question

A lessee had two years to go on a five-year lease. Which would release the tenant from further obligation to pay rent after they voulintarly moved out? a. constructive eviction b. habendum c. habeus corpus d. actual eviction

answer

a

question

the lender wanted a very thorough appraisal report fot he shopping mall being considered for financing which type of appraisal report would accomplish that? a. check list b. survey c. narrative d. letter form

answer

c

question

a buyer wants to assume a loan without taking on any personal liability for the loan in the purchase offer relative to the loan he should state he will. a. take the title on a subject to basis b. hypothecate and accelerate the loan c. subordinate to the sellers interest d. assume the loan and make the payments

answer

a

question

the listing agent advertses his listing on the mls as instructed by the seller and at the agreed list price of $300,000 a buyer offers the seller $300,000 in writing with an earnest money deposit of 3,000 which of the following statements are true? a. the seller can either accept , reject or counter the offer b. the listing broker must wait 72 hours before presenting the offer to give other buyers anopportunity to purchase the property c. because the offer is full price the seller is obligated to accept the offer d. the seller must pay a commission and accept the offer

answer

a

question

what term best describes a situation where the lessor collects rents from the tenants and pays expenses out of those rents? a. participation lease b. net lease c. gross lease d. license estate

answer

c

question

Bob the buyer has mad on offer on sam the seller's property. that offer has been accepted, bob is working on finalizing his loan for the purchase as part of the continencies of the agreement what kind of agreement exists between bob and sam a. sale pending b. boidable c. executed d. executory

answer

d

question

which of the following terms is NOT applicable to an adjustable rate mortgage? a. margin b. index c. cap d. discount

answer

d

question

a purchaser should obtain which one of the following to be sure there are no encroachments a. title insurance b. deceleration of offset c. survey d. encroachment protection policy

answer

c

question

the borrower used a document which gave the trustee power of sale as the security for the loan to buy the home what document would contain that power? a. uniform real estate contract b.deed of trust c. trustee's deed d. mortgage

answer

b

question

a deed of trust differs from a mortgage instrument in that a deed of trust allows the lender a more streamlined process to foreclose on a property and bypass the judicial process a. true b. false

answer

a

question

two people buy a property together if one dies full ownership will automatically belong to the other this is called a. joint tenancy b. tenancy in common c. tenancy at sufferance d. community property

answer

a

question

tom is asking 100k for his home. kyle calls and offers full price over the phone tom accepts the offer this contract would be considered a. unilateral b. void c. unenforceable d. voidable

answer

c

question

a broker can be charge with violating the sherman antitrust act if he says to a seller a. we never discount the commission b. we cant possibly charge less than the rate established through the mls c. the commission is fully negotiable between the broker and the seller d. our company usually charges 6% for this type of listing

answer

b

question

d wanted to buy a home from k. but wouldnt buy it unless the pool table came with it. d and k decide that the pool table is personal property what contract would be the best tool for the pool table table purchase a. handshake and one hug b. pinky swear c. bill of sale d. repc

answer

c

question

when a listing is taken how does the agent confirm the amounts owed on the mortgages a. have the title company balances b. order an estopple certificate c. the listing agent should personallly contact all lien holders and verify balances d. the seller must list all lien amounts on the sellers proceeds sheet

answer

b

question

all of the following are about residential appraisals except a. the appraisers final estimated market value readily allows for an increase in settlement costs up to 10% before the closing b. since a borrowers available cash for closing is generally limited and the lending guidelines are rigid the loan originator should carefully review the appraisal for any errors c. a successful closing can be highly dependent on the appraisers opinion of value d. a lender will generally limit the loan to a max percentage of the appraised value of the property

answer

a

question

a uniform land contract could best be described as a a. real estate purchase contract b. trust deed and note c. installment contract d. listing

answer

b

question

what do you call the person who signs a document on behalf of another a. client b. attorney in fact c. customer d. power of attorney

answer

d

question

in real estate the term title refers to a. any publicly recorded document that signifies one of more of the four property rights b. a valuable piece of paper that can be bought and sold c. a legal concept that signifies ownership of real property d. a contract that gives a lender the right to foreclose if all the obligations are not met

answer

d

question

which kind of title insurance would provide the most protection for the buyer of the property a. extended owners policy b. alta lenders policy c. standard policy d. plain language policy

answer

a

question

the phrase the primary evidence of a loan best describes a. promissory note b. the mortgage document c. the trust deed d. the defeasance clause

answer

a

question

an upfront cost the lender charges to the borrower usually a percent of the loan amount that generates profit to the lender with factors in the lenders cost of getting money a. discount points b. document prep fee c. title insurance fee d. origination fee

answer

d

question

fair market value is primarily based on a. government price controls b. the willing buyer willing seller concept c. a cost of replacement d. assessed value

answer

b

question

m's back yard measured 56 feet deep by 82 feet wide. m is going to buy grass to seed the lawn the package indicates how much is needed in square yards. how many square yards are in m's back yard? a 4592 b. 765 c. 170 d. 510

answer

d

question

which is not correct about PMI a. in order to remove PMI the lender must receive a request from the borrower b. for high risk loans lenders are required to automatically remove PMI when the loan balances 77% of the original purchase price c. to request cancellation of PMI you must be current on your loan d. you may request PMI removal when the current loan balance equals 80% of the original purchase price or current appraised value whichever is less

answer

a

question

a person lived on a property openly and notoriously under color of title this situation has to do wiht a. an owner who holds a quit claim deed b. adverse possession c. fee simple defeasible d. easement by perscription

answer

b

question

a particular house that was for sale had 60 amp service the recommendation these days is for 100 amps this is an example of a. economic obsolence b. physical deterioration c. functional obsolence d. deferred maintenance

answer

c

question

when considering income tax issues which of the following relates to the phrase two of the last five years? a. home office deduction b. 550,000 exemption c. 250,000 exemption

answer

c

question

a property description that uses angles and degrees is referred to as a lot block and plat b. metes and bounds c. government survey d. an informal description

answer

b

question

one of the more common methods for assessing property taxes is based on a percentage of the value of the property also known as a. assessed value taxes b market value taxes c. ad valorem taxes d. proportionate contribution taxes

answer

c

question

an industrial complex was built near a residential area in order to preserve the value of the residential area which of the following would be the most likely to be employed a. zoning commission has no authority in such matters b. the local government would buy up the area in between by exercising eminemt domain c. zone the area between the two c1 d. create a buffer zone by zoning restriction

answer

d

question

the three tools used by the federal reserve to reduce the support of money are a. increase the reserve requirement lower the 10 year treasury bond rate raise the discount rate b. increase reserve requirement raise the discount rate sell securities in the open market c. increase enforcement of reg z raise the reserve requirement buy securities in the open market d. sell securities in the open market raise lending standards raise the reserve requirement

answer

b

question

which of the following requirements must be met for a REIT to be legal? a. 1000 members; all funds paid out as profit b. 100 members, 90% paid out as profit c. any number of members and 95 % paid out as profits d. 1000 members 96% paid as profits

answer

b

question

once the appraiser calculates the adjusted prices of all the comparables the final step for developing a single estimate of market value is called a. gather data and investigate b. weighted substitution c. reconciliation d. highest and best use

