Real Estate Review Flashcards
Which of the following is not described as personal property?
1) chattels
2) trade fixtures
3) Embelments
4) Fixtures
4) Fixtures
Certain items on the premises that are installed by the tenant and are related to the tenant business are called
1) fixtures
2) emblements
3) trade fixtures
4) easements
3) trade fixtures
Real estate is defined as
1) the earths surface extending downward to the center of the earth and upward to infinity
2) interest, rights, and benefits that are included in the ownership of real estate
3) land above and below the Earth’s surface plus all things permanently attached to it
4) the ownership of real estate
3) land above and below the Earth’s surface plus all things permanently attached to it
According to law, a trade fixture is
1) a fixture
2) an easement
3) personality
4) a license
3) personality
The real cost of owning a home include certain cause or expenses that many people overlook. All of the following are such costs or expenses except
1) income lost on cash invested in the home
2) the interest paid on borrowed capital
3) maintenance and repair expenses
4) property taxes
2) the interest paid on borrowed capital
A basic homeowners insurance policy would protect all of the following except
1) fire and lightning
2) earthquake and volcanic action
3) windstorm and hail
4) water damage caused by a leaking pipe
2) earthquake and volcanic action
When the demand of a commodity decreases
1) prices tend to rise
2) prices tend to drop
3) supply tends to rise
4) supply tends to drop
2) prices tend to drop
Personal property includes all the following except
1) chattels
2) trade fixtures
3) Embelments
4) fixtures
4) fixtures
Fixtures are
1) real property
2) chattels
3) removable by the tenant before the expiration of the lease
4) removable by the tenant after the expiration of the lease
1) real property
All of the following our economic characteristics of land except
1) scarcity
2) permanence of investment
3) uniqueness
4) area preference
3) uniqueness
Legally, the term improvements refers to all the following except
1) sidewalks
2) sewers
3) shrubbery
4) retaining wails
3) shrubbery
Most homeowners insurance policies contain which of the following clauses?
1) a property improvement clause
2) a coinsurance clause
3) a co-ownership clause
4) A property devaluation clause
2) a coinsurance clause
If the owner of the dominant tenement becomes the owner of the servient tenement and merges the two properties:
1) easement becomes dormant
2) the easement is unaffected
3) the easement is terminated
4) the properties retain their former status
3) the easement is terminated
An ownership interest that is based on an annual occupancy intervals is a
1) leasehold
2) timeshare
3) condominium
4) cooperative
2) timeshare
The Illinois Land Sales Registration Act regulates the offering, sale, lease, or assignment of any improved or unimproved land offered as part of a common promotional plan and divided into how many lots?
1) 2 or more of 5 acres or less
2) 10 or more
3) 25 or more
4) Fewer than 25
3) 25 or more
Judgment liens are:
1) specific liens
2) voluntary liens
3) priority liens
4) involuntary liens
4) involuntary liens
The current value of the property is $248,500. The property is assessed at 40% of the current value, with an equalization factor of 1.5 applied to the assessed value. If the tax rate is four dollars per $100 of assessed value, what is the amount of the tax due on the property?
1) $5640
2) $5964
3) $51,600
4) $52,400
2) $5964
If the market value of the property is $584,500 and assessed ratio is 40%, what are the monthly taxes if it’s text it is 38 meals?
1) $5887.25
2) $5942.50
3) $584.50
4) $587.72
3) $584.50
When a lien against a parcel of real estate may result from a lawsuit currently before the court, one examining the public records would look for:
1) the chain of title
2) a lis pendens
3) A suit to quiet title
4) judgment lien
2) a lis pendens
The current market value of the property is $335,000. For tax purposes, it is assessed at 40% of the market value. The tax rate is four dollars per $100 of assessed value. What is the amount of the tax due?
