Real Estate Exam 1 missed questions Flashcards
Upon discovering a salesperson in his office was receiving a referral fee from a local lender for every real estate loan the salesperson referred to the lender, the broker of record in that office took only two actions: He discharged the salesperson, and he warned all other salesperson in the office never to accept such fees. Based only on the foregoing, which of the following is most nearly correct:
A) The sales person appears to be guilty of co-mingling;
B) While the canons of the business ethics my have been bent, no cause for action by the Commissioner exists;
C) Since the broker was apparently unaware of the practice, only the salesperson can be disciplined;
D) Both broker and salesperson may be subject to disciplinary acting by the Commissioner.
D) Both broker and salesperson may be subject to disciplinary acting by the Commissioner.
The broker is responsible for the acts of the salespersons employed by the broker, and therefore both are subject to disciplinary action by the Commisioner.
Authorization to sell a parcel of real property in the even of a default is given by:
A) Trustor to beneficiary
B) Trustor to trustee;
C) Beneficiary to trustee;
D) Beneficiary to trustor
B) Trustor to trustee;
In agreements found in a deed of trust, the trustor (borrower) gives the trustee (third party) the power to sell the property given as security for the note, in the event the trustor defaults in his payments to the lender. There are many additional agreements in such a trust deed establishing the condition under which the trustee can exorcist this power of sale.
An “open-end’ provision in a mortgage would benefit the borrower the most if he:
A) Prepaid the loan;
B) Allowed a subsequent buyer to assume the loan
C) Had a loan subordinated to a construction loan;
D) Borrowed additional money
D) Borrowed additional money
An open-end provision in a mortgage allows the borrower to borrow additional amount in the future rewriting the loan documents.
Another name for an estate of inheritance is:
A) Fee simple defeasible;
B) Estate at sufferance;
C) Estate in fee;
D) Probate estate
C) Estate in fee;
By definition
When comparing condominiums and rented apartments, which of the following would be true:
A) The person who occupies each unit would have an estate in real property;
B) The occupier has a fee estate;
C) The local tax assessor must asses each unit of the subdivision separately;
D) None of the above
A) The person who occupies each unit would have an estate in real property;
The owner of the condominium would have a fee simple estate. The tenant of an apartment would have a less-than-freehold estate.
The right or power to sell a property in the event of a default under the terms of the trust deed is given by:
A) Trustee to the trust or
B) Buyer to the beneficiary
C) Buyer to the seller
D) Trustor to the trustee
D) Trustor to the trustee
In the trust deed, the trustor (borrower) gives the trustee (holder of the event of a default.
Following property action by the local authorities, the zoning on a vacant lot was changed from “commercial: to “residential.” Such an action is called:
A) Retroactive zoning;
B) Down zoning;
C) Spot zoning;
D) Blended zoning
B) Down zoning;
Such a change would appropriately be called down zoning, because it is going from a higher use to a more restrictive use.
A formal declaration not an oath, that a statement is true or that the declarer will tell the truth is:
A) An affidavit;
B) An acknowledgment;
C) Verification;
D) An affirmation
D) An affirmation
An affirmation is a formal declaration, not under oath, that a statement is true, or that the declarer will tell the truth.
Easements are terminated by all of the following except:
A) Prescription by the owner of the servient tenement
B) Merger of the dominant an servient tenement;
C) Revocation by the owners of the servient tenement;
D) Release by the owner of the dominant tenement
C) Revocation by the owners of the servient tenement;
The owner of the servient tenement may take property action to terminate the easement, but unilaterally revoking the easement by the servient tenement, fails to terminate the easement.
An easement in gross:
A) Benefits dominant land
B) Burdens servient land
C) Cannot be owned separately from an interest in land;
D) Burdens dominant land.
B) Burdens servient land
Any easement is burden on servient land. Because an easement in gross belongs to a person, there is not a dominant tenant, but the land burdened by the easement would be a servient tenement.
Which of the follow is not a true statement about easements:
A) An easement in gross is a right in another’s land created for the benefit of adjacent land;
B) An easement is a non-possessory interest;
C) An owner cannot have an easement in his own land;
D) Because an easement, one may be restricted in the used of his own land.
A) An easement in gross is a right in another’s land created for the benefit of adjacent land;
An easement in gross only involves a servient tenement; there is no dominant tenement which benefits from the easement. An easement in gross belong to a person, so adjacent land would not be involved.
A straight note, same term and interest rate, would:
A) involve more interest than an installment note;
B) Involve less interest than an installment note including interest;
C) involve less interest than a joint and several installment note that is payable plus t interest;
D) Involve the same amount of interest as an installment note plus interest.
A) involve more interest than an installment note;
Straight notes involve more interest than installment notes. This is true because the interest is computed on the unpaid balance of the loan, and, with an installment note, the principal is decreased (amortized) during the life of the loan. This is not the case with a straight (term) note because the entire principal amount is not paid until the end of the term, so interest must be paid on the entire principal borrowed.
Mr. and Mrs. Winters hired the Superb Construction Company to install a swimming pool on their residential premises. In the event the construction company was unpaid and it was necessary for them to file a lien for payment of the contract, the encumbrance created would be:
A) A specific lien
B) A general lien
C) A voluntary lien
D) None of the above
A) A specific lien
This would be a mechanic’s lien, and mechanic’s liens are always specific liens because they apply to that one parcel of the property and not all of the property of the owner.
Land that is subject to an easement is said to be:
A) Appurtenant thereto;
B) Encroached upon;
C) Encumbered;
D) Restricted
C) Encumbered;
An easement is an encumbrance. The easement is appurtenant to the land, not the land to the easement. Liens and deed restrictions are also encumbrances, but of a different type.
Which of the following persons would usually be in the weakest position agains loss of property due to a claim of title by an outside person:
A) The holder of a recorded deed who rents the property:
B) The holder of a certificate of title to property issue by a title company;
C) The holder of an unrecorded deed who occupies the property;
D) The holder of an unrecorded quitclaim deed who does not occupy the property.
D) The holder of an unrecorded quitclaim deed who does not occupy the property.
A quitclaim deed simply relinquishes any claim that the grantor may have in the property. He may have none. Also, in this instance, because it is unrecorded and the owner is not living on the property, constructive notice has not been given.
