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Real Estate Exam 2022 > Terms > Flashcards

Terms Flashcards

1
Q

An option obligates the:

A

OPTIONOR TO SELL

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2
Q

Patrick has a mortgaged parcel subject to a recorded listing and a recorded contract of sale. There are 2 recorded easements across Patricks property which is the servant tenement. Patricks death would normally terminate

A

THE LISTING ONLY

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3
Q

Molly has given her broker a 6 month written listing. Molly has created a

A

SPECIAL AGENCY RELATIONSHIP

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4
Q

Which of the following creates a voluntary lien for a commercial property?

A

MORTGAGES

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5
Q

A broker who attempts to obtain listings in a racially changing neighborhood by warning sellers that minorities are moving into the area are guilty of

A

BLOCKBUSTING

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6
Q

The Real Estate Settlement Procedures Act requires

A

THE BEFORE CLOSING, THE LINDER GIVE THE BORROWER A GOOD-FAITH ESTIMATE OF CLOSING COSTS

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7
Q

Which of the following loans would NOT be regulated by RESPA?

A

PURCHASE MONEY MORTGAGE

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8
Q

Verizon Corp owns a parcel of land in Montana where it occupies the cell phone store. This is an example of:

A

SEVERALTY OWNERSHIP

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9
Q

Fogarty has a mortgage on his 3 acre home. The loan has no pre payment penalty. The interest in Fogarty’s home loan is determined on which of the following basis?

A

SIMPLE

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10
Q

Morgan is a licensed broker who manages residential property. In Morgans report To Victory LLC, the owner of an apartment complex, Morgan would classify all of the following as monthly operating expenses EXCEPT:

A

FURNACE REPLACEMENT EXPENCES

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11
Q

B&B Finance wants a provision in its mortgage loans to benefit it during periods of rising interest rates. Which mortgage clause would be advantageous to B&B if interest rates are expected to rise rapidly in the next 48 months?

A

ALIENATION

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12
Q

Visa has a 37,346 judgment against Paula on a credit card debt. This creates a judgement lien against Paula’s:

A

REAL PROPERTY AND PERSONAL PROPERTY

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13
Q

The selling price in an option situation is determined by:

A

THE TERMS OF THE OPTION

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14
Q

Victory LLC has leased an apartment to Lisa. Lisa has which of the following legal interests in the property?

A

NONFREEHOLD

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15
Q

Victory LLC has leased an apartment to Lisa ( the lessee). Victory’s legal interest under a lease is known as:

A

LEASED FEE

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16
Q

Ken is a property manager who has leased a store in a shopping center to Albertsons. Which provision would Ken want to put in Albertsons percentage lease to permit cancellation of the lease by Ken if Alberstons sales figures don’t meet expectations?

A

RECAPTURE

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17
Q

Mardi has negotiated a duplex lease from June 17 to October 8. The parties agree to share expenses on a 50-50 basis. Mardi’s lease is an example of a:

A

ESTATE FOR YEARS

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18
Q

Tina wants to sell her office building but learns that she will NOT be able to use a wrap-around mortgage because her existing loan has:

A

AN ALIENATION( DUE AT SALE) CLAUSE

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19
Q

There is a cloud on the title to Zebs farm but Zeb has been unable to obtain a quitclaim deed from the appropriate party who is now deceased. The best way for Zeb to clear the farms title is:

A

QUIET TITLE ACTION

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20
Q

The contract law requirement of consideration does which of the following?:

A

MAKES THE CONTRACT ENFORCEABLE BY CREATING MUTUAL OBLIGATIONS

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21
Q

Ashley furniture’s commercial building complied with the zoning when constructed but which now conflicts with the newest zoning ordinance is an:

A

NONCONFORMING USE

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22
Q

Julies quitclaim deed to her newly purchased home:

A

WILL TRANSFER TO JULIE WHATEVER OWNERSHIP INTEREST THE SELLER HAD

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23
Q

The Federal National Mortgage Association FNMA:

A

BUYS MORTGAGES IN A SECONDARY MORTGAGE MARKET

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24
Q

A property being appraised is in very good condition. However, the neighborhood is cluttered with junk vehicles. An appraiser using the cost approach would deduct for which of the following:

A

ECONOMIC OBSOLESCENCE

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25
Q

When appraising a commercial trip-flex, an appraiser will determine the buildings square footage by using:

A

EXTERIOR DIMENSIONS

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26
Q

Alexa is seeking a loan to enable her to purchase a bowling alley. Alexa would most likely request caps if the bowling alley loan is:

A

ADJUSTABLE RATE

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27
Q

Which of the following statements is TRUE about the direct sales comparison (market data) method of appraising property?

A

IT IS THE BEST METHOD FOR ESTIMATING THE MARKET VALUE OF IMPROVED SINGLE FAMILY PROPERTIES

28
Q

Which type of appraisal report would give the most complete report?

A

A NARRATIVE REPORT

29
Q

Which of the following federal institutions guarantees the repayment of loans made by private lenders?

A

VETERANS ADMINISTRATION

30
Q

Which clause would be included in a blanket mortgage used to finance residential lots in a subdivision?

