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Iowa Realtors License Exam > Exam > Flashcards

Exam Flashcards

1
Q 
What document, gibven by a borrower to the person assuming his loan, certifies the amount owed on a mortgage loan and the rate of interest
A. Estoppel certficate
B. Subordination agreement
C. Equitable title
D. Time is of the essence
A

A. Estoppel certificate

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2
Q

What does private mortgage insurance cover?
A) whole loan is insured against no payment
B. Whole loan is paid off if the mortgagor dies
C. Protects the borrower from deficiency
D. top 20-25% of the loan is insured to protect lender from a deficiency

A

D. Top 20-25% of the laon is insured to protect lender from a deficiency

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3
Q 
The term leverage refers to
A. High pressure sales
B. Using other peoples money
C. Time sharing units
D. Conventional Financing
A

B. Using other peoples money

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4
Q 
An elderly couple owns their house free and clear, but now they need money to live on. of the following, what type of mortgage loan would make the most sense?
A. home equity loan
B. Shared equity loan
C. Reverse Annuity Mortgage
D. Graduated payment mortgage
A

C. Reverse annuity mortgage

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5
Q 
The Liquidation of debt by equal periodic installment payments is BEST described as
A. Amortization
B. An annuity
C. Acceleration
D. Assemblage
A

A. Amortization

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6
Q

The LTV use by lenders is based on a percentage of
A. The appraisal
B. The Sale price
C. Difference between appraisal and sale price
D. sale price or appraisal, whichever is less

A

D. Sale price or appraisal, whichever is less

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7
Q 
A lender agrees to accept a lower mortgage position. This is called
A. Subordination
B. Alienation
C. Estoppel
D. Release
A

A. Subordination

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8
Q 
When you use real property as security for a loan, you do which of the following?
A. Pledge it
B. Hypothecate it
C. Assign it
D. Devise it
A

B. Hypothecate it

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9
Q

Which of the following BEST describes partial amortizations?
A. Low down payment, high monthly payment
B. large down payment, small monthly payments
C. Small monthly payments, large balloon payment
D. Large monthly payments, small balloon payment

A

C. Small monthly payment, large balloon payment

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10
Q 
The difference between the value of the property and the amount of the outstanding mortgage balance is BEST described as
A. mortgagees statutory equity
B. Value Owning
C. Mortagors equity
D. Debt services
A

C. Mortgagors Equity

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11
Q

A mortgage loan has a pre payment penalty. Under what circumstances, if any, would a lender consider waiving the clause
A. never
B. during deflation when the value of the dollar is dropping
C. If current interest rates are higher than the original rates and the lender can make a new loan
D. If current interest rates are lower than the original rates

A

C. If current rates are higher than the original rates and the lender can make a new loan

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12
Q 
After Foreclusre, the lender finds that he cannot sell the house for as much money as the remaining balance on the loan. He may seek to recover the difference by obtaining
A. Second mortgage
B. Subordination clause
C. Release
D. Deficiency judgement
A

D. Deficiency Judgment

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13
Q

An “acceleration clause” found in a promissory note or mortgage means that
A. payments made more frequently at a future specified date
B. The interest rate may increase
C. payments may not be made more frequently then specified
D. If payments are not made properly, the entire amount of the unpaid balance becomes due.

A

D. If payments are not made properly, the entire amount of the unpaid balance becomes due

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14
Q 
A business owner sells his building to free up capital. He then continues to operate out of the same building. This is an example of
A. A sale leaseback
B. Creative financing
C. A loan assumption
D. A wraparound mortgage
A

A. A sale Leaseback

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15
Q 
Which laws prohibit lenders from charging an exorbitant rate of interest.
A. Truth in lending
B. Usury
C. Credit Reporting
D. Consumer protection
A

B. Usury

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16
Q

Which of the Following is one of the advantages of using private mortgage insurance
A. loan paid off in the event of the death of a borrower
B. Loan requires a lower down payment
C. Borrower is protected from default of the lender
D. Title is protected from undisclosed previous claimant

A

B. Loan requires a lower down payment

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17
Q

What is the function of discount points?
A. Commission is earned by the mortgage broker
B. Increase the yield to the lender
C. Raises the amount of interest paid by the borrower over the life of the loan
D. May not be considered interest

A

B. Increase the yield to the lender

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18
Q 
The borrower of a FHA loan will also be responsible for paying a(n)
A. mortgage insurance premium
B. Funding Fee
C. Private Mortgage Insurace
D. Flood insurance
A

A. Mortgage Insurance premium

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19
Q 
The Function of Fannie Mae is to 
A. Insure FHA loans
B. Absorb Losses
C. Guarantee VA Loans
D. Buy mortgage loans in a secondary market
A

D. Buy mortgage loans in a secondary market

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20
Q

Ginni Mae’s primary function is to
A. Regulate lending terms and policies of member banks
B. Absorb any losses incurred by Fannie Mae
C. Act as a secondary market by purchasing FHA, VA and conventional loans
D. Guarantee VA Loans

A

B. Absorb any losses incurred by Fannie Mae

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21
Q 
A package mortgage is secured by
A. Several parcels of land
B. only real property
C. furniture, appliances, and the dwelling
D. The "extras" added to the house
A

C. Furniture, appliances and the dwelling

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22
Q 
What type of mortage permits a builder to obtain the release of lots, one at a time, as they are sold
A. blanket mortgage
B. package mortgage.
C. Open-end mortgage
D. Share equity mortgage
A

A. Blanket mortgage

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23
Q 
What is one of the possible disadvantages of a low payment cap
A. positive amortization
B. Higher payments up front
C. Negative amortization
D. Increasing lower monthly payments
A

C. Negative Amortization

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24
Q 
The document given as security for the debt on the a parcel of real estate is 
A. Note
B. Mortgage
C. Option
D. Chattel Note
A

B. Mortgage

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25
Q 
Discount points are computed on 
A. Selling price of the property
B. Amount of the loan
C. Purchasers ability to borrow
D. Loan to value
A

B. Amount of the loan

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26
Q 
The lender is called the
A. Grantor 
B. Grantee
C. Mortgagor
D. Mortgagee
A

D. Mortgagee

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27
Q 
The written promise to repay money borrowed to purchase is a house
A. Mortgage
B. Promissory Note
C. Deed
D. Lease
A

B. Promissory Note

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28
Q 
Analyzing a borrowers credit position to determine whether the borrower will be satisfactory to the client is the process performed by the mortgage banker and is called
A. Servicing
B. Qualifying
C. Brokering
D. Leveraging
A

B. Qualifying

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29
Q 
A buyer makes payments under a mortgage whereby he makes one payment to the new lender who then makes the required payment to the first mortgagee. This is called a(n)
A. Package mortgage
B. Wraparound mortgage
C. Blanket mortgage
D. Purchase money mortgage
A

B. Wraparound mortgage

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30
Q 
The lender incurs expenses while processing a mortgage loan. These expenses are recovered from the borrower as 
A. Discount Points
B. Mortgage insurance premium
C. Origination fees
D. Private mortgage insurance
A

C. Origination fees

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31
Q 
How much does each discount point raise the yield to the lender?
A. 1/16 of 1%
B. 1/8 of 1%
C. 1/4 of 1%
D. 1/2 of 1%
A

