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Real Estate Test > Practice Exam 3 > Flashcards

Practice Exam 3 Flashcards

1
Q
  1. A sales associate gets a signed contract from a buyer and mails it to the seller. The seller has agreed to the terms, and the escrow deposit is safely in the broker’s escrow account. The sales associate has a disagreement with his broker and quits. The broker refuses to pay a commission because the sales associate was not in his employ when the contract was actually received and signed. The sales associate should:

A. notify the state
B. sue the seller for his share
C. sue the broker
D. forget it; he or she is not entitled to the commission

A

C. sue the broker

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2
Q
  1. The principal and employer are the same as:
    A. the buyer
    B. the seller
    C. the one who engages the broker in a single agency relationship
    D. the one who pays the broker
A

C. The one who engages the broker in a single agency relationship

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3
Q
  1. “B,” an owner of a parcel or real estate, signs an exclusive right of sale listing is “A,” registered broker. The listing stated that “A,” was employed to find the purchaser and that “B” agreed to pay a 10% commission if he, the broker, or any person, partnership, corporation or other firm sold the property. the remainder of the listing dealt with the terms and conditions of the sale to be procured and the length of time the listing was to be in effect. “B” went on a vacation and was still away when “C” made a written offer to purchase the property at the listed price, terms and conditions. Broker “A,” on behalf of the owner “B,” accepted the offer and signed it for “B.” Which statement is correct?

A. “A’s” listing authorized him to accept the best offer obtained for “B” by “A”

B. The listing held by “A” did not give “A” the right to to obligate “B” to “C’s” offer

C. “A’s” listing gave him the equivalent authority of power of attorney

D. “A” can accept “C’s” offer for “B”

A

B. The listing held by “A” did not give “A” the right to to obligate “B” to “C’s” offer

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4
Q
  1. Sales associate John and a friend attend a cocktail party. Sales associate John introduces friend Bill to friend Jack. It turn out that Jack has a house for sale, and Bill agrees to purchase it. Sales associate John makes it clear that he wants no commission. Sales associate John’s broker demands a commission. The broker:

A. is the procuring cause and is entitled to a commission
B. should reduce his commission because of John’s friendship
C. is not entitled to a commission
D. is entitled to a referral fee only

A

C. is not entitled to a commission

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5
Q
  1. A broker, while looking for deal for his best friend, gets a listing. The seller must sell because of a family emergency. What should the broker say to his best friend?

A. Say nothing about the seller, and ask the buyer to make an offer
B. Tell the buyer that the seller must sell quickly so that he would probably accept any reasonable offer
C. Give the buyer only the suggestion that the seller is motivated
D. Tell the buyer that dual agency exists

A

A. Say nothing about the seller, and ask the buyer to make an offer

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6
Q
  1. If an oral offer is made to a broker on a property the broker has listed, what should be the broker’s response?

A. Demand that the offer be in writing
B. Inform the buyer that the offer violates the Statute of Frauds
C. Ask for a substantial deposit
D. Submit the offer to the seller

A

D. Submit the offer to the seller

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7
Q
  1. If a broker is aware of a construction lien on a piece of property, the broker should:

A. make the buyer aware
B. tell the buyer before the closing
C. not disclose the lien
D. tell the buyer before going to contract

A

D. tell the buyer before going to contract

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8
Q
  1. A broker lists a property for $30,000. The broker learns of the new development which will be built beside the listed property. The broker purchases the property from the seller for the full listed price and discloses the fact that he is a licensed broker. Broker then sells the property to the developer for $50,000. The broker:

A. has acted ethically
B. is guilty of concealment
C. is guilty of failure to account
D. is guilty of culpable negligence

A

B. is guilty of concealment

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9
Q
  1. The township immediately west of the T1N, R1E would be

A. T2N, R1E
B. T2N, R1W
C. T1N, R2E
D. T1N, R1W

A

D. T1N, R1W

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10
Q
  1. John Smith is the broker for ABC Realty. He is preparing to open a branch office. Which of the following would NOT be required for the branch office sign?