A

A RELEASE OR PARTIAL RELEASE CLAUSE

31
Q

The acquisition of title where land, which was once covered by water, gradually becomes permanently dry land is known as:

A

RELICTION

32
Q

Velma will be living in a home that she will purchase under an 18 year contract for deed. The earliest time when Velma will acquire equitable title is when:

A

THE CONTRACT IS SIGNED

33
Q

Using land to its greatest economic advantage is called:

A

HIGHEST AND BEST USE

34
Q

Tim is trying to calculate the principal on his brand new home mortgage. The principal on Tim’s loan is:

A

THE TOTAL AMOUNT TIM BORROWED

35
Q

Colleen is listing a home which a bathtub but no shower. Colleen should tell the listing seller that the home suffers from:

A

FUNCTIONAL OBSOLESCENCE

36
Q

Nina has been hired to do a CMA for a 15 unit commercial rental property. Which appraisal method would Nina rely upon most heavily?

A

THE INCOME APPROACH

37
Q

Cecilia is a licensed property manager. She should know that she usually owes fiduciary duties to the:

A

LESSOR

38
Q

In a CMA, a Broker would refer liens and restrictive covenants as:

A

EMCUMBRANCES

39
Q

Desiree, a veteran, wants to purchase a home at a purchase price of 400,000 but the VA has appraised the property at 390,000. Desiree:

A

MUST PAY THE DIFFERENCE IN CASH AT CLOSING

40
Q

B&B Finance has decided to change points. The moat likely reason for this is to:

A

RAISE THE NET YIELD ON LOANS

41
Q

Art wants to sell his mortgaged home to a buyer who wishes to take over payments on Art’s 4% loan. Which mortgage clause may prevent such a transaction?

A

ALIENATION

42
Q

If the capitalization rate is moving upward for properties in rural Montana, the values of income properties will generally be:

A

DECREASING

43
Q

A charge to a taxpayer to pave a city street is called:

A

A SPECIAL ASSESSMENT TAX

44
Q

The purpose of a secondary mortgage market is to:

A

PROVIDE LIQUIDITY FOR PRIMARY LENDERS BY ALLOWING THEM TO CONVERT THEIR LOANS INTO CASH

45
Q

Which of the following would be an example of functional obsolescence?

A

OUTDATED DESIGN

46
Q

Several perspective buyers have made offers on one of your listed properties. Another possible purchaser, Kirkland INC is also interested in making an offer on the property. As the sellers agent, it is legal for you to tell Kirkland:

A

SEVERAL OFFERS HAVE BEEN MADE

47
Q

The buyer of habitable property must be given a Montana radon gas disclosure statement:

A

AT THE TIME THE OFFER IS MADE

48
Q

At closing of the sale of a commercial property in Montana, the entry for the earnest money deposit would be a:

A

CREDIT TO THE BUYER

49
Q

The Montana Board of Realty Regulation has the power to do which of the following?

A

ADOBT RULES REGULATING THE REAL ESTATE PROFESSION IN MONTANA

50
Q

The members of the Montana Board of Realty Regulation are:

A

APPOINTED BY THE GOVERNOR

51
Q

A salesperson receiving earnest money should promptly:

A

DELIVER THE MONEY TO THE SALESPERSONS SPONSORING BROKER

52
Q

The revocation of suspension of a real estate license may be appealed to the:

A

DISTRICT COURT

53
Q

All of the following participate on the secondary mortgage market EXCEPT:

A

FHA

54
Q

Which of the following statements about a contractors buy down on a new residential home is TRUE:

A

The front-end payments made to the lender allow more prospective buyers to qualify for a loan

55
Q

Porter has listed a NEW 2 story four plex which has no elevator but does have an indoor swimming pool on the 2nd floor. Porter should know that the Fair Housing Act requires which on the floors to be handicap accessible?

A

All ground unit floors

56
Q

Sheila has just given a mortgage on her single family home to B&B finance. Sheilas mortgage does NOT:

A

Contain a promise to pay

57
Q

Losses in value due to damage or wear and tear are called:

A

Physical deterioration

58
Q

Most useful to a broker as a guide to setting the listing price for a 25-year old single family residence is:

A

The propertys value based on a comparison of sales prices of similar properties in the area

59
Q

Porter is buying an investment property because her tax accountant is looking for tax write offs. On the investment property, which of the following may Porter depreciate under current federal income tax laws?

A

Property improvements

60
Q

Land is legally described by:

A

metes and bounds, government survey, and recorded plat

61
Q

Which of the following will terminate a buyer agency agreement?

A

Death of a buyer

62
Q

The real estate firm is excused from having a trust account if the clients funds are:

A

By a title insurance company

63
Q

Which of the following methods would most likely be used to describe a very large Montana ranch property?

A

Government Survey System

64
Q

A husband and wife in Montana have a deed which specifies that they hold the property under a tenancy by entirety. The couple:

A

Does not hold the valid title

65
Q

A montana broker must keep trust account records for:

A

8 years

Real Estate Exam 2022 (7 decks)

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