B. 1/8 of 1%

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32
Q 
The loan to value ratio on a finance property is the ratio of
A. Debt to the sale price
B. Debt to the asking price
C. Downpayment to the debt
D. Debt to the owners equity
A

A. Debt to the sale price

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33
Q 
The process used by various lending institutions to determine the perspective borrowers ability to repay the loan
A. Granters
B. Amortization
C. Qualifying
D. Underwriting
A

C. Qualifying

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34
Q 
The value of the property above the amount of the outstanding mortgages would be referred to as
A. Owners equity
B. Junior mortgages
C. Owners value
D. Selling price
A

A. Owners equity

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35
Q 
Amortization is the process of
A. Liquidation of debt
B. Depreciation
C. Winding up a business
D. Equity of redemption
A

A. Liquidation of debt

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36
Q 
The repayment period on an amortized loan has changed from 30 to 15 years. For a $100,000 loan at 8%, the payment will 
A. Decrease
B. Fluctuate from time to time
C. Stay the same
D. Increase
A

D. Increase

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37
Q 
The amount of the loan expressed as a percentage of the total value of the property is called
A. Maximum loan value
B. Minimum loan value
C. Loan to value ratio
D. Value to loan ratio
A

C. Loan to value ratio

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38
Q

The best way for a homeowner to liquidate a mortgage debt is
A. Have the employer withhold monthly payments from the borrowers salary
B. Amortization on a monthly basis
C. Using a land contract
D. repaying the interest and planning on a balloon payment at the end

A

B. Amortization on a monthly basis

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39
Q

In making a loan recovered by Respa, the lender is required to
A. Make a disclosure of all charges no later than 12 days in advance on the closing
B. Provide only a statement of closing costs and fees at the time of closing
C. Advise the borrower that he has the right in all cases to rescind the loan for at least 3 days after the loan is made.
D. Provide the borrower with HUD approved booklet and a good faith estimate of closing costs within 3 business days after the loan application has been received.

A

D. Provide the borrower with HUD approved booklet and a good faith estimate of closing costs within 3 business days after the loan application has been received.

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40
Q

A man dies and the lender holds a mortgage which he gave him. The lender
A. Starts foreclosure to immediately satisfy the debt.
B. Looks to the man’s heirs for payment since it is binding on his heirs
C. Sends flowers
D. Considers the debt null and void

A

B. Looks to the man’s heirs for payment since it is binding on his heirs

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41
Q 
Uhhh 11...the mortgagee may designate in the contract that he must be notified and must approve the new borrower before the mortgage can be assumed, this is found in a(n)
A. Acceleration clause
B. Police power
C. Wraparound mortgage
D. Alienation clause
A

D. Alienation clause

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42
Q 
A provision in a mortgage that requires prior written notice to the mortgagee with the mortgagee's approval in the event of a sale of the mortgaged premises and assumption of the mortgage is 
A. valid
B. violates the statue of frauds 
C. contrary to public policy
D. has legality of object
A

A. valid

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43
Q 
An Estoppel Certificate is required when
A. the mortgage is assumed by a new buyer
B. The property is sold
C. a new mortgage is placed
D. the property is being foreclosed
A

A. the mortgage is assumed by a new buyer

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44
Q

A “satisfaction” is a writing that
A. records payment of a deed of trust and indebtedness
B. acknowledges a paid off mortgage
C. pays a landlord for damages to his property
D. renders satisfaction to a lesser for personal damages

A

B. acknowledges a paid off mortgage

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45
Q 
The money for making FHA loans and VA loans is provided by 
A. The federal Gov't errrntt
B. FHA and VA not B
C. Approved lending institutions
D. Savings and loan associations only
A

C. Approved lending institutions

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46
Q 
The Veterans administration 
A. Insures loans
B. Guarantees loan
C. Lends money directly to the buyer
D. Has no involvement in home loans
A

B. Guarantees loan

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47
Q 
Which of the following agencies is in reality an insurance company intended to make residential loans more marketable?
A. Fannie Mae
B. Ginnie Mae
C. FHA
D. VA
A

C. FHA

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48
Q 
Points on an FHA loan are determined by
A. Fannie Mae
B. Consumer price index
C. Condition of the money market
D. American Banker's Association
A

C. Condition of the money market

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49
Q 
A mortgage taken out after the primary mortgage is best described as a
A. Primary Lean
B. Junior Lean
C. Tax Lean
D. Judgement lean
A

B. Junior Lean

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50
Q

Conventional mortgage loans
A. Are sometimes insured in part by private mortgage companies
B. Are insured by the FHA or guaranteed by the VA
C. LTV must be 80% or less of the sale price
D. Are the most affordable type of loan in today’s market

A

A. Are sometimes insured in part by private mortgage companies

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51
Q

The secondary mortgage market refers to
A. the sources of second mortgage loans
B. investors who provide mortgage funds by purchasing mortgages from originators
C. Investors who originate loans and sell them to other investors
D. Commercial multi-family and farm loans origination as opposed to single family, residential loans in the primary market

A

B. investors who provide mortgage funds by purchasing mortgages from originators

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52
Q

Fannie Mae is the new name for
A. The oldest lady in Iowa with a brokers license
B. Governmental National Mortgage Association
C. Ginnie Mae
D. Federal National Mortgage Association

A

D. Federal National Mortgage Association

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53
Q

Fannie Mae is
A. A governmental agency
B. Organized as a privately owned corporation
C. Is similar in function to the FHA
D. Is not helpful to real estate agents on a day to day basis

A

B. Organized as a privately owned corporation

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54
Q 
A young professional couple makes lower monthly payments for the first few years of the loan and larger payments as the years go on a(n)
A. Personal Loan
B. Renegotiable rate mortgage
C. Graduated payment mortgage
D. USURY Loan
A

C. Graduated payment mortgage

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55
Q

A purchase money mortgage is
A. of no value
B. one where the seller retains the title to the property
C. one which may not be sold to an investor
D. that which is taken back by the seller from the buyer at the time of the sale

A

D. that which is taken back by the seller from the buyer at the time of the sale

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56
Q 
When a mortgager can secure additional amounts up to but not exceeding a predetermined amount it is known as a(n)
A. Escalating mortgage
B. Package mortgage
C. Open end mortgage
D. FHA mortgage
A

C. Open end mortgage.

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57
Q 
A developer of 5 sub-division lots obtains a loan and offers all 5 lots as security. This would be best described as a(n)
A. Package mortgage
B. High interest mortgage
C. Blanket mortgage
D. Accelerated mortgage
A

C. Blanket mortgage

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58
Q 
Under the "land sales contract" the purchaser does not have
A. the deed to the property
B. The right to lease the property
C. the possession of the property
D. to make installment payments
A

A. the deed to the property

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59
Q 
The greatest risk to a mortgage lender is found in
A. Construction loans
B. Permanent loans
C. FHA loans
D. VA loans
A

A. Construction loans

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60
Q 
The person executing the mortgage is called the
A. Mortgagee
B. Mortgagor
C. Grantor
D. Grantee
A

