Multiple Choice
Identify the letter of the choice that best
completes the statement or answers the question.
|
|
|
1.
|
A house sold for $137,500 and the buyers secured an FHA mortgage. The required
down payment was 3 percent for the first $50,000, and 5 percent for any amount over $50,000. What was
the amount of the mortgage?
a. | $1,500 | c. | $133,125 | b. | $4,375 | d. | $131,625 |
|
|
|
2.
|
After a neighborhood had been hit by vandals on a number of occasions, an owner
offered
to pay $100 to anyone providing information leading to the arrest and conviction of
the
guilty party. Shortly thereafter, a person supplied the needed information and received
the
reward. This is an example of a(n)
a. | gift | c. | unilateral contract. | b. | option. | d. | voidable
contract. |
|
|
|
3.
|
A broker pays her salespeople 20 percent of the commission for listing property
and 40
percent of the commission for selling it. The commission rate is 5 percent. What was
the
selling price of a house if the salesperson who both listed and sold it received
$3,600?
a. | $120,000 | c. | $72,000 | b. | $200,000 | d. | $100,000 |
|
|
|
4.
|
Which of the following is a loan in which only interest is payable during the
term of the
loan and all principal is payable at the end of the loan period?
a. | Amortized loan | c. | Fixed installment loan | b. | Flexible
loan | d. | Term
loan |
|
|
|
5.
|
A property owned solely by one spouse
a. | is owned in trust. | c. | is immune from seizure by creditors. | b. | is owned in
severally. | d. | cannot be
homesteaded. |
|
|
|
6.
|
When a property fails to sell at a court foreclosure for an amount sufficient to
satisfy the mortgage debt, the mortgagee may seek which of the following against the defaulted
borrower?
a. | Attachment by default. | c. | Satisfaction of mortgage. | b. | Deficiency
judgment. | d. | Damages
adjudication. |
|
|
|
7.
|
A property is registered as Torrens property. In connection with the purchase,
the
a. | buyer should have an attorney review the abstract and render an opinion about prior
transfers. | c. | buyer should check for adverse
prescription. | b. | Torrens certificate
is proof of ownership. | d. | execution of the deed automatically transfers title. |
|
|
|
8.
|
A buyer purchased a property and accepted a quitclaim deed. The buyer can be
certain that
a. | the seller had a good title to the property. | c. | the seller will convey
after-acquired title. | b. | whatever the seller's interest may be, it
is being transferred. | d. | there
are no liens against the property that adversely affect marketable
title. |
|
|
|
9.
|
The broker and seller entered into an open listing agreement. Under such an
agreement, the seller
a. | does not have to pay the broker a
commission if the broker finds a
buyer. | c. | must pay a commission if either the seller or brokerage finds a
buyer. | b. | does not have to pay the broker a
commission if the seller finds a
buyer. | d. | must pay a
commission if anyone other
than the seller finds a buyer. |
|
|
|
10.
|
When a buyer signs a purchase agreement and the seller accepts, the buyer
acquires an
interest in the real estate. The buyer's interest is known as
a. | equitable title. | c. | statutory rights. | b. | equitable justice. | d. | servient
tenement. |
|
|
|
11.
|
A property has been sold. All of the following documents could be used to convey
title
EXCEPT
a. | warranty deed. | c. | trustee's deed. | b. | quitclaim deed. | d. | deed in lieu of
foreclosure. |
|
|
|
12.
|
The ABC Real Estate Company listed a property at $4.50 per square foot. The
land
dimensions were 50 feet by 137 feet. If the commission rate was set at 7.25 percent,
how
much did the seller pay the ABC Real Estate Company?
a. | $1,005.50 | c. | $22,348.12 | b. | $2,234.81 | d. | $10,055.00 |
|
|
|
13.
|
To purchase a home, a buyer obtained a $142,500 mortgage at 7.75 percent
interest
for 25 years. The mortgage was closed on June 15, with the first P&I payment due
in
arrears on August 1. At the closing, which of the following occurred?
