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Real Estate Pre-License > Real Estate Pre-Class > Flashcards

Real Estate Pre-Class Flashcards

1
Q

Corn stored in a grain bin is considered real property.
o True
o False

A

False

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2
Q

Kitchen cabinets, a furnace, or bathroom appliances are considered real property after they have been installed as improvements to the home, even though at one time they were personal property.
o True
o False

A

True

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3
Q

A dishwasher installed in the cabinets does not need to be excluded from the listing if the owner is planning on taking the washer with them. It can be excluded on the sales agreement.
o True
o False

A

False

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4
Q

It is not necessary for a licensee to be under the control of a real estate broker.
o True
o False

A

False

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5
Q

A water well pump would be considered personal property and could be taken with the seller.
o True
o False

A

False

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6
Q

The sudden replacement of land by a landslide is called avulsion.
o True
o False

A

True

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7
Q

Riparian water rights are the right enjoyed by landowners located next to lakes.
o True
o False

A

False

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8
Q

Appointees to the Iowa Real Estate Commission must be approved by the Iowa Senate.
o True
o False

A

True

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9
Q

Littoral rights are rights enjoyed by landowners located next to rivers and streams.
o True
o False

A

False

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10
Q

Real property is divided into two categories, physical and economic.
o True
o False

A

True

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11
Q

Landowners can sell air rights or subsurface rights and retain the surface rights.
o True
o False

A

True

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12
Q

A term that has been given to expanding exposure is “farming”. Some good examples of “farming” are as follows:
o Door knocking in your local neighborhood.
o Putting your business cards on local business bulletin boards.
o Joining breakfast clubs, service clubs, and other casual organizations.
o All of the above.

A

All of the Above

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13
Q 
Which of the following is not a physical characteristic of real property?
o  Immobility
o  Indestructibility
o  Uniqueness
o  Scarcity
A

Scarcity

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14
Q 
Which of the following is not a physical characteristic of real property?
o  Immobility
o  Indestructibility
o  Uniqueness
o  Scarcity
A

Scarcity

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15
Q 
Which characteristic is not an economic characteristic of real estate?
o  Location
o  Scarcity
o  Improvements
o  Uniqueness
A

Uniqueness

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16
Q

The owner of land also owns the rights to the subsurface and the air above the land.
o True
o False

A

True

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17
Q

All licensees have the right to call themselves REALTORS®.
o True
o False

A

False

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18
Q 
What REALTOR® associations must you belong to have the ability to call yourself a REALTOR®?
o  The local association
o  The state association
o  The national association
o  All of the above
A

All of the Above

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19
Q

Is it possible for a licensee to belong to more than one multiple listing service?
o Yes
o No

A

Yes

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20
Q

No special insurance is necessary for real estate licensees to conduct business in Iowa.
o True
o False

A

False

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21
Q

A growing corn crop is considered part of the land.
o True
o False

A

True

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22
Q

A Salesperson must take additional required courses before a broker’s license can be obtained.
o True
o False

A

True

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23
Q

You need a special real estate license to manage an apartment house.
o True
o False

A

False

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24
Q

ARELLO stands for Association of Real Estate License Law Officials
o True
o False

A

True

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25
Q 
Which of the following is not included in the Bundle of Rights?
o  Right of quiet enjoyment
o  Right of disposition
o  Right of separation
o  Right of control
A

Right of separation

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26
Q 
From the date of purchasing this course, how many months do you have to take the Real Estate Salesperson Exam?
o  6 months
o  12 months
o  3 months
o  None of the above
A

12 months

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27
Q

A broker may opt out of IDX and still display the listings of other companies on his website.
True
False

A

False

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28
Q

A commission is earned when the agent produces a ready, willing, and able buyer.
True
False

A

True

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29
Q

A commission may still be earned even though a seller and a buyer get together and decide to cancel the deal.
True
False

A

True

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30
Q

A commission may still be earned even though the seller was unable to deliver possession in a reasonable time.
True
False

A

True

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31
Q

A company can require you to buy from them if they sell your house.
True
False

A

False

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32
Q

A contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation.
True
False

A

True

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33
Q

A licensed assistant is paid by the broker.
True
False

A

True

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34
Q

A licensee employing an assistant can pay that assistant a percentage of their earned commissions.
True
False

A

False

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35
Q

A personal assistant is permitted to submit data on listings to a multiple listing service.
True
False

A

True

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36
Q

A real estate agent is required to check the Do-Not-Call Registry every 31 days to have any defense of a violation.
True
False

A

True

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37
Q

A real estate company must have a physical office in Iowa to meet the minimum services requirements of the law.
True
False

A

False

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38
Q

A salesperson is allowed to contact a person on the Do-Not-Call list if he has had a business inquiry from that person in the past 3 months.
True
False

A

True

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39
Q

An antitrust conviction in Iowa will cost you your real estate license and possibly a high monetary fine.
True
False

A

True

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40
Q

An Independent Contractor is a real estate salesperson that works for more than one broker.
True
False

A

False

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41
Q

An unlicensed assistant can show a property as long as he or she explains they will have to talk to the broker to make an offer.
True
False

A

False

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42
Q

By the late 1960s, MLS’s had become the norm in larger cities.
True
False

A

True

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43
Q

Caveat Emptor means “Let the Buyer Beware”.
True
False

A

True

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44
Q

Even though you are an Independent Contractor, your broker must still withhold income taxes from your commissions.
True
False

A

False

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45
Q

IDX stands for Internet Data Exchange.
True
False

A

True

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46
Q 
Company A is offering a selling bonus of $1,000 to the selling agent. You sell the house and at the closing, the broker for company A gives you a check for the $1000. Who if anyone has violated the law?
 No one
 You
 The broker for company A
 Both you and the Broker for company A
A

Both you and the Broker for company A

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47
Q

If a salesperson were to transfer from one broker to another, any active listings the salesperson has will transfer to the new broker.
True
False

A

False

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48
Q

If a spouse refuses to sign a deed it would still be possible for the agent to collect a commission.
True
False

A

True

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49
Q

If you have a commission dispute with another agent you cannot take it to the Iowa Real Estate Commission.
True
False

A

True

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50
Q

Iowa law spells out the minimum services that a broker must provide to a client.
True
False

A

True

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51
Q

It is not necessary for an independent contractor agreement to be in writing.
True
False

A

False

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52
Q

It is permissible for an unlicensed assistant to show a house as long as they make it clear they are working for a licensed agent.
True
False

A

False

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53
Q

It is permissible for brokers to get together and establish a standard commission for certain services.
True
False

A

False

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54
Q

It is permissible to receive a small wage from your broker as long as it does not exceed 10% of your total income from real estate.
True
False

A

True

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55
Q

Larry was holding an open house and during the event visited with Bill and Jane and mentioned another home they might be interested in. Bill and Jane went to that house, noticed it was also open and ended up signing an offer to buy with the other agent. Does Larry have a valid case to claim procuring cause?
Yes
No

A

No

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56
Q

Personal assistants are permitted to answer questions regarding mortgage financing.
True
False

A

False

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57
Q

Salespeople must not close a transaction unless under the direct supervision of the broker.
True
False

A

True

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58
Q

Simply talking about the commission your company charges in a meeting with agents from another company is not an antitrust violation.
True
False

