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Real Estate > Exam 202 > Flashcards

Exam 202 Flashcards

1
Q 
J. has a 2-acre tract of land that she is subdividing into lots. She plans t make each lot 60 feet by 190 feet in depth. If you provide a street 28 feet wide by 210 feet in depth, how many full lots will J be able to market?
A. 7 Lots
B. 6 Lots 
C. 9 Lots 
D. 10 Lots
A

C. 9 Lots

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2
Q 
A and B purchase an apartment building for $220,000. A contributed $132,000, B invests $88,000. At the end of the year, the net profit is $12,000. How much will each partner receive based on their individual investment?
A. A$4,800    B $7,200
B. A$8,000    B $6,000
C. A$9,000    B$6,400
D. A$7,200     B$4,800
A

D. A$7,200 B$4,800

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3
Q

Which of the following statements about discount points is FALSE?
A. They are computed as a percentage of the selling price
B. They are used to but down interest rate
C. They are a function of the marketplace
D. They are paid by either the buyer or seller

A

A. They are computed as a percentage of the selling price

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4
Q

A real easte broker acting under Real Estate management agreement would normally be:
A. A special agent possessing express authority
B. A general agent possessing express authority
C. A special agent possessing implied authority
D. A general agent possessing implied authority

A

B. A general agent possessing express authority

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5
Q 
The party making an ofter is called the:
A. Offeree
B. Offeror
C. Buyer
D. Seller
A

B. Offeror

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6
Q 
A judgment has been recorded. Any future purchasers, whether they have actually examined the record or not, have been given
A. Actual notice
B. Prescriptive notice
C. Constructive notice
D. Prior notice
A

C. Constructive notice

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7
Q

An agency agreement between the seller and a broker to sell a specific piece of real property will br terminated by all the following EXCEPT:
A. Death of the broker
B. Bankruptcy of the principal
C. Revocation of the listing salesperson’s license
D. Insanity of the broker

A

C. Revocation of the listing salesperson’s license

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8
Q 
Which listing gives the broker the maximum protection?
A. A net listing 
B. An exclusive agency listing 
C. Exlusive right to sell listing
D. An open listing
A

C. Exlusive right to sell listing

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9
Q 
FHA functions MOST like:
A. A bank or savings and loan association
B. A mortgage company
C. An investment guild 
D. An insurance company
A

D. An insurance company

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10
Q 
A property is sold while a tenant holds a lease. How is a lease affected by the sale?
A. The lease terminates 
B. The lease is not affected
C. The tenant may terminate the lease
D. The landlord may terminate the lease
A

B. The lease is not affected

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11
Q

There is a three-day right of rescission under the truth in lending laws for all but which one of the following?
A. A first mortgage loan to buy a new house
B. A home improvement loan
C. A 2nd mortgage to finance a line of credit
D. Or reverse annuity mortgage

A

C. A 2nd mortgage to finance a line of credit

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12
Q

The statute of frauds was created to:
A. Ensure that fraud would never take place
B. Prevent fraud through perjury by requiring certain contracts to be in writing
C. Require a broker to use standard approved forms
D. Prevent fraud by requiring that all real estate transactions be conducted by a broker

A

B. Prevent fraud through perjury by requiring certain contracts to be in writing

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13
Q

If conditions for purchase are in a deed and these conditions are violated, what is the penalty?
A. A court order enforcing compliance
B. Penalty damages
C. An injunction against further use
D. Return of the property to the original owner

A

D. Return of the property to the original owner

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14
Q 
One disadvantage of real estate as an investment is it:
A. Durability 
B. Relative scarcity
C. Lliquidity
D.Utility
A

C. Lliquidity

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15
Q 
A real estate sale where there are installment payments to the seller and which a deed is held by the seller would be a (an):
A. Earnest money deposit contract 
B. Contract for deed
C. Option contract
D. Warrantee trust deeds
A

C. Option contract

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16
Q 
The real estate contract for a specific property for use as unlicensed whiskey sale operation was forced to terminate. The shut down:
A. Operation of law
B. Impossibility of performance
C. Novation
D. Breach agreement
A

B. Impossibility of performance csq

17
Q 
Tax deductions on a personal residence include all the following EXCEPT:
A. Loan points 
B. Prepayment penalties
C. Depreciation
D. Mortgage interest
A

A. Loan points

18
Q 
One rectangular piece of ground has a frontage of 450 feet and a depth of 629.20 feet. At $10,000 per acre, what is the selling price?
A. $60,000
B. $75,000
C. $45,000
D. $65,000
A

B. $75,000

19
Q 
The buyer says in front of the witness, "I will pay you $150,000 for your property at 23 Smith Street." The seller says,"Okay", and they shake hands. The agreement is NOT an enforceable contract since it does NOT involve:
A. Consideration
B. Writing
C. Value
D. Earnest money
A

B. Writing

20
Q 
When a land developer subdivides a tract of land, the evidence thereof is recorded in the public records where the property is located. This is called:
A. A monument 
B. A plat
C. A grid system
D. A range
A

C. A grid system

21
Q

An easement can be created by any of the following EXCEPT:
A. Definition within a deed
B. Merger of the titles
C. A written agreement between those involved
D. The parties behaving as though there was an agreement

A

B. Merger of the titles

22
Q 
The income remaining after deducting losses for vacant apartments and collection charges as well as all expenses is:
A. Net operation income
B. Mortgage principal payments 
C. Cost of improvements 
D. Depreciation
A

B. Mortgage principal payments

23
Q 
The income remaing after deduction losses for vacant apartments and collection. Charges are:
A. Effective net income
B. Effective gross income
C. Vacancy adjusted income 
D. Gross income
A

C. Vacancy adjusted income

24
Q

An important factor in successful real property management is:
A. A new building
B. Good public services
C. Careful selection of tenants
D. A maintenance contract with a low cost service provider

A

B. Good public services

25
Q 
An investor wants to purchase a 24-unit apartment house where rents are $360 per month. What is the most that he can pay for the property if he wants his money to earn 12%?
A. $103,680
B. $864,000
C. $72,000
D. $36,000
A

A. $103,680

26
Q 
An owner has a property showing a monthly net income of $3,000. You felt that a 10% rate of return for this type of investment is appropriate. You would expect the property to be valued at:
A. $270,000
B. $300,000
C. $330,000
D. $360,000
A

D. $360,000

Real Estate (3 decks)

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