answer

c

question

which statement best describes the purpose of a mortgage document a. it places a lien on the property allowing the mortgagee to seize the property if the mortgagor fails to honor all obligations spelled out in the mortgage b. it spells out the interest rate and all other terms of the loan c. it provides legal proof of that various property rights of the borrower d it allows the mortgagor to seize the personal assets of all mortgagees who sign the document

answer

a

question

an essential element of a deed is ____ which can be stated in terms known as valuable or good a. consideration b. witnesses and a notary c. the granting clause d. habendum

answer

a

question

which of the following is not part of an appraisal a. appraisers best estimate of value b. the signauture of the appraiser c. the date of the appraisal report d. a description of the neighborhood surrounding the property

answer

d

question

people who execute a document are referred to as a. notary republics b. testators c. signatories d. executors

answer

c

question

the key difference between a promissory note and a mortgage is a. promissory notes are signed by people personally obligated to repay the loan b. there are no personal guarantees on a promissory note c. a promissory note can be assumed by a new property owner d. a mortgage is signed by anyone obligated to repay the loan

answer

a

question

the government took r's property for a highway and paid r fair market value which of the following gives the right for this type of action? a. respa b. condemnation c. eminent domain d. reg z

answer

c

question

p who is 25 did not realize q was only 17 and entered into a contract with q. p no longer wants to go through with the deal but q does which of the following statements apply? a. the contract is valid and binding on both p and q b. this definitely is a vlidable contract for p c. the contract is void if q didnt have a co-signer d. p has no choice but it is a voidable contract for q

answer

d

question

d purchased a lot and subsequently built a house planted a tree and build a garage separete from the house which term describes this process? a. encroachment b. hypothecation c. accession d. severance

answer

c

question

an apartment building with 12 units has 6 covered parking spaces all of which are assigned a handicapped tenant moves in. which of the following is true? a. the owner must make provisions so the handicapped person can have a parking place. b. under no circumstances does a parking space have to be provided if the owner doesnt want to do it c. the handicapped person must be given a space as soon as one becomes available if it is necessary for his enjoyment of the property d. the owner must add additional space if one isnt available

answer

c

question

the agent presented an offer on the contract in the space for the buyers name was written an undisclosed buyer this would be an example of which type of principal a. illegal b. fully disclosed c. undisclosed d. partially disclosed

answer

d

question

when the two parties agree in writing to have the agent act as a limited agent most fiduciary duties still apply but the principals are giving up something which best describes the change in fiduciary duties under limited agency a. loyalty obligations now include both buyer and seller b. there are limitations on the duty of obedience required for the agent c. the loyalty duty for single agents is replaced with neutrality d. the full disclosure duty has been expanded to include both parties

answer

c

question

when the buyer purchased the property using a uniform real estate contract what is the interest of the buyer called? a. deed b. equitable interest c. possession interest d. title

answer

b

question

the main purpose of title III of the americans with dissabilities act is to a. provide adequate parking spaces for those with disabilities b. to make sure a handicapped person has a place to live c. provide equal access to goods and services d. provide employment opportunities for the disabled

answer

c

question

about 35% of the credit score consists of a. the applicants most recent 6 months of payment behavior b. the applicants mix of trade accounts open c. the applicants attitude toward taking on new debt d. how promptly and consistently the applicant pays his obligations

answer

d

question

when taking a listing agent j had sellers who insisted their house was worth more than the one down the street for sale even though both houses were basically the same j explained that buyers wont pay any more than they have to get what they desire this is the principle of a. contribution b. substitution c. progression d. balance

answer

b

question

in selling their home the sellers are willing to let the buyers take over their existing loan the lender agrees but the sellers want to be sure they have no further liability for that loan amount they could ensure the lack of liability with an a. release of lien b. novation c. fiduiciary agreement d. assignment

answer

d

question

the main purpose of title insurance is a. to compensate the policy holder for any losses incurred from an unidentified defect in the title b. the prove the seller has the right to sell the property c. to compensate the property owner if the seller does not have sufficient funds to clear all liens based on discounted selling price d. to compensate the lender in the event of loss due to default on the loan

answer

a

question

when a lender confirms a specific loan amount and agrees to the interest rate this process is referred to as a a. disclosure b. interest insurance c. lock d. origination fee

answer

c

question

which of these contain only the essential elements of a real estate contract a. mutual consent legality consideration recordation b. legal purpose capacity mutual consent in writing c. in writing capacity acknowledgement d. in writing consideration notarization

answer

b

question

which of the following falls into the category of appurtenances a. improvement b. privilege c. personal property d. acceleration

answer

a

question

the seller s was agreeable to listing the house and paying a commission if a real estate agent found a buyer however s wanted to be able to avoid a commission if a neighbor bought the house what would accomplish this for s a. an exclusive right to sell contract b. a limited agency agreement c. a single party exclusive right to sell d. an exclusive agency contract

answer

d

question

which of the following is the best definition of the term redlining a. spreading rumors of minorities moving into the developments b. refusing loans in certain areas because of is ethnic makeup c. refusing to rent an unmarried couple who want to live together d. showing homes in a largely white area to people of color

answer

b

question

when a person builds an improvement that extends onto the property of a neighbor it is considered a a. encroachment b. easement c. defeasance d. injunction

answer

a

question

george smith who owns his property fee simple grants a three year lease to tom green during the second year of the lease george sells the property to ned gray what happens to the lease when the sale closes a. property cannot be sold and title transferred to a new owner when a lease is in effect b. it must be negotiated between gray an dmr green the leasee c. the lease remains in effect wiht mr gray and mr green d. it terminates

answer

c

question

which of the following statements is true of both truth in lending and respa and regulations a. booklet settlement costs and you must be given b. they cover single to four family dwellings c. they cover loans to small businesses d. apr must be used in advertising

answer

b

question

a sales agent in utah negotiated an offer on an old home which had problems with the electrical system the agent did not make an inspection or suggest one be done the seller says everything works when the buyer asked the agent said everything is in good working order the sales agent is guilty of a. nothing, because of what the seller said b. nothing because there was no intention of misrepresentation c. nothing because of the fiduciary relationship to the seller d. making a substantial misrepresentation

answer

d

question

in utah property taxes become delinquent a. jan1 b. nov 31 c. dec 1 d. nov 30

answer

c

question

discount points could best be described as a. money charged to originate the loan b. an additional security deposit given to the bank to secure the loan c. a reward the bank gives for referring a new borrower d. a way to raise the effective yield of the loan

answer

d

question

z went to a trust deed foreclosure sale on an investment property that looked like a good deal there were other investors but z won the bid which of the following would z expect to receive a. sheriffs deed b. trust deed c. trustee's deed d. deed of trust

answer

c

question

the y co needed a large parcel of land to relocate their business. they found two parcels next to each other priced at 80k and 95k and purchased them both subsequently the found a better site and sold the two parcels to one buyer for 205k this illustrates the concept of a. assemblage b. situs c. neighborhood cycle d. plottage

