Exam 201 General Flashcards
3. A real estate salesperson, selling the listings of another broker firm, is directly responsible to account to: A. His or her broker B. The owner C. The listing broker D.The multiple listing service
A. His or her broker
- A broker, informed by the seller that there is a problem with a leaking roof and termites, must do which of the following:
A. Inform a prospective buyer of these conditions
B. Require that the roof be prepared that an exterminator be hired before showing at
C. Urged the buyer to obtain an inspection but say nothing about the problem
D. Urge the buyer to require the seller to repair the problem before closing
A. Inform a prospective buyer of these conditions
5. Mutual assent to a real estate contract is ordinarily indicated by: A. Attestation B. Offer and acceptance C. Acknowledgment D. A seal
B. Offer and acceptance
- It’s a seller was to make a counteroffer after receiving an offer from the buyer:
A. Both buyer and seller should sign the original offer
B. The seller should not sign the original offer
C. The only buyer should sign the counteroffer
D. Only the seller should sign the counter offer
B. The seller should not sign the original offer
1. If our property sold for 525,000 and an owner made 50% profit what he pay for it? A. $262,500 B. $350,000 C. $393,750 D $787,500
B. $350,000
Rational: 525,000 divided 150% or 1.5 = 350,000
- In order to collect the commission under an exclusive right to sell, it is not necessary for the broker to prove that:
A. The listing had been signed by the owner
B. The listing was not in effect at the time of the sale
C. They were the procuring cause
D. Broker was licensed at the time of the commission was earned
C. They were the procuring cause
8. Which of the following would not be a basis for the termination of the listing? A. The expiration of time being. B. Insanity of the agent C. Destruction of the property by fire D. Death of the listing salesperson
D. Death of the listing salesperson
9. If seller B as induced buyer C, who is employed by him, to purchase property under the threat of dismissal, seller B has used: A. Undue influence B. Fraud C. A right Of rescission D. The statute of limitations
A. Undue influence
- Unless agreed to the contrary, a commission is earned by a broker when the:
A. Escrow is opened
B. Funds are disbursed at settlement
C. Broker finds a buyer ready, willing and able to buy the sellers terms
D.seller paid the purchase price
C. Broker finds a buyer ready, willing and able to buy the sellers terms
11. An assessment of taxes on real property according to the value of the property is known as which of the following: A. appraisal B. Ad valorem C. Replacement cost D. Accretion
B. Ad valorem
- A mortgagor is released from the personal liability under mortgage:
A. When a new purchaser takes subject to the mortgage
B. When a new purchaser assumes the mortgage
C. When a new purchaser assumes the mortgage and there is a novation
D. When the mortgage is assigned to by the lender
C. When a new purchaser assumes the mortgage and there is a novation
13. If the amount realized at a sheriffs sale of property forclosed because of a delinquent mortgage is more than the indebtedness, the excess belongs to: A. The sheriffs office B. the mortgagee C. the mortgagor D the purchaser
C. the mortgagor
14. In the records of the courthouse, a second trust deed can usually be distinguished from the first trust deed by: A. The words first or second B. The date on the note C. The heading of the instruments D. The time and date of the recording
D. The time and date of the recording
15. The individual that obtains a real estate loan by signing a note and mortgage is a: A. Mortgagor B. Grantor C. Optionor D. Trustor
A. Mortgagor
16. Voluntary acceptance of a lower priority mortgage position is called: A. Nonconforming B. Subordination C. Estoppel D. Alienation
B. Subordination
17. And of July 17 closing, with all adjustments paid through the day of closing, and the statutory year where the current county assessment is $2250 the buyers portion would be paid in arrears. Presented as a: A. Credit buyer $1231.25 B. Credit buyer $1225 C. Debit buyer $1231.25 D. Debit buyer $1225.
A.Credit buyer $1231.25
18. I qualified fee simple estate may be: A. in perpetuity B. Reclaimed in grantors name C. Transfer and buy a bill of sale D. Interpreted as a gross easement
B. Reclaimed in grantors name
19. A man has an opportunity to buy a lot for $1000, and has a guarantee of resale value one year later of $1200. he also has an opportunity to lend a $1000 to an individual with repayment within a year of 10% interest. Which is the better investment, and by what amount? A. $50.00. Better for lot B. $100.00 better for loan C. $50.00 better for the loan D. $100 better for the lot
D. $100 better for the lot
- A purchases a dwelling for $250,000. He makes a $50,000 deposit and agrees to pay 6% interest on the unpaid debt, plus $100 per month principle. He sells the house two months later at $280,000 to B, who assumes the mortgage. How much interest has A paid? B will receive credit on the purchase price for what amount?