A

False

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59
Q

The chain of events that leads to a real estate sale is the procuring cause.
True
False

A

True

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60
Q

The National Association of REALTORS IDX policy established rules allowing other companies to display another company’s listings on their web sites.
True
False

A

True

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61
Q

The practice of paying referral commissions grew because of the popularity of franchises.
True
False

A

True

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62
Q

A bilateral contract means only one party needs to act.
True
False

A

False

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63
Q

A contingency is something that has yet to be done before the contract becomes final.
True
False

A

True

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64
Q

A counter offer need not be initialed by all parties of the contract.
True
False

A

False

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65
Q 
A minor can void a contract in what circumstance?
 They cannot obtain a loan
 They change their mind
 They cannot get a co-signer
 At any time
A

At any time

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66
Q

Agents are required to, as soon as possible, deliver to the parties of the contract, copies of the contract.
True
False

A

True

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67
Q

Agreeing with someone to mow your lawn is an example of an implied contract.
True
False

A

True

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68
Q 
An expense stop is most commonly used in what type of lease?
 Gross Lease
 Full Service Lease
 Triple Net Lease
 Gross Industrial Lease
A

Full Service Lease

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69
Q

An Open Listing allows the seller to sell the property himself and list the property with other agents.
True
False

A

True

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70
Q

An Option to Buy is an agreement to buy in the future at a set price.
True
False

A

True

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71
Q

An Implied contract is one of actions and not of words.
True
False

A

True

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72
Q 
Bill and Sue sign an offer to buy on the Green’s home with a clause in the contract that states Bill and Sue must first sell their present home. This is called a \_\_\_\_\_\_\_?
 Option
 Contingency
 Stipulation
 Land Contract
A

Contingency

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73
Q

Carol and Ed sign an Offer to Buy the Smith’s house but change their minds a couple hours later and the Smiths had already signed the Offer. Can Carol and Ed void the contract?
Yes
No

A

No

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74
Q 
Consideration, offer and acceptance, legally competent parties, and reality of consent are essential elements of a contract. What is the fifth?
 Terms and conditions
 Acknowledgement of a Notary
 Legal purpose
 Legal description
A

Legal purpose

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75
Q

Contract Law is the body of law that governs contracts.
True
False

A

True

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76
Q

Earnest money in an offer to purchase can be returned if the buyer changes their mind before the seller has signed the offer.
True
False

A

True

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77
Q 
Frank and John entered into a contract for the sale and purchase of Frank’s home. What type of interest does John now have in Frank’s home?
 Escrow
 Contract
 Equitable
 Insurable
A

Equitable

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78
Q

If a buyer obtains financing but is not able to close the transaction until two weeks after the time specified in the sales agreement, the seller can void the contract because of the “Time is of the Essence” clause.
True
False

A

True

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79
Q

If the contract is not carried out within the time frame provided for, is the contract
void
voidable

A

voidable

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80
Q

If there are multiple counter offers back and forth, it is best to draw a new document when an agreement is reached and have all parties sign the new document to clean it up.
True
False

A

True

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81
Q

If either party to the purchase agreement fails to perform, the other party may sue for Specific Performance.
True
False

A

True

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82
Q

In an Exclusive Agency listing, the owner retains the right to sell the property himself.
True
False

A

True

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83
Q

In the lease language, a CAM refers to construct and manage.
True
False

A

False

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84
Q

It is wise to provide for the acknowledgment of receipt of the Agency Agreement, Sellers Disclosure of Property Condition, and Lead-Based Paint information in the Offer to Buy Agreement.
True
False

A

True

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85
Q

Jim and Harry are visiting at a party and Jim offers Harry $200,000 for his house and Harry says “Great”. They shake hands and say “that’s a deal”. Is there a contract?
Yes
No

A

No

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86
Q

Most real estate contracts are express contracts.
True
False

A

True

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87
Q

Novation is the substitution of one party to a contract for another.
True
False

A

True

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88
Q

Once a counteroffer is made, the original contract is void.
True
False

A

True

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89
Q

The Brown’s decide to make an offer on the Johnson’s home, but make a counteroffer of $5,000 less than the listing price. The Johnsons reject the offer with their own counteroffer of $2,500 less than the listed price. The next day the Johnson’s had a change of heart and decide to accept the Brown’s offer of $5,000 less. Is there a valid contract.
Yes
No

A

No

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90
Q

The most common tenancy in residential leasing is:
Tenancy at Will
Fixed-term Tenancy
Tenancy From Period to Period (Periodic Tenancy)
Tenancy at Sufferance

A

Tenancy From Period to Period (Periodic Tenancy)

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91
Q 
The owner of a property agrees to finance the property for the buyer for 10 years. What type of contract would this be?
 A Unilateral Contract
 A Land Contract
 A Voidable Contract
 An Option
A

A Land Contract

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92
Q

The seller can answer “Unknown” on the seller disclosure statement if he does not know one of the mandatory questions.
True
False

A

True

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93
Q

The Seller’s Disclosure Statement must be received and acknowledged before the Offer to Buy is signed.
True
False

A

True

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94
Q 
There are 3 types of commercial leases. Two of them are a Gross Lease, a Net Lease. What is the third?
 A CAM Lease
 A Tenancy at will Lease
 A Holdover Lease
 Percentage Lease
A

Percentage Lease

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95
Q

There does not need to be a specific period of time in a listing to make it a valid listing.
True
False

A

False

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96
Q

There is a paragraph in the IAR offer to Purchase that provides for a counteroffer.
True
False

A

True

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97
Q

There is no mention of Fair Housing in the Listing Agreement or Offer to Purchase, but both the agent and seller are required to obey the Laws of Fair Housing.
True
False

A

False

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98
Q

To have a valid protection clause from an expired listing, the list of protected buyers needs to be delivered to the seller before the listing expires.
True
False

A

True

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99
Q

What essential element of a contract is missing from a contract that contains an offer and acceptance, reality of consent, is a legal act, and contains consideration.
The Legal Description
The date of the contract
The consent of the legally competent parties
The rate of commission

A

The consent of the legally competent parties

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100
Q

What kind of interest does a person who signed an Offer to Purchase land contract have in the property?
A contractual interest
A leasehold interest
An equitable interest

A

An equitable interest

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101
Q

When a Land Contract is used in a sale, the Deed is delivered to the buyer at the time of the closing.
True
False

A

False

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102
Q 
When you buy property on a Land Contract, the contract, when recorded, will give you what?
 A leasehold interest
 Possession
 An insurable interest
 An equitable interest
 Both 3 and 4
A

Both 3 and 4

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103
Q

Which covenant of a warranty deed is missing from the following? Covenant of Quiet Enjoyment, Covenant against encumbrances, Covenant of possession, Covenant of warranty forever?
Covenant of Construction
Covenant of Hazards
Covenant of Further assurance

A

Covenant of Further assurance

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104
Q 
Which of the following is not an essential element of a contract?
 Consideration
 Offer and acceptance
 Address of the property
 Legal purpose
A

Address of the property

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105
Q 
Which of the following is not grounds for termination of a contract?
 Agreement of the parties
 Death of one of the parties
 Duress
 Terminal illness of one of the parties
A