a. | The buyer paid a $490.83 interest adjustment. | c. | The seller paid a
$920.31interest adjustment. | b. | The seller paid a $490.83 interest
adjustment. | d. | The buyer paid
a $920.31 interest adjustment. |
|
|
|
14.
|
To be valid, a deed must be signed by which of the following?
a. | Grantors | c. | Grantees | b. | Attorney at law | d. | Broker |
|
|
|
15.
|
To have a valid conveyance, all of the following are necessary EXCEPT
a. | legal capacity to execute. | c. | designation of any
limitations. | b. | recital of consideration. | d. | proof of heirship. |
|
|
|
16.
|
Which of the following scenarios are exempt from the federal Fair Housing
Act?
a. | Rental of rooms in an owner-occupied, one-to-four-family dwelling | c. | Property for sale
above $250,000 | b. | Alteration of the terms or conditions of a mortgage | d. | Property sold on an installment sales
contract |
|
|
|
17.
|
A brokerage manages a number of income-producing properties for a large
landholder in the city. The management agreement stipulates that the property manager shall be
responsible for finding new tenants and maintaining the properties. The property management fee the
brokerage may charge for its services is MOST LIKELY a percentage of the
a. | net income earned from the properties. | c. | total expenses incurred in
maintaining the properties. | b. | gross income earned from the
properties. | d. | ROI. |
|
|
|
18.
|
On a settlement statement, the commission owed to the listing broker is a
a. | debit to the sellers. | c. | credit to the sellers and a debit to the
buyers. | b. | debit to the buyers. | d. | credit to the buyers. |
|
|
|
19.
|
The closing for a rental property is to take place on September 15. On September
1, the owners collected the rent for the month of September from the tenant. Under the terms of the
purchase agreement, the buyers are entitled to any rent received covering the period subsequent to
the closing. At the closing, the prepaid rent will appear as a
a. | credit to the sellers and a debit to the buyers. | c. | credit to the
buyers. | b. | debit to the sellers and a credit to the buyers. | d. | debit to the
sellers. |
|
|
|
20.
|
Under the provisions of the Real Estate Settlement Procedures Act, certain
disclosures are required from:
a. | the seller in a residential real estate transaction. | c. | the lender in a residential real
estate transaction. | b. | the buyer in a residential real estate
transaction. | d. | the agent in a
residential real estate transaction. |
|
|
|
21.
|
Which of the following real estate documents will LEAST LIKELY be recorded at
the county recorder's office?
a. | Contract for deed | c. | Option agreement | b. | Long-term lease | d. | Purchase
agreement |
|
|
|
22.
|
Under most state laws, an advertisement for a listed property should include
the
a. | broker or brokerage name. | c. | agent's
name. | b. | seller's name. | d. | sale price. |
|
|
|
23.
|
A buyer's offer was accepted. MOST state laws would require that the
buyers
a. | will make a loan application. | c. | have a down
payment. | b. | have a copy of the sales contract. | d. | have inspected the
home. |
|
|
|
24.
|
The sellers have executed three open listings with three brokers around town.
All three brokers would like to place "For Sale" signs on the seller's property. Under
these circumstances
a. | a broker does not have to obtain the seller's permission before placing a sign
on the property. | c. | upon obtaining the seller's written consent, all can place signs on the
property.t | b. | only one For Sale sign may be placed on the property at one time. | d. | the first listing broker must consent to all
signs. |
|
|
|
25.
|
For a parcel of real estate to have value, it must have
a. | utility. | c. | transferability. | b. | scarcity. | d. | all of these. |
|
|
|
26.
|
Under the income approach to estimating the value of real estate, the
capitalization rate is:
a. | the rate at which the property increases in value. | c. | the rate of capital required to
keep a property operating by its most effective method. | b. | the rate of return
the property earns on an investment. | d. | the maximum rate of return allowed by law on an
Investment. |
|
|
|
27.
|
An appraiser makes adjustments to the selling prices of comparable properties.
