Exam 2 practice questions

Question 1

The agency responsible for the enforcement of the Fair Housing Act is the

Answer 1

Department of Housing and Urban Development.

Question 2

The holder of a reversionary interest in a qualified fee estate might be able to obtain title to the property

a) if the holder of the qualified fee estate breaks the deed condition.
b) only if the remainderman died first.
c) if the holder of the qualified fee estate sells the property.
d) if the conditions changed and the owner was unable to meet the requirements.

Answer 2

if the holder of the qualified fee estate breaks the deed condition.

Question 3

A “customer” is:

Answer 3

A party to a real estate transaction with whom the broker has no brokerage relationship

Question 4

The primary survey line running east and west in the rectangular survey system is the

Answer 4

base line

Question 5

A seller has received an offer. The seller crossed out a number of items, wrote in the changes the seller wanted, initialed them, and returned the document to the buyer. The original offer the offeror gave the seller is considered to be

Answer 5

terminated and countered.

Question 6

The landlord’s lease prohibits tenants from altering the property in any way. A young woman who uses a wheelchair cannot maneuver over the doorstep into the apartment by herself. In addition, she cannot access the bathroom facilities in her wheelchair. Which of the following is TRUE?

Answer 6

The tenant is entitled to make the necessary alterations.

Question 7

A property owner wants to give his property to his sister. The BEST way to transfer title to her would be

Answer 7

to execute and deliver a deed to the sister.

Question 8

A custom home containing 4,320 square feet was recently constructed on a $145,000 lot. Construction costs were $80.25 per square foot, and other fees and costs totaled $12,785. What was the total cost of the property?

Answer 8

$504,465

Question 9

A developer is planning a building that will contain 103,000 square feet. Construction costs are estimated to be $62.00 per square foot. Ninety-five percent financing is available for the structure. How much money must the developer put up to complete the project?

Answer 9

$319,300

Question 10

Advocacy is not a part of working as a:

Answer 10

Transaction–Broker

Question 11

According to the covenant of quiet enjoyment

Answer 11

the grantor promises to obtain and deliver any instrument needed to make the title good

Question 12

Breach of contract is refusal or failure to comply with the terms of a contract. If the seller breaches the purchase contract, the buyer may do all of the following EXCEPT

Answer 12

sue the broker for nonperformance.

Question 13

When an owner of real estate sells the property to someone else, which of the “stick” in the bundle of legal rights is he or she using?

Answer 13

Disposition

Question 14

Margie listed her real estate for sale at $100,000. If her cost was 80 percent of the listing price, what will her percentage of profit be when her real estate is sold for the listing price?

Answer 14

25 percent

Question 15

A couple declined to purchase an owner’s title policy at closing, but the lender required them to purchase a mortgagee’s title policy. Six months after the closing, a man knocked on their door. He explained that he had an ownership interest in the property because his spouse sold the property while he was in another country. The man at the closing table, who said he was the spouse, was not. If the man’s claim is true, are the buyers covered under the lender’s policy?

Answer 15

No, because the buyers are not covered by the mortgagee’s policy.

Question 16

A property owner executes a deed to a purchaser, has it acknowledged, and receives payment from the purchaser. However, the owner holds the deed and arranges to meet the purchaser the next morning at the courthouse to present the deed to the purchaser. At this point

Answer 16

legal title to the property will not pass to the purchaser until the owner gives the deed to him the next morning.

Question 17

The mortgagee received a title insurance policy on the property a buyer is pledging as security for the mortgage loan. Which of the following is true?

Answer 17

The amount of coverage is commensurate with the loan amount.

Question 18

The recordation of a warranty deed

Answer 18

gives constructive notice of an individual’s interest

Question 19

A person with a physical disability has found an apartment that must be remodeled to accommodate her needs. All of the following are allowed by the landlord in this case EXCEPT

Answer 19

the disabled tenant be required to pay a larger security deposit to cover the costs of returning the unit to its original condition.

Question 20

A listing contract in which payment of the commission is contingent on the licensee’s being able to produce a buyer before the property is sold by the owner or another licensee is called a(n)

Answer 20

open listing.

Question 21

A couple bought a store building and took title as joint tenants. One woman died testate. The other woman now owns the store

Answer 21

in severalty.

Question 22

Which of the following is NOT a test to identify a fixture?

Answer 22

Size of the item