A. licensed real estate broker
B. ABC Realty
C. John Smith
D. branch office

A

D. branch office

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11
Q
  1. Broker Jones takes a listing on a condominium from Mr. Charles. Mr. Charles notifies Jones that the roof leaks. Jones negotiates the sale if the condominium to Smith workout disclosing the leak. Smith, a year later, sells the condominium for a profit. Which applies?

A. This was legal transaction since it was the buyer’s responsibility to check for leaks.
B. This would have been illegal sale if the property had not been sold at a profit.
C. The broker would have been liable had the property sold at a loss.
D. The broker could be disciplined for concealment.

A

D. The broker could be disciplined for concealment.

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12
Q
  1. Brokers are limited in their actions by

A. certificate of estoppel
B. Statute of frauds
C. law of agency
D. all of the above

A

C. law of agency

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13
Q
  1. To help his clients to sell their property a mortgage broker agrees to hold an open house and prepares an offer to purchase on a standard contract for $250. He is:

A. exempt if the property owners requested this service.
B. exempt from the real estate license law because he is a mortgage broker.
C. exempt from the real estate license law because he used a standard contract.
D. guilty of a third degree felony.

A

D. guilty of a third degree felony.

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14
Q
  1. A broker’s principal is away on vacation. The broker receives an offer of $75,000 for his principal’s property. Before the principal returns, the broker receives a second offer of $72,000. What should the broker do?

A. Refuse the second offer since it is not as good as the first offer.
B. Submit the offer they feel is best.
C. Hold the second offer pending acceptance of the first offer.
D. Submit both offers to the principal.

A

D. Submit both offers to the principal.

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15
Q
  1. Broker Brown lists Smith’s property for 20,000. Broker Brown hears from a friend on the planning commission that they are intending to put a highway right next to Mr.Smith’s property, making his lot a corner lot. He tells another friend about what he has heard, and the friend buys the property for $20,000. Which is the most correct?

A. Broker Brown’s license may be suspended for not telling Smith.
B. He is not obligated to pass on rumors to the seller.
C. Brown has done noting wrong.
D. Broker Brown is guilty of culpable negligence.

A

A. Broker Brown’s license may be suspended for not telling Smith.

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16
Q
  1. A seller lists at $75,000 but tell the broker he will go as low as $72,000. Which is most correct?

A. The broker can’t tell the buyer of the lower price.
B. The broker must tell the buyer of the lower price.
C. The broker can accept $72,000 offer for the seller.
D. either B or C

A

A. The broker can’t tell the buyer of the lower price.

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17
Q
  1. A fiduciary relationship is one of

A. trust
B. confidence
C. trust and confidence
D. trust and confidence when accepted

A

D. trust and confidence when accepted

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18
Q
  1. Can a broker be entitled to two commissions when consummating an exchange?

A. No, as this would be a conflict of interest
B. Yes, providing both parties are advised and approve
C. Yes, but only if both brokers agree
D. No, since a broker can only have one principal

A

B. Yes, providing both parties are advised and approve

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19
Q
  1. A seller listed property at a price that the broker knew was below market value. The broker had his wife buy the property in her maiden name and subsequently resold the property at a profit. The broker could be charged with

A. nothing
B. concealment and fraud
C. alienation of affection
D. culpable negligence

A

B. concealment and fraud

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20
Q
  1. In real estate transaction, a buyer and seller can expect to have

A. a fiduciary relationship
B. a relationship of trust
C. an arms length relationship
D. a relationship of confidence

A

C. an arms length relationship

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21
Q
  1. A licensee with full representation to both parties in the same transaction is referred to as

A. a transaction broker
B. a single agent
C. a dual agent
D. a subagent

A

C. a dual agent

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22
Q
  1. Which of the following documents not only recommend that the principal sign but require it?