The adjustments will reflect differences in
a. | location and amenities of the properties. | c. | expired
properties. | b. | gross rent multiplier of other properties. | d. | currently listed
properties. |
|
|
|
28.
|
The final step in the appraisal process is to
a. | make copies for the lender. | c. | adjust the subject
property.
| b. | create an invoice. | d. | reconcile the differences. |
|
|
|
29.
|
If a landlord breaches the lease, and because the unit is uninhabitable, what
action can the tenant take?
a. | Pursue a suit for possession | c. | Resort to a tenancy at
sufferance | b. | Consider the action a constructive eviction | d. | Pursue a covenant for quiet
possession |
|
|
|
30.
|
How can tenancy at sufferance be created?
a. | By failure to surrender possession | c. | By bringing an unlawful detainer
action | b. | By payment of rent | d. | By giving 30 days' written notice |
|
|
|
31.
|
If the title will pass to a third party upon the death of the life tenant, what
was the third party's interest in the property?
a. | Remainder interest | c. | Conditional interest | b. | Reversionary interest | d. | Redemption
interest |
|
|
|
32.
|
What is the interest of the grantee when real estate is conveyed only for as
long as specified conditions are met?
a. | Defeasible fee | c. | Restrictive fee | b. | Indefeasible fee | d. | Base fee |
|
|
|
33.
|
FHA insurance regulations state that the
a. | FHA must set the interest rate. | c. | mortgage insurance premium is paid
by the seller. | b. | buyer and/or seller may pay the points. | d. | closing costs are paid by the
buyer. |
|
|
|
34.
|
The United States uses both lien theory and title theory in mortgage law. In
then title theory states;
a. | the mortgagor has title to the property. | c. | the mortgagor and mortgagee jointly
hold the title. | b. | the mortgagee has title to the property. | d. | the buyer holds title in
trust. |
|
|
|
35.
|
Brokers, who conspire to set commission rates or enter into an agreement to
allocate a specific market are subject to which of the following?
a. | Sherman Antitrust Act | c. | Blue-sky laws | b. | Law of agency | d. | Securities Act of
1933 |
|
|
|
36.
|
Which of the following affects the control and regulation of land use?
a. | Public and private land-use controls | c. | Deed
restrictions | b. | Zoning ordinances | d. | All of these |
|
|
|
37.
|
Under a percentage lease, the lessee pays $400 per month plus 2.75 percent of
gross sales. Last month's gross sales were $198,210. How much is the rent?
a. | $5,450.78 | c. | $5,540.78 | b. | $5,850.78 | d. | $5,580.78 |
|
|
|
38.
|
What type of Lease requires the lessee to pay taxes, insurance, and
repairs?
a. | Net Lease | c. | Variable Lease | b. | Percentage Lease | d. | Gross Lease |
|
|
|
39.
|
After signing a lease, the lessor obtains which of the following interests in
real estate?
a. | Freehold estate | c. | Leasehold interest | b. | Leased fee interest | d. | Remainderman
interest |
|
|
|
40.
|
The market value of a property is $72,000, and it is assessed at 67 percent of
value. What
are the monthly taxes if the tax rate for the area is $6.50 per $100 of the assessed
value?
a. | $3,157.38 | c. | $261.30 | b. | $4,857.50 | d. | $485.75 |
|
|
|
41.
|
A $50,000 mortgage on a property represents an 80 percent loan-to-value ratio.
The real estate was assessed at 82 percent, the taxes were based on $4 per $100 of assessed value,
and the owners paid $2,050 annual property taxes. What was the sale price of the home?
a. | $62,500 | c. | $41,000 | b. | $51,250 | d. | $50,000 |
|
|
|
42.
|
Which of the following is a method of foreclosure that does not require civil
action?
a. | Judicial foreclosure | c. | Sheriff's foreclosure | b. | Strict
foreclosure | d. | Nonjudicial
foreclosure |
|
|
|
43.
|
A home sells for $65,900. The mortgage requires a 40 percent down payment, a 1
percent origination fee, and $450 in closing costs. How much does the buyer need to close?
a. | $26,623.60 | c. | $27,173.59 | b. | $27,205.40 | d. | $26,360.00 |
|
|
|
44.
|
A building is 200 feet wide, 300 feet long, and five stories high (each story 12
feet in height). How much does the building cost at $0.79 per cubic foot?