B. Mortgagor

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61
Q

Which of the following best describes Fannie Mae’s function
A. it regulates lending terms and policies of member banks
B. It absorbs any losses incurred by Ginnie Mae
C. it acts as a seconday market by purchasing FHA, VA and conventional loans
D. It unsures FHA loans

A

C. it acts as a secondary market by purchasing FHA VA and Conventional loans

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62
Q 
A mortgage loan that requires monthly payments of 395.79 for 10 years and a final payment of 13495 is a(n)
A. wrap-around mortgage
B. accelerated mortgage
C. Balloon mortgage
D. variable mortgage
A

C. Balloon Mortgage

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63
Q 
A borrower is personally obligated for a debt for a mortgage loan, even if the repossessed property cannot be sold for the outstanding balance, because he signed a 
A Mortgage
B. Note.
C Draft
D. Release
A

B. Note

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64
Q

Lenders attempt to determine the ability of borrowers to pay by
A. Examining their past financial history
B. Determining the amount of cash they have on hang
C. Assessing the amount of their current earnings
D. All of the above

A

D. all of the above

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65
Q

When title to real estate is take “subject to” an existing mortgage, the
A. new buyer is liable for repayment of the loan
B. Seller remains responsible for the repayment of the loan
C. agreement is illegal
D. Seller is relieved of the obligation of repaying the loan

A

B. Seller remains responsible for the repayment of the loan

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66
Q 
The buyer takes possession paying the purchase price in installments. The deed will be delivered after the full price has been paid. This is a(n)
A. Listing agreement
B. Land Contract
C. option to buy
D. Agreement of sale
A

B. Land Contract

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67
Q

Construction loan proceeds are usually dispersed
A. when loan application is approved
B. In drafts during the project
C. only when the entire project is complete
D. In draws after a specific stages of construction have been completed

A

D. In draws after specific stages of construction have been completed.

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68
Q 
Which of the following would least influence a lender when qualifying husband and wife buyers
A. Amount of down payment
B. wifes annual income
C. Husbands overtime pay
D. couples outstanding debt
A

A. Amount of down payment

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69
Q 
A seller take back is described as
A. the purchase price
B. a mortgage given to the seller by the buyer as part of the purchase price
C. a junior lien
D. a first lien
A

B. a mortgage given to the seller by the buyer as part of the purchase price

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70
Q

All of the following statements apply to the promissory note EXCEPT
A. must be in writing
B. the borrower is personally liable for the payment
C. prove evidence of a valid debt
D. Executed by the lender

A

D. executed by the lender

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71
Q 
If the repossessed property does not sell for the amount owned on the loan, the lender has recourse to obtain the balance due by obtaining a(n)
A. Installment contract
B. Take over loan
C. Deficiency judgment
D. Contract for deed
A

C. Deficiency of judgement

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72
Q

VA financing may be extended to include which of the following
A. mobile homes not permanently attached to the land
B. Farm equipment as long as the veteran owns the farm
C. Condominiums
D. Duplex when the veteran does not intend to live there

A

C. Condominiums

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73
Q

When mortgage money is in short supply
A. it is easiest to refinance loans
B. Most homes sell for all cash
C. Homes with existing conventional loans generally sell at a premium, because such loans are usually assumable
D. Seller financing activity usually increases

A

D. Seller financing activity usually increases

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74
Q 
Form the beginning of a foreclosure suit to the date of the foreclosure sale, the mortgagor has a(n) 
A Statutory right of redemption
B. Constitutional right of redemption
C. Mechanics right of redemption
D. Equitable right of redemption
A

D. equitable right of redemption

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75
Q 
A mortgage lender will lend based on a portion of the appraisal or sale price, whichever is less. This is called the
A. LTV ration
B owners equity
C. liquidity
D. leverage
A

A LTV ration

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76
Q 
Which of the following principles of value is most important to the appraiser
A. Progression
B. Highest and best use
C. substitution
D. Contribution
A

B. Highest and Best use

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77
Q 
The swimming pool is in very poor condition. This is an example of
A. Physical deterioration
B. Economic obsolescence
C. Functional obsolescence
D. Regression
A

A. physical detoriation

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78
Q 
The first step in any appraisal is to
A. inspect the property
B. Set the appraisal fee
C. Gather the pertinent data
D. define the problem
A

D. define the problem

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79
Q 
The appraiser will apply all three approaches to the same proeprty, but then must weight the findings. This analysis is called
A. Averaging
B. Substitution
C. Wighted value
D. reconciliation
A

D. reconciliation

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80
Q 
A listing tool that takes into account prices that house sold for as well as the price at which the home did not sell is called a(n)
A. Appraisal
B. sales comparison approach
C. competitive market analysis
D. Uniform residential appraisal report
A

C competitive market analysis

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81
Q 
Three comparable house in the same neighborhood are on the market at the same time. the demand is constant. which will sell first
A. lowest price homes
B. homes priced in the midlle
C. highest priced homes
D. one needing the most repairs
A

A lowest priced homes

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82
Q 
A value arrived at by the current cost of building a structure of similar utility is
A. reproduction value
B. Plottage value
C. replacement value
D. insurance value
A

C Replacement value

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83
Q 
The increased value of a larger parcel made up of several smaller parcels is called
A. plottage
B. Salvage
C. Assemblage
D. Supply and demand
A

A. Plottage

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84
Q 
An appraisal of real estate does which of the following
A. Determines value
B. Estimates
C. Guarantees
D. Averages values
A

B. estimates value

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85
Q

An Appraiser measuring the area of a house would use the
A. Net rentable area
B. Exterior dimensions
C. Room sizes
D interior dimensions, excluding partitions

A

B. Exterior dimensions

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86
Q 
A neighborhood analysis would be most important to an appraiser estimating
A. physical depreciation
B. External depreciation
C. Functional Obsolescence
D. Highest and best use
A

B. External depreciation

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87
Q

A person lives in a modest neighborhood of two and three bedroom homes. He is contemplating installing a swimming pool in his backyard. Which of the following principles should he consider before making this investment?
A. Supply and demand
B. Conformity
C. Substitution
D. Contribution (diminishing marginal returns)

A

D. Contribution

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88
Q 
To appraise a fifty-year-old home in a fifty-year-old neighborhood, the appraiser uses
A. The cost approach
B. Income approach
C. Market data approach
D. gross rent multiplier
A

C. Market data approach

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89
Q 
It would be best to appraise a church
A. Cost approach
B. Income approach
C. Market comparison approach
D. Gross rent multiplier
A

A. Cost approach

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90
Q 
All of the following are characteristics of value EXCEPT
A. utility
B. scarcity
C. Transferability
D. Highest and best use
A

D. Highest and best use

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91
Q

Capitalization as used in appraising is
A. A method of determining value based on net income
B. Determining how much capital is needed for a down payment
C. Used primarily to establish depreciation schedule
D. A method of determining value based on gross income

A

A. A method of determining value based on net income

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92
Q

The income approach for an appraisal would most like be used on
A. A newly opened subdivision
B. Commercial and investment property rented to tenants
C. Property heavily mortgaged
D. Property heavily insured

A

B. Commercial and investment property rented to tenants

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93
Q 
Which of the following can never be depreciated
A. buildings
B. office Buildings
C. Machinery
D. Land
A