Terminal illness of one of the parties

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106
Q 
Which of the following listing agreements is illegal?
 An Exclusive Agency listing
 An Open Listing
 An Exclusive Listing
 A Net Listing
A

A Net Listing

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107
Q

A lender will typically loan the greater of Market Value and Market Price.
True
False

A

False

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108
Q

A Capitalization Rate and a Gross Rent Multiplier is the same number.
True
False

A

False

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109
Q

A Competitive Market Analysis follows the same steps as an appraisal.
True
False

A

False

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110
Q

After you have determined the depreciated value of the improvements in the cost approach, you need to add in the value of the land.
True
False

A

True

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111
Q 
Allen purchased a house for $75,000 that he plans to use as a rental. He wants a gross rent multiplier of $110. How much rent does he need to receive to achieve his goal?
 $800
 $681
 $875
 $900
A

$681

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112
Q

An adjustment in a CMA for a house larger than your subject would be:
A plus adjustment
A minus adjustment

A

A minus adjustment

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113
Q

Can the Highest and Best Use of a property change?
Yes
No

A

Yes

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114
Q

Economic Life Depreciation is assuming that the depreciation of a property occurs evenly over a certain term.
True
False

A

True

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115
Q

In an appraisal report, the factor of Contribution is considering whether an improvement will add sufficient value to the property.
True
False

A

True

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116
Q

In Capitalization, Value, times, Rate equals Income.
True
False

A

True

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117
Q

In order for you to do any kind of real estate appraisal, you must at least have a real estate license.
True
False

A

False

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118
Q

In using the income approach to value of an apartment complex, management fees are not considered an operating expense.
True
False

A

False

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119
Q

Incurable Functional Obsolescence is typically never curable.
True
False

A

False

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120
Q

It is difficult for the Highest and Best Use of a property to change.
True
False

A

False

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121
Q

It is legal for a real estate agent to charge for a CMA.
True
False

A

True

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122
Q 
Jim is the owner of office space he is leasing for $0.85 per foot per month. The total space leased is 5250 square feet. Jim has decided he wants to sell the space and advertise that the space will generate a 7.5% return. At what price should Jim list the space?
 $618,400
 $623,535
 $714,000
 $723,600
A

$714,000

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123
Q

Market Value and Market Price basically mean the same thing.
True
False

A

False

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124
Q

Market Value is defined as the price that a property should bring after being exposed to the market for a reasonable time, under reasonable circumstances that an informed seller and an informed buyer agree to.
True
False

A

True

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125
Q

Market Price is the actual price that is paid for a property.
True
False

A

True

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126
Q

On most residential appraisals the approach to value that typically most weight is given is the Cost Approach.
True
False

A

False

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127
Q 
Phillip purchased an apartment building with annual revenues of $31,400 and monthly expenses of $485. If the capitalization rate is 8%, what should the appraised value be?
 $308,340
 $319,750
 $354,230
 $297,780
A

$319,750

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128
Q

Progression is when a lesser quality property is surrounded by very desirable properties.
True
False

A

True

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129
Q

Property values are not typically affected by environmental conditions.
True
False

A

False

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130
Q

Real estate agents are allowed to charge a fee if they provide a Broker’s Price Opinion.
True
False

A

True

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131
Q

Replacement Cost New is the primary method most appraisers use to determine the cost approach of residential units.
True
False

A

True

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132
Q

Reproduction Cost is used in the Cost Approach for residential units.
True
False

A

False

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133
Q

Researching the market will produce valuable data to all three approaches to value.
True
False

A

True

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134
Q

Room adjustments are never made in a CMA if you are making an adjustment for square footage.
True
False

A

False

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135
Q

Sales concessions are never considered in the adjustments of a CMA.
True
False

A

False

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136
Q

Straight-Line Depreciation assumes that all depreciation occurs evenly over a certain number of years.
True
False

A

True

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137
Q

Straight-line depreciation uses a number of years age to determine the amount of depreciation.
True
False

A

True

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138
Q

The first principal to be considered in an appraisal report is Anticipation.
True
False

A

False

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139
Q

The Iowa Real Estate Commission also administers the licenses of Iowa appraisers.
True
False

A

False

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140
Q

The Appraisal Standard Board of the National Appraisal Foundation establishes the USPAP standards.
True
False

A

True

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141
Q

The factor of Contribution needs to be considered when an appraiser is appraising a home for a pending remodeling project.
True
False

A

True

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142
Q

The first thing you should examine is the Highest and Best Use of the property.
True
False

A

True

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143
Q

The four factors that determine Market Value are Utility, Demand, Scarcity, and Transferability.
True
False

A

True

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144
Q

The six principals of value are the Highest and Best Use, Competition, Change, Anticipation, Conformity, and Contribution.
True
False

A

True

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145
Q

To calculate the Capitalization Rate of an income property, you multiply the value, times, the income.
True
False

A

False

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146
Q

Transferability is measured by the ease in which a property can be transferred to others.
True
False

A

True

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147
Q 
Using a Gross Rent Multiplier of 118 the value using the Income of a house renting for $2100 per month would be?
 $245,000
 $247,800
 $253,000
 $242,800
A

$247,800

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148
Q

Using a Capitalization Rate is the preferred system of appraisers when appraising a commercial income property.
True
False

A

True

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149
Q 
What percentage depreciation has occurred to a property 45 years old with an estimated life of 125 years?
 40%
 42%
 36%
 33%
A

36%

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150
Q

When calculating a gross rent multiplier you need to deduct expenses to get an accurate figure.
True
False

A

False

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151
Q

When coming to a final estimate of value on a CMA, you should average the three adjusted values, to arrive at a final estimate of value for the subject.
True
False

A

False

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152
Q 
In how many months must the owners vacate the home in a foreclosure, in return for a waiver of a deficiency judgment?
 3
 6
 8
 9
A

6

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153
Q

A deed back in lieu of foreclosure will always be accepted by the lender because it will terminate the borrower’s right of redemption.
True
False

A

False

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154
Q

A deficiency judgment is allowed in Iowa unless the lender elects to file a foreclosure lawsuit and asks the court to disallow the statutory redemption period.
True
False

A

True

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155
Q

A Judicial foreclosure requires an action of the court.
True
False

A

True

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156
Q

A loan origination fee is any of the costs incurred in the underwriting process of approving a mortgage such as credit report, appraisal, or various inspections.
True
False

A

False

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157
Q

A mortgage is not a lien on the property.
True
False

A

False

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158
Q

A second mortgage is merely another mortgage that is junior to the first mortgage.
True
False

A

True

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159
Q

A power-of-sale clause in a mortgage will enable the use of a non- judicial foreclosure.
True
False

A

True

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160
Q

Adjustable Rate Mortgages are typically 7 to 10-year terms and amortized over the same period.
True
False

A

True

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161
Q

Adjustable Rate Mortgages interest rates are adjusted periodically to reflect the change in the economic index.
True
False

A

True

162
Q 
At what percent of equity in a home does the private mortgage insurance requirement typically drop off?
 20%
 22%
 25%
 28%
A

22%

163
Q

Borrowers wanting to borrow money on a home equity loan have a 3 day right of rescission.
True
False

A

True

164
Q

Discount points are points reduced from the interest rates charged because of a high credit rating.
True
False

A

False

165
Q

Even though the down-payment requirements are lower on a FHA loan, the borrower must contribute at least 5% of the transaction which can be a combination of down-payment and closing costs.
True
False

