeable about the proper procedures and precautions to minimize the risk of asbestos exposure during removal. This ensures the safety of both the workers and the surrounding environment. It is important to hire a certified professional to ensure that asbestos removal is done correctly and in compliance with regulations.

A competitive market analysis is an attempt to identify an estimate of a property's value based on comparables. This analysis involves comparing the property in question to similar properties in the market that have recently been sold or are currently listed. By examining the prices at which these comparable properties were sold or listed, an estimate of the property's value can be determined. This information is valuable for both buyers and sellers in understanding the market value of a property.

FHA stands for Federal Housing Administration. This organization insures loans made by approved lending institutions.

A 2 year lease must be in writing because it falls under the Statute of Frauds, which requires certain contracts, including leases for a term longer than one year, to be in writing in order to be enforceable. This is to prevent disputes and ensure that there is clear evidence of the agreement between the parties involved.

The important legal characteristic of an option to buy agreement is that the optioner, the party granting the option, is obligated to perform if the optionee, the potential buyer, decides to exercise the option and purchase the property. However, the optionee is not obligated to buy the property even after taking the option. This means that the optionee has the right to choose whether or not to proceed with the purchase, while the optioner is bound to fulfill their obligations if the optionee decides to proceed. This characteristic makes it a bilateral agreement, as both parties have certain rights and obligations.

A lead-based paint disclosure is used for homes built prior to 1978. This is because lead-based paint was commonly used in residential properties before 1978, and it poses a health risk, especially to young children. The disclosure is meant to inform potential buyers or renters about the presence of lead-based paint in the property, allowing them to make an informed decision and take necessary precautions if they choose to proceed with the purchase or rental.

A blanket mortgage is a type of mortgage that covers more than one piece of property. This means that instead of taking out separate mortgages for each individual property, the borrower can use a blanket mortgage to finance multiple properties under one loan. This can be advantageous for real estate investors or developers who own multiple properties and want to streamline their financing. By consolidating multiple properties into one loan, the borrower can potentially simplify their financial management and potentially qualify for better loan terms.

When evaluating a buyer's ability to repay a loan, lenders typically consider factors such as past credit history, present employment status, and liabilities. However, educational history is not usually a significant factor in this evaluation process. Lenders are more concerned with the buyer's financial stability and ability to make timely loan payments, which are better assessed through factors such as credit history, employment status, and liabilities.

When a municipality exerts its power of eminent domain against a certain property owner, the owner is required to either sell the property to the municipality or grant an easement to the municipality. In either case, the owner is entitled to receive just compensation for their property or the easement. This means that the owner will be compensated fairly for the value of their property or the rights they are granting to the municipality.

Freon is the correct answer because it is a type of gas commonly used as a refrigerant in air conditioners. It has excellent cooling properties and is able to absorb heat from the air inside the unit, allowing for the cooling effect to take place. Methane, CO2, and propane are not typically used for cooling in air conditioners.

Asbestos poses a health hazard when it is released into the air as dust or fibers. When asbestos-containing materials are disturbed or damaged, the fibers can become airborne and be inhaled into the lungs. Inhalation of asbestos fibers can lead to serious health issues such as lung cancer, mesothelioma, and asbestosis. Therefore, it is important to handle and dispose of asbestos-containing materials properly to prevent the release of dust or fibers into the air.

Amanda has illegally commingled the earnest money with her own money. This means that she has mixed the earnest money, which belongs to someone else, with her own personal funds, which is against the law. Commingling funds is a breach of fiduciary duty and can lead to legal consequences.

The phrase "wheelchair ramp" would not be considered discriminatory if used in advertising because it is a neutral and inclusive term that refers to a specific feature that accommodates individuals with disabilities. It does not exclude or discriminate against any particular group based on race, religion, or marital status.

An important legal feature of a contract is that it represents a "meeting of the minds". This means that both parties involved in the contract have a clear understanding and agreement on the terms and conditions stated in the contract. This ensures that there is mutual consent and understanding between the parties, which is essential for the contract to be legally binding and enforceable.