D. Land

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94
Q

To obtain the gross rent multiplier, the appraiser must obtain information from comparable properties and
A. divide the cost by annual income
B. divide the selling price by the monthly rent
C. Multiply monthly income by the rate of capitalization
D. Multiply the net income by the rate of capitalization

A

B. Divid the selling price by the monthly rent

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95
Q 
Closing an elementary school in the neighborhood of the subject property is an example of
A. Functional obsolescence
B. Physical deterioration
C. Wear and tear
D. External obsolescence
A

D. external obsolescence

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96
Q 
Of the three methods of appraising properties, the replacement cost approach is particularly appropriate and would give the MOST accurate value in the appraisal of a(n)
A. New Home 
B. Multiple family dwelling
C. older home
D. Strip shopping center
A

A. New Home

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97
Q 
The owner of a beautiful old house on a corner lot bordered by two busy streets has been told that an empty lot would be worth a lot more. This is an example of
A. Regression
B. Highest and best use
C. substitution
D. anticipation
A

B. Highest and best use

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98
Q

Which of the following would be considered a valid reason for conducting an appraisal
A. To establish a property’s value for merger purposes
B. To provide an investor with information concerning the attractiveness of the purchase
C. To compute fair market value in a condemnation
D. All of the above

A

D. All of the above

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99
Q 
The market comparison approach to value is an indication of the
A. Range of probable value
B. Lowest value
C. future value
D. highest value
A

A. Range of probable value

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100
Q 
A leaking roof on an otherwise intact property is an example of 
A. economic obsolescence
B. curable deterioration
C. incurable deterioration
D. functional obsolescence
A

B. Curable Obsolescence

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101
Q

Replacement Cost is BEST described as the
A. original cost adjusted for inflation
B. cost of building a property of equivalent utility with modern materials
C. cost of purchasing and equally desirable property
D. cost of building an exact replica of the subject property

A

B Cost of building a property of equivalent utility with modern materials

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102
Q 
Capitalization is a process used to
A. convert income into value
B. determine the value of most residential property
C. determine the total remaining capital
D. Save money on an investment
A

A. Convert income into value

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103
Q 
Physical deterioration most closely means
A. obsolescence
B. wear and tear
C. reversion
D. cost
A

B. wear and tear

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104
Q 
What type of reduction in value is present when a hydrogen gas tank is located next to a property
A. physical deterioration
B. negligible deterioration
C. functional deterioration
D. external obsolescence
A

D. external obsolescence

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105
Q 
which of the following facts might be classified as functional obsolescence
A. exterior needs painting
B. property fronts on a busy expressway
C. property has a single-car garage
D. neighborhood is fifty years old
A

C. property has a single car garage

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106
Q 
Using the income approach to valuation, which of the following is NOT a proper deduction from effective gross income to determine net income?
A. Reserve for replacement
B. interest payment on loans
C. maintenance expense
D. management costs
A

B. Interest payments on loans

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107
Q 
The collection of data and the analysis of different approaches to value is
A. depreciation
B. amortization
C. reconciliation
D. Acrual
A

C. reconcilliation

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108
Q 
An appraisers fee is typically based on
A. value of the property
B. percentage of value plus a flat fee
C. time and expense
D. state regulated fees
A

C. time and expense

109
Q 
For a property to have value in the real estate market, it must have all of the following characteristics EXCEPT
A. demand
B. Scarcity
C. immobility
D. transferability
A

C. immobility

110
Q

highest and best use is defined as
A. industrial property rezoned for single family use
B. The use which will yield the highest return on investment
C. Exclusive residential hilltop or “view” lots
D. property purchased for owner use and occupancy

A

B. the use which will yield the highest return on investment

111
Q 
value of property is
A. measured in terms of the usefulness of the property
B. identical with price
C. equal to its cost upon completion
D. determined by an official assessor
A

A. Measured in terms of the usefulness of the property

112
Q 
A report setting forth the estimate and conclusion of value is a(n)
A abstract
B. critique
C. Closing statement
D appraisal
A

D. appraisal

113
Q

market price is the
A. true market value
B. best price at public
C. Price asked for the property on the open market
D. Amount, in terms of money, paid for the property

A

D. Amount, in terms of money, paid for the property

114
Q 
The purpose of an appraisal is to
A. Determine market value
B. Estimate market value
C. Average market value
D. Set the market price
A

B. Estimate market value

115
Q

Physical forces can affect the value of real property can affect the value of real property. which of the following is an example of a physical force.
A. Flooding that devastates an area destroying a lot of house - housing prices soar due to the shortage created
B. commercial zoning is approved in a predominantly residential area
C. over the years, family size has decreased
D. high interest rates and high unemployment prevail in the community

A

A. flooding that devastates an area destroying a lot of houses

116
Q 
The statement that no prudent person would pay more for a parcel of real property than the price of a reasonable close alternative which is available without undue delay, refers to the principle of, 
A. balance
B. competition
C. conformity
D. substitution
A

D. substitution

117
Q

in determining a listing price for a property, the prudent broker will advise the seller to
A. set a price close to the market value
B. set a price considerably highe than expected selling price to negotiate
C. start at a price below market value as a come-on
D. choose any price they thing the property is worth to them

A

A. set a price close to the market value

118
Q 
The concept that neighboring, higher priced property will increase the value of a single, less valuable property is called
A. obsolescence 
B. progression
C. regresson
D. participation
A

B. progression

119
Q 
The most commonly used approac to appraising residential property is
A. income approach
B. cost approach
C. replacement approach
D. market data approach
A

D. market data approach

120
Q 
the loss is value or estimated worth because of outmoded function is an example of
A. lessened use
B. economic obsolescence
C. depreciation
D. wear and tear
A

C. depreciation

121
Q 
Two of the three main types of depreciation are physical deterioration and functional obsolescence, the third is
A. dry rot
B. vandalism
C. economic obsolescence 
D. determination of net income
A

C. economic obsolescence

122
Q

in the final correlation stage of an appraisal, the estimate of value is developed by
A. average the three indicators of value
B. according the greatest weight to the median value indication
C. selecting the value indication closes to the value desired by the employer
D. relating the value indication to the type of property being appraised and the quantity and quality of the available data

A

D. selecting the value indication closest to the value desired by the employer

123
Q 
The estimated cost to construct a replica of the subject property at the time of the appraisal is called
A replacement cost
B. reproduction cost
C. per unit basis
D. assembly cost
A

B. reproduction cost

124
Q 
In appraising, if you wished to construct a similar building, which functions as well as, but is not the same as the subject property, you would use the
A. replacement cost
B. market data approach
C. comparable
D. reproduction cost
A

A. replacement cost

125
Q 
Which of the following would relate to functional obsolescence
A. poor architectural design
B. wear and tear
C. location
D. economic obsolescence
A

A. poor architectural design

126
Q

which of the following would be beneficial in preventing economic economic obsolescence on income property?
A. all of the surrounding businesses were prospering
B. proper management running the building efficiently
C. excellent maintenance onb the building
D. zoning ordinance adversely affecting the property