answer

d

question

j carried back a 2nd mortgage when his home was sold. now he needs some ready cash and is going to sell it to a secondary lender for 60% of face value this discounting of the loan does NOT have which of the following advantages? a. it gets a lump sum of cash immediately for j b. ther person who bought th ehouse and has the loan will now pay a higher interest rate c. it provides an increased yield for the secondary lender d. the secondary lender has a secured investment at relatively high interest

answer

b

question

the key difference between a lien theory state and a title theory state is a. title theory state will collect more transfer taxes because of extra steps b. in a title theory sate the property owner always holds title c. only in a lien theory state uses legal documents to convey property rights d. in a lien theory state the property owner holds title but in a title theory state the lender or trustee holds title

answer

d

question

a particular parcel was zoned resdential single family and was surrounded by others zoned in the same that parcel was rezoned commercial so a convenience store could be built this is an example of a. variance b. defeasible fee estate c. spot zoning d. legal non conforming use

answer

c

question

when the federal reserve increases the supply of money it a. almost always leads to higher demand for money so the net effect is small b. gives more purchasing power to people by raising the interest rates c. helps lower prices and places a restraint on inflation d. lowers interest rates and gives more purchasing power to people

answer

d

question

when someone makes a statement to a qualified official that they freely and voluntarily executed a deed or document a. certification b. recording c. habendum d. acknowledge

answer

d

question

in the list below which item does not belong with foreclosure under a trust deed a. statutory period of redemption b. equitible period of redemption c. special warranty deed d. three months

answer

a

question

a deed filed in the public records provides which of the following a. constructive notice b. escheat c. statute of limitations d. actual delivery

answer

a

question

a lessee agreed to pay property tax and hazard insurance as well as rent this lease is a. proprietary lease b. net lease c. percentage lease d. gross lease

answer

b

question

hud oversees each of the following federal laws of programs except a. gnma b. truth in lending c. real estate settlement procedures act d. fha

answer

b

question

what does a va loan have that an fha loan does not? a. discount points b. a right or reinstatement c. no prepayment penalty d. an ltvr of 100%

answer

d

question

which of the following relates to a deed a. lien b. personal property c. exceptions and reservations d. tax assessment

answer

c

question

in order to begin the process of obtaining a va loan the applicant must provide what document a. certificate of authenticity b. eligibility waiver c. certificate of eligibility d. certificate of reasonable value

answer

c

question

what role does the federal government play in regards to fha loans a. guarantees the first 25% of the loan value b. prequalifies borrowers based on need c. operates an insurance program d. provides tax incentives for borrowers to make higher down payments

answer

c

question

a guarantee in a deed which says the grantor really does own the property and has the right to convey it to another is called the a. covenant against encumbrances b. covenant of warranty forever c. covenant of seizin d. covenant of further assurance

answer

c

question

who gives the lender the mortgage and note a the fiduciary b. the mortgagor c. the mortgagee d. the trustee

answer

b

question

rent control laws have what effect a. they benefit lessors and lessees equally b. they raise the general economy and everyone likes them. c. landlords dont like them as they must carry the burden of inflation d. tenants like them because it means the lease has no termination date

answer

c

question

the purpose of a document receipt is to verify that a. the buyer signed all documents involved with the loan b. all involved agents brokers have signed the purchase agreement c. all parties have received fully signed copies of real estate purchase contract d. both the buyer and seller receive all the appropriate documents at the closing

answer

c

question

the buyers waled into a model home of a builder the agent of the seller/builder had them sign an unrepresented buyer form which of the following applies a. pur autre vie b. habendum. c. estoppel d. caveat emptor

answer

d

question

what is the risk to a lender who accepts a deed in lieu of foreclosure a. they would accept the deed subject to any junior liens b. a deed in lieu of foreclosure is considered illegal c. the original borrower may be represented by a lawyer d. there must be a foreclosure to make the deed valid

answer

a

question

the sales comparison approach to property valuation a. has nothing to do with the buyer or seller it is determined statically by the appraiser b. it is based on the concept that a buyer is willing to pay only as much money as he/she would have to pay for another similar property c. is based on how much more a buyer would pay to upgrade from his/her present home d. it is viewed to be the least accurate because it is based on the buyer/seller emotion

answer

b

question

what does a mortgagor not have to pay a. title insurance b. property taxes c. life insurance d. hazard insurance

answer

c

question

in which of the following situations involving a 1031 would income taxes not have to be paid a. exchanging a duplex and a car for a triplex b. the exchange of two properties resulting in one owner owing 5k less than before on the property loan c. the exchange of a boat which can be a residence for a single family home d. the exchange of a fourplex in the city for a small farm of equal value

answer

d

question

when a person dies leaving no will and no heirs the government will get the property by the process of a. police power b. quiet title action c. eminent domain d. escheat

answer

d

question

because of a zoning change a factory was built that spewed smoke dirt and dust over the subject property this would be considered a. functional obsolescence b. physical depreciation c. eminent domain d. economic obsolescence

answer

d

question

a bulletin board was built into the wall in the kitchen of a personal residence if a buyer wants it he should realize that the bulletin board a. must be listed on the deed b. will automatically remain with the property at the time of conveyance since it is real property c. must be exempted in the listing by the seller d. must be excluded from the personal property listed in the trust deed

answer

b

question

which of the following modifications can an agent make in a real estate purchase contract a. closing dates b. terms of the loan c. written consideration d. the agent can make no change

answer

d

question

an appraisal may be considered complete without which of the following a. date b. sales approach c. property description d. signature

answer

b

question

k has an agreement as a property manager for an owner this would create which of the following relationships or positions a. director b. fiduciary c. mortgagor d. trustee

answer

b

question

each of the following statements are true about deed except a. the deed must use a legal description to identify the property b. the deed does not need to be in writing c. grantor must be of legal age and sound mind but not the grantee d. grantor must sign the deed

answer

b

question

r sells a property to t with the restriction in the sales agreement that t can only use the property for farming purposes this is an example of a. fee remainder estate b. fee simple condition precedent c. fee simple defeasible d. deed in lieu of ...

answer

c

question

an agent contacted an owner to see if they might want to sell the property the agent said i think i can get you 250 k which suprised the owner who said okay and anything over that you can have as commission. a. net listing and could be grounds for disciplinary action actions the agent b. only legal if the agent ran comps and can justify the 250k c. perfectly good way for agents to market themselves and get listings d. a really good deal for the agent and the agent should jump on it

answer

a

question

each of the following entities make loans in the primary mortgage lending market except a. sallie mae b. countywide mortgage c. hometown savings association d. bigtime federal credit union

answer

a

question

after an offer to purchase real property has been signed and presented how long does the offeror have to withdraw the offer a. twenty four hours following presentation b. until the offer has been accepted c. three days following the presentation d. once the offer has been signed

answer

b

question

which of the following would not be considered to have special agency. a. real estate agent who has an exclusive right to sell listing on a home b. a real estate agent who takes a listing on a single family dwelling c. a real estate agent given the responsibility to take care of all the sellers real estate matters d. an agent who is given the responsibility to seek a ready willing and able buyer

answer

a

question

the real estate purchase agreement states that the refrigerator is to go to jack the buyer how should jack be able to show he owns the refrigerator a. the statement on the purchase agreement b. bill of sale c. a certificate of sale d. the deed

answer

b

question

title insurance is paid a. only once, at closing b. annually c. monthly d. as a part of the mortgage payment

