General Practice Quiz Flashcards
When a general contractor has performed all work under a contract with a property owner, the contractor has recourse for non payment by filing which of the following:
a. A mechanic’s lien against the property.
b. A vendor’s lien against the owner.
c. A general lien against the owner’s assets.
d. A general contractor’s bond for nonpayment.
a. A mechanic’s lien against the property.
A lease that provides for periodic increases of rent at regular intervals is called a:
a. Graduated lease.
b. Percentage lease.
c. Yearly lease.
d. Net lease.
a. Graduated lease.
Which of the following terms BEST describes personal property that, by its attachment to real property, is regarded as real estate?
a. Emblements.
b. Personalty.
c. Fixtures.
d. Appliances.
c. Fixtures.
If a broker receives two offers for the same property at approximately the same time, which of the following offers should the broker submit to the owner?
a. The first offer received, first.
b. The highest offer.
c. The best overall offer.
d. Both offers at the same time.
d. Both offers at the same time.
“Nonconforming use” is a term to classify property that:
a. Has not been surveyed.
b. Does not comply with zoning regulations.
c. Is in need of repairs.
d. Extends over the property line.
b. Does not comply with zoning regulations.
The price at which a willing and informed buyer would buy and a willing and informed seller would sell is called the: a. Assessed value. b. Book value. . Income approach to value. d. Market value.
d. Market value.
The donation of private land for public use is called:
a. Escheat.
b. Dedication
c. Assignment
d. Condenmnation
b. Dedication
“This loan may become due and payable at lender’s option should this property be sold without lender’s prior written consent.” This statement is an example of which of the following mortgage clauses?
a. Escalation.
b. Acceleration.
c. Prepayment.
d. Right of redemption.
b. Acceleration.
A salesperson who prepares a written listing agreement with a buyer is helping to create a contractual relationship between the:
a. Salesperson and the buyer.
b. Salesperson and the seller.
c. Salesperson and the listing broker.
d. Salesperson’s broker and the buyer.
d. Salesperson’s broker and the buyer.
Which of the following situations is an example of encroachment?
a. An access road that runs across a property from a public road to another property.
b. A storage building that extends over the boundary line between the property of the building’s owner and an adjacent property.
c. Timber that has been cut down on the property by a tenant for use as firewood.
d. A right-of-way for electric and telephone lines that goes across a property
b. A storage building that extends over the boundary line between the property of the building’s owner and an adjacent property.
Salesperson McDuff is listing a home for sale. The owner says “The house next door sold last week for $95,000, all cash, within 8 days of being put on the market. Our home is definitely bigger and has a lot of extras.” In the absence of an appraisal, the broker should recommend that the listing price be which of the following?
a. $95,000.
b. $95,000 plus commission and closing costs.
c. A price reflective of additional comparable properties.
d. Any price the owner sets.
c. A price reflective of additional comparable properties.
When a buyer purchases a property subject to a seller’s existing mortgage, which of the following statements is CORRECT?
a. The seller’s credit will not be affected before closure on the property as the buyer is assuming the mortgage. b. The seller is released from all liability of the loan.
c. Any mortgage loan obtained by the buyer to complete the purchase will be a first mortgage.
d. The seller’s obligations under the existing mortgage remain unchanged.
d. The seller’s obligations under the existing mortgage remain unchanged.
Which of the following statements about the income approach to value is CORRECT?
a. It determines an investment property’s value based on its return.
b. It is used more frequently than the direct sales comparison (market value) approach to set loan-to value ratios.
c. It is the most accurate method of appraising single-family homes.
d. It produces the highest estimate of value possible based on best use.
a. It determines an investment property’s value based on its return.
Which of the following types of legal descriptions identifies a property by outlining its boundaries in terms of a series of directions and distances from a specific point of beginning?
a. A rectangular 100’ on the street and back and 135’ on the sides.
b. Lot and block.
c. Metes and bounds.
d. Geodetic.
c. Metes and bounds.
A licensee preparing a competitive market analysis (CMA) has information on a comparable property that is similar in all respects to the subject property except that, while the subject property is ten years old and has two baths, the comparable property is five years old and has one bath. In this case, the licensee should adjust the:
a. Sale price of the comparable property down for the age and up for the number of baths.
b. Sale price of the comparable property up for the age and down for the number of baths.
c. Value of the subject property up for the age and up for the number of baths.
d. Value of the subject property down for the age and up for the number of baths.
a. Sale price of the comparable property down for the age and up for the number of baths.