a. | $237,000 | c. | $568,880 | b. | $275,982 | d. | $2,844,000 |
|
|
|
45.
|
Prorated items that represent prepaid expenses of the seller should be shown on
the settlement statement as a
a. | credit to the seller and debit to the buyer. | c. | credit to the
buyer. | b. | debit to the seller and credit to the buyer. | d. | debit to the
seller. |
|
|
|
46.
|
A mortgagor can get direct financing from all of the following EXCEPT
a. | mortgage banking companies. | c. | commercial
banks. | b. | savings and loan associations. | d. | Ginnie Mae. |
|
|
|
47.
|
After the statute of limitations has run out, a contract that has been breached
is which of the following?
a. | Unenforceable | c. | Terminated | b. | Rescinded | d. | Discharged |
|
|
|
48.
|
In the event the parties to a contract wish to delete a provision in the printed
agreement form, they should
a. | execute a supplement to the purchase agreement. | c. | have their signatures
notarized. | b. | cross out the provisions to be deleted. | d. | arrive at an oral agreement to make the
changes. |
|
|
|
49.
|
A licensed real estate broker
a. | becomes an agent of the vendee upon obtaining a valid listing. | c. | becomes an agent of
the vendor when a buyer is found. | b. | can disclose any truthful information received
from the principal. | d. | must
disclose all material facts to the principal. |
|
|
|
50.
|
How many acres are in the S ½ of the NW ¼ of the SE ¼ of a
section?
|
|
|
51.
|
An owner listed his home with the XYZ Brokerage Company under an open listing
agreement. After the sale of the property, a dispute arose between XYZ Brokerage and Sunday
Brokerage. Each brokerage firm claimed to be entitled to a commission. In this situation, the
commission should be paid to the broker who
a. | listed the property. | c. | obtained the first offer. | b. | advertised the
property. | d. | was the procuring
cause of the sale. |
|
|
|
52.
|
A broker has an exclusive-right-to-sell listing. When the seller is out of town
on business, a buyer makes an offer contingent upon
the seller taking a purchase money mortgage of $10,000. The buyer must have a commitment from the
seller prior to the seller's scheduled return to the city. Under these circumstances,
the a. | broker may enter into a binding agreement on behalf of the seller. | c. | buyer is deemed to
have an option until the seller returns. | b. | broker may collect a commission because he
found a ready, willing, and able buyer. | d. | broker must obtain the signature of both parties in order to earn a
commission. |
|
|
|
53.
|
Two people are co-owners of a parcel of real estate. Each owns an undivided
interest.
One person owns two-thirds and the other owns one-third. This form of ownership
is
a. | tenancy in common. | c. | tenancy by the entirety. | b. | joint
tenancy. | d. | community property
ownership. |
|
|
|
54.
|
A buyer made an offer on a property with a contingency clause entitling the
buyer to a refund of his earnest money deposit if the seller's accepted and the signed contract
was not delivered to him within two days of the contract date. The owner signed the contract the next
day. On the third day, the broker attempted to deliver the signed copy to the buyer but learned that
he had been killed in an accident. In these circumstances
a. | the estate of the deceased buyer is liable for completion of the
contract. | c. | death cancels all real estate contracts. | b. | the contract, by its
terms, is void. | d. | the broker
can collect a commission from the seller. |
|
|
|
55.
|
An investor leases a property to a tenant under an oral one-year lease. If the
tenant defaults, the investor may
a. | not bring court action because of parol evidence rule. | c. | bring a court action because
one-year leases need not to be in writing to be enforced. | b. | not bring court
action because of the statute of frauds. | d. | bring a court action because the statute of limitations does not apply to oral
leases. |
|
|
|
56.
|
An acceleration clause will be found in which of the following documents?
a. | Listings | c. | Mortgages | b. | Sales contracts | d. | Leases |
|
|
|
57.
|
The federal Fair Housing Act of 1968 makes it illegal to discriminate because
of
a. | age. | c. | public assistance. | b. | marital status. | d. | religion. |
|
|
|
58.
|
A person owns a large parcel of undeveloped property, in severally, near a large
urban area.