answer

a

question

which of the following statements if false about conventional loans a. congress establishes the loan limits each year for 1-to-4 family structures b. the gse's dominate this market category c. a non-conforming loan can be sold in the secondary market d. lenders may not establish their own underwriting standards

answer

d

question

under the law of emblements which of the following situations is true a. the buyer gets the land the seller gets the farm house b. the buyer gets everything and after harvesting the crop gets the profits from it c. the seller deeds the property to the buyer but has rights to the crop d. everything goes to the buyer and the seller has no further rights to anything on the property

answer

c

question

a plat map is used in which type of legal description a. government survey b. lot and block c. metes and bounds d. rectangular survey

answer

b

question

four brothers own a property as joint tenants it has appreciated quite a bit in value since they made the investment to buy it one brother wants to sell and get his money out and he has a ready willing and able buyer. the others refuse to sign the offer what is a possible legal solution a. an estate pur autre'vie b. a partition action c. a writ of execution d. exercise the defeasance clause

answer

b

question

which of the following best describes a fixture a. bolted down barber chair b. physical items used in a business that may or may not be attached c. a crop nurtured in the year of the transfer d. that which is attached without losing its identity

answer

d

question

a short-term loan to help you buy the new house before the sale on the old one has closed would be most like a(n) a. bridge loan b. wraparound loan c. purchase money loan d. open-end loan

answer

a

question

k was hired to manage a large apartment building he would be functioning as which type of agent? a. universal b. general c. specific d. attorney in fact

answer

b

question

an up front cost the lender charges to the borrower usually a percent of the loan amount that generates profit to the lender and factors in the lenders cost of getting money a. title insurance fee b. origination fee c. discount points d. document prep fee

answer

b

question

large benefit of using a credit report to process an application is a. the applicant can never determine what the loan decision was based on b. it is factual record of history allowing a quick objective decision . c. it may be the only way to verify an applicants assets d. it provides a seasoned and expert opinion on the applicants character

answer

b

question

the owner of a commercial property wants to sell the seller wishes to allow many borkerages the opportunity to sell the property the seller should a. sign an exclusive right to sell listing b. execute an exclusive agency listing with each brokerage c. execute an open listing with the brokerages he wishes to hire d. sign a net listing

answer

c

question

z went to a trust deed foreclosure sale on an investment property that looked like a good deal there were other investors but z won the bid. which of the following would z expect to receive a. a sheriffs deed b. deed of trust c. trust deed d. trustee's deed

answer

d

question

the non distrubance clause found in the loan comes into play when and protects whom a. defalut on loan:lessee b. defalut on lease:owner c. loan is paid off:lessee d. Eminent domain:lessor

answer

a

question

fair market value is primarily based on a. the willing buyer and willing seller concept b. a cost of replacement c. government price controls d. assessed value

answer

a

question

which of the following choices would not be considered to be valuable consideration and therefore meet the requirements for a valid contract a. performing a service b. a lifelong friendship c. a parcel of land with back taxes due d. promissory note

answer

b

question

which of the following would not be considered to have special agency a. real estate agent who has an exclusive right to sell listing on a home b. a real estate agent who takes a listing on a single family dwelling c. an agent who is given the responsiblilty to seek a ready willing and able buyer d. a real estate agent given responsibility to take care of all the sellers real estate maters

answer

a

question

a property description that uses angles and degrees is referred to as a. an informal description b. metes and bounds c. government sruvey d. lot, block and plat

answer

b

question

a new apartment building was constructed with an elevator under the fair housing amendment act of 1988 what would the owner have to do a. make all hallways and doors extra wide b. make sure thermostats in all rooms are reachable from a wheelchair c. not have a no pets rule in case a blind person rented one unit d. adapt all kitchens with sink stove etc low enough for wheel chair use

answer

b

question

which of the following is not part of an appraisal a. the date of the appraisal report b. a description of the neighborhood surrounding th eproperty c. appraisers best estimate of value d. the signaure of the appraiser

answer

b

question

automated underwriting systems offer the following benefits except a. objective free of discrimination b. speed and low operating cost c. immediate feedback for correcting deficiencies d. reduced closing cost to borrower

answer

d

question

about 35% of the credit score consists of a. the applicants attitude toward taking on new debt b. the applicants mix of trade accounts open c. how promptly and consistently the applicant pays his obligations d. the applicants most recent 6 months of payment behavior

answer

c

question

m took a listing which of the following situations best describes the concept of designated agency the contract states: a. the broker and M will represent the seller b. the broker and all agents in the office will represent the seller c. the broker is a limited agent and M represent the seller d. all agents in the office will be designated as limited agents

answer

a

question

when the buyer and seller agree to extend the closing date the real estate agent should a. make sure the buyer and seller shake hands to confirm the change b. write a whole new contract c. prepare an addendum and have both parties agree to change in writing d. explain that time is of the essence and closing date cannot be changed

answer

c

question

under an agreement of sale the seller is considered the a. mortgagor b. devisee c. grantee d. vendor

answer

d

question

which of the following is not a means of regulating land? a. deed restrictions b. building codes c. zoning d. resolutions passed by the local board of realtors

answer

d

question

a broker found a ready willing and able buyer to purchase seller bonds house at the listing terms before agreeing to the sale seller bond introduced a new restrction stating that the sale could only be completed if the buyer agreed not to build a tennis court on the property the buyer refused and withdrew from the negotiations is the broker entitled to a commission a. no, because seller bond never accepted the buyers first offer b. yes, because the seller can change the terms in a listing agreement any time he wants c. no, because the buyer did not complete the purchase d. yes, because the broker had fulfilled the listing contract and must be paid

answer

d

question

when dealing with a land contract or uniform real estate contract which one of the following choices is NOT one of the remedies for default a. hire an attorney to collect the back amounts owed b. change the locks and hold their belongings as security for back payments owed c. use the steps of foreclosure to get them out d. treat them as renters and evict them

answer

b

question

in selling their home the sellers are willing to let the buyers take over their existing loan the lender agrees but the sellers want to be sure they have no further liability for that loan amount they could ensure the lack of liability with a(n) a. novation b. assignment c. fiduciary agreement d. release of lien

answer

a

question

the key difference between a promissory note and a mortgage is a. a promissory note can be assumed by a new property owner b. sell only if a full price offer comes in c. fix any appliances that are broken d. sell the property

answer

a

question

k has an agreement as a property manager for an owner this would create which of the following relationships or positions a. director b. mortgagor c. trustee d. fiduciary

answer

d

question

h gives a life estate to her mother's doctor which states that the doctor will have the property for as long as mom is alive. mom is very healthy but the doctor is now dead what happens? a. the property goes back to h b. mom bets the property c. mom's heirs get the property d. the property goes to the doctor's heirs

answer

d

question

the appraisal approach that determines value of land to the depreciated replacement value of the improvement is the a. gross rent multiplier b. market data approach c. cost approach d. income approach

answer

c

question

e borrowed money from a bank for personal reasons it had fixed interest rate for a 5 year term monthly payments were interested only at the end E owed the lender the full amount borrowed this is which kind of loan a. purchase money b. straight loan c. partially amortized loan d. participation loan