A

False

166
Q

Fannie Mae groups mortgages into blocks then issues Mortgages Backed Securities that are guaranteed.
True
False

A

True

167
Q

Fannie Mae, Freddie Mac, and Ginnie Mae are all part of what part of the mortgage market?
Primary Market
Secondary Market

A

Secondary Market

168
Q

FHA and VA guaranteed loans are made from funds of the two organizations.
True
False

A

False

169
Q

For a person to be eligible for a Veterans Administration loan they must have served in one of the conflicts.
True
False

A

False

170
Q

Freddie Mac loans are guaranteed on the secondary market.
True
False

A

False

171
Q

How does the Federal Reserve System slow down the economy?
Takes currency out of circulation
Freezes interest rates
Increases the cost of money to member banks
Lowers the cost of money to member banks

A

Increases the cost of money to member banks

172
Q 
How many Federal Reserve districts are there?
 10
 9
 13
 12
A

12

173
Q 
How many parties must there be to a Deed of Trust.
 1
 2
 3
 4
A

3

174
Q 
How much of the mortgage does private mortgage insurance cover?
 50%
 25%
 20%
 30%
A

20%

175
Q

HUD’s Office of Consumer and Regulatory Affairs, Interstate Land Sales/RESPA Division is responsible for enforcing RESPA.
True
False

A

False

176
Q 
If a couple withdraws funds from their IRA, how soon do they need to close their deal to avoid a tax penalty?
 2 months
 90 days
 120 days
 6 months
A

120 days

177
Q

If interest rates are quoted in an advertisement what must also appear in the ad?
The annual percentage rate
All of the numbers and terms
The name of the lender offering the rate
A and B
All of the above

A

A and B

178
Q

n a Reverse Mortgage, payments are made each month from the lender to the Mortgagor.
True
False

A

True

179
Q

In order to exercise your right of rescission of a loan, the borrower must notify the lender by certified mail.
True
False

A

False

180
Q 
In the amortization schedules shown comparing a 15-year loan and a 30-year loan, how much more of a balance was left of the 30-year loan after 10 years?
 Roughly $26,000
 Roughly $31,000
 Roughly $39,000
 Roughly $42,000
A

Roughly $39,000

181
Q 
Iowa Usury laws do not apply to loans over what amount?
 $10,000
 $15,000
 $20,000
 $25,000
A

$25,000

182
Q

Loans insured by an agency for the Federal Government typically include a pre-payment penalty.
True
False

A

False

183
Q

On an amortized mortgage, interest on the mortgage is typically paid up-front.
True
False

A

False

184
Q

One and a quarter percent interest rate loans are available through the Federal Housing Administration.
True
False

A

True

185
Q

Private mortgage insurance pays off the mortgage in the case of default by the borrower.
True
False

A

False

186
Q

Regulation Z contains language that limits language on advertising the financial terms of a transaction.
True
False

A

True

187
Q

Section 8 of RESPA prohibits a person from giving or accepting anything of value for referrals of settlement service business related to a federally regulated mortgage loan.
True
False

A

True

188
Q

Straight loans on mortgages require interest-only payments.
True
False

A

True

189
Q

The certificate of eligibility for a Veterans Administration loan can be used again by the veteran if his previous loan has been satisfied.
True
False

A

True

190
Q

The Community Reinvestment Act requires reinvestment in community development, participation in programs for small businesses and in local housing endeavors.
True
False

A

True

191
Q

The Department of Justice developed Regulation Z of the Truth in Lending Act which requires full disclosure of lending costs to borrowers.
True
False

A

False

192
Q

The Farm Service Agency is primarily used for financing family farms.
True
False

A

True

193
Q

The Federal Reserve requires the member banks to keep a certain amount of reserves that are not allowed to be loaned.
True
False

A

True

194
Q

The Federal Reserve System is the main influence on the cost of money because it regulates the flow of money and interest rates through the member banks in the 12 Federal Reserve districts.
True
False

A

True

195
Q

The mortgagor is the person borrowing the money.
True
False

A

True

196
Q

The most commonly used type of loan to guarantee a mortgage is an amortized loan.
True
False

A

True

197
Q

A developer/builder can refuse to sell a lot because he or she intends for all the homes in the addition to be built by his company.
True
False

A

True

198
Q

A statement like “Before you list with XYZ Company, you should know that no other company will work with them”, would permit a judge or jury to infer you are engaged in a conspiracy.
True
False

A

True

199
Q

An agent from another company sold one of your listings. Can you put a sold sign on your sign and advertise the property as sold?
Yes
No

A

Yes

200
Q 
How many REALTORS® make up the REALTOR® panel that will hear an ethics complaint?
 3
 4
 5
 7
A

5

201
Q

A bad reputation spreads through the business community quickly and in the end, could put you out of business.
True
False

A

True

202
Q

It is legal for a company or an agent to refuse to participate in a commission split with another company, but this has to be an independent decision.
True
False

A

True

203
Q

Jim has never sold any commercial property, however, he knows his best friend wants to sell his gas station. Should Jim solicit the listing?
Yes
No

A

No

204
Q

One of the best risk reduction tools against an antitrust complaint is good documentation.
True
False

A

True

205
Q

The Clayton Act can also be used in a criminal action.
True
False

A

False

206
Q

The court can determine a violation exists without it being anti-competitive, only an agreement is needed.
True
False

A

True

207
Q

The REALTOR® Professional Standards Committee consists of 5 REALTOR® members.
True
False

A

True

208
Q

What is the best way to compete with a new entrant into your market that offers much lower commissions?
Lower your commission
Refuse to sell their listings
Do a better job of selling your services
Do not allow them to show your listings

A

Do a better job of selling your services

209
Q

The four most common anti-trust violations are:
Tie–in agreements, Group Boycotting, Price Arranging, Protective Clauses
Group Boycotting, Allocation of Markets, Protective Clauses, Price Fixing
Group Boycotting, Price Fixing, Tie-in Agreements, Brokerage Agreements
Price Fixing, Tie-in Agreements, Group Boycotting, Allocation of Customers or Markets

A

Price Fixing, Tie-in Agreements, Group Boycotting, Allocation of Customers or Markets

210
Q

You are presenting an offer to your client from your buyer and you know of another offer that is being prepared. Should you advise your client there is another offer coming from another agent?
Yes
No

A

Yes

211
Q

A phrase like “the MLS will not accept listings for less than 120 days” can be an anti-trust violation.
True
False

A

True

212
Q

A tie-in agreement results when you force a client to buy or sell one property in order for them to buy or sell another property.
True
False

A

True

213
Q

Fines for a FTC violation in civil court can range as high as $100,000.
True
False

A

False

214
Q

Hart-Scott Rodino Act requires prior notification of larger mergers to both the FTC and the Justice Department.
True
False

A

True

215
Q

If a person is found guilty in a civil action under the Sherman Act there is a possibility of treble damages, of which none of those damages are tax deductible.
True
False

A

False

216
Q

If you are found guilty of a criminal act under the Sherman Act you could receive a $100,000 fine and 5 years in prison.
True
False

A

False

217
Q

Only a court may declare an action illegal under the Rule of Reason.
True
False

A

True

218
Q

Parens Patriae refers to the powers of the United States Department of Justice and its powers of prosecuting anti-trust violations.
True
False

