Deck 9

Question 1

Land, appurtenances, and things affixed to the land are:

Answer 1

The three broad categories of real property

Question 2

Conventional loans differ from FHA loans in that:

Answer 2

Conventional loans always allow a deficiency judgement

Question 3

If you were asked to list a property that was owned by an unincorporated church group, you would need to:

Answer 3

check the by-laws and charter

Question 4

In appraising an unimproved lot, one would logically first determine:

Answer 4

highest and best use.

Question 5

Which of these is associated with a deed?

Answer 5

Defeasible Fee

A defeasible/indefeasible fee is associated with a deed. The other listed choices are associated with a mortgage.

Question 6

Airways above a property are:

Answer 6

Public domain

Airways above property are now considered to be public domain. Use is granted to an owner to a “reasonable height”.

Question 7

If a contract is written and parts are incomplete or ambiguous, what type of agreement takes preference:

Answer 7

An oral agreement

Question 8

Which of the following would not be contiguous?

Answer 8

Floor joists and ceiling joists

Question 9

If you fix up a building which you own, without changing the interior or exterior design, this would be an example of:

Answer 9

rehabilitation

Rehabilitation is the restoration of a property to its former or improved condition without changing the basic design or plan.

Question 10

This is issued to the holder of a certificate of sale after the one year redemption period has passed under the terms of the mortgage foreclosure proceeding

Answer 10

A sheriff’s deed

Question 11

As a part of his submittal of documents to the Real Estate Commissioner under the Subdivision Lands Law, the subdivider must complete a form by which he agrees that, in the event he cannot be located via reasonable and diligent efforts, service can be legally effected by filing with the:

Answer 11

Secretary of State

Question 12

Privity of contract is a legal doctrine that states that:

Answer 12

A legally enforceable relationship exists between the persons who are parties to a contract

Question 13

The maximum length of time for which a valid lease may be written is:

Answer 13

99 years on urban property and non-agriculture
51 years on agriculture

Question 14

A lien cannot be:

Answer 14

a performance

The word “performance” means “an act”. A lien is not an act, it is an instrument used to collect money. A lien may be general, specific, or involuntary.

Question 15

What term is used to describe the degree, quantity, or nature of a person’s interest in real property?

Answer 15

Interest in land

Question 16

When real property is conveyed by a codicil to a will, how is it conveyed?

Answer 16

By testamentary disposition

Question 17

What document is prepared to provide evidence that personal property is pledged as security for a loan?

Answer 17

Mortgage

Question 18

In which of the following would you typically find unities of title, time, unit and possession?

Answer 18

Joint tenancy

Question 19

Which statement indicates that any verbal discussions made prior to a written contract are invalidated and cannot be considered?

Answer 19

Parol Evidence Rule

Question 20

“Prima facia” means

Answer 20

primary evidence

Question 21

If a loan officer is looking into the current assets and current liabilities of a borrower, the loan officer is generally looking at the borrower’s:

Answer 21

Liquidity

Question 22

Remainderman

Answer 22

the person who inherits property after the termination of a life estate

Question 23

Adverse Possession

Answer 23

It occurs when someone takes possession of another person’s property without their permission and meets certain legal requirements. (5 years)

Question 24

Amendments

Answer 24

Add’s on or fixes to contracts

Question 25

A man and wife have a homestead exemption on their home. If the house were destroyed by fire, the exemption would be:

Answer 25

not abandoned.

Only sale abandons the homestead exemption on the property.

Question 26

When there is more than one borrower on a note, the obligation to pay the balance is the responsibility:

Answer 26

Jointly and Severally

Question 27

Fees that are paid by the individual owners of condos or planned unit developments that are used to maintain the property and common areas are known as:

Answer 27

Common area assessments

Question 28

The capitalization approach includes the “return of” and “return on” the investment. What does “return of” mean?

Answer 28

Depreciation method

“Return of” capital is to recapture the money invested. This is accomplished through depreciation.

Question 29

A limit on the amount that payments can increase or decrease during any one adjustment period is called:

Answer 29

A period rate cap

Question 30

The Housing and Community Development Act of 1974 prohibits discrimination based on:

Answer 30

gender

Question 31

Vertical supporting members in a wall rest upon:

Answer 31

the sole plate.

Question 32

The civil penalty for a first violation of the Federal Fair Housing Laws can be as much as this amount if the Justice Department get involved:

Answer 32

$50,000

The court may assess civil penalties against the violator up to $50,000 for a first violation and up to $100,000 for any subsequent violation. While amounts like these are rare, it can happen if the Justice Department gets involved.

Question 33

The maximum deposit allowed on an unfurnished property is not more than the amount of:

Answer 33

2 months

Question 34

The process of paying off one loan with the proceeds from a new loan using the same property as security is called a:

Answer 34

Refinance transaction

Question 35

According to the Subdivided Lands Law, what must the developer (seller) give a buyer before selling a lot in the subdivision?

Answer 35

Final public report

Before a subdivider can sell each lot in the project (subdivision), he or she must give a copy of the Commissioner’s final (public) report to the prospective buyer for approval.

Question 36

Which of the following statements of fact best matches the term “judgments?”

Answer 36

Contract of money

Question 37

A lender may ask if an applicant is married, but cannot ask if an applicant is divorced or widowed under which act?

Answer 37

The Equal Credit Opportunity Act

Question 38

A holder in due course would be successful against a defense of:

Answer 38

lack of consideration to the maker.

Lack of consideration to the maker is considered a “personal defense” which is not good against a holder in due course.

Question 39

How many points is a buyer/borrower limited to paying on FHA Loans?

Answer 39

negotiable

Question 40

The buyer of a cooperative apartment receives shares in the cooperative and a:

Answer 40

proprietary lease.

Question 41

IRS Form 8300 must be filed at what point in a real estate transaction?

Answer 41

when a buyer brings more than $10,000 in cash to the closing or as earnest money

Question 42

Which of these terms refers to the owner of real property selling the property to someone else and is a legal right?

Answer 42

Disposition

Disposition (which can also be called alienation), refers to the disposal of something. In real estate it is a right of alienation to do this with real property.

Question 43

If Ivan owns property but has no heirs or will when he dies at age 86, who owns the property thereafter?

Answer 43

the state government

Question 44

What is the maximum loan available on a VA loan?

Answer 44

Amount on CRV

Means Certificate of Reasonable Value. This is the appraised value.

Question 45

A homeowners association decides that the subdivision’s community center should be sold for economic reasons. Before attempting to find an investor, the association decides it needs guidance on an appropriate asking price and hires an appraiser. Which approach is the appraiser likely to find most appropriate to appraise this property?

Answer 45

the cost approach

Unique properties are most accurately appraised by employing the cost approach to value.

Question 46

One of the most common contingencies in the home buying process is:

Answer 46

A satisfactory home inspection