Quizzes Flashcards
(528 cards)
1
Q
The Buyers interest under a contract of sale is?
A
Equitable title
2
Q
What concept gives a vendee the right to sue the vendor for specific performance on a signed contract?
A
Equitble title
3
Q
The contract of sale is also known as the:
A
Buy-Sell
4
Q
The seller in a buy-sell contract situation is the:
A
VenDOR
5
Q
The Vendee has:
A
Equitable title
6
Q
A seller who defaults on a buy-sell may be forced to sell by being sued for:
A
Specific performance
7
Q
Equitable title Gives the buyer the right to:
A
sue the seller for specific performance
8
Q
If a potential buyer suspects that a listed property may have once been an oil refinery, the buyer should:
A
Include an environmental audit contingency provision in the offer
9
Q
To be enforceable, a buy-sell must contain:
A
at least an accurate description of the property
10
Q
a buy-sell obligates:
A
the seller to sell and buyer to buy
11
Q
any person, including a real estate agent, may sign a buy/sell on behalf of either the seller or buyer if the seller or buyer has granted a/an?
A
power of attorney
12
Q
a buy/sell which specifies that it is subject to a survey is an example of a contract with a/an?
A
Contingency
13
Q
a stipulation in a contract for the purchase of a commercial building makes the purchaser ‘s obligation dependent upon obtaining a specific amount of lender financing
A
the purchaser is obligated to make reasonable efforts to obtain the financing
14
Q
the title search is most likely going to be done by the:
A
title company
15
Q
the document issued by the title company (abstractor) which first reveals to the buyer existing clouds on the title
A
title commitment
16
Q
An advantage of an “extended coverage” title policy is that it may be used to provide coverage for:
A
Survey issues
17
Q
Title insurance is usually paid for by:
A
the seller
18
Q
an abstract of title contains references to deeds, easements, and mortgages only if they are:
A
recorded
19
Q
A leaky roof would be covered by:
A
A home warranty
20
Q
The general warranty deed is also known as a:
A
Warranty Deed
21
Q
Which deed provides the best protection for a buyer?
A
General Warranty
22
Q
Which deed gives no guarantees but transfers whatever ownership interest the grantor has?
A
Quitclaim deed
23
Q
The deed most commonly used in America for both residential and commercial transactions is the :
A
Warranty Deed
24
Q
What document is generally used to transfer ownership of personal property?
A
Bill of sale
25
Which deed guarantees that title is marketable?
General Warranty deed
26
The covenants of quiet enjoyment and further assurances are found in which deed?
General Warranty Deed
27
When selling housing, most developers use a :
General Warranty deed
28
The appropriate deed for a charitable donation is a:
Quitclaim deed
29
A valid deed requires each of the following EXCEPT:
Actual purchase price OR Signature of the Grantee
30
A valid deed must have:
The Grantee's name
31
The Document evidencing the end of one persons ownership and the initiation of another persons ownership is the:
deed
32
Which covenant in a general warranty deed guarantees that the seller was the owner of the property and thus had the right to convey title?
Seisin
33
A quitclaim deed Conveys the same title as:
would be conveyed by a general warranty deed
34
Information available in the public records refers to:
Constructive notice
35
Information gained from personal observation or communication is:
Actual notice
36
Unrecorded deeds Are:
effective between the parties
37
Recording Creates:
priority
38
A buyer becomes the owner when the deed is:
Delivered to the grantee
39
In most states, real estate documents are recorded in the office of the:
County clerk and recorder
40
An authentication of a document made by signing the document under oath before a public official is known as:
Acknowledgment
41
Which document would NOT be recorded?
A salespersons employment contract with broker
42
A persons right to exceed those of the owner of record because the person has occupied the property for a long period of time. This appears to be an example of:
Adverse possession
43
Adverse possession is an example of the transfer of title to real property by:
Abandonment
44
Under adverse possession, an occupant may:
Aquire title
45
The process of governmental taking of private property is:
Condemnation
46
The power of the government to take private property is:
Eminent domain
47
A city wants to acquire right of way from private owners. The right of the city to do this is:
Eminent domain
48
A utility may force the sale of private property by:
Eminent domain
49
Without receiving any compensation, the transfer of privately owned property to the government is known as:
Dedication
50
If the identity of a property's owner is unknown, the property reverts to the state government by the power of:
escheat
51
Just compensation must be paid for property transferred by:
Eminent domain
52
Which document would most likely contain a legal description of the property?
mortgage
53
Which document is most likely to be recorded?
mortgage
54
the mortgage borrower is referred to as the :
MortgagOR
55
The mortgage secures the:
note
56
the best evidence of the debt and promise to pay is the:
negotiable mortgage note
57
A mortgage is an example of a:
voluntary lien
58
Which document pledges property as security for a debt?
mortgage
59
A mortgage pledges property to:
secure a debt
60
A mortgage is used to defer:
part or full payment
61
If there is more than one mortgage, the priority of the mortgages is determined by the date that:
each is recorded
62
A mortgage must be signed by the:
MortgagOR
63
Which document personally obligates the borrower to repay the loan?
mortgage note
64
which mortgage clause grants priority to a later mortgage?
subordination clause
65
the priority of liens may be changed by a/an:
subordination clause
66
A subordination clause changes:
foreclosure rights
67
Which clause states: "The balance is due and payable upon default?"
acceleration clause
68
Which clause states: "The balance is due and payable upon sale?"
alienation clause or due at sale
69
The deed used when a defaulting mortgagor transfers the mortgaged property to the mortgagee to avoid a court foreclosure sale is known as a:
deed in lieu of foreclosure
70
Anyone signing a mortgage on behalf of an organization ( such as a business entity or charity) should insist on:
non recourse financing
71
A power of sale clause Allows a lender to:
foreclose without a court hearing
72
The deed which requires court approval is the:
Sheriff's deed
73
When a mortgage note is paid in full, the title will be cleared by:
A certificate of discharge
74
The defeasance clause is initiated when the mortgagor:
pays off the loan
75
Prior to foreclosure sale, the mortgagor has:
an equitable right of redemption
76
After a foreclosure sale, the prior owner has:
A statutory right of redemption
77
A purchased a new home and financed the transaction at fidelity mortgage company. A defaulted and fidelity foreclosed. Unfortunately, the property did not sell for enough to pay off the balance due on the note. is A liable for the deficiency?
