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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
25
```
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
```
B. Amount of the loan
26
```
The lender is called the
A. Grantor
B. Grantee
C. Mortgagor
D. Mortgagee
```
D. Mortgagee
27
```
The written promise to repay money borrowed to purchase is a house
A. Mortgage
B. Promissory Note
C. Deed
D. Lease
```
B. Promissory Note
28
```
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
```
B. Qualifying
29
```
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
```
B. Wraparound mortgage
30
```
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
```
C. Origination fees
31
```
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%
```
B. 1/8 of 1%
32
```
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. Debt to the sale price
33
```
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
```
C. Qualifying
34
```
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. Owners equity
35
```
Amortization is the process of
A. Liquidation of debt
B. Depreciation
C. Winding up a business
D. Equity of redemption
```
A. Liquidation of debt
36
```
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
```
D. Increase
37
```
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
```
C. Loan to value ratio
38
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
B. Amortization on a monthly basis
39
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.
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.
40
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
B. Looks to the man's heirs for payment since it is binding on his heirs
41
```
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
```
D. Alienation clause
42
```
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. valid
43
```
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. the mortgage is assumed by a new buyer
44
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
B. acknowledges a paid off mortgage
45
```
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
```
C. Approved lending institutions
46
```
The Veterans administration
A. Insures loans
B. Guarantees loan
C. Lends money directly to the buyer
D. Has no involvement in home loans
```
B. Guarantees loan
47
```
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
```
C. FHA
48
```
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
```
C. Condition of the money market
49
```
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
```
B. Junior Lean
50
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. Are sometimes insured in part by private mortgage companies
51
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
B. investors who provide mortgage funds by purchasing mortgages from originators
52
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
D. Federal National Mortgage Association
53
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
B. Organized as a privately owned corporation
54
```
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
```
C. Graduated payment mortgage
55
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
D. that which is taken back by the seller from the buyer at the time of the sale
56
```
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
```
C. Open end mortgage.
57
```
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
```
C. Blanket mortgage
58
```
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. the deed to the property
59
```
The greatest risk to a mortgage lender is found in
A. Construction loans
B. Permanent loans
C. FHA loans
D. VA loans
```
A. Construction loans
60
```
The person executing the mortgage is called the
A. Mortgagee
B. Mortgagor
C. Grantor
D. Grantee
```
B. Mortgagor
61
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
C. it acts as a secondary market by purchasing FHA VA and Conventional loans
62
```
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
```
C. Balloon Mortgage
63
```
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
```
B. Note
64
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
D. all of the above
65
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
B. Seller remains responsible for the repayment of the loan
66
```
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
```
B. Land Contract
67
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
D. In draws after specific stages of construction have been completed.
68
```
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. Amount of down payment
69
```
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
```
B. a mortgage given to the seller by the buyer as part of the purchase price
70
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
D. executed by the lender
71
```
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
```
C. Deficiency of judgement
72
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
C. Condominiums
73
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
D. Seller financing activity usually increases
74
```
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
```
D. equitable right of redemption
75
```
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 LTV ration
76
```
Which of the following principles of value is most important to the appraiser
A. Progression
B. Highest and best use
C. substitution
D. Contribution
```
B. Highest and Best use
77
```
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. physical detoriation
78
```
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
```
D. define the problem
79
```
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
```
D. reconciliation
80
```
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
```
C competitive market analysis
81
```
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 lowest priced homes
82
```
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
```
C Replacement value
83
```
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. Plottage
84
```
An appraisal of real estate does which of the following
A. Determines value
B. Estimates
C. Guarantees
D. Averages values
```
B. estimates value
85
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
B. Exterior dimensions
86
```
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
```
B. External depreciation
87
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)
D. Contribution
88
```
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
```
C. Market data approach
89
```
It would be best to appraise a church
A. Cost approach
B. Income approach
C. Market comparison approach