The correct answer is "no money down." The explanation for this is that the Veterans Admin offered veterans returning from WWII the opportunity to purchase a home without having to make any down payment. This was done in an effort to make it easier for veterans to afford a home after their service. By eliminating the need for a down payment, the Veterans Admin aimed to provide a more accessible option for veterans to become homeowners.

Fannie Mae, short for the Federal National Mortgage Association, is a government-sponsored enterprise (GSE) in the United States. It was created to provide stability and liquidity to the mortgage market by purchasing and guaranteeing mortgages from lenders. Fannie Mae plays a crucial role in the housing finance system, helping to make homeownership more affordable and accessible for borrowers. It is not to be confused with Ginnie Mae or Freddie Mac, which are other GSEs with similar purposes but different roles and responsibilities.

In most jurisdictions, the planning board is responsible for managing the master plan. The planning board is a governmental body that is typically tasked with making decisions and recommendations regarding land use, zoning regulations, and urban development. They work to create and implement a comprehensive master plan that outlines the long-term goals and vision for the community's growth and development. This involves considering various factors such as infrastructure, transportation, housing, and environmental concerns. The planning board plays a crucial role in shaping the physical and social aspects of a city or town.

Public utilities may be able to condemn property under the power of eminent domain. Public utilities are organizations that provide essential services to the public, such as electricity, water, and gas. They often require access to land for infrastructure development and expansion. Eminent domain allows the government and certain authorized entities to take private property for public use, with fair compensation to the property owner. Public utilities, being entities that provide essential services, may have the authority to exercise eminent domain to acquire the necessary land for their operations.

The fundamental purpose of a building permit is to ensure that improvements comply with codes. Building permits are required by local governments to ensure that construction projects meet safety standards and adhere to building codes. They help to ensure that buildings are constructed in a way that is safe for occupants and the surrounding community. By obtaining a building permit, individuals or organizations must adhere to specific regulations and guidelines, promoting compliance with codes and regulations to ensure the safety and integrity of the structure.

The correct answer is the comprehensive environmental response, compensation and liability act. This law, also known as CERCLA, was enacted in 1980 and created the Superfund program. The Superfund program is responsible for cleaning up hazardous waste sites and holding responsible parties accountable for the costs of cleanup. CERCLA also established a trust fund, known as the Superfund, to finance the cleanup efforts.

Pesticides can pollute drinking water because they are chemicals used to kill pests and can easily contaminate water sources. When pesticides are sprayed on crops or used in gardens, they can runoff into nearby rivers, lakes, or underground water sources. This contamination can pose health risks to humans if consumed, as pesticides are toxic and can cause various health issues. Therefore, pesticides are a potential pollutant that can contaminate drinking water sources.

Percolation tests are used before a septic tank is installed to determine the absorption rate of the soil and whether it is suitable for a septic system. This test helps to assess the ability of the soil to filter and treat wastewater effectively. By conducting a percolation test, the installer can determine the appropriate size and design of the septic system, ensuring that it will function properly and not cause any environmental or health hazards.

The given scenario describes a situation where the value of Tim and Sue's home is increased due to the higher value of other homes in the neighborhood. This indicates a progression, as the value of their home is progressing or increasing along with the increasing value of the other homes in the sought-after neighborhood.

Tim and Laura cannot get their earnest money back because they did not act in good faith by not attempting to obtain a loan and informing their agent about it only when the loan approval deadline was approaching. This behavior goes against the terms of the sales contract with a mortgage contingency clause.

According to contract law, every valid contract is enforceable or unenforceable. This means that a contract can either be legally enforced by the parties involved or it may not be enforceable due to certain legal reasons. The enforceability of a contract depends on various factors such as the presence of all essential elements, legality of the subject matter, and the capacity of the parties involved to enter into a contract. Therefore, a valid contract can fall into either category of being enforceable or unenforceable.

