Pre Test Material

Question 1

The Federal Reserve Board

Answer 1

Establishes a discount rate of interest for the money it lends to its member banks

Question 2

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..?

Answer 2

A home inspector

Question 3

What best describes the economic characteristics of real estate?

Answer 3

Scarcity, improvements, location

Question 4

Parking spaces in multi unit buildings, water rights, and other improvements are classified as?

Answer 4

Appurtenances

Question 5

Home ownership tidbits

Answer 5

Cooperative- owners buy shares of stock
A community that merges housing, recreation, and commercial units into one self- contained development is called- PUD
High-Rise developments combining different elements into a community- MUD

Question 6

Home ownership tidbits

Answer 6

Cooperative- owners buy shares of stock
Retirement communities are usually structures as these- PUD
High-Rise developments combining different elements into a community- MUD

Question 7

Most common clause found in most homeowner insurance policies?

Answer 7

Co- insurance clause

Question 8

A seller listed his property with a local brokerage company. The agency relationship between the seller and the sponsoring broker is a

Answer 8

Special agency

Question 9

Which of these events will terminate an agency relationship between a broker and seller?

Answer 9

The owner declares personal bankruptcy

Question 10

In real estate transactions, the term fiduciary typically refers to the

Answer 10

Agents relationship and duty to the principal

Question 11

In Illinois, which of these is true concerning designated agency?

Answer 11

License law requires a licensee to disclose that a designated agency relationship exists

Question 12

A real estate licensee’s responsibility to keep the principal informed of all the facts that could affect a transaction is the duty of?

Answer 12

Disclosure

Question 13

Federal regulations on unsolicited email…

Answer 13

Require commercial emails to include a physical address, among other things, for the sender.

Question 14

A broker listed the sellers home for 300 K. Before the listing expired, the broker brought the seller a full price offer on the sellers terms contained no contingencies. The seller didn’t decide not to sell. Which of the following statements is true?

Answer 14

The seller probably is liable for the commission.

Question 15

In Illinois , what brokerage agreement must be in writing?

Answer 15

Exclusive broker agreements

Question 16

If the owner of real estate does not take action against a persistent trespass before the statutory period has passed, the trespasser may acquire:

Answer 16

An easement by prescription

Question 17

Encumbrances on real estate:

Answer 17

Include easements and encroachments

Question 18

Note to self.

Answer 18

Look into unit eight- ownership

Question 19

Illinois, legal description of land are usually based on the…

Answer 19

Rectangular survey system

Question 20

What type of lien affects all real property and personal property of a debtor?

Answer 20

General

Question 21

The first installment of the tax bill for all counties, except cook, is due on:

Answer 21

June 1

Question 22

Priority of liens refers to:

Answer 22

The order in which liens will be paid, if property is sold to satisfy the debt

Question 23

A contract with no legal affect because it lacks at least one essential element?

Answer 23

Void

Question 24

A contract that meets all the essential elements to make it enforceable?

Answer 24

Valid

Question 25

A contract that appears to be valid, but may be rescinded based on a legal principle?

Answer 25

Voidable

Question 26

A contract that seems valid, but cannot be enforced by either party;

Answer 26

Unenforceable

Question 27

What is the term used to add items or modify an existing will?

Answer 27

CODICIL

Question 28

Which of the following persons is the will testator?

Answer 28

The person who makes the will

Question 29

Which set of laws govern in a state with a grantor dies without a WILL, but with HEIRS?

Answer 29

Statute of decent and distribution

Question 30

The legal presumption that information can be obtained through diligent inquiry is called?

Answer 30

Constructive notice

Question 31

When a broker passes the license examination, the first proof of eligibility to engage in real estate activities a Illinois is a

Answer 31

Sponsor card

Question 32

All advertising by an affiliated licensee, must include the

Answer 32

Name of the licensees sponsoring broker

Question 33

Discount points on a mortgage are computed as a percentage of the

Answer 33

Loan amount

Question 34

After a mortgagor makes the final payment, the mortgagee would give the mortgagor a

Answer 34

Satisfaction of mortgage

Question 35

In Illinois, how long does a mortgagor have to exercise his right of reinstatement?

Answer 35

Up to 90 days after service of summons

Question 36

In the city zoning regulations limit developers to constructing no more than four houses per acre in any subdivision. this legislation is intended to regulate..

Answer 36

Gross density

Question 37

The method of sealing off disintegrated asbestos is known as:

Answer 37

Encapsulation

Question 38

Under the mortgage disclosure, improvement act, a lender must extend the closing how many days if the APR is increase before closing?

Answer 38

3