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Real Estate > Online Test > Flashcards

Online Test Flashcards

1
Q

Which of the following statements BEST describes what happens to mineral rights when the land is sold?

A

They pass to the buyer unless specifically noted .

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2
Q

Which of the following items would NOT be an appurtenance?

A

Reversion

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3
Q

A buyer made an offer on a house and the seller accepted the offer as written. The buyer wanted some of the seller’s personal property to remain with the house. The personal property would transfer to the buyer under which of the following conditions?

A

If it was included in the contract .

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4
Q

A buyer bought a property. The property contained a nice set of built-in bookshelves. Which statement is true regarding the built-in bookshelves?

A

They stay with the property as they are permanently attached.

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5
Q

When property is taken for public improvements from an unwilling owner, it is referred to as:

A

eminent domain

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6
Q

The state government can take property that has been abandoned by the owner through what right?

A

escheat.

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7
Q

Fee simple title would BEST be described as receiving:

A

the maximum rights in a property.

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8
Q

A child owns a life estate and sells the property to a friend. Which of the following statements is true regarding the friend’s estate?

A

It ends when the child dies

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9
Q

Jimmy and Susan owned a commercial property as joint tenants. If Susan dies, who would receive the property?

A

Jimmy

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10
Q

A person owned a condominium and leased it to Katherine for one year. What did this create?

A

a leasehold estate

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11
Q

Which of the following is a voluntary lien against a person’s property?

A

mortgage lien

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12
Q

A trespass of an improvement (such as a corner of a building) onto a neighboring property is which of the following?

A

An encroachment

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13
Q

Which of the following would transfer legal use but not ownership of a property?

A

an easement

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14
Q

Which of the following is an encroachment?

A

a building with a roof that extends over the property line

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15
Q

Who would determine the amount for maintenance fees in a condominium?

A

the owners association

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16
Q

An owner of a condominium unit failed to pay their property taxes. Which of the following acts is MOST likely to occur?

A

ownership of the condominium unit will be jeopardized

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17
Q

When ownership is conveyed by the transfer of shares of stock, this is:

A

cooperative

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18
Q

As a condition of owning space in a condominium, the owners were assessed a monthly fee for the use of the clubhouse and swimming pool. An owner did not use either the clubhouse or the swimming pool. The owner:

A

would still be required to pay the full monthly assessment

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19
Q

A relocation company purchased a property. The relocation company in trying to sell the property only wanted to guarantee the property since the time they have owned it. The type of deed necessary to accomplish this would be a:

A

special warranty deed

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20
Q

The purpose of the encumbrances clause in a general warranty deed is to protect against:

A

unrecorded liens that may affect the value of property

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21
Q

When does title to real estate transfer from seller to the buyer?

A

when the deed is delivered and accepted

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22
Q

Documents are recorded to provide:

A

constructive knowledge

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23
Q

In which of the following instances is a quitclaim deed most generally used?

A

to quiet a cloud on the title .

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24
Q

Which of the following items would NOT place a limitation on your rights in property?

A

title insurance

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25
Q

A property with a total value of $40,000 was appraised for tax purposes at 25% of market value. If the tax rate was $3 per $100 of the appraised tax value, how much tax was owed?

A

$ 300

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26
Q

An established family grocery store is in an area that has recently been zoned residential. If the grocery store was to be sold, what document would be needed to allow continued use of the grocery store?

A

pre-existing non-conforming use

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27
Q

Property used for something other than the current zoning is referred to as a:

A

non-conforming use

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28
Q

What is the purpose of a mortgagor giving a mortgage to the mortgagee?

A

to pledge property as security for the loan

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29
Q

The primary purpose of a mortgagor giving a mortgage to the mortgagee is to:

A

secure the debt

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30
Q

A property appraised for $42,000. If the buyer borrowed $28,000, what is the difference between the two amounts called?

A

buyer’s equity

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31
Q

Which of the following statements is true of an adjustable rate mortgage
(ARM)?

A

the interest rate changes based on the market index agreed to up front

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32
Q

A buyer purchased a $60,000 house and was able to obtain a $36,000 loan. The loan was amortized over 20 years with an interest rate of 9% and a principal and interest payment of $323. 90 per month. What was the total interest paid over the term of the loan?

A

$ 41,736

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33
Q

Upon which of the following events would a prepayment penalty be enforced?

A

the loan being paid in full before its due date

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34
Q

Two creditors have an agreement to switch the lien priority. This agreement would be referred to as:

A

subordination

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35
Q

A buyer purchased a seller’s home and assumed the seller’s loan. The seller does not want to remain liable for the loan. What should the seller do?

A

arrange for the lender to give a release of liability to the seller

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36
Q

Which of the following loans uses both real and personal property as security?