When an attorney makes modifications to a sales contract prepared by a real estate agent, all parties must initial the changes. This is because the modifications made by the attorney are considered legally significant and require the acknowledgment and agreement of all parties involved. Initialing the changes ensures that all parties are aware of and agree to the modifications made to the contract.

Mark will be assessed 3 points on his home loan. Since the loan is for $68,000, each point will be equal to $680 (68,000 * 0.01 = 680). Therefore, Mark will be assessed a total of $2040 (3 * 680 = 2040) in points at closing.

When a qualified borrower is approved for a mortgage loan, the loan is referred to as "A" paper. This term is commonly used in the mortgage industry to describe loans that are considered to be of high quality and low risk. "A" paper loans typically have favorable terms and conditions, including low interest rates and flexible repayment options. Lenders are more likely to approve borrowers with good credit scores and stable income for "A" paper loans.

The market recognizes "the change in value an improvement makes to a property" as contribution. This means that any improvement or modification made to a property that increases its value is considered a contribution in the eyes of the market.

Market value refers to the highest price a buyer is willing to pay and the lowest price the seller will accept for a particular product or service. It is determined by the forces of supply and demand in the market. The market value represents the equilibrium point where buyers and sellers agree on a price, and it is influenced by various factors such as competition, scarcity, and consumer preferences.

The Americans with Disabilities Act (ADA) requires businesses and public facilities to make reasonable accommodations for individuals with disabilities. This includes making physical modifications to ensure accessibility. However, the ADA does not specifically require a duplex owner to remodel the kitchen in a rental unit to accommodate persons with disabilities. While it is possible that a duplex owner may choose to make such modifications voluntarily, it is not a direct requirement under the ADA.

The correct answer is "act within a statutory period". The Statute of Limitations sets a specific time period within which parties to a contract must take legal action if they have been damaged or have concerns about the contract's provisions. This means that they cannot wait indefinitely to take legal action and must act within the specified time limit. Failure to do so may result in their claims being barred by the statute.

An option to buy is a good example of a unilateral contract because it is an agreement where only one party, the option holder, is obligated to perform. The option holder has the right, but not the obligation, to purchase the specified item or property within a certain time frame. The other party, the option grantor, is not obligated to sell the item or property if the option holder chooses not to exercise their option. This unilateral contract provides the option holder with the opportunity to decide whether or not to proceed with the purchase, giving them the unilateral power to make the final decision.

A contract is terminated after it is performed because once both parties have fulfilled their obligations and completed the terms of the contract, there is no longer a need for the contract to remain in effect. Performance of the contract signifies that both parties have fulfilled their promises and the contract has served its purpose. Therefore, it is considered terminated at this point.

A seller's credit report is not one of the documents that will be needed at a closing. The closing process typically involves the transfer of ownership from the seller to the buyer, and the focus is on legal and financial documentation related to the property. A seller's credit report, which provides information about the seller's creditworthiness, is not directly relevant to the closing process.

Amperage is calculated by dividing the power in watts or kilowatts by the voltage. This calculation is based on Ohm's law, which states that current (amperage) is equal to the power (watts) divided by the voltage. Therefore, to determine the amperage, one must know the power and voltage values and perform the appropriate calculation.

Chlorofluorocarbons (CFCs) are banned because they destroy the ozone layer. When released into the atmosphere, CFCs break down and release chlorine atoms. These chlorine atoms then react with ozone molecules, causing them to break apart. This depletion of the ozone layer allows harmful ultraviolet (UV) radiation from the sun to reach the Earth's surface, leading to various negative effects such as increased risk of skin cancer, damage to marine life, and disruption of ecosystems. Banning CFCs helps protect the ozone layer and mitigate these harmful consequences.

The sale of a single-family home by an owner who owns five residences is not an exemption to a fair housing law. Fair housing laws typically prohibit discrimination in the sale, rental, and financing of housing based on factors such as race, color, religion, sex, national origin, familial status, and disability. While there are exemptions to these laws, such as senior housing for residents 55+ and rental of a room in a person's own home, owning multiple residences does not exempt an owner from complying with fair housing laws when selling a single-family home.