A. transition to transaction broker
B. Notice of Nonrepresentation
C. Single Agent Disclosure form
D. Transaction Broker Notice

A

A. transition to transaction broker

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23
Q
  1. The misstatement, omission or concealment of a factual matter is

A. misrepresentation
B. conspiracy
C. conversion
D. puffery

A

A. misrepresentation

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24
Q
  1. An Illinois corporation is transferring its employees to Florida. The firm retained a Florida broker to find homes for their employees. The attorney representing the Illinois corporation notifies the Florida broker that in the state of Illinois, an attorney is recognized as a real estate broker. Therefore, the attorney wants a referral fee. The Illinois attorney should

A. produce a certified statement to the Florida broker that Illinois attorneys are recognized as a brokers.
B. not expect a referral fee from the the Florida broker
C. notify FREC prior to expecting any referral fee
D. be able to receive a referral fee because he is recognized as a broker in Illinois

A

D. be able to receive a referral fee because he is recognized as a broker in Illinois

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25
Q
  1. A licensed broker and one of their sales associates purchase a parcel of real estate together. They have formed

A. a joint adventure
B. a limited partnership
C. a general partnership
D. an illegal venture, since only brokers can be members of a real estate partnership

A

A. a joint adventure

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27
Q
  1. When moving from one branch office to another, a broker must

A. send in the old branch office registration with a request for transfer

B. apply for and obtain a new registration for a new branch and pay the proper fee

C. change the address on his branch office registration certification

D. be at least 5 miles from the main office

A

B. apply for and obtain a new registration for a new branch and pay the proper fee

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28
Q
  1. Broker A and Broker B are working exclusively for one developer on adjoining projects. They agree to hire a sales associate between them for a half week each. The sales associate

A. must be licensed to both of them

B. must be licensed with the developer

C. must be registered with both the brokers and the developer

D. cannot have two registered employers

A

D. cannot have two registered employers

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29
Q
  1. Unless exempt, performing a service for someone else for compensation in Florida without an active license is a

A. misdemeanor of the first degree
B. misdemeanor of the second degree
C. felony of the first degree
D. felony of the third degree

A

D. felony of the third degree

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30
Q
  1. Broker Davis, Broker Ben and Broker Boone form a partnership. The partnership buys, develops and sells land. Sales associate Jerry becomes an equal partner in the firm. A sale is made, resulting in a $40,000 profit. Which is most correct?

A. The partnership is illegal unless Jerry becomes broker

B. The partnership agreement must be filed with the Secretary of State

C. The profit may be decided equally

D. Jerry cannot receive any portion of the profit

A

C. The profit may be decided equally

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31
Q
  1. A real estate brokerage sign must include the

A. sales associate’s name
B. office phone number
C. brokerage firms license number
D. name of the brokerage firm

A

D. name of the brokerage firm

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32
Q
  1. Six brokers wish to become partners in a real estate agency and be active in real estate sales. They must

A. register with DBPR as inactive brokers

B. be licensed as active brokers

C. have at least one active broker

D. register the partnership with the Department of State

A

B. be licensed as active brokers

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33
Q
  1. Broker Rick sold Janey a rental list on March 7 for $100.00. Janey inspected all the properties and found them to be occupied. On April 6, Janey demands a refund. What action should Broker Rick take?

A. Refund $100 immediately
B. Refund $100 within 30 days
C. Refund $75
D. None–no refund is due

A

A. Refund $100 immediately

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34
Q
  1. A discount broker has opened an office in town. Two sales associates from full-price, full-service offices agree not to show the discount broker’s listings. This practice is

A. illegal because it constitutes discrimination against the discount broker

B. acceptable because sales associates my show any properties they choose

C. required because discount brokerage is illegal

D. illegal because it constitutes price fixing amount the sales associates

A

D. illegal because it constitutes price fixing amount the sales associates

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35
Q
  1. What is NOT required to be displayed in a broker’s office?