1) $5360
2) $5625
3) $5705
4) $5740
1) $5360
All the following are specific liens except
1) real estate taxes
2) judgments
3) mortgages
4) mechanics lien
2) judgments
The assessed value is based on:
1) sales price of comparable properties
2) tax adjustment of the property
3) Board of appeals evaluation
4) market value
1) sales price of comparable properties
Specific liens include all of the following except for:
1) real estate taxes
2) judgments
3) mechanic liens
4) special assessments
2) judgments
Debts that are incurred by individual and become liens against all real property owned by that person are:
1) voluntary liens
2) specific liens
3) fiduciary encumbrances
4) special assessments
1) voluntary liens
Which of the following is not a specific lien?
1) ad valorem taxes
2) mechanics lien
3) IRS lien
4) special assessment
3) IRS lien
All of the following are true statements about a condominium except:
1) a declaration must be filed before any units may be sold
2) each unit owner has a fractional undivided interest in the common elements
3) each owner receiving separate real estate tax statement
4) Each owner has a proprietary lease with the association of his or her own unit
4) Each owner has a proprietary lease with the association of his or her own unit
In Illinois all the following are examples of co-ownership except for
1) community property
2) joint tenancy
3) tenants-in-common
4) Tenancy by the entirety
1) community property
Illinois law makes which of the following presumptions about how multiple grantees hold title to a property?
1) they hold title as joint tenants
2) they hold title as tenants-in-common
3) there is a right of survivorship between the owners
4) the property is held in the entirety
2) they hold title as tenants-in-common
Illinois landlords must return the tenants security deposit within how many days of the tenants moving out?
1) 15-30 days
2) 30-45 days
3) 45-60 days
4) 60-75 days
2) 30-45 days
Nephews renting an apartment and pays a secure deposit $500. How frequently should Matthew expect to receive payments of the interest accrued on his deposit from his landlord?
1) monthly
2) Annually
3) when Matthew moves out
4) Illinois landlords are not required to place security deposits in an interest-bearing account
2) Annually
The primary purpose of the deed is to:
1) prove ownership
2) transfer title right
3) give constructive notice
4) prevent adverse possession
2) transfer title right
In which of the following situations with a quit claim deed be the most appropriate type of deed to use?
1) to convey a marketable title
2) to release a nominal real estate interest
3) to remove a cloud on title
4) to warrant that a title is valid
3) to remove a cloud on title
Which of the following best describes the covenant of quiet enjoyment
1) the grantor promises to obtain and deliver any instrument needed to make the title good
2) the grantor grantee guarantees that if the title fails in the future, he or she will compensate the grantee
3) The grantor warrants that he or she is the owner and has the right to convey title to the property
4) the grantor guarantees that the title will be good against the title claims of third parties
4) the grantor guarantees that the title will be good against the title claims of third parties
Phil owns a one-quarter undivided interest in the parcel of land, and he wants his interest transferred to his sister Elaine. As a general rule, which of the following actions will transfer Phil’s undivided interest out of his name?
1) The redemption from a foreclosure sale
2) the making and the signing of a will
3) the delivery of the deed during the owner’s lifetime
4) the acceptance by signature of an offer to purchase
3) the delivery of the deed during the owner’s lifetime
A valid will devises the descendant’s real estate after the payment of all debts, claims, inheritance taxes and expenses through the:
1) executor or administrator of the estate
2) law of testate succession
3) granting clause established in the will
4) court action known as probate
1) executor or administrator of the estate
The type of deed in which the granting clause states “convey and warrant” is a:
1) quit claim deed
2) bargain and sale deed
3) general warranty deed
4) re-conveyance deed
3) general warranty deed
What will happen to the real estate if the deceased owner did not write a will and has no heirs?
1) the ownership will pass by device
2) the ownership will escheat
3) the courts will seize the ownership
4) ownership will revert to the previous owner
2) the ownership will escheat
Which of the following is essential to the validity of an Illinois deed?