A developer, who believes the property could be developed for commercial purposes,
buys
the property. At the closing, the developer insists that the spouse sign the deed. The
purpose of obtaining the signature of the spouse is to
a. | terminate any rights the spouse may have in the property. | c. | provide the
developer with a sale-leaseback agreement. | b. | attest that the deed is accurate and
correct. | d. | subordinate the
spouse's interest to the developer. |
|
|
|
59.
|
A broker enters into a listing agreement where the seller will receive $120,000
from the sale of a vacant lot. The broker is to receive any sale proceeds over and above that amount.
The broker and seller entered into a(an)
a. | gross listing. | c. | exclusive agency listing. | b. | exclusive
right-to-sell listing. | d. | net
listing. |
|
|
|
60.
|
The annual net income from a commercial property is $22,000, and the
capitalization rate is 8 percent. What is the value of the property using the income approach?
a. | $275,000 | c. | $200,000 | b. | $176,000 | d. | $183,000 |
|
|
|
61.
|
A storage tank that measures 12' x 9' x 8'was designed to store
natural gas. The cost of natural gas is $1.82 per cubic foot. What will it cost to fill the tank to
one-half its capacity?
a. | $864.00 | c. | $786.24 | b. | $1,572.48 | d. | $684.58 |
|
|
|
62.
|
A real estate sales contract becomes valid when it has been signed by which of
the following?
a. | Buyer | c. | Seller | b. | Buyer and seller | d. | Broker and
seller |
|
|
|
63.
|
ABC Investment Company enters into a five-year lease agreement with XYZ Retail
store. Two years later, XYZ Retail wants to sell his business to JFK Incorporated. ABC Investment
Company releases XYZ Retail of liability and signs a new contract with JFK Inc. The term that BEST
describes this scenario is
a. | assignment. | c. | secondary agreement. | b. | novation. | d. | sublease. |
|
|
|
64.
|
All of the following situations are in violation of the federal Fair Housing Act
of 1968 EXCEPT
a. | the refusal of the property manager to rent an apartment to a Catholic couple who are
otherwise qualified. | c. | the intentional neglect of a broker to show a black family any properties in
all-white neighborhoods. | b. | the policy of a loan company not to grant home
improvement loans to individuals in changing neighborhoods. | d. | the insistence of an owner of a single family
home to rent her spare bedroom only to females. |
|
|
|
65.
|
A house sold for $140,000 and the buyer obtained an FHA mortgage in the amount
of $136,500. How much money would the buyer pay if he was charged four points?
a. | $5,420 | c. | $5,600 | b. | $5,460 | d. | $5,640 |
|
|
|
66.
|
What is a tenancy at will?
a. | Tenancy with the consent of the landlord | c. | Tenancy created by the death of the
owner | b. | Tenancy that expires on a specific date | d. | Tenancy created by the
testator |
|
|
|
67.
|
Which of the following BEST describes a datum?
a. | Undersized or fractional section | c. | Primary
township | b. | Imaginary line from which heights are measured | d. | Imaginary line that measures
longitude |
|
|
|
68.
|
A licensed salesperson is authorized by law to
a. | sign a closing statement. | c. | advertise listed property under the
sales person's own name. | b. | collect a commission directly from a principal
for performing assigned duties. | d. | act under the supervision of a real estate broker. |
|
|
|
69.
|
Which of the following BEST describes steering?
a. | Leading prospective homeowners to or away from certain areas | c. | A requirement to
join MLS | b. | Refusing to make loans to persons in certain areas | d. | Practice of setting
commissions |
|
|
|
70.
|
Other than property taxes and special assessments, lien priority is established
by
a. | county laws. | c. | the date on which the debt was incurred. | b. | the recording date
at the courthouse. | d. | the date
the broker listed the property. |
|
|
|
71.
|
An agreement between an owner and the property management agreement would MOST
LIKELY have a(an)
a. | statement of then owner's purpose. | c. | joint and several
liabilities. | b. | Estoppel certificate. | d. | waiver of subrogation. |
|
|
|
72.
|
Three days before the closing, a buyer notified his agent that he would not buy.