A. copies of each sale associate’s license

B. a Fair Housing poster

C. a proper sign on or above the entrance

D. a city’s Business Tax Receipt, if located in their jurisdiction

A

A. copies of each sale associate’s license

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36
Q
  1. Escrow is best defined as

A. holding something for someone else in trust

B. uncollected funds held as earnest money

C. the broker’s claim on earnest money

D. something of value held by an “interested” third party

A

A. holding something for someone else in trust

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37
Q
  1. Unless there is a reasonable benefit for the borrower, the Florida Fair Lending Act prohibits a lender from refinancing the same borrower within

A. 6 months
B. 12 months
C. 15 months
D. 18 months

A

D. 18 months

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38
Q
  1. Buyer Smith gave a postdated check to the sales associate Brown that seller John accepted. Buyer Smith told the sales associate to hold the check for two weeks until the buyer could fly to New York and transfer the founds from a savings account to a checking account. On the date the sales associate receives the postdated check, the broker was out of town, but returned the following business day. Following the buyer’s instructions, the sales associate deposited postdated check into the broker’s escrow account two weeks later. The sale associate

A. acted properly as the seller had accepted the postdated check

B. should have turned over the postdated check to the broker the next business day

C. acted improperly as a post-dated check may never be accepted as a deposit

D. acted properly by following the principal’s instructions

A

B. should have turned over the postdated check to the broker the next business day

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39
Q
  1. A new sales associate expects his broker to provide

A. salary
B. business cards
C. training
D. health insurance

A

C. training

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40
Q
  1. In the complaint process, if there is no dispute over material facts, the case may be resolved by

A. an informal proceeding

B. going to court and filing a bill of interpleader

C. a formal hearing

D. a binding arbitration

A

A. an informal proceeding

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41
Q
  1. A broker from Tampa sells a property listed by a Miami broker. At closing, the Miami broker refuses to pay the Tampa broker’s share of the commission. Charges are filed by FREC against the Miami broker for failure to account. The Commission has the Miami broker subpoenaed, but the broker fails to appear. The Miami broker

A. does no have to appear

B. may be fined for contempt of court

C. could have license suspended or revoked by FREC

D. Both B and C are correct

A

D. Both B and C are correct

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42
Q
  1. A broker has shown by his or her actions that he or she is an immediate danger to the public. What can be done?

A. The license can be immediately revoked

B. The license can be immediately suspended

C. The Chairperson of FREC can issue a writ of supersedeas

D. The Secretary of the DBPR can issue a summary suspension

A

D. The Secretary of the DBPR can issue a summary suspension

44
Q
  1. A broker has been found guilty of mail fraud by a court and sent to jail. The license will

A. automatically be revoked

B. automatically be suspended

C. probably be revoked because of the conviction

D. be renewed while he is in jail

A

C. probably be revoked because of the conviction

45
Q
  1. The maximum allowable payment from the recovery fund for any financial losses suffered due to a licensee’s acts is

A. $25,000
B. $75,000 for multiple transactions
C. $50,000 per transaction, with a maximum of $15,000 for multiple transactions
D. any amount equal to the losses

A

C. $50,000 per transaction, with a maximum of $15,000 for multiple transactions

46
Q
  1. The final court in the appeal process is the

A. circuit court
B. District Court of Appeals
C. Florida Supreme Court
D. small claims court

A

C. Florida Supreme Court

47
Q
  1. A violation of chapter 475 cannot cause:

A. revocation
B. imprisonment
C. direct denial of compensation
D. a fine of $10,000 per offense

A

D. a fine of $10,000 per offense

48
Q
  1. An investor has lost $30,000 due to his broker’s negligence. The investor sued the broker and was awarded a judgment totaling $30,000. The broker went bankrupt, and the bankruptcy court forced the broker to pay the investor $8,000. The investor may obtain what amount from the recovery fund?

