Pre EXAM Flashcards by Antoine Lewis

A mechanic’s lien would be properly classified as a

statutory lien

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An option__

requires the optionor to complete the transaction

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the name of a case wherein it was determined that a real estate licensee can only fill in the blanks in a form provided by legal counsel is__

Chicago bar accounting vs. Quinlan & Tyson, Inc.

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A real estate licensee has a buyer agency agreement. What is the seller in this situation?

a customer

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Seller lists his home for $400K and the broker tells the prospective buyer to submit a low offer because the seller is desperate. The buyer offers $380K and the seller accepts. In this situation, __

the broker violated the agency relationship.

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an aggrieved party with a Fair Housing violation claim has how long to file a complaint with the Department of Housing and Urban development?

1 year

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When a prospective buyer makes a written purchase offer that the seller accepts, then the ___

buyer receives equitable title to the property

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The landlord rents a property to a tenant, who is handicapped. With permission, the tenant modifies the unit to his needs.
When the lease expires, which one of the following requirements would not have to be met by the tenant?

The tenant must restore the wide doorways, that were installed for him, the original size.

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Acts that a licensee may perform for a consumer, which are informative or clerical in nature and do not rise to the level of active representation on behalf of a consumer are known as:

Ministerial acts

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Which of the following liens does not need to be recorded to be valid?

Real estate tax lien

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Both are money claims against the property;

delivered and accepted

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How soon following the closing of a transaction may a broker receive a commission check?

after the transaction is completed and funded

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a bill of sale is used to transfer the ownership of what?

personal property

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a property seller signs a listing agreement with a licensee. What is this an example of?

expressed agency

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which of the following types of ownership cannot be created by operation of law, but must be created by the parties’ expressed intent?

tenancy by the entirety

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Sam and Nancy bought a store building and took title as joint tenants.
Nancy died testate. Sam now owns the store__

in severalty

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the essential elements of a contract include all of the following except?

Notarized signatures

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A real estate salesperson wishes to sell her zero-lot home without using a broker.
What professional disclosure does the law require in this case?

that she disclose her status as a real estate salesperson in the listing.

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Due to the procedure in which mortgage foreclosures occur under state laws, Illinois is characterized as a ___

Judicial foreclosure state

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the finance charges recorded on the Truth in Lending statements would include all of the following except?

Recording fees and title insurance premiums

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the seller has told his agent that if he sells his house within 3 weeks, he will give him a $500 bonus.
What are the acceptable means by which the agent can be paid the bonus?

the bonus is to be given to agent’s sponsoring broker and then passed on to the agent

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which of the following would be used to clear a defect from the title records?

a suit to quite title

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An __ is when an owner takes his property off the market for a definite period of time in exchange for some consideration, but he grants the right to purchase the property within that period for a stated price.

option

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tom leases store space to kim for a restaurant, and kim installs her ovens, booths, counters, and other equipment.
When do these items become real property?

when the lease expires, if the items are not taken by the tenant.

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a special warranty deed differs from a general warranty deed in that the grantor's covenant in the special warranty deed as it ___

applies only to a definite limited time

a partition suit is used for which of the following?

to force a division of property without all the owners' consent

the word "improvement" would refer to all of the following except:

trade fixtures

which of the following must be disclosed to a prospective buyer?

one of the previous occupants died from a fall caused by a rotten plank in the basement stairwell

a homeowner acquired the ownership of land that was deposited by a river running through her property by __

accretion

to create a joint tenancy relationship in the ownership of real estate, there must be unities of ___

possession, time, interest, and title

a homeowner owned a house on a lot. The front ten feet of the lot were taken by eminent domain for a sidewalk. Would the homeowner be entitled to compensation?

Yes. the land was taken for public use by eminent domain

the rights of the owner of property located along the banks of a river are called __

riparian rights

jim, manny, and harry are joint tenants owning a parcel of land. Harry conveys his interest to his long-time friend Wendell. After the conveyance, Jim and Manny, ___

remain joint tenants owning a two-thirds interest

the buyer of an apartment complex is told that the refrigerator in one of the apartments goes with the sale. After taking title, he discovered that the refrigerator belonged to the tenant. Which is true about this situation?

the refrigerator is the personal property of the tenant. the seller had no right to offer it to the buyer

The gift of real property by will is called __

a devise

a broker has found a buyer for a seller's home. The buyer has indictated in writing his willingness to buy the property for $1k less than the asking price and has deposited $5k in earnest money with the broker. The seller is out of town for the weekend, and the broker has been unable to inform him of the signed document. At this point, the buyer has signed __

an offer

if the deed of conveyance to Illinois land transfers title to two or more co-owners without defining the character of the co-ownership, which of the statements is true?

the co-owners are tenants in common.

which of these describes the theory of the mortgagor/mortgagee relationship in Illinois?

intermediate mortgage theory

the amount of commission paid to a sponsored licensee is determined by?

mutual agreement with the sponsoring broker

which one of these statements applies to both joint tenancy and tenancy by the entirety?

the survivor becomes a severalty owner

the earnest money left on deposit with the seller's real estate broker is a __

credit to the buyer

mortgage title policies protect which parties from loss?

mortgagees

a licensee who has contracted with a condo owner to manage a highrise apartment is probably a __

general agent

In Illinois, legal descriptions of land are usually based on the __

nearest principal meridian

in describing real estate, the system that uses feet, degrees, and natural and artificial markers as monuments is __

metes and bounds

a homeowner wants to sell her property but cannot find her deed. in this situation, she ___

does not need the deed to sell if it was recorded

a sponsoring broker listed and sold a home. The seller had told the sponsoring broker that the home was structurally sound. This information was passed on to a prospective buyer by one of the licensee's sponsored by the broker. If the sponsoring broker has no way of knowing that this information is false, who will likely be held liable if a latent defect is later discovered?