A

A. all of the surrounding businesses were prospering

127
Q 
Depreciation is assumed to occur at an event rate over a structures
A. physical life
B. taxable life
C. economic life
D. capatalized life
A

C. economic life

128
Q 
The most common appraisal that is require by many government agencies is the 
A. CMA
B letter form
C URAR
D. abstract
A

A. URAR

129
Q 
J and S are neighbors. S tells J that she can store her camper in her yard for a few weeks until she needs the space. S did not charge J rent for the use of her yard. S has given J a(n)
A. easement appurtenant
B. License
C. Estate of land
D. easement by necessity
A

B license

130
Q 
All of the following are economic characteristics of land EXCEPT
A. scarcity
B. immobility
C. Loacation
D. Ability to be improved
A

B immobility

131
Q 
Builder M did pay S who did not pay for the landscaping for a new home that was just sold to new owners, w. S may file a mechanics lien against
A. the property owned by W
B. the home owned by M
C. any property owned by M.
D no one
A

A the property owned by W

132
Q

The property has fiver years remaining on the lease. the owner dies, and the heirs want to occupy the property. what is the status of the lease.
A. the probate process will cancel the lease
B. the heirs must give at least one years notice in order to regain possession
C. the lease remains in effect until the end of the five years
D. Death terminates the lease

A

C. the lease remains in effect until the end of the five years

133
Q

Investor S leased the ground from J for fity years. S then build an office building on the land. At the end of the fity years, who owns the building?
A s or his heirs
B. J must reimburse s for the building
C. J or his heirs
D. S or his heirs may buy the land from j or his heirs

A

C. J or his heirs

134
Q 
The buyer paid cash for a property and later discovered that it had several outstanding liens against it. no one was sympathetic to the buyer because he had not gone to the courthouse to investigate the public records. Filing in the public records is called
A. actual notice
B. nominal notice
C. constructive notice
D. punitive notice
A

C. Constructive notice

135
Q

The buyer has agreed to go to closing although not everything is finished on the new house. the buyer wants to hold back some money until everything is finished. who holds this money.
A the buyer can hold the money
B. the seller/builder can open up a trust account
C. the broker can put the money in the brokers business account
D. the money may be placed in the trust account of the closing agent

A

D. The money may be placed in the trust account of the closing agent

136
Q 
A lease which is terminated by the death of either party is called a
A tenancy at will
B tenancy for years
C. tanancy in common
D. teanancy by the entireties
A

A. tenancy at will

137
Q

in a condominium ownership arrangment, who owns the the common areas, such as parking lot, swimming pool and laundry areas
A. HOA
B. Each condo owner has an equal percentage share as joint tenants
C condo owners hold as tenants in common
D. developer retains ownership of common areas

A

C. Condo owners hold as tenants in common

138
Q 
When a person sells his home and he also sells the refrigerator and some of the furniture, the document likely to be used to transfer the refrigerator and furniture would most likely be a
A. deed
B. bill of sale
C. promissory note
D. mortgage
A

B. bill of sale

139
Q 
if a person owns a property to the middle of a small stream, he is dealing with
A. governmental land survey
b. riparian rights
C. littoral rights
D. license rights
A

B riparian rights

140
Q 
The best way to determine if there is an encroachment on your property is by
A. a survey
B. title insurance
C. title search
D. affadvit
A

A. a survey

141
Q 
severalty is ownerships by
A. several persons
b. the undivided interest in property
C. title passing to the survivors
D. one person only
A

D. one person only

142
Q

L, M, and P own property as tenants in common. L dies; his interest will pass to
A. the heirs or whomever is designated under Ls will
B. remaining owners
C. surviving owners and their heirs
D. Ls surviving spouse

A

A. the heirs or whomever is designated under Ls will

143
Q 
Pending court action is
A attachment
B lis pendens
C. judgement
D final decree
A

B lis pendens

144
Q

Ownership of real proeprty is trasferred when the
A granor signs the deed
B. grantees pays the amount owned
C. grantors signature has been acknowledged
D. deed is delivered and accepted

A

D. deed is delivered and accepted

145
Q 
All of the following are essential to the validity of a deed except
A. words of conveyance
B. signature of the grantor
C. signature of the grantee
D. consideration
A

C. signature of the grantee

146
Q 
which of the following individuals would need to obtain an official record of title to a property by using a quiet title action. 
A. developer
B. subdivider
C. adverse possessor
D. buyers in closing covered by respa
A

C adverse possessor

147
Q 
a woman with a daughter married to a man with a son. the husband and wife purchase a property as joint tenants. the wife dies, and in her will, the wife left all of her property to her daughter. what interest did the daughter receive in the house?
A. all of the house
b. 1/4 of the house
C. 1/2 of the house with her step father
D. none of the house
A

D none of the house

148
Q

a metes and house legal description must
A. cover an area larger than five acres
b. used in areas not covered by rectangular survey system
C. begin and end at the same indentfiable point
D. always use north as the basis for directions

A

C begin and end at the same identifiable point

149
Q 
of the following, what is the main difference between fee simple freehold and life estate
A. non payment
B. inheritbale
C. nontransferable
D. too complicated to explain
A

B. inheritable

150
Q

All of the following factors that distinguish real property from personal property are that real property
A. can be mortgaged
B. is considered permanet, fixed and immovable
C. can be freely transferred by deed
D. is always taxed at a higher right

A

D is always taxed at a higher rate

151
Q 
three co owners of a property could not agree on who should buy out whom. they had to go to cour to file for
A. foreclosure
B. quite title
C. forfeiture
D. partition
A

D parition

152
Q 
when is the premium for title insurance due
A. before closing
B at closing
C. monthly during life of loan
D. each anniversary of closing day
A

B before closing

153
Q 
the right to cross over property owned by another is called
A. adverse possession
B easement
C. homestead right
D lien
A

B easement

154
Q 
the type of deed that would most likely be used to cure a defect called a "cloud of title" is a 
A quit claim deed
B. warranty deed
C. deed of conveyance
D. deed in trust
A

A quit claim deed

155
Q 
an easement appurtenant
A is the usual type of easement granted to utility companies to permit them to run electric lines across the property
B runs with the land
C has only a dominant estate
D. benefits the servant estate
A

B runs with the land

156
Q

encumbrances that are considered liens on real estate can be created by
A. covenants that restricted the use of the property
B. easements
C. personal restrictions
D. special assessments

A

D special assessments

157
Q 
the clause in a deed which sets forth or limits the extent of the interest in the title being conveyed is the
A. demising clause
B. testimonial clause
C. habendum clause
D. indenture clause
A

C Habendum clause

158
Q 
a corporation sells stock, which entitles the stockowners to a "proprietary lease" what kind of ownership is this
A. condominium
B. syndicate
C. cooperative
D. planned unit development
A

C Cooperative

159
Q 
if the city imposes a maximum of two people per bedroom, this is an example of 
A. building codes
B zoning
C. PUD guidelines
D. environmental concerns
A

B zoning

160
Q 
zoning laws are example of
A. eminent domain
B. police power
C. adverse possession
D. deed restrictions
A

B police power

161
Q 
in zoning, a use established after a passage of zoning ordinance, in violation of it, is
A. non-conforming use
B. a variance
C. illegal
D. spot zoning
A