answer

b

question

when the buyer purchased the property using a uniform real estate contract what is the interest of the buyer called a. title b. possession interest c. equitable interest d. deed

answer

c

question

which of the following is not a true statement about the settlement statement a. it is to account for all money involved in the transaction b. the seller's loan payoff will be a debit to the seller, a credit to the buyer c. buyer total closing cost will appear on the back and front of the statement d. it will note if monies were paid up front

answer

b

question

which of the following is NOT true about a sale and leaseback of a commercial property a. seller frees up funds b. ownership does not actually transfer c. seller is able to deduct rent payments from his gross income d. buyer can deduct depreciation from his taxes

answer

b

question

which of these situations does NOT cause a contract to become voidable a. contract is not in writing b. menace c. duress d. one of the parties is a minor

answer

a

question

certain defaults unfortunately happen quite often and so they are planned for and consequences outlined in the contract an example of the earnest money deposit. this is a. liquidated damages b. hypothecation c. pur autre' vie d. subrogated damages

answer

a

question

all of the following actions terminate a listing except a. death of the principal b. death of the listing broker c. abandonment by the broker d. death of the listing sales person

answer

d

question

the renters hadn't paid rent for the past 2 months the landlord was sick of it and ready to act which of the choices is appropriate and legal? a. put their belongings out on the street until rent is collected b. have the locks changed so they can't get back in c. initiate an unlawful detainer action in court d. immediately call the sheriff to put them out

answer

c

question

in real estate the term title refers to a. any pubicly recorded document that signifies one or more of the four property rights b. a caluable piece of paper that can be bought and sold c. a legal concept that signifies ownership of real property d. a contract that gives a lender the right to foreclose if all the obligations are not met

answer

c

question

in a loan an alienation clause a. protects against illegal aliens obtaining valid ownership b. protects the mortgagee's position c. insures taxes will be paid d. insures that there will be no late payment of principal

answer

b

question

which is true regarding FHA loans a. you will get an FHA loan regardless of your credit history b. FHA would be used to originate a conventional loan c. FHA standards require a substantial amount as a down payment d. there are no prepayment penalties

answer

d

question

title insurance is paid a. monthly b. annually c. only once, at closing d. as a part of the mortgage payment

answer

c

question

the relationship between between the lessor and the lessee could be defined as which of the following? a. life estate b. tenants in common c. tenancy for years d. joint tenancy

answer

c

question

the age of improvement can be discussed from several viewpoints, which would be considered to be the longest? a. physical life b. effective life c. service life d. economic life

answer

a

question

what is the name of the principal base and meridian in the state of Utah? a. salt lake b. uintah c. wasatch d. utah

answer

a

question

which method of appraising would be most effective when appraising a vacant parcel of land a. capitalization approach b. income approach c. market data d. cost replacement approach

answer

c

question

at closing on a loan the APR is higher than the interest rate because a. the interest rate is calculated on a 360 day calendar b. interest rates fluctuate between the application for the loan and the closing date c. the borrower paid some extra costs to obtain the loan d. the lender paid some costs that contributed to the loan

answer

c

question

a buyer wants to assume a loan without taking on any personal liability for the loan in the purchase offer relative to the loan he should state he will a. take title on a subject to basis b. hypothecate and accelerate the loan c.subordinate to the sellers interest d. assume the loan and make payments

answer

a

question

in the list below which item does NOT belong with foreclosure under a trust deed? a. statutory period of redemption b. equitable period of redemption c. three months d. special warranty deed

answer

a

question

an assessor is trying to determine the square footage of a property he measures a. the inside useable area b. the inside rooms including the closets c. the home excluding hallway d. the outside dimensions

answer

d

question

which of the following is NOT an approach to appraising a. cost b. income c. comparison d. plottage

answer

d

question

the survey helps establish all of the following except a. property condition b. placement of structures consistent with setback requirements and other restrictions c. easements in relation to all permanent structures d. true property lines

answer

a

question

what could happen if a property owner does not pay his property taxes a. nothing, the local taxing authority would be forced to hold out indefinitely until the property owner was able to pay b. it may take several years but the home could be sold at a county auction to recoup the taxes due c. the property taxes will be paid once the property is sold and only after when the other liens have been paid d. the home could be purchased by a third party who would be responsible first for the taxes due

answer

b

question

z listed a property when the buyers exressed interest in selling it z disclosed that they would have no representation and the buyers agreed in writing when writing the offer the buyers asked z what they should offer z responded oh 93% of the listed price would be good. which most applies a. this is limited agency and legal b. z is properly representing the seller and obtaining an offer c. this would be a good suggestion for the agent to make d. this is ostensible agency between z and the buyers

answer

d

question

the income capitalization approach for valuing real estate depends on each of the following elements EXCEPT a. a property that generates a verifiable stream of operating income b. accurate depreciation information c. operating income data for similar properties d. recent sales data on similar parperties

answer

b

question

a subordination clause in a loan would involve which of the following actions a. alteration of priority b. abandonment by the borrower c. abrogation d. assignment to a new borrower

answer

a

question

recording is the same as closing a. false b. true

answer

a

question

A person who receives a gift of real property in a will is called the: (a) Devisee (b) Grantor (c) Testator (d) Mortgagor

answer

a

question

A short-term loan to help you buy the new house before the sale on the old one has closed would be most like a(n): (a) Wraparound loan (b) Bridge loan (c) Purchase money loan (d) Open-end loan

answer

b

question

You present an offer from a qualified, willing and able minority buyer. The seller refuses to sell because the individual is a minority. You can legally do all the following EXCEPT: (a) Tell the owners they are in violation of Fair Housing Laws. (b) Do not show this house to any other minorities. (c) Make the buyers aware they could possibly sue the seller. (d) Inform HUD.

answer

b

question

One of the more common methods for assessing property taxes is based on a percentage of the value of the property, also known as: (a) Market value taxes. (b) Ad Valorem taxes. (c) Proportionate contribution taxes. (d) Assessed value taxes.

answer

b

question

You can deduct loan interest in which of the following circumstances? (a) Credit card debt used for improving your home. (b) On your house and your motor home. (c) Points on a home equity loan incorporated into the loan. (d) The automobile used to travel to and from work.

answer

b

question

Which thing on the list that follows would NOT be an item addressed in the property management contract between the broker and the owner? (a) The rents to be charged (b) The commission structure (c) The work schedule of the agents (d) The responsibilities of the agent

answer

a

question

Which is not correct about PMI? (a) To request cancellation of PMI, you must be current on your loan. (b) For "high-risk loans" lenders are required to automatically remove PMI when the loan balance reaches 77% of the original purchase price. (c) In order to remove PMI, the lender must receive a request from the borrower. (d) You may request PMI removal when the current loan balance equals 80% of the original purchase price or current appraised value, whichever is less.