A. $3,000
B. $10,000
C. $22,000
D. $25,000

A

C. $22,000

49
Q
  1. If a licensee violates F.S. 475, FREC is not allowed to

A. revoke the license
B. suspend the license
C. fine the licensee $10,000
D. refuse to renew the license

A

C. fine the licensee $10,000

50
Q
  1. If FREC imposes a fine, how long does the licensee have to pay it?

A. 10 days
B. 30 days
C. 60 days
D. 90 days

A

B. 30 days

51
Q
  1. A sales associate has a fight with a seller and hits the seller on the head with a canoe paddle. What penalty will FREC administer on the sales associate?

A. FREC can suspend the canoe paddle for 30 days

B. FREC can revoke his or her license

C. FREC can suspend the sales associate’s license indefinitely

D. None, since assault and battery is not a violation of Chapter 475, F.S

A

D. None, since assault and battery is not a violation of Chapter 475, F.S

52
Q
  1. A broker who is temporarily incapacitated in regard to his or her ability to act as a broker with regard to safety of the public will probably have his or her license

A. revoked
B. suspended
C. made null and void
D. reprimanded

A

B. suspended

53
Q
  1. The maximum administrative fine for a violation of F.S. 475 is

A. $500
B. $1,000
C. $1,500
D. $5,000

A

D. $5,000

54
Q
  1. A licensee become a convicted felon serving a prison term, FREC

A. would probably suspend the license for the length of the term

B. could revoke the license

C. will revoke the license

D. will suspend the license

A

B. could revoke the license

55
Q
  1. A broker is sued for misrepresentation. The court awards the buyer $100,000 in damages. This is

A. a civil penalty
B. an administrative penalty
C. a criminal penalty
D. a civic penalty

A

A. a civil penalty

56
Q
  1. What is the maximum time the license can be suspended on the first offense?

A. 2 years
B. 5 years
C. 10 years
D. No suspension is likely on the first offense

A

C. 10 years

57
Q
  1. A license files a false affidavit to make a claim against a property. This would be a

A. First-degree felony
B. Second-degree felony
C. First-degree misdemeanor
D. Second-degree misdemeanor

A

D. Second-degree misdemeanor

58
Q
  1. When does a person NOT have to be notified that they’re being investigated by the Department of Business and Professional Regulation?

A. There is probably cause that there might have been a violation of chapter 475, F.S.

B. There is probably cause that there may have been a violation of chapter 61J2, F.A.C.

C. The act that is under investigation is a criminal offense

D. The investigation is ordered by the DBPR

A

C. The act that is under investigation is a criminal offense

59
Q
  1. Michael and Jerry are both brokers. They decided to share office space. They do not use a trade name or common letterhead, although they share a secretary. Prior to putting up the signs, a prospect come into the office and is defrauded by Jerry. Based on this information

A. Michael and Jerry have commuted estoppel

B. Michael and Jerry are general partners

C. Michael can be held responsible for Jerry’s acts

D. Jerry alone is responsible for this fraud

A

C. Michael can be held responsible for Jerry’s acts

60
Q
  1. Broker Smith, in selling building lots, offers each buyer the opportunity to purchase for $5 a chance in a lottery in which (if 20 lots are sold by the end of the week) the winner would be entitled to one-half off the price of his lot. At the end of the week, only 16 lots were sold, so Smith decided to return the entrants’ $5. Which is true?

A. Smith is in violation because he conducted device, lottery, scheme or trick

B. Smith is not in violation since the monies were returned

C. This is not a violation of chapter 475, F.S

D. This would be a violation only if Smith in fact gave the discount to the winner of the lottery

A

A. Smith is in violation because he conducted device, lottery, scheme or trick

61
Q
  1. In pursuit of an unpaid commission, a broker hires an attorney to attempt to obtain a judgment lien against the seller. In the course of action, and on the advice of the attorney, the broker filed a lis pendens against the seller’s property. What option might be taken against the broker?