What
legal action can the seller take to enforce the terms of the contract?
a. | File an adverse possession claim | c. | Serve a notice of
redemption | b. | File a lis pendens notice | d. | Sue for specific performance |
|
|
|
73.
|
The annual tax bill of $743.25 is due on December 31 of each year and is paid in
arrears. The property was sold and closed on August 12. Which of the following is TRUE?
(Use a
360-day year.)
a. | $284.91 DS, CB | c. | $284.91 CB, DS | b. | $458.32 DS, CB | d. | $458.32 CS, DB |
|
|
|
74.
|
The Federal Reserve regulates the supply of money in the market by setting
the
a. | reserve requirements and discount rates. | c. | number of loans that FHA can
approve each year. | b. | interest rate that local lenders can
charge. | d. | discount points
that sellers pay on VA guaranteed loans. |
|
|
|
75.
|
In estimating the value of commercial property, what is the appraiser's
MOST important consideration?
a. | Reproduction cost | c. | Gross rent multiplier | b. | Net
income | d. | Gross
income |
|
|
|
76.
|
All of the following are examples of a specific lien EXCEPT
a. | real estate taxes. | c. | a mortgage. | b. | an IRS lien. | d. | a mechanic's
lien. |
|
|
|
77.
|
Which of the following types of ownership are characterized by the right of
survivorship?
a. | Joint tenancy and tenancy by the entireties | c. | Joint tenancy and tenancy in
common | b. | Joint tenancy and severally | d. | Joint tenancy and condominium tenancy |
|
|
|
78.
|
The type of ownership that blends severally and tenancy in common ownership is
a
a. | periodic tenancy. | c. | cooperative. | b. | condominium. | d. | life estate. |
|
|
|
79.
|
K grants a life estate to L based on the life of M. L dies before M. What is the
status of the life estate?
a. | It belongs to K in fee simple absolute ownership. | c. | It belongs to M and the heirs of
M. | b. | It belongs to K's Remainderman. | d. | It belongs to L's heirs until the death of
M. |
|
|
|
80.
|
A subdivision has a deed restriction that does not allow the building of tree
houses. An architect moves into the subdivision and builds a tree house in the back yard. How many
neighbors will it take to enforce the deed restriction, and what action should be taken?
a. | Seventy-five percent of the neighbors must sign a petition that will be given to the
local zoning board for enforcement. | c. | Only one neighbor needs to take action through the court
system. | b. | Only one neighbor needs to take action through the local zoning
board. | d. | Seventy-five percent
of the neighbors must take action through private court action. |
|
|
|
81.
|
A developer discovers that a proposed swimming pool in a condominium community
meets all local zoning requirements except for the side yard line on one side of the clubhouse. The
developer should
a. | take no action because it is only on one side of the clubhouse. | c. | file for a
nonconforming use with the local zoning board. | b. | file for a variance with the local zoning
board. | d. | continue with the
construction and later file for an adverse possession claim to the
property. |
|
|
|
82.
|
A lot is valued at $75,000. The two-story house measures 30' x 50' and
is valued at $100 a square foot. If the owner is willing to pay a 6 percent commission, the agent
should list the property for at LEAST what amount?
a. | $375,000 | c. | $397,500 | b. | $389,350 | d. | $398,936 |
|
|
|
83.
|
Which of the following situations would terminate a listing agreement without
legal liability?
a. | Death of the salesperson | c. | Death of the
seller | b. | Destruction of the broker's office | d. | Bankruptcy of the
agent |
|
|
|
84.
|
An exclusive-right-to-sell listing is usually an
a. | executory bilateral contract. | c. | executed unilateral
contract. | b. | exculpatory bilateral contract. | d. | executed implied
contract. |
|
|
|
85.
|
An agent listed a property for $89,000 and five days later received an offer of
$89,000. There were no contingencies. Which of the following is TRUE?