Yes, because A still owes the balance of the note
78
A mortgage creates a lien in favor of the mortgagee but does not:
transfer title to the mortgagee
79
If the seller keeps title until the purchase price has been paid, the parties have a:
land contract or contract for deed
80
Payment of all or part of the purchase price is deferred with which of the following?
Contract for deed or mortgage
81
The seller under a contract for deed ( installment land contract) retains:
title
82
The purchaser under a contract for deed is the:
VenDEE
83
A buyer bought a home using a contract for deed. If the last payment has not yet been made, the buyer:
may list and sell her equity
84
The buyer under an installment land contract (contract for deed) usually wants:
possession before making the last payment
85
Who wants the contract for deed to be recorded immediately?
the buyer
86
Under a contract for deed, the buyers default usually results in:
The forfeiture of all payments made
87
What interest does the seller have under a contract for deed?
title
88
Under a contract for deed, the buyer gets equitable title when:
the contract for deed is signed
89
Under a contract for deed, the buyer gets title when:
The final payment is made
90
Judgment liens are created by:
Lawsuits
91
A lis pendens provides notice that:
a judgment lien may occur
92
Judgment liens may arise from:
a lawsuit in state or federal court
93
To determine weather a property is involved in litigation, such as foreclosure, look for:
a lis pendens
94
A contractor who has not been paid may file a:
Specific lien
95
The recording of a homestead exemption form could protect a homeowner from:
a judgement lien involving failure to pay a hospital bill
96
The priority between liens may be changed by:
a subordination agreement
97
Tax liens are statutory liens which may lead to a:
tax foreclosure sale with an equitable right of redemption
98
A judgment could cause a debtor to lose his:
house, furniture, jewelry, and other property
99
Which lien has highest priority?
unrecorded tax lien
100
The best protection from a mechanics lien is provided by a contractors:
bond
101
Which lien is voluntary?
mortgage
102
Two mortgages, three construction liens, and a tax lien encumber the title of a parcel. The priority among the liens is determined by:
the type of lien
103
Which liens apply to both real and personal property?
judgment liens
104
A contractor has not been paid for erecting a new building for a car dealer. The contractor may file a mechanics lien against:
the building only
105
Easements, liens and restrictive covenants are:
encumbrances
106
Easements run with the land even if:
Ownership changes
107
The difference between a deed and an easement is that:
a deed conveys title but an easement conveys only a right
108
An easement was recorded on a plat mp in 1886. The easement has never been used. The property has been sold several times. Is the easement still enforceable?
yes, because easements run with the land
109
An appurtenance is a right which:
transfers with the land
110
Each of the following runs with the land if the property is conveyed EXCEPT:
a license
111
Retaining a right to place a commercial billboard on a property is an example of:
an easement in gross
112
Which may be terminated at any time?
license
113
An easement appurtenant:
runs with the land
114
A survey would assist a property owner in:
constructing driveways and other appurtenances
115
Which is the best example of an appurtenance?
A tree
116
Restrictions are land-use controls which:
limit the future use of the land and improvements
117
Private land-use controls are enforced by:
court injunctions
118
Unless there is prompt enforcement, a deed restriction may become unenforceable due to:
laches
119
Restrictive covenants are intended to:
limit the property's future use
120
Is it legal for a seller to enforce the standard old restrictive covenant prohibiting occupancy by minorities?
No, because such restrictive covenants are not legally enforceable
121
B gave a parcel of property to her daughter. At the time of the transfer, B placed a restrictive covenant on the property. Can B later waive the restrictive covenant?
Yes
122
A restrictive covenant will most likely be enforceable by only the:
Owners of property within the subdivision
123
A restrictive covenant is created by:
a contract for deed
124
A condition differs from a restrictive covenant in that a violation of a condition results in:
forfeiture of the property
125
If more than one party claims to be the owner, the parties should ask a court to:
quiet title
126
Which deed is most commonly used to clear clouds on the title?
Quitclaim deed
127
What are the two ways to clear up a claim or cloud on the title?
Quitclaim deed and quiet title action
128
Can a trust deed be used to clear up a cloud on the title?
No, because a trust deed is a type of mortgage and the trust deed further clouds the title
129
If title to the property is not marketable:
The property may be sold anyway
130
A buyer would most likely conduct a quiet title action if:
A third party claims an interest in the property
131
A seller signed a deed with her married name rather than using the maiden name by which she had originally purchased the property- this creates:
A cloud when recorded
132
If there is a cloud on the title and the owner is unable to successfully negotiate for a quitclaim deed, the owner should file a lawsuit which is known as a:
Quiet title action
133
Which deed cannot be used to clear up clouds on the title?
trust deed
134
After occupying a property for the statutory period required for adverse possession, what should the adverse possessor do to clear up the title?
file a quiet title action
135
Building codes regulate reach of the following EXCEPT:
Property use
136
A neighborhood is going to be rezoned from residential to commercial. If you own the only vacant corner lot in the residential area, the value of your vacant corner lot will likely:
increase
137
What protects existing business owners from having to conform when zoning changes from commercial to residential?
nonconforming use
138
A Baskin Robins ice cream store is a nonconforming use in a residentially zoned area. The business is destroyed by fire. can it be rebuilt as an ice cream store?