A

False

219
Q

Private individuals can collect attorney fees in civil court under the Sherman Act.
True
False

A

True

220
Q

The Clayton Act outlaws activities which may affect future restraint of trade.
True
False

A

True

221
Q

The Iowa Attorney General has the authority to bring an action against you for an anti-trust violation.
True
False

A

True

222
Q

The four most common violations of anti-trust are tie-in agreements, price-fixing, group boycotting, and protective clauses.
True
False

A

False

223
Q

There is no such thing as an innocent discussion of commissions with other agents.
True
False

A

True

224
Q

Under the per se rules, one does not have to establish an anti-competitive effect; just an agreement is enough to determine a violation.
True
False

A

True

225
Q

The Code of Ethics consists of the Preamble, 17 Articles, many Standards of Practice defining the Articles and the Pathways to Professionalism.
True
False

A

True

226
Q

Allocations of Customer Markets occur when two or more brokers or companies try to avoid competition by dividing customers or markets.
True
False

A

True

227
Q

A datum is used in measuring vertical property rights.
True
False

A

True

228
Q

A Lot and Block description must have the size of the lot in the description to be totally accurate.
True
False

A

True

229
Q

A Lots and Blocks legal description is a division of either a Rectangular Survey description or a Metes and Bounds survey.
True
False

A

True

230
Q 
A township lying between 12 and 18 miles South of the baseline would be identified with what township number?
 1 South
 2 South
 3 South
 4 South
A

3 South

231
Q

All Principal Meridians use the same baseline.
True
False

A

False

232
Q

Benchmarks are seldom used in modern surveys for determining a legal description.
True
False

A

False

233
Q

Correction lines are located every 4 Townships North and South of a baseline to correct for curvature of the Earth.
True
False

A

True

234
Q

Every sixth township line both North and South of each baseline is a correction line.
True
False

A

False

235
Q

Fractional sections are always on the East and South of a township.
True
False

A

False

236
Q

How many acres are in a square mile?
2560
640
1280

A

640

237
Q 
How many acres are in the following description? The SW1/4 of the SE 1/4 of the SW ¼ of Sec 3, Twp. 5 North of 3rd PM?
 20
 40
 80
 10
A

10

238
Q 
How many acres are in this tract of land? The NE1/4 of the SW 1/4 of the N1/2 of Sec 36, Twp 17, N Range 4 East.
 40
 60
 20
 80
A

20

239
Q

How many acres are there in a Township?
640
3,840
23,040

A

23,040

240
Q 
How many square feet are there to an acre?
 44,600
 43,560
 48,500
 42,000
A

43,560

241
Q 
How many square miles are there in a Township?
 36
 6
 24
 42
A

36

242
Q

Iron pins or concrete posts are used more today as monuments.
True
False

A

True

243
Q

Irregular Lots is a name used by surveyors for areas smaller than quarter sections.
True
False

A

False

244
Q

Metes and Bounds descriptions use a Point of Beginning and then measurements and angles around the parcel back to the point of beginning.
True
False

A

True

245
Q

Monuments are “fixed” objects that are used to mark a point of beginning; objects such as a tree or a rock, a road, a stream, or even a stone fence.
True
False

A

True

246
Q

Owners of a cooperative own a unit with a legal description assigned to it based on the Lots and Blocks system.
True
False

A

False

247
Q

Principal Meridians run North and South.
True
False

A

True

248
Q

Range lines run North and South.
True
False

A

True

249
Q

Section 36 ends in the Southwest corner of the township.
True
False

A

False

250
Q

The area below and above the surface of the land has to be described in the same manner as the surface.
True
False-correct

A

False

251
Q

The Beginning Point of the U. S. Public Land Survey is located at a point on the Ohio-Pennsylvania border between East Liverpool, Ohio and the Pittsburgh-metropolitan area, on private property.
True
False

A

True

252
Q

The legal description of a townhome typically follows a Lots and Blocks format.
True
False

A

True

253
Q

The legal description of a townhome typically follows a metes and bounds description.
True
False

A

False

254
Q

There are three systems that are commonly used that surveyors can both locate and determine the size of the land involved.
True
False

A

True

255
Q

There are 39 principal meridians across the United States
True
False

A

False

256
Q

Township tiers are divided by lines running East and West six miles apart.
True
False

A

True

257
Q

Vertical property rights give the owner the rights to the minerals beneath the surface.
True
False

A

True

258
Q 
What additional section did Western states designate as a school section?
 24
 10
 15
 36
A

36

259
Q 
What is the name of the meridian used in rectangular surveys for properties in Iowa?
 Fourth Principal Meridian
 First Principal Meridian
 Fifth Principal Meridian
 Indian Meridian
A

Fifth Principal Meridian

260
Q 
What section is directly East of Section 36?
 12
 6
 31
 36
A

31

261
Q

What system is most commonly used in urban subdivisions to identify a parcel or land?
Metes and Bounds
Lots and Blocks
Rectangular Survey

A

Lots and Blocks

262
Q

A licensee is not required to disclose something that a reasonable buyer can determine himself.
True
False

A

True

263
Q

A licensee must have a dual agency agreement in place to be able to show a client a property he or she has listed.
True
False

A

True

264
Q

A material adverse fact is a fact that could impact the buyer’s decision to enter into a contract or agreement on a property.
True
False

A

True

265
Q

A ministerial act is an act a licensee performs after the signing of a purchase agreement.
True
False

A

False

266
Q

Agency laws are based on common laws.
True
False

A

True

267
Q

An agent does not have to be paid by the principal in order to be deemed his agent.
True
False

A

True

268
Q

Anything contained in a professional inspection report does not need to be repeated.
True
False

A

True

269
Q

Appointed agency could be used if a client refuses dual agency.
True
False

A

True

270
Q

Bill is covering for Edwin while Edwin is on vacation. One of Edwin’s buyer clients that does not want dual agency, calls, and wants to see a house Bill has listed. Should Bill show the house?
Yes
No

A

No

271
Q

Each company is required to have a written policy that identifies and describes the types of real estate brokerage relationships the company may engage with clients.
True
False

A

True

272
Q

Express agency exists because of an agreement expressing the agency.
True
False

A

True

273
Q

If a licensee is listing a property, he or she must have a potential dual agency policy signed by the seller if he or she is planning on showing that property to potential buyers.
True
False

A

True

274
Q

Implied agency exists in the absence of a written agreement but is implied by the action and words of the agent.
True
False

A

True

275
Q

In Appointed Agency the listing agent appoints another agent to work with potential buyers.
True
False

A

False

276
Q

In today’s market, an agent working for a broker is a sub-agent of that broker.
True
False

A

True

277
Q

Iowa does not require the disclosure of a sex offender in the neighborhood but agents are advised to suggest a potential buyer to check with the local sheriff.
True
False

A

True

278
Q

Iowa real estate agents are required by law to inform potential buyers of registered sex offenders living in the neighborhood.
True
False

A

False

279
Q

It is illegal for an agent to report any person in a protected class as a material adverse fact.
True
False

A

True

280
Q

It is possible to list a buyer just as it is to list a property.
True
False

A

True

281
Q

Mark lists a buyer to a Buyers Agency Agreement without the dual agency clause. He makes appointments to show the buyer several homes including one in which he is the listing agent. Can he show the potential buyer the home he has listed?
Yes
No