answer

c

question

Which of the following relates to a deed: (a) Personal property (b) Exceptions and reservations (c) Tax assessment (d) Lien

answer

b

question

In which of the following situations involving a 1031 would income taxes NOT have to be paid? (a) The exchange of a fourplex in the city for a small farm of equal value. (b) The exchange of a boat which can be a residence for a single family home. (c) The exchange of two properties resulting in one owner owing $5,000 less than before on the property loan. (d) Exchanging a duplex and a car for a triplex

answer

a

question

When taking a listing, agent J had sellers who insisted their house was worth more than the one down the street for sale, even though both houses were basically the same. J explained that buyers won't pay any more than they have to in order to get what they desire. This is the principle of: (a) Substitution (b) Contribution (c) Progression (d) Balance

answer

a

question

An agent from a buyer brokerage represents the: (a) seller (b) buyer (c) seller and buyer (d) is a neutral facilitator

answer

b

question

The main purpose of Title III of the Americans with Disabilities Act is to: (a) provide employment opportunities for the disabled. (b) provide equal access to goods and services. (c) provide adequate parking spaces for those with disabilities. (d) make sure a handicapped person has a place to live.

answer

b

question

Willful destruction or neglect of property which affects the rights of the remainderman is: (a) Vandalism (b) Waste (c) Sufferance (d) Succession

answer

b

question

The buyers walked into a model home of a builder. The agent of the seller/builder had them sign an unrepresented buyer form. Which of the following applies? (a) Pur autre' vie (b) Caveat emptor (c) Habendum (d) Estoppel

answer

b

question

Which kind of title insurance would provide the most protection for the buyer of the property? (a) Plain Language policy (b) Extended Owner's policy (c) ALTA Lender's policy (d) Standard policy

answer

b

question

Which of the following would require a variance? (a) A 9,000 square foot lot where zoning regulations require 10,000 square foot lots. (b) An area between two varying types of zoning classifications to give protection to one of the areas. (c) A church in an area zoned for residential properties. (d) A business in an area that had recently been rezoned to residential.

answer

a

question

Each of the following statements are true about a deed EXCEPT: (a) The deed must use a legal description to identify the property. (b) Grantor must sign the deed. (c) Grantor must be of legal age and sound mind but not the grantee. (d) The deed does not need to be in writing.

answer

d

question

An exercised option is called a: (a) Express Contract (b) Bilateral Contract (c) Unilateral Contract (d) Is not considered a contract

answer

b

question

D purchased a lot and subsequently built a house, planted a tree and built a garage/workshop separate from the house. Which term describes this process? (a) Hypothecation (b) Accession (c) Encroachment (d) Severance

answer

b

question

If the court granted an action in your favor which of the following actions would best benefit you? (a) Attachment (b) Writ of Execution (c) Judgment (d) Les Pendens

answer

b

question

Z listed the property. When the buyers expressed interest in seeing it, Z disclosed they would have no representation and the buyers agreed in writing. When writing the offer, the buyers asked Z what they should offer. Z responded, "Oh 93% of the listed price would be good." Which most applies? (a) This is limited agency and legal. (b) This would be a good suggestion for the agent to make. (c) Z is properly representing the seller and obtaining an offer. (d) This is ostensible agency between Z and the buyers.

answer

d

question

When a person builds an improvement that extends onto the property of a neighbor, it is considered a(n): (a) Easement (b) Encroachment (c) Injunction (d) Defeasance

answer

b

question

This ad appearerd in the newspaper. "Beautiful three bedroom home in Hispanic neighborhood. Owners moving to neighboring state. Purchase price $80,000, APR 6.5%." This ad would violate which of the following laws? (a) Interstate Federal Full Disclosure Act. (b) Truth in Lending (c) RESPA (d) Federal Fair Housing

answer

d

question

The two largest participants in the secondary market, referred to as government sponsored enterprises, that purchase mortgages are known as: (a) FHA and VA (b) Freddie Mac and Fannie Mae (c) Ginnie Mae and Fannie Mae (d) Goldman Sachs and China

answer

b

question

At a closing on a loan, the APR is higher than the interest rate because: (a) interest rates fluctuate between the application for the loan and the closing date. (b) the lender paid some costs that contributed to the loan. (c) the borrower paid some extra costs to obtain the loan. (d) the interest rate is calculated on a 360 day calendar.

answer

c

question

Using the sales comparison method, the property adjustment for a comparable property that is viewed to be worth $10,000 more because it is newer would be: (a) Add $10,000 to the comparable property. (b) Subtract $10,000 from the subject property. (c) Add $10,000 to the subject property. (d) Subtract $10,000 from the comparable property.

answer

d

question

In a loan, an alienation clause: (a) Insures taxes will be paid (b) Insures that there will be no late payment of principal (c) Protects the mortgagee's position (d) Protects against illegal aliens obtaining valid ownership

answer

c

question

An industrial complex was built near a residential area. In order to preserve the value of the residential area, which of the following would be the most likely to be employed? (a) Zone the area between the two C1. (b) A zoning commission has no authority in such matters. (c) Create a buffer zone by zoning restriction. (d) The local government would buy up the area in between by exercising eminent domain.

answer

c

question

A uniform land contract could best be described as a: (a) Listing (b) Real Estate Purchase Contract (c) Installment Contract (d) Trust Deed and Note

answer

c

question

A written real estate contract is best described as which of the following? (a) Voidable (b) Based on contingencies (c) An Express Contract (d) Unilateral because the buyer can cancel

answer

c

question

The listing agent advertises his/her listing on the Multiple Listing Service as instructed by the seller at the agreed list price of $300,000. A buyer offers $300,000 in writing with an earnest money deposit of $3,000. Which of the following statements are true? (a) Because the offer is full price, the seller is obligated to accept the offer. (b) The seller can either accept, reject or counter the offer. (c) The listing broker must wait 72 hours before presenting the offer to give other buyers an opportunity to purchase the property. (d) The seller must pay a commission and accpt the offer.

answer

b

question

A person lived on a property openly and notoriously under "color of title." This situation has to do with: (a) An owner who holds a quit claim deed (b) Adverse possession (c) Easement by prescription (d) Fee simple defeasible

answer

b

question

A lien on real property, documented by a signed mortgage contract gives the lender the right to: (a) Collect a particular interest rate on the loan. (b) Go to court and/or sell the property if the owner defaults any of the provisions of the mortgage (c) Collect monthly payments for insurance and taxes and place them in an escrow account. (d) Sell the servicing rights to the loan to another investor.

answer

b

question

Truth in Lending or Reg. Z includes all the following requirements EXCEPT: (a) Use of APR (b) Advertising restrictions (c) Disclosure of costs (d) Settlement Costs & You

answer

d

question

Which of these contain only the essential elements of a real estate contract? (a) in writing, consideration, notarization (b) in writing, capacity, acknowledgment (c) mutual consent, legality, consideration, recordation (d) legal purpose, capacity, mutual consent, in writing

answer

d

question

The primary product sold by a credit bureau is: (a) Current income statistics on similar borrowers. (b) Information on the creditworthiness of an individual applicant. (c) Pending judicial actions against the borrower. (d) Public records on all past criminal and civil hearings.

answer

b

question

A lessee agreed to pay property tax and hazard insurance as well as rent. This lease is: (a) Percentage lease (b) Gross lease (c) Net lease (d) Proprietary lease

answer

c

question

In which of the following situations is a special warranty deed most likely to be used? (a) A standard sale of an existing residence. (b) After a death, the executor grants the property to the devisee. (c) A lease with an option to buy. (d) In a divorce the husband gives up his rights to the home.