No, the stores nonconforming use is terminated by the destruction of the property
139
Zoning would most likely regulate the:
setback
140
Property taxes are an exercise of:
the police power
141
An apartment house was built in an unzoned area. If the apartment house is later zoned single-family residential, the owner must:
Do nothing because the owner automatically has a nonconforming use
142
Before residentially subdividing a parcel of bare ground, the developer should first:
Check the density allowed by the city residential zoning regulations
143
A wants to build a pizza restaurant on a vacant lot but the setbacks won't permit A to construct the restaurant. To resolve the problem, A should get a :
Variance or conditional use permit
144
The use of a planned unit development (cluster housing project) may be used to:
alter setback and density
145
State and local governmental regulation of real estate construction and transactions is done under the:
police power
146
The government protects consumers from shoddy home construction practices through the use of:
building codes
147
The licensing of real estate agents and the requirement of a trust account are examples of:
police power
148
Restrictive covenants are a:
private land use restriction
149
A contract of sale is signed by both parties. Prior to closing, the zoning changes and the property is now worth substantially more than the contract price. The contract of sale is:
Enforceable because there was no zoning
150
Assume that the restrictive covenants and the city zoning ordinance have different rules regarding maximum fence heights. The property owner should:
comply with both, thus, the most limiting of the two controls
151
Z and A signed a contract for sale for Z to purchase A's bar and restaurant. Just days prior to closing, the city rezoned the property to residential use only. The contact of sale is:
still enforceable because there was no zoning contingency clause
152
If two unmarried persons own a parcel property. They are presumed to be:
tenants in common
153
ownership by one person is called:
severalty
154
If the last survivor will always take title, the parties are:
joint tenants
155
A property owned in a tenancy by the severalties could be owned by:
one person
156
A deed states that the grantees are "Gary Jung" and "Ron Zier" but the deed failed to state what type of tenancy was intended. There is a statutory presumption that the two owners are:
tenants in common
157
When asked by the buyers whether to hold title as joint tenants or tenants in common, the broker should recommend:
seeking the advice of a lawyer
158
A, B and C are joint tenants. C dies with a will designating an heir. C's interest will go to:
A and B
159
Two buyers prefer to own their property with no right of survivorship. This is:
A tenancy in common
160
Riparian ( water) and mineral rights:
run with the land unless otherwise agreed
161
A, B and C are joint tenants. C sells her 1/3 to D. Which is correct:
A and B are joint tenants and D is a tenant in common
162
Surviving wives have a right called:
Dower
163
Surviving husbands have a right called:
Curtesy right
164
Which of the following indicates that the owner of the interest has the right to convey ownership of the property:
fee simple
165
A life estate for the life of another is:
pur autre vie
166
A transfers a life estate to B but A will get the property back when B dies. This is a life estate with a:
reversionary interest
167
Sam has a remainder interest in his mothers farm. His mother is living in a rest home. Can Sam sell his interest?
Yes, and the buyer will then own the farm when Sam's mother dies
168
A transfers a life estate to B with a reversionary estate. B dies with a will naming the state government as B' heir. Who gets the property?
A
169
The remainder will get a particular house when the life tenant dies. Axel desires to purchase the house and have fee simple title with an immediate right of possession. Axel should:
purchase the interests of the life tenant and remainder
170
The university purchased a home from Mr. Prescott. The deed specifies that Mr. Prescott could occupy the property as an owner for the rest of his life. But upon death, the university would become the sole owner. Prescott's deed conveyed what interest to the university:
A remainder interest
171
A deeded a parcel of property to B. With the property to go to B's heirs upon B's death. In this situation:
A is the grantOR, B has the remainder interest, and B's heirs have a revisionary interest.
172
A condominium involves A combination of:
fee simple ownership of each unit and a tenancy in common ownership of the common elements
173
A cooperative involves:
A leasehold interest in the unit and personal property interest in a share of stock
174
Which of the following is a condo "limited" common element?
an assigned parking spot
175
A condo owner sells by transferring a:
deed
176
The owner of a cooperative unit sells by transferring a:
share of stock
177
Assume the owner of several condo units have not paid their assessments for property taxes. Those units may be:
foreclosed upon separately from the other units
178
Assume that a cooperative has not paid its property taxes. This may result in:
a foreclosure of the entire cooperative complex
179
A new buyer has no liability for an existing mortgage when purchasing mortgaged property that is:
subject to the mortgage
180
A buyer purchased mortgaged property subject to an existing mortgage. The mortgage was foreclosed upon. Who Is liable for the deficiency?
the seller only
181
A buyer purchased mortgaged property and becomes personally liable. This is an example of:
an assumption
182
In which situation is a mortgagor released when mortgaged property is sold?
an assumption with a novation
183
An assumption with a novation is known as a/an:
full assumption
184
Which mortgage clause requires the balance to be paid in full when the property is conveyed?
alienation clause ( due on sale)
185
Which mortgage clause prevents a later purchaser from assuming the loan?
due on sale clause ( alienation )
186
Which clause is contained only in non assumable mortgages?
Alienation ( due on sale)
187
Which clause refers to the first step to be taken prior to foreclosure?
acceleration clause
188
An alienation clause may require which of the following to be paid in full when the property is sold?
the balance owning on the mortgage
189
If a mortgagor sells to a new buyer who takes over the payments on the old mortgage, what releases the mortgagor from liability?
novation
190
An offer from the seller back to the buyer in an?
counteroffer
191
A buyer offered 45,000 for a lot listed for 50,000. The seller counteroffer at 49,000. The buyer made an offer of 47,500. The seller rejected the offer. Several days later, the seller notified the buyer that the seller was accepting the 47,500 offer. This means:
No contract was created
192
A contract is created when the:
buyer is notified of the seller's signed written acceptance of the offer
193
Prior to closing, the buyer learns that the zoning has been changed in such a way that the property is more valuable. The contract is:
enforceable
194
A buyer offered to buy a property for 50,000. The seller wrote back saying she would sell for 60,000. The sellers letter is:
a counteroffer and a rejection of the buyers offer
195
What does a counteroffer do to the original offer?