D. Gross rent multiplier
```
A. Cost approach
90
```
All of the following are characteristics of value EXCEPT
A. utility
B. scarcity
C. Transferability
D. Highest and best use
```
D. Highest and best use
91
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 method of determining value based on net income
92
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
B. Commercial and investment property rented to tenants
93
```
Which of the following can never be depreciated
A. buildings
B. office Buildings
C. Machinery
D. Land
```
D. Land
94
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
B. Divid the selling price by the monthly rent
95
```
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
```
D. external obsolescence
96
```
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. New Home
97
```
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
```
B. Highest and best use
98
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
D. All of the above
99
```
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. Range of probable value
100
```
A leaking roof on an otherwise intact property is an example of
A. economic obsolescence
B. curable deterioration
C. incurable deterioration
D. functional obsolescence
```
B. Curable Obsolescence
101
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
B Cost of building a property of equivalent utility with modern materials
102
```
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. Convert income into value
103
```
Physical deterioration most closely means
A. obsolescence
B. wear and tear
C. reversion
D. cost
```
B. wear and tear
104
```
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
```
D. external obsolescence
105
```
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
```
C. property has a single car garage
106
```
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
```
B. Interest payments on loans
107
```
The collection of data and the analysis of different approaches to value is
A. depreciation
B. amortization
C. reconciliation
D. Acrual
```
C. reconcilliation
108
```
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
```
C. time and expense
109
```
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
```
C. immobility
110
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
B. the use which will yield the highest return on investment
111
```
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. Measured in terms of the usefulness of the property
112
```
A report setting forth the estimate and conclusion of value is a(n)
A abstract
B. critique
C. Closing statement
D appraisal
```
D. appraisal
113
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
D. Amount, in terms of money, paid for the property
114
```
The purpose of an appraisal is to
A. Determine market value
B. Estimate market value
C. Average market value
D. Set the market price
```
B. Estimate market value
115
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. flooding that devastates an area destroying a lot of houses
116
```
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
```
D. substitution
117
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. set a price close to the market value
118
```
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
```
B. progression
119
```
The most commonly used approac to appraising residential property is
A. income approach
B. cost approach
C. replacement approach
D. market data approach
```
D. market data approach
120
```
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
```
C. depreciation
121
```
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
```
C. economic obsolescence
122
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
D. selecting the value indication closest to the value desired by the employer
123
```
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
```
B. reproduction cost
124
```
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. replacement cost
125
```
Which of the following would relate to functional obsolescence
A. poor architectural design
B. wear and tear
C. location
D. economic obsolescence
```
A. poor architectural design
126
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. all of the surrounding businesses were prospering
127
```
Depreciation is assumed to occur at an event rate over a structures
A. physical life
B. taxable life
C. economic life
D. capatalized life
```
C. economic life
128
```
The most common appraisal that is require by many government agencies is the
A. CMA
B letter form
C URAR
D. abstract
```
A. URAR
129
```
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
```
B license
130
```
All of the following are economic characteristics of land EXCEPT
A. scarcity
B. immobility
C. Loacation
D. Ability to be improved
```
B immobility
131
```
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 the property owned by W
132
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
C. the lease remains in effect until the end of the five years
133
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
C. J or his heirs
134
```
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
```
C. Constructive notice
135
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
D. The money may be placed in the trust account of the closing agent
136
```
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. tenancy at will
137
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
C. Condo owners hold as tenants in common
138
```
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
```
B. bill of sale
139
```
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
```
B riparian rights
140
```
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 survey
141
```
severalty is ownerships by
A. several persons
b. the undivided interest in property
C. title passing to the survivors
D. one person only
```
D. one person only
142
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. the heirs or whomever is designated under Ls will
143
```
Pending court action is
A attachment
B lis pendens
C. judgement
D final decree
```
B lis pendens
144
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
D. deed is delivered and accepted
145
```
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
```
C. signature of the grantee
146
```
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
```
C adverse possessor
147
```
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
```
D none of the house
148
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
C begin and end at the same identifiable point
149
```