C illegal

162
Q 
the right of government to take control of a pice of land after giving the owner a fair price is a good example of
A. statue of frauds
B. police power
C. power of eminent domain
D. dedication
A

C power of eminent domain

163
Q 
the government takes a parcel of real estate for public use by a process called
A eminent domain
B. zoning
C. police power
D. condemnation
A

D Condemnation

164
Q 
the tax levied for the improvement of the sewage systme in one specifc are of thecity would like be called 
A ad valorem tax
B. specific tax
C. special assessment tax
D. unfair
A

C special assessment tax

165
Q 
the tax rate is most often expressed in
A. tax levies
B. assessments
C. percentages
D. mills
A

D mills

166
Q 
a developer wants to maintain a certain look about the neighborhood. he can do so through
A. eminent domain
B. zoning ordinances
C. deed restrictions
D. police power
A

C deed restrictions

167
Q 
the two conditions must exist before the state can take ownership of land through escheat are
A. intestate, no heirs
B. open, notorious use
C. public benefit, just compensation
D. voluntary, for public benefit
A

A Intestate, no heirs

168
Q 
a new home can be sold but not lived in unless the builder supplies a
A. builders affidavit
B. title insurance
C. certificate of occupancy
D. building permit
A

C certificate of occupancy

169
Q 
Eye irritation and itchy skin may be symtops of excessive
A. levels of lead in the blood
B. asbestos
C. airborne radon
D. UREA formeldehyde foam insulation
A

D UREA formeldehyde foam insulation

170
Q 
Lead poisoning is discover by testing the
A. blood
B. urine
C. air
D. hair
A

A Blood

171
Q 
Which of the following environmental hazards naturally occurs in our environment and is a known carcinogen
A. asbestos
B radon
C. UFFI
D. Lead
A

B Radon

172
Q 
what is the target ear for lead-based paint disclosures in residential properties
A. 1960
B. 1988
C. 1978
D. 2000
A

C 1978

173
Q 
A planned combination of diverse land uses, such as house, recreation and shopping, in one contained development or subdivision is called
A. zoning 
B density zoning
C. clustering
D. planned unit development
A

D planned unit development (PUD)

174
Q 
Taxes levied for the general support of the municipality or country and which vary according to the value of the property being taxed called
A. ad valorem tax
B. special assessment tax
C. alienation tax
D. statutory right of redemption
A

A ad valorem tax

175
Q 
a delinquent tax payer who has lost his property can redeem the property by
A. right of redemption
B. equalization factor
C. right of equity
D. doing nothing
A

A right of redemption

176
Q 
a restrictive covenant in a deed must not be contrary to 
A. real estate license laws
B. public policy
C. opinion of the neighbors
D. statue of frauds
A

B public policy

177
Q 
when a property is down-zoned, who hears the loss of value
A. property owner
B. tax payer
C. county or city
D. federal government
A

A property owner

178
Q 
Which of the following best describes a practice of grouping homes close together and reserving the remaining land as common area
A. clustering
B. zoning
C. zero lot lines
D. mixed use development
A

A clustering

179
Q

Land, by definition includes the surface of the earth air space above subsurface rights and
A. tree water and other natural attachments
B. all appurtenant buildings
C. annual crops such as wheat corn and fruit
D. chattell

A

A. Trees, water, and other natural attachments

180
Q 
Title to trade fixtures, shelves, counters and merchandise should be transferred by a(n)
A. deed
B. bill of sale
C. chattel mortgage
D. escrow
A

B. Bill of sale

181
Q 
The voluntary parting with ownership of real property is
A. adverse possession
B. forfeiture
C. alienation
D. eminent domain
A

C. alienation

182
Q 
The type of lien used by someone who does work or furnishes supplies on a home is a(n)
A. machinists lien
B. mechanics lien
C. easement lien
D. riparian lien
A

B. mechanics lien

183
Q 
The addition to ones land by gradual deposit of soil through natural causes is
A. annexation
B. sedimentation
C. accretion
D. erosion
A

C. accretion

184
Q 
an encumbrance is anything which affects the
A. grant fee
B. transfer of ownership
C. loan value
D. title
A

D. title

185
Q 
a buyer could acquire an equitable title interest in property transferred by use of
A. valid abstract
B. contract for deed
C. mortgage
D. deed of trust
A

B. contract for deed

186
Q 
Brown owns land adjoining a large river. during the past year, the rivers current has transferred twenty cubic yards of soil from smiths property to browns property. who now owns the twenty cubic yards of soil?
A. smith
B. brown
C. county
D. state
A

B. Brown

187
Q

Concerning an unrecorded deed, which of the following is MOST correct?
A. it does not give constructive notice to the subsequent purchasers of the involved property
B. it need not contain a legal description to be valid between the grantor and the grantee
C. it is not valid between the grantor or the grantee
D. it need not contain any statement of consideration to be valid between the grantor and the grantee

A

A. it does not give constructive notice to the subsequent purchasers of the involved property

188
Q

A special warranty deed differs from a general warranty deed in the grantors covenant is a special warranty deed
A. applies only to a definite limited time
B. covers the time back to the original title
C. is implied and is not written in full
D. protects all subsequent owners of the property

A

A. applies only to a definite limited time

189
Q

The document typically used by a subdivider to show the blocks, lots, streets etc of a subdivision is known as
A. covenants and conditions
B. a plat map
C. zoning ordinance compliance documentation
D. an aerial subdivision depiction chart

A

B a plat map

190
Q 
Because of the curvature of the earth, it is necessary to compensate for shortages in the rectangular survey system through
A. correction lines
B. fractional lots
C. bench marks
D. principal meridians
A

A. correction lines

191
Q

The most important factor in determining whether something is a fixture is
A. the original cost
B. its size
C. its weight
D. the intention of the party who attached it

A

D. the intention of the party who attached it

192
Q

In real estate the term “improvements” most nearly means
A. fences wells drains and roadways
B. additions to the original structure
C. everything artificial or constructed except the land
D. upgrades to the interior

A

C. everything artificial or constructed except the land

193
Q 
A declaration made by a person to an official stating that a deed has been freely and voluntarily executed is called an
A. acknowledgement
B. authorization
C. authentication 
D. execution
A

A Acknowledgement

194
Q

Deeds are recorded for which of the following purpose
A. to proved a notice of their existence
B because recording is required by law
C. because an unrecorded deed is not valid
D. to make the title marketable

A

A to provide a constructive notice of their existence

195
Q 
Which of the following encumbrances would constitute a lien on real property
A. easement
B. encroachment
C. mortgage
D. restriction
A

C. mortgage

196
Q 
The bundle of legal rights refers to possession, disposition, and 
A. siezen and demise
B. mortgage and chattel
C. eminent domain and condemnation
D. control and enjoyment
A

D. control and enjoyment

197
Q 
Real property includes the land, improvements and 
A chattell
B personality
C. bundle or legal rights
D. easements
A

C. bundle of legal rights

198
Q

Riparian rights allow a property owner to do which of the following
A. fish from a river adjoining the property
B. drill for oil or gas from beneath the propertys surface
C. extraft iron ore from beneath the propertys surface
D. do all of the above