terminates it
196
A buyer makes an offer for 50,000. The seller changed the price to 55,000 and signed the document. The seller is now the:
offeror
197
May the broker accept full terms and a price offer for the seller?
yes, but only if the broker has a power of attorney
198
A buyer has delivered an offer to a seller. The seller may accept the offer by:
notifying the buyers agent
199
A promise for a promise is:
Bilateral
200
Every unilateral contract involves:
a promise for performance
201
The difference between unilateral and bilateral contracts is:
A performance obligation is required to create a unilateral contract, whereas multiple promises are exchanged to create a bilateral contract
202
A valid contract requires:
mutual consideration
203
Why is consideration required?
to satisfy the requirement of mutual obligations
204
Contracts of sale require:
consideration
205
On the day of closing, the seller agreed to lower the agreed selling price from 300,000 to 275,000. The 275,000 written agreement is not enforceable due to:
lack of consideration
206
A contract to purchase commercial property requires:
consideration
207
The statue of frauds requires real estate contracts of sale to be:
reduced to writing
208
A written contract is an example of a contract which is:
expressed
209
ALL written contacts are:
expressed
210
A contract which is notarized is:
acknowledged
211
A buyer signed a contract of sale but overlooked a clause which was clearly detrimental. Is the clause binding?
yes, because the buyer agreed to the terms of the contract
212
The seller orally agreed to leave the 4,000 lawnmower with the property. The written contract did not mention the mower. The buyer sued to obtain the mower and will:
lose because of the parol evidence rule
213
Two parties negotiate for the sale of a hardware store. The final agreement was reached through the use of two handwritten and signed letters. The letters:
satisfy the statue of frauds requirement that the agreement be written
214
A minor's contract to purchase land from an adult is voidable by:
the buyer only
215
When dealing with an insane person, it is best to:
deal with the insane persons court appointed guardian
216
If a buyer becomes insane two weeks after signing a real estate purchase contract:
the seller may sue the buyers guardian for specific performance to force performance on the contract
217
A minors real estate sales contract is:
voidable by the minor due to the minors incompetency
218
A buyer who has purchased land as a minor has recently reached the age of majority. The buyer is under the impression that the buyer may still cancel the contract and seek the return of the purchase price paid. The buyer may:
rescind within a reasonable time after reaching the age of majority
219
Intentional concealment for misrepresentation of material facts is:
fraud
220
A brokers statement that a fairly ordinary home h as a "lovely floor plan and a charming exterior" is referred to under contract law as:
puffing
221
If fraudulent misrepresentation is present, a real estate contract is:
voidable
222
A contract signed under duress is:
voidable
223
Stating that a 20 year old house is "new" is an example of:
fraudulent misrepresentation
224
A buyer who is uncertain of his ability to obtain financing should include in the contract:
a financing contingency provision
225
A contract where all requirements have been performed by each party is:
executed
226
Annulling a contract to restore the parties to their original positions is known as:
rescission
227
Asking the court to compel the other party to sell or buy under the terms of a contract of sale is:
specific performance
228
Which provision should be in the contract of purchase if the owner must close by December 31st for tax purposes?
time is of the essence
229
An agreement predetermining the amount of money to be paid if one party breaches a contract is:
liquidated damages
230
Which is not included in the individuals "bundle" of rights?
condemnation
231
Legally, who is required to pay for the survey and property inspection?
it is negotiable between the buyer and seller
232
Options are:
unilateral
233
If a tenant has a right of first refusal, the tenant:
can exercise the right only if the lessor decides to sell the property during the lease period
234
In a right if first refusal, what determines the selling price?
the market price at the time the property is placed for sale
235
A right of first refusal in a tenants lease:
is no longer binding if the landlord decides not to place the property on the market during the lease term
236
In an option situation, the buyer is the:
optioNEE
237
A contract gives the buyer the right to buy the property if he can obtain financing within 29 days. This contract is:
an option
238
The person who pays for an option is the:
optioNEE
239
In an option situation, who may be sued for default?
optioNOR
240
If an option isn't exercised, the:
Optionor may keep the option money
241
Which is always true of an option?
It must be written and signed to be enforceable
242
If an option is not exercised, who takes the option money?
optionOR
243
An offer which states that it will be held open for 3 days may be:
withdrawn any time prior to acceptance
244
the purchase price under the right of first refusal is determined by:
the market when the property is offered for sale
245
The lessors right of possession after the lease is a:
reversionary right
246
Does a tenant need consent of the landlord to assign a lease?
No, the tenant is presumed to be able to assign the lease unless the lease specifically prohibits assignments
247
Each is a tenant's interest EXCEPT:
leased fee
248
A tenant farmer can't move into her newly leased farm because the old tenant is still living there and planted new crops and remodeled the farm house. The old tenant refuses to leave. The landlord violated the lease covenant of:
quiet enjoyment
249
A lease is terminated by:
death of NEITHER the lessor or the lessee
250
What happens to a one year residential lease when the landlord sells the home?
nothing
251
The landlords interest is:
freehold
252
Who has the freehold interest?
lessOR
253
An assignment is a transfer of:
All of the rest of the lease.
254
When a leased property is sold the buyer:
has no right to take possession until the lease expires
255
Who pays the operating expenses under a triple net lease?
the lessEE
256
A tenant pays only part of the operating expenses under a:
net lease
257
In addition to paying 750/month rent, a tenant is required to pay 10.2% of the property's maintenance, utility, and tax expenses. This is a:
net lease
258
A lease where the landlord pays all taxes, insurance and maintenance and the tenant pays only rent is:
gross lease
259
Business tenants are often short of cash when they start their businesses. To make a property appealing to such start-up business tenants, the property manager should offer which type of lease?
graduated
260
Which clause in percentage lease allows a landlord to cancel a lease if t he tenant's business is not as successful as expected?
recapture
261
To ensure that future rental rates will be able to keep pace with inflation, a landlord should insist upon:
a step up lease
262
A percentage lease is one where the tenant pays a percentage of:
the tenants gross income
263
Which legal document is used to convey an ownership interest in personal property?
bill of sale
264
Another name for personal property is:
chattel
265
A tenant farmer's right to come back after the lease expires and harvest growing crops is known as:
an emballement, which is a personal property right, that is, a chattel
266
Which of the following is NOT real property?
trade fixtures
267
Permanent additions to property are:
improvements
268
Fixtures are:
part of the real estate
269
A tenant installs counters and shelves in a store. The trade fixtures are:
removable by the tenant any time prior to expiration of the lease
270
A window air conditioner is a/an:
chattel
271
A home's new furnace is:
an appurtenance
272
A tenant farmer plants an annual crop. The crop is:
an emballement which is the tenants personal property
273
A home's garage door opener remote control is:
a fixture that must be left with the buyer at closing.