A

No

282
Q

Single Agency companies typically deal only with buyers.
True
False

A

True

283
Q

Single agency means a licensee works with both buyers and sellers, but never at the same time.
True
False

A

True

284
Q

Specific assistance means any communication beyond casual conversation concerning the facts and features of a property.
True
False

A

True

285
Q

Stigmatized properties and material adverse facts mean the same thing.
True
False

A

False

286
Q

Stigmatized properties are those properties labeled by public opinion.
True
False

A

True

287
Q

The payment of compensation determines whether or not an agency exists.
True
False

A

False

288
Q

The transaction coordinator is not the advocate of either party and therefore has no obligation to negotiate for either party.
True
False

A

True

289
Q

The customer is the person represented by someone else or not represented.
True
False

A

True

290
Q

There are five statements that a dual agency agreement must contain.
True
False

A

True

291
Q

Jim is showing one of his listings to potential buyers. He has a buyer’s agency with these buyers and the potential dual agency clause signed. Jim notices some rather large cracks in the plaster in one room. Is Jim obligated to point these cracks out to the buyer?
Yes
No

A

No

292
Q

Larry is showing a house located next door to someone with AIDS. Should he inform the buyers?
Yes
No

A

No

293
Q

Licensees have fiduciary duties to sellers but not to buyers.
True
False

A

False

294
Q

Mark is showing a house to potential buyers that he has a buyer’s agency agreement with. Mark notices what he believes are termite tracks on a couple of boards in the basement. Should Mark point out what he believes is evidence of termites?
Yes
No

A

Yes

295
Q

The Dual Agency Potential/Consent Agreement is used for both buyers and sellers.
True
False

A

True

296
Q

The obligation of either the seller or buyer to pay compensation to the broker is not determinative of the agency relationship.
True
False

A

True

297
Q

The principal reason for the change in agency laws was to clearly set out who is to be paid the commission.
True
False

A

False

298
Q

A licensee may work with a single party in separate transactions pursuant to different relationships.
True
False

A

True

299
Q

COLD-AC means Care, Obedience, Loyalty, Disclosure, Accounting, and Confidentiality, which represents the fiduciary responsibilities of agency.
True
False

A

True

300
Q

Is showing a client through a property being sold by an owner on his or her own behalf a ministerial act?
Yes
No

A

Yes

301
Q

Betty is showing a house listed by Harold, to unrepresented buyers and they start talking about their price range for a home purchase. What should Betty do?
Do nothing.
Ask more questions.
Provide verbal agency disclosure
Explain she is not their agent and can’t discuss the price with them.

A

Provide verbal agency disclosure

302
Q 
You are in the process of listing a home. The sellers have told you they want the home listed at a number that will net them at least $125,000 after the 6% commission and room for negotiation of $5,000. There is no mortgage. At what price, to the nearest $100, should you list the home?
 $140,000
 $138,300
 $139,200
 $137,800
A

$138,300

303
Q 
Allen purchased a house for $75,000 that he plans to use as a rental. He wants a gross rent multiplier of 110.  How much rent does he need to receive to achieve his goal?
 $725
 $681
 $650
 $700
A

$681

304
Q 
The Cranes sold their home for $114,000 and said they made 16% over their original cost. What was their original cost?
 $99,342
 $98,276
 $98,834
 $97,675
A

$98,276

305
Q 
Bill and Mary are planning on purchasing a home for $196,000. They plan on a down payment of 20% and will borrow the balance over 30 years at 4.5% per year that costs $5.07 per thousand per month. They realize they will have to include property taxes and homeowners insurance in their monthly payment. The taxes on the home are $3,800 and the cost of their homeowner’s insurance is $1,118. How much will their monthly payment be?
 $1,178.16
 $1,089.42
 $1,204.81
 $1,228.41
A

$1,204.81

306
Q

Darlene is qualifying a buyer to see if they can qualify for a mortgage payment large enough to purchase the home they want. The lender says the maximum payment to income is 45% of their monthly income including all fixed payments. Their total family monthly income is $7,600. They have a car payment of $425 per month and two credit cards with payments of $70 and $85 per month. Their house payment with insurance, taxes, principal, and interest will be $2,678.00. Will they qualify for the mortgage?
Yes
No

A

Yes

307
Q 
You are asked to help an owner with the value of his 8 unit apartment building. The owner tells you that his annual rental income is $26,500. His annual expenses have been running fairly steady at $11,000 per year. Most interested buyers want a capitalization rate of 8%. At what price should you tell the seller to expect to sell the apartment building?
 $193,750
 $331,250
 $204,500
 $184,700
A

$193,750

308
Q 
Mr. Black sold a quarter acre of his land for $3.50 per square foot. What was the selling price?
 $38,115
 $36,478
 $41,324
 $44,244
A

$38,115

309
Q 
Alice’s independent contractor agreement calls for her to receive 50% of the in-house commission from her listings and sales for her first $25,000 in income each year and 55% of any additional commissions generated by her for the rest of the year. To date this year she has received $24,000 and she just sold a $325,000 house listed by another company at 7% that splits with her company 50/50.  What will her share of the in-house commission be?
 $6,256.25
 $6,156.25
 $5,875.50
 $5,625.25
A

$6,156.25

310
Q 
Betty is going into the real estate business with the idea she wants to make $40,000 per year. She is going to work with a broker that plans to pay her 45% of each side of the in-house commission she generates. Her broker is working on a 50/50 split with all the companies in the area. How much total sales volume will Betty need to generate to make her goal assuming all sales are at 6%?
 $2,963,000
 $2,680,000
 $2,750,000
 $3,000,000
A

$2,963,000

311
Q 
Harold is planning to bid on a section of farmland. He says his bid limit will be $4,500 per acre.  If Harold bids his limit and gets the farm bought, how much will it cost him for the farm?
 $1,440,000
 $2,790,000
 $2,880,000
 $2,460,000
A

$2,880,000

312
Q 
David is being recruited by both real estate companies in his town. One company’s commission rate is 6% and the other is 7%. David thinks he will sell about $3,000,000 a year and two-thirds of it should be in-house business. The two companies split commissions equally. Assuming both companies are offering 50% of the in-house commissions. How much more will David make if he chooses the company with a higher commission rate?
 $5,500
 $3,700
 $5,000
 $4,200
A

$5,000

313
Q 
A developer is subdividing some land into lots. The minimum lot size allowable in the city is 10,000 square feet. At the end of a block in one area is a triangular piece of land that runs 145 feet deep. How much front footage will the developer need on that lot to meet the minimum requirement?
 145 feet
 176 feet
 138 feet
 70 feet
A

138 feet

314
Q 
Phillip purchased an apartment building with annual revenues of $31,400 and monthly expenses of $485. If the capitalization rate is 8%, what should the appraised value be?
 $308.340
 $319,750
 $354,230
 $297,780
A

$319,750

315
Q 
Mike purchased an investment property 10 years ago that has appreciated 4% annually compounded over the 10 years. What is his investment worth today if his original investment was $45,000?
 $64,049
 $65,349
 $66,611
 $67,087
A