a. | The seller must accept the offer because it is for the listed price. | c. | The seller does not
have to sell and he does not have to pay the broker's commission. | b. | The buyer cannot
withdraw the offer because it is for the listed price. | d. | The buyer may withdraw the offer prior to its
acceptance. |
|
|
|
86.
|
A contract gives the buyer the right to purchase a property within a specified
timeframe. The purchase price and other specific terms have been agreed upon by both parties. The
buyer gave the seller a $10,000 check with the contract, which will not be returned if the buyer does
not purchase. The seller gave the buyer a(n)
a. | sales contract. | c. | offer. | b. | lease. | d. | option. |
|
|
|
87.
|
Which of the following statements is NOT true?
a. | A land contract is also known as an installment contract. | c. | An equitable title
is transferred when the deed is signed by the grantor at the closing table. | b. | If time is of the
essence is in a contract, the duties are expected to be performed within a reasonable
time. | d. | Liquidated damages
are agreed to in advance by the parties. |
|
|
|
88.
|
Which of the following is NOT false?
a. | An earnest money deposit is necessary to create a legally binding
contract. | c. | If time is of the essence is found in a contract, then the contract must be performed
within the time limit specified. | b. | The death of the salesperson will affect the
status of listing contracts. | d. | A contract entered into under duress, undue influence, or misrepresentation is
void. |
|
|
|
89.
|
Because the cost of clean-up and removal of hazardous waste can be greater than
the value of the property, an agent is expected to have
a. | technical expertise in possible hazardous substances found within
buildings. | c. | taken a class on how to identify asbestos, because it is present in so many
buildings. | b. | technical expertise in the area of asbestos, which is present in so many
buildings. | d. | a basic
knowledge of hazardous substances and be aware of environmental issues in a real estate
transaction. |
|
|
|
90.
|
The primary objectives of a property manager are to
a. | generate the highest net operating income of the property while maintaining and
preserving the owner's investment | c. | negotiate contracts with service providers that give the manager
the most advantageous kickbacks. | b. | secure tenants by offering the lowest possible
rents that the budget allows. | d. | cut expenses in any way necessary to generate a profit for the
owner. |
|
|
|
91.
|
A lease with a definite beginning, a definite ending, and where no notice is
required to terminate the lease is a(n)
a. | estate for years. | c. | estate at will. | b. | periodic tenancy. | d. | estate at
sufferance. |
|
|
|
92.
|
A tenant entered into a three-year lease that was an estate for years agreement.
On termination of the lease agreement, the tenant remained in possession of the property. Which of
the following is TRUE?
a. | If the landlord accepted payment for another month, the original lease would
automatically renew for another two years. | c. | The tenant had the right to remain
in the property because the landlord did not give proper notice. | b. | The landlord could
evict the tenant or treat the holdover tenant as a periodic tenancy. | d. | The tenant had the right to remain in the
property because the landlord does not have it rented to anyone
anyway. |
|
|
|
93.
|
Which of the following is NOT a requirement for a valid lease?
a. | Offer and acceptance | c. | Capacity to contract | b. | Description of the leased
premises | d. | An option
agreement |
|
|
|
94.
|
A tenant pays $700 per month in fixed rent, plus 4 percent of all gross sales of
more than $350,000. How much were the gross sales if the total rent paid for the year was
$14,975?
a. | $414,375 | c. | $356,375 | b. | $164,375 | d. | $514,375 |
|
|
|
95.
|
A homeowner purchased a first principal place of residence for $69,000. In the
next five years, she made $10,000 worth of improvements. The property sold for $109,000 and a 6
percent commission was paid. Which of the following is TRUE regarding the capital gains?
a. | The adjusted basis is $102,460. | c. | The capital gain is
$33,460. | b. | The capital gain is $23,460. | d. | The adjusted basis is
$89,000. |
|
|
|
96.
|
Which of the following would not be associated with mortgage fraud?
a. | Rescue scams | c. | Silent second | b. | Straw buyers | d. | Home equity
loan |
|
|
|
97.
|
What is the priority of the following liens?
a. | IRS liens, then property taxes | c. | First mortgage, then property
taxes | b. | IRS liens, then special assessments | d. | Property taxes, then first
mortgage |
|
|
|
98.