274
Appurtenances include:
property improvements
275
A new furnace installed by the property owner is a:
fixture
276
grass is considered an:
appurtenance
277
The lowest estate in real property is the:
estate at sufferance
278
How much notice to terminate must be given by a tenant with an estate for years for one week?
none
279
A holdover tenant has as:
estate at sufferance
280
A 6 month lease is a:
tenancy for years
281
A lease from Saturday to Friday is a:
tenancy for years
282
A tenant who fails to move out after termination of a lease has a:
tenancy by sufferance
283
How much notice must be given to terminate a 1 year lease?
none
284
After a lease expired, the lessor allows the lessee to remain by paying rent until either the lessor finds a new tenant or the old tenant finds another rental. During the negotiations, the lessee now has a:
tenancy at will
285
A tenant moves because the property has a leaky roof and inadequate wiring. This is:
a constructive eviction
286
A foreclosure on an apartment building will not affect any of the leases if the mortgage contains a:
non disturbance clause
287
A lease is terminated by:
condemnation
288
A lessee with a commercial lease dies. The lease:
is not terminated by the death of the lessee and the lessee's estate/heirs are obligated for the rent
289
Which of these refers to the owner of a non freehold estate?
lessee
290
An agency relationship exists between the:
principal and broker
291
A broker supplies the financing for a condo development, provided the developer agrees to give the broker an exclusive listing to sell the completed units. The broker is known as a:
Agent coupled with an interest
292
A listing is also known as:
an employment contract
293
Who is liable if a broker obeys the sellers instructions to hide defects ?
both the seller and the broker
294
When asked by a client about a defect, the broker remained silent even though the broker knew of the defect. This is:
A breach of the law of agency
295
When asked by a customer about a defect, the broker remained silent even though the broker knew of the defect. This is:
fraudulent misrepresentation
296
An agent owes a customer/prospect which duties?
honesty, no misrepresentation, disclosure of defects
297
An E and O (Error and Omissions) covers:
a brokers professional negligence
298
If a broker receives multiple offers on a listed property, the broker should present to the seller:
all offers
299
The listing broker may purchase the listed property only if:
full disclosure of the purchase is made to the listing principal
300
A sellers agent may tell the buyer about:
hidden defects in the property
301
A broker who fails to submit to the seller any offers below asking price:
violates fiduciary duties
302
theft of money is covered by:
fidelity bonds
303
If the broker receives an offer but anticipates several more offers, the broker should:
present the offer and tell the seller that more offers are likely
304
The seller asks about the race of the buyer. The listing broker refuses to answer. The broker:
did not violate any fiduciary obligation because the buyers race is not material
305
If the buyer asks if the seller will take less than the 200,000 listed price, the broker should respond:
"it is listed for 200,000 but I will take all offers to the seller."
306
The owner wants to list at 60,000 but the broker knows that the property is worth much more. The agent should:
disclose the property value to the owner
307
If a property manager learns that a tenant is dealing in illegal drugs, the property manager should:
disclose this information to the owner
308
A broker must disclose to the principal seller that:
the buyer ( who needs seller financing) has a less than desirable credit history
309
If the buyer has no money for an earnest money deposit but is able to sign a 5,000 negotiable note instead of using cash. The real estate agent should:
notify the seller that the buyer has put earnest money in the form of a negotiable note
310
A salesperson should disclose to the seller the:
neighbors house has a sinkhole problem
311
Defects which are not apparent are referred to as:
latent defects
312
An "as is" clause in a contract of sale indicated that:
there are no warranties regarding defects
313
A broker learns about a zone change which may have a substantial effect on the property value. Must the broker inform the seller?
yes
314
The owner dies before the listing broker is able to present a full terms offer. Is the broker entitled to a commission for having found a ready, willing and able buyer at the listed terms?
No
315
Which terminates a listing?
the property is condemned
316
Which will NOT terminate a listing?
the property fails a termite inspection or the buyer defaults
317
Death of a listing seller:
automatically terminates the listing
318
When a listed property is destroyed by fire, the listing:
automatically terminates
319
The listed property was sold at a foreclosure sale. Is the broker entitled to a commission?
No, the broker did not find a ready, willing and able buyer prior to the foreclosure
320
A six day listing creates:
a special agency
321
A property manager is a:
general agent
322
A broker may sign a contract of sale for the seller if the :
broker has a power of attorney
323
An agent hired to perform a particular task is a:
special agent
324
A guardian is an example of a
universal agent
325
Under exclusive agency listings, the broker is paid:
if anyone other than the owner sells the property
326
Which is true of the brokers motivation to spend her money to advertise the property in hopes of getting a commission?
the exclusive right to sell provides more incentive than any other listing
327
Which listing requires the broker to be the procuring cause of the sale to be entitled to a commission?
open
328
Under which listing does the broker have the least motivation to find a buyer because of there is less certainty of a commission?