$66,611

316
Q 
You are thinking about buying a warehouse producing $13,500 in annual income. You want an 8% return on your investment. How much should you pay for the warehouse?
 $172,400
 $168,750
 $156,480
 $162,600
A

$168,750

317
Q 
The Wilsons purchased a home 6 years ago for $78,500 and have been told houses in their area have increased in value 4.5% a year for the past 6 years. How much is their home worth today with-in $5?
 $98,789
 $99,512
 $101,323
 $102,227
A

$102,227

318
Q 
The Smiths decide to sell their house and they tell you they want to net $125,000 after they pay your 6% commission and $4,000 in other closing costs. At what price do you need to list their home to get them their net price?
 $138,000
 $137,234
 $138,534
 $136,844
A

$137,234

319
Q 
Bill bought an apartment house for $175,000 that has an annual rate of return of 9%. What is Bill’s monthly income from the apartment house?
 $1,275.25
 $1,346.56
 $1,312.50
 $1,387.14
A

$1,312.50

320
Q

Dave is making $75,000 per year and his wife Carol is making $81,000 per year. They have two car payments totaling $750 per month and credit card payments totaling $800 per month. They want to buy a $350,000 home with 20% down at 4.5% interest which figures out to $5.07 per $1,000 per month. Their insurance and taxes will total $625 per month. The lender tells them their payment to income ratio cannot exceed 45 percent. Can they qualify?
Yes
No

A

Yes

321
Q 
As part of a sale of the Green’s home, they have to replace the sidewalk. They need to replace 100 feet of sidewalk 3 feet wide and 4 inches thick. They want to know what the cost will be. The concrete is $95 a cubic yard and will cover 27 feet. The labor cost is $1.90 per linear foot. What will the sidewalk cost?
 $541.50
 $567.50
 $497.75
 $512.00
A

$541.50

322
Q 
Beth is working as an agent for a real estate company. She feels her annual cost of being an agent is $12,000. She wants to net in commissions after expenses $35,000 a year. How much in-house commission will she need to generate if she is on a 40% contract with her broker if she is to meet her goal?
 $124,000
 $132,000
 $117,500
 $109,750
A

$117,500

323
Q 
Your buyer has purchased a $145,000 home. Their loan calls for 3 discount points and a 1% loan origination fee, plus $500 in actual closing costs. If they obtain a 90% LTV mortgage, how much will they pay in closing costs?
 $4,940
 $4,460
 $5,440
 $5,720
A

$5,720

324
Q 
A grain bin measures 16 feet by 12 feet by 12 feet high. How many cubic feet of grain can the farmer store?
 2,508
 2,304
 2,198
 2,466
A

2,304

325
Q 
You are thinking about going to your broker and asking for a new contract with an increased share of your commission split. Currently, you are on a straight 40% of your in-house commissions. Last year your in-house commissions were $148,500. You want your new contract to increase your split to 45% on all your earnings over $25,000. How much more would you have earned last year if you were working under the contract you are requesting?
 $3,800
 $6,175
 $4,800
 $3,900
A

$6,175

326
Q 
How many acres are in the following description S1/2 of the NE1/4 of the S ½  of Sec 16, Twp 4 North, Range 6 West of 5th PM?
 60 acres
 40 acres
 80 acres
 100 acres
A

40 acres

327
Q 
How many square feet are in a lot with a 95-foot front and a 125-foot depth and an additional triangular piece running another 20-feet deep on one side of the back that joins the other side of the back of the lot?
 11,875
 12,825
 13,115
 12,575
A

12,825

328
Q 
The Blanks want to put a fence around the back of their lot. Their lot is 96 feet wide and the back of their house is set in 15 feet on each side from their lot line, and there are 50 feet from the back of their house to the back lot line. They plan to run the fence from each of the back corners of their home to 1 foot short of their lot lines on the sides and the back. How many feet of fence will they need to purchase?
 220 feet
 226 feet
 218 feet
 232 feet
A

220 feet

329
Q 
A house just sold for $178,000. How much are the transfer taxes?
 $284.00
 $234.80
 $284.80
 $234.00
A

$284.00

330
Q 
Janet sold a house listed with her firm by another agent at 6 percent. Janet works at 45% of the action side.  Her commission share on the deal was $6,500. What was the selling price of the home to the nearest $50?
 $433,000
 $385,000
 $481,500
 $475,000
A

$481,500

331
Q 
The Greens purchase a home with a possession date of November 1st. The property taxes are $4,200 per year on the home. The lender tells the Greens that they will have to escrow enough money to pay the next bi-annual tax payment, plus 2 months. How much money will the Greens have to put into escrow at closing? (Keep in mind when the first payment will be made).
 $1,900
 $2,100
 $2,800
 $1,400
A

$2,800

332
Q

No mention of gender should be made in advertising with the exception of ads soliciting persons of the same gender to share a dwelling as a roommate.
True
False

A

True

333
Q

When marketing a home in an ethnic neighborhood it is permissible to run “for sale ads” only in the newspapers and fliers of that neighborhood.
True
False

A

False

334
Q

If a Fair Housing complaint is heard in a Federal Court, punitive damages may be awarded in addition to the actual damages.
True
False

A

True

335
Q

District judges typically hear cases brought by HUD regarding civil rights complaints.
True
False

A

False

336
Q

The Fair Housing Act does not prohibit religious organizations or nonprofit institutions operated in conjunction with a religious organization from limiting the sale, rental or occupancy of dwellings which it owns or operates from giving preference to persons of the same religion unless membership in such religion is restricted because of race, color or national origin.
True
False

A

True

337
Q

Familial status does not apply to a person who is in the process of acquiring custody of a minor child if that custody has not yet been attained.
True
False

A

False

338
Q

Julie is in the process of listing a home. As she is in the process of writing the listing agreement, the owner tells her not to show the house to a minority because he wants to protect his neighbors. What should Julie do?
Exclude that statement and tell the owner she will do her best.
Tell the owner she cannot accept the listing with those conditions.
Tell the owner to have his daughter sign a phony sales contract and when a minority shows interest she can tell the minority the house is sold.
Tell the owner the MLS will not let her submit the listing.

A

Tell the owner she cannot accept the listing with those conditions.

339
Q

Pregnant women are included as a protected class by virtue of Familial Status.
True
False

A

True

340
Q

If a real estate licensee suspects he or she is being tested, it is best to show the protected class more houses and offer more services than normal to ensure there will be no complaint filed.
True
False

A

False

341
Q

It is a violation of the Fair Housing Act for a licensee to advertise only in ethnic publications when soliciting business from the Spanish community.
True
False

A

True

342
Q

The owner of a duplex hires a real estate licensee to find him a renter for the side of the duplex the owner does not live in and tells him only to rent the unit to a white male. Is this legal?
Yes
No

A

True

343
Q

The Housing and Community Development Act of 1974 added sex as a protected class.
True
False

A

True

344
Q

A private club that limits rental occupancy of its lodgings to its members or from giving preference to its members is not a violation of the Fair Housing Act.
True
False

A

True

345
Q

A multiple listing service is not considered to be a housing facility and therefore not under the guidelines of the Fair Housing Act.
True
False

A

False

346
Q

The Iowa Civil Rights Commission may on occasion use testers to determine if there is housing discrimination occurring in certain communities.
True
False

