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Real Estate > Real Estate Test 1 > Flashcards

Real Estate Test 1 Flashcards

1
Q

The document that gives a person the authorization to act on behalf of another is

A. Disclosure with informed consent
B. Power of attorney
C. Attorney in fact
D. Agency acknowledgment

A

B. Power of attorney

A power of attorney gives you the authority to act on behalf of another

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2
Q

Which of the following is not considered fiduciary duty

A. Loyalty
B. Confidentiality
C. Accountability
D. Assumability

A

D. Assumability

The fiduciary duties an agent owes to a client are care obedience, loyalty, disclosure, accountability and confidentiality.

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3
Q

A sub agent represents the

A. Buyer
B. Seller
C. Government
D. None of the above

A

B. Seller

A sub agent represents the brokers client

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4
Q

A Co-broke is where

A. An office lists and sells the same property

B. Two offices are involved in the listing and selling of the same property

C. An office goes broke in the real estate business

D. Company brokerage that does business

A

B. Two offices are involved in the listing and selling of the same property

Both brokerages cooperate in the sale of the property

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5
Q

Which ownership contains the right of survivorship

A. Tenancy by entirety
B. Tenancy in common
C. Joint tenancy
D. Both A and C 

A

D. Both A and C

Tenancy in common does not include the right of survivorship, therefore ownership can be inherited.

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6
Q

Which type of ownership has a condition of married at the time of purchase

A. Ownership in severalty
B. Tenancy in common
C. Joint tenancy
D. Tenancy by entirety

A

D. Tenancy by entirety

The purchasers must be married to co-own as tenants by entirety

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7
Q

Which is the best deed for the grantee

A. Warranty deed
B. Bargain and sale deed
C. Quit claim deed
D. Judicial deed

A

A. Warranty deed

The general warranty deed provides the grantee with the most guarantees

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8
Q

The engineer that draws the dimensions of the land is called a

A. Engineer of drawing
B. Surveyor
C. Blueprinter
D. Appraiser

A

B. Surveyor

A survey will identify the boundaries and area of a parcel of land

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9
Q

An encumbrance is also known as

A. Anything that lessens the bundle of rights to property

B. An inconvenience

C. A disturbance

D. A nuisance

A

A. Anything that lessens the bundle of rights to property

An encumbrance is in imperfection on title to land.

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10
Q

A lien is

A. A violation
B. A claim or charge against something or someone
C. Lawsuit against someone
D. A foreclosure action

A

B. A claim or charge against something or someone

A lien is a charge against a property that provide security for a debt

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11
Q

Another term for transfer is

A. Alliance
B. Alienation
C. Avoidance
D. Attitude

A

B. Alienation

Alienation is transferring property to another

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12
Q

A freehold estate is

A. Personal property interest
B. Real property interest
C. Temporary property interest
D. Rental property interest

A

B. Real property interest

A freehold estate is ownership for an intermediate length of time

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13
Q

A leasehold estate is

A. Personal property interest
B. Real property interest
C. Forever property interest
D. Rental property interest

A

A. Personal property interest

A leasehold estate is a tenants right to occupy real estate

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14
Q

The only time the grantee signs the deed is when

A. The grantee backs out of the sale
B. The grantee assumes the grantors mortgage
C. The grantee pays all cash for the property
D. The grantee purchases furniture along with the property

A

B. The grantee assumes the grantors mortgage

The grantee will assume all liabilities of the existing mortgage

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15
Q

Actual eviction means

A. The tenant evicts themselves
B. The landlord illegally change the locks
C. The landlord evict the tenant through the legal process
D. An eviction goes wrong

A

C. Landlord evicts the tenant through the legal process

Actually eviction is the legal process for removing a tenant from the premises

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16
Q

What is the term when no specific end date is defined in a lease, but there is a repeated agreed-upon interval

A. Estate for years
B. Periodic estate
C. Estate at will
D. Estate at sufferance

A

B. Periodic estate

A periodic estate would be a week to week, month-month or year to year tenancy

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17
Q

A freehold estate is

A. Permanent ownership
B. Temporary ownership
C. Periodic ownership
D. Sometime ownership

A

A. Permanent ownership

A freehold estate is ownership in land for an intermediate length of time

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18
Q

The multiple listing service is a

A. Government program
B. Service for cooperating brokerages
C. Service for elderly people
D. Program for unemployed agents

A

B. Service for cooperating brokerages

The MLS is a data base of listings in a specific area for brokerages to cooperate in the sale of the listings

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19
Q

What type of listing is it, when a seller must pay commission to an agent, no matter who sells the property

A. An open listing
B. An exclusive agency listing
C. An exclusive right to sell
D. All of the above

A

C. An exclusive right to sell

The listing brokerage will earn commission no matter who brings the buyer. The brokerage will earn commission even if the seller finds the buyer.