A. None, since no violation has occurred

B. FREC fine the broker up to $10,000

C. A criminal penalty could be imposed by FREC

D. The broker’s license might be suspended or revoked

A

D. The broker’s license might be suspended or revoked

62
Q
  1. A broker has a Texas securities license as well as a Florida real estate license. The broker commits fraud on a securities transaction in Texas and agrees to make full restitution. most likely the broker will

A. have nothing happen in Florida because it was an out-of-state securities matter

B. have the Florida broker’s license revoked or suspended

C. have nothing happen because he made restitution

D. Be sentenced to 90 days of community service by FREC

A

B. have the Florida broker’s license revoked or suspended

63
Q
  1. Broker Smith owns a Real Estate Brokerage Corporation. When filing a 1993 tax return, he forgot to include a referral fee receives from a Georgia broker. FREC will likely

A. suspend the broker’s license

B. not renew the broker’s license

C. take no action if Smith files an amended return with the IRS and pays any penalties involved

D. cancel the corporation’s license

A

C. take no action if Smith files an amended return with the IRS and pays any penalties involved

64
Q
  1. A black buyer enters Broker A’s office and requests to be shown houses in black neighborhoods. The broker advises the buyer that he will show him houses without regard to the racial characteristics of the neighborhood. The buyer is shown houses in certain black neighborhoods and certain white neighborhoods. The buyer becomes interested in two of the houses, both of which are in predominately black neighborhoods. If the broker had followed the buyer’s initial instructions, he would

A. have violated federal laws but not the Florida real estate license law

B. have violated the Civil Rights Act and Florida law and could be suspended or revoked

C. not have violated any laws since he must follow his seller’s instructions

D. not have violated any laws since he must follow his buyer’s instructions

A

B. have violated the Civil Rights Act and Florida law and could be suspended or revoked

65
Q
  1. A seller refuses to accept an offer submitted by a broker on behalf of a buyer. The offer meets the terms of the listing contract. The broker is entitled to

A. no compensation because offer was rejected

B. 25% of the full commission

C. 50% of the full commission

D. 100% of the full commission

A

D. 100% of the full commission

66
Q
  1. The purpose of the Real Estate Settlement Procedures Act (RESPA) is to ensure that

A. land developers would not misrepresent the sale of subdivided lands

B. buyers are informed about the amount and type of charges they will expect to pay at closing

C. lenders would disclose the annual percentage of interest charges to borrowers

D. lenders do not charge a usurious interest rate on mortgages

A

B. buyers are informed about the amount and type of charges they will expect to pay at closing

67
Q
  1. Which phrase would be legal to use in advertising property?

A. soul neighborhood
B. integrated neighborhood
C. Caucasian neighborhood
D. none of the above

A

D. none of the above

68
Q
  1. A Methodist church owns a nursing home for its members. They refuse to admit anyone to the home who is not a member of their church. This is

A. not a violation of the Fair Housing Act

B. a violation of the Civil Rights Act of 1866

C. a violation of the Civil Rights Act of 1968

D. a violation of the Fair Housing Act

A

A. not a violation of the Fair Housing Act

69
Q
  1. Mrs. Murphy is a struggling small investor who owns a boarding house and rents rooms to tenants. Which is most correct?

A. She may advertise to attract tenants of a particular race or religion

B. She may refuse to rent to any tenant that she feels would not be compatible with existing boarders.

C. She cannot refuse to rent to a boarder that she feels may not be compatible

D. Private owners are exempt from the Fair Housing Act

A

B. She may refuse to rent to any tenant that she feels would not be compatible with existing boarders.

70
Q
  1. A private club has a lodge in the mountains. The club refuses to rent rooms in the lodge to certain minority groups. Which applies?