A

True

347
Q

Blockbusting is the practice of scaring owners into selling their houses by using the fear of declining values because of the pending sale of a house in the neighborhood being sold to a minority.
True
False

A

True

348
Q

Article VII of the Civil Rights Act of 1968 was the first civil rights act passed by Congress.
True
False

A

False

349
Q

The Secretary of Housing and Urban Development administers the Fair Housing Act through the Office of Fair Housing and Equal Opportunity.
True
False

A

True

350
Q 
The Fair Housing Act does not apply to an owner selling his or her own home if they do not own more than how many houses at the time of the sale?
 2
 3
 4
 5
A

3

351
Q

It is not a discriminatory act to represent to a minority that a dwelling is not available for sale or rental when such dwelling is in fact available.
True
False

A

False

352
Q

The fine for a first offense violation of the Fair Housing Act could be as high as $15,000.
True
False

A

False

353
Q

In Iowa, there are nine classes of people included in the protected classes with respect to housing.
True
False

A

False

354
Q

The Iowa Legislature decided against adding sexual orientation to the Iowa Fair Housing laws because there could be discrimination without knowing a person is gay.
True
False

A

False

355
Q

The Iowa Legislature added sexual orientation and gender identity to the protected classes of the Fair Housing Act.
True
False

A

True

356
Q

A private person who buys and sells houses is exempt from the Fair Housing laws as long as he does not use a real estate licensee and sells not more than 3 houses each year.
True
False

A

False

357
Q

The limit of a first offense civil penalty for a housing discrimination violation is $11,000.
True
False

A

False

358
Q

An owner living in a four-unit apartment house is excluded from the rules of the Fair Housing Act unless he uses a real estate licensee.
True
False

A

True

359
Q

A condominium complex consisting mostly of a retired community can restrict the complex to people without children. This can be done without having any policies or guidelines in place designating it as housing for people 55 or older.
True
False

A

False

360
Q

A religious organization can be partially affected by the Fair Housing Act when renting units to people of the same faith.
True
False

A

True

361
Q 
Which of the following classes are included in the Iowa Civil Rights law that are not included in the federal Fair Housing Act?
 Age
 Sexual Orientation
 Gender Identity
 B and C
A

B and C

362
Q

Tom and Mary own a home as Tenants in Common. Tom passed away last month so Mary sold the home. A few days before the closing her real estate agent told her the closing will have to be delayed because Tom’s estate will have to be probated. Is her agent correct?
No
Yes

A

Yes

363
Q

A 1031 Exchange can be used to exchange an apartment house for a new home to be used as a residence.
True
False

A

False

364
Q

A freehold estate generally has a time limit attached by the grantor.
True
False

A

False

365
Q

A Land Trust could be used to keep the names of the owners private.
True
False

A

True

366
Q

A Life Estate can be terminated if the holder of the life estate moves out of the house.
True
False

A

True

367
Q

A proprietary lease is given to the owner of a Cooperative unit.
True
False

A

True

368
Q

A PUD is a Proposed Unit Development.
True
False

A

False

369
Q

A Tenant in Common title holder can sell his/her share of the property and not disturb the title of the other title holder.
True
False

A

True

370
Q

All owners of a cooperative could be held liable if liens are placed on any one of the units in the cooperative.
True
False

A

True

371
Q

Common elements in townhomes and condominiums are the hallways, elevators, surrounding land, parking lots, etc.
True
False

A

True

372
Q

Condominium owners hold a fee simple title to their unit but hold no title to any of the rest of the facility.
True
False

A

False

373
Q

Fee Simple Defeasible is an estate where a previous owner has placed a condition or restriction at transfer.
True
False

A

True

374
Q

Fee simple ownership of real estate is absolute ownership of the property.
True
False

A

True

375
Q

HOA fees are typically included as a monthly payment in the loan qualification process.
True
False

A

True

376
Q

Home Owner Associations typically have the authority to issue Special Assessments.
True
False

A

True

377
Q

In Iowa, the spouse of the owner of a property must sign the deed at the time of sale even though he or she is not named on the title.
True
False

A

True

378
Q

Iowa does not require the four provisions that all parties to the Joint Tenancy be named on one deed, the deed is executed, signed and delivered at one time, the deed must convey equal shares to all parties, and the owners must hold undivided possession of the property as joint tenants.
True
False

A

True

379
Q

John gives his son a house but puts a restriction in the transaction that the son must go drug-free for 10 years. If he does not, he will lose the house. What form of title does the son have?
Fee Simple Absolute
Fee Simple Determinable
Fee Simple Subsequent

A

Fee Simple Subsequent

380
Q 
John’s elderly mother is in a nursing facility. John finds out he has a terminal illness and is concerned about his mother’s continued care so he conveys land containing 80 acres of farm ground, the income from which is to provide for her care until her death. What kind of ownership does the nursing facility have?
 Fee Simple
 Life Estate
 Fee Simple defeasible
 Life Estate pur autre vie
A

Life Estate pur autre vie

381
Q

Living Trusts are used to avoid the need for probate upon the death of the owners.
True
False

A

True

382
Q

Steve’s mother and stepfather own a home together as Joint Tenants. Steve’s mother passed away and her will stipulates the home is to pass to Steve. Does Steve have a valid claim to the home?
Yes
No

A

No

383
Q

The beneficiary of a land trust cannot be the trustor.
True
False

A

False

384
Q

The only asset held in a Land Trust is land.
True
False

A

True

385
Q

The owner of a coop does not receive the same income tax advantages as holders of fee simple ownership of single-family homes.
True
False

A

False

386
Q

The owner of a cooperative unit holds a fee simple title to the unit.
True
False

A

False

387
Q

The tax advantage of mortgage interest deduction is an advantage on all homes the seller may own.
True
False

A

False

388
Q

The tax advantage on the gain on the sale of a personal residence may be used many times.
True
False

A

True

389
Q

The trustor of a living trust cannot be the trustee.
True
False

A

False

390
Q

The words “With full rights of survivorship” are not necessary in Iowa on a Joint Tenancy deed for the rights of survivorship to exist.
True
False

A

True

391
Q

The owners or Board of Directors can void the prospective sale of any unit in a Cooperative facility.
True
False

A

True

392
Q

There are no survivorship rights among owners in tenants in common.
True
False

A

True

393
Q

There is no income tax liability on the gain up to $500,000, of a personal residence held for 2 of the last 5 years for a married couple.
True
False

A

True

394
Q

A Life Estate is provided for by will and not by a deed.
True
False

A

True

395
Q

In Iowa, dower rights place the name of a spouse on the title automatically after a marriage.
True
False

A

False

396
Q

Joint Tenancy is the default tenancy in Iowa if another tenancy is not declared on a deed.
True
False

A

True

397
Q

Life Estate is an interest in real estate granted by deed for the life of the grantee with limitations.
True
False

A

True

398
Q

The best advantage of taking title as joint tenants is the right of survivorship.
True
False

A

True

399
Q

he elective share of a dower interest in Iowa is 25 percent.
True
False

A

False

400
Q

The main difference between a condominium and a cooperative is that with a condominium you actually own the unit and in a cooperative you have a lease.
True
False

A

True

401
Q

The owner of a townhome also holds title to the land under the particular unit.
True
False

A

True

Real Estate Pre-License (2 decks)

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