1) acknowledgement
2) seal
3) delivery
4) probate
3) delivery
James died leaving in a state of $150,000 in cash and two parcels of real estate. In his final will, James completely disinherited his wife. James is survived by his spouse and one child. If James’s wife elects to renounce the will, how much will she receive under Illinois statute
1) nothing; Illinois does not recognize a spouse or right of renunciation
2) $50,000, one-third of each parcel of real estate
3) $75,000 and one half of each parcel of real estate
4) $150,000 and both parcels of real estate
2) $50,000, one-third of each parcel of real estate
The recorded history of matters that affect the title to a specific parcel of real estate property is its:
1) chain of title
2) certificate of title
3) title insurance policy
4) abstract of title
4) abstract of title
The body of law that covers topics and purity agreements, financial statements, in bulk transfers is the:
1) American land title law
2) uniform commercial code
3) parole evidence rule
4) statute of limitations
2) uniform commercial code
What is the major difference between the owner’s title policy and the mortgagee’s title policy?
1) the owners policy covers the sale price of the property, while the mortgagee’s policy covers only the loan amount
2) the owners policy covers the owner for the loan amount, while the mortgagee’s policy covers the sale price of the property
3) premium for the owner’s policy is paid monthly, while the premium of the mortgagee’s policy is a one-time fee
4) there is no difference between the two policies
1) the owners policy covers the sale price of the property, while the mortgagee’s policy covers only the loan amount
The process by which expenses are handled at the settlement of a real estate transaction so that both the buyer and the seller pay their respective portions of the debt is called
1) assessment
2) proration
3) balancing
4) reconciliation
2) proration
Accrued interest Orem and assume mortgage loan is entered on the closing statement as a
1) credit to the seller and a debit to the buyer
2) debit to the seller in credit to the buyer
3) credit to both the seller and the buyer
4) debit to both the seller and the buyer
2) debit to the seller in credit to the buyer
Which of the following best expresses the statutory method of proration
1) yearly charge / 360 days
2) yearly charge / 365 days (366 in leap year)
3) yearly charge / 12 months
4) yearly charge / 52 weeks
1) yearly charge / 360 days
An agent for the seller, real estate broker can:
1) guarantee a prospective buyer that the seller will except an offer at the listed price and terms
2) solicit an offer to purchase the property from a buyer
3) advise a prospective buyer of the best manner of taking title to the property
4) change the terms of the listing contract on behalf of the seller
2) solicit an offer to purchase the property from a buyer
Law of agency:
1) has been placed by statutory law
2) defines the rights and duties of the principal and agent
3) obligates both the listing agent and the buyers agent to work in the sellers we have
4) creates a general agency relationship between the agent and the principal
2) defines the rights and duties of the principal and age
The turn “rescind” means:
1) change
2) cancel
3) substitute
4) subordinate
2) cancel
Which one of the following is not essential to the formation of a contract?
1) offer
2) acceptance
3) consideration
4) performance
4) performance
An offeree has the right to ______ an offer
1) reject
2) revoke
3) resend
4) release
1) reject
In an option to purchase real estate, the optionee:
1) must purchase the property, but may do so at any time within the option.
2) has no obligation to purchase the property
3) is limited to a refund of the option consideration if the option is exercised
4) is prospective seller of the property
2) has no obligation to purchase the property
Of the following, who would have equitable title to property?
1) the buyer in the sales contract and the vendor in a land contract
2) the buyer in the sales contract and the vendee in a land contract
3) the seller in the sales contract and the vendor in a land contract
4) The seller any sales contract in the vendee in a land contract
2) the buyer in the sales contract and the vendee in a land contract
All of the following are false regarding the status of a sales contract except
1) death of the seller will not affect the status of a sales contract
2) death of the buyer would not terminate the sales contract
3) destruction of the premises would terminate the sales contract
4) death of the broker would terminate the sales contract
3) destruction of the premises would terminate the sales contract
A buyer and a seller signed a binding sales agreement. Three days before closing, the property was destroyed by a tornado. Under Illinois law, which of the following is true?
1) the buyer bears the risk of loss under the common-law and must complete the transaction
2) the seller cannot enforce the contract and must return all earnest money to the buyer
3) if the buyer has possession of the property, he or she is not required to pay the full contract price
4) once the seller has accepted an offer, he or she is no longer liable for any damages to the subject property
2) the seller cannot enforce the contract and must return all earnest money to the buyer