A. This is a violation of the Fair Housing Act

B. This is a violation of the Civil Rights Act of 1968

C. Under the Fair Housing Act, they may restrict rentals to members of their own club

D. Under the Fair Housing Act, they may discriminate

A

C. Under the Fair Housing Act, they may restrict rentals to members of their own club

71
Q
  1. What is NOT exempt from RESPA requirements?

A. the sale of a house where the only financing is assumption of an existing loan

B. a construction loan that will not become a permanent loan after the building is completed

C. a loan to purchase a new home in a subdivision

D. loans to purchase property when the primary purpose is resale of the property

A

C. a loan to purchase a new home in a subdivision

72
Q
  1. The Fair Housing Act of 1968 prohibits discrimination EXCEPT

A. by sales associates
B. by brokers
C. mortgagees
D. by a FSBO selling their only home

A

D. by a FSBO selling their only home

73
Q
  1. Regulation Z is published by the

A. Federal Trade Commission
B. Federal Housing Administration
C. Board of Governors of the Federal Reserve System
D. Department of Veterans Affairs

A

C. Board of Governors of the Federal Reserve System

74
Q
  1. A tenant is 2 months delinquent of the rent. The first step available to the landlord is to

A. disconnect the utilities
B. ask the sheriff to evict the tenant
C. ask the court for a writ of possession
D. post a 3-day notice to pay the rent or vacate

A

D. post a 3-day notice to pay the rent or vacate

75
Q
  1. A broker can legally show homes based upon which requests?

A. Caucasian neighborhood
B. black neighborhood
C. Hispanic community
D. retirement community

A

D. retirement community

76
Q
  1. A black person asks to see a home in a certain price range. What should a licensee show him?

A. homes in only a black area
B. homes in only a white area
C. six homes in each type of area
D. available homes in his price range regardless of area

A

D. available homes in his price range regardless of area

77
Q
  1. Widow McFee found that her deceased husband left his entire estate except for homestead to his secretary. Widow McFee can

A. file for her dower share of the one-third of all real property owned by her deceased husband

B. file for an elective share of 30% of all real and personal property owned by her deceased husband

C. file for 100% of his property under Florida’s community property law

D. only file a civil suit to contest the will

A

B. file for an elective share of 30% of all real and personal property owned by her deceased husband

78
Q
  1. Mr. Reynolds inspect a piece of property. He notes a pile of fencing that the seller tells him he had purchased with the intent of fencing in the yard but has not gotten around to doing it yet. When Mr.Reynolds buys the house and takes occupancy, he finds that the fencing has not been installed and has, in fact, been removed. Mr.Reynolds consults his lawyer who advises him that

A. since he saw the fencing at the time of inspection, it is part of the sale and should have remained

B. since it was not yet installed, it is personal property and the seller had the right to remove it

C. he ought to try to negotiate with the seller for its return prior to taking legal action

D. according to real estate license law, this is a fixture of the property and the seller’s right to the fencing would probably upheld in court of law

A

B. since it was not yet installed, it is personal property and the seller had the right to remove it

79
Q
  1. A tenant who remains in possession of the property after the termination of a lease without the landlord’s agreement is a

A. tenant at will
B. tenant at sufferance
C. tenant for years
D. tenant in common

A

B. tenant at sufferance

80
Q
  1. Which is the following shares of real property will a widow with no children receive at her husband’s death in the absence of a will?

A. one-third
B. all
C. one-half
D. life estate

A

B. all

81
Q
  1. Personal property permanently attached to the land becomes a(n)

A. encumbrance
B. attachment
C. fixture
D. encroachment

A

C. fixture

82
Q
  1. The most comprehensive estate is a

A. Life estate
B. Fee simple estate
C. Estate for years
D. Estate at will

A

B. Fee simple estate

83
Q
  1. A developer, to help the development hold its value, would

A. file a plat map
B. file subdivision restrictive covenants
C. order surveys
D. obtain a zoning variance

A

B. file subdivision restrictive

84
Q
  1. The lessor’s interest in a leased property is called

A. an estate for years
B. an estate in reversion
C. an estate by the entireties
D. a leasehold estate

A

B. an estate in reversion

85
Q
  1. Homestead rights

A. Protect from the negligence of a spouse
B. Protect from a prior judgment
C. Comply with fair housing laws
D. Protect from property tax foreclosure

A

A. Protect from the negligence of a spouse

86
Q
  1. The gradual buildup of sand on the riparian or littoral owner’s shoreline by natural causes is called

A. alluvial
B. accretion
C. avulsion
D. aeolian

A

B. accretion

87
Q
  1. If two or more persons have an undivided interest in real property, which estate cannot be created unless specific wording in the deed provides for the right of survivorship?