Which of the following clauses in a conventional mortgage instrument entitles the lender to accelerate the loan if the loan is assumed?
a. Prepayment
b. Right to sell.
c. Due on sale.
d. Variable interest rate.
c. Due on sale.
The term “holdover tenant” refers to a lessee who has taken the following action?
a. Remains in possession of a leasehold beyond expiration of the lease.
b. Exercises an option to renew a lease.
c. Subleases to another tenant.
d. Uses the premises illegally.
a. Remains in possession of a leasehold beyond expiration of the lease.
If a lessee pays a fixed amount of rent plus all their expenses, the lease is known as a:
a. Graduated lease.
b. Net lease.
c. Gross lease.
d. Percentage lease.
b. Net lease.
Carl and Rebecca bought a home as tenants in common. If Carl dies, which of the following statements about ownership of the house is RIGHT?
a. It automatically becomes tenancy in severalty.
b. It is divided, with Rebecca retaining Rebecca’s original interest and the balance going to Carl’s estate. c. Rebecca holds fee simple ownership in Carl’s share of the property.
d. Rebecca holds life estate ownership in Carl’s share of the property
b. It is divided, with Rebecca retaining Rebecca’s original interest and the balance going to Carl’s estate.
The final decision in establishing the listing price of a property is made by the:
a. Listing Agent. b. Broker. c. Appraiser. d. Owner.
d. Owner.
A veteran is entitled to which of the following benefits upon repayment of the full loan balance of a VA mortgage?
a. Restoration of Loan benefits for future use.
b. Refund of any discount points paid by the previous seller.
c. Refund of the origination fee or points.
d. Partial refund of all interest paid on the loan.
a. Restoration of Loan benefits for future use.
A visually impaired person with a Seeing Eye dog makes application for rental of an apartment that has vigorously enforced “no pets” policy in the building. According to the Federal Fair Housing Act as amended in 1988, the owner of the building may:
a. Refuse to rent to the applicant as a result of the policy.
b. Require the person to house the dog outside the apartment.
c. Required the person to restore any damage to the apartment that results from the dog.
d. Increase the customary security deposit.
c. Required the person to restore any damage to the apartment that results from the dog.
Which of the following statements about the law of agency is RIGHT?
a. It refers specifically to insurance.
b. It establishes a fiduciary relationship.
c. It does not require a high degree of loyalty and fidelity from an agent.
d. There is no employment relationship.
b. It establishes a fiduciary relationship.
Broker Smith is employed by the Jones to sell their home. The Whites submit an offer to purchase the Jones’ home and tell Smith they will pay more than the offered price if the Jones request it. In this situation, Smith is:
a. Not obligated to convey the information to the Jones because to do so would violate Smith’s relationship with the Whites.
b. Not obligated to convey the information to the Jones because the Whites are not bound to this verbal representation.
c. Obligated to withdraw from the transaction because of conflicting obligations to both parties.
d. Obligated to convey the information to the Jones.
d. Obligated to convey the information to the Jones.
The brokerage fee charged by a listing broker is determined by:
a. What all the other REALTORS in town are charging.
b. Local real estate board.
c. MLS.
d. The broker and the principal.
d. The broker and the principal.
According to the Truth-in-Lending Act (Regulation Z) a lender is required to furnish a real estate loan applicant with a copy of a(n):
a. Amortization schedule showing interest and principal payments each month.
b. A complete disclosure statement.
c. A deed.
d. A financial statement.
b. A complete disclosure statement.
In a real estate closing, the buyer generally pays for the?
a. Release of the mortgage.
b. Recording of the new mortgage.
c. Preparation of the deed.
d. Sales commission.
b. Recording of the new mortgage.
Which of the following deeds should a grantor use to transfer an uncertain interest in real property?
a. Quitclaim deed.
b. General warranty deed.
c. Special warranty deed.
d. Grant deed.
a. Quitclaim deed.
A broker is typically considered to be which of the following types of agent?
a. A general agent.
b. A universal agent.
c. An individual agent.
d. A special agent.
d. A special agent.
A tenant leases a space in a shopping center, which provides rental payments that reflect the store’s sales, which type of lease are they MOST likely to use?
a. Flat fee.
b. Percentage.
c. Gross.
d. Net.
b. Percentage.
Blackwells bought a home and when reviewing the deed noticed a number of limitations regarding its use. These limitations are commonly known as:
a. Codicils.
b. Constraints.
c. Building codes.
d. Restrictive covenants.
d. Restrictive covenants.