A

A. fish from a river adjoining the property

199
Q 
an article permanently attached or fastend to real property is
A. personal property
B. real property
C. chattel
D. private proeprty
A

B. Real property

200
Q

The ownership rights to real estate include all of the following EXCEPT
A. buildings located on the property
B. easements running with the land
C. navigable rivers running through the property
D. air space above the property

A

C. navigable rivers running through the property

201
Q 
under the law of landlord and tenant where the property is sold during the term of the lease, who is entitle to the emblements.
A. landlord
B. tenant
C. both the landlord and the tenant
D. new owner
A

B. tenant

202
Q 
What does real property include
A. buildings
B. riparian rights
C. watercourses appurtenant to the land
D. all of the above
A

D. all of the above

203
Q 
Of the following which is not an economic characteristic of land
A. scarcity
B. immobility
C. location
D. ability to be improved
A

B. immobility

204
Q 
T devised his residence to his wife, and upon her death, the home was to go to their son. The wife dies two weeks after her husband. under these circumstances, the son received a(n)
A. estate expectancy
B. remainder estate
C. life estate
D. reversionary interest
A

B. remainder estate

205
Q

The phase “severalty of ownership” most nearly means
A. property is owned by a business organization
B. several pieces of property are owned by several persons
C. the property is owned by several persons
D. the property is owned by one person

A

D. the property is owned by one person

206
Q 
the voluntary parting with ownership of real property is
A. adverse possession
B. alienation
C. forfeiture
D. eminent domain
A

B alienation

207
Q 
A few days before closing, the sellers wife was hospitalized. the seller decided not to sell. what is the buyers option if he really wants the property
A. partition suit
B. escheat
C. action for specific performance
D. contract for deed
A

C. action for specific performance

208
Q 
in real estate the most likely instrument of conveyance would be
A. assignment
B. quit claim deed
C novation
D. warranty deed
A

D. warranty deed

209
Q

An encroachment has been allowed to exist for 35 years. which of the following is most correct concerning this encroachment.
A. it cannot be disclosed by the attorneys opinion
B. it may be cause for an easement in gross
C. it may be cause for an easement by prescription
D. it cannot be disclosed by a survey

A

C. it may be cause for an easement by prescription

210
Q 
a person who dies without a will is said to have died
A. testate
B. probate
C. by devise 
D. intestate
A

D intestate

211
Q 
probate means an action to
A. cure a defect by a quit claim deed
B. obtain access to a safe deposit box
C. prove title by adverse possession
D. process a will, to establish its validity
A

D. process a will, to establish its validity

212
Q 
Which of the following encumbrances is illegal
A. easement
B. mortgage
C. encroachment
D. restriction
A

C. encroachment

213
Q 
Unpaid real estate taxes become
A. a lien
B. an encroachment
C. a first lien
D. normally a second lien
A

C a first lien

214
Q

Which of the following deed restrictions is valid?
A. that the property cannot be sold to persons of a certain race
B. property must not be used for religious purposes
C. the restriction must always be the same as the existing zoning
D. limitations on materials used or the type of architecture

A

D. limitations on materials used or the type of architecture

215
Q 
The right of a water company to lay and maintain water mains along the rear of a lot is 
A. an appurtenance
B. an easement in gross
C. a riparian right
D. a right of encroachment
A

B an easement in gross

216
Q

Which of the following is typically a personal property?
A. Gas and mineral rights
B. water rights
C. trees on a farm
D. beneficiarys rights under a real estate trust

A

D. beneficiarys rights under a real estate trust

217
Q

An example of an encumbrance on a real estate may be
A. an unpaid brokers commission
B. a building
C. live stock
D. an easement granting another a right of way over land

A

D. an easement granting another right of way over land

218
Q

Chain of title means
A. measurement used by a surveyor
B. a listing of all owners of the property
C. certificate of title
D. heirs named in a will to inherit property after the death of a testator

A

B. a listing of all owners of the property

219
Q 
Abstract of title is a 
A. contract for a deed
B. guarantee of title
C listing of all recorded instruments affecting the subject property
D. rough painting of the property
A

C. listing of all recorded instruments affecting the subject property

220
Q 
A cloud on the title would probably be discovered upon
A. application for a mortgage loan
B. a survey
C. appraisal of the property
D. title examination
A

D. title examination

221
Q 
there are several covenants in a general warranty deed. in one of the covenants the grantor warrants the he or she is the owner of the property and has the right to convey title. this is called a covenant of 
A. warranty forever
B. seisen
C. trust
D. involuntary alienation
A

B. seisen

222
Q 
The deed to purchaser must include
A. survey 
B. title report
C. recital of how grantor retained his title
D. legal description of property
A

D. legal description of property

223
Q 
A formal declaration made before a duly authorized officer, usually a notary of public, by a person who has signed a document is called a(n)
A. recording
B. acknowledgement
C. declaration of due care
D. judgement
A

B acknowledgement

224
Q 
Title to real estate passes from the grantor to the grantee when the deed is
A. written
B. signed
C. delivered and accepted
D. acknowledged
A

C. delivered and accepted

225
Q 
In order to record a deed, it must be in writing and
A. acknowledged
B. signed by the grantee
C. recite the actual purchase price
D. be free of all liens
A

A. acknowledged

226
Q 
a deed executed and delivered but not recorded is
A. void
B. voidable
C. valid
D. unenforceable
A

C valid

227
Q 
the deed of conveyance is recored at the
A. assessors office
B. title company
C. county recording office
D. mortgage company
A

D mortgage company

228
Q 
a person lives openly, notoriously, and honestly on a piece of land for more than ten years. he may gain title by
A. constructive notice
B. accretion
C. alluvion
D. adverse possession
A

D. adverse possession

229
Q 
A deed is recorded to 
A make it valid
B. insure title
C. serve actual notice
D. serve constructive notice
A

D. serve constructive notice

230
Q

a quit claim deed
A. carries no covenants or warranties
B. warrants that there are no encumbrances of record
C. warrants against encumbrances known by the grantor
D. warrants against encumbrances known by the grantor

A

A. carries no covenants or warranties

231
Q 
When property is sold on which there is a recorded easement, the easement 
A. expires
B. continues
C. reverts
D. terminates
A

B continues

232
Q 
Of the following, which is the only way a corporation may hold title in a co-ownership
A. joint tenant
B. tenancy at will
C. tenancy severalty
D. tenancy in common
A

D. tenancy in common

233
Q 
the utilities of time, interest and the possession are essential to 
A. tennancy in common
B. join tenanancy
C. any lease
D. leases longer than one year
A

B. joint tenancy

234
Q 
land gained through the receding of water on the banks of a water way is
A. avulsion
B. alluvion
C. Accretion
D. reliction
A

D. reliction

235
Q 
Which of the following is not required in a valid deed
A. consideration
B. sellers signature
C. buyers signature
D. property description
A

C buyers signature

236
Q 
a complex sells each of its units individually in fee simple ownership. this is an example of a 
A leasehold
B. condominium
C. leaseback
D. cooperative
A

B. condominium

237
Q 
The owner of a cooperative apartment has
A. real property ownership
B. fee simple ownership
C. proprietary lease
D. a deed
A