A

package loan

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37
Q

A seller sold property to a buyer. Since the buyer didn’t have enough money for the down payment, the seller took back a mortgage on the property and loaned the down payment money to the buyer. The seller’s interest in the property is secured by a:

A

purchase money mortgage

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38
Q

Which of the following statements is correct regarding a VA loan?

A

the lender makes the loan and the VA guarantees the loan

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39
Q

In order for a veteran to receive a VA loan, the veteran must first obtain a:

A

certificate of eligibility

40
Q

What is the purpose of a borrower paying for private mortgage insurance (PMI)?

A

to protect the lender against loss for a portion of the mortgage

41
Q

Discount points of 1 % would be computed based upon the:

A

loan amount

42
Q

A buyer was interested in purchasing a home. The buyer found a house to buy but had to obtain financing to purchase. The buyer talked to a lender who gave the buyer in writing a commitment on the interest rate and discount points. This letter is called a:

A

lock-in commitment

43
Q

A property sold for $60,000 with the buyer obtaining a $57,200 loan. The seller agreed to pay 6 discount points. How much would the seller owe for the discount points?

A

$ 3,432

44
Q

A contract for deed can be best referred to as an:

A

installment sale contract

45
Q

What is it called when a buyer purchases a property, makes monthly installment payments to the seller, and receives the deed after the entire purchase is completely paid?

A

a contract for deed

46
Q

Which document is required under the Real Estate Settlement Procedures Act to be given before closing?

A

A good faith estimate of closing costs

47
Q

According to the Real Estate Settlement Procedures Act (RESPA), the closing statement must be signed by the buyers, sellers, and ____ _

A

closing agent

48
Q

Which of the following would be an example of a lender violating the usury laws?

A

a lender charging more than the maximum legal amount of interest

49
Q

Dual agency is allowed in a real estate transaction as long as:

A

Dual agency is illegal in the state of Kansas.

50
Q

What does a person have who can sign legal papers for another person?

A

a power of attorney

51
Q

Which type of relationship is established between a principal and a broker?

A

fiduciary

52
Q

Which of the following statements is true of a salesperson?

A

a salesperson is an agent for the broker

53
Q

A listing agent is showing the listed property to a prospective buyer. The buyer tells the listing agent that a favorable change in zoning is coming with regard to the listed property. What should the listing agent d

A

tell the seller as you have a fiduciary obligation to the seller

54
Q

Between the time a buyer and seller signed a sales contract and closing, the zoning on the property was changed. Does the listing agent need to disclose this fact to the buyer who is a customer?

A

yes, the agent should notify the buyer immediately as it is a material fa

55
Q

A broker listed a property for sale at $450,000. The actual value of the property was $490,000. The broker had his sister purchase the property for $400,000, put $5,000 of earnest money in the broker’s escrow account, and received $6,000 in commission on the sale. The broker then gained ownership from his sister through a prior, undisclosed agreement. The broker is in violation of:

A

not disclosing his future ownership interest through his sister’s purchase

56
Q

Which of the following would be a violation of the Sherman Anti-Trust Laws?

A

a group of brokers setting a common commission rate

57
Q

An agreement whereby a person is hired to investigate potential tenants, collect rent and furnish monthly financial statements for an owner is called a:

A

property management agreement

58
Q

A property manager of a 10 unit apartment received a commission of 8% of the annual gross rental income plus $175 for each new tenant. Six of the units rent for $650 each per month and the remainder rent for $550 each per month. The manager was able to find four new tenants during the year. If there was a 10% vacancy factor, what was the property manager’s annual income?

A

$5,970

59
Q

At closing, all parties receive a copy of the:

A

settlement statement

60
Q

Who enforces the real estate license law in Kansas?

A

Kansas Legislature

61
Q

If a person is employed by a utility company to acquire easements on behalf of the utility. Which of the following statements is true?

A

No license would be required if the person acquired gross easements, not appurtenant easement

62
Q

Jim’s mother died without a will. Jim was appointed as administrator by the probate court. Jim hired a manager to manage the commercial property without fees paid to the manager. Jim hired an unlicensed auctioneer to auction the agricultural property at a 10% commission fee. Jim then hired an attorney to sell the house as part of the normal attorney duties. Which of the parties would be in violation of Kansas License Law?

A

The auctioneer selling agricultural land .

63
Q

An Arkansas broker is doing seminars on Arkansas property at dinners in various places in Kansas. Some people have asked him if they can buy the properties. Which is true regarding her need for a Kansas license?

A

He needs a Kansas license to advertise Arkansas Property in Kansas.

64
Q

How are the Kansas real estate commissioners compensated?

A

Subsistence and mileage .

65
Q

For what number of years is a license issued?

A

2 years

66
Q

A resident licensee of another state who wants a Kansas license must do all EXCEPT:

A

maintain an office in Kansas .

67
Q

A broker who moves his personal residence should do which of the following?