open
329
Under an exclusive agency listing, the listing broker is entitled to be paid if the:
property is sold by another firm
330
The only listing which entitles the broker to a commission no matter who sells the property is the:
exclusive right to sell
331
A salespersons payment is determined by:
a contract with the employing broker
332
Two real estate firms agree to divide the market with one firm taking only residential sales and the other taking only commercial sales. The two firms agree not to deal with the only other firm in town. This violates:
the Sherman act's antitrust and boycotting
333
A salesperson may only collect her commission from:
her employing broker
334
A broker wants to charge a flat fee commission. This is:
Illegal
335
Commissions are set by the :
seller and broker
336
A ready, willing and able buyer makes a full price offer, the broker who listed the property is:
entitled to a commission
337
If a salesperson is paid an annual salary, the broker must send the salesperson a:
W-2 form
338
A broker who doesn't withhold the salespersons taxes, pay a salary, or pay FICA for the salesperson must have:
a tax status agreement with the salesperson
339
Who is not on a salary and receives a 1099 form?
indépendant contractor
340
A salesperson is paid on a salaried basis and has vacation, retirement and workers comp benefits. In addition, the salesperson works 8-5. The salesperson appears to also be an:
employee
341
With buyer agency, the prospect or customer is the:
Seller
342
A broker may tell the buyer that the seller will take less than listed price if the broker is a:
buyers agent
343
A salesperson is an agent of:
The salespersons employing broker
344
Under seller agency, the prospect or customer is the :
buyer
345
under buyer agency, the seller is the :
brokers customer
346
Under the typical buyer agency agreement, the broker is the agent of:
the buyer only
347
A salesperson may show:
all properties listed with the firm
348
A salesperson is an agent of the:
employing broker
349
Placing earnest money in the office general account is:
commingling
350
State real estate license laws do NOT regulate:
commission disputes
351
A buyer should be given a copy of the buyers offer:
immediately after the buyer signs it
352
Earnest money is:
not required by state or federal law
353
A real estate agent cannot legally inform a client about:
the quality of the property's title
354
When showing a listed commercial property, the broker must disclose to the buyer:
the property's latent defects
355
A buyer made an offer which included 50,000 earnest money. the earnest money is in the form of a negotiable note. The listing broker should:
inform the seller that the earnest money is in the form of a negotiable note
356
A securities license is required to sell:
shares of stock or limited partnership interests
357
Sales of interstate securities are most likely registered under:
Securities Exchange Commission
358
Sales of intrastate securities are regulated by the:
state of blue sky laws
359
Which of the following requires a securities license?
selling stock
360
The sale of an investment security should be handled by a:
licensed securities dealer
361
An investor who wants to shield personal assets from business creditors would prefer any of these EXCEPT:
general partnership
362
The metes and bound form of land description uses:
the point of beginning
363
A township contains how many square miles?
36
364
A plat map is used in which type of legal description?
lot, block and subdivision
365
The point of beginning is associated with:
A metes and bounds description
366
Which of the following methods of legal land description would most likely be used to describe agricultural lands?
government survey
367
A survey would reveal all of the following about a property EXCEPT:
a license
368
Which of the following best describes a plat?
it is a document used to record the subdivision of land
369
The voluntary giving of land for public use by an owner is:
dedication
370
The right of ingress and egress over the land of another person is called an:
easement
371
A survey would reveal all of the following about a property EXCEPT:
the water rights reserved by a previous owner
372
The US government survey uses all of the following EXCEPT:
lots and blocks
373
Which form of legal land description uses measures of definite distances in indicated directions?
metes and bounds
374
The three methods used to legally describe land are:
recorded plat, us government survey and metes and bounds
375
A column of townships running north and south is called a:
range
376
Which form of legal land description describes a parcel by enclosing it?
metes and bounds
377
in zoning, the distance from the street to the front of a house is called a:
setback
378
The length of the front of a lot on the street is referred to as the lots:
front footage
379
A land owner is contemplating building a septic tank sewer system on his lot. What test would determine the grounds ability to absorb water?
a percolation test
380
Which method of land description would describe an irregular piece of property?
metes and bounds
381
The permanent receding of water increases the land owners property by:
reliction
382
What is the most important reason for a lender to require a survey before making a loan?
to make sure improvements are constructed on the mortgaged lot
383
What do you call the process by which a land owner loses land by a sudden or violent act of nature?
Avulsion
384
A property owner on a river or creek is said to have which type of rights?
Riparian
385
What is the process by which a landowner increases his property due to the accumulation of alluvial deposits washed on to his property from other properties?
Accretion
386
A residence that has a bathroom but no tub would be said to suffer from:
functional obsolescence
387
The four characteristics of land value are:
Demand, Utility, Scarcity, and Transferability DUST
388
When appraising a rental property, the appraiser should emphasize which of the following?
the income approach
389
The capitalization approach is best used in determining the value of:
an income producing property
390
When appraising a 20 year old residential home, the appraiser should emphasize which of the following:
the selling prices of similar properties
391
A shopping mall developer buys three adjoining lots creating a single parcel. This is an example of:
Assemblage
392
A shopping mall developer buys three adjoining lots creating a single parcel. The increased value is called:
Plottage
393
All of the following are operating expenses EXCEPT:
vacancies and lost rent
394
Which of the following is true about depreciation in appraisal?
it is a real loss in value
395
The principal that assumes that property values are highest in neighborhoods where houses are similar in design, construction, and size, is known as the principal of:
conformity
396
When appraising an income producing property, which of the following is the MOST important consideration?
the net operating income
397
Which of the following appraisal methods would be best when appraising a residential property?
market data
398
Which of the following would an appraiser use to estimate the value of a vacant lot?
market data
399
If an appraiser was appraising a school building, a church or a library which method would he use most heavily?
Cost
400
All of the following are physical characteristics of value of land EXCEPT:
Demand
401
When an appraiser is estimating the square footage in a building the appraiser would use:
outside dimensions
402
if demand for an apartment is less than the available units for rent in the area, the market would be referred to as a:
Buyer's market
403
When using the cost approach to appraisal. The appraiser has found that while the subject property is in excellent condition, the neighborhood is made up of poorly maintained properties. This loss in value would be called:
Economic obsolescence
404
Capitalization would best be used in which of the following circumstances?