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20
Q

Which listing is illegal to practice in Rhode Island

A. Net listing
B. Gross listing
C. Sub-listing
D. Contract listing

A

A. Net listing

Broker will earn any amount of money over a set sales price as commission. This will pit the broker’s commission against the sellers net proceeds

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21
Q

An owner who seeks a mortgage loan that includes three properties is what type of mortgage

A. A blanket mortgage
B. An FHA mortgage
C. Wraparound mortgage
D. Chattel Mortgage



A

A. A blanket mortgage

A blanket mortgage will encumber more than one property. Subdividers commonly use this type of mortgage

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22
Q

A junior mortgage is

A. A lien on personal property
B. The first mortgage recorded
C. Always made by the seller
D. A lien after the first mortgage (usually a second mortgage)

A

D. A lien after the first mortgage (usually a second mortgage)

A junior mortgage is one that is subordinate to an existent lien on the same property. Priority is usually set by recording date

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23
Q

Which of the following is an attachment that gives a lender the right to seize the personal property of a borrower who has not fulfilled the obligations of a loan

A. General lien
B. Mechanics lien
C. Specific lien
D. Acceleration lien

A

A. General lien

A general lien attaches to the person and all that they own

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24
Q

A lien that is paid first in the court auction is which of the following

A. Real estate tax
B.  mortgage
C. Mechanics
D. Materialmen’s

A

A. Real estate tax

Real estate taxes take priority over other liens

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25
Q

A deed is usually recorded at

A. The state department
B. The department of banking and insurance
C. The county clerk courthouse
D. The lawyers office

A

C. The county clerk courthouse

Properties are recorded in the county which they are physically located

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26
Q

Real estate appraisers are licensed by the

A. Association of appraisers
B. Banking department
C. Commerce department
D. State

A

D. State

Appraisers have to be licensed for many federally related transactions and also required to be licensed or certified by the state

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27
Q

Which of the following is seller financing

A. Sales financing
B. Personal loan
C. Primary mortgage
D. Purchase money mortgage

A

D. Purchase money mortgage

A purchase money mortgage is seller financing

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28
Q

How old must one be to qualify for a reverse annuity mortgage

A. 65
B. 62
C. 60
D. 55

A

B.62

To qualify for a Reverse annuity mortgage the person must be 62 or older

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29
Q

What approach does an appraiser use to estimate the value of a 1 to 4 unit dwelling

A. Cost
B. Income
C. Sales comparison
D. Investment

A

C. Sales comparison

Up to a four unit dwelling is residential

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30
Q

The number of square feet in one square yard is

A. 3
B. 4
C. 9
D. 5

A

C. 9

3 feet x 3 feet = 9 square feet

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31
Q

An appraisal report must be

A. Verbal with witnesses
B. In writing
C. On legal paper
D. Sent to the seller and buyer

A

B. In writing

The appraisal report should be in writing to be used as an estimate of value with a loan 

32
Q

A mortgage is a

A. Involuntary lien
B. Voluntary lien
C. Custom lien
D. Purpose lien 

A

B. Voluntary lien

The borrower would voluntarily give the lien to the lender as a security for the loan

33
Q

Assessed value is usually used by the

A. Bank
B. Lender
C. Government
D. Appraiser

A

C. Government

Assessed value is usually used when calculating property tax

34
Q

The process of combining adjacent parcels of land to form one larger parcel is

A. Parcel
B. Assemblage
C. Sub-division
D. Plot

A

B. Assemblage

Combined parcels for greater value is plottage. The process is assemblage.

35
Q

The engineer that draws an aerial view of the law is known as the

A. Civil engineer
B. Mechanical engineer
C. Land surveyor
D. Land engineer

A

C. Land surveyor

The surveyor will outline the property boundaries

36
Q

Which appraisal approach can be used for an apartment building

A. Direct sales comparison
B. Cost approach
C. Income approach
D. Insured approach

A

C. Income approach

An apartment building is an income producing building

37
Q

The landowner that has the right to use an easement over another persons land is

A. Servient
B. Dominant
C. Ownership rights
D. Encroachment

A

B. Dominant

The dominant estate benefits from the easement

38
Q

A visual easement is called

A. Affirmative
B. Negative
C. Subtract
D. Relay

A

B. Negative

A visual easement is referred to as being “negative”

39
Q

Regulation Z does not cover which of the following properties

A. One unit family dwelling
B. Two unit family dwelling
C. Commercial
D. Residential

A

C. Commercial

 Regulation Z regulates residential transactions

40
Q

Something of value in a contract is called

A. Credit
B. Concideration
C. Deposit
D. Prorations

A

B. Concideration

Consideration may be money, love and affection, nominal or something of value.