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
```
B. inheritable
150
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
D is always taxed at a higher rate
151
```
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
```
D parition
152
```
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
```
B before closing
153
```
the right to cross over property owned by another is called
A. adverse possession
B easement
C. homestead right
D lien
```
B easement
154
```
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 quit claim deed
155
```
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
```
B runs with the land
156
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
D special assessments
157
```
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
```
C Habendum clause
158
```
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
```
C Cooperative
159
```
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
```
B zoning
160
```
zoning laws are example of
A. eminent domain
B. police power
C. adverse possession
D. deed restrictions
```
B police power
161
```
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
```
C illegal
162
```
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
```
C power of eminent domain
163
```
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
```
D Condemnation
164
```
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
```
C special assessment tax
165
```
the tax rate is most often expressed in
A. tax levies
B. assessments
C. percentages
D. mills
```
D mills
166
```
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
```
C deed restrictions
167
```
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 Intestate, no heirs
168
```
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
```
C certificate of occupancy
169
```
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
```
D UREA formeldehyde foam insulation
170
```
Lead poisoning is discover by testing the
A. blood
B. urine
C. air
D. hair
```
A Blood
171
```
Which of the following environmental hazards naturally occurs in our environment and is a known carcinogen
A. asbestos
B radon
C. UFFI
D. Lead
```
B Radon
172
```
what is the target ear for lead-based paint disclosures in residential properties
A. 1960
B. 1988
C. 1978
D. 2000
```
C 1978
173
```
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
```
D planned unit development (PUD)
174
```
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 ad valorem tax
175
```
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 right of redemption
176
```
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
```
B public policy
177
```
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 property owner
178
```
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 clustering
179
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. Trees, water, and other natural attachments
180
```
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
```
B. Bill of sale
181
```
The voluntary parting with ownership of real property is
A. adverse possession
B. forfeiture
C. alienation
D. eminent domain
```
C. alienation
182
```
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
```
B. mechanics lien
183
```
The addition to ones land by gradual deposit of soil through natural causes is
A. annexation
B. sedimentation
C. accretion
D. erosion
```
C. accretion
184
```
an encumbrance is anything which affects the
A. grant fee
B. transfer of ownership
C. loan value
D. title
```
D. title
185
```
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
```
B. contract for deed
186
```
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
```
B. Brown
187
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. it does not give constructive notice to the subsequent purchasers of the involved property
188
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. applies only to a definite limited time
189
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
B a plat map
190
```
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. correction lines
191
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
D. the intention of the party who attached it
192
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
C. everything artificial or constructed except the land
193
```
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 Acknowledgement
194
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 to provide a constructive notice of their existence
195
```
Which of the following encumbrances would constitute a lien on real property
A. easement
B. encroachment
C. mortgage
D. restriction
```
C. mortgage
196
```
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
```
D. control and enjoyment
197
```
Real property includes the land, improvements and
A chattell
B personality
C. bundle or legal rights
D. easements
```
C. bundle of legal rights
198
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. fish from a river adjoining the property
199
```
an article permanently attached or fastend to real property is
A. personal property
B. real property
C. chattel
D. private proeprty
```
B. Real property
200
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
C. navigable rivers running through the property
201
```
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
```
B. tenant
202
```
What does real property include
A. buildings
B. riparian rights
C. watercourses appurtenant to the land
D. all of the above
```
D. all of the above
203
```
Of the following which is not an economic characteristic of land
A. scarcity
B. immobility
C. location
D. ability to be improved
```
B. immobility
204
```
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
```
B. remainder estate
205
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
D. the property is owned by one person
206
```
the voluntary parting with ownership of real property is
A. adverse possession
B. alienation
C. forfeiture
D. eminent domain
```
B alienation
207
```
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
```
C. action for specific performance
208
```
in real estate the most likely instrument of conveyance would be
A. assignment
B. quit claim deed
C novation
D. warranty deed
```
D. warranty deed
209
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
C. it may be cause for an easement by prescription
210
```
a person who dies without a will is said to have died
A. testate
B. probate
C. by devise
D. intestate
```
D intestate
211
```
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
```
D. process a will, to establish its validity
212
```
Which of the following encumbrances is illegal