When the appraiser is using the income approach to appraisal
405
When using the direct sales comparison or market data approach to appraisal, if you had three comparables with different prices which would you emphasize?
the one most similar to the subject property
406
Using land to its greatest economic advantage is called:
highest and best use
407
What income is used by the appraiser when estimating value of an investment property?
net operating income
408
The single most important factor affecting the value of a property is the:
location
409
The best evidence for justifying the price of a house is:
the appraised value determined by a qualified appraiser
410
The appraisal concept that assumes the value of an improvement is not what it costs but what it adds to the value of the property is the principal of:
Contribution
411
In a market where the demand exceeds the supply for single family homes economists would refer to the condition as a:
Sellers market
412
the existence of a "fair market" in which a willing buyer is in no hurry to buy, buys a property from a seller under no duress to sell is called a:
arms length transaction
413
Economic rent is:
the rent that real estate can command in an open and competitive market
414
Lenders require an appraisal to make sure the:
value of the property is high enough to secure a loan
415
Determining the present value of a property's future income is what an appraiser does when using which approach to value?
Capitalization approach
416
which of the following items is not part of the profit and loss (income) statement?
liabilities
417
Which appraisal report would give the client the most information?
a narrative report
418
A property maintains its maximum value in a neighborhood of similar houses and residents according to the principal of:
conformity
419
If a property satisfies human needs, gives a monetary return or other satisfaction it is said to have value created by:
Utility
420
An appraiser should first consider which of the following when making an appraisal?
highest and best use
421
A property manager always works in the best interest of which of the following parties?
the owner or principal
422
A properly written property management agreement should include all of the following EXCEPT:
the operating budget for the property
423
A property manager has subtracted the losses for vacancies and collection losses from the scheduled gross rental income. The resulting figure is:
gross effective income
424
If the property manager suspected one of the tenants was carrying out an illegal activity in the managed building they should:
notify the owner of their concerns
425
A property management agreement would include all of the following EXCEPT:
the appraised value of the property
426
A property manager should know that an effective method of avoiding tenant problems with a rental property is to use:
A standard lease with specific rules and regulations
427
When should a property manager qualify a rental prospect?
before a rental agreement is signed
428
A property manager screens likely tenants to:
see if they can afford the rent
429
Property managers save money in clean up costs by:
retaining long tern tenants
430
The property management agreement should include:
how often the manager will report to the owner
431
factors such as the area to be maintained, availability of skilled help, and the skills and knowledge of the property manager would be considered when:
determining whether to contract for outside maintenance services
432
How are property managers paid?
on a percentage of gross or net rent, or an hourly or fixed fee if agreeable to both parties
433
Encouraging people to sell by telling them that minorities are moving in is?
blockbusting
434
Hiring a catholic salesperson to deal only with catholic customers violates what law?
Federal Fair Housing act of 1968
435
Limiting the neighborhoods in which properties are shown because of the race of the particular buyer is:
steering
436
A lender that refuses to provide mortgage funds in a particular ethnic neighborhood is guilty of:
redlining
437
Telling owners in an ethnically changing neighborhood to "sell now. preserve your equity" is:
blockbusting
438
Fair housing complaints are filed with the:
housing and urban development
439
The federal fair housing act does not apply to discrimination on the basis of:
tobacco smoking
440
Federal fair housing laws do not apply to discrimination based on:
sexual orientation
441
The federal fair housing act does not apply to:
the sale or lease of commercial office buildings
442
If a tenant wants to rent in a complex where children are not allowed. The broker should:
tell the tenants that bona fide retirement communities are allowed to prohibit families with children
443
protected classes under the civil rights act include:
persons with children under 18 living at home
444
If a blind tenant has a seeing-eye dog, a landlord with a "no pets" policy rule may:
grant the blind person an exception to the "no pets" rule
445
A landlord must provide a designated handicap parking space for a handicap tenant:
at no added cost if space is available and a need is shown
446
A handicap tenant wants the landlord to lower all the light switches and install grab bars in the shower. Must the landlord comply?
No
447
Which areas in a new high-rise apartment structure must be accessible to the handicapped?
The entire structure
448
Which of the following is a protected class under the federal fair housing act?
mental incapacity
449
a owner occupied 4 plex or smaller can refuse to rent to students who are catholic:
true
450
Which property is exempt from the fair housing act?
a property where the owner lives in one of the units and won't rent the other units to women
451
An owner occupant of a unit in a 8 unit apartment complex:
may not discriminate because the complex has 8 units
452
The civil rights act applies only to discrimination based on:
race
453
The Americans with disabilities act ADA applies to:
A hardware store which is not handicap accessible
454
The ADA applies to a :
store with no designated handicap parking
455
Which federal law requires a lender to inform the borrower as to the annual percentage rate on a loan?
truth in lending act ( reg. z)
456
All of the following are part of the annual percentage rate on a loan EXCEPT:
Attorney's fees
457
A broker runs the following ad in a local newspaper. "four bedroom, 3 bath home in soaking hawk location. 30,000 down and get a 9% loan with payments of 766 per month." the ad is in violation of which law:
truth in lending
458
Under truth in lending, if a broker advertises a property with an assumable loan they must:
state the finance charge as an annual percentage rate
459
Which of the following would be regulated by truth in lending?
a loan on a single-family house with more than 4 payments
460
If a broker advertises a property as having an "assumable variable rate loan with a range of 8 to 11 percent." it would be a violation of truth in lending because:
the ad must state "annual percentage rate" after the interest rate
461
Which of the following are regulated by reg z?
consumer installment loans
462
truth in lending establishes limits on which of the following?
the maximum number of days the borrower has to exercise his right of rescission
463
under truth in lending, annual percentage rate shows:
the true cost of credit
464
Which of the following loans are covered by truth in lending?
a homeowner gets a 2nd mortgage on his residence
465
All of the following are covered by truth in lending act EXCEPT:
A loan to buy a pet store
466
A borrower must be told the APR to:
allow borrowers to compare the true cost of credit
467
A loan estimate under TRID would likely include each of the following EXCEPT:
costs to bring the property to sound physical condition
468
RESPA requires that the lender provide to the borrower which of the following within 3 days of a loan application?