41
Q

The starting point in drawing a survey is called

A. Metes and bounds
B. Starting point
C. Point of origin
D. Point start

A

C. Point of origin

Sometimes called the point of beginning

42
Q

A licensee can lose their license for

A. Representing a client
B. Qualifying a buyer before showing a property
C. Doing a credit check on a potential tenant
D. Commingling funds of clients

A

D. Commingling funds of clients

Commingling is mixing client funds with personal or brokerage operation funds

43
Q

Which of the following is not Realty

A. Fee simple estate
B. Freehold estate
C. Timber
D. Life estate

A

C. Timber

Timber is severed from the land, making it personal property

44
Q

What is the term that describes government taking private property for public use

A. Encroachment
B. Easement
C. Eminent domain
D. Novation

A

C. Eminent domain

Eminent domain is the governments right to take private property for public use

45
Q

The landlord of a lease is called the

A. Grantor
B. Grantee
C. Lessor
D. Lessee

A

C. Lessor

The lessor is the owner

46
Q

Rent for a 50 x 80‘ office is $830 per month. What is the annual rent per square foot

A. $2.49
B. $10.37
C. $4.00
D. $16.60

A

A. $2.49

$830 x 12= $9960 rent/ year. 50’ x 80’ = 4000 square feet. $9960/4000 square feet= $2.49 per sq ft

47
Q

Which of the following is an example of the bundle of rights

A. Mortgage
B. Air rights
C. Leases
D. All of the above

A

D. All of the above

The bundle of rights consists of possession, enjoyment, disposition, control and exclusion

48
Q

Which method of advertising is usually the most expensive

A. Newspapers
B. Magazines
C. Radio and TV
D. Word of mouth

A

C. Radio and TV

Radio and television are most costly

49
Q

A lot is 2.5 acres. How many square feet is that

A. 66,750
B. 103,900
C. 111,400
D. 108,900

A

D. 108,900

2.5*2.5=108,900 square feet

50
Q

Which fiduciary duty is involved when temporarily holding someone’s money

A. Disclosure
B. Loyalty
C. Accountability
D. Confidentiality

A

C. Accountability

An agent must be able to account for all monies received from a client

51
Q

Another type of exclusive listing other than an exclusive agency listing is called an

A. Exclusive right to sell
B. Exclusive selling listing
C. Exclusive tenancy
D. Exclusive open listing

A

A. Exclusive right to sell

The exclusive right to sell listing provides maximum protection for the brokerage

52
Q

The statute agents follow when conducting real estate services is

A. Title 98A, Chapter 23
B. Article 78A
C. Chapter 5–20.5
D. Article 62A

A

C. Chapter 5–20.5

Rhode Island General laws chapter 5–20.5

53
Q

A kickback is

A. Allowable under certain instances
B. Only allowable if the seller agrees
C. Illegal to take
D. None of the above

A

C. Illegal to take

A kickback is an honorant fee for services not provided

54
Q

A severe crime is called a

A. Violation
B. Lien
C. Felony
D. Misdemeanor

A

C. Felony

A felony is a serious violation. More severe than a misdemeanor

55
Q

A client should receive

A. Full representation and service
B. Only acknowledgment
C. Full attention
D. Client privileges

A

A. Full representation and service

An agent should provide all fiduciary duties to a client. 

56
Q

A trustee represents the

A. Beneficiary
B. Seller
C. Buyer
D. Sales agent

A

A. Beneficiary

The beneficiary is the lender.