The seller

To recover a commission for brokerage services, a sponsoring broker must be employed as the agent of the seller. Which one of these statements best explains this sentence?

the sponsoring broker must have asked the seller of the price of the property and then found a ready, willing, and able buyer

In Illinois, an individual who wishes to engage only in activities related to the leasing of residential real property __

may obtain a limited leasing agent license by completing 15 hours of instruction and passing a written examination.

If property is held by two or more owners as tenants with survivor-ship rights, the interest of a deceased cotenant will be passed to the ___

surviving owners

a city decides to build a new library. Which of these terms best describes the action taken by the city to acquire the land for the new library?

the city has the right to take the land by eminent domain as long as just compensation is paid by the property owners

when moving into a newly purchased home, the buyer discovered that the seller had taken the electric lighting units that were installed over the vanity in the bathroom. The seller had not indicated in the sales contract that these would be removed. Which one of these is true?

Installed lighting units normally are considered real estate fixtures.

what is necessary for a deed to be recorded in Illinois?

the full address of the grantee

a property manager's total compensation consists of a monthly salary, a 12% commission based on annual rental for each vacant unit the property manager fills, and the free use of one of the apartments as the property's manager personal primary residence. Based on these facts, is the property manager required by Illinois law to obtain a real estate broker or managing broker license?

No. Persons acting as resident managers, who live in the managed property, are specifically exempt from the general licensing requirements.

in two weeks, a general contractor will file a suit against a homeowner for nonpayment. The contractor just learned that the homeowner has listed the property for sale with a real estate broker. In this situation, which of the following will the contractor's attorney use to protect the contractor's interest?

Lis Pendens

Which one of these is a similarity between an exclusive agency listing and an exclusive right to sell listing?

both types of listings give the responsibility of representing the seller to one broker only.

Under the National Do Not Call Registry, for how long after the listing has expired may the licensee solicit business from the firm's previous listings?

18 months

a prospective buyer needs to borrow money to buy a house. The buyer applies for and obtains a real estate loan from a mortgage company. The buyer then signs a note and a mortgage. In this example, the buyer is the ___

mortgagor

a person owns a primary residence and two apartment buildings. She pays property taxes on two of the three properties. The delinquent taxes will result in a lien on ___

the property on which she has not paid the taxes

In Illinois, the state transfer tax is:

computed on sales price less the amount of any existing mortgage to which the property remains subject.

In Illinois, which one of these needs to hold a real estate license?

a person who employs fewer than three apartment leasing agents.

how many days' advance notice is required to terminate a month to month tenancy in Illinois?

Illinois requires that listing agreements contain ___

an automatic expiration date or statement of client's right to terminate.

a homeowner decided to add a family room onto his house. An electrician was hired to wire the room but has not been paid. The electrician has the right to ___

record a notice of the mechanic's lien

a highrise apartment building burns to the ground. What type of insurance covers the landlord against the resulting loss of rent?

consequential loss, use, and occupancy

funds for FHA Loans are usually provided by?

qualified lenders

theft, smoke damage, and damage from fire are covered under which type of homeowners insurance policy?

basic form

If a property has encumbrances that will outlast the closing, the property ___

Can be sold if a buyer agrees to take it subject to the encumbrances

Which one of these factors tend to affect supply in the real estate market?

Government controls and financial policies.

Under what conditions is a disclosure of contemporaneous offers required?

When a buyer’s agent is acting as designated agent for more than one buyer interested in buying the same property.

At which step did title to the property actually transfer or pass to the woman? 1: Man decides to convey his property to a woman. 2: Man signed a deed transferring title to the woman. 3: Man gave the signed deed to the woman, who accepted it. 4: Woman took the deed to the county recorder’s office and had it recorded.

Step 3

Which of these types of deeds merely implies, but does not specifically warrant, that the grantor holds good title to the property?

Bargain and sale

Consummation May occur how many days after the issuance of the Closing Disclosure?

3 business days.

An appraiser who is asked to determine the value of an existing strip shopping center would probably give the most weight to which approach to value?

Income approach

Certain figures must be determined by an appraiser before value can be computed by the income approach. Which of these is not used by an appraiser applying the income approach to value?

Accrued depreciation

A real estate professional who performs a visual survey of a property and prepares an analytical report for a purchaser or owner is acting as___

A home inspector

Intent of the parties, method of Attachment, and agreement between the parties are the legal tests for determining whether an item is___

A fixture or personal property

Which of these best describes the economic characteristics of real estate?

Scarcity, improvements, and location

Illinois licensees are required to deliver true copies of all…

Executed sales contracts to the people who signed them within 24 hours.

Commingling such monies with the licensee’s personal or general business funds is illegal and will result…

In penalties for a licensee or sponsoring broker.

Termination of agency exists when…

Death of either party, expiration, destruction, breach