A

Notify the KREC in writing within 10 days

68
Q

If a Kansas licensee is denied or rejected for licensure in another state, how many days does that person have to notify the KREC?

A

10 days

69
Q

A broker would have to notify the Kansas Real Estate Commission (KREC) upon:

A

a change of business location

70
Q

Which of the following statements is true regarding a broker wanting to use a name for the brokerage company other than the broker’s own name?

A

the broker has to get the approval to use the name from the KRE

71
Q

A buyer asks a selling salesperson about the title to the property listed by another broker. What should the salesperson do regarding this question?

A

refer the buyer to an attorney.

72
Q

A real estate licensee can do all of the following EXCEPT:

A

ry to induce a party to break a contract for listing, lease or sale.

73
Q

How long can a licensee remain inactive without having to retest?

A

5 years?

74
Q

A real estate licensee can do all of the following EXCEPT:

A

try to induce a party to break a contract for listing, lease or sale.

75
Q

How long is a broker required to keep all real estate records?
Your answer:

A

3 years

76
Q

When is it ok for a broker to sign papers on behalf of a seller (principal)?

A

when the broker has a properly certified power of attorney

77
Q

Which of the following is allowed under the Kansas License Law?

A

a broker calling a seller who’s listed with another broker under an open listing .

78
Q

When can earnest money be disbursed out of an escrow account in the event of a dispute between buyer and seller?

A

upon order of the court .

79
Q

In the main office of a real estate company, who is responsible for assigning the Transaction Identification Numbers to all escrow documentation?

A

Supervising broker .

80
Q

A broker has $500 of the broker’s own money in the broker’s escrow account. This is:

A

this is commingling .

81
Q

A buyer contracted to buy a house, but was turned down on the loan. He demanded to have his earnest money returned to him. In which case can the broker do this?

A

if both seller and buyer agree to this in writing .

82
Q

A branch broker is not required to maintain a transaction numbering system if:

A

the branch office maintains no trust account .

83
Q

A cooperating broker who has written an offer on another broker’s exclusive listing should:

A

submit the offer to the listing broker

84
Q

A licensee owns a property. The licensee decides to sell the property as a for­sale-by-owner rather than listing it with the licensee’s real estate company. Which of the following statements is true?

A

it must be indicated to the public that a licensee has an ownership interest in the property

85
Q

The Kansas Real Estate Commission can suspend or revoke a person’s license after a hearing in the following circumstances EXCEPT:

A

failure to renew in a timely manner

86
Q

A salesperson buys a house that is in foreclosure pursuant to redemption rights. Who must the salesperson contact immediately as to this purchase?

A

the mortgage holder.

87
Q

A licensee had their real estate license revoked by the KREC. The licensee could appeal their decision to the:

A

Court for Judicial Review .

88
Q

A home is listed at $70,000 but the listing salesperson tells a prospective buyer he could buy the home for $60,000. The seller accepts the buyer’s offer for $60,000. Later, the seller learns what the salesperson told the buyer. The KREC could:

A

fine, restrict or revoke the salesperson’s license .

89
Q

A broker has been found guilty of two violations of the Kansas License Law. What is the maximum fine that can be imposed by the Kansas Real Estate Commission (KREC)?

A

$ 1,000 for each violation

90
Q

When would money be paid from the recovery fund?

A

to reimburse a member of the public to whom a broker has done wrong upon the order of the court .

91
Q

The recovery fund has dropped below $100,000. A licensee has been sent a notice to pay the $5 for a salesperson or $10 for a broker to replenish the fund. However, the licensee has not responded. What could the KREC do?

A

suspend his license until the amount is paid .

92
Q

ver the last 2 years, a licensee sold 10 different homes that were over a toxic waste dump without disclosing this fact to the buyers. Each of the buyers received an $8,000 judgment against the licensee. What is the maximum amount that could be paid out of the recovery revolving fund in this situation?

A

$50,000

93
Q

Under the Brokerage Relationships in Real Estate Transactions Act (BRRETA), if a listing broker is aware of a roof leak, the broker is required to:

A

disclose to all potential buyers as this is a material condition concerning the property.

94
Q

According to the Brokerage Relationships in Real Estate Transactions Act
(BRRETA), which of the following must a seller’s agent reveal to a customer?

A

any and all material defects in the title if known .

95
Q

Which of the following would be a violation under the Brokerage Relationships in Real Estate Transactions Act (BRRETA)?

A

encouraging a seller or buyer client to cancel the agreement with another agent.

96
Q

The Brokerage Relationships in Real Estate Transaction Act (BRRETA) does NOT prohibit which of the following?

A

an oral, non-exclusive listing .

97
Q

Which of the following would not be considered a ministerial act?

A

Suggesting a fair offering price to a buyer

Real Estate (16 decks)

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