A. A paid $1599.90; b Receives $188,000
B. A paid $1999.50; b receives $199,800
C. A paid $1189; be receives $199,900
D. A paid $1998.50; B received $199,900.50
B. A paid $1999.50; b receives $199,800
- An exclusive right to sell agency may not be terminated prior to the expiration date when the:
A. Agency is coupled with an interest
b. Owner unilaterally declares the agency ended
C. Principal dies
D. Age it becomes incapacitated
A. Agency is coupled with an interest
21. A life estate may not be: A. Passed by a will B. Mortgaged C. Sold D. Leased
A. Passed by the a will
22. A farmer in Colorado on some property which is legally described as: The S1/2 of NE1/4 of SW1/4 of section 16. How many acres are included in this parcel? A. 20 B. 40 C. 80 D. 60
A. 20
- What form of interest is conveyed by a sales made with the provision that title shall revert to the grantor should an objectionable use take place?
A. A defeasible a state
B. And the state on a condition precedent
C. A fee simple absolute
D. A life estate
A. A defeasible a state
- P and S form of valid joint tenancy. A year later, P sells his share to T. As a result:
A. P’s 50% interest increases to 66 and two thirds%.
B. S is 50% interest shrinks to 33 1/3%
C. T becomes a 50% owner and joint tenancy
D. This creates tenancy in common, between S and T
D. This creates tenancy in common, between S and T
- A buys a house with an $80,000 first loan and a $5000 second loan which were recorded by the lenders. A $10,000 judgment lien is later recorded by someone the buyer owed money to prior to buying the home. Which lien has priority?
A. The $80,000 first
B. The $5000 second
C. The $10,000 judgment lien
D. The $10,000 judgment shares priority with the first
A. The $80,000 first
26. What type of lease is best for a commercial tenant during an inflationary.? A. A gross lease B. A percentage lease C. And index lease D. A net lease
A. A gross lease
27. Which lien has first priority? A. Mechanics lien B. Mortgage lien C. Property tax lien D. Federal income tax lien
C. Property tax lien
- All of the following are necessary for a valid date except:
A. The grantee signature
B. The granting clause
C. Name of the grantor and grantee
D. Delivery and acceptance within the grantors last time
A. The grantee signature
29. Which do you imposes the least liability on the grantor? A. General warranty deed B. Special warranty deed C. Quit claim deed D. Bargain and sale deed
C. Quit claim deed
- When does the law descent come in the play ?
A. When a person dies testate
B. When a person dies without having heirs
C. When a person dies intestate with heirs
D. When a person makes a living trust
C. When a person dies intestate with heirs
31. Gross income less vacancy and collection losses plus ancillary income is: A. Effective gross income B. Net operating income C. Gross income D. Effective net income
A. Effective gross income
32. RESPA requires disclosure of A. Legal fees B. Broker commissions C. Loan payoffs D. Prepayment penalties on loans to be paid off
D. Prepayment penalties on loans to be paid off
33. A tenants five year lease is terminated. He returns three months later to reap a crop planted before termination. The right arose from: A. Prescription B. Adverse possession C. Tenancy for years D. Emblements of personal property
D. Emblements of personal property
- What is the value of the property where the gross rent multiplier it is 170 on the annual rent is $12,000:
a. $175,000
B. $170,000
C. $174,000
D. $175,500
B. $170,000
Rationale: 12,000÷12 equals 1000×170 = 170,000
- Under the equal credit opportunity act, a lender has the right to do all of the following except:
A. Check the borrower employment history
B. Charge for a credit report
C. Investigate the borrows payment history
D. Refusal a loan to persons over 55
D. Refusal a loan to persons over 55
36. Mortgage insurance is most often required where: A. The loan to value ratio is high B. Long terms of repayment are given C. The borrowers are elderly persons D. The borrower is a veteran
A. The loan to value ratio is high
37. Old cars parked on adjacent lots to the subject property will have a detrimental influence on the value of the subject property because of the principle of: A. External obsolescence B. Functional obsolescence C. Physical deterioration D. Anticipation
A. External obsolescence
38. In calculating tax relating to taxpayers primarily dwelling, he/she may deduct: A. Property taxes paid B. Mortgage principal repayments C. Improvements D. Depreciation
A. Property taxes paid
- Hey sellers broker is sitting in the sellers office, having just presented an offer for the sellers house from buyer B. Before the seller signs the offer, the buyer found the broker on his mobile phone and informed him that he is withdrawing the offer. The buyer:
A. Cannot withdraw the offer as it has already been presented to the seller
B. Can only withdraw the offer in writing
C. Is entitled to withdraw the offer
D. Is in breach of the statute of fraud
C. Is entitled to withdraw the offer
40. An appraiser doing an appraisal on a commercial property would be most concerned with: A. Before tax cash flow B. Net operating income C. Gross income D. Effective gross income
B. Net operating income