A. joint tenancy
B. tenancy in common
C. tenancy by the entireties
D. tenancy at will

A

A. joint tenancy

88
Q
  1. A type of contractual agreement having all essential elements of a contract, plus a property description and a definite term of tenancy specified, creates which type of interest in real property?

A. tenancy at will
B. leasehold
C. fee simple estate
D. life estate

A

B. leasehold

89
Q
  1. Jim, Matt and Jack were co-owners of a parcel of a real property. Matt died, and his co-ownership passed according to his will to become part of his estate. Matt had a

A. tenancy by the entireties
B. joint tenancy
C. tenancy in common
D. tenancy at will

A

C. tenancy in common

90
Q
  1. Which estate would NOT convey legal title?

A. estate for years
B. few simple estate
C. life estate
D. estate by the entireties

A

A. estate for years

91
Q
  1. What shows an ownership interest in land?

A. tenancy for years
B. tenancy in common
C. tenancy at will
D. estate for years

A

B. tenancy in common

92
Q
  1. An owner’s title insurance policy

A. is transferable
B. covers the amount of the mortgage
C. guarantees against all defects and encumbrances
D. guarantees against all defect and encumbrances to which no exception had been taken.

A

D. guarantees against all defect and encumbrances to which no exception had been taken.

93
Q
  1. A deed warranting title only against acts of the grantor, his or her heirs, assigns, executors or administrators and others claiming through him or her is called a

A. specific warranty deed
B. general warranty deed
C. quitclaim deed
D. special warranty deed

A

D. special warranty deed

94
Q
  1. When a utility company wants to put power line poles through a property, they must obtain an easement

A. by prescription
B. by necessity
C. in gross
D. appurtenant

A

C. in gross

95
Q
  1. The neighbors have used Farmer Jones’ “ruts” (easement by necessity) for over 20 consecutive years. It may be considered an

A. easement appurtenant
B. easement in gross
C. easement by prescription
D. implied easement

A

C. easement by prescription

96
Q
  1. A deed must be acknowledged (notarized)

A. prior to being witnessed
B. by an attorney
C. to make it valid
D. to make it recordable

A

D. to make it recordable

97
Q
  1. If an unrecorded deed is accidentally destroyed, who owns the property?

A. title holder of record
B. grantee
C. vendor
D. grantor

A

B. grantee

98
Q
  1. Under the laws of eminent domain, an individual has the right for reimbursement for

A. personal anguish
B. assessed value
C. fair market value
D. intrinsic value

A

C. fair market value

99
Q
  1. An easement is the legal right to use

A. of another’s property for any purpose
B. of another’s property for a specific purpose
C. for up to 7 years
D. for up to 20 years

A

B. of another’s property for a specific purpose

100
Q
  1. Which of the following clauses in a deed names the parties, describes the property, shows legal consideration and provides words of conveyance?

A. habendum clause
B. reddendum clause
C. granting clause
D. restriction clause

A

C. granting clause

101
Q
  1. Special assessment liens on property rank in priority

A. after private liens
B. ahead of private liens
C. ahead of real property tax liens
D. ahead of all liens

A

B. ahead of private liens

102
Q
  1. A valid deed must

A. have a competent grantee, both legally and mentally
B. be acknowledged and recorded
C. be signed by the grantor and/ or grantors
D. stipulate the exact amount of consideration involved

A

C. be signed by the grantor and/ or grantors

Real Estate Test (4 decks)

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