The Division of Human Rights is the correct answer because it is the NY state agency that handles discrimination complaints. The Office of the Attorney General is responsible for legal matters and representing the state in legal cases. The Department of State deals with matters such as licensing, regulation, and business services. The Department of Health, Education, and Welfare is a federal agency responsible for health, education, and welfare policies at the national level.

The given scenario describes a situation where the seller disagrees with the condition stated in the offer and crosses out that clause before signing and returning the document to the buyer. At this point, the offer is still considered an offer because the seller has not accepted the terms as stated by the buyer. Until both parties agree and accept the terms, it does not become a valid contract. Therefore, the correct answer is that it is an offer.

The correct answer states that a borrower can request the cancellation of PMI payments when the equity reaches 20% of the purchase price. This means that once the borrower has paid off 20% of the loan, they can ask the lender to stop charging them for private mortgage insurance (PMI). PMI is typically required when a borrower makes a down payment of less than 20% on a conventional loan, so once the borrower has built up enough equity, they can eliminate this additional cost.

A bridge loan is a short-term loan that covers the gap between the end of one mortgage and the beginning of another. It is typically used when a homeowner is selling their current home and buying a new one, but needs funds to finance the new purchase before the sale of the old home is complete. The bridge loan allows the homeowner to access the necessary funds to make the new purchase, with the expectation that it will be repaid once the old home is sold.

Holding warehouse agencies are not primary mortgage market lenders. Primary mortgage market lenders include investment groups, credit unions, and mortgage brokers. Holding warehouse agencies typically provide short-term financing to mortgage lenders to fund the origination of mortgages, but they do not directly lend to borrowers like the other options mentioned.

Ginnie Mae is not a former government agency that became a private corporation in the 1970s. It is a government agency that was established in 1968 as a subsidiary of the Department of Housing and Urban Development (HUD). Ginnie Mae's main role is to guarantee mortgage-backed securities, ensuring that investors receive timely payment of principal and interest on their investments. This helps to facilitate the flow of capital into the housing market and increase the availability of affordable housing options for Americans.

Regulation Z applies to consumer credit transactions, including loans for personal, family, or household purposes. It requires lenders to provide certain disclosures and protections to borrowers. In this case, the $75,000 condo loan falls under Regulation Z because it is a loan for personal or household purposes. The other loans mentioned, such as the farm loan, restaurant loan, and warehouse loan, may not fall under Regulation Z as they are not specifically for personal or household purposes.

Zoning is the principal mechanism for implementing a master plan. Zoning involves dividing land into different zones or areas with specific regulations and restrictions on how the land can be used. It allows local governments to control and regulate the development and use of land in accordance with the goals and objectives of the master plan. Zoning helps ensure that land is used in a way that is consistent with the overall vision and objectives of the community.

A valid local zoning ordinance must reasonably promote community health, safety, and welfare. This means that the ordinance should have provisions that aim to protect the well-being and interests of the community as a whole. It should address issues such as land use, building codes, and other regulations that contribute to the overall health, safety, and welfare of the residents. By ensuring that the ordinance serves these purposes, it can be considered valid and effective in managing and regulating development within the community.

Cast iron pipes are typically found in drainage systems because they are durable, strong, and resistant to corrosion. They have been used for centuries in plumbing systems due to their ability to withstand heavy loads and high-pressure conditions. Cast iron pipes also have good sound insulation properties, making them ideal for reducing noise in drainage systems. Additionally, their smooth interior surface helps prevent clogs and allows for efficient flow of wastewater.

When a one or two-family property is sold in NY, it is required to have a smoke alarm and carbon monoxide detector. This is to ensure the safety of the occupants and to comply with regulations regarding fire safety and the prevention of carbon monoxide poisoning. These devices are essential in detecting and alerting occupants to the presence of smoke and carbon monoxide, allowing them to evacuate the property and seek help if necessary.