An estimate of the closing costs
469
All of the following would be covered by RESPA EXCEPT:
a commercial loan on a 5 plex
470
A loan estimate under TRID would likely include each of the following EXCEPT:
costs to bring the property to sound physical condition
471
A broker ran an ad containing a paid endorsement. The ad failed to mention that the endorsement was a paid endorsement. This violates the rules of which federal agency?
FTC
472
The Can-spam act applies to:
Email
473
the do not call act applies to:
telemarketers
474
The FTC advertising rules apply to:
all business advertising
475
A real estate agent cold calling phone numbers must compare phone numbers with the FTC's do not call list every:
31 days
476
A sellers listing with Molly broker expired. Due to the existing business relationship, Molly is exempted from the do not call rules if she calls the seller within a maximum of:
18 months
477
A broker wants to communicate with a potential buyer regarding a property for sale. If the communication will be via fax, the broker must:
include an OPT-OUT notice in the fax
478
All of the following may be depreciated EXCEPT:
Land
479
A charge to install civic improvements such as sidewalks and curbs in a subdivision is called a:
special assessment tax
480
The interest on a loan to purchase or refinance a primary residence is:
fully deductible
481
Which of the following is not a specific lien?
Income tax judgments
482
The value that is the basis for the determination of property tax is the:
Assessed value
483
When taxes on a property are based on the market value of the property, the tax is called:
ad valorem
484
How does a lender protect themselves against a lien being filed for the failure to pay property taxes?
the lender makes the buyer put 1/12 of the annual taxes in an impound account each month
485
the commission received by the broker is:
negotiated between the listing broker and the seller
486
on a principal residence the homeowner can deduct which of the following for tax purposes?
interest
487
which of the following is deductible on an investors federal tax return?
the annual hazard insurance premium on an office building owned by the investor
488
What is a special assessment:
the amount charged the owner to finance a civic improvement such as a sewer system which benefits the property
489
all of the following are true about special assessment EXCEPT:
they are tax deductible like property taxes
490
Which of the following has priority over a mechanics lien?
a tax lien
491
property taxes are considered delinquent and become a lien if not paid by the:
due date
492
Which of the following determines the loan discount points on a loan?
the money market
493
All of the following participate in the secondary mortgage market EXCEPT:
FHA
494
If a borrower is paying off a loan on an installment basis, the loan is called an:
Amortized mortgage
495
If an investor acquired a property by putting down a small amount of cash and financed the balance he would be:
leveraging his investment
496
A release clause is part of:
a blanket mortgage
497
Which of the following is a function of FNMA?
Providing a source of money for approved lenders
498
A buyer has found a seller who is willing to remain responsible for the existing loan on a property and gives the buyer a new, larger loan at a higher rate of interest. The new loan is called:
wrap around mortgage
499
If the bank gives the owner of a property a flow of payments and takes a lien position in the property, the loan is called:
a reverse annuity
500
Each of the following environmental issues involves an odorless, colorless gas EXCEPT:
Asbestos
501
Interest rate "caps" would be a part of which of the following type of loans?
adjustable rate mortgage
502
the amount of loan discount points charged by a lender is based off all of the following EXCEPT:
the borrowers marital status
503
A mortgage which allows the borrower to receive additional funds on an approved loan is called:
an open-end mortgage
504
Which of the following statements best describes FNMA?
it is a government sponsored, privately owned cooperation that provides money to private lenders
505
When a borrower purchases FHA mortgage insurance the policy insures the:
MortgagEE
506
When a buyer gives the seller a note and a mortgage for part or all of the price of a property, it is:
A purchase money mortgage
507
In order for a qualified veteran to secure a VA loan, the veterans would have to get from the VA a certificate of:
Eligibility
508
Which of the following is the key or unique part of a blanket mortgage?
Release clause
509
The FNMA buys mortgages from
Lenders
510
a buyer is assuming the sellers mortgage. If the seller wants to be relieved of all liability, he should:
get a release from the lender (novation)
511
If the interest rate on a mortgage is subject to changes over the life of the loan, the mortgage is called:
adjustable rate mortgage
512
the loan origination fee:
is charged by a lender to set up the loan
513
a mortgage that covers more than one piece of property so that single parcels may be released from the lien is called a:
blanket mortgage
514
who is the mortgagEE under a purchase money mortgage?
Seller
515
What is the purpose of charging loan discount points on a loan?
to raise the yield on a below market rate loan to the market rate
516
Which federal law deals with industrial pollution?
CERCLA
517
Mortgage brokers:
bring borrowers and lenders together for a fee
518
At closing, which of the following items would be a credit to the buyer?
earnest money deposit
519
Which is the recommended method for dealing with asbestos?
Encapsulation
520
The clause in a mortgage that permits the lender to raise the interest rate upon certain stipulation conditions, such as a raise in the prime interest rate is called:
Escape clause
521
If a homeowner secured a home equity loan on his property, it would most likely be a:
2nd mortgage
522
Which lien has the highest position?
Tax lien
523
Which of the following are allowed to get a VA loan?
qualified veterans and their un remarried widows
524
What does GNMA do?
Buys FHA and VA loans in the secondary market
525
When would a lender enforce a due-on sale clause on a property?
when the owner sells the property by a contract for deed
526
when is a loan fully amortized fixed rate loan?
when the principal and interest payment is constant over the life of the loan
527
which of the following would involve removal of industrial pollutants?
Phase III site assessment
528
All are lenders in the primary mortgage market EXCEPT:
federal reserve banks