|
A borrower purchased mortgagee's title insurance on a property. After the
final payment was made on the mortgage, a title defect was found. The borrower may have recourse
through the
a. | previous owner if a general warranty deed was transferred at the
closing. | c. | title insurance company because a title policy was secured when the property was
purchased. | b. | previous owner if a quitclaim deed was transferred at the
closing. | d. | title insurance
company because a mortgagee's title insurance was secured when the property was
purchased. |
|
|
|
99.
|
What is the major difference between constructive notice and actual
notice?
a. | Constructive notice is direct knowledge, while actual notice is legal
notice. | c. | Constructive notice is recorded by an attorney, while actual notice can be recorded
by anyone. | b. | Constructive notice is given annually, while actual notice is given
monthly. | d. | Constructive
notice is notice that the law presumes we have, while actual notice is what a party actually
knows. |
|
|
|
100.
|
Which of the following is NOT true regarding RESPA?
a. | RESPA requirements apply when a residential purchase is financed by a federally
related mortgage loan. | c. | RESPA requires that a good-faith estimate of settlement costs be
provided to the buyer within two days of loan application. | b. | RESPA was enacted to
eliminate kickbacks and other referral fees that increase the cost of settlement. | d. | The settlement statement must be made available
for inspection by the borrower at or before the settlement. |
|
|
|
101.
|
The owners of a cooperative will
a. | become stockholders in a corporation that owns the building where they will
reside. | c. | take out a mortgage to purchase the building where they will
reside. | b. | receive a deed and title to the building where they will reside. | d. | receive a 20-year lease for the unit in which
they will reside. |
|
|
|
102.
|
Which of the following is NOT an example of a legal description?
a. | Geodetic survey | c. | Metes and bounds | b. | Lot and block | d. | Torrens system |
|
|
|
103.
|
A buyer is purchasing a single-family home. The appraiser will MOST LIKELY use
which
method to appraise the property?
a. | Income | c. | Cost | b. | GIM | d. | Market data |
|
|
|
104.
|
In appraising a residential property, the appraiser would make a
a. | positive adjustment to the subject property if the subject property had an amenity
the comparable did not. | c. | positive adjustment to the comparable property if the subject
property had an amenity the comparable did not. | b. | negative adjustment to the subject property if
the subject property had an amenity the comparable did not. | d. | negative adjustment to the comparable property
if the comparable property did not have an amenity the subject property
had. |
|
|
|
105.
|
Which of the following terms is associated with real estate property
taxes?
a. | Caveat emptor | c. | Annuit coeptis | b. | Caveat venditor | d. | Ad valorem |
|
|
|
106.
|
The closing date was scheduled for October 31, and the seller made her mortgage
payment on October 1. The loan balance after the October 1 payment was $125,000, and the interest
rate was 8 percent. If there were no prepayment penalties, the loan payoff would be
a. | $135,000.00. | c. | $125,833.33. | b. | $8,333.33. | d. | $124,166.67. |
|
|
|
107.
|
The sellers accepted an offer of $510,000 for their property. On the closing
statement, their
mortgage balance was $200,000, the commission paid was 6 percent, and they had
$5,000
in other closing costs. The net to the sellers is
a. | $30,600. | c. | $310,000. | b. | $274,400. | d. | $479,400. |
|
|
|
108.
|
On April 1, a borrower made her monthly payment principal and interest payment
of
$212.47, and her loan balance was $6,945.23. On May 1, she made another principal
and
interest payment and paid off the loan. If the interest rate was 10 percent, what was
her
payoff?
a. | $6,790.64 | c. | $6,250.71 | b. | $6,887.35 | d. | $6,125.99 |
|
|
|
109.
|
A lender charged $4,000 in discount points on a $100,000 loan. How many discount
points were charged?
|
|
|
110.
|
A borrower negotiated a 90 percent loan and the lender is charging two points.
If his offer
of $190,000 is accepted, what is the minimum cash he will need to close?
a. | $22,420 | c. | $25,239 | b. | $19,000 | d. | $22,240 |
|