A. easement
B. mortgage
C. encroachment
D. restriction
```
C. encroachment
213
```
Unpaid real estate taxes become
A. a lien
B. an encroachment
C. a first lien
D. normally a second lien
```
C a first lien
214
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
D. limitations on materials used or the type of architecture
215
```
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
```
B an easement in gross
216
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
D. beneficiarys rights under a real estate trust
217
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
D. an easement granting another right of way over land
218
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
B. a listing of all owners of the property
219
```
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
```
C. listing of all recorded instruments affecting the subject property
220
```
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
```
D. title examination
221
```
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
```
B. seisen
222
```
The deed to purchaser must include
A. survey
B. title report
C. recital of how grantor retained his title
D. legal description of property
```
D. legal description of property
223
```
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
```
B acknowledgement
224
```
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
```
C. delivered and accepted
225
```
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. acknowledged
226
```
a deed executed and delivered but not recorded is
A. void
B. voidable
C. valid
D. unenforceable
```
C valid
227
```
the deed of conveyance is recored at the
A. assessors office
B. title company
C. county recording office
D. mortgage company
```
D mortgage company
228
```
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
```
D. adverse possession
229
```
A deed is recorded to
A make it valid
B. insure title
C. serve actual notice
D. serve constructive notice
```
D. serve constructive notice
230
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. carries no covenants or warranties
231
```
When property is sold on which there is a recorded easement, the easement
A. expires
B. continues
C. reverts
D. terminates
```
B continues
232
```
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
```
D. tenancy in common
233
```
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
```
B. joint tenancy
234
```
land gained through the receding of water on the banks of a water way is
A. avulsion
B. alluvion
C. Accretion
D. reliction
```
D. reliction
235
```
Which of the following is not required in a valid deed
A. consideration
B. sellers signature
C. buyers signature
D. property description
```
C buyers signature
236
```
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
```
B. condominium
237
```
The owner of a cooperative apartment has
A. real property ownership
B. fee simple ownership
C. proprietary lease
D. a deed
```
C. proprietary lease
238
```
The owner of real estate who leases it to another is called
A. vendor
B. grantor
C. lessor
D. optionor
```
C. lessor
239
```
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
```
D. tenancy for years
240
```
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
```
C tenancy at will
241
```
when real estate is sold the lease
A. espires
B is broken
C. must be reviewed
D. remains binding on the new owner
```
D. remains binding on the new owner
242
```
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
```
B. constructive eviction
243
```
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
```
D. net lease
244
```
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. benchmarks
245
```
The "rectangular survey systems" is also known as
A. metes and bounds
B. datum markers
C. benchmarks
D. government survey system
```
D. government survey system
246
```
Lot and block numbers normally refer to
A> metes and bounds
B. plat of subdivision
C. monuments
D. condominiums
```
B plat subdivision
247
```
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
```
B. buffer zone
248
```
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
```
D. whichever is most restrictive
249
```
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. density zoning
250
```
the state passes power to local authorities through
A. zoning ordinances
B. variances
C. building codes
D. enabling acts
```
D. enabling acts
251
```
changing from higher-density to lower-density uses is called
A. down zoning
B. building codes
C. up zoning
D. certificate of occupancy
```
A. down zoning
252
```
building codes are generally enforced by
A. appraisers
B. building inspectors
C. developers
D. tax assessors
```
B. building inspectors
253
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
C. permitted to continue until use is abandoned or building is destroyed
254
```
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
```
B. police power
255
```
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
```
B. an exception to a statutory provision
256
```
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
```
C. public use with compensation
257
```
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
```
C special assessment tax
258
```
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
```
D. escheat
259
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
B. erection of public buildings
260
```
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
```
B dedication
261
```
zoning regulations usually will regulate all of the following EXCEPT
A. nonconforming uses
B. variances
C. setback restrictions
D. building materials
```
D. building materials
262
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.
B. at least one of them must be a broker
263
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
D. is selling his or her own personal property
264
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.
D. she cannot list or sell homes anywhere in iowa
265
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. employ a telemarketing company to solicit listings
266
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
D. complete an application form and forward without a recent photo
267
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. yes because the principle broker had guilty knowledge
268
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
D. within five banking days of acceptance of offer
269
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
B. brokers license may be suspended without a hearing when the broker has been indicted on criminal charges.