C. proprietary lease

238
Q 
The owner of real estate who leases it to another is called
A. vendor
B. grantor
C. lessor
D. optionor
A

C. lessor

239
Q 
A leasehold estate continues for a definite period of time and whcih doest not require notice by either party to terminate is a(n)
A. tenancy at sufferance
B. tenancy at will
C. tenancy from period to period
D. tenancy for years
A

D. tenancy for years

240
Q 
A leasehold which is terminated at the death of either party is a 
A. tenancy for years 
B. tenancy at sufferance
C. tenancy at will
D. tenancy from period to period
A

C tenancy at will

241
Q 
when real estate is sold the lease
A. espires
B is broken
C. must be reviewed
D. remains binding on the new owner
A

D. remains binding on the new owner

242
Q 
when the landlord fails to provide essential services and the tenant must move out, he may terminate his lease because
A. actual eviction
B. constructive eviction
C. quiet enjoyment of premises
D. willful negligence
A

B. constructive eviction

243
Q 
a lease which require the tenant to pay all expenses of the property in addition to his rent is called
A. gross lease
B. assigned lease
C. Percentage lease
D. net lease
A

D. net lease

244
Q 
Permanent references to aid surveyors have been established throughout the United States. these are called
A. benchmarks
B. legal marks
C. surveyor marks.
D. bronze markers
A

A. benchmarks

245
Q 
The "rectangular survey systems" is also known as
A. metes and bounds
B. datum markers
C. benchmarks
D. government survey system
A

D. government survey system

246
Q 
Lot and block numbers normally refer to
A> metes and bounds
B. plat of subdivision
C. monuments
D. condominiums
A

B plat subdivision

247
Q 
landscaped parks and playgrounds used to screen residential areas from nonresidential areas are called
A. bulk zoning
B. buffer zone
C. zoning ordinances
D. takings
A

B. buffer zone

248
Q 
if there is an inconsistency between the zoning ordinance and a deed restriction, which will take precedence
A. government: zoning
B. whichever is least restrictive
C. private: deed restrictive
D. whichever is most restrictive
A

D. whichever is most restrictive

249
Q 
an ordinance that restricts the average maximum number of houses per acre is called
A. density zoning
B. grid iron
C. clustering
D. curvilinear
A

A. density zoning

250
Q 
the state passes power to local authorities through
A. zoning ordinances
B. variances
C. building codes
D. enabling acts
A

D. enabling acts

251
Q 
changing from higher-density to lower-density uses is called
A. down zoning
B. building codes
C. up zoning
D. certificate of occupancy
A

A. down zoning

252
Q 
building codes are generally enforced by
A. appraisers
B. building inspectors
C. developers
D. tax assessors
A

B. building inspectors

253
Q

a non-conforming use in zoning means which one of the following
A. not allowed to continue if zoning ordinance is amended to prohibit its uses
B. a continuing use for a limited number of years
C. permitted to continue until use is abandoned, or building is destroyed
D. always continues in perpetuity

A

C. permitted to continue until use is abandoned or building is destroyed

254
Q 
the right of the government to place reasonable restrictions on the use of privately held land is known as
A. restrictive covenant
B. police power
C. subordination
D. eminent domain
A

B. police power

255
Q 
in connection with zoning, a variance is
A. non-conforming use
B. an exception to a statutory provision
C. the interior layout of a dwelling
D. a reference to the exterior design of a house
A

B. an exception to a statutory provision

256
Q 
eminent domain most nearly means
A. sale to a public corp
B. private use with consideration
C. public use with compensation 
D. public use without compensation
A

C. public use with compensation

257
Q 
the compulsory charge the government imposes against benefiting property owners for street improvements or road repairs is called
A. general tax
B. special excise tax
C. special assessment
D. property use tax
A

C special assessment tax

258
Q 
when a person dies intestate and no heirs can be found for intestate succession, the real property will revert to the government through a process called
A. reconveyance
B. reversion
C. succession
D. escheat
A

D. escheat

259
Q

for which of the following would property normally be condemned under the right of eminent domain
A. subdivision development
B. erection of public buildings
C. construction of major shopping center
D. to provide access to a landlocked parcel

A

B. erection of public buildings

260
Q 
a prominent family donated several acres to the municipality to be used as a park. the voluntary transfer of private property is called
A. eminent domain
B. dedication
C. defeasance
D. descent
A

B dedication

261
Q 
zoning regulations usually will regulate all of the following EXCEPT
A. nonconforming uses
B. variances
C. setback restrictions
D. building materials
A

D. building materials

262
Q

Two individuals form a partnership to open a real estate company. Which of the following is correct regarding licensing requirements?
A. both must be licensed
B. at least one of them must be a broker
C. if one is a broker, the other must be a sales person
D. they can hire a licensed broker to run the company and neither needs to a license.

A

B. at least one of them must be a broker

263
Q

According to iowa real estate license law, all of the following would be classified as engaging in the practice of real estate EXCEPT the person who
A. for a fee, sells real estate for other
B. attempts to sell real estate for anyone subject to a recepit of a fee only if successful
C. regularly receives compensation for renting properly for various landlords
D. is selling his or her own personal property

A

D. is selling his or her own personal property

264
Q

a salesperson, living in des moines, holds an inactive iowa salesmans license. which of the follwing acts may she perform.
A. list and sell homes in the DM area
B. List and sell commercial property anywhere in iowa
C. she must choose between residential and commercial activities
D. she cannot list or sell homes anywhere in iowa.

A

D. she cannot list or sell homes anywhere in iowa

265
Q

a licensed real estate broker may do all of the following except
A. employ a telemarketing company to solicit listings
B. employ another broker on his/her behalf as a salesperson
C. offer a different commission splits with salespeople within the company
D. establish a commission rate without notifying the local MLS

A

A. employ a telemarketing company to solicit listings

266
Q

which of the following is a requirement to become a licensed agent in iowa
A. must be 21 years old
B. be a resident of iowa
C. us citizenship
D. complete an application form and forward without a recent photo

A

D. complete an application form and forward without a recent photo

267
Q

a salesperson working for a broker has committed a violation of a real estate license law. his broker was awar of the violation but did not participate in the illegal activity. can the principal brokers license be suspended ?
A. yes because the principal broker had guilty knowledge
B. yes because the broker always loses his/her license if a salesperson does
C. no because the broker did not participate in the act
D. no because the broker cannot be expected to supervise all his/her salespeople

A

A. yes because the principle broker had guilty knowledge

268
Q

how soon must the broker deposit the earnest money into the brokers turst account after an offer to purchase has been made?
A. before the offer is presented
B. within 24 hours of presentation
C. within five banking days of offer presentation
D. within five banking days of acceptance of offer

A

D. within five banking days of acceptance of offer

269
Q

Which of the follwoing events regarding a disciplinary action involving a real estate licensee?
A. Licensee may be temporarily suspended before a hearing if the complaint is very serious
B. brokers license may be suspended without a hearing when the broker has been indicted on criminal charges
C. salespersons license may be automatically revoked for fraud
D. licensee may never be suspended without holding a hearing first

A

B. brokers license may be suspended without a hearing when the broker has been indicted on criminal charges.

Iowa Realtors License Exam (1 decks)

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