57
Q

Which is the statute that governs real estate licenses in Rhode Island

A. Article 9A
B. Article 7B
C. Chapter 5–20.5
D. Article 12A

A

C. Chapter 5–20.5

Rhode Island general logs chapter 5–20.5 is the statute that governs a real estate licensee

58
Q

Real estate professionals are required to take how many hours of continuing education every two years

A. 20
B. 35
C. 17.5
D. 24

A

D. 24

Real estate professionals are required to take 24 hours of continuing education every two years

59
Q

What is the term when another state will recognize the qualifications and education held by Rhode Island licensee when applying for a real estate license in that state

A. Exchange
B. Reciprocal
C. Novation
D. Escheat

A

B. Reciprocal

The law of reciprocity allows you to use your real estate license education and qualifications in other states while applying for a license in that state

60
Q

What is the license which allows one to deal with apartments and charge fees

A. Apartment showing vendor
B. Apartment rental person
C. Apartment exchange agent
D. Apartment information vendor

A

D. Apartment information vendor

These individuals pay fee for licensing and they are only able to post information about available apartments

61
Q

Who can sell real estate and charge a fee without a license

A. Auctioneer
B. Property manager
C. For sale by owner
D. Attorney

A

D. Attorney

An attorney has the right to act as a real estate broker by holding a law license. If any attorney chooses to hire agents, they must apply for a brokers license.

62
Q

For a deed to be recorded, it must be in writing and

A. Signed by the grantee
B. Delivered immediately to the court
C. Signed by the grantor (S)
D. Have at least two grantors

A

C. Signed by the grantor (S)

For a deed to be considered valid the grantor (owner) must sign the deed. The grantee does not have to sign the deed for it to be a valid transfer

63
Q

Which of the following is a choice for a broker license

A. Single
B. Substitute
C. Implied
D. Associate

A

D. Associate

An associate broker is one that has the credentials to be a licensed broker but chooses to work under another broker

64
Q

Which of the following is the term for allowing a change to occur in a real estate transaction between two or more parties

A. Disclosure with informed consent
B. Allowment in writing
C. Statute of frauds
D. Consent by agency

A

A. Disclosure with informed consent

Changes can be made to any real estate transaction as long as all parties are informed and all parties agreed to the change. We call this disclosure with informed consent.

65
Q

A broker can charge commission from both the seller and buyer only if

A. The buyer as a friend
B. Seller gets an offer above the listing price
C. All parties are aware of the situation
D. It is paid in cash

A

C. All parties are aware of the situation

A broker can charge both sides of the transaction as long as all parties to a transaction are aware and give consent.

66
Q

Another term for the transfer of real property is

A. Alienation
B. Condemnation
C. Escheat
D. Implied

A

A. Alienation

Alienation is the giving or transfer of real property to another.

67
Q

A deed must

A. Show the legal usage of the structure
B. Show the selling price of the house.
C. Be in writing
D. Be recorded

A

C. Be in writing

All deeds must be in writing to be valid. A deed does not have to be recorded to be valid.

68
Q

Real estate plus the ______ results in real property.

A. Land
B. Fixtures
C. Trees
D. Bundle of rights

A

D. Bundle of rights

Real property is more than just the land itself, it also includes the RIGHTS that come with the ownership. These rights are possession, control, enjoyment, exclude in disposition.

69
Q

Another term for personal property is

A. Mobile
B. Trade
C. Chattel
D. Alienation

A

C. Chattel

Personal property is all that does not fit the definition of real property. Sometimes also called chattel.

70
Q

Which of the following terms defines when one entity controls a certain market

A. Status
B. Constitute
C. Gross profit
D. Monopoly

A

D. Monopoly

A monopoly is when one company controls the entire market.

71
Q

A percentage lease usually occurs

A. In a parking lot
B. In an apartment building
C. In a shopping mall
D. In a home rental

A

C. In a shopping mall

A percentage lease is when a retailer pays a land owner a percentage of the earnings. This is most common in retail because the landlord is partially responsible for bringing the traffic to the star location.

72
Q

All of the following are government agents in the secondary mortgage market EXCEPT

A. FNMA
B. HUD
C. FHLMC
D. GNMA

A

B. HUD

The Department of Housing and urban development (HUD) Is a U.S. government agency created in 1965 To support community development and homeownership

73
Q

A pro forma is a

A. Report of a properties actual past income – generating performance.
B. Measurement of the degree of investor involvement.
C. Projection of a property’s likely performance in the future.
D. Device for calculating the effect of leveraging on accelerated depreciation

A

C. Projection of a property’s likely performance in the future.

A pro forma is a projection of a properties future performance.

74
Q

To become a real estate broker in Rhode Island, and individual must have how many years of experience as a sales person

A. 6
B. 12
C. 18
D. 2

A

D. 2 years

To become a broker, the sales person needs two years of experience.

75
Q

All of the following are fiduciary duties owed by an agent to a principal EXCEPT

A. Loyalty
B. Accounting
C. Obedience
D. Interest

A

D. Interest

Interest is not one of the responsibilities.

Real Estate (4 decks)

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