answer

b

question

The survey helps establish all of the following EXCEPT: (a) Placement of structures, consistent with setback requirements and other restrictions. (b) Property condition. (c) True property lines. (d) Easements in relation to all permanent structures.

answer

b

question

People who execute a document are referred to as: (a) Notary Republics (b) Executors (c) Testators (d) Signatories

answer

d

question

A new Truth-in-Lending (TIL) disclosure must be provided: (a) Within 3 business days of discovering the annual percentage rate changed by more than 1/8%. (b) Within 7 business days of discovering the annual percentage rate changed by more than 1/4%. (c) Within 3 business days of discovering the annual percentage rate changed by more than 1/4% (d) At least 3 days prior to closing whether there has been a change in annual percentage rate or not.

answer

a

question

In order to begin the process of obtaining a VA loan, the applicant must provide what document? (a) Eligibility Waiver (b) Certificate of Authenticity (c) Certificate of Eligibility (d) Certificate of Reasonable Value

answer

c

question

When the lease expired, Q, the lessee didn't leave as requested. Q kept giving excuses, saying a new residence was coming available soon. This creates: (a) Estate at sufferance (b) Periodic tenancy (c) Tenancy in common (d) Estate at will

answer

a

question

Because of a zoning change, a factory was built that spewed smoke, dirt and dust over the subject property. This would be considered: (a) Economic obsolesence (b) Eminent Domain (c) Physical depreciation (d) Functional obsolesence

answer

a

question

T would like to purchase property from F. T sits with his agent and fills out a proper REPC. Which of the following COULD NOT be used as an earnest money deposit? (a) A written IOU made out by T to F for $100. (b) T's pet pig, Wilbur. (c) T's personal property. (d) A handshake and a verbal agreement to cut a check later.

answer

a

question

The income capitalization approach for valuing real estate depends on each of the following elements EXCEPT: (a) Recent sales data on similar properties. (b) A property that generates a verifiable stream of operating income. (c) Accurate depreciation information. (d) Operating income data for similar properties.

answer

c

question

Progression and regression are considered "sub-principles" relating to overbuilding for an area, or purchasing the least expensive model home in a development of new homes. The main principle involved is: (a) Contribution (b) Competition (c) Cycle of Change (d) Conformity

answer

d

question

When dealing with a land contract, or Uniform Real Estate Contract, which of the following choices is NOT one of the available remedies for default? (a) Change the locks and hold their belongings as security for back payments owed. (b) Hire an attorney to collect the back amounts owed. (c) Treat them as renters and evict them. (d) Use the steps of foreclosure to get them out.

answer

b

question

George Smith, who owns his property fee simple, grants a three-year lease to Tom Green. During the second year of the lease, George sells the property to Ned Gray. What happens to the lease when the sale closes? (a) The lease remains in effect with Mr. Gray and Mr. Green. (b) It must be negotiated between Gray and Mr. Green, the leasee. (c) Property cannot be sold and title transferred to a new owner when a lease is in effect. (d) It terminates.

answer

a

question

Title insurance is paid: (a) annually. (b) as a part of the mortgage payment. (c) only once, at closing. (d) monthly.

answer

c

question

R sells property to T with the restriction in the sales agreement that T can only use the property for farming purposes. This is an example of: (a) Fee remainder estate (b) Fee simple defeasible (c) Fee simple with a condition precedent (d) Deed in lieu of . .

answer

b

question

Which best describes the first principle of appraising real property? (a) Neighborhood Cycle (b) Anticipation (c) Highest and best use (d) Conformity

answer

c

question

Which of the following is most like the "or more" clause in a loan: (a) Graduated payment clause (b) Reappraisal clause (c) Prepayment privilege clause (d) Index clause

answer

c

question

Which of the following statements about annual percentage rate (APR) is FALSE? (a) The APR represents the effective annual interest rate on the money borrowed after considering the various costs to obtain the loan (b) The APR cannot change from the initial TIL disclosure more than 1/4% (c) The purpose of the APR is to communicate to the borrower in simple terms the true annual cost of the loan (d) A change in the APR does not affect the monthly payment if the stated interest rate does not change

answer

b

question

When selling real estate, contracts must be in writing: (a) If advised by the real estate agent. (b) According to the Statute of Frauds (c) Unless the deed is to be recorded (d) If agreed to by the buyer and seller

answer

b

question

A builder buys a lot and obtains a loan to build a "spec house." What type of loan would he have? (a) Blanket (b) Graduated (c) Construction (d) Wraparound

answer

c

question

D wanted to buy a home from K, but wouldn't buy it unless the pool table came with it. D and K decide that the pool table is personal property. What contract would be the best tool for the pool table purchase? (a) Handshake and one hug (b) REPC (c) Bill of Sale (d) Pinky swear

answer

c

question

A loan is amortized as though for 25 years, but is due sooner and paid off in a balloon payment. This is known as a(n): (a) Gap loan (b) Straight loan (c) Partially amortized loan (d) ARM

answer

c

question

A particular parcel was zoned residential, single family and was surrounded by others zoned the same. That parcel was rezoned commercial so a convenience store could be built. This is an example of: (a) Legal non-conforming use (b) Variance (c) Spot zoning (d) Defeasible fee estate

answer

c

question

An easement by prescription can best be described as: (a) An adverse use (b) An easement created by eminent domain (c) An easement recommended by a doctor for a sick land owner (d) A right of way created for landlocked property

answer

a

question

M starts a small business teaching people how to do unique types of quilting and stitchery and hires one person to help her. She finds an old house to rent cheaply. It only has one very small 1/2 bath, and five steps to get in the front door. In this case, ADA requirements: (a) only apply when there are more than 15 employees. (b) are violated because a handicapped person would not have equal access. (c) do not apply since there's only one employee. (d) don't apply as it would be too costly for a small business to make major construction modifications.

answer

b

question

The Y Co. needed a large parcel of land to relocate their business. They found two parcels next to each other priced at $80,000 and $95,000 and purchased them both. Subsequently they found a better site and sold the two parcels to one buyer for $205,000. This illustrates the concept of: (a) Neighborhood Cycle (b) Assemblage (c) Situs (d) Plottage

answer

d

question

ny offer without an Earnest Money Deposit is considered which of the following? (a) Unenforceable (b) Implied (c) Unilateral (d) Valid

answer

d

question

An essential element of a deed is __________, which can be stated in terms known as valuable (monetary) or good (love and affection). (a) The granting clause (b) Habendum (c) Consideration (d) Witnesses and a notary

answer

c

question

The government took R's property for a highway and paid R fair market value. Which of the following gives the right for this type of action? (a) Eminent Domain (b) RESPA (c) Condemnation (d) Regulation Z

answer

a

question

What is the name of the principal base and meridian in the state of Utah? (a) Uintah (b) Utah (c) Wasatch (d) Salt Lake

answer

d

question

K has an agreement as a property manager for an owner. This would create which of the following relationships or positions? (a) Fiduciary (b) Trustee (c) Mortgagor (d) Director

answer

a

question

A bulletin board was built into the wall in the kitchen of a personal residence. If a buyer wants it, he should realize that the bulletin board: (a) will automatically remain with the property at the time of conveyance since it is real property. (b) must be exempted in the listing by the seller. (c) must be excluded from the personal property listed in the trust deed. (d) must be listed on the deed.

answer

a

question

A guarantee in a deed which says the grantor really does own the property and has the right to convey it to another is called the: (a) Covenant Against Encumbrances (b) Covenant of Seizin (c) Covenant of Warranty Forever (d) Covenant of Further Assurance

answer

b

question

The borrower used a document which gave the trustee power of sale as the security for the loan to buy the home. What document would contain that power: (a) Mortgage (b) Deed of Trust (c) Uniform Real Estate Contract (d) Trustee's Deed

answer

b

question

M and N own a property together as tenants by the entirety. Which of the following is true about their ownership? (a) Neither M nor N can mortgage the property without the consent of the other. (b) M can sell his/her share without the consent of N. (c) If M sells his/her interest, the new owner would become a joint tenant with N. (d) If N dies before M, N's interest can be willed to N's heirs.

answer

a

question

When the buyer purchased the property using a Uniform Real Estate Contract, what is the interest of the buyer called? (a) Equitable interest (b) Deed (c) Title (d) Possession interest

answer

a

question

When a remainder estate is involved, what owner interest is involved? (a) Joint tenancy (b) Life Estate (c) Ownership in severalty (d) Community property

answer

b

question

What is the right of a mortgagor to regain clear title to the property upon full payment of the debt after the foreclosure sale? (a) Redemption (b) Release (c) Reinvestment (d) Reversion

answer

a

question

In selling their home, the sellers are willing to let the buyers take over their existing loan. The lender agrees. But the sellers want to be sure they have no further liability for that loan amount. They could ensure the lack of liability with a(n): (a) Assignment (b) Novation (c) Fiduciary agreement (d) Release of lien

answer

b

question

Which arrangement may occur in a typical construction loan? (a) The full loan is advanced before construction begins. (b) Funds are paid in installments at various stages of construction. (c) Interest on the total amount of the loan is charged from the beginning. (d) Funds are given after construction is completed.

answer

b

question

The age of an improvement can be discussed from several viewpoints. Which would be considered to be the longest? (a) Physical life (b) Economic life (c) Effective life (d) Service life

answer

a

question

Fair market value is primarily based on: (a) assessed value. (b) the "willing buyer, willing seller" concept. (c) a cost of replacement. (d) government price controls.

answer

b

question

Which of the following is NOT a method for creating an easement? (a) Mutual Agreement (b) Implication (c) A neighbor's use for 7 years (d) Prescription

answer

c

question

A subordination clause in a loan would involve which of the following actions? (a) Abrogation (b) Abandonment by the borrower (c) Assignment to a new borrower (d) Alteration of priority

answer

d

question

Under a mortgage foreclosure, K made the highest bid and got the property. Within 24 hours K had paid the full amount to the sheriff. What would K receive? (a) A quit claim deed (b) A special warranty deed (c) A certificate of sale (d) A bargain and sale deed

answer

c

question

Which of the following entities is only in the secondary mortgage market, and not in both primary and secondary? (a) Banks (b) GNMA (Government National Mortgage Association) (c) Private individuals (d) Insurance companies

answer

b

question

The renters hadn't paid rent for the past two months. The landlord was sick of it and ready to act. Which of the choices below is appropriate and legal? (a) Initiate an Unlawful Detainer action in court. (b) Have the locks changed so they can't get back in. (c) Put their belongings out on the street until rent is collected. (d) Immediately call the sheriff to put them out.

answer

a

question

The sales comparison approach to property valuation: (a) Is based on how much more a buyer would pay to upgrade from his/her present home. (b) Has nothing to do with the buyer or seller, it is determined statistically by the appraiser. (c) Is based on the concept that a buyer is willing to pay only as much money as he/she would have to pay for another similar property. (d) Is viewed to be the least accurate because it is based on buyer/seller emotion.

answer

c

question

Which of the following is NOT an approach to appraising? (a) Plottage (b) Cost (c) Comparison (d) Income

answer

a

question

HUD oversees each of the following federal laws or programs EXCEPT: (a) Real Estate Settlement Procedures Act (b) Truth-in-Lending (c) GNMA (d) FHA

answer

b

question

A broker can be charged with violating the Sherman Antitrust Act if he/she says to a seller: (a) The commission is fully negotiable between the broker and the seller. (b) We can't possibly charge less than the rate establised through the multiple listing service. (c) Our company usually charges 6% for this type of listing. (d) We never discount the commission.

answer

b

question

Q is willing to seller finance the purchase of his home which he owns free and clear. Q would be considered the: (a) Leasee (b) Payor (c) Payee (d) Grantee

answer

c

question

A deed filed in the public records provides which of the following: (a) Statute of limitations (b) Escheat (c) Actual delivery (d) Constructive notice

answer

d

question

A property manager, in fulfilling his/her duties to the principal, would want to make sure there was an insurance policy in place to cover: (a) E & O (b) Liability (c) Mortgage (d) Workers' Compensation

answer

b

question

K and N owned homes in the same subdivision, bought the same year and the same size lot and type of floor plan. K found out N's taxes were $480 less. Where would K appeal to get lower taxes? (a) The County Recorder's Office (b) The Division of Real Estate (c) The Board of Equalization (d) The Board of Adjustment

answer

c

question

All of the following statements are true about the Cost Approach to valuation EXCEPT: (a) The land is valued separately from the structure and site improvements. (b) The final result when adding the total cost to replace the subject property (land plus improvements) minus the approximate depreciation is a fair estimate of market value for the subject property. (c) Depreciation is calculated for the buildings and land to reflect the three different types of depreciation (loss in value) to the subject property. (d) The cost to rebuild or replace the structure and other land improvements is calculated using today's construction costs.

answer

c

question

A large benefit of using a credit report to process an application is: (a) It is factual record of history allowing a quick and objective decision. (b) The applicant can never determine what the loan decision was based on. (c) It provides a seasoned and expert opinion on the applicant's character. (d) It may be the only way to verify an applicant's assets.

answer

a

question

Which essential clause in a deed is a Latin term that translates as "to have and to hold?" (a) Habendum (b) Ad Valorem (c) Quid pro quo (d) Post granting

answer

a

question

When a lender confirms a specific loan amount and agrees to the interest rate, this process is referred to as a(n): (a) Disclosure (b) Interest insurance (c) Origination fee (d) Lock

answer

d

question

In the list below, which item does NOT belong with foreclosure under a trust deed? (a) Statutory period of redemption (b) Equitable period of redemption (c) Three months (d) Special warranty deed

answer

a

question

E borrowed money from a bank for personal reasons. It had a fixed interest rate for a five year term. Monthly payments were interest only, and at the end, E owed the lender the full amount borrowed. This is which kind of loan? (a) Partially amortized loan (b) Purchase money (c) Participation loan (d) Straight loan

answer

d

question

The key difference between a lien theory state and a title theory state is: (a) Only a lien theory state uses legal documents to convey property rights. (b) In a lien theory state, the property owner holds title but in a title theory state the lender or trustee holds title. (c) A title theory state will collect more transfer taxes because of the extra steps. (d) In a title theory state, the property owner always holds title.

answer

b

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